### member states should ensure that remedies are available for consumers harmed by unfair commercial practices in order to eliminate all the effects of those unfair practices . in order to meet that objective , member states should make both contractual and non - contractual remedies available . as a minimum , the contractual remedies provided by the member states should include the right to contract termination . non - contractual remedies provided under national law should , as a minimum , include the right to compensation for damages . member states would not be prevented from maintaining or introducing rights to additional remedies for consumers harmed by unfair commercial practices in order to ensure full removal of the effects of such practices . ### member states should ensure that remedies are available for consumers harmed as regards their property or physical integrity by unfair commercial practices in order to eliminate all the effects of those unfair practices . in order to meet that objective , member states should make both contractual and non - contractual remedies available , taking into account the hierarchy of remedies and with due respect for their civil law and , in particular , also their liability systems , and the conditions laid down therein . as a minimum , the contractual remedies provided by the member states should include the right to contract termination . non - contractual remedies provided under national law should , as a minimum , include the right to compensation for damages . member states would not be prevented from maintaining or introducing rights to additional remedies for consumers harmed by unfair commercial practices in order to ensure full removal of the effects of such practices .


### member states should ensure that remedies are available for consumers harmed by unfair commercial practices in order to eliminate all the effects of those unfair practices . in order to meet that objective , member states should make both contractual and non - contractual remedies available . as a minimum , the contractual remedies provided by the member states should include the right to contract termination . non - contractual remedies provided under national law should , as a minimum , include the right to compensation for damages . member states would not be prevented from maintaining or introducing rights to additional remedies for consumers harmed by unfair commercial practices in order to ensure full removal of the effects of such practices . ### member states should ensure that remedies are available for consumers harmed by unfair commercial practices in order to eliminate all the effects of those unfair practices . in order to meet that objective , member states should make both contractual and non - contractual remedies available . as a minimum , the contractual remedies provided by the member states should include the right to price reduction or to contract termination . non - contractual remedies provided under national law should , as a minimum , include the right to compensation for damages . member states would not be prevented from maintaining or introducing rights to additional remedies for consumers harmed by unfair commercial practices in order to ensure full removal of the effects of such practices .


### directive 2011 / 83 / eu should also not apply to situations where the trader only collects metadata , such as the ip address , browsing history or other information collected and transmitted for instance by cookies , except where this situation is considered a contract under national law . it should also not apply to situations where the consumer , without having concluded a contract with the trader , is exposed to advertisements exclusively in order to gain access to digital content or a digital service . however , member states should remain free to extend the application of the rules of directive 2011 / 83 / eu to such situations or to otherwise regulate such situations which are excluded from the scope of that directive . ### directive 2011 / 83 / eu should also not apply to situations where the trader only collects metadata , such as the ip address , browsing history or other information collected and transmitted for instance by cookies . it should also not apply to situations where the consumer , without having concluded a contract with the trader , is exposed to advertisements exclusively in order to gain access to digital content or a service including digital services . however , this does not preclude to otherwise regulate such situations which are excluded from the scope of directive 2011 / 83 / eu through union law .


### such a practice can therefore be qualified as contrary to directive 2005 / 29 / ec based on a case by case assessment of relevant elements . in order to facilitate the application of existing law by member states ' consumer and food authorities , guidance on the application of current eu rules to situations of dual quality of food products was provided in the commission notice of 26 . 9 . 2017 ' on the application of eu food and consumer protection law to issues of dual quality of products – the specific case of food ' . 46 in this context , the commission ' s joint research centre is currently developing a common approach to the comparative testing of food products . __________________ 46 c6532 . ### such a practice can therefore be qualified as contrary to directive 2005 / 29 / ec based on a case by case assessment of relevant elements . in order to facilitate the application of existing law by member states ' consumer and food authorities , guidance on the application of current eu rules to situations of dual quality of food products was provided in the commission notice of 26 . 9 . 2017 ' on the application of eu food and consumer protection law to issues of dual quality of products – the specific case of food ' . 46 in this context , the commission ' s joint research centre has developed an eu harmonised testing methodology to comparatively assess quality related characteristics of food products . __________________ 46 c6532 .


### while off - premises sales constitute a legitimate and well - established sales channel , like sales at a trader ' s business premises and distance–selling , some particularly aggressive or misleading marketing practices in the context of visits to the consumer ' s home without the consumer ' s prior agreement or during commercial excursions can put consumers under pressure to make purchases of goods they would not otherwise buy and / or purchases at excessive prices , often involving immediate payment . such practices often target elderly or other vulnerable consumers . some member states consider those practices undesirable and deem it necessary to restrict certain forms and aspects of off - premises sales within the meaning of directive 2011 / 83 / eu , such as aggressive and misleading marketing or selling of a product in the context of unsolicited visits to a consumer ' s home or commercial excursions , on grounds of public policy or the respect for consumers’ private life protected by article 7 of the charter of fundamental rights of the eu . in accordance with the principle of subsidiarity and in order to facilitate enforcement , it should therefore be clarified that directive 2005 / 29 / ec is without prejudice to member states ' freedom to make arrangements without the need for a case - by - case assessment of the specific practice , to protect the legitimate interests of consumers with regard to unsolicited visits at their private home by a trader in order to offer or sell products or in relation to commercial excursions organised by a trader with the aim or effect of promoting or selling products to consumers where such arrangements are justified on grounds of public policy or the protection of private life . any such provisions should be proportionate and not discriminatory . member states should be required to notify any national provisions adopted in this regard to the commission so that the commission can make this information available to all interested parties and monitor the proportionate nature and legality of those measures . ### while off - premises sales constitute a legitimate and well - established sales channel , some particularly aggressive or misleading marketing practices in the context of commercial excursions can put consumers under pressure to make purchases of goods they would not otherwise buy and / or purchases at excessive prices , often involving immediate payment . in accordance with the principle of subsidiarity and in order to facilitate enforcement , it should therefore be clarified that directive 2005 / 29 / ec is without prejudice to member states ' freedom to make arrangements to protect the legitimate interests of consumers with regard to commercial excursions organised by a trader with the aim or effect of promoting or selling products to consumers . any such provisions should be proportionate and not discriminatory . member states should be required to notify any national provisions adopted in this regard to the commission so that the commission can make this information available to all interested parties and examine the proportionate nature and legality of those measures .


### in addition to the requirement to ensure adequate and effective means to enforce compliance in article&#160 ; 11 , member states shall ensure that contractual and non - contractual remedies are also available for consumers harmed by unfair commercial practices in order to eliminate all the effects of those unfair commercial practices in accordance with their national law . ### in addition to the requirement to ensure adequate and effective means to enforce compliance in article&#160 ; 11 , member states shall ensure that contractual and non - contractual remedies are also available for consumers harmed by unfair commercial practices as regards their property or physically in order to eliminate the harmful effects of those unfair commercial practices while respecting their collective civil law and , in particular , liability systems and the conditions set out therein , in accordance with their national law and while respecting the hierarchy of warranty remedies .


### where the penalty to be imposed is a fine , the infringing trader’s annual turnover and net profits as well as any fines imposed for the same or other infringements of this directive in other member states shall also be taken into account in the determination of its amount . ### where the penalty to be imposed is a fine , the infringing trader’s annual turnover and net profits as well as any fines imposed for the same or other infringements of this directive in other member states shall also be taken into account in the determination of its amount . member states may provide that in the event of a breach of the national provisions adopted pursuant to this directive , the trader shall be advised by the authority with a view to the most efficient possible termination and urged to comply with the law , and no sanction shall be imposed if the request is acted on in time . they shall specify the detailed conditions for such a procedure .


### where the penalty to be imposed is a fine , the infringing trader’s annual turnover and net profits as well as any fines imposed for the same or other infringements of this directive in other member states shall also be taken into account in the determination of its amount . ### the infringing trader’s annual turnover and net profits as well as any fines imposed for the same or other infringements of this directive in other member states shall also be taken into account in the determination of the level of penalty .


### member states shall ensure that the penalties for widespread infringements and widespread infringements with a union dimension within the meaning of regulation no 2017 / 2934 include the possibility to impose fines , the maximum amount of which shall be at least 4 % of the trader’s annual turnover in the member state or member states concerned . ### member states shall ensure that the penalties for widespread infringements and widespread infringements with a union dimension within the meaning of regulation no 2017 / 2394 include the possibility to impose fines , the maximum amount of which shall be up to 10 000 000 eur or 4 % of the trader’s total worldwide annual turnover of the preceding financial year , whichever is higher .


### using editorial content in the media , or providing information to a consumer’s online search query , to promote a product where a trader has paid for the promotion without making that clear in the content or search results or by images or sounds clearly identifiable by the consumer . this is without prejudice to directive 2010 / 13 / eu48 . __________________ 48 directive 2010 / 13 / eu of the european parliament and of the council of 10 march 2010 on the coordination of certain provisions laid down by law , regulation or administrative action in member states concerning the provision of audiovisual media services . ### using editorial content in the media , or providing information to a consumer’s online search query , to promote a product or service where a trader has provided direct or indirect remuneration for a promotion or prominent placement without making that clear in the content or search results or by images or sounds clearly identifiable by the consumer in a concise , transparent and intelligible form . this is without prejudice to directive 2010 / 13 / eu48 . __________________ 48 directive 2010 / 13 / eu of the european parliament and of the council of 10 march 2010 on the coordination of certain provisions laid down by law , regulation or administrative action in member states concerning the provision of audiovisual media services .


### ‘ digital service’ means a service allowing the consumer the creation , processing or storage of , or access to , data in digital form ; or a service allowing the sharing of or any other interaction with data in digital form uploaded or created by the consumer and other users of that service , including video and audio sharing and other file hosting , word processing or games offered in the cloud computing environment and social media . ### ‘ digital service’ means a service that allows the consumer to create , process , store or access data in digital form ; or a service that allows the sharing of or any other interaction with data in digital form uploaded or created by the consumer and other users of that service .


### the main parameters determining ranking of offers presented to the consumer as result of his search query on the online marketplace ; ### the methods for referencing , ranking and dereferencing the content of offers presented to the consumer as a result of his search query on the online platform , indicating the default ranking criteria , their main parameters and their relative weighting ;


### with respect to off - premises contracts , the trader shall give the information provided for in article 6 to the consumer on paper or , if the consumer agrees , on another durable medium . that information shall be legible and in plain , intelligible language . ### in article 7 , paragraph 1 is replaced by the following : “1 . with respect to off - premises contracts , the trader shall give the information provided for in article 6 to the consumer on a durable medium . that information shall be legible and in plain , intelligible language . ”


### the trader shall provide the consumer with a copy of the signed contract or the confirmation of the contract on paper or , if the consumer agrees , on another durable medium , including , where applicable , the confirmation of the consumer’s prior express consent and acknowledgement in accordance with point of article 16 . ### in article 7 , paragraph 2 is replaced by the following : “2 . the trader shall provide the consumer with a copy of the signed contract on a durable medium , including , where applicable , the confirmation of the consumer’s prior express consent and acknowledgement in accordance with point of article 16 . ”


### the supply of goods or services for which the price is dependent on fluctuations in the financial market which cannot be controlled by the trader and which may occur within the withdrawal period ; ### point b of article 16 is amended as follows : ‘ the supply of goods , services or non - network energy for which the price is dependent on fluctuations in the financial market , commodity market or energy market which cannot be controlled by the trader and which may occur within the withdrawal period ; ’


### contracts where the consumer has specifically requested a visit from the trader for the purpose of carrying out urgent repairs or maintenance . if , on the occasion of such visit , the trader provides services in addition to those specifically requested by the consumer or goods other than replacement parts necessarily used in carrying out the maintenance or in making the repairs , the right of withdrawal shall apply to those additional services or goods ; ### point is replaced by the following : ‘ contracts where the consumer has specifically requested a visit from the trader for the purpose of carrying out urgent repairs or maintenance or performing other urgent services required at short notice . if , on the occasion of such visit , the trader provides services in addition to those specifically requested by the consumer or goods other than replacement parts necessarily used in carrying out the maintenance or in making the repairs , the right of withdrawal shall apply to those additional services or goods ; ’


### the selected policy objectives indicating by which of the funds and programmes they will be pursued and a justification thereto , and where relevant , a justification for using the delivery mode of the investeu , taking into account relevant country - specific recommendations ; ### the selected policy objectives indicating by which of the funds and programmes they will be pursued and a justification thereto , and where relevant , a justification for using reform support programme and the delivery mode of the investeu , taking into account relevant country - specific recommendations ;


### a summary of the policy choices and the main results expected for each of the funds , including where relevant , through the use of investeu ; ### a summary of the policy choices and the main results expected for each of the funds , including where relevant , through the use of reform support programme and investeu ;


### the commission may request a member state to review and propose amendments to relevant programmes , where this is necessary to support the implementation of relevant council recommendations . ### the commission may request a member state to review and propose amendments to relevant programmes , where this is necessary to support the implementation of relevant council recommendations , if all funds available under the reform support programme for the member state are absorbed .


### the suspension of commitments shall be subject to a maximum of 25 % of the commitments relating to the next calendar year for the funds or 0 , 25 % of nominal gdp whichever is lower , in any of the following cases : ### the suspension of commitments shall be subject to a maximum of 50 % of the commitments relating to the next calendar year for the funds or 0 , 5 % of nominal gdp whichever is lower , in any of the following cases :


### the commission shall transmit the proposal for suspension of commitments or the proposal to lift such a suspension , to the european parliament and to the council . ### the commission shall transmit the proposal for suspension of commitments or the proposal to lift such a suspension , to the european parliament for opinion and to the council for decision .


### regulation no 2006 / 2004 of the european parliament and of the council58 provides for harmonised rules and procedures to facilitate cooperation between national authorities responsible for the enforcement of cross - border consumer protection laws . article 21a provides for a review of the effectiveness and operational mechanisms of that regulation and pursuant to that article , the commission concluded that regulation no 2006 / 2004 is not sufficient to effectively address the enforcement challenges of the single market , and in particular the digital single market , _________________ 58 regulation 2006 / 2004 of the european parliament and of the council on cooperation between national authorities responsible for the enforcement of consumer protection laws . ### regulation no 2006 / 2004 of the european parliament and of the council58provides for harmonised rules and procedures to facilitate cooperation between national authorities responsible for the enforcement of cross - border consumer protection laws . article 21a of regulation no 2006 / 2004 provides for a review of the effectiveness and operational mechanisms of that regulation and pursuant to that article , the commission concluded that regulation no 2006 / 2004 is not sufficient to effectively address the enforcement challenges of the single market , &#160 ; especially the digital single market , the commission report shows that the current regulation needs to be replaced to respond to the challenges of the digital economy and the development of cross - border retail trade in the eu .


### the digital single market strategy adopted by the commission on 6 may 2015 identified as one of the priorities the need to enhance consumer trust through more rapid , agile and consistent enforcement of consumer rules . the single market strategy adopted by the commission on 28 october 2015 reiterated that enforcing union consumer protection legislation should be further strengthened by the regulation on consumer protection cooperation , ### the digital single market strategy adopted by the commission on 6 may 2015 identified as one of the priorities the need to enhance consumer trust through more rapid , agile , consistent and coherent enforcement of consumer rules . the single market strategy adopted by the commission on 28 october 2015 reiterated that enforcing union consumer protection legislation should be further strengthened by the revision of the regulation on consumer protection cooperation ,


### the resulting ineffective enforcement of cross - border infringements , in particular in the digital environment , enables traders to evade enforcement by relocating within the union , giving rise to a distortion of competition for law - abiding traders operating either domestically or cross - border , and thus directly harming consumers and undermineing consumer confidence in cross - border transactions and the single market . an increased level of harmonisation setting effective and efficient enforcement cooperation among competent public enforcement authorities is therefore necessary to detect , investigate and order the cessation of intra - union infringements and widespread infringements , ### the resulting ineffective enforcement of cross - border infringements , in particular in the digital environment , enables traders to evade enforcement by relocating within the union , giving rise to a distortion of competition for law - abiding traders operating either domestically or cross - border , and thus directly and significantly harming the single market and consumers and undermining consumer confidence in cross - border transactions and the single market . an increased level of harmonisation setting effective and efficient enforcement cooperation among competent public enforcement authorities is therefore necessary to detect , investigate and order the cessation of intra - union infringements and provide an efficient and proportionate response to widespread infringements with a union dimension that significantly harm consumers and the single market ,


### competent authorities should have a minimum set of powers of investigation and enforcement to apply this regulation effectively , to cooperate with each other , and to deter traders from committing intra - union infringements and widespread infringements . those powers should be adequate to tackle the enforcement challenges of e - commerce and the digital environment where the possibilities of a trader easily concealing its identity or changing it are of particular concern . those powers should ensure that evidence can be validly exchanged among competent authorities to achieve effective enforcement at an equal level in all member states , ### competent authorities should have a minimum set of powers of investigation and enforcement to apply this regulation effectively , to ensure efficient and legally sound cross - border cooperation with each other , and to deter traders from committing intra - union infringements and widespread infringements . those powers should be balanced , adequate and sufficient to tackle the enforcement challenges of e - commerce and the digital environment where the possibilities of a trader easily concealing its identity or changing it are of particular concern . those powers should ensure that information and evidence can be validly exchanged among competent authorities to achieve effective enforcement at an equal level in all member states ,


### competent authorities should be in a position to open investigations on their own initiative if they become aware of intra - union infringements or widespread infringements by means other than consumer complaints . this is particularly necessary to ensure effective cooperation among competent authorities when addressing widespread infringements , ### competent authorities may open investigations on their own initiative if they become aware of intra - union infringements or widespread infringements by means other than consumer complaints . this is particularly necessary to ensure effective cross - border cooperation among competent authorities when addressing widespread infringements ,


### in the digital environment in particular , the competent authorities should be able to stop infringements quickly and effectively , notably where the trader selling goods or services conceals its identity or relocates within the union or to a third country to avoid enforcement . in cases where there is a risk of serious and irreparable harm to consumers , the competent authorities should to be able to adopt interim measures to prevent such harm or reduce it , including , where necessary , the suspension of a website , domain or a similar digital site , service or account . furthermore , the competent authorities should have the power to take down or have a third party service provider take down a website , domain or a similar digital site , service or account , ### in the digital environment in particular , the competent authorities should be able to take effective and transparent measures to stop infringements quickly and effectively , notably where the trader selling goods or services conceals its identity or relocates within the union or to a third country to avoid enforcement . in cases where there is a risk of serious and irreparable harm to consumers , the competent authorities should to be able to adopt interim measures to prevent such harm or reduce it , including , where necessary , the suspension of a website , domain or a similar digital site , service or account . furthermore , the competent authorities should have the power to take down or have a third party service provider take down a website , domain or a similar digital site , service or account ,


### the effectiveness and efficacy of the mutual assistance mechanism should be improved . information requested should be provided in a timely manner and the necessary enforcement measures should be adopted in a timely manner . the commission should therefore set binding time periods for competent authorities to reply to information and enforcement requests , and clarify procedural and other aspects of handling information and enforcement requests , by means of implementing measures , ### the effectiveness and efficacy of the mutual assistance mechanism should be improved . information requested should be provided in a timely manner , within clear time limits , and the necessary enforcement measures should be adopted in a timely and transparent manner . the commission should therefore set clear and binding time periods for competent authorities to reply to information and enforcement requests , and clarify procedural and other aspects of handling information and enforcement requests , by means of implementing measures ,


### in the context of widespread infringements and widespread infringement with a union dimension , the rights of defence of the traders concerned should be respected . this requires , in particular , giving the trader the right to be heard and to use the language of its choice during the proceedings , ### in the context of infringements , widespread infringements and widespread infringement with a union dimension , access to justice and the rights of defence of the traders concerned should be respected . inter alia , this requires , in particular , giving the trader the right to be heard and to use the language of its choice during the proceedings ,


### data related to consumer complaints may help policymakers at a national and union level to assess the functioning of consumer markets and detect infringements . with a view to facilitating the exchange of such data at a union level , the commission has adopted a recommendation on the use of a harmonised methodology for classifying and reporting consumer complaints and enquiries59 . that recommendation should be implemented to fully support enforcement cooperation and facilitate the detection of intra - union infringements and widespread infringements , _________________ 59 commission recommendation on the use of harmonised methodology for classifying consumer complaints and enquiries . ### data related to consumer complaints may help policymakers at a national and union level to assess the functioning of consumer markets and detect infringements or risks of infringements . with a view to facilitating the exchange of such data at a union level , the commission has adopted a recommendation on the use of a harmonised methodology for classifying and reporting consumer complaints and enquiries59 . the member states should implement that recommendation in order to fully support and encourage cross - border enforcement cooperation and facilitate the detection of intra - union infringements and widespread infringements ,


### this regulation respects fundamental rights and observes the principles recognised in particular by the charter of fundamental rights of the european union67 . accordingly this regulation should be interpreted and applied with respect to those rights and principles . when exercising the minimum powers set out in this regulation , the competent authorities should strike an appropriate balance between the interests protected by fundamental rights such as a high level of consumer protection , the freedom to conduct business and freedom of information . _________________ 67 oj c 364 , 18 . 12 . 2000 , p . 1 . ### this regulation respects fundamental rights and observes the principles recognised in particular by the charter of fundamental rights of the european union67 . accordingly this regulation should be interpreted and applied with respect to those rights and principles . when exercising the minimum powers set out in this regulation , the competent authorities should guarantee that the principle of proportionality is respected and strike an appropriate balance between the interests protected by fundamental rights such as a high level of consumer protection , the freedom to conduct business and freedom of information .


### ' harm to collective interests of consumers ' means actual or potential harm to the interests of a number of consumers that are concerned by intra - union infringements or widespread infringements ; and that shall be presumed in particular where the infringement potentially ; or actually harmed , harms or is likely to harm a significant number of consumers in a similar situation . ### ' harm to collective interests of consumers ' means actual or potential harm to the interests of a reasonable number of consumers that are concerned by intra - union infringements or widespread infringements ; and that shall be presumed in particular where the infringement potentially ; or actually harmed , harms or is likely to harm a reasonable number of consumers in a similar situation .


### any action taken by the competent authority for the purpose of the investigation or enforcement proceedings in respect of the infringement shall suspend the limitation period for the imposition of penalties until the final decision concerning the matter is adopted . the limitation period for the imposition of penalties shall be suspended for as long as the decision , order or other action of the competent authority is the subject of proceedings pending before a court . ### 3 . any action taken by the competent authority for the purpose of the investigation or enforcement proceedings in respect of the infringement shall suspend the limitation period for imposing the sanctions under paragraph 1 until the final decision concerning the matter is adopted . the limitation period for the imposition of sanctions shall be suspended for as long as the decision , order or other action of the competent authority is the subject of proceedings pending before a court .


### member states shall ensure that competent authorities and single liaison offices have the adequate resources necessary for the application of this regulation and for the effective use of their powers pursuant to article 8 , including sufficient budgetary and other resources , expertise , procedures and other arrangements . ### the commission may provide support to the member states to ensure that competent authorities and single liaison offices have the adequate resources necessary for the application of this regulation and for the effective use of their powers pursuant to article 8 , including sufficient budgetary and other resources , expertise , procedures and other arrangements .


### require the supply by any natural or legal person , including banks , internet service providers , domain registries and registrars and hosting service providers of any relevant information , data or document in any format or form and irrespective of the medium on which or the place where they are stored , for the purpose of among others identifying and following financial and data flows , or of ascertaining the identity of persons involved in financial and data flows , bank account information and ownership of websites ; ### require the supply by any natural or legal person , including banks , internet service providers , domain registries and registrars and hosting service providers of any relevant information , data or document in any format or form and irrespective of the medium on which or the place where they are stored , for the purpose of among others identifying and following financial and data flows , or of ascertaining the identity of persons involved in financial and data flows , bank account information and ownership of websites ; these provisions must be interpreted and applied in full compliance with the union rules on the protection and processing of personal data ;


### in requests for mutual assistance , the applicant authority shall provide sufficient information to enable a requested authority to fulfil the request , including any necessary evidence obtainable only in the member state of the applicant authority . ### in requests for mutual assistance , the applicant authority shall provide all the relevant information to enable a requested authority to fulfil the request , including any necessary evidence obtainable only in the member state of the applicant authority .


### in its opinion , the applicant authority has not provided sufficient information in accordance with article 12 , ### in its opinion , the applicant authority has not provided all the relevant information in accordance with article 12 ,


### where the trader proposes commitments , the competent authorities concerned may , where appropriate , publish the proposed commitments on their websites and on the commission website to seek the views of other parties concerned and to verify whether those commitments are sufficient to cease the infringement and to compensate consumers . ### where the trader proposes commitments , the competent authorities concerned may , where appropriate , publish the proposed commitments on their websites and on the commission website , to inform the parties concerned .


### the competent authorities concerned may designate one competent authority to take enforcement measures on behalf of the other competent authorities in order to bring about the cessation or to prohibit the widespread infringement , to ensure compensation of consumers or to impose penalties . when designating a competent authority to take enforcement measures the competent authorities shall take into consideration the location of the trader concerned . once the competent authority has been designated to take enforcement measures by the other competent authorities concerned , it shall become competent to act on behalf of the consumers of each such member state as if they were its own consumers . ### the competent authorities concerned may designate one competent authority to take enforcement measures on behalf of the other competent authorities in order to bring about the cessation or to prohibit the widespread infringement , to ensure compensation of consumers or to impose penalties . when designating a competent authority to take enforcement measures , the competent authorities shall take into consideration the location of the trader concerned . when designating a competent authority to take enforcement measures , the competent authorities shall take into consideration the location of the trader concerned , while also taking into consideration the protection of consumer interests . once the competent authority has been designated to take enforcement measures by the other competent authorities concerned , it shall become competent to act on behalf of the consumers of each such member state as if they were its own consumers .


### once a competent authority is designated to take enforcement measures by the other competent authorities concerned , it shall be competent to act on behalf of the consumers of each member state as if they were its own consumers . when designating a competent authority to take enforcement measures , the competent authorities shall take the location of the trader concerned into consideration . ### once a competent authority is designated to take enforcement measures by the other competent authorities concerned , it shall be competent to act on behalf of the consumers of each member state as if they were its own consumers . when designating a competent authority to take enforcement measures the competent authorities shall take the location of the trader concerned into consideration , while consistently taking account of the protection of consumer interests .


### designated bodies and european consumer centres shall participate in the alert mechanism set out in article 34 . member states shall designate consumer organisations and associations , and other entities such as trader associations , with the appropriate expertise and legitimate interest in consumer protection that shall participate in the alert mechanism . member states shall notify the commission of those entities without delay . ### designated bodies and european consumer centres may participate in the alert mechanism set out in article 34 . member states&#160 ; may designate consumer organisations and associations , and other entities such as trader associations , with the appropriate expertise and legitimate interest in consumer protection that may participate in the alert mechanism . in such cases , member states shall notify the commission of those entities without delay .


### the external alerts shall only be ' for information ' . the competent authorities shall not be bound to initiate a procedure or take any other action in response to the alerts and information provided by those entities . entities making external alerts shall ensure that the information provided is correct , up to date and accurate and shall correct the information posted without delay or withdraw it as appropriate . for that purpose , they shall have access to the information they have provided , subject to the limitations referred to in articles 41 and 43 . ### the competent authorities shall not be bound to initiate a procedure or take any other action in response to the alerts and information provided by those external entities . entities making external alerts shall ensure that the information provided is correct , up to date and accurate and shall correct the information posted without delay , update it or withdraw it as appropriate . for that purpose , they shall have access to the information they have provided , subject to the limitations referred to in articles 41 and 43 . if the competent authorities , as a result of such alerts , decide to take further action , they shall inform external entities concerned .


### notwithstanding paragraph 2 , the competent authorities may use and disclose the information necessary : ### notwithstanding paragraph 2 , the competent authorities may use and disclose the information necessary , subject to compliance with the fundamental rights of consumers and union personal data protection and processing law :


### by [ xx / xx / 20xx at the latest , no later than within seven years from its entry into application ] , the commission shall present a report to the european parliament and the council on the application of this regulation . ### by [ xx / xx / 20xx at the latest , no later than within five years from its entry into application ] , the commission shall present a report to the european parliament and the council on the application of this regulation .


### the technology that is necessary to meet the euro 5 limits is already available however the commission concluded in its report to the european parliament and the council on the basis of the comprehensive environmental effect study carried out according to article 23 of regulation no 168 / 2013 of the european parliament and of the council regarding the euro 5 emission step , that the date of application of the euro 5 emission limits for certain l - category vehicles will need to be postponed from 2020 to 2022 to increase the cost beneficial ratio compared to the base line . in addition manufacturers of these vehicles , which are mainly smes , require more lead time to ensure that the transition towards zero emission powertrains , such as electrification can be achieved in a cost effective way . ### the technology that is necessary to meet the euro 5 limits is already available however the commission concluded in its report to the european parliament and the council on the basis of the comprehensive environmental effect study carried out according to article 23 of regulation no 168 / 2013 of the european parliament and of the council regarding the euro 5 emission step , that the date of application of the euro 5 emission limits for certain l - category vehicles will need to be postponed from 2020 to 2022 to increase the cost beneficial ratio compared to the base line . in addition manufacturers of these vehicles , which are mainly smes , require more lead time to ensure that the transition towards zero emission powertrains , such as electrification can be achieved in a cost effective way . however , it is recognised that early transition towards zero emission technology will , where it is possible , have a positive impact on the overall environmental goals of the union .


### the fundamental budgetary principles should be maintained . derogations from those fundamental principles for specific areas such as research , external actions and structural funds should be reviewed and simplified as far as possible , taking into account their continuing relevance , their added - value for the budget , and the burden they impose on stakeholders . ### the fundamental budgetary principles should be maintained . derogations from those fundamental principles for specific areas such as research , external actions and structural funds should be reviewed and simplified as far as possible , taking into account their continuing relevance , their added - value for the budget , and the burden they impose on stakeholders . it should be possible to use structural funds in blending facilities in order to enable the support of projects of high european added value in the field of transport infrastructure in all categories of regions , including the most developed regions and transition regions .


### the principle of transparency , enshrined in article 15 tfeu which requires the institutions to work as openly as possible , implies , in the area of the implementation of the budget , that citizens are able to know where , and for what purpose , funds are spent by the union . such information fosters democratic debate , contributes to the participation of citizens in the union ' s decision - making process and reinforces institutional control and scrutiny over union expenditure . such objectives should be achieved by the publication , preferably using modern communication tools , of relevant information concerning all recipients of union funds which takes into account such all recipients ' legitimate interests of confidentiality and security and , as far as natural persons are concerned , their right to privacy and the protection of their personal data . institutions should therefore adopt a selective approach in the publication of information , in accordance with the principle of proportionality . decisions to publish should be based on relevant criteria in order to provide meaningful information . ### the principle of transparency , enshrined in article 15 tfeu which requires the institutions to work as openly as possible , implies , in the area of the implementation of the budget , that citizens are able to know where , and for what purpose , funds are spent by the union . such information fosters democratic debate , contributes to the participation of citizens in the union ' s decision - making process , reinforces institutional control and scrutiny over union expenditure and makes an exceptional contribution to boosting its credibility . such objectives should be achieved by the publication , preferably using modern communication tools , of relevant information concerning all recipients of union funds which takes into account such all recipients ' legitimate interests of confidentiality and security and , as far as natural persons are concerned , their right to privacy and the protection of their personal data . institutions should therefore adopt a selective approach in the publication of information , in accordance with the principle of proportionality . decisions to publish should be based on relevant criteria in order to provide meaningful information .


### the name and the locality of the recipient and the amount and the purpose of the funds should not be published if it risks endangering the integrity of the recipient as protected by the charter of fundamental rights of the european union or would harm the legitimate commercial interests of the recipient . ### the name and the locality of the recipient and the amount and the purpose of the funds should not be published where there is a proven risk that such publication might compromise the integrity of the recipient as protected by the charter of fundamental rights of the european union or would harm the legitimate commercial interests of the recipient .


### the name and the locality of the recipient and the amount and the purpose of the funds should not be published if it risks endangering the integrity of the recipient as protected by the charter of fundamental rights of the european union or would harm the legitimate commercial interests of the recipient . ### the name and the locality of the recipient and the amount and the purpose of the funds should not be published if it risks endangering the integrity of the recipient as protected , in particular , by the charter of fundamental rights of the european union or would harm the legitimate commercial interests of the recipient .


### for the sake of legal security , the rules regarding the delays when a debit note is to be sent should be defined . ### in order to guarantee legal security and transparency , the rules regarding the delays when a debit note is to be sent should be defined .


### it is important to be able to reinforce the deterrent effect achieved by the exclusion and the financial penalty . in that regard , the deterrent effect should be reinforced by the possibility to publish the information related to the exclusion and / or to the financial penalty , with full respect for the data protection requirements set out in regulation no 45 / 2001 of the european parliament and of the council and in directive 95 / 46 / ec of the european parliament and of the council . this should contribute to ensuring that the same conduct is not repeated . for reasons of legal certainty and in accordance with the principle of proportionality it should be specified in which situations a publication should not take place . in its assessment , the authorising officer responsible should have regard to any recommendation of the panel . as far as natural persons are concerned , personal data should only be published in exceptional cases justified by the seriousness of the conduct or its impact on the union ' s financial interests . ### it is important to be able to reinforce the deterrent effect achieved by the exclusion and the financial penalty . in that regard , the deterrent effect should be reinforced by the possibility to publish the information related to the exclusion and / or to the financial penalty , with full respect for the data protection requirements set out in regulation no 45 / 2001 of the european parliament and of the council and in regulation 2016 / 679 of the european parliament and of the council1a . this should contribute to ensuring that the same conduct is not repeated . for reasons of legal certainty and in accordance with the principle of proportionality it should be specified in which situations a publication should not take place . in its assessment , the authorising officer responsible should have regard to any recommendation of the panel . as far as natural persons are concerned , personal data should only be published in exceptional cases justified by the seriousness of the conduct or its impact on the union ' s financial interests . ________________ 1a regulation 2016 / 679 of the european parliament and of the council of 27 april 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data , and repealing directive 95 / 46 / ec .


### it is appropriate that different cases usually referred to as situations of conflict of interest be identified and treated distinctly . the notion of a ‘ conflict of interest’ should be solely used for cases where an entity or person with responsibilities for budget implementation , audit or control or an official or an agent of a union institution is in such a situation . in cases where an economic operator attempts to unduly influence a procedure or obtain confidential information , this should be treated as grave professional misconduct . in addition , economic operators may be in a situation where they should not be selected to implement a contract because of a professional conflicting interest . for instance , a company should not evaluate a project in which it has participated or an auditor should not be in a position to audit accounts it has previously certified . ### it is appropriate that different cases usually referred to as situations of conflict of interest be identified and treated distinctly . the notion of a ‘ conflict of interest’ should be used for cases where an entity or person with responsibilities for budget implementation , audit or control or an official or an agent of a union institution is in such a situation . all persons and entities potentially subject to a conflict of interest should publish a declaration of interest instead of a declaration of absence of interest . a self - evaluation of a conflict of interest is a conflict of interest in itself . therefore , the evaluation of a conflict of interest should be carried out by an independent third party . in cases where an economic operator attempts to unduly influence a procedure or obtain confidential information , this should be treated as grave professional misconduct . in addition , economic operators may be in a situation where they should not be selected to implement a contract because of a professional conflicting interest . for instance , a company should not evaluate a project in which it has participated or an auditor should not be in a position to audit accounts it has previously certified . there should be regular publication of a track record of all cases of conflict of interest and revolving door identified by the union institutions .


### in order to ensure that the european union programme for employment and social innovation provides swiftly adequate resources to support changing political priorities , the indicative shares for each of the three axis and the minimum percentages for each of the thematic priorities within the individual axis should allow for a greater flexibility . this should improve the management of the programme and allow focussing budgetary resources on actions producing better employment and social results . ### in order to ensure that the european union programme for employment and social innovation provides swiftly adequate resources to support changing political priorities , the indicative shares for each of the three axis and the minimum percentages for each of the thematic priorities within the individual axis should allow for a greater flexibility , while maintaining an ambitious deployment rate for eures cross - border partnerships . this should improve the management of the programme and allow focussing budgetary resources on actions producing better employment and social results .


### in order to increase the efficiency of the intervention , a blending facility or blending facilities may be established under the connecting europe facility . such blending facilities should finance blending operations which are actions combining non - reimbursable forms of support and / or financial instruments from the union budget , including combination of cef equity and cef debt financial instruments , and financing from eib group development or other finance institutions as well as investors . ### in order to increase the efficiency of the intervention , blending facilities may be established under the connecting europe facility . such blending facilities could finance blending operations which are actions combining non - reimbursable forms of support , such as member states ' budget and cef grants , and / or financial instruments from the union budget , including combinations of cef equity and cef debt financial instruments and financing from the eib group , or national promotional banks development or other finance institutions as well as investors and / or private financial support , including both direct and indirect financial contributions , including through public private partnerships .


### ‘ blending operation’ means an action carried out within a blending facility which combines non - repayable forms of support and / or financial instruments from the eu budget and financial instruments from development or other public finance institutions as well as from commercial finance institutions and investors . blending operations may include preparatory action leading to potential investments from finance institutions ; ### ‘ blending operation’ means an action carried out within a blending facility which combines non - repayable forms of support and / or financial instruments from the eu budget and financial instruments from development or other public finance institutions as well as from commercial finance institutions and investors , notwithstanding the rule contained in article 201 stating that only public law bodies or bodies with a public service mission are to be entrusted with the implementation of the union budget . blending operations may include preparatory action leading to potential investments from finance institutions ;


### ‘ blending facility’ means a facility established as a cooperation framework between the commission and development or other public finance institutions as well as commercial finance institutions and investors which aims at achieving certain union priority objectives and policies in using blending operations and other individual actions ; ### ‘ blending facility’ means a facility established as a cooperation framework between the commission and development or other public finance institutions as well as commercial finance institutions and investors which aims at achieving certain union priority objectives and policies in using blending operations and other individual actions , without leading to the privatisation of profits or the socialisation of losses , notwithstanding the rule contained in article 201 stating that only public law bodies or bodies with a public service mission are to be entrusted with the implementation of the union budget ;


### personal data collected pursuant to this regulation shall be processed in accordance with directive 95 / 46 / ec and regulation no 45 / 2001 . a candidate or tenderer in a procurement procedure , an applicant in a grant award procedure , an expert in a procedure for the selection of experts , an applicant in a contest for prizes or an entity or person participating in a procedure for implementing union funds in accordance with point of article 61as well as a beneficiary , a contractor , a remunerated external expert or any person or entity that receives prizes or implements union funds pursuant to point of article 61 shall be informed accordingly . _________________ 28 oj l 281 , 23 . 11 . 1995 , p . 31 . ### personal data collected pursuant to this regulation shall be processed in accordance with regulation 2016 / 679 and regulation no 45 / 2001 . a candidate or tenderer in a procurement procedure , an applicant in a grant award procedure , an expert in a procedure for the selection of experts , an applicant in a contest for prizes or an entity or person participating in a procedure for implementing union funds in accordance with point of article 61as well as a beneficiary , a contractor , a remunerated external expert or any person or entity that receives prizes or implements union funds pursuant to point of article 61 shall be informed accordingly .


### where the budget is implemented under shared implementation the commission and the member states shall respect the principles of sound financial management , transparency and non - discrimination and shall ensure the visibility of union action . to this end , the commission and the member states shall fulfil their respective control and audit obligations and assume the resulting responsibilities laid down in this regulation . complementary provisions shall be laid down in sector - specific rules . ### where the budget is implemented under shared implementation the commission and the member states shall respect the principles of sound financial management , transparency and non - discrimination and shall ensure the visibility of union action . to this end , the commission and the member states shall fulfil their respective control and audit obligations and assume the resulting responsibilities laid down in this regulation . complementary provisions shall be laid down in sector - specific rules . the sector - specific rules provide the framework for ensuring that the principles of subsidiarity and of proportionality are applied . the principle of proportionality is to be strengthened by setting minimum requirements and enhancing flexibility , by providing for the use of discretion and the accountability of the member states . member states shall provide for the detail of the funding procedures in accordance with the framework laid down in this regulation .


### the commission may rely in full or in part on assessments made by itself or other entities , including donors , insofar as these assessments were made with regard to conditions equivalent to those set out in this regulation for the applicable method of budget implementation . to this end , the commission shall promote the recognition of internationally accepted standards or international best practices . ### the commission may rely in full or in part on assessments made by itself or other entities , including donors , insofar as these assessments were made with regard to conditions equivalent to those set out in this regulation for the applicable method of budget implementation . to this end , the commission shall promote the recognition of internationally accepted standards or international best practices . in case of indirect implementation by member state organisations as referred to in article 151a , the commission shall rely in full on assessments made by the relevant member state organisation .


### the obligations set out in this paragraph shall be without prejudice to agreements concluded with the eib group , international organisations and third countries . with regard to the management declaration , such agreements shall include at least the obligation of those entities to provide the commission annually with a statement that , during the financial year concerned , the union contribution was used and accounted for in compliance with the requirements set out in paragraphs 3 and 4 of article 149 and with the obligations laid down in such agreements . such statement may be incorporated in the final report if the action implemented is limited to 18 months . ### the obligations set out in this paragraph shall be without prejudice to agreements concluded with the eib group , member state organisations , international organisations and third countries . with regard to the management declaration , such agreements shall include at least the obligation of those entities to provide the commission annually with a statement that , during the financial year concerned , the union contribution was used and accounted for in compliance with the requirements set out in paragraphs 3 and 4 of article 149 and with the obligations laid down in such agreements . such statement may be incorporated in the final report if the action implemented is limited to 18 months .


### beneficiaries may declare personnel costs for the work carried out by volunteers under an action or work programme , on the basis of unit costs authorised in accordance with paragraphs 1 to 6 . ### beneficiaries may declare personnel costs for the work carried out by volunteers under an action or work programme , on the basis of unit costs authorised in accordance with paragraphs 1 to 6 . the engagement of volunteers is to be understood as unpaid , non - compulsory activity : time that individuals give without pay to activities performed through a not - for - profit organisation .


### the first subparagraph shall not apply to public bodies and the international organisations referred to in article 151 . ### the first subparagraph shall not apply to public bodies and bodies with a public service mission and assessed in accordance with article 149 , international organisations and member state organisations referred to in articles 151 and 151a respectively .


### the authorising officer responsible may , depending on a risk assessment , waive the obligation to verify the operational capacity of public bodies or international organisations . ### the authorising officer responsible may , depending on a risk assessment , waive the obligation to verify the operational capacity of public bodies , member state organisations or international organisations .


### the commission shall ensure a harmonised management of financial instruments in particular in the area of accounting , reporting , monitoring and financial risk management . ### the commission shall ensure a harmonised and simplified management of financial instruments in particular in the area of accounting , reporting , monitoring and financial risk management .


### for emergency , post - emergency or thematic actions , the commission may create , after informing the european parliament and the council , trust funds under an agreement concluded with other donors . the constitutive act of each trust fund shall define the objectives of the trust fund . the commission decision establishing the trust fund shall include a description of the fund ' s objectives , the justification for its creation in accordance with paragraph 3 , an indication of its duration and the preliminary agreements with other donors . ### for emergency , post - emergency or thematic external actions , the commission may create , after informing the european parliament and the council , trust funds under an agreement concluded with other donors . the constitutive act of each trust fund shall define the objectives of the trust fund . the commission decision establishing the trust fund shall include a description of the fund ' s objectives , the justification for its creation in accordance with paragraph 3 , an indication of its duration and the preliminary agreements with other donors .


### a delegated act adopted pursuant to article 33 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of two 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 two months at the initiative of the european parliament or of the council . ' ### in article 34 , paragraph 5 is replaced by the following : “5 . a delegated act adopted pursuant to article 32 and article 33 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of two 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 two months at the initiative of the european parliament or of the council . '


### the progress axis shall support actions in one or more of the thematic sections listed in points , and . employment , in particular to fight youth unemployment ; social protection , social inclusion and the reduction and prevention of poverty ; working conditions . ” ### “1 . the progress axis shall support actions in one or more of the thematic sections listed in points , and . over the entire period of the programme , the indicative breakdown of the allocation set out in point of article 5 between the different sections shall respect the following minimum percentages : employment , in particular to fight youth unemployment : 20 % ; social protection , social inclusion and the reduction and prevention of poverty : 45 % ; working conditions : 7 % . any remainder shall be allocated to one or more of the thematic sections referred to in points , , or , or to a combination of them . ”


### ' article 19 thematic sections and financing the eures axis shall support actions in one or more of the thematic sections listed in points , and : transparency of job vacancies , applications and any related information for applicants and employers ; development of services for the recruitment and placing of workers in employment through the clearance of job vacancies and applications at union level , in particular targeted mobility schemes ; cross - border partnerships ### ' article 19 thematic sections and financing the eures axis shall support actions in one or more of the thematic sections listed in points , and . over the entire period of the programme , the indicative breakdown of the allocation set out in point of article 5 between the different sections shall respect the following minimum percentages : transparency of job vacancies , applications and any related information for applicants and employers : 15 % ; development of services for the recruitment and placing of workers in employment through the clearance of job vacancies and applications at union level , in particular targeted mobility schemes : 15 % ; cross - border partnerships : 18 % . any remainder shall be allocated to one or more of the thematic sections referred to in points , , or , or to a combination of them . ”


### ' article 25 thematic sections and financing the microfinance and social entrepreneurship axis shall support actions in one or more of the thematic sections listed in points and : microfinance for vulnerable groups and micro - enterprises ; social entrepreneurship . ' ### ' article 25 thematic sections and financing the microfinance and social entrepreneurship axis shall support actions in one or more of the thematic sections listed in points and . over the entire period of the programme , the indicative breakdown of the allocation set out in point of article 5 between the different sections shall respect the following minimum percentages : microfinance for vulnerable groups and micro - enterprises : 35 % ; social entrepreneurship : 35 % . any remainder shall be allocated to the thematic sections referred to in points or or to a combination of them . ”


### ' article 32 work programmes the commission shall adopt implementing acts laying down work programmes covering the three axes . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 36 . the work programmes shall , where relevant , be for a three - year rolling period and shall contain a description of the actions to be financed , the procedures for selecting actions to be supported by the union , the geographic coverage , the target audience and an indicative implementation time frame . the work programmes shall also include an indication of the amount allocated to each specific objective and shall reflect the re - allocation of funds in accordance with article 33 . the work programmes shall reinforce the coherence of the programme by indicating the links between the three axes . ' ### article 32 is replaced by the following : ' article 32 work programmes the commission shall adopt delegated acts in accordance with article 34 , laying down work programmes covering the three axes . the work programmes shall , where relevant , be for a three - year rolling period and shall contain a description of the actions to be financed , the procedures for selecting actions to be supported by the union , the geographic coverage , the target audience and an indicative implementation time frame . the work programmes shall also include an indication of the amount allocated to each specific objective , as well as annual allocations to the three axes of the programme and to the sections thereof , and shall reflect the re - allocation of funds in accordance with article 33 . the work programmes shall reinforce the coherence of the programme by indicating the links between the three axes . 2 . in order to ensure greater transparency and accountability , the competent committee of the european parliament may invite the commission to appear before the committee to discuss the draft work programme referred to in paragraph 1 before the commission’s adoption of the delegated act laying down the work programme . '


### article 33 is deleted . ### article 33 is replaced by the following : “article 33 re - allocation of funds between the axes and to the individual thematic sections within the axes the commission shall be empowered to adopt delegated acts , in accordance with article 34 , re - allocating funds between axes and to individual thematic sections within each axis where developments in the socio - economic context so require . the re - allocation of funds to thematic sections within each axis shall be reflected in the work programmes referred to in article 32 . ”


### the power to adopt delegated acts referred to in article 33 shall be conferred on the commission for a period of seven years from 1 january 2014 . ### in article 34 , paragraph 2 is replaced by the following : “2 . the power to adopt delegated acts referred to in articles 32 and 33 shall be conferred on the commission for a period of seven years from 1 january 2014 . ”


### the delegation of power referred to in article 33 may be revoked at any time by the european parliament or by the council . a decision to revoke 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 . ### in article 34 , paragraph 3 is replaced by the following : “3 . the delegation of power referred to in articles 32 and 33 may be revoked at any time by the european parliament or by the council . a decision to revoke 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 . ”


### selecting operations and fixing the amount of support and presenting the proposals to the body responsible for final verification of eligibility before approval ; ### selecting operations and fixing the amount of support and , where relevant , presenting the proposals to the body responsible for final verification of eligibility before approval ;


### a publicly - owned bank or financial institution , established as a legal entity carrying out financial activities on a professional basis , which fulfils all the following conditions : ### a publicly - owned bank or institution , established as a legal entity carrying out financial activities on a professional basis , which fulfils all the following conditions :


### –operates on a non - profit maximisation basis in order to ensure a long - term financial sustainability ; ### –operates without primarily focussing on maximising profits in order to ensure a long - term financial sustainability for its operations ;


### –is subject to the supervision of an independent authority in accordance with national law . ### –is subject to the supervision of an independent authority in accordance with applicable law .


### “when implementing the financial instrument , the bodies referred to in points to of the first subparagraph shall ensure compliance with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria , as set out in eu legislation including commission recommendations and communications or or any formal notice by the latter . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ” ### “when implementing the financial instrument , the bodies referred to in points to of the first subparagraph shall comply with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria , as set out in eu legislation . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ”


### when implementing financial instruments under point of article 38 , the bodies referred to in paragraph 2 of this article shall ensure compliance with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in eu legislation including commission recommendations and communications or any formal notice by the latter . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ### when implementing financial instruments under point of article 38 , the bodies referred to in paragraph 5 of this article shall comply with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in eu legislation . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements .


### member states may use esi funds to provide a contribution to financial instruments referred to in point of article 38 to attract additional private sector investment . ### managing authorities in the respective member states may use esi funds to provide a contribution to financial instruments referred to in point of article 38 if this is aimed to attract additional private sector investment and continues to contribute to esi funds objectives and the union strategy for smart , sustainable and inclusive growth .


### the contribution referred to in paragraph 1 shall not exceed 25 % of the total support provided to final recipients . in the less developed regions referred to in point of article 120 , the financial contribution may exceed 25% where duly justified by the ex - ante assessment , but shall not exceed 50% . the total support referred to in this paragraph shall comprise the total amount of new loans and guaranteed loans as well as equity and quasi - equity investments provided to final recipients . the guaranteed loans referred to in this paragraph shall only be taken into account to the extent that esi funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment covering a multiple amount of new loans . ### the contribution referred to in paragraph 1 shall not exceed 15 % of the total support provided to final recipients . in the less developed and transition regions referred to in point of article 120 , the financial contribution may exceed 15% where duly justified by the ex - ante assessment or preparatory assessment undertaken by the eib under paragraph 3 of this article , but shall not exceed 30% . the total support referred to in this paragraph shall comprise the total amount of new loans and guaranteed loans as well as equity and quasi - equity investments provided to final recipients . the guaranteed loans referred to in this paragraph shall only be taken into account to the extent that esi funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment covering a multiple amount of new loans .


### reporting by managing authorities under article 46 on operations comprising financial instruments under this article shall be based on the information kept by the eib for the purposes of its reporting pursuant to article 16 and of the efsi regulation , supplemented by the additional information required under article 46 . ### reporting by managing authorities under article 46 on operations comprising financial instruments under this article shall be based on the information kept by the eib for the purposes of its reporting pursuant to article 16 and of the efsi regulation , supplemented by the additional information required under article 46 . requirements under this paragraph shall allow for uniform reporting conditions in accordance with article 46 of this regulation .


### entrust implementation tasks to a financial institution , which shall either open a fiduciary account in its name and on behalf of the managing authority or set up a separate block of finance within the financial institution for programme contribution . in the case of a separate block of finance , an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the financial institution . the assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity . ### entrust implementation tasks to a body , which shall either open a fiduciary account in its name and on behalf of the managing authority or set up a separate block of finance within the financial institution for programme contribution . in the case of a separate block of finance , an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the financial institution . the assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity .


### the bodies referred to in paragraph 2 of this article , when implementing funds of funds , may further entrust part of the implementation to financial intermediaries provided that those bodies ensure under their responsibility that the financial intermediaries satisfy the criteria laid down in articles 201 and 202 and of the financial regulation . the financial intermediaries shall be selected on the basis of open , transparent , proportionate and non - discriminatory procedures , avoiding conflict of interest . ### the bodies referred to in paragraph 5 of this article , when implementing funds of funds , may further entrust part of the implementation to financial intermediaries provided that those bodies ensure under their responsibility that the financial intermediaries satisfy the criteria laid down in articles 201 and 202 and of the financial regulation . the financial intermediaries shall be selected on the basis of open , transparent , proportionate and non - discriminatory procedures , avoiding conflict of interest .


### in case of financial instruments referred to in point of article 38 which take the form of a guarantee instrument , esi funds may contribute to junior and / or mezzanine tranches of portfolios of loans covered also under the efsi’s union guarantee . ### in case of financial instruments referred to in point of article 38 which take the form of a guarantee instrument , member states may decide that esi funds contribute , as appropriate , to different tranches of portfolios of loans covered also under the efsi ' s union guarantee . resources paid back to financial instruments from investments or from the release of resources committed for guarantee contracts , including capital repayments and gains and other earnings or yields , such as interest , guarantee fees , dividends , capital gains or any other income generated by investments , which are attributable to the contribution from the esi funds shall be re - used in accordance with the objectives of the respective esi funds to support actions and final recipients consistent with the programme from which such contributions are made .


### for the erdf , the esf , the cohesion fund and the emff , a separate priority , and for the eafrd , a separate type of operation , with a co - financing rate of up to 100% may be established within a programme to support operations implemented through financial instruments referred to in point of article 38 . ### for the erdf , the esf , the cohesion fund and the emff , a separate priority , and for the eafrd , a separate type of operation , with a co - financing rate according to the determination of co - financing rates in article 120 with an increase of up to 15% may be established within a programme to support operations implemented through financial instruments referred to in point of article 38 .


### the commission shall be empowered to adopt an implementing act concerning the models for the control reports and the annual audit reports of the first sub - paragraph of this paragraph . ### the commission shall be empowered to adopt an implementing act concerning the models for the control reports and the annual audit reports of the third sub - paragraph of this paragraph .


### support from the esi funds to financial instruments invested in final recipients and gains and other earnings or yields , such as interest , guarantee fees , dividends , capital gains or any other income generated by those investments , which are attributable to the support from the esi funds , may be used for differentiated treatment of private investors , as well as the eib when using the eu guarantee pursuant to regulation 2015 / 1017 . such differentiated treatment shall be justified by the need to attract private counterpart resources . ### support from the esi funds to financial instruments invested in final recipients and gains and other earnings or yields , such as interest , guarantee fees , dividends , capital gains or any other income generated by those investments , which are attributable to the support from the esi funds , may be used for differentiated treatment of investors operating under the market economy principle , as well as the eib when using the eu guarantee pursuant to regulation 2015 / 1017 . such differentiated treatment shall be justified by the need to attract private counterpart resources and leverage public funding .


### the differentiated treatment shall not exceed what is necessary to create the incentives for attracting private counterpart resources . it shall not over - compensate private investors and the eib when using the eu guarantee according to regulation 2015 / 1017 . the alignment of interest shall be ensured through an appropriate sharing of risk and profit . ### the differentiated treatment shall not exceed what is necessary to create the incentives for attracting private counterpart resources . it shall not over - compensate investors operating under the market economy principle and the eib when using the eu guarantee according to regulation 2015 / 1017 . the alignment of interest shall be ensured through an appropriate sharing of risk and profit .


### actions to disseminate information , support networking , carry out communication activities , raise awareness and promote cooperation and exchange of experience , including with third countries ; ### point f is replaced by the following : “actions to disseminate information , support networking , carry out communication activities on the results and successes achieved with support of esi funds , raise awareness and promote cooperation and exchange of experience , including with third countries ; ”


### this article shall apply to operations which generate net revenue after their completion . for the purposes of this article ‘ net revenue’ means cash in - flows directly paid by users for the goods or services provided by the operation , such as charges borne directly by users for the use of infrastructure , sale or rent of land or buildings , or payments for services less any operating costs and replacement costs of short - life equipment incurred during the corresponding period . operating cost - savings generated by the operation shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies . ### in article 61 , the first subparagraph of paragraph 1 is replaced by the following : “this article shall apply to operations which generate net revenue after their completion . for the purposes of this article ‘ net revenue’ means cash in - flows directly paid by users for the goods or services provided by the operation , such as charges borne directly by users for the use of infrastructure , sale or rent of land or buildings , or payments for services less any operating costs and replacement costs of short - life equipment incurred during the corresponding period . operating cost - savings generated by the operation , with the exception of cost - savings resulting from the implementation of energy efficiency measures , shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies . ”


### “the erdf and the esf may finance , in a complementary manner and subject to a limit of 10 % of union funding for each priority axis of an operational programme , a part of an operation for which the costs are eligible for support from the other fund on the basis of rules applied to that fund , provided that such costs are necessary for the satisfactory implementation of the operation and are directly linked to it . ” ### “the erdf and the esf may finance , in a complementary manner and subject to a limit of 10 % of union funding for each priority axis of an operational programme , a part of an operation for which the costs are eligible for support from the other fund on the basis of eligibility rules applied to that fund , provided that such costs are necessary for the satisfactory implementation of the operation and are directly linked to it . ”


### “1 . operations for which the total eligible expenditure does not exceed eur 200 000 for the erdf and the cohesion fund , eur 150 000 for the esf or eur 100 000 for the emff shall not be subject to more than one audit by either the audit authority or the commission prior to the submission of the accounts for the accounting year in which the operation is completed . other operations shall not be subject to more than one audit per accounting year by either the audit authority or the commission prior to the submission of the accounts for the accounting year in which the operation is completed . operations shall not be subject to an audit by the commission or the audit authority in any year if there has already been an audit in that year by the european court of auditors , provided that the results of the audit work performed by the european court of auditors for such operations can be used by the audit authority or the commission for the purpose of fulfilling their respective tasks . ” ### in article 148 , paragraph 1 is replaced by the following : “1 . operations for which the total eligible expenditure does not exceed eur 300 000 for the erdf and the cohesion fund , eur 200 000 for the esf or eur 150 000 for the emff shall not be subject to more than one audit by either the audit authority or the commission prior to the submission of the accounts for the accounting year in which the operation is completed . other operations shall not be subject to more than one audit per accounting year by either the audit authority or the commission prior to the submission of the accounts for the accounting year in which the operation is completed . operations shall not be subject to an audit by the commission or the audit authority in any year if there has already been an audit in that year by the european court of auditors , provided that the results of the audit work performed by the european court of auditors for such operations can be used by the audit authority or the commission for the purpose of fulfilling their respective tasks . ”


### “where a call for proposal is launched prior to the entry into force of regulation xxx / yyy amending the present regulation the managing authority may decide not to apply the obligation set out in article 67 for a maximum of 6 months starting from the date of entry into force of regulation xxx / yyy . where the document setting out the conditions for support is provided to the beneficiary within a period of 6 months starting from the date of entry into force of regulation xxx / yyy the managing authority may decide not to apply those amended provisions . ” ### “the managing authority may decide not to apply the obligation set out in article 67 for a maximum of 12 months starting from the date of entry into force of regulation xxx / yyy . in duly justified cases , the managing authority or monitoring committee for the programmes under the european territorial cooperation goal may decide to extend the 12 - month transitional period until programme closure . it shall notify the commission of such decision before the expiration of the transitional period . the first and second subparagraphs shall not apply to grants and repayable assistance supported by the esf for which the public support does not exceed eur 50 000 . ”


### no later than three months after completion of an operation , the beneficiary shall put up a permanent plaque or billboard of significant size at a location readily visible to the public for each operation that fulfils the following criteria : ### in subsection 2 . 2 , the introductory part of point 5 is replaced by the following : “5 . no later than three months after completion of an operation , the beneficiary shall put up a permanent plaque or billboard of significant size at a location readily visible to the public of each operation that fulfils the following criterion : ”


### financial audit shall exclusively aim at verifying that the conditions for reimbursement by the commission on the basis of standard scales of unit costs and lump sums have been fulfilled . ### in paragraph 1 , the third subparagraph is replaced by the following : ‘ financial audit shall exclusively aim at verifying that the conditions for reimbursement by the commission on the basis of standard scales of unit costs and lump sums have been fulfilled , without , however , delaying the steps in the funding allocation process or creating complications at this stage for fund managers or beneficiaries . ’


### in addition to the methods stipulated in article 67 of regulation no 1303 / 2013 , where the public support for grants and repayable assistance does not exceed eur 100 000 , the amounts referred to in article 67 , and of regulation no 1303 / 2013 may be established on a case - by - case basis by reference to a draft budget agreed ex ante by the managing authority . ### paragraph 3 is replaced by the following : ‘ 3 . in addition to the methods stipulated in article 67 of regulation no 1303 / 2013 , where the public support for grants and repayable assistance does not exceed eur 150 000 , the amounts referred to in article 67 , and of regulation no 1303 / 2013 may be established on a case - by - case basis by reference to a draft budget agreed ex ante by the managing authority . ’


### the data on participants under the two first above indicators will be provided in the annual implementation reports as specified in article 50 of regulation no 1303 / 2013 . the data on participants under the last three above indicators will be provided in the reports as specified in article 50 of regulation no 1303 / 2013 . the data of the five indicators above shall be collected based on a representative sample of participants within each investment priority . internal validity shall be ensured in such a way that the data can be generalised at the level of the investment priority . ### the data on participants under the two above indicators will be provided in the annual implementation reports as specified in article 50 of regulation no 1303 / 2013 . the data of the two indicators above shall be collected based on a representative sample of participants within each investment priority . internal validity shall be ensured in such a way that the data can be generalised at the level of the investment priority .