### eiopa may ask the competent authority of the financial undertaking applying for the authorisation for clarification and information as regards the documentation referred to in paragraph 2 . the competent authority shall reply to the request within 10 working days from the date on which it has received the request submitted by eiopa . ### eiopa may ask the competent authority of the financial entities applying for authorisation for clarification and information as regards the documentation referred to in paragraph 2 . the competent authority shall reply to the request within 10 working days from the date on which it has received the request submitted by eiopa .


### the pepp saver may switch pepp providers no more frequently than once every five years after conclusion of the pepp contract . ### the pepp saver shall be allowed to switch pepp providers at least every five years from the conclusion of the pepp contract , without prejudice to article 14 . the pepp provider may allow the pepp saver to switch pepp provider more frequently .


### potential pepp savers shall also be provided with information on the past performance of investments related to the pepp scheme covering a minimum of five years , or , where the scheme has been operating for fewer than five years , covering all the years that the scheme has been operating , as well as with information on the structure of costs borne by pepp savers and pepp beneficiaries . ### potential pepp savers shall also be provided with information on the past performance of investments related to the pepp scheme covering a minimum of ten years , or , where the scheme has been operating for fewer than ten years , covering all the years that the scheme has been operating , as well as with information on the structure of costs borne by pepp savers and pepp beneficiaries free of charge .


### without prejudice to the deadline under article 13 , immediately after being informed about the pepp saver ' s intention to exercise his right of mobility between member states , the pepp provider shall inform the pepp saver about the possibility to open a new compartment within the pepp saver ' s individual account and about the deadline within which such compartment could be opened . ### immediately after being informed about the pepp saver ' s intention to exercise his right of mobility between member states , the pepp provider shall inform the pepp saver about the possibility to open a new compartment within the saver ' s individual pepp account and about the timeframe within which such a compartment could be opened , or where no such compartment is available , about the possibility to switch provider in accordance with the conditions referred to in article 13 .


### in order to find better conditions for their investments , thus also stimulating the competition among pepp providers , pepp savers should have the right to switch providers during the accumulation and the decumulation phases , through a clear , quick and safe procedure . ### in order to find better conditions for their investments , thus also stimulating the competition among pepp providers , pepp savers should have the right to switch to a different provider located in the same or another member state during the accumulation phase , through a clear , quick and safe procedure .


### “pan - european personal pension product ” means a long - term savings personal pension product , which is provided under an agreed pepp scheme by a regulated financial undertaking authorised under union law to manage collective or individual investments or savings , and subscribed to voluntarily by an individual pepp saver in view of retirement , with no or strictly limited redeemability ; ### “pan - european personal pension product ” means a long - term savings personal pension product , which is offered by a pepp provider or distributor and subscribed to voluntarily by an individual pepp saver in view of retirement , with no or strictly limited redeemability ;


### the information under paragraph 1 shall be filed electronically in a central database held with the national supervisory authority within one month of opening the new compartment and shall contain at least : ### the information under paragraph 1 shall be filed electronically in a central database held with eiopa within one month of opening the new compartment . the database shall be accessible to the national competent authorities , who shall automatically receive information concerning the local compartments in the case of any changes . the database shall contain at least :


### all contractual arrangements for providing the portability service shall be notified by the pepp provider to the respective national authority exercising prudential supervision over it . ### all contractual arrangements for providing the portability service shall be notified by the pepp provider to eiopa .


### where the infrastructure in question is also under the jurisdiction of one or more third countries , the national regulatory authorities of the member states shall consult the relevant authorities of the third countries prior to adopting a decision with a view to ensuring , as regards the concerned infrastructure , that the provisions of this directive are applied consistently up to the border of union jurisdiction . ; ### where the infrastructure in question is also under the jurisdiction of one or more third countries , the national regulatory authorities of the member states may consult the relevant authorities of the third countries prior to adopting a decision with a view to ensuring , as regards the concerned infrastructure , that the provisions of this directive are applied consistently up to the border of union jurisdiction . ;


### the applicability of directive 2009 / 73 / ec for gas pipelines to and from third countries remains confined to the territorial limit of union ' s jurisdiction . as regards offshore pipelines , it should be applicable in the territorial waters and exclusive economic zones of the member states . ### the applicability of directive 2009 / 73 / ec for gas pipelines from third countries remains confined to the territorial limit of union ' s jurisdiction . as regards offshore pipelines , it cannot be applied in the exclusive economic zone as defined by the united nations convention on the law of the sea .


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


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


### the commission may take into account all relevant information , including decisions of the court of justice of the european union , reports of the court of auditors , and conclusions and recommendations of relevant international organisations . ### before resorting to a written notification pursuant to paragraph 1 , the commission shall take into account all relevant information , including conditions and timing of the member state’s adoption , implementation and enforcement of the relevant chapters of the acquis , where available decisions of the court of justice of the european union , reports of the court of auditors and resolutions of the european parliament . it shall also take into account conclusions and recommendations of relevant international organisations , and in particular : the venice commission ' s rule of law checklist , the council of europe recommendation cm / rec 12 ‘ judges : independence , efficiency and responsibilities’ , the venice commission report on the independence of the judicial system part i : the independence of judges 004 ) , the venice commission report on part ii : the prosecution service 040 ) , and the relevant evaluation and compliance reports of the group of states against corruption .


### where the commission considers that the generalised deficiency as regards the rule of law is established , it shall submit a proposal for an implementing act on the appropriate measures to the council . ### where the commission considers that the generalised deficiency as regards the rule of law is established , it shall adopt a decision on the measures referred to in article 4 by means of an implementing act .


### the commission shall assess the situation in the member state concerned . once the generalised deficiencies as regards the rule of law which on the grounds of which the appropriate measures were adopted cease to exist in full or in part , the commission shall submit to the council a proposal for a decision lifting those measures in full or in part . the procedure set out in paragraphs 2 , 4 , 5 , 6 and 7 of article 5 shall apply . ### at the request of the member state concerned or on its own initiative , the commission shall assess the situation in that member state . once the generalised deficiencies as regards the rule of law which on the grounds of which the measures in question were adopted cease to exist in full or in part , the commission shall adopt a decision lifting those measures in full or in part . at the same time , the commission shall submit to the european parliament and the council a proposal to lift in full or in part , the budgetary reserve referred to the measures adopted . the procedure set out in paragraphs 2 , 4 , 5 , 6 , 6 a and 6 b of article 5 shall apply .


### measures ### conditions for the protection of the union’s budget


### the rule of law requires that all public powers act within the constraints set out by law , in accordance with the values of democracy and fundamental rights , and under the control of independent and impartial courts . it requires , in particular , that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , and effective judicial protection by independent courts11 are respected12 . _____________________________ 7 judgment of the court of justice of 29 april 2004 , cas succhi di frutta , c - 496 / 99 pecli : eu : c : 2004 : 236 , paragraph 63 . 8 judgment of the court of justice of 12 november 1981 , amministrazione delle finanze dello stato v srl meridionale industria salumi and others ditta italo orlandi & figlio and ditta vincenzo divella v amministrazione delle finanze dello stato . joined cases 212 to 217 / 80 , ecli : eu : c : 1981 : 270 , paragraph 10 . 9 judgment of the court of justice of 21 september 1989 , hoechst , joined cases 46 / 87 and 227 / 88 , ecli : eu : c : 1989 : 337 , paragraph 19 . 10 judgment of the court of justice of 10 november 2016 , kovalkovas , c - 477 / 16 , ecli : eu : c : 2016 : 861 , paragraph 36 ; judgment of the court of justice of 10 november 2016 , ppu poltorak , c - 452 / 16 , ecli : eu : c : 2016 : 858 , paragraph 35 ; and judgment of the court of justice of 22 december 2010 , deb , c - 279 / 09 , ecli : eu : c : 2010 : 811 , paragraph 58 . 11 judgment of the court of justice of 27 february 2018 , associação sindical dos juízes portugueses v tribunal de contas c - 64 / 16 , ecli : eu : c : 2018 : 117 , paragraphs 31 , 40 - 41 . 12 communication from the commission ' a new eu framework to strengthen the rule of law ' , com 158 final , annex i . ### the rule of law requires that all public powers act within the constraints set out by law , in accordance with the values of democracy and fundamental rights , and under the control of independent and impartial courts . it requires , in particular , that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , and effective judicial protection by independent courts11 are respected12 . _____________________________ 7 judgment of the court of justice of 29 april 2004 , cas succhi di frutta , c - 496 / 99 pecli : eu : c : 2004 : 236 , paragraph 63 . 8 judgment of the court of justice of 12 november 1981 , amministrazione delle finanze dello stato v srl meridionale industria salumi and others ditta italo orlandi & figlio and ditta vincenzo divella v amministrazione delle finanze dello stato . joined cases 212 to 217 / 80 , ecli : eu : c : 1981 : 270 , paragraph 10 . 9 judgment of the court of justice of 21 september 1989 , hoechst , joined cases 46 / 87 and 227 / 88 , ecli : eu : c : 1989 : 337 , paragraph 19 . 10 judgment of the court of justice of 10 november 2016 , kovalkovas , c - 477 / 16 , ecli : eu : c : 2016 : 861 , paragraph 36 ; judgment of the court of justice of 10 november 2016 , ppu poltorak , c - 452 / 16 , ecli : eu : c : 2016 : 858 , paragraph 35 ; and judgment of the court of justice of 22 december 2010 , deb , c - 279 / 09 , ecli : eu : c : 2010 : 811 , paragraph 58 . 11 judgment of the court of justice of 27 february 2018 , associação sindical dos juízes portugueses v tribunal de contas c - 64 / 16 , ecli : eu : c : 2018 : 117 , paragraphs 31 , 40 - 41 ; judgment of the court of justice of 25 july 2018 , lm , c - 216 / 18 ppu , ecli : eu : c : 2018 : 586 , paragraphs 63 - 67 . 12 communication from the commission ' a new eu framework to strengthen the rule of law ' , com 158 final , annex i .


### the rule of law requires that all public powers act within the constraints set out by law , in accordance with the values of democracy and fundamental rights , and under the control of independent and impartial courts . it requires , in particular , that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , and effective judicial protection by independent courts11 are respected12 . _________________ 7 judgment of the court of justice of 29 april 2004 , cas succhi di frutta , c - 496 / 99 pecli : eu : c : 2004 : 236 , paragraph 63 . 8 judgment of the court of justice of 12 november 1981 , amministrazione delle finanze dello stato v srl meridionale industria salumi and others ditta italo orlandi & figlio and ditta vincenzo divella v amministrazione delle finanze dello stato . joined cases 212 to 217 / 80 , ecli : eu : c : 1981 : 270 , paragraph 10 . 9 judgment of the court of justice of 21 september 1989 , hoechst , joined cases 46 / 87 and 227 / 88 , ecli : eu : c : 1989 : 337 , paragraph 19 . 10 judgment of the court of justice of 10 november 2016 , kovalkovas , c - 477 / 16 , ecli : eu : c : 2016 : 861 , paragraph 36 ; judgment of the court of justice of 10 november 2016 , ppu poltorak , c - 452 / 16 , ecli : eu : c : 2016 : 858 , paragraph 35 ; and judgment of the court of justice of 22 december 2010 , deb , c - 279 / 09 , ecli : eu : c : 2010 : 811 , paragraph 58 . 11 judgment of the court of justice of 27 february 2018 , associação sindical dos juízes portugueses v tribunal de contas c - 64 / 16 , ecli : eu : c : 2018 : 117 , paragraphs 31 , 40 - 41 . 12 communication from the commission ' a new eu framework to strengthen the rule of law ' , com 158 final , annex i . ### the rule of law requires that all public powers - including representatives of institutions such as the european central bank - act within the constraints set out by law , in accordance with the values of democracy and fundamental rights , and under the control of independent and impartial courts . it requires , in particular , that the principles of legality7 , of legal certainty8 , of the primacy of law over even international standards , of prohibition of arbitrariness of the executive powers9 , of separation of powers10 , and of effective judicial protection by independent courts11 are respected12 . _________________ 7 judgment of the court of justice of 29 april 2004 , cas succhi di frutta , c - 496 / 99 pecli : eu : c : 2004 : 236 , paragraph 63 . 8 judgment of the court of justice of 12 november 1981 , amministrazione delle finanze dello stato v srl meridionale industria salumi and others ditta italo orlandi & figlio and ditta vincenzo divella v amministrazione delle finanze dello stato . joined cases 212 to 217 / 80 , ecli : eu : c : 1981 : 270 , paragraph 10 . 9 judgment of the court of justice of 21 september 1989 , hoechst , joined cases 46 / 87 and 227 / 88 , ecli : eu : c : 1989 : 337 , paragraph 19 . 10 judgment of the court of justice of 10 november 2016 , kovalkovas , c - 477 / 16 , ecli : eu : c : 2016 : 861 , paragraph 36 ; judgment of the court of justice of 10 november 2016 , ppu poltorak , c - 452 / 16 , ecli : eu : c : 2016 : 858 , paragraph 35 ; and judgment of the court of justice of 22 december 2010 , deb , c - 279 / 09 , ecli : eu : c : 2010 : 811 , paragraph 58 . 11 judgment of the court of justice of 27 february 2018 , associação sindical dos juízes portugueses v tribunal de contas c - 64 / 16 , ecli : eu : c : 2018 : 117 , paragraphs 31 , 40 - 41 . 12 communication from the commission ' a new eu framework to strengthen the rule of law ' , com 158 final , annex i .


### one or more of the following appropriate measures may be adopted ### where the conditions of article 3 are fulfilled , one or more of the following measures may be adopted


### ' the rule of law ' refers to the union value enshrined in article 2 of the treaty on european union which includes the principles of legality , implying a transparent , accountable , democratic and pluralistic process for enacting laws ; legal certainty ; prohibition of arbitrariness of the executive powers ; effective judicial protection by independent courts , including of fundamental rights ; separation of powers and equality before the law ; ### ' the rule of law and fundamental rights ' as enshrined in article 2 of the treaty on european union include the principles of legality , implying a transparent , accountable , democratic and pluralistic process for enacting law ; legal certainty ; prohibition of arbitrariness of the executive powers ; access to justice and effective judicial protection before independent and impartial courts ; separation of powers ; non - discrimination and equality before the law ; respect for fundamental rights as stipulated in the charter of fundamental rights of the european union and in international human rights treaties ;


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


### one or more of the following appropriate measures may be adopted ### when the conditions of article 3 are fulfilled , one or more of the following measures may be adopted


### the measures taken shall be proportionate to the nature , gravity and scope of the generalised deficiency as regards the rule of law . they shall , insofar as possible , target the union actions affected or potentially affected by that deficiency . ### the measures taken shall be proportionate to the nature , gravity , duration and scope of the generalised deficiency as regards the rule of law . they shall , insofar as possible , target the union actions affected or potentially affected by that deficiency .


### judicial bodies should act independently and impartially and investigation and prosecution services should be able to properly execute their function . they should be endowed with sufficient resources and procedures to act effectively and in full respect of the right to a fair trial . these conditions are required as a minimum guarantee against unlawful and arbitrary decisions by public authorities that could harm the financial interests of the union . ### independence and impartiality of the judiciary should always be guaranteed and investigation and prosecution services should be able to properly execute their function . they should be endowed with sufficient resources and procedures to act effectively and in full respect of the right to a fair trial . these conditions are required as a minimum guarantee against unlawful and arbitrary decisions by public authorities that could impair these fundamental principles .


### content of measures ### measures for the protection of the union’s budget


### the rule of law requires that all public powers act within the constraints set out by law , in accordance with the values of democracy and fundamental rights , and under the control of independent and impartial courts . it requires , in particular , that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , and effective judicial protection by independent courts11 are respected12 . __________________ 7 judgment of the court of justice of 29 april 2004 , cas succhi di frutta , c - 496 / 99 pecli : eu : c : 2004 : 236 , paragraph 63 . 8 judgment of the court of justice of 12 november 1981 , amministrazione delle finanze dello stato v srl meridionale industria salumi and others ditta italo orlandi & figlio and ditta vincenzo divella v amministrazione delle finanze dello stato . joined cases 212 to 217 / 80 , ecli : eu : c : 1981 : 270 , paragraph 10 . 9 judgment of the court of justice of 21 september 1989 , hoechst , joined cases 46 / 87 and 227 / 88 , ecli : eu : c : 1989 : 337 , paragraph 19 . 10 judgment of the court of justice of 10 november 2016 , kovalkovas , c - 477 / 16 , ecli : eu : c : 2016 : 861 , paragraph 36 ; judgment of the court of justice of 10 november 2016 , ppu poltorak , c - 452 / 16 , ecli : eu : c : 2016 : 858 , paragraph 35 ; and judgment of the court of justice of 22 december 2010 , deb , c - 279 / 09 , ecli : eu : c : 2010 : 811 , paragraph 58 . 11 judgment of the court of justice of 27 february 2018 , associação sindical dos juízes portugueses v tribunal de contas c - 64 / 16 , ecli : eu : c : 2018 : 117 , paragraphs 31 , 40 - 41 . 12 communication from the commission ' a new eu framework to strengthen the rule of law ' , com 158 final , annex i . ### the rule of law requires that all public powers act within the constraints set out by law , in accordance with the principles of democracy and respect for fundamental rights , and under the control of independent and impartial courts . it requires , in particular , that the principles of legality7 , including a transparent , accountable and democratic process for enacting legislation , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , access to justice and effective judicial protection before independent and impartial courts11 are respected12 . __________________ 7 judgment of the court of justice of 29 april 2004 , cas succhi di frutta , c - 496 / 99 pecli : eu : c : 2004 : 236 , paragraph 63 . 8 judgment of the court of justice of 12 november 1981 , amministrazione delle finanze dello stato v srl meridionale industria salumi and others ditta italo orlandi & figlio and ditta vincenzo divella v amministrazione delle finanze dello stato . joined cases 212 to 217 / 80 , ecli : eu : c : 1981 : 270 , paragraph 10 . 9 judgment of the court of justice of 21 september 1989 , hoechst , joined cases 46 / 87 and 227 / 88 , ecli : eu : c : 1989 : 337 , paragraph 19 . 10 judgment of the court of justice of 10 november 2016 , kovalkovas , c - 477 / 16 , ecli : eu : c : 2016 : 861 , paragraph 36 ; judgment of the court of justice of 10 november 2016 , ppu poltorak , c - 452 / 16 , ecli : eu : c : 2016 : 858 , paragraph 35 ; and judgment of the court of justice of 22 december 2010 , deb , c - 279 / 09 , ecli : eu : c : 2010 : 811 , paragraph 58 . 11 judgment of the court of justice of 27 february 2018 , associação sindical dos juízes portugueses v tribunal de contas c - 64 / 16 , ecli : eu : c : 2018 : 117 , paragraphs 31 , 40 - 41 . 12 communication from the commission ' a new eu framework to strengthen the rule of law ' , com 158 final , annex i .


### the member state concerned may , at any time , submit to the commission evidence to show that the generalised deficiency as regards the rule of law has been remedied or has ceased to exist . ### the member state concerned may , at any time , submit to the commission evidence to show that the generalised deficiency as regards the rule of law has sufficiently been remedied or has ceased to exist .


### the effective and timely cooperation with the european anti - fraud office and with the european public prosecutor’s office in their investigations or prosecutions pursuant to their respective legal acts and to the principle of loyal cooperation . ### the effective and timely cooperation with the european anti - fraud office and , subject to the participation of the member state concerned , with the european public prosecutor’s office in their investigations or prosecutions pursuant to their respective legal acts and to the principle of loyal cooperation .


### the identification of a generalised deficiency requires a qualitative assessment by the commission . that assessment could be based on the information from all available sources and recognized institutions , including judgments of the court of justice of the european union , reports of the court of auditors , and conclusions and recommendations of relevant international organisations and networks , such as the bodies of the council of europe and the european networks of supreme courts and councils for the judiciary . ### the identification of a generalised deficiency requires an impartial , transparent and qualitative assessment by the commission . that assessment should be based on the information from all available sources and recognized institutions , including conditions and timing of the member state’s adoption , implementation and enforcement of the relevant chapters of the acquis , judgments of the court of justice of the european union , reports of the court of auditors , resolutions of the european parliament and conclusions and recommendations of relevant international organisations and networks , such as the bodies of the council of europe and the european networks of supreme courts and councils for the judiciary .


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


### –30 % for legal migration and integration ; ### –40% for legal migration and inclusion ;


### measures in and in relation to third countries supported through the fund should complement other actions outside the union supported through the union’s external financing instruments . in particular , in implementing such actions , full coherence should be sought with the principles and general objectives of the union’s external action and foreign policy in respect of the country or region in question and the union international commitments . in relation to the external dimension , the fund should target support to enhance cooperation with third countries and to reinforce key aspects of migration management in areas of interest to the union ' s migration policy . ### measures in and in relation to third countries supported through the fund should complement other actions outside the union supported through the union ' s external financing instruments , based on an all - round approach of respect for human rights and for the principle of policy coherence for development , and with the goal of tackling the root causes of migration . in particular , in implementing such actions , full coherence should be sought with the principles and general objectives of the union’s external action and development policy in respect of the country or region in question and the union international commitments . in relation to the external dimension , the fund should target support to enhance cooperation with third countries and to reinforce key aspects in order to tackle the causes of migration , including combating poverty , inequality , and climate change and mitigation of its effects .


### to support legal migration to the member states including to contribute to the integration of third - country nationals ; ### to support the creation of safe legal routes for migration to the member states including to contribute to the inclusion and reception of third - country nationals ;


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


### these initial amounts should form a basis for member states’ long - term investments . to take account of changes in migration flows and to address needs in the management of asylum and reception systems and integration of legally staying third - country nationals , and counter irregular migration through efficient and sustainable return policy , an additional amount should be allocated to the member states at mid - term taking into account the absorption rates . this amount should be based on the latest available statistical data as set out in annex i to reflect the changes in the baseline situation of member states . ### these initial amounts should form a basis for member states’ long - term investments . to take account of changes in migration flows and to address needs in the management of asylum and reception systems and inclusion and reception of third - country nationals , and counter trafficking in migrants , an additional amount should be allocated to the member states at mid - term taking into account the absorption rates . this amount should be based on the latest available statistical data as set out in annex i to reflect the changes in the baseline situation of member states .


### the fund should support the efficient management of migration flows , inter alia by promoting common measures in the area of asylum , including member states’ efforts in receiving persons in need of international protection through resettlement and the transfer of applicants for or beneficiaries of international protection between member states , supporting integration strategies and a more effective legal migration policy , so as to ensure the union’s long - term competitiveness and the future of its social model and reduce incentives for irregular migration through a sustainable return and readmission policy . the fund should support the strengthening of cooperation with third countries to reinforce management of flows of persons applying for asylum or other forms of international protection , avenues on legal migration and to counter irregular migration and ensure sustainability of return and effective readmission to third countries . ### the fund should support the efficient management of migration flows , inter alia by promoting common measures in the area of asylum , including member states’ efforts in receiving persons through resettlement and transfer between member states , supporting inclusion and reception strategies and a more effective legal migration policy in tackling the root causes of migration in countries of origin . the fund should support the strengthening of cooperation with third countries , based on an approach involving policy coherence for development , respect for human rights and achieving the sustainable development goals in order to improve management of migration flows , including persons applying for asylum or other forms of international protection , as well as to open up safe legal routes for migration and take action against trafficking in migrants .


### –30 % for legal migration and integration ; ### –40 % for the creation of safe legal migration routes ;


### to contribute to countering irregular migration and ensuring effectiveness of return and readmission in third countries . ### to contribute to combating trafficking in migrants and tackling the root causes of migration in third countries .


### in order to increase efficiency , achieve the greatest union added value and to ensure the consistency of the union’s response to foster the integration of third - country nationals , actions financed under the fund should be specific and complementary to actions financed under the european social fund plus and the european regional development fund . measures financed under this fund should support measures tailor - made to the needs of third - country nationals that are generally implemented in the early stage of integration , and horizontal actions supporting member states’ capacities in the field of integration , whereas interventions for third - country nationals with a longer - term impact should be financed under the erdf and esf + . ### in order to increase efficiency , achieve the greatest union added value and to ensure the consistency of the union’s response to foster the integration of third - country nationals , actions financed under the fund should be specific and complementary to actions financed under the european social fund plus and the european regional development fund . measures financed under this fund should support measures tailor - made to the needs of third - country nationals that are generally implemented in the early stage of reception , and horizontal actions supporting member states’ capacities in the field of inclusion , whereas interventions for third - country nationals with a longer - term impact should be financed under the erdf and esf + . measures and actions financed in third countries should comply with the commitment to policy coherence for development and be designed to accord with the sustainable development goals , using an approach that complements actions financed by the european development fund .


### the proper practical operation of this regulation presupposes close communication between the competent national authorities involved , in particular in cases of simultaneous execution of a confiscation order in more than one member state . the competent national authorities should therefore consult each other whenever necessary . ### the proper practical operation of this regulation presupposes close communication and optimal cooperation between the competent national authorities involved , in particular in cases of simultaneous execution of a freezing or confiscation order in more than one member state . the competent national authorities should therefore consult each other whenever necessary .


### freezing and confiscation of instrumentalities and proceeds of crime are among the most effective means of combatting crime . the european union is committed to ensuring more effective identification , confiscation and re - use of criminal assets24 . _________________ 24 ' the stockholm programme – an open and secure europe serving and protecting the citizens ' , oj c 115 , 4 . 5 . 2010 , p . 1 . ### freezing and confiscation of instrumentalities and proceeds of crime are among the most effective means of combatting crime , as it deprives criminals from the proceeds of their illegal activities and terrorists from organizing an attack . the european union is committed to ensuring more effective identification , confiscation and re - use of criminal assets24 . _________________ 24 ' the stockholm programme – an open and secure europe serving and protecting the citizens ' , oj c 115 , 4 . 5 . 2010 , p . 1 .


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


### in case it is determined , when applying this provision or any other relevant provision of this regulation , that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country , provided the relevant cost data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits . ### in case it is determined that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions in the economy as a whole or in sectors of the economy , the normal value shall be based on a price or be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks for every factor of production . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country , including those in the union , and with sufficient level of international social and environmental standards , provided the relevant data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits . where an exporter can clearly demonstrate that its prices or costs of all factors of production are not affected by significant distortions , those prices or costs shall be used in the construction of its normal value .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent fairness of competition may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs of production , including taxes and the costs of primary and secondary raw materials , labour , and observation of environmental obligations are significantly below prices and costs of average operators in the international market because they are affected by government intervention for the purpose of unfair competitive advantages . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; interference of the state in enterprises with respect to prices or costs in order to unfairly achieve competitive advantages . it is further appropriate to provide that the commission issues reports and keeps them updated , describing the specific situation concerning practices of economic , tax , social and environmental dumping in trade partner countries of the union , or certain relevant sectors ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used .


### articles 2 and 2 of regulation 2016 / 1036 stipulate the basis on which normal value should be determined in the case of imports from non - market economy countries . in view of developments with respect to certain countries that are members of the wto , it is appropriate that , for those countries , normal value should be determined on the basis of paragraphs 1 to 6a of article 2 of regulation 2016 / 1036 , with effect from the date on which this regulation enters into force , and subject to the provisions of this regulation . in the case of countries which are , at the date of initiation , not members of the wto and listed in annex i of regulation 2015 / 7552 , norma1 value should be determined on the basis of paragraph 7 of article 2 of regulation 2016 / 1036 , as amended by this regulation . this regulation should be without prejudice to establishing whether or not any wto member is a market economy . __________________ 2 regulation 2015 / 755 of the european parliament and of the council of 29 april 2015 on common rules for imports from certain third countries . ### in view of developments in world trade , concerning also members of the wto , including their effects on domestic industry , it is appropriate to determine normal value on the basis of paragraphs 1 to 6a of article 2 of regulation 2016 / 1036 , with effect from the date on which this regulation enters into force , and subject to the provisions of this regulation . in the case of non - market - economy countries which are members of the wto or that , at the date of initiation , are not members of the wto and listed in annex i of regulation 2015 / 7552 , norma1 value should be determined on the basis of paragraph 7 of article 2 of regulation 2016 / 1036 , as amended by this regulation . __________________ 2 regulation 2015 / 755 of the european parliament and of the council of 29 april 2015 on common rules for imports from certain third countries .


### the union industry may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 or a request for a review in accordance with article 11 . ### the union industry and trade unions may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 , request for a review in accordance with article 11 or request for a reinvestigation in accordance with article 12 . that report shall constitute sufficient evidence to justify the calculation of normal value in the complaint or request on the basis of the methodology specified in paragraph 6a . furthermore , where a significant portion of the complaining union industry is made up of smes , the normal value calculations in the complaint or request may be based on information related to costs of production in the union of the product concerned .


### the union industry may rely on the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 or a request for a review in accordance with article 11 . ### the union industry may rely on facts established in accordance with article 5 in the report referred to in point for the calculation of normal value when filing a complaint in accordance with article 5 or a request for a review in accordance with article 11 . if there is no report yet available , the commission shall investigate the complaint in accordance with the relevant articles .


### the market for cross - border parcel delivery services is diverse and complex , with different providers offering different services and prices depending on weight , size and format of the items sent as well as destination , added value features , such as traceability solutions , and the number of items sent . that diversity makes parcel delivery services hard to compare between different providers , both in terms of quality and price . furthermore , low volume senders , such as small and medium - sized enterprises and individuals are often not aware of the existence of different parcel delivery services offered . ### the market for cross - border parcel delivery services is diverse and complex and competitive , with different providers offering different services and prices depending on weight , size and format of the items sent as well as destination , added value features , such as traceability solutions , and the number of items sent . that diversity makes parcel delivery services hard to compare between different providers , both in terms of quality and price . furthermore , low volume senders , such as small and medium - sized enterprises and individuals are often not aware of the existence of different parcel delivery services offered .


### the supplier shall take all measures which could be expected in order to refrain from the use of the counter - performance other than money which the consumer has provided in exchange for the digital content and any other data collected by the supplier in relation to the supply of the digital content including any content provided by the consumer with the exception of the content which has been generated jointly by the consumer and others who continue to make use of the content ; ### the supplier shall refrain from the use of the counter - performance other than money which the consumer has provided in exchange for the digital content and any other data collected by the supplier in relation to the supply of the digital content including any content provided by the consumer with the exception of the content which has been generated jointly by the consumer and others who continue to make use of the content , insofar as the supplier is able to determine which counter - performance and which data had been provided by the consumer . the supplier shall not process more personal data than necessary for the execution of the contract for the mere purpose of being able to link it to the consumer in case he or she terminates the contract . where personal data of the consumer have been transferred or disclosed to third parties , the supplier shall inform those of the termination of the contract . the supplier shall inform the consumer about those third parties if the consumer requests it ;


### this directive shall not apply to digital content provided against counter - performance other than money to the extent the supplier requests the consumer to provide personal data the processing of which is strictly necessary for the performance of the contract or for meeting legal requirements and the supplier does not further process them in a way incompatible with this purpose . it shall equally not apply to any other data the supplier requests the consumer to provide for the purpose of ensuring that the digital content is in conformity with the contract or of meeting legal requirements , and the supplier does not use that data for commercial purposes . ### this directive shall not apply to digital content provided without any counter - performance other than money to the extent the supplier only requests the consumer to provide personal data the processing of which is necessary for the performance of the contract or for meeting legal requirements and the supplier does not further process them in a way incompatible with this purpose . it shall equally not apply to any other data the supplier is entitled to request the consumer to provide for the purpose of ensuring that the digital content is in conformity with the contract or of meeting legal requirements , and the supplier does not use that data for other purposes .


### be updated as stipulated by the contract . ### be updated as stipulated by the contract or as necessary to guarantee the characteristics provided for in points and , in particular continuity and security .


### the supplier shall take all measures which could be expected in order to refrain from the use of other counter - performance than money which the consumer has provided in exchange for the digital content and any other data collected by the supplier in relation to the supply of the digital content including any content provided by the consumer ; ### the supplier shall refrain from the use of other counter - performance than money which the consumer has provided in exchange for the digital content and any other data collected by the supplier in relation to the supply of the digital content including any content provided by the consumer ;


### the supplier shall be liable to the consumer for any economic damage to the digital environment of the consumer caused by a lack of conformity with the contract or a failure to supply the digital content . damages shall put the consumer as nearly as possible into the position in which the consumer would have been if the digital content had been duly supplied and been in conformity with the contract . ### the supplier shall be liable to the consumer for any material and non - material damage to the consumer caused by a lack of conformity with the contract or a failure to supply the digital content . damages shall put the consumer as nearly as possible into the position in which the consumer would have been if the digital content had been duly supplied and been in conformity with the contract .


### this directive shall apply to any contract where the supplier supplies digital content to the consumer or undertakes to do so and , in exchange , a price is to be paid or the consumer actively provides counter - performance other than money in the form of personal data or any other data . ### this directive shall apply to any contract where the supplier supplies digital content to the consumer or undertakes to do so and , in exchange , a price is to be paid or the consumer freely choses to give consent to the processing of his or her personal data or any other data by the supplier , instead of paying a price , insofar this is possible in line with regulation 2016 , in particular with regard to article 7 thereof .


### where relevant , any existing international technical standards or , in the absence of such technical standards , applicable industry codes of conduct and good practices ; and ### any existing international technical standards or , in the absence of such technical standards , applicable industry codes of conduct and good practices ; and


### in order to conform with the contract , the digital content shall , where relevant : ### in order to conform with the contract , the digital content shall :


### the consumer is notified reasonably in advance of the modification by an explicit notice on a durable medium ; ### the consumer is notified reasonably in advance of the modification by an explicit notice ;


### protection should also extend to further categories of natural or legal persons , who , whilst not being ' workers ' within the meaning of article 45 tfeu , can play a key role in exposing breaches of the law and may find themselves in a position of economic vulnerability in the context of their work - related activities . for instance , in areas such as product safety , suppliers are much closer to the source of possible unfair and illicit manufacturing , import or distribution practices of unsafe products ; in the implementation of union funds , consultants providing their services are in a privileged position to draw attention to breaches they witness . such categories of persons , including self - employed persons providing services , freelance , contractors , sub - contractors and suppliers , are typically subject to retaliation in the form of early termination or cancellation of contract of services , licence or permit , loss of business , loss of income , coercion , intimidation or harassment , blacklisting / business boycotting or damage to their reputation . shareholders and persons in managerial bodies , may also suffer retaliation , for instance in financial terms or in the form of intimidation or harassment , blacklisting or damage to their reputation . protection should also be granted to candidates for employment or for providing services to an organisation who acquired the information on breaches of law during the recruitment process or other pre - contractual negotiation stage , and may suffer retaliation for instance in the form of negative employment references or blacklisting / business boycotting . ### protection should also extend to people facilitating the reporting , such as intermediaries and investigative journalists , who disclose potential or occurred breach , as well as further categories of natural or legal persons , who , whilst not being ' workers ' within the meaning of article 45 tfeu , can play a key role in exposing breaches of the law and may find themselves in a position of economic vulnerability in the context of their work or social or political - related activities . for instance , in areas such as product safety , suppliers are much closer to the source of possible unfair and illicit manufacturing , import or distribution practices of unsafe products ; in the implementation of union funds , consultants providing their services are in a privileged position to draw attention to breaches they witness . such categories of persons , including self - employed persons providing services , freelance , contractors , sub - contractors and suppliers , are typically subject to retaliation in the form of early termination or cancellation of contract of services , licence or permit , loss of business , loss of income , coercion , intimidation or harassment , blacklisting / business boycotting or damage to their reputation . shareholders and persons in managerial bodies , may also suffer retaliation , for instance in financial terms or in the form of intimidation or harassment , blacklisting or damage to their reputation . protection should also be granted to candidates for employment or for providing services to an organisation who acquired the information on breaches of law during the recruitment process or other pre - contractual negotiation stage , and may suffer retaliation for instance in the form of negative employment references or blacklisting / business boycotting .


### persons who report information about threats or harm to the public interest obtained in the context of their work - related activities make use of their right to freedom of expression . the right to freedom of expression , enshrined in article 11 of the charter of fundamental rights of the european union and in article 10 of the european convention on human rights , encompasses media freedom and pluralism . ### persons who report information about threats or harm to the public interest or the general interest obtained , inter alia in the context of their work - related activities , make use of their right to freedom of expression . the right to freedom of expression , enshrined in article 11 of the charter of fundamental rights of the european union and in article 10 of the european convention on human rights , encompasses media freedom and pluralism as well as the right to information .


### with a view to enhancing the enforcement of union law and policies in specific areas , this directive lays down common minimum standards for the protection of persons reporting on the following unlawful activities or abuse of law : ### this directive lays down common minimum standards for the protection of persons reporting on the following unlawful activities or abuse of law :


### member states shall ensure that any authority which has received a report but does not have the competence to address the breach reported transmits it to the competent authority and that the reporting person is informed . ### member states shall ensure that any authority which has received a report but does not have the competence to address the breach reported transmits it to the competent authority within reasonable time and that the reporting person is informed without delay .


### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . ### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of representatives from all relevant stakeholders . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies .


### the specific factor determining the member state responsible for the monitoring and registration of beneficial ownership information of trusts and similar legal arrangements should be clarified . in order to avoid that , due to differences in the legal systems of member states , certain trusts are not monitored or registered anywhere in the union , all trusts and similar legal arrangements should be registered where they are administered . in order to ensure the effective monitoring and registration of information on the beneficial ownership of trusts , cooperation among member states is also necessary . ### the specific factor determining the member state responsible for the monitoring and registration of beneficial ownership information of trusts and similar legal arrangements should be clarified . in order to avoid that , due to differences in the legal systems of member states , certain trusts are not monitored or registered anywhere in the union , all trusts and similar legal arrangements should be registered where they are created , administered or operated . in order to ensure the effective monitoring and registration of information on the beneficial ownership of trusts , cooperation among member states is also necessary .


### for the purposes of this article , a trust is considered to be administered in each member state where the trustees are established ; ### for the purpose of this article , a trust is considered to be created , administered or operated in a member state where one or more of the following conditions are fulfilled : it is created according to or governed by the law of the member state or has its ultimate court of appeal in the jurisdiction of the member state ; it is connected to the member state by : having one or more of the persons referred to in paragraph 1 or beneficial owners of the trust , as defined in article 3 , resident in that member state ; holding real estate or other tangible assets in the member state ; holding shares or voting rights or ownership interest in a legal entity incorporated in that member state ; holding a bank or payment account in a credit institution situated in that member state .


### the information referred to in paragraph 1 shall be held in a central register set up by the member state where the trust is administered ; ### the information referred to in paragraph 1 shall be held in a central register set up by the member state where the trust is created , administered or operated ;


### the information held in the register referred to in paragraph 3a of this article with respect to any other trusts than those referred to in article 7b of directive 2009 / 101 shall be accessible to any person or organisation that can demonstrate a legitimate interest . ### the following parts of the information held in the register referred to in paragraph 1a shall be publicly accessible : the name , the date of birth , the nationality , the country of residence and the nature and extent of the beneficial interest of the beneficial owner as defined in article 3 . for the purpose of this paragraph , access to the information on beneficial ownership shall be in accordance with data protection rules and made possible in machine - readable and open format as defined in directive 2013 / 37 / eu .


### the coordination group shall act by consensus , or , where necessary , vote by simple majority . there shall be one vote per member state . ### the coordination group shall act by consensus . there shall be one vote per member state .


### specific objective 1 : supporting effective european integrated border management at the external borders implemented by the european border and coast guard as a shared responsibility of the european border and coast guard agency and of the national authorities responsible for border management , to facilitate legitimate border crossings , to prevent and detect illegal immigration and cross - border crime and to effectively manage migratory flows ; ### specific objective 1 : supporting effective european integrated border management at the external borders implemented by the european border and coast guard as a shared responsibility of the european border and coast guard agency and of the national authorities responsible for border management , to facilitate legitimate border crossings , to prevent cross - border crime and to effectively manage migratory flows ;


### supporting effective european integrated border management at the external borders implemented by the european border and coast guard as a shared responsibility of the european border and coast guard agency and of the national authorities responsible for border management , to facilitate legitimate border crossings , to prevent and detect illegal immigration and cross - border crime and to effectively manage migratory flows ; ### supporting effective european integrated border management at the external borders implemented by the european border and coast guard as a shared responsibility of the european border and coast guard agency and of the national authorities responsible for border management , to facilitate legitimate border crossings , to prevent and detect irregular immigration and cross - border crime and to effectively manage migratory flows while ensuring respect for the right of asylum ;


### training in the field of border management carried out with the support of this instrument shall be based on the relevant harmonised and quality - assured european education and common training standards for border and coast guarding . ### training in the field of border management carried out with the support of this instrument shall be based on the relevant harmonised and quality - assured european education and common training standards for border and coast guarding , taking particularly into account human rights issues and international conventions on those subjects .


### in so far as is necessary in order to achieve the objectives set out in this regulation , and without prejudice to the respective competences of the member states and the institutions of the union , the agency may cooperate with the competent authorities of third countries and / or with international organisations . to this end , the agency may , subject to prior approval by the commission , establish working arrangements with the authorities of third countries and international organisations . these arrangements shall not create legal obligations incumbent on the union and its member states ### in so far as is necessary in order to achieve the objectives set out in this regulation , and without prejudice to the respective competences of the member states and the institutions of the union , the agency may cooperate with the competent authorities of third countries and / or with international organisations . to this end , the agency may establish working arrangements with the authorities of third countries and international organisations . these arrangements shall not create legal obligations incumbent on the union and its member states


### at least 20% of expenditure under operational programs covers the interventions linked to the objectives referred to in points and of article 42 ; ### at least 10% of expenditure under operational programs covers the interventions linked to the objectives referred to in points , and of article 42 ;


### to calculate the amounts referred to in points a ) and b ) , member states shall use the average standard salaries linked to an agricultural activity at national or regional level multiplied by the number of annual work units declared by the farmer concerned . ### to calculate the amounts referred to in points a ) and b ) , member states shall use the actual salary costs or the average standard salaries linked to an agricultural activity at national or regional level multiplied by the number of annual work units declared by the farmer concerned . member states may use indicators on standard salary costs associated with various types of farm , reference data on employment generation by farm type , as well as records containing work outsourced by farms .


### without prejudice to articles 19 to 24 , the basic income support shall be granted for each eligible hectare declared by a genuine farmer . ### without prejudice to articles 19 to 24 , the basic income support shall be granted for each eligible hectare declared by a farmer .


### these payments shall be granted to genuine farmers in respect of areas designated pursuant to article 32 of regulation no 1305 / 2013 . ### these payments shall be granted to farmers in respect of areas designated pursuant to article 32 of regulation no 1305 / 2013 based on the severity of the multiple constraints identified by the biophysical criteria ;


### when pursuing the specific objectives member states shall ensure simplification and performance of the cap support . ### when pursuing the specific objectives member states shall ensure equality to final beneficiaries , simplification and a reduction of the administrative burden in the delivery of the cap support .


### member states shall provide support for voluntary schemes for the climate and the environment under the conditions set out in this article and as further specified in their cap strategic plans . ### member states shall provide support for voluntary schemes for the climate , the environment and animal welfare under the conditions set out in this article and as further specified in their cap strategic plans .


### the indicative financial allocations for the coupled income support interventions referred to in subsection 1 of section 2 of chapter ii of title iii , shall be limited to a maximum of 10% of the amounts set out in annex vii . ### the indicative financial allocations for the coupled income support interventions referred to in subsection 1 of section 2 of chapter ii of title iii , shall be limited to a maximum of 16% of the amounts set out in annex vii .


### member states may decide in their cap strategic plan to use a certain share of the eafrd allocation to leverage support and upscale integrated strategic nature projects as defined under the [ life regulation ] and to finance actions in respect of transnational learning mobility of people in the field agricultural and rural development with a focus on young farmers , in accordance with the [ erasmus regulation ] . ### member states may decide in their cap strategic plan to use a certain share of the eafrd allocation to finance actions in respect of transnational learning mobility of people in the field agricultural and rural development with a focus on young farmers , in accordance with the [ erasmus regulation ] .


### installation of young farmers and rural business start - up ; ### installation of young and new farmers and rural business start - up ;


### environmental , climate and other management commitments ; ### encouraging environmental sustainability , climate mitigation and adaption measures including appropriate protection of wetlands and organic soils together with other management commitments beneficial to the environment ;


### member states should set farm advisory services for the purpose of improving the sustainable management and overall performance of agricultural holdings and rural businesses , covering economic , environmental and social dimensions , and to identify the necessary improvements as regards all measures at farm level provided for in the cap strategic plans . these farm advisory services should help farmers and other beneficiaries of cap support to become more aware of the relationship between farm management and land management on the one hand , and certain standards , requirements and information , including environmental and climate ones , on the other hand . the list of the latter includes standards applying to or necessary for farmers and other cap beneficiaries and set in the cap strategic plan , as well as those stemming from the legislation on water , on the sustainable use of pesticides , as well as the initiatives to combat antimicrobial resistance and the management of risks . in order to enhance the quality and effectiveness of the advice , member states should integrate advisors within the agricultural knowledge and innovation systems , in order to be able to deliver up - to - date technological and scientific information developed by research and innovation . ### member states should set farm advisory services for the purpose of improving the sustainable management and overall performance of agricultural holdings and rural businesses , covering economic , environmental and social dimensions , and to identify the necessary improvements as regards all measures at farm level provided for in the cap strategic plans . these farm advisory services should help farmers and other beneficiaries of cap support to become more aware of the relationship between farm management and land management on the one hand , and certain standards , requirements and information , including animal welfare , environmental and climate ones , on the other hand . the list of the latter includes standards applying to or necessary for farmers and other cap beneficiaries and set in the cap strategic plan , as well as those stemming from the legislation on water , on the sustainable use of pesticides , as well as the initiatives to combat antimicrobial resistance and the management of risks . in order to enhance the quality and effectiveness of the advice , member states should integrate advisors within the agricultural knowledge and innovation systems , in order to be able to deliver up - to - date technological and scientific information developed by research and innovation .


### member states may decide to not apply selection criteria for investment interventions clearly targeting environmental purposes or realised in connection with restoration activities . ### member states shall , in addition , apply selection criteria for investment interventions clearly targeting environmental purposes or realised in connection with restoration activities .


### the use of common definitions entirely set at union level has caused certain difficulties for member states to cater their own specificities at national , regional , and local level . member states should therefore be given the flexibility to specify certain definitions in their cap strategic plan . in order to ensure a common level playing field , a certain framework has , however , to be set at union level constituting the necessary essential elements to be included in those definitions . ### member states should be given the flexibility to specify certain definitions in their cap strategic plan . in order to ensure a framework of objectives and requirements and a common level playing field , however , the necessary essential elements to be included in those framework definitions should be established at union level .


### 65% of the eligible expenditure for payments under article 66 ; ### 75% of the eligible expenditure for payments under article 66 ;


### the commission is empowered to adopt delegated acts in accordance with article 138 supplementing this regulation with rules for good agricultural and environmental condition , including establishing the elements of the system of the ratio of permanent grassland , the year of reference and the rate of conversion under gaec 1 as referred to in annex iii , the format and additional minimum elements and functionalities of the farm sustainability tool for nutrients . ### the commission is empowered to adopt delegated acts in accordance with article 138 supplementing this regulation with rules for good agricultural and environmental condition , including establishing the elements of the system of the ratio of permanent grassland , the year of reference and the rate of conversion under gaec 1 as referred to in annex iii , and also to authorise exemptions to compliance to conditionality , rules shall be established in cases of exceptional circumstances outside of beneficiaries control as well as incidences of ' force majeure ' , the format and additional minimum elements and functionalities of the farm sustainability tool for nutrients in member states where this tool is being introduced ;


### member states shall reduce the amount of direct payments to be granted to a farmer pursuant to this chapter for a given calendar year exceeding eur 60 000 as follows : ### member states may reduce the amount of basic income support to be granted to a farmer pursuant to this chapter for a given calendar year exceeding a financial ceiling set by the member state


### promotion and marketing of the products of the fruit and vegetables sector , whether in a fresh or processed form ; those objectives relate to the specific objectives set out in points and of article 6 ; ### promotion and marketing of the products of the fruit and vegetables sector , whether in a fresh or processed form ; those objectives relate to the specific objectives set out in points , and of article 6 ;


### investments in large infrastructures not being part of local development strategies ; ### investments in large infrastructures ;


### in respect of the main objectives laid down in annex iii member states may prescribe standards additional to those laid down in that annex against those main objectives . however , member states shall not define minimum standards for main objectives other than the main objectives laid down in annex iii . ### in order to protect the commonality of the cap and to ensure a level playing field respect of the main objectives laid down in annex iii member states may not prescribe standards additional to those laid down in that annex against those main objectives . in addition , member states shall not define minimum standards for main objectives other than the main objectives laid down in annex iii .


### member states shall reduce the amount of direct payments to be granted to a farmer pursuant to this chapter for a given calendar year exceeding eur 60 000 as follows : ### member states may reduce the amount of basic income support for sustainability to be granted to a farmer pursuant to this chapter for a given calendar year as further specified in their cap strategic plans :


### coupled income support may only be granted to the following sectors and productions or specific types of farming therein where these are important for economic , social or environmental reasons : cereals , oilseeds , protein crops , grain legumes , flax , hemp , rice , nuts , starch potato , milk and milk products , seeds , sheepmeat and goatmeat , beef and veal , olive oil , silkworms , dried fodder , hops , sugar beet , cane and chicory , fruit and vegetables , short rotation coppice and other non - food crops , excluding trees , used for the production of products that have the potential to substitute fossil materials . ### coupled income support may only be granted to the following sectors and productions or specific types of farming therein where these are important for economic , social or environmental reasons : cereals , oilseeds , except for crops intended as agrofuels , protein crops , grain legumes , flax , hemp , rice , nuts , starch potato , milk and milk products , seeds , sheepmeat and goatmeat , beef and veal , olive oil , silkworms , dried fodder , hops , sugar beet , cane and chicory , fruit and vegetables , wine , chestnuts and honey .


### integrated production ; ### agroforestry and integrated production systems ;


### the farm advisory services shall cover economic , environmental and social dimensions and deliver up to date technological and scientific information developed by research and innovation . they shall be integrated within the interrelated services of farm advisors , researchers , farmer organisations and other relevant stakeholders that form the agricultural knowledge and innovation systems . ### the farm advisory services shall cover economic , environmental and social dimensions and deliver up - to - date technological and scientific information developed by research and innovation . they shall be integrated within the interrelated services of farm advisors , researchers , farmer organisations and other relevant stakeholders that form the agricultural knowledge and innovation systems . member states shall also support national , cross - border and european farmer - to - farmer knowledge - sharing programmes .


### to bolster environmental care and climate action and to contribute to the environmental - and climate - related objectives of the union ; ### to bolster environmental care , biodiversity and climate action and to contribute to the environmental - and climate - related objectives of the union ;


### as many rural areas in the union suffer from structural problems such as lack of attractive employment opportunities , skill shortages , underinvestment in connectivity , infrastructures and essential services , as well as youth drain , it is fundamental to strengthen the socio - economic fabric in those areas , in line with the cork 2 . 0 . declaration , particularly through job creation and generational renewal , by bringing the commission ' s jobs and growth to rural areas , promoting social inclusion , generational renewal and the development of ‘ smart villages’ across the european countryside . as indicated in the communication on ‘ the future of food and farming’ , new rural value chains such as renewable energy , the emerging bio - economy , the circular economy , and ecotourism can offer good growth and job potential for rural areas . in this context , financial instruments and the use of the investeu guarantee can play a crucial role for ensuring access to financing and for bolstering the growth capacity of farms and enterprises . there is a potential for employment opportunities in rural areas for legally staying third country nationals , promoting their social and economic integration especially in the framework of community - led local development strategies . ### as many rural areas in the union suffer from structural problems such as lack of attractive employment opportunities , skill shortages , underinvestment in connectivity , infrastructures and essential services , as well as youth drain , it is fundamental to strengthen the socio - economic fabric in those areas , in line with the cork 2 . 0 . declaration , particularly through job creation and generational renewal , by bringing jobs and growth to rural areas , promoting social inclusion , generational renewal across the european countryside . as indicated in the communication on ‘ the future of food and farming’ , new rural value chains such as renewable energy , the circular economy , and ecotourism can complement the economy and job potential for rural areas . there is a potential for employment opportunities in rural areas for legally staying third country nationals .


### member states may grant payments to small farmers as defined by member states by way of a round sum , replacing direct payments under this section and section 3 of this chapter . member states shall design the corresponding intervention in the cap strategic plan as optional for the farmers . ### member states shall grant payments to small farmers as defined by member states by way of a round sum set at a level appropriate to making these farms feasible in the long term , which replaces direct payments under this section and section 3 of this chapter . the sum shall not under any circumstances be less than the poverty threshold or the universal basic income in the member state . member states shall design the corresponding intervention in the cap strategic plan as optional for the farmers .


### member states shall support under this type of intervention genuine farmers who make commitments to observe , on eligible hectares , agricultural practices beneficial for the climate and the environment . ### member states shall support under this type of intervention genuine farmers who observe , on eligible hectares , agricultural practices beneficial for the climate and the environment . these measures shall aim to preserve and promote the necessary practical changes that make a positive contribution to the environment and climate .


### young farmers and new entrants still face significant barriers regarding access to land , high prices and access to credit . their businesses are more threatened by price volatility and their needs in terms of training in entrepreneurial and risk management skills are high . it is therefore essential to continue the support for the setting up of new businesses and new farms . member states should provide for a strategic approach and identify a clear and coherent set of interventions for generational renewal under the specific objective dedicated to this issue . to this aim , member states may set in their cap strategic plans preferential conditions for financial instruments for young farmers and new entrants , and should include in their cap strategic plan the ring - fencing of at least an amount corresponding to 2% of the annual direct payments ' envelope . an increase of the maximum amount of aid for the installation of young farmers and rural business start - ups , up to eur 100 . 000 , which can be accessed also through or in combination with financial instrument form of support , should be established . ### young farmers and new entrants still face significant barriers regarding access to land , high prices and access to credit . their businesses are more threatened by price volatility and their needs in terms of training in entrepreneurial and risk management skills are high . it is therefore essential to continue the support for the setting up of new businesses and new farms . member states should provide for a strategic approach and identify a clear and coherent set of interventions for generational renewal under the specific objective dedicated to this issue . to this aim , member states may set in their cap strategic plans preferential conditions for financial programmes for young farmers and new entrants , incentives for farm partnership models , and should include in their cap strategic plan the ring - fencing of at least an amount corresponding to 3% of the annual direct payments ' envelope . an increase of the maximum amount of aid for the installation of young farmers and rural business start - ups , up to eur 100 . 000 , which can be accessed also through or in combination with financial instrument form of support , should be established .


### member states shall grant support in the form of lump sums . support shall be limited to the maximum amount of eur 100 000 and may be combined with financial instruments . ### member states shall grant support in the form of lump sums . support shall be limited to the maximum amount of eur 100 000 . a significant proportion of the support shall be paid before start - up and after a project has been submitted . the remainder shall be paid out gradually over a five - year period .


### contribute to climate change mitigation and adaptation , as well as sustainable energy ; ### contribute to reducing greenhouse gases , climate change mitigation and adaptation ;


### when pursuing the specific objectives member states shall ensure simplification and performance of the cap support . ### when pursuing the specific objectives , member states shall ensure simplification and a reduction of the administrative burden for farmers .


### member states may grant payments to small farmers as defined by member states by way of a round sum , replacing direct payments under this section and section 3 of this chapter . member states shall design the corresponding intervention in the cap strategic plan as optional for the farmers . ### member states may grant payments to small farmers as defined by member states by way of a round sum , replacing direct payments under this section and section 3 of this chapter . member states shall design the corresponding intervention in the cap strategic plan as optional for the farmers . the payment for small farmers shall be tied to a territorial farming contract identifying the objectives , indicators and actions the aid is tied to .


### ' genuine farmers ' shall be defined in a way to ensure that no support is granted to those whose agricultural activity forms only an insignificant part of their overall economic activities or whose principal business activity is not agricultural , while not precluding from support pluri - active farmers . the definition shall allow to determine which farmers are not considered genuine farmers , based on conditions such as income tests , labour inputs on the farm , company object and / or inclusion in registers . ### ' genuine farmers ' shall be defined in a way to ensure that no support is granted to those whose agricultural activity forms only an insignificant part of their overall economic activities , while not precluding from support pluri - active farmers and taking into consideration the important role played farmers on mountain and other marginal land . member states shall establish a negative list of natural or legal persons , or a group of natural or legal persons , who shall not benefit under this regulation . the definition must preserve the family farm model of the european union .


### at least 30% of the total eafrd contribution to the cap strategic plan as set out in annex ix shall be reserved for interventions addressing the specific environmental - and climate - related objectives set out in points , and of article 6 of this regulation , excluding interventions based on article 66 . ### at least 30% of the total eafrd contribution to the cap strategic plan as set out in annex ix shall be reserved for interventions addressing the specific environmental - , climate - and animal welfare - related objectives set out in points , , and of article 6 of this regulation , excluding interventions based on article 66 .


### in the context of greater market - orientation of the cap , as outlined by the communication on ‘ the future of food and farming’ , market exposure , climate change and associated frequency and severity of extreme weather events , as well as sanitary and phytosanitary crises , may lead to risks of price volatility and increasing pressures on incomes . thus , although farmers are ultimately responsible for designing their on - farm strategies , a robust framework should be set up to ensure appropriate risk management . to this aim , member states and farmers may be able to draw on a union - level platform on risk management for capacity - building in order to provide farmers with adequate financial instruments for investments and access to working capital , training , knowledge transfer and advice . ### in the context of greater market - orientation of the cap , as outlined by the communication on ‘ the future of food and farming’ , market exposure , climate change and associated frequency and severity of extreme weather events , as well as sanitary and phytosanitary crises , may lead to risks of price volatility and increasing pressures on incomes . thus , a robust framework should be set up to regulate the markets and ensure appropriate climate and health risk management .


### these payments may be granted to farmers , forest holders and other land managers in respect of areas with disadvantages referred to in paragraph 1 . ### these payments shall be granted to farmers , forest holders and other land managers in respect of areas with disadvantages referred to in paragraph 1 .


### member states shall compensate beneficiaries for costs incurred and income foregone resulting from the commitments made . where necessary , they may also cover transaction costs . in duly justified cases , member states may grant support as a flat - rate or as a one - off payment per unit . payments shall be granted annually . ### member states shall compensate beneficiaries for costs incurred and income foregone resulting from the commitments made . where necessary , they may also cover transaction costs . in duly justified cases , member states may grant advance payments to incentivise uptake in innovative measures , support may be granted as a flat - rate or as a one - off payment per unit . payments shall be granted annually .


### 43% of the eligible public expenditure in the other regions . ### 53% of the eligible public expenditure in the other regions .


### member states may grant support for the installation of young farmers and rural business start - up under the conditions set out in this article and as further specified in their cap strategic plans with the view of contributing to the achievement of the specific objectives set out in article 6 . ### member states shall grant support for the installation of young farmers , new farmers , women farmers and rural business start - up under the conditions set out in this article and as further specified in their cap strategic plans with the view of contributing to the achievement of the specific objectives set out in article 6 .


### are different from commitments in respect of which payments are granted under article 65 . ### are different from commitments in respect of which payments are granted under article 65 . organic crops shall be exempted from this restriction .


### boosting products ' commercial value and quality , including improving product quality and developing products with a protected designation of origin , with a protected geographical indication or covered by a national quality schemes ; those objectives relate to the specific objective set out in point of article 6 ; ### boosting products ' commercial value through processing and improving the quality of both fresh and processed products , including improving product quality and developing production standards with a protected designation of origin , with a protected geographical indication or covered by a national quality schemes ; those objectives relate to the specific objective set out in point of article 6 ;


### ' permanent grassland and permanent pasture ' shall be land not included in the crop rotation of the holding for five years or more , used to grow grasses or other herbaceous forage naturally or through cultivation . it may include other species such as shrubs and / or trees which can be grazed or produce animal feed ; ### ' permanent grassland and permanent pasture ' shall be land not included in the crop rotation of the holding for five years or more , used to grow grasses or other forage naturally or through cultivation , including other shrub and / or tree species which can be grazed or produce livestock feed , but are effectively areas grazed by animals or maintained in a suitable state through a minimum of agricultural activity as defined by the member states ; member states may also decide to consider permanent grassland : land which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas , areas which can be grazed in which grasses and other herbaceous forage are not predominant or even present in the grazing areas but where animals graze or are kept in a suitable state through a minimum of agricultural activity ;


### coupled income support may only be granted to the following sectors and productions or specific types of farming therein where these are important for economic , social or environmental reasons : cereals , oilseeds , protein crops , grain legumes , flax , hemp , rice , nuts , starch potato , milk and milk products , seeds , sheepmeat and goatmeat , beef and veal , olive oil , silkworms , dried fodder , hops , sugar beet , cane and chicory , fruit and vegetables , short rotation coppice and other non - food crops , excluding trees , used for the production of products that have the potential to substitute fossil materials . ### coupled income support may only be granted to the following sectors and productions or specific types of farming therein where these are important for economic , social or environmental reasons : cereals , oilseeds , protein crops , grain legumes , flax , hemp , rice , nuts , starch potato , milk and milk products , seeds , sheepmeat and goatmeat , beef and veal , olive groves , silkworms , dried fodder , hops , sugar beet , cane and chicory , and fruit and vegetables .