### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , a securities and markets stakeholder group should be established for that purpose , representing in balanced proportions community financial market participants , their employees , and consumers and other retail users of financial services , including smes . the securities and markets stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . before adopting draft technical standards , guidelines and recommendations the authority should carry out an impact study . for reasons of efficiency , a securities and markets stakeholder group should be established for that purpose , representing in balanced proportions union financial market participants , their employees , academia and consumers and other retail users of financial services , including smes . the securities and markets stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or by eu legislation .


### within three months of receipt of the draft standards , the commission shall decide whether to endorse the draft standards . the commission may extend that period by one month . the commission may endorse the draft standards only in part or with amendments where the community interest so requires . ### within three months of receipt of the draft technical standards , the commission shall decide whether to endorse , reject or amend them . the commission may extend that period by one month . the commission shall inform the european parliament and the council of its decision , stating the reasons .


### where the commission has adopted a decision pursuant to paragraph 1 , the authority may adopt individual decisions requiring competent authorities to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial market participants and competent authorities satisfy the requirements laid down in that legislation . ### where the existence of an emergency situation is declared pursuant to paragraph 1 , the authority shall adopt individual decisions necessary to ensure that competent authorities to take the necessary action with special regard to the respective impact on the budget of the member states and in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial market participants and competent authorities satisfy the requirements laid down in that legislation .


### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to competent authorities or financial market participants . ### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , in order to prevent a possible ' race to the bottom ' of national authorities concerning deliberately relaxing supervisory standards to increase the competitiveness of their financial centres and to ensuring the common , uniform and consistent application of union legislation , issue guidelines and recommendations addressed to competent authorities or financial market participants .


### in order to guarantee its full autonomy and independence , the authority should be granted an autonomous budget with revenues mainly from obligatory contributions from national supervisory authorities and from the general budget of the european union . the community budgetary procedure should be applicable as far as the community contribution is concerned . the auditing of accounts should be undertaken by the court of auditors . ### in order to guarantee its full autonomy and independence , the authority should be granted an autonomous budget with revenues mainly from obligatory contributions from national supervisory authorities , from the general budget of the european union through a separate budget heading within it . the european union budgetary procedure should be applicable as far as the european union contribution is concerned . the auditing of accounts should be undertaken by the court of auditors .


### given the globalisation of financial services and the increased importance of international standards , the authority should foster the dialogue and cooperation with supervisors outside the community . it shall fully respect the existing roles and competences of the european institutions in relations with authorities outside the community and in international forums . ### given the globalisation of financial services and the increased importance of international standards , the authority should represent the european union in the dialogue and cooperation with supervisors outside the union .


### without prejudice to the powers of the commission under article 226 of the treaty , where a competent authority does not comply with the decision of the authority referred to in paragraph 2 within the period laid down therein , the authority may , where the relevant requirements laid down in the legislation referred to in article 1 are directly applicable to financial market participants , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under that legislation , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a competent authority does not comply with the decision of the authority shall , pursuant to the relevant requirements laid down in the legislation referred to in article 1 adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under that legislation , including the cessation of any practice .


### without prejudice to the powers of the commission under article 226 of the treaty , where a competent authority does not comply with the decision of the authority , and thereby fails to ensure that a financial market participant complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under community law , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a competent authority does not comply with the decision of the authority , and thereby fails to ensure that a financial market participant complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority shall adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law , including the cessation of any practice .


### the authority shall act within the scope of directive 97 / 9 / ec , directive 98 / 26 / ec , directive 2001 / 34 / ec , directive 2002 / 47 / ec , directive 2002 / 87 / ec , directive 2003 / 6 / ec , directive 2003 / 71 / ec , directive 2004 / 25 / ec , directive 2004 / 39 / ec , directive 2004 / 109 / ec , directive 2005 / 60 / ec , directive 2009 / 65 / ec , directive 2002 / 65 / ec , directive 2006 / 49 / ec , directive … [ future aifm directive ] , and regulation … [ future cra regulation ] , including all directives , regulations , and decisions based on these acts , and of any further community act which confers tasks on the authority . ### the authority shall act within the scope of directive 97 / 9 / ec , directive 98 / 26 / ec , directive 2001 / 34 / ec , directive 2002 / 47 / ec , directive 2002 / 87 / ec , directive 2003 / 6 / ec , directive 2003 / 71 / ec , directive 2004 / 39 / ec , directive 2004 / 109 / ec , directive 2005 / 60 / ec , directive 2009 / 65 / ec , directive 2002 / 65 / ec , directive 2006 / 49 / ec , directive … [ future aifm directive ] , and regulation … [ future cra regulation ] , including all directives , regulations , and decisions based on these acts , and of any further union act which confers tasks on the authority .


### in areas not covered by technical standards , the authority should have the power to issue non - binding guidelines and recommendations on the application of community legislation . in order to ensure transparency and strengthen compliance by national supervisory authorities with those guidelines and recommendations , national authorities should be obliged to state their reasons where they do not comply with those guidelines and recommendations . ### in areas not covered by technical standards , the authority should have the power to issue guidelines and recommendations on the application of eu legislation . in order to ensure transparency and strengthen compliance by national supervisory authorities with those guidelines and recommendations , national authorities should be obliged to state their reasons where they do not comply with those guidelines and recommendations publicly in order to be fully transparent with market participants . in areas not covered by technical standards , the authority should establish and promulgate best practices .


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by union law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union concerning technical standards in financial services .


### the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt on its own initiative implementing measures under comitology procedures at level 2 of the lamfalussy structure as laid out in the relevant community legislation . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the community acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities . ### the commission should endorse those draft technical standards in order to give them binding legal effect . they will be subject to amendment if , for example , they are incompatible with union law , do not respect the principle of proportionality or run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expeditious adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement .


### proposal for a regulation of the european parliament and of the council establishing a european securities and markets authority ### proposal for a regulation of the european parliament and of the council establishing a european supervisory authority


### without prejudice to the powers laid down in article 9 , where a competent authority disagrees on the procedure or content of an action or inaction by another competent authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by competent authorities from more than one member state , the authority , at the request of one or more of the competent authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 . ### without prejudice to the powers laid down in article 9 , where a competent authority disagrees on the procedure or content of an action or inaction by another competent authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by competent authorities from more than one member state , the authority , on its own initiative or at the request of one or more of the competent authorities concerned , shall take the lead in assisting the authorities in reaching an agreement in accordance with the procedure set out in paragraphs 2 to 4 .


### without prejudice to the competences of the community institutions , the authority may develop contacts with supervisory authorities from third countries . it may enter into administrative arrangements with international organisations and the administrations of third countries . ### the authority shall develop contacts with supervisory authorities from third countries . it may enter into administrative arrangements with international organisations and the administrations of third countries .


### the authority and the competent authorities shall provide the commission with all necessary information . ### the competent authorities shall provide the authority with all necessary information .


### without prejudice to the powers of the commission under article 226 of the treaty , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the competent authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial market participants , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under community law including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the competent authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority shall , pursuant to the legislation referred to in article 1 , , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice .


### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely in a joint committee of european supervisory authorities and reach common positions where appropriate . the joint committee of european supervisory authorities should assume all of the functions of the joint committee on financial conglomerates . where relevant , acts also falling within the area of competence of the european insurance and occupational pensions authority or the european banking authority should be adopted in parallel by the european supervisory authorities concerned . ### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely through the european supervisory authorities joint committee and reach common positions where appropriate . the joint committee should coordinate the functions of the three european supervisory authorities in relation to financial conglomerates . where relevant , acts also falling within the area of competence of the european supervisory authority or the european supervisory authority should be adopted in parallel by the european supervisory authorities concerned . the joint committee should be chaired for a 12 - month term on a rotating basis by the chairpersons of the three european supervisory authorities . the chairperson of the joint committee should be a vice - chair of the esrb . the joint committee should have a permanent secretariat , staffed on secondment from the three european supervisory authorities , to allow for informal information - sharing and the development of a common cultural approach across the three european supervisory authorities .


### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets , investor protection or the stability of the whole or part of the financial system in the union , the esrb , upon its own initiative or following a request by the authority , the european parliament , the council or the commission , may issue a warning declaring the existence of an emergency situation for the purposes of this regulation , in order to enable the authority without further requirements to adopt the individual decisions referred to in paragraph 3 .


### the board of supervisors shall act on the basis of qualified majority of its members , as defined in article 205 of the treaty , for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi . ### the board of supervisors shall act on the basis of simple majority of its members , according to the principle where each member has one vote . for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi and by way of derogation from the first sentence of this subparagraph , the board of supervisors shall take decisions on the basis of a qualified majority of its members , as defined in article 16 of the treaty on european union .


### the joint committee shall serve as a forum in which the authority shall cooperate regularly and closely and ensure cross - sectoral consistency with the european insurance and occupational pensions authority and the banking authority . ### the joint committee shall serve as a forum in which the authority shall cooperate regularly and closely and ensure cross - sectoral consistency and learning with the european banking authority and the european insurance and occupational pensions authority , in particular on : – financial conglomerates ; – accounting and auditing ; – micro - prudential analyses for financial stability ; – retail investment products ; – anti - money laundering measures ; and – information exchange with the esrb and development of the relationship between the esrb and the european supervisory authorities .


### without prejudice to the powers of the commission under article 226 of the treaty , where a competent authority does not comply with the decision of the authority , and thereby fails to ensure that a financial market participant complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under community law , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision of the authority , and thereby fails to ensure that a financial market participant complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision , in accordance with the procedure laid down in article 9 , addressed to a financial market participant requiring the necessary action to comply with its obligations under union law , including the cessation of any practice .


### where the commission has adopted a decision pursuant to paragraph 1 , the authority may adopt individual decisions requiring competent authorities to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial market participants and competent authorities satisfy the requirements laid down in that legislation . ### where the existence of an emergency situation is declared pursuant to paragraph 1 , the authority shall adopt individual decisions necessary to ensure that competent authorities to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial market participants and competent authorities satisfy the requirements laid down in that legislation .


### where the commission has adopted a decision pursuant to paragraph 1 , the authority may adopt individual decisions requiring competent authorities to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial market participants and competent authorities satisfy the requirements laid down in that legislation . ### where the existence of an emergency situation is declared pursuant to paragraph 1 , the authority shall adopt individual decisions necessary to ensure that competent authorities take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial market participants and competent authorities satisfy the requirements laid down in that legislation .


### the competent authorities shall make every effort to comply with those guidelines and recommendations . ### within two months of the issuance of a guideline or recommendation , each competent authority shall decide whether it intends to comply with that guideline or recommendation . in the event that it intends not to , it shall inform the authority , stating reasons . the authority shall publish those reasons .


### where the competent authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with community law . ### where the competent authority has not complied with union law within the ten working days set out in paragraph 3 of this article from receipt of the authority ' s recommendation , the authority shall take a decision requiring the competent authority to take the action necessary to comply with union law .


### the securities and markets stakeholder group shall be composed of 30 members , representing in balanced proportions community financial market participants , their employees as well as consumers , investors and users of financial services . ### the securities and markets stakeholder group shall be composed of 30 members , representing in balanced proportions eu financial market participants and users of financial services . not less than 5 of the members shall be independent top - ranking academics .


### the authority shall have its seat in paris . ### the authority shall have its seat in frankfurt .


### without prejudice to the powers of the commission under article 226 of the treaty , where a competent authority does not comply with the decision of the authority , and thereby fails to ensure that a financial market participant complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under community law , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a competent authority does not comply with the decision of the authority , and thereby fails to ensure that a financial market participant complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority shall adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law , including the cessation of any practice .


### the competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . ### the competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the authority ' s decision .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial market participant at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial market participants and markets across the community should also be achieved . a european securities and markets authority should be established , along with a european insurance and occupational pensions authority and a european banking authority . ### the european system of financial supervisors should be a network of national and european union supervisory authorities , leaving day - to - day supervision of financial institutions that have no eu dimension at the national level . colleges of supervisors shall exert supervision of institutions operating as cross borders that have no eu dimension . the authority shall gradually take over supervision of institutions with european union dimension . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . a european securities and markets authority should be established , along with a european supervisory authority and a european supervisory authority as well as a european supervisory authority . the european systemic risk board shall form part of a european system of financial supervision .


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by union law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union concerning technical standards in financial services .


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by union law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with union law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they should not be subject to amendment by the commission . the commission should reject the draft technical standards only if they were incompatible with european union law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement .


### the european parliament may also call upon the chairperson to submit a report on the performance of his duties . ### the european parliament may also call upon the chairperson to submit a report on the performance of his or her duties to the european parliament when requested and at least 15 days before making the statement referred to in paragraph 1 .


### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely in a joint committee of european supervisory authorities and reach common positions where appropriate . the joint committee of european supervisory authorities should assume all of the functions of the joint committee on financial conglomerates . where relevant , acts also falling within the area of competence of the european insurance and occupational pensions authority or the european banking authority should be adopted in parallel by the european supervisory authorities concerned . ### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely through the european supervisory authorities joint committee and reach common positions where appropriate . the joint committee should coordinate the functions of the three european supervisory authorities in relation to financial conglomerates . where relevant , acts also falling within the area of competence of the european supervisory authority or the european supervisory authority should be adopted in parallel by the european supervisory authorities concerned . the joint committee should be chaired for a 12 - month term on a rotating basis by the chairpersons of the three european supervisory authorities . the chairperson of the joint committee should be a vice - chair of the esrb . the joint committee should have a permanent secretariat , staffed on secondment from the three european supervisory authorities , to allow for informal information - sharing and the development of a common cultural approach across the three european supervisory authorities .


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of depositors , investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by union law , with the elaboration of draft technical standards , which do not involve policy choices . when drafting the technical standards the authority should take into consideration the different structures and risk profiles of financial institutions . in particular , the authorities should seek to ensure that unnecessary burden is not placed on financial institutions that are union - based , member - owned and play an important role with regards to combating social exclusion . the commission should endorse those draft technical standards in accordance with union law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with union law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of union financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement .


### the board of supervisors shall act on the basis of qualified majority of its members , as defined in article 205 of the treaty , for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi . ### the board of supervisors shall act on the basis of qualified majority of its members , as defined in article 16 of the treaty on european union , for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi . for all other decisions , the board of supervisors shall decide by simple majority and each member shall have one vote .


### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the competent authorities in different member states , the authority should be able to settle disagreements between those competent authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the competent authorities may reach an agreement . the authority ' s competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of community law in supervisory decisions . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial market participants in areas of community law directly applicable to them . ### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the competent authorities in different member states , the authority should be able to settle disagreements between those competent authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the competent authorities may reach an agreement . the authority ' s competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of union law in supervisory decisions . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial market participants in areas of union law directly applicable to them . this also applies to disagreements within a college of supervisors .


### given the globalisation of financial services and the increased importance of international standards , the authority should foster the dialogue and cooperation with supervisors outside the community . it shall fully respect the existing roles and competences of the european institutions in relations with authorities outside the community and in international forums . ### given the globalisation of financial services and the increased importance of international standards , the authority should represent the union in the dialogue and cooperation with supervisors outside the union .


### all other decisions of the board of supervisors shall be taken by simple majority of members . ### the board of supervisors shall act on the basis of qualified majority of its members , as defined in article 16 of the treaty on european union , for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi .


### the authority shall contribute to promote the efficient and consistent functioning of colleges of supervisors and foster the coherence of the application of community legislation across colleges . ### the authority shall contribute to promote and monitor the efficient effective and consistent functioning of the colleges of supervisors referred to in directive 2006 / 48 / ec and foster the coherence of the application of union law across colleges .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial market participant at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial market participants and markets across the community should also be achieved . a european securities and markets authority should be established , along with a european insurance and occupational pensions authority and a european banking authority . ### the european system of financial supervisors should be a network of national and union supervisory authorities , leaving day - to - day supervision of financial market participant that are not significant cross - border financial market participants at the national level . greater harmonisation and the coherent application of rules for financial market participants and markets across the union should also be achieved . a european supervisory authority should be established , along with a european supervisory authority and a european supervisory authority as well as a european supervisory authority .


### the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt on its own initiative implementing measures under comitology procedures at level 2 of the lamfalussy structure as laid out in the relevant community legislation . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the community acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities . ### the commission should endorse those draft technical standards in order to give them binding legal effect . they will be subject to amendment if , for example , they are incompatible with union law , do not respect the principle of proportionality or run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expeditious adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement .


### the joint committee shall serve as a forum in which the authority shall cooperate regularly and closely and ensure cross - sectoral consistency with the european insurance and occupational pensions authority and the banking authority . ### the joint committee shall serve as a forum in which the authority shall cooperate regularly and closely and ensure cross - sectoral consistency with the other esas , in particular on : – financial conglomerates ; – accounting and auditing ; – micro - prudential analyses of cross - sectoral developments , risks and vulnerabilities for financial stability ; – retail investment products ; – anti - money laundering measures ; and – information exchange with the european systemic risk board and development of the relationship between the european systemic risk board and the european supervisory authorities .


### the delegation of tasks and responsibilities can be a useful instrument in the functioning of the network of supervisors in order to reduce the duplication of supervisory tasks , foster cooperation and thereby streamline the supervisory process as well as reduce the burden imposed on financial institutions . the regulation should therefore provide a clear legal basis for such delegation . delegation of tasks means that tasks are carried out by another supervisory authority instead of the responsible authority , while the responsibility for supervisory decisions remains with the delegating authority . by delegation of responsibilities one national supervisory authority , the delegatee , shall be able to decide upon a certain supervisory matter in its name in lieu of another national supervisory authority . delegations should be governed by the principle of allocating supervisory competence to a supervisor which is well placed to take action in the subject matter . a reallocation of responsibilities can be appropriate for example for reasons of economies of scale or scope , of coherence in group supervision , and of optimal use of technical expertise among national supervisory authorities . relevant community legislation may further specify the principles for reallocation of responsibilities upon agreement . the authority should facilitate delegation agreements between national supervisory authorities by all appropriate means . it should be informed in advance of intended delegation agreements to be able to express an opinion where appropriate . it should centralise the publication of such agreements to ensure timely , transparent and easily accessible information about agreements for all parties concerned . ### the delegation of tasks and responsibilities can be a useful instrument in the functioning of the network of supervisors in order to reduce the duplication of supervisory tasks , foster cooperation and thereby streamline the supervisory process as well as reduce the burden imposed on financial institutions . the regulation should therefore provide a clear legal basis for such delegation . delegation of tasks means that tasks are carried out by another supervisory authority instead of the responsible authority , while the responsibility for supervisory decisions remains with the delegating authority . by delegation of responsibilities one national supervisory authority , the delegatee , shall be able to decide upon a certain supervisory matter in its name in lieu of another national supervisory authority . delegations should be governed by the principle of allocating supervisory competence to a supervisor which is well placed to take action in the subject matter . a reallocation of responsibilities can be appropriate for example for reasons of economies of scale or scope , of coherence in group supervision , and of optimal use of technical expertise among national supervisory authorities . relevant eu legislation may further specify the principles for reallocation of responsibilities upon agreement . the authority should facilitate and monitor delegation agreements between national supervisory authorities by all appropriate means . it should be informed in advance of intended delegation agreements to be able to express an opinion where appropriate . it should centralise the publication of such agreements to ensure timely , transparent and easily accessible information about agreements for all parties concerned . it should identify and promulgate best practices regarding delegation and delegation agreements .


### where the national authority does not comply with the recommendation , the commission should be empowered to address a decision to the national supervisory authority concerned in order to ensure compliance with community law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 226 of the treaty . ### where the national authority does not comply with the recommendation , within a deadline fixed by the authority , the authority should be able to address a decision without delay to the national supervisory authority concerned in order to ensure compliance with union law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 258 of the treaty .


### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained or revoked . ### where the authority maintains its decision , the council shall take a decision by a majority of the votes cast , at one of its meetings at the latest two months after the authority has informed the member state as set out in the previous subparagraph , as to , decide whether the authority ' s decision is maintained .


### without prejudice to the powers laid down in article 9 , where a competent authority disagrees on the procedure or content of an action or inaction by another competent authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by competent authorities from more than one member state , the authority , at the request of one or more of the competent authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 . ### without prejudice to the powers laid down in article 9 , where a competent authority disagrees on the procedure or content of an action or inaction by another competent authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by competent authorities from more than one member state , the authority , on its own initiative or at the request of one or more of the competent authorities concerned , shall take the lead in assisting the authorities in reaching an agreement in accordance with the procedure set out in paragraphs 2 to 4 .


### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets , investor protection or the stability of the whole or part of the financial system in the union , the esrb , upon its own initiative or following a request by the authority , the european parliament , the council or the commission , may issue a warning declaring the existence of an emergency situation for the purposes of this regulation , in order to enable the authority without further requirements to adopt the individual decisions referred to in paragraph 3 .


### the authority may also request information to be provided at recurring intervals . ### the authority may also request information to be provided at recurring intervals . those requests shall use common reporting formats to be fulfilled , where appropriate , at a consolidated level .


### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained or revoked . ### where the authority maintains its decision , the council shall take a decision whether the authority ' s decision is maintained or revoked on the basis of a qualified majority of its members , as defined in article 16 of the treaty on european union and in article 3 of the protocol on transitional provisions annexed to the treaty on european union and to the treaty on the functioning of the european union , at a meeting no later than two months after the authority has informed the member state as set out in subparagraph 4 .


### the authority may develop technical standards in the areas specifically set out in the legislation referred to in article 1 . the authority shall submit its draft standards to the commission for endorsement . ### the authority may develop technical standards to complete and modify elements that are not essential to the legislative acts referred to in article 1 . the technical standards do not represent strategic decisions and their content shall be limited by the legislation on which they are based .


### in order to guarantee its full autonomy and independence , the authority should be granted an autonomous budget with revenues mainly from obligatory contributions from national supervisory authorities and from the general budget of the european union . the community budgetary procedure should be applicable as far as the community contribution is concerned . the auditing of accounts should be undertaken by the court of auditors . ### in order to guarantee its full autonomy and independence , the authority should be granted an autonomous budget with revenues mainly from obligatory contributions from national supervisory authorities , from the general budget of the european union through a separate budget heading within it . the european union budgetary procedure should be applicable as far as the european union contribution is concerned . the auditing of accounts should be undertaken by the court of auditors .


### upon request from one or more competent authorities , from the commission or on its own initiative and after having informed the competent authority concerned , the authority may investigate the alleged incorrect application of community law . ### upon request from one or more competent authorities , from the european parliament , the commission , the council or a member of the securities and markets stakeholder group or on its own initiative and after having informed the competent authority concerned , the authority may investigate the alleged incorrect application of union law .


### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely in a joint committee of european supervisory authorities and reach common positions where appropriate . the joint committee of european supervisory authorities should assume all of the functions of the joint committee on financial conglomerates . where relevant , acts also falling within the area of competence of the european insurance and occupational pensions authority or the european banking authority should be adopted in parallel by the european supervisory authorities concerned . ### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely through the european supervisory authorities joint committee and reach common positions where appropriate . the joint committee should coordinate the functions of the three european supervisory authorities in relation to financial conglomerates . where relevant , acts also falling within the area of competence of the european supervisory authority or the european supervisory authority should be adopted in parallel by the european supervisory authorities concerned . the joint committee should be chaired for a 12 - month term on a rotating basis by the chairpersons of the three european supervisory authorities . the chairperson of the joint committee should be a vice - chair of the esrb . the joint committee should have a permanent secretariat , staffed on secondment from the three european supervisory authorities , to allow for informal information - sharing and the development of a common cultural approach across the three european supervisory authorities .


### the competent authorities shall make every effort to comply with those guidelines and recommendations . ### within two months of the issuance of a guideline or recommendation , each competent authority shall decide whether it intends to comply with that guideline or recommendation . in the event that it does not intend to comply , it shall inform the authority , stating its reasons . the authority shall publish those reasons .


### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the union , the esrb , upon its own initiative or following a request by the authority , the council , the european parliament or the commission , may issue a warning declaring the existence of an emergency situation in order to enable the authority without further requirements to adopt the individual decisions referred to in paragraph 3 .


### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the competent authorities in different member states , the authority should be able to settle disagreements between those competent authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the competent authorities may reach an agreement . the authority ' s competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of community law in supervisory decisions . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial market participants in areas of community law directly applicable to them . ### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the competent authorities in different member states , the authority should be able to settle disagreements between those competent authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the competent authorities may reach an agreement . the authority ' s competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of union law in supervisory decisions . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial market participants in areas of union law directly applicable to them . this also applies to disagreements within a college of supervisors .


### the authority and the competent authorities shall provide the commission with all necessary information . ### the competent authorities shall provide the authority with all necessary information .


### the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . ### the authority shall take such a decision no later than one month from the adoption of the recommendation .


### given the globalisation of financial services and the increased importance of international standards , the authority should foster the dialogue and cooperation with supervisors outside the community . it shall fully respect the existing roles and competences of the european institutions in relations with authorities outside the community and in international forums . ### given the globalisation of financial services and the increased importance of international standards , the authority should represent the european union in the dialogue and cooperation with supervisors outside the union .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations on the draft technical standards and analyse the potential related costs and benefits before adopting them . the authority shall also request an opinion or advice of the securities and markets stakeholder group .


### the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt on its own initiative implementing measures under comitology procedures at level 2 of the lamfalussy structure as laid out in the relevant community legislation . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the community acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities . ### the commission should endorse those draft technical standards in order to give them binding legal effect . they will be subject to amendment if , for example , they are incompatible with union law , do not respect the principle of proportionality or run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expeditious adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement .


### for the purpose of consultation with stakeholders in areas relevant to the tasks of the authority , a securities and markets stakeholder group shall be established . ### for the purpose of consultation with stakeholders in areas relevant to the tasks of the authority , a securities and markets stakeholder group shall be established . the stakeholder group shall be consulted on all relevant decisions and actions of the authority . if case of urgency immediate consultation is impossible , the stakeholder group has to be informed about the decision as quick as possible .


### where the commission has adopted a decision pursuant to paragraph 1 , the authority may adopt individual decisions requiring competent authorities to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial market participants and competent authorities satisfy the requirements laid down in that legislation . ### where the existence of an emergency situation is declared pursuant to paragraph 1 , the authority may adopt decisions addressed to the competent authorities of member states requring them to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial market participants and competent authorities satisfy the requirements laid down in that legislation .


### the european parliament may invite the chairperson or his or her alternate , while fully respecting his or her independence , to make a statement regularly before its competent committee and answer questions put by members of that committee . ### the chairperson shall make a statement before the european parliament and answer any questions put by its members .


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , a securities and markets stakeholder group should be established for that purpose , representing in balanced proportions community financial market participants , their employees , and consumers and other retail users of financial services , including smes . the securities and markets stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . before adopting draft technical standards , guidelines and recommendations the authority should carry out an impact study . for reasons of efficiency , a securities and markets stakeholder group should be established for that purpose , representing in balanced proportions union financial market participants , their employees , academia and consumers and other retail users of financial services , including smes . the securities and markets stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or by eu legislation .


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by union law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union concerning technical standards in financial services .


### in the case of non - contractual liability , the authority shall , in accordance with the general principles common to the laws of the member states , make good any damage caused by it or by its staff in the performance of their duties . the court of justice shall have jurisdiction in any dispute over the remedying of such damage . ### in the case of non - contractual liability , the authority shall , in accordance with the general principles common to the laws of the member states , make good any unjustifiable damage caused by it or by its staff in the performance of their duties . the court of justice shall have jurisdiction in any dispute over the remedying of such damage .


### without prejudice to the powers laid down in article 9 , where a competent authority disagrees on the procedure or content of an action or inaction by another competent authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by competent authorities from more than one member state , the authority , at the request of one or more of the competent authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 . ### without prejudice to the powers laid down in article 9 , where a competent authority disagrees on the procedure or content of an action or inaction by another competent authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by competent authorities from more than one member state , the authority , on its own initiative or at the request of one or more of the competent authorities concerned , shall take the lead in assisting the authorities in reaching an agreement in accordance with the procedure set out in paragraphs 2 to 4 .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial market participant at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial market participants and markets across the community should also be achieved . a european securities and markets authority should be established , along with a european insurance and occupational pensions authority and a european banking authority . ### the european system of financial supervisors should be a network of national and union supervisory authorities , leaving day - to - day supervision of financial market participant that are not significant cross - border financial market participants at the national level . greater harmonisation and the coherent application of rules for financial market participants and markets across the union should also be achieved . a european supervisory authority should be established , along with a european supervisory authority and a european supervisory authority as well as a european supervisory authority .


### without prejudice to the powers laid down in article 9 , where a competent authority disagrees on the procedure or content of an action or inaction by another competent authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by competent authorities from more than one member state , the authority , at the request of one or more of the competent authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 . ### without prejudice to the powers laid down in article 9 , where a competent authority disagrees on the procedure or content of an action or inaction by another competent authority in cases specified in legislation referred to in article 1 , the authority , at the request of one or more of the competent authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 .


### where the competent authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with community law . ### where the competent authority has not complied with union law within the ten working days set out in paragraph 3 of this article from receipt of the authority ' s recommendation , the authority shall take a decision requiring the competent authority to take the action necessary to comply with union law .


### the standards shall be adopted by the commission by means of regulations or decisions and published in the official journal of the european union . ### the commission shall adopt technical standards in accordance with articles 7a to 7d , in the form of regulations or decisions .


### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely in a joint committee of european supervisory authorities and reach common positions where appropriate . the joint committee of european supervisory authorities should assume all of the functions of the joint committee on financial conglomerates . where relevant , acts also falling within the area of competence of the european insurance and occupational pensions authority or the european banking authority should be adopted in parallel by the european supervisory authorities concerned . ### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely through the european supervisory authorities joint committee and reach common positions where appropriate . the joint committee should coordinate the functions of the three european supervisory authorities in relation to financial conglomerates . where relevant , acts also falling within the area of competence of the european supervisory authority or the european supervisory authority should be adopted in parallel by the european supervisory authorities concerned . the joint committee should be chaired for a 12 - month term on a rotating basis by the chairpersons of the three european supervisory authorities . the chairperson of the joint committee should be a vice - chair of the esrb . the joint committee should have a permanent secretariat , staffed on secondment from the three european supervisory authorities , to allow for informal information - sharing and the development of a common cultural approach across the three european supervisory authorities .


### basic requirements to be fulfilled by public transport offer such as accessibility , territorial connectivity , security , modal and intermodal interconnections at main connecting hubs , offer characteristics such as times of operation , frequency of services and minimum degree of capacity utilisation ; ### basic requirements to be fulfilled by public transport offer , including in respect of modal and intermodal connections at main connecting hubs ;


### ' ' competent local authority ' means any competent authority whose geographical area of competence is not national and which covers the transport needs of an urban agglomeration or a rural district ; ' ### ' ' competent local authority ' means any competent authority whose geographical area of competence does not comprise the whole territory of a member state or which covers the transport needs of a region , an urban agglomeration or a rural district , including at cross - border level ; '


### in the case of a public service contract directly awarded to a small or medium - sized enterprise operating not more than 23 road vehicles , these thresholds may be increased to either an average annual value estimated at less than eur 2 000 000 or to an annual provision of less than 600 000 kilometres of public passenger transport services . ### in the case of a public service contract directly awarded to a small or medium - sized enterprise operating not more than 50 road vehicles , these thresholds may be increased to either an average annual value estimated at less than eur 2 000 000 or to an annual provision of less than 600 000 kilometres of public passenger transport services .


### competent authorities shall establish and regularly update public passenger transport plans covering all relevant transport modes for the territory for which they are responsible . these public transport plans shall define the objectives of public transport policy and the means to implement them covering all relevant transport modes for the territory for which they are responsible . they shall at least include : ### competent authorities shall establish and regularly update public passenger transport plans for the territory for which they are responsible . these public transport plans shall define the objectives of public transport policy and the means to implement them for the territory for which they are responsible . they shall at least include :


### the competent authorities shall adopt the public transport plans after consultation of relevant stakeholders and publish them . for the purpose of this regulation , relevant stakeholders to be taken into consideration are at least transport operators , infrastructure managers if appropriate , and representative passenger and employee organisations . ### the competent authorities shall adopt the public transport plans after consultation of relevant stakeholders and publish them . for the purpose of this regulation , relevant stakeholders to be taken into consideration are at least transport operators , infrastructure managers if appropriate , and representative passenger and employee organisations . the existing public service providers shall be required , on request , to provide the competent authorities , including those of a neighbouring state , with the necessary information within one month .


### ‘ competent local authority’ means any competent authority whose geographical area of competence is not national and which covers the transport needs of an urban agglomeration or a rural district ; ### ‘ competent local authority’ means any competent authority whose geographical area of competence is not national and which covers the transport needs of , for example , a region , an urban agglomeration or a rural district ;


### ' the scope of public service obligations shall exclude all public transport services that go beyond of what is necessary to reap local , regional or sub - national network effects . ### ' the scope of public service obligations shall include all public transport services which create local , regional or sub - national network effects ; such network effects may arise from the merger of profitable and unprofitable routes . '


### ' competent local authority ' means any competent authority whose geographical area of competence is not national and which covers the transport needs of an urban agglomeration or a rural district ; ### ' competent local authority ' means any competent authority whose geographical area of competence does not comprise the whole territory of a member state or which covers the transport needs of a region , an urban agglomeration or a rural district , including at cross - border level ;


### by acquiring itself the rolling stock used for the execution of the public service contract with a view to making it available to the selected public service operator at market price or as part of the public service contract pursuant to article 4 , article 6 and , if applicable , to the annex , ### by acquiring at market price itself the rolling stock used for the execution of the public service contract with a view to making it available to the selected public service operator at market price or as part of the public service contract pursuant to article 4 , article 6 and , if applicable , to the annex ,


### this regulation shall enter into force on the day following that of its publication in the official journal of the european union . ### this regulation shall enter into force on the day following its publication in the official journal of the european union . it shall be consolidated with the regulation amended by it within three months of its entry into force .


### ' ' competent local authority ' means any competent authority whose geographical area of competence is not national and which covers the transport needs of an urban agglomeration or a rural district ; ' ### ' competent local authority ' means any competent authority whose geographical area of competence is not national ;


### in view of creating framework conditions for enabling society to fully reap the benefits of effective opening of the market for domestic passenger transport services by rail it is important that member states ensure an adequate level of social protection for the staff of public service operators . ### in view of creating framework conditions for enabling society to fully reap the benefits of domestic passenger transport services by rail it is important that member states ensure a high level of social protection for the staff of public service operators .


### this regulation shall enter into force on the day following that of its publication in the official journal of the european union . ### this regulation shall enter into force on the day following its publication in the official journal of the european union . it shall be made available in the form of a text consolidated with regulation no 1370 / 2007 , which it shall amend within three months of its publication .


### to ensure sound financing to meet the objectives of public transport plans , competent authorities need to design public service obligations to attain public transport objectives in a cost - effective manner taking account of the compensation for the net financial effect of those obligations and they need to ensure long - term financial sustainability of public transport provided under public service contracts . ### to ensure sound financing to meet the objectives of public transport plans , competent authorities need to design public service obligations to attain public transport objectives in a cost - effective manner taking account of the compensation for the net financial effect of those obligations and they need to ensure long - term financial sustainability of public transport provided under public service contracts . that includes avoiding both over - and under - compensation caused by the substance of the public service obligations or the failure of the competent authority to meet its financial commitments . public service obligations may include networks in which some services can be operated with a fair profit without financial compensation ; the inclusion of such services should not result in compensation payments exceeding the amount necessary for providing the whole range of services .


### competent authorities shall make available to all interested parties relevant information for the preparation of an offer under a competitive tender procedure . this shall include information on passenger demand , fares , costs and revenues related to the public passenger transport covered by the tender and details of the infrastructure specifications relevant for the operation of the required vehicles or rolling stock to enable them to draft well informed business plans . rail infrastructure managers shall support competent authorities in providing all relevant infrastructure specifications . non - compliance with the provisions set out above shall be subject to the legal review provided for in article 5 . ' ### competent authorities shall make available to all interested parties relevant information for the preparation of an offer under a competitive tender procedure . infrastructure operators , in particular rail operators , who perform or have performed a public service contract , shall assist the competent authorities in providing all the relevant information . they shall be liable for the accuracy of the data provided to the competent authority in compliance with the principle of business confidentiality . this shall include information on passenger demand , fares , costs and revenues related to the public passenger transport covered by the tender and details of the infrastructure specifications relevant for the operation of the required vehicles or rolling stock to enable them to draft well informed business plans . rail infrastructure managers shall support competent authorities in providing all relevant infrastructure specifications . non - compliance with the provisions set out above shall be subject to the legal review provided for in article 5 . the current operator of a route or network covered by a tender awarded under a competitive tender procedure shall provide the competent authority free of charge with full and precise information for the preparation of an offer , particularly concerning transport demand and revenue earned from passenger transport . the former rail operator and the infrastructure operator shall compensate the other operators for any loss the latter incur as a result of submitting tenders based on inaccurate or incomplete information .


### in the cases referred to in points and , the competent authority shall have the right to require the public service operator to transfer the rolling stock after the expiry of the public service contract to the new operator to whom a contract is awarded . the competent authority may oblige the new public transport operator to take the rolling stock over . the transfer shall be done at market rates . ### in the cases referred to in points and , the competent authority shall have the right to require the public service operator to transfer the rolling stock after the expiry of the public service contract to the new operator to whom a contract is awarded . the competent authority may oblige the new public transport operator to take the rolling stock over . the transfer shall be done at market prices .


### operational requirements such as transport of bicycles , traffic management , contingency plan in case of disturbances . ### other operational requirements


### competent authorities shall make available to all interested parties relevant information for the preparation of an offer under a competitive tender procedure . this shall include information on passenger demand , fares , costs and revenues related to the public passenger transport covered by the tender and details of the infrastructure specifications relevant for the operation of the required vehicles or rolling stock to enable them to draft well informed business plans . rail infrastructure managers shall support competent authorities in providing all relevant infrastructure specifications . non - compliance with the provisions set out above shall be subject to the legal review provided for in article 5 . ' ### competent authorities shall make available to all interested parties relevant information for the preparation of an offer under a competitive tender procedure . infrastructure operators , in particular rail operators , who perform or have performed a public service contract , shall assist the competent authorities in providing all the relevant information . they shall be liable for the accuracy of the data provided to the competent authority in compliance with the obligation of business confidentiality . this shall include information on passenger demand , fares , costs and revenues related to the public passenger transport covered by the tender and details of the infrastructure specifications relevant for the operation of the required vehicles or rolling stock to enable them to draft well informed business plans . rail infrastructure managers shall support competent authorities in providing all relevant infrastructure specifications . non - compliance with the provisions set out above shall be subject to the legal review provided for in article 5 . the current operator of a route or network covered by a tender in accordance with the competitive tender procedure shall provide the competent authority free of charge , with the full and precise information necessary for the preparation of an offer , particularly concerning transport demand and revenue earned from passenger transport . the former rail operator and the infrastructure operator shall compensate the other operators for any loss the latter may incur as a result of submitting tenders based on inaccurate or incomplete information . ”


### the competent authority may comply with the requirement set out in the first subparagraph in one of the following ways : ### the competent authority may comply with the requirement set out in the first subparagraph in various ways conducive to generating economies of scale :


### member states shall in compliance with state aid rules take the necessary measures to ensure effective and non - discriminatory access to suitable rolling stock for public passenger transport by rail for operators wishing to provide public passenger transport services by rail under public service contract . ### member states shall in compliance with state aid rules take the necessary measures to ensure effective and non - discriminatory access conditions to suitable rolling stock for public passenger transport by rail with the exceptions of other track - based modes as metro and tramways for operators wishing to provide public passenger transport services by rail with the exception of other track - based modes as metro or tramways services under public service contract .


### the specifications of public service obligations and the related compensation of the net financial effect of public service obligations shall : ### ' the specifications of public service obligations and the related compensation of the net financial effect of public service obligations shall achieve the objectives of the public transport plan in the most cost effective manner , avoid over - and under - compensation and financially sustain the provision of public passenger transports in long term . '


### within the context of the world trade organisation and through its bilateral relations the union advocates an ambitious opening of international public procurement markets of the union and its trading partners , in a spirit of reciprocity and mutual benefit . ### within the context of the world trade organisation and through its bilateral relations the union advocates an ambitious opening of international public procurement markets of the union and its trading partners , in a spirit of reciprocity and mutual benefit , by broadening the outlook of the common market , which is becoming more competitive , and thus achieving the aims of the eu economic policy .


### to what degree public procurement laws of the country concerned ensure transparency in line with international standards in the field of public procurement and preclude any discrimination against union goods , services and economic operators ; ### to what degree laws or regulatory measures of the country concerned on public procurement or concessions ensure transparency in line with international standards in the field of public procurement and preclude any discrimination against union goods , services and economic operators ;


### articles 58 and 59 of directive 2004 / 17 / ec shall be repealed with effect from the entry into force of this regulation . ### the commission shall assess whether if articles 58 and 59 of directive 2004 / 17 / ec shall be maintained . in view of the conclusions of this assessment , the commission shall submit a legislative proposal repealing those articles with effect from the entry into force of this regulation .


### where an agreement referred to in point does not exist and the third country maintains restrictive procurement measures leading to a lack of substantial reciprocity in market opening between the union and the third country concerned . ### where an agreement referred to in point does not exist and the third country maintains restrictive procurement or concession award measures leading to a lack of substantial reciprocity in market opening between the union and the third country concerned . ; adoption of the regulation will entail technical changes throughout the text ) .


### the commission should assess whether to approve that contracting authorities / entities within the meaning of directives [ 2004 / 17 / ec , 2004 / 18 / ec and directive [ … . ] of the european parliament and the council of [ … . ] … . on the award of concession contracts ] exclude , for contracts with an estimated value equal or above eur 5 . 000 . 000 from procedures for the award of contracts goods and services not covered by the international commitments undertaken by the european union . ### the commission should assess whether to approve that contracting authorities / entities within the meaning of directives [ 2004 / 17 / ec , 2004 / 18 / ec and directive [ … . ] of the european parliament and the council of [ … . ] … . on the award of concession contracts ] exclude , for procedures for the award of contracts or concessions with an estimated value equal or above eur 5 . 000 . 000 from procedures for the award of contracts goods and services not covered by the international commitments undertaken by the european union .


### when assessing whether a lack of substantial reciprocity exists , the commission should examine to what degree public procurement laws of the country concerned ensure transparency in line with international standards in the field of public procurement and preclude any discrimination against union goods , services and economic operators . in addition , it should examine to what degree public authorities and / or individual procuring entities maintain or adopt discriminatory practices against union goods , services and economic operators . ### when assessing whether a lack of substantial reciprocity exists , the commission should examine to what degree the laws on public procurement and concessions of the country concerned ensure transparency in line with international standards in the field of public procurement and concessions and preclude any discrimination against union goods , services and economic operators . in addition , it should examine to what degree public authorities and / or individual procuring entities maintain or adopt discriminatory practices against union goods , services and economic operators .


### a description of the object of the contract ; ### a description of the object of the contract or concession ; ; adoption of the regulation will entail technical changes throughout the text ) .


### where the contracting authority / entity intends , under article 69 of the directive on public procurement or under article 79 of the directive on procurement by entities operating in the water , energy , transport and postal services sectors , after verifying the explanations of the tenderer , to accept an abnormally low tender comprising goods and / or services originating outside the union , in which the value of the non - covered goods or services exceeds 50 % of the total value of the goods or services constituting the tender , it shall inform the other tenderers of this in writing , including the reasons for the abnormally low character of the price or costs charged . ### for tenders comprising goods and / or services originating outside the union , in which the value of the non - covered goods and / or services exceeds 50% of the total value of the goods or services constituting the tender , contracting authorities / entities shall require the economic operator concerned to explain the price or costs charged , where : the price or cost charged is at least than 20% lower than the average price or costs of the remaining tenders ; or the price or cost charged is at least 20% lower than the price or costs of the second lowest tender . 2 . the request for explanation under paragraph 1 shall , where applicable , relate in particular to following aspects : economics of the construction method ; manufacturing process or the services provided ; technical arrangements ; originality of the work , supplies or services ; compliance with eu legislation ; state aids received by the tenderer during the last 3 years . 3 . when an abnormally low tender is identified pursuant to paragraph 1 , and without prejudice to the request for explanation , the contracting authority / entity shall inform the other tenderers of this in writing . 4 . the contracting authority / entity shall verify the information provided by consulting the tenderer beforehand . 5 . the contracting authority / entity shall reject the abnormally low tender where the evidence provided does not justify the low level of price or costs charged .