### the efficient functioning of this directive will need to be reviewed , as will progress on the establishment of an internal market with a high level of consumer protection for credit agreements relating to residential immovable property . the commission should therefore review the directive five years after the deadline for its transposition . the review should include , among other things , an analysis of the evolution of the market for non - credit institutions providing credit agreements relating to residential immovable property and an assessment on the need for further measures , including a passport for such non - credit institutions , an examination of the necessity to introduce rights and obligations with regard to the post - contractual stage of credit agreements , and an assessment of whether an extension of the scope to include lending to small companies is warranted . ### the efficient functioning of this directive will need to be reviewed , as will progress on the establishment of an internal market with a high level of consumer protection for credit agreements relating to residential immovable property . the commission should therefore review the directive five years after the deadline for its transposition . the review should include , among other things , an analysis of the evolution of the market for non - credit institutions providing credit agreements relating to residential immovable property and an assessment on the need for further measures , including a passport for such non - credit institutions , an examination of the necessity to introduce rights and obligations with regard to the post - contractual stage of credit agreements , and an assessment of whether an extension of the scope to include lending to small companies is warranted . in addition , the commission should verify the necessity of measures taken by the member states to support the education of consumers about responsible borrowing and debt management , in particular in relation to credit agreements .


### member states shall designate the competent authorities empowered to ensure implementation of this directive and shall ensure that they are granted all the powers necessary for the performance of their duties . ### member states shall designate the competent authorities empowered to ensure implementation of this directive and enactment of all its provisions in the interest of the market and all market participants . they shall ensure that they are granted sufficient resources and all the investigating and sanctioning powers necessary for the performance of their duties . member states shall ensure that the competent authorities can access all premises , request the notification of mortgage contracts , esis , books , invoices and all other professional documents and obtain or take copies of these by any means and on all media and collect information and proof by means of summons or in situ . in the case of activity in a host member state , supervision of the ongoing activities of creditors and credit intermediaries shall be performed by the competent authority of the host member state . the competent authority of the home member state shall be required to provide the competent authority of the host member state with all relevant information . competent authorities of the host member state shall have the power to intervene if credit intermediaries fail to comply with their duties and responsibilities defined in this directive . in addition , competent authorities of the host member state shall be granted the right to refuse authorisations .


### member states shall ensure that the creditor and , where applicable , the credit intermediary , without undue delay after the consumer has given the necessary information on his needs , financial situation and preferences in accordance with article 14 , provides the consumer with the personalised information needed to compare the credits available on the market , assess their implications and take an informed decision on whether to conclude a credit agreement . such information , on paper or on another durable medium , shall be provided by means of the european standardised information sheet , as set out in annex ii . ### the creditor and , where applicable , the credit intermediary , shall on the basis of credit terms and conditions offered by the creditor and the information received from the consumer on his needs , financial situation and preferences , provide the consumer with the personalised information needed to compare the credits available on the market , assess their implications and take an informed decision on whether to conclude a credit agreement . this information shall be given in good time before the consumer is bound by any credit agreement or offer . such information , on paper or on another durable medium , shall be provided by means of the european standardised information sheet , as set out in annex ii .


### member states shall ensure that these bodies actively cooperate in the resolution of cross - border disputes . ### member states shall encourage these bodies to cooperate so that cross - border disputes concerning credit agreements can also be resolved .


### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes a personalised recommendation on suitable credit agreements for that consumer ' s needs and financial situation and when it is being provided and when it is not . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , and on a close inspection of the consumer ' s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer ' s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . ### where the consumer is provided with advice as a service separate from the credit , he should be made clearly aware of this fact . a charge should only be made if the consumer is clearly informed about the charge and the method of its calculation . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances . that advice should be based on a fair and sufficiently wide - ranging analysis of the products available , and on a close inspection of the consumer’s financial situation , preferences and objectives , and should be based on up - to - date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan . if the advice relates only to the adviser’s own range of products , this should be drawn to the consumer’s attention . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice .


### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event , if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer . ### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event , if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a legitimate interest on the part of the consumer . such legitimate interest may for example occur in case of divorce or unemployment .


### without prejudice to procedures for the withdrawal of authorisation or to the right of member states to impose criminal sanctions , member states shall ensure , in conformity with their national law , that appropriate administrative measures can be taken or administrative sanctions imposed against persons responsible where the provisions adopted in the implementation of this directive have not been complied with . member states shall ensure that these measures are effective , proportionate and dissuasive . ### member states shall lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to this directive and shall take all measures necessary to ensure that they are implemented . the penalties provided for shall be effective , proportionate and dissuasive .


### the natural persons within the management of creditors and credit intermediaries who are responsible for or have a role in the intermediation , advice or approval of the credit agreement , possess appropriate knowledge and competence in relation to credit agreements . ### the natural persons within the management of credit intermediaries who are responsible for the intermediation or advice regarding credit agreements possess appropriate knowledge and experience in relation to credit agreements . the management of credit intermediaries shall see after that the personnel has an appropriate level of knowledge and competence for their tasks .


### the purpose of this directive is to lay down a framework for certain aspects of the laws , regulations and administrative provisions of the member states concerning credit agreements relating to residential immovable property for consumers and concerning certain aspects of the prudential and supervisory requirements for credit intermediaries and creditors . ### the purpose of this directive is to lay down a framework for certain aspects of the laws , regulations and administrative provisions of the member states concerning credit agreements concluded with consumers relating to residential immovable property for consumers and concerning certain aspects of the prudential and supervisory requirements for credit intermediaries and creditors .


### without prejudice to procedures for the withdrawal of authorisation or to the right of member states to impose criminal sanctions , member states shall ensure , in conformity with their national law , that appropriate administrative measures can be taken or administrative sanctions imposed against persons responsible where the provisions adopted in the implementation of this directive have not been complied with . member states shall ensure that these measures are effective , proportionate and dissuasive . member states shall provide for penalties in particular cases where consumers knowingly provide incomplete or incorrect information in order to obtain a positive creditworthiness assessment where the complete and correct information would have resulted in a negative creditworthiness assessment , and are subsequently unable to fulfil the conditions of the agreement , and shall take all measures necessary to ensure that they are implemented . ### member states shall impose sanctions for infringements of the national provisions adopted on the basis of this directive and shall take all measures necessary to ensure that they are implemented . those sanctions shall be effective , proportionate and dissuasive .


### for the purpose of calculating the annual percentage rate of charge , the total cost of the credit to the consumer shall be determined excluding any charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement . where the opening of an account is obligatory in order to obtain the credit , the costs of maintaining such an account , the costs of using a means of payment for both payment transactions and drawdowns on that account , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer , unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer . ### for the purpose of calculating the annual percentage rate of charge , the total cost of the credit to the consumer shall be determined excluding charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement . the costs of maintaining an account recording both payment transactions and drawdowns , the costs of using a means of payment for both payment transactions and drawdowns , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer unless the opening of the account is optional and the costs relating to the account have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer .


### a consumer’s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer . ### a consumer’s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states should ensure that the creditor is entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer .


### in order to take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union . in particular , the commission should be empowered to adopt delegated acts to specify the details concerning the professional requirements applicable to creditors ' staff and credit intermediaries , the criteria used for assessing the creditworthiness of the consumer and in ensuring that credit products are not unsuitable for the consumer , and further harmonisation of key terms such as ‘ default’ the registration criteria and data processing conditions to be applied to credit databases . ### in order to ensure consistent harmonisation and take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the power to adopt acts in accordance with article 290 tfeu should be delegated to the commission , in particular to specify the details concerning the professional requirements applicable to creditors ' staff , credit intermediaries and valuers , further harmonisation of key terms such as ‘ default’ , the registration criteria and data processing conditions to be applied to credit databases , the characteristics of the emki and the procedure for assigning it , common principles for valuation standards and for defining independence , and the avoidance and management of conflicts of interest in valuation of residential immovable property . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing - up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council .


### member states shall ensure that appropriate and effective complaints and redress procedures are established for the out - of - court settlement of disputes concerning rights and obligations established under this directive between creditors and consumers and between credit intermediaries and consumers , using existing bodies where appropriate . member states shall further ensure that all creditors and credit intermediaries adhere to one or more such bodies implementing such complaint and redress procedures . ### member states shall ensure that adequate and effective out - of - court dispute resolution procedures for the settlement of consumer disputes concerning credit agreements are put in place , using existing bodies where appropriate .


### creditors and credit intermediaries frequently use advertisements , often featuring special terms and conditions , to attract consumers to a particular product . consumers should , therefore , be protected against unfair or misleading advertising practices and should be able to compare advertisements . specific provisions on the advertising of credit agreements relating to residential immovable property and a list of items to be included in advertisements and marketing materials directed at consumers are necessary to enable them to compare different offers . such provisions take into account the specificities of credit agreements relating to residential immovable property , for instance , the fact that if the loan repayments are not met , there is a risk of the consumer losing the property . member states should remain free to introduce or maintain disclosure requirements in their national laws regarding advertising which does not contain information on the cost of credit . ### creditors and credit intermediaries frequently use advertisements , often featuring special terms and conditions , to attract consumers to a particular product . consumers should , therefore , be protected against unfair or misleading advertising practices and should be able to compare advertisements . specific final provisions on the advertising of credit agreements relating to residential immovable property and credit agreements secured by mortgages , and a list of items to be included in advertisements and marketing materials directed at consumers where such advertising specifies interest rates and costs , are necessary to enable them to compare different offers . for the rest , member states should remain free to provide for information requirements in their national laws . such provisions should take into account the specificities of credit agreements relating to residential immovable property .


### credit intermediaries shall be duly authorised to carry out the activities set out in article 3 by a competent authority as defined in article 4 in their home member state . such authorisation shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the professional requirements laid down in article 20 . ### credit intermediaries shall be duly authorised or registered with a competent authority as defined in article 4 in their home member state to carry out the activities set out in article 3 . such authorisation or registration shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the requirements laid down in articles 6 and 21 . what is later on provided for regarding authorisation , applies to registration .


### consumers should provide all available relevant information on their financial situation and personal circumstances to the creditor or intermediary in order to facilitate the creditworthiness assessment . the consumer should not , however , be penalised where he is not in a position to provide certain information or assessments of the future evolution of his financial situation . in situations where consumers knowingly provide incomplete or inaccurate information , member states should be able to determine the appropriate penalties . ### consumers should provide all available relevant information on their financial situation and personal circumstances to enable the creditor or intermediary to carry out the creditworthiness assessment , since failure to do so will result in refusal of the credit they seek to obtain . in situations where consumers knowingly provide incomplete or inaccurate information , member states should be able to determine the appropriate penalties .


### in order to promote the establishment and functioning of the internal market and to ensure a high degree of protection for consumers throughout the union , it is necessary to ensure the comparability of information relating to annual percentage rates of charge throughout the union . the total cost of the credit to the consumer should comprise all the costs that the consumer has to pay in connection with the credit agreement , except for notarial costs . it should therefore include interest , commissions , taxes , fees for credit intermediaries and any other fees as well as the cost of insurance or other ancillary products , where these are obligatory in order to obtain the credit on the terms and conditions marketed . as the annual percentage rate of charge can at the pre - contractual stage be indicated only through an example , such an example should be representative . therefore , it should correspond , for instance , to the average duration and total amount of credit granted for the type of credit agreement under consideration . given the complexities of calculating an annual percentage rate of charge and in order to be able to accommodate product innovation , technical regulatory standards could be employed to amend or specify the method of calculation of the annual percentage rate of charge . the definition of and methodology used for calculating the annual percentage rate of charge in this directive should be the same as those in directive 2008 / 48 / ec in order to facilitate consumer understanding and comparison . those definitions and methodologies may , however , differ in the future should directive 2008 / 48 / ec be modified at a later date . member states are free to maintain or introduce prohibitions on unilateral changes to the borrowing rate by the creditor . ### in order to promote the establishment and functioning of the internal market and to ensure a high degree of protection for consumers throughout the union , it is necessary to ensure the comparability of information relating to annual percentage rates of charge throughout the union . the total cost of the credit to the consumer should comprise all the costs that the consumer has to pay in connection with the credit agreement , except for notarial costs and registration costs . it should therefore include interest , commissions , taxes , fees for credit intermediaries and any other fees as well as the cost of insurance , the valuation of the property or other ancillary products , where these are obligatory in order to obtain the credit on the terms and conditions marketed . as the annual percentage rate of charge can at the pre - contractual stage be indicated only through an example , such an example should be representative . therefore , it should correspond , for instance , to the average duration and total amount of credit granted for the type of credit agreement under consideration . given the complexities of calculating an annual percentage rate of charge and in order to be able to accommodate product innovation , technical regulatory standards could be employed to amend or specify the method of calculation of the annual percentage rate of charge . the definition of and methodology used for calculating the annual percentage rate of charge in this directive should be the same as those in directive 2008 / 48 / ec in order to facilitate consumer understanding and comparison . those definitions and methodologies may , however , differ in the future should directive 2008 / 48 / ec be modified at a later date . member states are free to maintain or introduce prohibitions on unilateral changes to the borrowing rate by the creditor .


### member states shall ensure that general information about credit agreements is made available by creditors or , where applicable , credit intermediaries at all times in a durable medium or in electronic form . ### member states shall ensure that accessible and comprehensible general information about credit agreements is made available by creditors and provided to the consumer , either by the creditor in the case of direct sales , or through the credit intermediary , at all times on paper or on another durable medium and / or , upon request , in electronic form .


### as consumers and enterprises are not in the same position , they do not need the same level of protection . while it is important to guarantee consumers’ rights by provisions that cannot be derogated from by contract , it is reasonable to let enterprises and organisations engage in other agreements . this directive should therefore apply to credit granted to consumers . member states should , however , have the possibility to extend the scope to natural or legal persons that are not consumers , notably micro - enterprises , as defined by commission recommendation 2003 / 361 / ec of 6 may 2003 concerning the definition of micro , small and medium - sized enterprises26 . ### as consumers and enterprises are not in the same position , they do not need the same level of protection . while it is important to guarantee consumers’ rights by provisions that cannot be derogated from by contract , it is reasonable to let enterprises and organisations engage in other agreements . this directive should therefore apply to credit granted to consumers .


### member states shall ensure that appropriate and effective complaints and redress procedures are established for the out - of - court settlement of disputes concerning rights and obligations established under this directive between creditors and consumers and between credit intermediaries and consumers , using existing bodies where appropriate . member states shall further ensure that all creditors and credit intermediaries adhere to one or more such bodies implementing such complaint and redress procedures . ### member states shall ensure that appropriate and effective out - of - court dispute resolution procedures are put in place for the settlement of consumer disputes concerning credit agreements , using existing bodies where appropriate .


### in the member states to which article 7 of regulation no 1080 / 2006 applies , a large number of marginalised communities live also outside urban areas . therefore , it is necessary to extend the eligibility of expenditures on housing interventions in favour of these communities living in rural areas . ### in several member states , a large number of marginalised communities live also outside urban areas . therefore , it is necessary to extend the eligibility of expenditures on housing interventions in favour of these communities living in rural areas .


### expenditure on housing , except for energy efficiency and the use of renewable energy as set out in paragraph 1a , shall be eligible only for those member states that acceded to the european union on or after 1 may 2004 , where the following conditions are met : expenditure shall be programmed within one of the following frameworks : the framework of an integrated urban development approach for areas experiencing or threatened by physical deterioration and social exclusion ; the framework of an integrated approach for marginalised communities . the allocation to housing expenditure shall be either a maximum of 3 % of the erdf allocation to the operational programmes concerned or 2 % of the total erdf allocation . ### expenditure on housing , except for energy efficiency and the use of renewable energy as set out in paragraph 1a , shall be eligible , where the following conditions are met : expenditure shall be programmed within one of the following frameworks : the framework of an integrated urban development approach for areas experiencing or threatened by physical deterioration and social exclusion ; the framework of an integrated approach for marginalised communities . expenditure under point shall be eligible only for those member states that acceded to the european union on or after 1 may 2004 ; expenditure under point shall be eligible for all eu member states . the allocation to housing expenditure shall be either a maximum of 3 % of the erdf allocation to the operational programmes concerned or 2 % of the total erdf allocation .


### with the view to enhance the economic and social cohesion of the community , it is necessary to support limited interventions for the renovation of existing buildings serving housing purposes in member states that acceded to the european union on or after 1 may 2004 . those interventions can take place under the conditions set out in article 7 of regulation no 1080 / 2006 of the european parliament and of the council of 5 july 2006 on the european regional development fund and repealing regulation no 1783 / 1999 . ### with the view to enhance the economic and social cohesion of the community , it is necessary to support limited interventions for the renovation of existing buildings serving housing purposes in member states . those interventions can take place under the conditions set out in article 7 of regulation no 1080 / 2006 of the european parliament and of the council of 5 july 2006 on the european regional development fund and repealing regulation no 1783 / 1999 .


### irrespective of whether these communities are located in urban or rural areas , due to the extremely poor quality of their housing conditions , expenditures on the replacement of the existing houses by newly constructed ones should also be eligible . ### irrespective of whether these communities are located in urban or rural areas , due to the extremely poor quality of their housing conditions , expenditures on the renovation and on the replacement of the existing houses , including by newly constructed ones , should also be eligible .


### for the purposes of point of the first subparagraph , interventions may include the replacement of existing housing by newly constructed houses . ### for the purposes of point of the first subparagraph , interventions may include the renovation and replacement of existing housing .


### promoting human rights and fundamental freedoms , the rule of law , principles of equality , establishing deep and sustainable democracy , promoting good governance and developing a thriving civil society including social partners ; ### promoting human rights , fundamental freedoms , women ' s rights and respect for the principles of the rule of law , equality between men and women and non - discrimination , consolidating good governance , establishing deep and sustainable democracy and developing a free , independent , thriving and proactive civil society ;


### under the european neighbourhood policy , the union offers neighbourhood countries a privileged relationship , building upon a mutual commitment to and promotion of the values of democracy and human rights , the rule of law , good governance and the principles of market economy and sustainable development . ### under the european neighbourhood policy , the union offers neighbourhood countries a privileged relationship , building upon a mutual commitment to and promotion of the values of democracy , equality between men and women , human rights , the rule of law , good governance and the principles of market economy and sustainable development .


### promoting human rights and fundamental freedoms , the rule of law , principles of equality , establishing deep and sustainable democracy , promoting good governance and developing a thriving civil society including social partners ; ### promoting human rights and fundamental freedoms , the rule of law , principles of equality , establishing deep and sustainable democracy , promoting good governance and developing a thriving civil society including close cooperation with social partners and women ' s organisations in order to identify areas for support and cooperation in regard to the implementation of gender policies in the partner countries ;


### gender equality and anti - discrimination should be a cross - cutting objective in all actions undertaken under this regulation . ### gender equality should be a cross - cutting objective in all actions undertaken under this regulation , reflected in the promotion of women’s rights and action to combat acts of violence against women and gender - based discrimination . to enhance the status of women in the partner countries , the european union and its member states should pay special attention to all measures that enhance and promote the role of women in political and economic decision - making positions and in civil society .


### when in possession of inside information , using that information to acquire or dispose of financial instruments to which that information relates for one ' s own account or for the account of a third party . this also includes using inside information to cancel or amend an order concerning a financial instrument to which that information relates where that order was placed before entering into possession of that inside information ; or ### where a person possesses inside information and uses that information by acquiring or disposing of , for his own account or for the account of a third party , either directly or indirectly , financial instruments to which that information relates . the use of inside information to cancel or amend an order concerning a financial instrument to which the information relates where the order was placed before the person concerned possessed the inside information , shall also be considered as insider dealing ;


### disclosing inside information to any other person , unless such disclosure is made in the lawful course of the exercise of duties resulting from employment or profession . ### where a person possesses inside information and discloses the inside information to any other person , except where the disclosure is made in the normal course of the exercise of duties resulting from an employment or profession .


### annex ix part a . feedstocks whose contribution towards the target referred to in article 3 shall be considered to be four times their energy content algae . biomass fraction of mixed municipal waste , but not separated household waste subject to recycling targets under article 11 of directive 2008 / 98 / ec of the european parliament and of the council of 19 november 2008 on waste and repealing certain directives . biomass fraction of industrial waste . straw . animal manure and sewage sludge . palm oil mill effluent and empty palm fruit bunches . tall oil pitch . crude glycerine . bagasse . grape marcs and wine lees . nut shells . husks . cobs bark , branches , leaves , saw dust and cutter shavings . part b . feedstocks whose contribution towards the target referred to in article 3 shall be considered to be twice their energy content used cooking oil . animal fats classified as category i and ii in accordance with ec / 1774 / 2002 laying down health rules concerning animal by - products not intended for human consumption . non - food cellulosic material . ligno - cellulosic material except saw logs and veneer logs . ### annex ix list of advanced biofuels the biofuel coming from the following feedstocks will be considered advanced biofuels algae . biomass fraction of mixed municipal waste , but not separated household waste subject to recycling targets under article 11 of directive 2008 / 98 / ec of the european parliament and of the council of 19 november 2008 on waste and repealing certain directives . biomass fraction of industrial waste . straw . animal manure and sewage sludge . palm oil mill effluent and empty palm fruit bunches . tall oil pitch . crude glycerine . bagasse . grape marcs and wine lees . nut shells . husks . cobs bark , branches , leaves , saw dust and cutter shavings . used cooking oil . animal fats classified as category i and ii in accordance with ec / 1774 / 2002 laying down health rules concerning animal by - products not intended for human consumption . non - food cellulosic material . ligno - cellulosic material except saw logs and veneer logs .


### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities , in part due to competition for public subsidies with established food crop based biofuel technologies . further incentives should be provided by increasing the weighting of advanced biofuels towards 10% target for transport set in directive 2009 / 28 / ec compared to conventional biofuels . in this context , only advanced biofuels with low estimated indirect land use change impacts and high overall greenhouse gas savings should be supported as part of the post 2020 renewable energy policy framework . ### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities . further incentives should be provided by increasing the weighting of advanced biofuels towards 10% target for transport set in directive 2009 / 28 / ec compared to conventional biofuels . establishing progressively more ambitious mandatory targets for advanced biofuels will send a clear signal of support for them at union level . in this context , advanced biofuels with estimated low indirect land use change impacts and high overall greenhouse gas savings should be especially supported as part of the post 2020 renewable energy policy framework .


### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing estimated indirect land use change emissions factors into the appropriate sustainability criteria to be applied from 1st january 2021 and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3d of directive 2009 / 28 / ec . ### the commission shall , before 31 december 2018 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids .


### annex ix part a . feedstocks whose contribution towards the target referred to in article 3 shall be considered to be four times their energy content algae . biomass fraction of mixed municipal waste , but not separated household waste subject to recycling targets under article 11 of directive 2008 / 98 / ec of the european parliament and of the council of 19 november 2008 on waste and repealing certain directives . biomass fraction of industrial waste . straw . animal manure and sewage sludge . palm oil mill effluent and empty palm fruit bunches . tall oil pitch . crude glycerine . bagasse . grape marcs and wine lees . nut shells . husks . cobs bark , branches , leaves , saw dust and cutter shavings . part b . feedstocks whose contribution towards the target referred to in article 3 shall be considered to be twice their energy content used cooking oil . animal fats classified as category i and ii in accordance with ec / 1774 / 2002 laying down health rules concerning animal by - products not intended for human consumption . non - food cellulosic material . ligno - cellulosic material except saw logs and veneer logs . ### annex ix list of advanced biofuels the biofuel coming from the following feedstocks will be considered advanced biofuels algae . biomass fraction of mixed municipal waste , but not separated household waste subject to recycling targets under article 11 of directive 2008 / 98 / ec of the european parliament and of the council of 19 november 2008 on waste and repealing certain directives . biomass fraction of industrial waste . straw . animal manure and sewage sludge . palm oil mill effluent , spent bleaching earth oil , sludge palm oil and empty palm fruit bunches . tall oil pitch . crude glycerine . bagasse . grape marcs and wine lees . nut shells . husks . cobs bark , branches , thinnings , leaves , saw dust and cutter shavings . used cooking oil . animal fats classified as category i , ii and iii in accordance with ec / 1774 / 2002 laying down health rules concerning animal by - products not intended for human consumption . non - food cellulosic material . ligno - cellulosic material except saw logs and veneer logs . triglycerides , free fatty acids and fatty distillates and off - specification oils from oleochemical , biodiesel , vegetable oil refining , food processing and animal fat rendering industries . animal fats not intended for human consumption . technical corn oil . waste fat from fish processing industry .


### tall oil pitch . ### processing residues from pulp and paper industry , such as black liquor , crude sulphate soap , crude tall oil and tall oil pitch .


### in order to permit adaptation to technical and scientific progress of directive 2009 / 28 / ec , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the list of biofuel feedstocks that are counted multiple times towards the target set in article 3 , the energy content of transport fuels , criteria and geographic ranges for determining highly biodiverse grassland , the methodology for the calculation of indirect land - use change emissions , and the methodological principles and values necessary for assessing whether sustainability criteria have been fulfilled in relation to biofuels and bioliquids . ### in order to permit adaptation to technical and scientific progress of directive 2009 / 28 / ec , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the list of advanced biofuels , the energy content of transport fuels , criteria and geographic ranges for determining highly biodiverse grassland , and the methodological principles and values necessary for assessing whether sustainability criteria have been fulfilled in relation to biofuels and bioliquids .


### paragraph 6 is replaced by the following : ' 6 . the commission shall be empowered to adopt delegated acts pursuant to article 25 concerning the adaptation to technical and scientific progress of annex viii , including the revision of the proposed crop group indirect land - use change values ; the introduction of new values at further levels of disaggregation ; the inclusion of additional values should new biofuel feedstocks come to market as appropriate ; and the development of factors for feedstocks from non - food cellulosic and ligno - cellulosic materials . ' ### paragraph 6 is deleted


### where pasture or agricultural land previously destined for the food , feed and fibre markets is diverted to biofuel production , the non - fuel demand will still need to be satisfied either through intensification of current production or by bringing non - agricultural land into production elsewhere . the latter case represents indirect land - use change and when it involves the conversion of high carbon stock land it can lead to significant greenhouse gas emissions . directives 98 / 70 / ec and 2009 / 28 / ec should therefore include provisions to address indirect land use change given that current biofuels are mainly produced from crops grown on existing agricultural land . ### where pasture or agricultural land previously destined for the food , feed and fibre markets is diverted to biofuel production , the non - fuel demand will still need to be satisfied either through intensification of current production or by bringing non - agricultural land into production elsewhere . the latter case represents indirect land - use change and when it involves the conversion of high carbon stock land it can lead to significant greenhouse gas emissions .


### in order to permit adaptation to technical and scientific progress of directive 98 / 70 / ec , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the mechanism to monitor and reduce greenhouse gas emissions , the methodological principles and values necessary for assessing whether sustainability criteria have been fulfilled in relation to biofuels , criteria and geographic ranges for determining highly diverse grassland , the methodology for the calculation and reporting of lifecycle greenhouse gas emissions , the methodology for the calculation of indirect land - use change emissions , the permitted level related to the metallic additives content in fuels , the permitted analytical methods related to the fuel specifications and the vapour pressure waiver permitted for petrol containing bioethanol . ### in order to permit adaptation to technical and scientific progress of directive 98 / 70 / ec , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the mechanism to monitor and reduce greenhouse gas emissions , the methodological principles and values necessary for assessing whether sustainability criteria have been fulfilled in relation to biofuels , criteria and geographic ranges for determining highly diverse grassland , the methodology for the calculation and reporting of lifecycle greenhouse gas emissions , the permitted level related to the metallic additives content in fuels , the permitted analytical methods related to the fuel specifications and the vapour pressure waiver permitted for petrol containing bioethanol .


### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities , in part due to competition for public subsidies with established food crop based biofuel technologies . further incentives should be provided by increasing the weighting of advanced biofuels towards 10% target for transport set in directive 2009 / 28 / ec compared to conventional biofuels . in this context , only advanced biofuels with low estimated indirect land use change impacts and high overall greenhouse gas savings should be supported as part of the post 2020 renewable energy policy framework . ### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities , in part due to competition for public subsidies with established food crop based biofuel technologies . further incentives should be provided by increasing the weighting of advanced biofuels towards 10% target for transport set in directive 2009 / 28 / ec compared to conventional biofuels by setting 2% target for advanced biofuels .


### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities , in part due to competition for public subsidies with established food crop based biofuel technologies . further incentives should be provided by increasing the weighting of advanced biofuels towards 10% target for transport set in directive 2009 / 28 / ec compared to conventional biofuelsin this context , only advanced biofuels with low estimated indirect land use change impacts and high overall greenhouse gas savings should be supported as part of the post 2020 renewable energy policy framework . ### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . conventional biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of advanced biofuels , for example from cellulosic feedstocks and algae , as these also have the potential to provide high greenhouse gas savings with low risk of causing indirect land use change . further incentives should be provided by setting a separate target for advanced biofuels in the transport sector of at least 2% in directive 2009 / 28 / ec . in this context , advanced biofuels should be promoted as part of the post 2020 renewable energy policy framework . in order to avoid market distortions and incentives for fraud , advanced biofuels should meet the same sustainability criteria as all other biofuels .


### the commission should review the methodology for estimating land - use change emission factors included in annexes viii and v to directives 2009 / 28 / ec and 98 / 70 / ec respectively in the light of adaptation to technical and scientific progress . to this end , and if warranted by the latest available scientific evidence , the commission should consider the possibility of revising the proposed crop group indirect land - use change factors , as well as introducing factors at further levels of disaggregation and including additional values should new biofuel feedstocks come to market . ### the commission should periodically review the list of available advanced biofuels as laid down in annex ix in order to take account of technical and scientific progress .


### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing estimated indirect land use change emissions factors into the appropriate sustainability criteria to be applied from 1st january 2021 and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3d of directive 2009 / 28 / ec . ### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall include an impact assessment of biofuel production on the timber industry and the availability of wood . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing estimated indirect land use change emissions factors into the appropriate sustainability criteria to be applied from 1st january 2021 and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3 d of directive 2009 / 28 / ec .


### a delegated act adopted pursuant to articles 7a , the second subparagraph of article 7b , articles 7d , 7d , 7d , 8a and 10 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of 2 months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by 2 months at the initiative of the european parliament or the council . ### a delegated act adopted pursuant to articles 7a , the second subparagraph of article 7b , articles 7d , 8a and 10 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of 2 months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by 2 months at the initiative of the european parliament or the council .


### the delegation of powers referred to in articles 7a , the second subparagraph of article 7b , articles 7d , 7d , 7d , 8a and 10 may be revoked at any time by the european parliament or by the council . a decision of revocation shall put an end to the delegation of the power specified in that decision . it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein . it shall not affect the validity of any delegated acts already in force . ### the delegation of powers referred to in articles 7a , the second subparagraph of article 7b , articles 7d , 8a and 10 may be revoked at any time by the european parliament or by the council . a decision of revocation shall put an end to the delegation of the power specified in that decision . it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein . it shall not affect the validity of any delegated acts already in force .


### article 19 of directive 2009 / 28 / ec and article 7d of directive 98 / 70 / ec include provisions for encouraging the cultivation of biofuels in severely degraded and heavily contaminated land as an interim measure for mitigating against indirect land - use change . these provisions are no longer adequate in their current form and need to be integrated in the approach laid out in this directive to ensure that overall actions for minimising emission from indirect land - use change remain coherent . ### article 19 of directive 2009 / 28 / ec and article 7d of directive 98 / 70 / ec include provisions for encouraging the cultivation of biofuels in severely degraded and heavily contaminated land as a measure for mitigating against indirect land - use change . other iluc mitigation measures , such as the use of co - products , yield increases , manufacturing efficiencies and crop production on abandoned or unused land , should be assessed by the commission in view of incorporating them into the directives in terms of a bonus like the one already set out in annex iv part c point 7 of directive 98 / 70 / ec and in annex v part c point 7 of directive 2009 / 28 / ec for biomass obtained from restored degraded land .


### a delegated act adopted pursuant to article 3 , article 5 , the third subparagraph of article 17 , articles 19 , 19 and 19 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of 2 months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by 2 months at the initiative of the european parliament or the council . ### a delegated act adopted pursuant to point of article 2 , article 5 , the third subparagraph of article 17 , articles 19 , 19 and 19 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of 2 months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by 2 months at the initiative of the european parliament or the council .


### the delegation of power referred to in article 7a , the second subparagraph of article 7b , articles 7d , 7d , 7d , 8a and 10 shall be conferred for an indeterminate period of time from the date of entry into force of this directive . ### the delegation of power referred to in article 7a , the second subparagraph of article 7b , articles 7d , 8a and 10 shall be conferred for an indeterminate period of time from the date of entry into force of this directive .


### the following annex viii is added : ' annex viii feedstock group cereals and other starch rich crops sugars oil crops __________________ oj l 273 , 10 . 10 . 2002 , p . 1 ### deleted estimated indirect land - use change emissions 12 13 55


### the delegation of power referred to in article 3 , article 5 , the third subparagraph of article 17 , articles 19 , 19 and 19 shall be conferred on the commission for an indeterminate period of time from [ the date of entry into force of this directive ] . ### the delegation of power referred to in point of article , article 5 , the third subparagraph of article 17 , articles 19 , 19 and 19 shall be conferred on the commission for an indeterminate period of time from [ the date of entry into force of this directive ] .


### it is of particular importance that the commission in application of this directive carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council . ### it is of particular importance that the commission in application of this directive carry out appropriate consultations during its preparatory work , including at expert and stakeholder level , including the industrial sectors concerned . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council .


### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing estimated indirect land use change emissions factors into the appropriate sustainability criteria to be applied from 1st january 2021 and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3d of directive 2009 / 28 / ec . ### the commission shall , before 31 december 2018 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids .


### it is of particular importance that the commission in application of this directive carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council . ### it is of particular importance that the commission in application of this directive carry out appropriate consultations during its preparatory work , including at forestry - and agricultural - expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council .


### this regulation sets out provisions for strengthening the economic and budgetary surveillance of member states experiencing or threatened with serious difficulties with respect to their financial stability and / or that receive or may receive financial assistance from one or several other states , the european financial stability facility , the european financial stability mechanism , the european stability mechanism or other international financial institutions , such as the international monetary fund . ### this regulation sets out provisions for strengthening the economic and budgetary surveillance of member states experiencing or threatened with serious difficulties with respect to their financial stability , with potential negative spill - over effects on other member states whose currency is the euro or a detrimental impact on the sustainability of public finances , and / or of member states that have requested or that receive financial assistance from one or several other states , the european financial stability facility , the european financial stability mechanism , the european stability mechanism or other international financial institutions , such as the international monetary fund .


### if the monitoring referred to in paragraph 3 highlights significant deviations from the macro - economic adjustment programme , the council , acting by qualified majority on a proposal from the commission , may decide that the member state concerned does not comply with the policy requirements contained in the adjustment programme . ### if the monitoring referred to in paragraph 3 highlights significant deviations from the macro - economic adjustment programme . the commission may decide that the member state concerned does not comply with the policy requirements contained in the adjustment programme . the council may , within 10 days of adoption of such a decision , repeal it by simple majority .


### the commission shall conduct , in liaison with the ecb , regular review missions in the member state under surveillance to verify the progresses made in the implementation of the measures mentioned in paragraph 1 , 2 and 3 . it shall communicate every quarter its findings to the economic and financial committee - or to any subcommittee the latter may designate for that purpose - and assess notably whether further measures are needed . these review missions shall replace the onsite monitoring foreseen in article 10a of regulation no 1467 / 97 . ### the commission shall conduct , in liaison with the ecb and the esas as necessary and , where appropriate , the imf , regular review missions in the member state under enhanced surveillance to verify the progresses made in the implementation of the measures mentioned in paragraph 1 , 2 and 3 . it shall communicate every quarter its findings to the economic and financial committee and assess notably whether further measures are needed . these review missions shall replace the onsite monitoring provided for in article 10a of regulation no 1467 / 97 .


### carry out , under the supervision of the european banking authority , stress test exercises or sensitivity analyses as necessary to assess the resilience of the banking sector to various macroeconomic and financial shocks , as specified by the commission and the ecb , and share the detailed results with them ; ### carry out , under the supervision of the relevant esas , stress test exercises or sensitivity analyses as necessary to assess the resilience of the financial sector to various macroeconomic and financial shocks , as specified by the commission and the ecb in liaison with the relevant esas and the esrb ; the reporting referred to in point shall include an analysis of the results of the stress test exercises and sensitivity analyses mentioned herein ;


### a member state wishing to obtain financial assistance from one or several other states , the efsf , the esm , the international monetary fund or another institution outside of the union framework shall immediately inform the council , the commission and the ecb of its intention . the efc , or any subcommittee the latter may designate for that purpose , shall hold a discussion on this envisaged request , after having received an assessment from the commission . ### a member state intending to request financial assistance from one or several other member states , the efsf , the esm , the imf or another institution outside of the union framework shall immediately inform the council , the commission and the ecb of its intention . the efc shall hold a discussion on this envisaged request , after having received an assessment from the commission with a view to examining , inter alia , the possibilities available under existing union or euro area financial instruments before the member state concerned addresses potential lenders .


### the commission - in liaison with the ecb - shall examine with the member state concerned the changes that may be needed to its adjustment programme . the council , acting by a qualified majority on a proposal from the commission , shall decide on any change to be made to the adjustment programme . ### the commission - in liaison with the ecb and , where appropriate , the imf - shall examine with the member state concerned the changes that may be needed to its adjustment programme . the commission shall decide on any change to be made to the adjustment programme . the council may , within 10 days of that decision , repeal it by simple majority .


### a member state shall be under post - programme surveillance as long as a minimum of 75% of the financial assistance received from one or several other member state , the efsm , the efsf or the esm has not been repaid . the council , acting on a qualified majority on a proposal from the commission , may extend the duration of the post programme surveillance . ### a member state shall be under post - programme surveillance as long as a minimum of 75% of the financial assistance received from one or several other member state , the efsm , the efsf or the esm has not been repaid . the commission may decide to extend the duration of the post - programme surveillance . the council may , within 10 days of such a decision , repeal it by simple majority .


### the council , acting by qualified majority on a proposal from the commission , may recommend to the member state under post programme surveillance to adopt corrective measures . ### the commission may adopt a recommendation that the member state under post programme surveillance adopt corrective measures . the council may , within 10 days of such a recommendation , repeal it or adopt a different recommendation .


### the monitoring provided for by article 6 of this regulation shall be deemed to replace the monitoring and assessment of the european semester for economic policy coordination provided for by article 2a of regulation no 1466 / 97 on the strengthening of the surveillance of budgetary positions and coordination of economic policies . ### the monitoring provided for by article 6 of this regulation shall replace the monitoring and assessment of the european semester for economic policy coordination provided for by article 2a of regulation no 1466 / 97 on the strengthening of the surveillance of budgetary positions and coordination of economic policies .


### communicate to the commission , the ecb and the european banking authority at the requested frequency disaggregated information on the financial situation of the financial institutions which are under the surveillance of its national supervisors ; ### communicate to the relevant esas and at the requested frequency , disaggregated information on developments in its financial system . on the basis of this information , the relevant esas shall prepare , in liaison with the esrb , an assessment of the potential vulnerabilities of the financial system and forward that assessment to the commission at the frequency indicated by the latter . the ecb shall receive a copy of the assessment . reporting under this subparagraph shall take place in accordance with article 35 of regulation no 1093 / 2010 , of regulation no 1094 / 2010 and of regulation no 1095 / 2010 ;


### where financial assistance is sought from the efsf or the esm , the commission shall prepare – in liaison with the ecb and wherever possible , the imf - an analysis of the sustainability of the government debt of the member state concerned , including the member state ' s ability to repay the envisaged financial assistance , and forward it to the efc or to any subcommittee the latter may designate for that purpose . ### where financial assistance is sought from the efsf , the efsm or the esm , the commission shall prepare – in liaison with the ecb and where appropriate , the imf - an analysis of the sustainability of the government debt and the actual or potential financing needs of the member state concerned , including the member state ' s ability to repay the envisaged financial assistance , and send it to the efc


### the commission may decide to make a member state experiencing severe difficulties with regard to its financial stability subject to enhanced surveillance . the member state concerned shall be given the possibility to express its views beforehand . the commission shall decide every six months whether to prolong the enhanced surveillance . ### the commission may decide to make a member state experiencing severe financing problems with serious threats to its financial stability , likely to have adverse spill - over effects on other member states whose currency is the euro or a detrimental impact on the sustainability of public finances , subject to enhanced surveillance . the council may , within 10 days of such a decision , repeal it by simple majority . the member state concerned shall be given the possibility to express its views before the commission decision is taken . the commission shall decide every six months whether to prolong the enhanced surveillance .


### the relevant committee of the european parliament may invite representatives of the member state concerned to participate to an exchange of views ; ### the competent committee of the european parliament may offer the opportunity to the member state concerned to participate to an exchange of views ;


### the commission may decide to make a member state experiencing severe difficulties with regard to its financial stability subject to enhanced surveillance . the member state concerned shall be given the possibility to express its views beforehand . the commission shall decide every six months whether to prolong the enhanced surveillance . ### the commission shall decide to make a member state experiencing or threatened with severe difficulties with regard to its financial stability , which are likely to have adverse spill - over effects on other member states whose currency is the euro , subject to enhanced surveillance . the member state concerned shall be given the possibility to express its views beforehand . the commission shall decide every six months whether to prolong the enhanced surveillance .


### a member state receiving financial assistance from one or several other states , the imf , the efsf or the esm shall prepare in agreement with the commission - acting in liaison with the ecb - a draft adjustment programme aimed at re - establishing a sound and sustainable economic and financial situation and restoring its capacity to finance itself fully on the financial markets . the draft adjustment programme shall take due account of the current recommendations addressed to the member state concerned under articles 121 , 126 and / or 148 of the treaty - and its actions to comply with them - while aiming at broadening , strengthening and deepening the required policy measures . ### a member state requesting or receiving financial assistance from one or several other states , the imf , the efsf , the efsm or the esm shall prepare in agreement with the commission - acting in liaison with the ecb and where appropriate the imf - a binding draft adjustment programme , including annual budgetary targets , which is ambitious and addresses the specific risks emanating from that member state for the financial stability of the euro area and which aims at rapidly re - establishing a sound and sustainable economic and financial situation and restoring its capacity to finance itself fully on the financial markets . the draft adjustment programme shall take due account of the recommendations addressed to the member state concerned under articles 121 , 126 , 136 and / or 148 of the treaty - and its actions to comply with them - while aiming at broadening , strengthening and deepening the required policy measures .


### where it is concluded - on the basis of the assessment foreseen in paragraph 4 - that further measures are needed and the financial situation of the member state concerned has significant adverse effects on the financial stability of the euro area , the council , acting by qualified majority on a proposal from the commission , may recommend to the member state concerned to seek financial assistance and to prepare a macro - economic adjustment programme . the council may decide to make this recommendation public . ### where it is concluded - on the basis of the assessment foreseen in paragraph 4 - that further measures are needed or the financial situation of the member state concerned has significant adverse effects on the financial stability of the euro area , the council , acting by qualified majority on a proposal from the commission , may recommend to the member state concerned to seek financial assistance and to prepare a macro - economic adjustment programme .


### the adjustment programme and the changes thereto provided for by article 6 of this regulation shall be deemed to replace the submission of stability programmes provided for by article 4 of council regulation no 1466 / 97 . ### the adjustment programme and the changes thereto provided for by article 6 of this regulation shall replace the submission of stability programmes provided for by article 4 of council regulation no 1466 / 97 .


### the council , acting by qualified majority on a proposal from the commission , shall approve the adjustment programme . ### the commission proposal of the adjustment programme shall be deemed to be adopted by the council unless it decides by qualified majority , within 10 days , to reject it .


### the commission shall decide to make a member state receiving a financial assistance on a precautionary basis from one or several other states , the efsf , the esm or any other international financial institution , such as the imf , subject to enhanced surveillance . the commission shall establish a list of the precautionary financial assistance instruments concerned and keep it updated to take into account possible changes in the financial support policy of the efsf , esm or of any other relevant international financial institution . ### the commission shall decide to make a member state receiving a financial assistance on a precautionary basis from one or several other states , the efsf , the esm or any other international financial institution , such as the imf , subject to enhanced surveillance . the decision shall be deemed to be adopted by the council unless it decides , by qualified majority , within 10 days , to reject it . the commission shall establish a list of the precautionary financial assistance instruments concerned and keep it updated to take into account possible changes in the financial support policy of the efsf , esm or of any other relevant international financial institution .


### be subject to regular assessments of its supervisory capacities over the banking sector in the framework of specific peer review carried out by the eba ; ### be subject to regular assessments of its supervisory capacities over the financial sector in the framework of a specific peer review carried out by the relevant esas ;


### the relevant committee of the european parliament may invite representatives of the member state concerned to participate to an exchange of views on the progress made in the implementation of the adjustment programme . ### the competent committee of the european parliament may offer the opportunity to the member state concerned to participate to an exchange of views on the progress made in the implementation of the adjustment programme .


### a member state under enhanced surveillance shall , in consultation and cooperation with the commission , acting in liaison with the european central bank , adopt measures aimed at addressing the sources or potential sources of difficulties . ### a member state under enhanced surveillance shall , in consultation and cooperation with the commission , acting in liaison with the european central bank , adopt measures aimed at addressing the sources or potential sources of difficulties . before the member state adopts the measures referred to in the first subparagraph , the commission shall consult the social partners with the aim of contributing to a balanced and realistic set of recommendations .


### a member state under enhanced surveillance shall , in consultation and cooperation with the commission , acting in liaison with the european central bank , adopt measures aimed at addressing the sources or potential sources of difficulties . ### a member state subject to enhanced surveillance shall , in consultation and cooperation with the commission , acting in liaison with the european central bank , the esas , the esrb and , where appropriate , the imf , adopt measures aimed at addressing the sources or potential sources of difficulties .


### the unprecedented global crisis that has hit the world over the last three years has seriously damaged economic growth and financial stability and provoked a strong deterioration in the government deficit and debt position of the member states , leading a number of them to seek financial assistance outside the framework of the union . ### the unprecedented global crisis that has hit the world over the last three years has seriously damaged economic growth and financial stability and provoked a strong deterioration in the government deficit and debt position of the member states , leading a number of them to seek financial assistance .


### the adjustment programme provided for by article 6 of this regulation shall also be deemed to replace as appropriate the reports provided for by article 3 and article 5 of council regulation no 1467 / 97 ; ### the adjustment programme provided for by article 6 of this regulation shall also replace as appropriate the reports provided for by article 3 and article 5 of council regulation no 1467 / 97 ;


### carry out , under the supervision of the european banking authority , stress test exercises or sensitivity analyses as necessary to assess the resilience of the banking sector to various macroeconomic and financial shocks , as specified by the commission and the ecb , and share the detailed results with them ; ### carry out , under the supervision of the relevant esas , stress test exercises or sensitivity analyses as necessary to assess the resilience of the financial sector to various macroeconomic and financial shocks , as specified by the commission and the ecb in liaison with the relevant esas and the esrb ; the reporting referred to in point shall include an analysis of the results of the stress test exercises and sensitivity analyses mentioned herein ;


### the monitoring provided for by article 6 of this regulation shall be deemed to replace the monitoring provided for by article 10 and article 10a of council regulation no 1467 / 97 and the monitoring underlying any decision provided for by article 4 and 6 of regulation no 1467 / 97 . ### the monitoring provided for by article 6 of this regulation shall replace the monitoring provided for by article 10 and article 10a of council regulation no 1467 / 97 and the monitoring underlying any decision provided for by article 4 and 6 of regulation no 1467 / 97 .


### the commission shall conduct , in liaison with the ecb , regular review missions in the member state under surveillance to verify the progresses made in the implementation of the measures mentioned in paragraph 1 , 2 and 3 . it shall communicate every quarter its findings to the economic and financial committee - or to any subcommittee the latter may designate for that purpose - and assess notably whether further measures are needed . these review missions shall replace the onsite monitoring foreseen in article 10a of regulation no 1467 / 97 . ### the commission shall conduct , in liaison with the ecb and the esas as necessary and , where appropriate , the imf , regular review missions in the member state under enhanced surveillance to verify the progresses made in the implementation of the measures mentioned in paragraph 1 , 2 and 3 . it shall communicate every quarter its findings to the economic and financial committee and assess notably whether further measures are needed . these review missions shall replace the onsite monitoring provided for in article 10a of regulation no 1467 / 97 .


### the commission shall decide to make a member state receiving a financial assistance on a precautionary basis from one or several other states , the efsf , the esm or any other international financial institution , such as the imf , subject to enhanced surveillance . the commission shall establish a list of the precautionary financial assistance instruments concerned and keep it updated to take into account possible changes in the financial support policy of the efsf , esm or of any other relevant international financial institution . ### the commission shall decide to make a member state receiving a financial assistance from one or several other states , the efsf , the esm or any other international financial institution , such as the imf , subject to enhanced surveillance . the council may , within 10 days of adoption of such a decision , repeal it by simple majority .


### this regulation sets out provisions for strengthening the economic and budgetary surveillance of member states experiencing or threatened with serious difficulties with respect to their financial stability and / or that receive or may receive financial assistance from one or several other states , the european financial stability facility , the european financial stability mechanism , the european stability mechanism or other international financial institutions , such as the international monetary fund . ### this regulation sets out provisions for strengthening the economic and budgetary surveillance of member states experiencing or threatened with serious difficulties with respect to their financial stability , with potential negative spill - over effects on other member states whose currency is the euro or a detrimental impact on the sustainability of public finances , and / or of member states that have requested or that receive financial assistance from one or several other states , the european financial stability facility , the european financial stability mechanism , the european stability mechanism or other international financial institutions , such as the international monetary fund .


### the annual budgetary targets in the adjustment programme provided for by article 6 of this regulation shall be deemed to replace as appropriate the annual budgetary targets foreseen in accordance with article 3 and article 5 of regulation no 1467 / 97 in the mentioned recommendation and notice . if the member state concerned is subject to notice under article 126 of the treaty , the adjustment programme foreseen by article 6 of this regulation shall also be deemed to replace the indications on measures conducive to those targets foreseen in the notice in accordance with article 5 of regulation no 1467 / 97 . ### the annual budgetary targets in the adjustment programme provided for by article 6 of this regulation shall replace as appropriate the annual budgetary targets foreseen in accordance with article 3 and article 5 of regulation no 1467 / 97 in the mentioned recommendation and notice . if the member state concerned is subject to notice under article 126 of the treaty , the adjustment programme foreseen by article 6 of this regulation shall also replace the indications on measures conducive to those targets foreseen in the notice in accordance with article 5 of regulation no 1467 / 97 .


### the commission - in liaison with the ecb - shall examine with the member state concerned the changes that may be needed to its adjustment programme . the council , acting by qualified majority on a proposal from the commission , shall approve the adjustment programme . ### the commission - in liaison with the ecb - shall examine with the member state concerned the changes that may be needed to its adjustment programme . the council , acting by a qualified majority on a proposal from the commission , and after consulting the european parliament , shall decide on any change to be made to the adjustment programme .


### if the monitoring referred to in paragraph 3 highlights significant deviations from the macro - economic adjustment programme , the council , acting by qualified majority on a proposal from the commission , may decide that the member state concerned does not comply with the policy requirements contained in the adjustment programme . ### if the monitoring referred to in paragraph 3 highlights significant deviations from the macro - economic adjustment programme . the commission may decide that the member state concerned does not comply with the policy requirements contained in the adjustment programme . the council may , within 10 days of adoption of such a decision , repeal it by simple majority .


### member states shall require large undertakings and all public interest entities active in the extractive industry or the logging of primary forests to prepare and make public a report on payments made to governments on an annual basis . ### member states shall require large undertakings , including joint - venture undertakings , and all public interest entities to prepare and make public a report on payments , including payments in kind , made to governments on an annual basis as part of the annual report of financial statements . in this report , the undertaking shall also publish additional financial information regarding their activities in third countries .


### the reports should serve to facilitate governments of resource - rich countries in implementing the eiti principles and criteria and account to their citizens for payments such governments receive from undertakings active in the extractive industry or loggers of primary forests operating within their jurisdiction . the report should incorporate disclosures on a country and project basis , where a project is considered as the lowest level of operational reporting unit at which the undertaking prepares regular internal management reports , such as a concession , geographical basin , etc and where payments have been attributed to such projects . in the light of the overall objective of promoting good governance in these countries , the materiality of payments to be reported should be assessed in relation to the recipient government . various criteria on materiality could be envisaged such as payments of an absolute amount , or a percentage threshold and these can be defined through a delegated act . the reporting regime should be subject to a review and a report by the commission within five years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments including issues of competitiveness and energy security . the review should also take into account the experience of preparers and users of the payments information and consider whether it would be appropriate to include additional payment information such as effective tax rates and recipient details , such as bank account information . ### the reports should serve to facilitate governments to be accountable to their citizens for payments such governments receive from undertakings operating within their jurisdiction . the report should incorporate disclosures on a country basis and in the case of undertakings active in the extractive industries or the logging of primary forests , the report should also specify the specific project or projects to which those payments have been attributed , a project being considered equivalent to the contract , licence , lease , concession or other legal agreement which gives rise to a company ' s tax and revenue liabilities in each country where it operates . where any payment liabilities are incurred on a different basis , reporting shall be on that basis . in the light of the overall objective of promoting good governance in these countries , payments shall be considered material if any one payment or set of payments of the same type amounts to more than eur 15 000 . the reporting regime should be subject to a review and a report by the commission within five years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments including issues of competitiveness and energy security . the review should also take into account the experience of preparers and users of the payments information and consider whether it would be appropriate to include additional payment information .