### (56) in order to supplement or amend certain non-essential elements of this regulation , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of defining sustainability standards and laying down criteria for the recognition of existing sustainability standards; clarifying or adding items to be supplied as part of accompanying information; entrusting the euipo with the tasks related to scrutiny for opposition and the opposition procedure , operation of the register , publication of standard amendments to a product specification , consultation in the context of cancellation procedure , establishment and management of an alert system informing applicants about the availability of their geographical indication as a domain name , scrutiny of third country geographical indications other than geographical indications under the geneva act of the lisbon agreement on appellations of origin and geographical indications34 , proposed for protection pursuant to international negotiations or international agreements; establishing appropriate criteria for monitoring performance of the euipo in the execution of the tasks entrusted to it; laying down additional rules on the use of geographical indications to identify ingredients in processed products; laying down additional rules for determining the generic status of terms; establishing the restrictions and derogations with regard to the sourcing of feed in the case of a designation of origin; establishing restrictions and derogations with regard to the slaughtering of live animals or with regard to the sourcing of raw materials; laying down rules for determining the use of the denomination of a plant variety or of an animal breed; laying down rules which limit the information contained in the product specification for geographical indications and traditional specialities guaranteed; laying down further details of the eligibility criteria for traditional specialities guaranteed; laying down additional rules to provide for appropriate certification and accreditation procedures to apply in respect of product certification bodies; laying down additional rules to further detail protection of traditional specialities guaranteed; laying down for traditional specialities guaranteed additional rules for determining the generic status of terms , conditions for use of plant variety and animal breed denominations , and relation to intellectual property rights; defining additional rules for joint applications concerning more than one national territory and complementing the rules of the application process for traditional specialities guaranteed guaranteed; complementing the rules for the opposition procedure for traditional specialities guaranteed to establish detailed procedures and deadlines; supplementing the rules regarding the amendment application process for traditional specialities guaranteed; supplementing the rules regarding the cancellation process for traditional specialities guaranteed; laying down detailed rules relating to the criteria for optional quality terms; reserving an additional optional quality term , laying down its conditions of use; laying down derogations to the use of the term ‘mountain product’ and establishing the methods of production , and other criteria relevant for the application of that optional quality term , in particular , laying down the conditions under which raw materials or feedstuffs are permitted to come from outside the mountain areas. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law-making35. in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states’ experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts. ### (56) in order to supplement or amend certain non-essential elements of this regulation , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of defining sustainability standards and laying down criteria for the recognition of existing sustainability standards; clarifying or adding items to be supplied as part of accompanying information; entrusting the euipo with the tasks related to scrutiny of third country geographical indications other than geographical indications under the geneva act of the lisbon agreement on appellations of origin and geographical indications34 , proposed for protection pursuant to international negotiations or international agreements; establishing appropriate criteria for monitoring performance of the euipo in the execution of the tasks entrusted to it; laying down additional rules on the use of geographical indications to identify ingredients in processed products; laying down additional rules for determining the generic status of terms; establishing the restrictions and derogations with regard to the sourcing of feed in the case of a designation of origin; establishing restrictions and derogations with regard to the slaughtering of live animals or with regard to the sourcing of raw materials; laying down rules for determining the use of the denomination of a plant variety or of an animal breed; laying down rules which limit the information contained in the product specification for geographical indications and traditional specialities guaranteed; laying down further details of the eligibility criteria for traditional specialities guaranteed; laying down additional rules to provide for appropriate certification and accreditation procedures to apply in respect of product certification bodies; laying down additional rules to further detail protection of traditional specialities guaranteed; laying down for traditional specialities guaranteed additional rules for determining the generic status of terms , conditions for use of plant variety and animal breed denominations , and relation to intellectual property rights; defining additional rules for joint applications concerning more than one national territory and complementing the rules of the application process for traditional specialities guaranteed guaranteed; complementing the rules for the opposition procedure for traditional specialities guaranteed to establish detailed procedures and deadlines; supplementing the rules regarding the amendment application process for traditional specialities guaranteed; supplementing the rules regarding the cancellation process for traditional specialities guaranteed; laying down detailed rules relating to the criteria for optional quality terms; reserving an additional optional quality term , laying down its conditions of use; laying down derogations to the use of the term ‘mountain product’ and establishing the methods of production , and other criteria relevant for the application of that optional quality term , in particular , laying down the conditions under which raw materials or feedstuffs are permitted to come from outside the mountain areas. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law-making35. in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states’ experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts.


### 2. the sustainability undertakings referred to in paragraph (1) shall be included in the product specification. ### 2. the sustainability undertakings referred to in paragraph (1) and the extent to which they are binding shall be annexed to the product specification.


### 4. the commission shall be empowered to adopt delegated acts in accordance with article 84 defining sustainability standards in different sectors and laying down criteria for the recognition of existing sustainability standards to which producers of products designated by geographical indications may adhere. ### 4. the commission may adopt delegated acts laying down criteria for the recognition of existing sustainability standards to which producers of products designated by geographical indications may adhere.


### 2. the commission shall be empowered to adopt delegated acts in accordance with article 84 supplementing this regulation by provisions clarifying the requirements or listing additional items of the accompanying documentation to be supplied. ### deleted


### 5. the commission shall be empowered to adopt delegated acts in accordance with article 84 supplementing this regulation by rules on entrusting euipo with the tasks set out in this article. ### deleted


### 10. the commission shall be empowered to adopt delegated acts , in accordance with article 84 supplementing this regulation by detailed procedures and deadlines for the opposition procedure , for the official submission of comments by national authorities and persons with a legitimate interest , which will not trigger the opposition procedure and by rules on entrusting its tasks set out in this article to euipo. ### 10. the commission shall be empowered to adopt delegated acts , in accordance with article 84 supplementing this regulation by detailed procedures and deadlines for the opposition procedure , for the official submission of comments by national authorities and persons with a legitimate interest , which will not trigger the opposition procedure.


### 7. the commission shall be empowered to adopt delegated acts in accordance with article 84 supplementing this regulation by rules on entrusting euipo to operate the union register of geographical indications. ### deleted


### 10. the commission shall be empowered to adopt delegated acts in accordance with article 84 supplementing this regulation by provisions entrusting euipo with the publication of standard amendments referred to in paragraph (9). ### deleted


### 6. the commission shall be empowered to adopt delegated acts in accordance with article 84 supplementing this regulation by rules entrusting euipo with the tasks set out in paragraph (5). ### deleted


### 2. the geographical indication designating a product ingredient shall not be used in the food name of the related processed product , except in cases of an agreement with a producer group representing two thirds of the producers. ### 2. the geographical indication designating a product ingredient shall not be used in the food name of the related processed product , except in cases of an agreement with a producer group representing the majority of the producers.


### 1. a producer group shall be set up on the initiative of interested stakeholders , including farmers , farm suppliers , intermediate processors and final processors , as specified by the national authorities and according to the nature of the product concerned. member states shall verify that the producer group operates in a transparent and democratic manner and that all producers of the product designated by the geographical indication enjoy right of membership in the group. member states may provide that public officials , and other stakeholders such as consumer groups , retailers and suppliers , also participate in the works of the producer group. ### 1. a producer group shall be set up on the initiative of interested stakeholders , including farmers , farm suppliers , intermediate processors and final processors , as specified by the national authorities and according to the nature of the product concerned. member states shall verify that all producers of the product designated by the geographical indication enjoy right of membership in the group. member states may provide that public officials also participate in the work of the producer group , and may specify how other stakeholders such as consumer groups , retailers and suppliers contribute.


### b) take legal action to ensure protection of the geographical indication and of the intellectual property rights that are directly connected with it; ### b) take legal action to ensure protection of the geographical indication and of the intellectual property rights that are directly connected with it , and claim damages;


### take legal action to ensure protection of the geographical indication and of the intellectual property rights that are directly connected with it; ### take legal action to ensure protection of the geographical indication and of the intellectual property rights that are directly connected with it , and claim damages;


### 2. a producer group may be designated as recognised producer group subject to a prior agreement concluded between at least two-thirds of the producers of the product bearing a geographical indication , accounting for at least two-thirds of the production of that product in the geographical area referred to in the product specification. as an exception , an authority , as referred to in article 8(2) , and a single producer , as referred to in article 8(3) , shall be deemed to be a recognised producer group. ### 2. a producer group may be designated as recognised producer group when it comprises the majority of the producers of the product bearing a geographical indication and at least two-thirds of the production of that product in the geographical area referred to in the product specification. as an exception , an authority , as referred to in article 8(2) , and a single producer , as referred to in article 8(3) , shall be deemed to be a recognised producer group.


### 2. a producer group may be designated as recognised producer group subject to a prior agreement concluded between at least two-thirds of the producers of the product bearing a geographical indication , accounting for at least two-thirds of the production of that product in the geographical area referred to in the product specification. as an exception , an authority , as referred to in article 8(2) , and a single producer , as referred to in article 8(3) , shall be deemed to be a recognised producer group. ### 2. a producer group may be designated as recognised producer group when it comprises the majority of the producers of the product bearing a geographical indication , accounting for at least two-thirds of the production of that product in the geographical area referred to in the product specification. as an exception , an authority , as referred to in article 8(2) , and a single producer , as referred to in article 8(3) , shall be deemed to be a recognised producer group.


### 4. the powers and responsibilities referred to in paragraph 2 shall be subject to a prior agreement concluded between at least two-thirds of the producers of the product designated by a geographical indication , accounting for at least two-thirds of the production of that product in the geographical area referred to in the product specification. ### deleted


### 3. the commission shall be empowered to adopt delegated acts in accordance with article 84 supplementing this regulation by provisions entrusting euipo to establish and manage a domain name information and alert system that would provide the applicant , upon the submission of an application for a geographical indication , with information about the availability of the geographical indication as a domain name and , on optional basis , the registration of a domain name identical to their geographical indication. that delegated act shall also include the obligation for registries of country-code top-level domain names , established in the union , to provide euipo with the relevant information and data. ### deleted


### 3. the commission shall be empowered to adopt delegated acts in accordance witharticle84 supplementing this regulation by provisions entrusting euipo to establish and manage a domain name information and alert system that would provide the applicant , upon the submission of an application for a geographical indication , with information about the availability of the geographical indication as a domain name and , on optional basis , the registration of a domain name identical to their geographical indication. that delegated act shall also include the obligation for registries of country-code top-level domain names , established in the union , to provide euipo with the relevant information and data. ### deleted


### 2. in the case of products originating in the union that are marketed under a geographical indication , the union symbol associated with it shall appear on the labelling and advertising material. the geographical indication shall appear in the same field of vision as the union symbol. the labelling requirements laid down in article 13(1) of regulation (eu) no 1169/2011 for the presentation of mandatory particulars shall apply to the geographical indication. ### 2. in the case of products originating in the union that are marketed under a geographical indication , the union symbol associated with it shall appear on the labelling , on the presentation pages of retail websites and on advertising material. the geographical indication shall appear in the same field of vision as the union symbol. the labelling requirements laid down in article 13(1) of regulation (eu) no 1169/2011 for the presentation of mandatory particulars shall apply to the geographical indication.


### the abbreviations ‘pdo’ or ‘pgi’ , corresponding to the indications ‘protected designation of origin’ or ‘protected geographical indication’ , may appear on the labelling of wine and of agricultural products designated by a geographical indication. ### the abbreviations ‘pdo’ or ‘pgi’ , corresponding to the indications ‘protected designation of origin’ or ‘protected geographical indication’ , shall appear on the labelling of wine and of agricultural products designated by a geographical indication.


### 3. member states shall take appropriate administrative and judicial steps to prevent or stop the use of names of products or services that are produced , operated or marketed in their territory and that contravenes the protection of geographical indications provided for in article 27 and article 28. ### 3. member states shall take appropriate administrative and judicial steps to prevent or stop the use of names of products or services that are produced , operated or marketed in their territory , whether physically or through retail websites , and that contravenes the protection of geographical indications provided for in article 27 and article 28.


### g) any specific labelling rule for the product in question; ### g) any specific rule on the labelling and presentation of essential information in brick-and-mortar retail or e-commerce for the product in question;


### any specific labelling rule for the product in question; ### any specific rule on the labelling and presentation of essential information in brick-and-mortar retail or e-commerce for the product in question;


### a) the main points of the product specification , namely: the name , a description of the product , including , where appropriate , specific rules concerning packaging and labelling and a concise definition of the geographical area; ### a) the main points of the product specification , namely: the name , a description of the product , including , where appropriate , specific rules concerning packaging , labelling and commercial presentation , including on retail websites , together with a concise definition of the geographical area;


### the main points of the product specification , namely: the name , a description of the product , including , where appropriate , specific rules concerning packaging and labelling and a concise definition of the geographical area; ### the main points of the product specification , namely: the name , a description of the product , including , where appropriate , specific rules concerning packaging , labelling and commercial presentation , including on retail websites , and a concise definition of the geographical area;


### 3. the commission shall be empowered to adopt delegated acts in accordance with article 84 supplementing the rules regarding the procedure for the amendment of a product specification. ### deleted


### 2. the power to adopt delegated acts referred to in article 12(4) , article 14(2) , article 15(6) , article 17(5) , article 19(10) , article 23(7) , article 25(10) , article 26(6) , article 28(3) , article 29(3) , article 34(3) , article 46(1) , article 46 , article 47(1) , article 48(6) , article 48(7) , article 49(4) , article 51(3) , article 55(5) , article 56(2) , article 73(10) , article 69(4) , article 70(2) , article 58(3) , article 62(10) , article 67(3) , article 68(6) , article 76(4) , article 77(1) , article 78(3) , article 78(4) , shall be conferred on the commission for a period of 7 years from [date of entry into force of this regulation]. the commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the seven-year period. the delegation of power shall be tacitly extended for periods of an identical duration , unless the european parliament or the council opposes such extension not later than three months before the end of each period. ### 2. the power to adopt delegated acts referred to in article 15(6) , article 19(10) , article 28(3) , article 29(3) , article 46(1) , article 47(1) , article 48(6) , article 48(7) , article 49(4) , article 51(3) , article 55(5) , article 56(2) , article 73(10) , article 69(4) , article 70(2) , article 58(3) , article 62(10) , article 68(6) , article 76(4) , article 77(1) , article 78(3) , article 78(4) , shall be conferred on the commission for a period of 3 years from [date of entry into force of this regulation]. the commission shall draw up a report in respect of the delegation of power not later than three months before the end of the three-year period.


### 2. the power to adopt delegated acts referred to in article 12(4) , article 14(2) , article 15(6) , article 17(5) , article 19(10) , article 23(7) , article 25(10) , article 26(6) , article 28(3) , article 29(3) , article 34(3) , article 46(1) , article 46 , article 47(1) , article 48(6) , article 48(7) , article 49(4) , article 51(3) , article 55(5) , article 56(2) , article 73(10) , article 69(4) , article 70(2) , article 58(3) , article 62(10) , article 67(3) , article 68(6) , article 76(4) , article 77(1) , article 78(3) , article 78(4) , shall be conferred on the commission for a period of 7 years from [date of entry into force of this regulation]. the commission shall draw up a report in respect of the delegation of power not later than 9 months before the end of the seven-year period. the delegation of power shall be tacitly extended for periods of an identical duration , unless the european parliament or the council opposes such extension not later than 3 months before the end of each period. ### 2. the power to adopt delegated acts referred to in article 15(6) , article 19(10) , article 28(3) , article 29(3) , article 46(1) , article 46 , article 47(1) , article 48(6) , article 48(7) , article 49(4) , article 51(3) , article 55(5) , article 56(2) , article 73(10) , article 69(4) , article 70(2) , article 58(3) , article 62(10) , article 68(6) , article 76(4) , article 77(1) , article 78(3) , article 78(4) , shall be conferred on the commission for a period of 3 years from [date of entry into force of this regulation]. the commission shall draw up a report in respect of the delegation of power not later than 3 months before the end of the three-year period.


### where wine , agricultural products or spirit drinks are designated by a geographical indication the indications ‘protected designation of origin’ or ‘protected geographical indication’ shall appear on the labelling of wine , the indications ‘protected designation of origin’ or ‘protected geographical indication’ may appear on the labelling of agricultural products and the indication ‘geographical indication’ may appear on the labelling of spirit drinks , respectively. ### where wine , agricultural products or spirit drinks are designated by a geographical indication the indications ‘protected designation of origin’ or ‘protected geographical indication’ shall appear on the labelling of wine , the indications ‘protected designation of origin’ or ‘protected geographical indication’ shall appear on the labelling of agricultural products and the indication ‘geographical indication’ may appear on the labelling of spirit drinks , respectively.


### 9. after completion of the opposition procedure , the commission shall finalise its assessment of the union application for registration , taking into account any request for transitional periods , the outcome of the opposition procedure , any notice of comments received and any other matters arising subsequently to its scrutiny that may imply a change of the single document. ### 9. after completion of the opposition procedure , the commission shall finalise its assessment of the union application for registration , taking into account any request for transitional periods , the outcome of the opposition procedure and any other matters arising subsequently to its scrutiny that may imply a change of the single document.


### — having regard to the economic partnership agreements (epas) between the eu and african countries , ### — having regard to the economic partnership agreements (epas) , those concluded and those under negotiation , between the eu and 14 sub-saharan african countries and regions , and other eu free trade agreements with northern african countries ,


### — having regard to the partnership agreement between the european union , of the one part , and the members of the organisation of african , caribbean and pacific (oacps) states , of the other part , ### deleted


### a. whereas the 6th summit of the eu and the au in 2022 led to an agreement on ‘a joint vision for 2030’ , to drive our common priorities , shared values and international law , by preserving together our interests and common public goods , the security and prosperity of our citizens , the protection of human rights for all , gender equality and women’s empowerment in all spheres of life; whereas both unions recognised the importance of food security and nutrition; ### a. whereas the 6th summit of the eu and the au in 2022 led to an agreement on ‘a joint vision for 2030’ , to drive forward our common priorities , shared values and international law , by preserving together our interests and common public goods , the security and prosperity of our citizens , the protection of human rights for all , gender equality and women’s empowerment in all spheres of life; respect for democratic principles , good governance and the rule of law , actions to preserve the climate , environment and biodiversity , sustainable and inclusive economic growth , the fight against inequalities ,support for children’s rights , and the inclusion of women , young people and the most disadvantaged; whereas both unions recognised the importance of food security and nutrition; whereas this renewed partnership will be founded on geography , acknowledgment of history , human ties , respect for sovereignty , mutual respect and accountability , shared values , equality between partners and reciprocal commitments , the european union and african union have committed to strengthen their strategic partnership in order to face together new challenges such as climate change , post-pandemic recovery and building resilience to future shocks; whereas this partnership needs to be rethought and reshaped to make the relationship more equitable;


### b. whereas achieving the sdgs by 2030 must become the benchmark of success of eu-africa cooperation , including trade and investment relations; ### b. whereas achieving the sdgs by 2030 must become the central guideline and benchmark of success of eu-africa cooperation , including trade and investment relations;


### c. whereas the eu trade policy review acknowledges the strategic importance of deepening active and fair engagement with the african continent and african states; ### c. whereas the eu trade policy review acknowledges the strategic importance of deepening active and fair engagement with the african continent and african states; whereas europe and africa are neighbouring continents whose prosperity and stability are closely interlinked and need to be supported by closer economic integration between the two continents;


### d. whereas the eu is one of the most important trading partners for africa; whereas in 2020 over 61 % of goods imported to the eu from africa were primary goods and almost 70 % of goods exported from the eu to africa were manufactured goods; ### d. whereas the eu is one of the most important trading partners for africa; whereas 90 percent of african exports enter the eu market free of import duties; whereas in 2020 over 61 % of goods imported to the eu from africa were primary goods such as food and drink , raw materials and energy , and whereas in 2020 almost 70 % of goods exported from the eu to africa were manufactured goods; whereas such trade relations continue to lock the african continent at the lower value end of global value chains;


### e. whereas strengthening the intra-continental trade in africa is essential for its economic development; whereas the entry into force of the african continental free trade area (afcfta) gives new momentum to pan-african trade and investment opportunities; ### e. whereas the intra-continental trade in africa is way below its potential , and strengthening it is essential for africa’s economic structural transformation; whereas- in comparison - trade in goods between eu member states is continuously higher than extra-eu trade and was valued - in terms of exports - at eur 2 843 billion in 2020; whereas the entry into force of the african continental free trade area (afcfta) gives new momentum to pan-african trade and investment opportunities;


### f. whereas afcfta will become the world’s largest free-trade area in terms of participating countries – a market of 1.2 billion people , with a combined gdp of usd 3 trillion , which is expected to more than double by 2050; ### f. whereas afcfta will become the world’s largest free-trade area in terms of participating countries , including currently 54 out of 55 au member states , and started on 1 january 2021 to create a market of 1.2billion people , making it the eighth biggest economic bloc in the world with a combined gdp of usd 3 trillion , which is expected to more than double by 2050;


### h. whereas africa is a continent of hope and opportunity and perceived as such by a growing number of its young population; ### h. whereas africa is a continent of hope and opportunity and perceived as such by a growing number of its young population; whereas africa is today home to four times as many children as europe and 70 percent of the population of sub-saharan africa are under 30; whereas africa’s youth are in need of quality education , employment and business opportunities , and sustainable development; whereas europe’s population is aging and many economic sectors are already reporting shortages in qualified labour and report problems in finding apprentices;


### i. whereas climate change and environmental degradation are existential threats to africa , the eu and the entire world , and require joint responsiveness and substantive investments in sustainable and inclusive economic development and provision of access to public goods; ### i. whereas climate change and environmental degradation are existential threats to africa , the eu and the entire world , and require joint responsiveness and substantive investments in sustainable and inclusive economic development and provision of access to public goods; whereas eu has committed to turn itself into the first climate-neutral continent by 2050 and to decouple its economic growth from resource use; whereas africa contributes very little to greenhouse gas emissions , regardless of whether this is measured through historical , current or expected emissions and in total or per capita terms , while nevertheless areas of the continent are among those worst impacted by the effects of climate change; whereas cop27 will take place in the african state of egypt in 2022; whereas the transition to a decarbonised world must be just and equitable; whereas the eu has proposed to make energy access one of the main pillars of the green deal cooperation with africa;


### j. whereas the eu and the au have announced an africa-europe investment package of at least eur 150 billion that will support common ambitions for the 2030 agenda and the au agenda 2063 , composed of an investment , a health and an education part; ### j. whereas the eu and the au have announced an africa-europe investment package of at least eur 150 billion that will support common ambitions for the 2030 agenda and the au agenda 2063 , composed of an investment , a health and an education part; whereas these investments should not add to the debt burden of african countries;


### k. whereas the covid-19 pandemic and its economic consequences set back growth across africa in 2020 , may have thrown an additional 30 million people into poverty and exacerbated the prevalence of child labour; whereas the eu and the au have committed to supporting the full-fledged african health sovereignty , in order for the continent to respond to future public health emergencies , and to supporting , to this end , a common agenda for manufacturing vaccines , medicines , diagnostics , therapeutics and health products in africa , including investment in production capacities , voluntary technology transfers as well as strengthening of the regulatory framework to enable equitable access to vaccines , diagnostics and therapeutics; ### k. whereas the covid-19 pandemic and its economic consequences set back growth across africa in 2020 , may have thrown an additional 30 million people into poverty and exacerbated the prevalence of child labour; whereas post-pandemic recovery packages expressed a momentum of change of policy consensus; whereas the capacity to support recovery by public funds differs across regions , causing an imminent risk of exacerbating inequalities; whereas the current vaccination rate for the african continent is at only 11%; whereas the eu and the au have committed to supporting the full-fledged african health sovereignty , in order for the continent to respond to future public health emergencies , and to supporting , to this end , a common agenda for manufacturing vaccines , medicines , diagnostics , therapeutics and health products in africa ,including investment in production capacities , voluntary technology transfers as well as the strengthening of the regulatory framework to enable equitable access to vaccines , diagnostics and therapeutics;


### l. whereas the 6th eu-au-summit committed to engage constructively towards an agreement on a comprehensive wto response to the pandemic , which includes trade-related as well as intellectual-property-related aspects; ### l. whereas the 6th eu-au-summit underlined the urgency of the wtos contribution to the fight against the pandemic and to the recovery of the global economy , and committed to engage constructively towards an agreement on a comprehensive wto response to the pandemic , which includes trade-related as well as intellectual-property-related aspects;


### m. whereas according to the imf , as a result of the covid-19 crisis about 60 % of low-income countries are at high risk of or already in debt distress , while in 2015 that figure was below 30 %; ### m. whereas according to the imf , as a result of the covid-19 crisis , about 60 % of low-income countries are at high risk of , or are already in , debt distress , while in 2015 that figure was below 30 %; whereas governments of highly indebted countries both in europe and africa find it difficult to mobilise much needed investments into the pre-conditions of economic development such as a qualified work force and modern infrastructure;


### n. whereas the afcfta secretariat has established a usd 1 billion afcfta adjustment fund , funded by african export-import bank (afreximbank) , which is aimed at supporting countries that would in the short term experience revenue losses as a result of reducing or eliminating their tariffs; whereas afcfta estimates the actual need to be about usd 7 billion; ### n. whereas the afcfta secretariat has established a usd 1 billion afcfta adjustment fund , funded by african export-import bank (afreximbank) , which is aimed at supporting countries that would in the short term experience revenue losses as a result of reducing or eliminating their tariffs; whereas afcfta secretariat estimates the actual need to be about usd 7 billion;


### o. whereas eu-africa trade in agricultural products needs to be revised; ### o. whereas the eu is the world’s biggest importer and exporter of agri-food products; whereas the external dimension of eu companies’ agri-food supply chains had a negative impact on agricultural self-reliance and food security in africa; whereas despite the fact that africa has the most arable land in the world , au countries remained net food importers , partially due to the negative effects of european domestic subsidies and classifications on prices for products from african farmers , increased by tariffs that render african processed food exports uncompetitive; whereas eu-africa trade in agricultural products needs to be generally revised , in order to give room for sustainable agriculture reform models on both continents that will offer farmers dignity , strengthen domestic and regional resilience , and can mobilise the potential for both continents to produce abundant nutrition and become food self-sustaining , as well as contributors to food-security in other regions of the world; whereas family farming provides for up to 70% of food supply in the continent that is actually consumed by africans , rather than being farmed for the purpose of exporting;


### p. whereas the au’s digital transformation strategy for africa (2020-2030) envisions a secured digital single market for africa by 2030; ### p. whereas the au’s digital transformation strategy for africa (2020-2030) envisions a secured digital single market for africa by 2030 where movement of persons , services and capital is ensured and individuals and businesses can seamlessly access and engage in online activities in line with afcfta; whereas the digitalisation of trade and the promotion of paperless trading systems has significant potential to support small-scale traders , including women-led enterprises and young entrepreneurs; whereas substantive investment into internet infrastructure is needed to facilitate the digital participation of the african population , of which only 33 percent had access to the internet in 2021;


### 1. affirms that eu-africa trade and investment relations form part of our joint endeavour to achieve the un sdgs by 2030 and the objectives of the paris agreement; stresses that the modernisation of eu-au trade and investment relations must adhere to the principle of policy coherence for development and contribute to the recovery from the covid-19 pandemic by means of the green and digital transformation of the economies in both the eu and the au , as well as among our global trading partners; ### 1. affirms that eu-africa trade and investment relations form part of our joint endeavour to achieve the un sdgs by 2030 and the objectives of the paris agreement; stresses that the modernisation of eu-au trade and investment relations must adhere to the principle of policy coherence for development as enshrined in article 208 tfeu and contribute to the recovery from the covid-19 pandemic by means of the green and digital transformation of the economies in both the eu and the au , as well as among our global trading partners;


### 1. welcomes the positive shift in eu-africa relations towards a partnership on an equal footing , allowing both sides to pursue their own interests but also to identify common areas of cooperation; stresses that free , fair and sustainable trade facilitates inclusive economic growth and sustainable development and contributes to poverty reduction; highlights , in this regard , the importance of the new partnership agreement between the eu and the members of the organisation of african , caribbean and pacific states , the upcoming summit between the african union and the eu , and innovative initiatives such as the eu multi-stakeholder dialogue for sustainable cocoa; ### 1. while recognizing the potential positive shift in eu-africa relations towards a partnership on an equal footing , allowing both sides to pursue their own interests but also to identify common areas of cooperation , recalls that a deep asymmetry in eu and africa trade and economic relations still exists; stresses that the principle of policy coherence for development as enshrined in article 208 tfeu must remain the core of future eu-africa trade relations. and be implemented in line with the union’s commitment to achieving the un 2030 sustainable development goals; believes that priority should be given to human development , eradication of poverty , addressing social exclusion and inequality , promote gender equality , climate change mitigation and adaptation , fight against hunger and food sovereignty; highlights , in this regard , the importance of the new partnership agreement between the eu and the members of the organisation of african , caribbean and pacific states , the upcoming summit between the african union and the eu , and innovative initiatives such as the eu multi-stakeholder dialogue for sustainable cocoa;


### 2. stresses the importance of creating a solid infrastructural and industrial basis in africa , as laid down in the au agenda 2063 , aiming at the development of resilient value chains and high added value processing of raw materials in africa as a major avenue towards quality job creation; ### 2. stresses the importance of creating a solid infrastructural and industrial basis in africa , as laid down in the au agenda 2063 , aiming at the development of resilient value chains and high added value processing of raw materials in africa as a major avenue towards quality job creation; calls on the eu commission and european enterprises and investors , including the eib , to apply modern sustainable and wherever possible climate neutral production technologies in african industrialisation projects; stresses , in this regard , the need to support africa in tailoring its own independent macroeconomic , fiscal , monetary and trade policies and to provide for the right to legislate for the protection of its infant industries; stresses that efforts to protect the environment should be put at the centre of cooperation policies and programmes in support of industrialisation and the creation of decent jobs in africa , to be established and implemented by all responsible stakeholders from the two continents;


### 2. calls on the eu to actively support the new african continental free trade area (afcfta) ,which presents a major opportunity for african countries to boost inclusive growth , enable sustainable development , reduce poverty and improve living standards; notes that the afcfta paves the way for a fundamental transformation of the continent’s development prospects; ### 2. calls on the eu to actively support the integration and development of the african economy; acknowledges that the new african continental free trade area (afcfta) , could be an opportunity for african countries to boost fair trade and inclusive growth , enable sustainable development , reduce poverty and improve living standards; notes that the afcfta paves the way for a fundamental transformation of the continent’s development prospects; believes that , now more than ever after the covid-19 pandemic , on a global level , and especially with regard to africa , new approaches should be taken to re-shape economic , commercial and trade relations towards fair and ethical trade based on principles of solidarity and cooperation.


### 3. underlines that the eu needs an entirely new foundation for its economic partnership with africa , on equal grounds and based on mutual respect and understanding; ### 3. underlines that the eu needs an entirely new foundation for its economic partnership with africa , on equal grounds and based on mutual respect and understanding , taking into account the changing dynamics and addressing historical imbalances and shortcomings; emphasises the need for the eu and au to develop a mutually beneficial sustainable partnership based on solidarity and cooperation , and to reshape the economic , commercial and trade relations with the aim to empower africa , including by ensuring fair and ethical trade relations , which favour african continental integration;


### 3. emphasises that economic partnership agreements need to support the various regional trade communities in africa and the further development of the afcfta , contribute to the building of resilient and sustainable regional value chains , and help to boost and diversify intra-african trade; calls for chapters ensuring consistency with development needs and policies and the un sustainable development goals to always be included and implemented; ### 3. calls for the systematic inclusion of binding and enforceable mechanisms for the implementation of tsd chapters on human rights , labour and environmental standards in all currently negotiated and future epas; reiterates the need of an in-depth analysis on the impact of epas and trade liberalization agreements on african countries , intra african markets and local economies and the need to review these agreements in order for them to be coherent with the sdgs and article 208 of the tfeu;


### 4. supports the objectives of afcfta; stresses that indicators in measuring economic success should be diversified beyond gdp growth; ### 4. supports the objectives and aspirations of afcfta as expressed in its preamble; stresses that indicators in measuring economic success in africa and europe should be diversified beyond gdp growth and recommends to refer also to indicators such as gini index , genuine progress indicator , human development index , and in particular the sdg progress reports;


### 5. calls on the commission to facilitate the development of regional value chains and better regional infrastructures in africa; ### 5. calls on the commissions of both au and eu to facilitate the development of regional value chains and better regional infrastructures in africa; stresses the need for consistent investments and public oversight in the development of general and cross-border sustainable infrastructures , in order to facilitate regional trade and thus the diversification and resilience of local , regional and continental value chains; calls on the african union partners to swiftly respond to the proposals of team europe for joint infrastructure projects; calls on both eu and african partners to implement the jointly identified priority projects without further delay , and to create project related profit opportunities for local companies , and job opportunities for the local population , while strictly observing high environmental and labour standards; points out that in sub-saharan africa an estimated 40% of staple foods being transported do not make it to the market due to poor infrastructure and deficits in cooling and storage;


### 6. calls on the commission to assist and create conditions for african countries to integrate into the world economy , not only as the source countries of primary commodities , but as exporters of intermediate and final products , while maintaining policy space for the safeguarding of infant industries; ### 6. calls on the commissions of both au and eu to create and facilitate conditions for african countries to change the nature of their integration into the world economy , from sources of primary commodities , to exporters of intermediate and final products , while maintaining policy space for the safeguarding of infant industries; recommends enhanced cooperation with universities and other research facilities in africa in order to establish a platform for technology and know-how exchange; recommends to consider targeted patent waivers in sectors where this is identified as most supportive for a holistic , sustainable and climate-neutral african industrial development;


### 7. notes that the future of the international trading system depends on the revitalising of the wto and finalising the doha round , on which african countries have placed their hopes; ### 7. reiterates that the eu and the african union share a common interest in a stable and rules-based multilateral trading system; calls on the partners to work together to create a fair and equitable trade and financial global architecture through the revitalization of the wto , finalisation of the doha round as agreed on by the wto membership , and establishing transparency in the international finance governance;


### 9. stresses that the renewed eu-africa relationship should have at its heart the best shared interests of both continents and should not become subject to geopolitical rivalry; ### 9. stresses that the renewed eu-africa relationship should have at its heart the best shared interests of both continents and should not become subject to geopolitical rivalry; points out that a fair competition of interests is not alien to market economies and that african partners can reserve their right to benefit from a demand situation in their favour;


### 11. calls on the commission to foster investment in the african continent through innovative financial instruments to increase capital flows and reduce risks; ### 11. calls on the commission to foster investment in the african continent that promote economic , social and cultural rights , as well as environmental rights , enhance capacities of governments to regulate in the public interest , and balance the rights and obligations of investors , communities and the environment through innovative financial instruments to increase capital flows and reduce risks; recalls the key importance of consistent public investment in public services , in research capabilities and in the promotion of economic sectors in which a country or region has potential to acquire a comparative advantage;


### 12. urges the commission to prepare an effective and easily accessible microcredit scheme; ### 12. urges the commission and the eib to prepare an effective and easily accessible microcredit scheme , that would offer access to credit without need for collateral or other financial guarantees; stresses the importance of such a scheme for women and youth empowerment; calls , in this regard , for appropriate accompanying measures , such as technical and legal assistance and counselling , as well as alliances with local partners on the ground , in order to make such microcredits really accessible;


### 13. calls for the eu to reinforce its support to the african countries and the au on combating illicit financial flows and tax evasion by multinational companies; ### 13. calls for the eu to reinforce its support to african countries and the au on combating illicit financial flows and tax evasion by multinational companies; recalls that africa loses about us$ 88.6 billion in illicit capital flight every year , equivalent to 3.7 per cent of the continent’s gross domestic product; calls for joint efforts to ensure that taxes are paid where profits and real economic value are created , in order to stop continued tax base erosion and profit-shifting; calls for increased cooperation between the african union and the european union and their member states in the implementation of legislation addressing corporate tax transparency issues , e.g. the eu’s financial reporting directive;


### 15. notes the graduation of several african countries from ldc status in the near future; ### 15. notes the graduation of several african countries from ldc status in the near future and the need to support their smooth transition; is of the opinion that these countries would benefit from the gsp+ status and encourages them to consider applying , while calling on the eu commission to pro-actively approach these potential candidates , to offer support in their steps towards meeting the criteria , and to identify on a country-by-country basis a roadmap for a transition from ldc to gsp+ partner country;


### 16. stresses that the trade partnership between the eu and africa must prioritise quality nutrition self-sufficiency; ### 16. stresses that the trade partnership between the eu and africa must prioritise food sovereignty and quality nutrition self-sufficiency; identifies a need for re-structuring of value chains so that more of the processing and value-adding part of the production takes place in source countries; calls on the commission to provide better assistance on aligning with the highest standards for sustainable agri-food systems;


### 17. reiterates that the different epas should contribute to developing intra-african integration and to the development of a fair and sustainable trade model; ### 17. reiterates that the different epas should have contributed to developing intra-african integration and to the development of a fair and sustainable trade model; is concerned that the eu’s trade policy towards africa is very fragmented;


### 19. welcomes the agreement of the afcfta council of ministers on common rules of origin for the bloc for 87.7 % of goods or 3 800 tariff lines covered by afcfta; calls on the european commission to harmonise the rules of origin in all the different eu agreements with regions and countries in africa with the common afcfta rules; ### 19. welcomes the agreement of the afcfta council of ministers on common rules of origin for the bloc for 87.7 % of goods or 3.800 tariff lines covered by afcfta; calls on the european commission to harmonise the rules of origin and to develop a proposal for unified rules of origin for trade with all african countries , based on the recently agreed rules within the afcfta , to replace the patchwork of rules of origin in the different trade agreements and arrangements of the eu with african regions and countries; is convinced that this would also be to the benefit of european companies and customs authorities; calls on the commission’s to explore further possibilities and measures to enhance links and synergies between the eu’s different trade arrangements with african countries and the afcfta;


### 20. appreciates the initiative by the council and the commission to organise the first africa-europe week , which was held in february 2022 in brussels; ### 20. appreciates the initiative by the council and the commission to organise the first africa-europe week , which was held in february 2022 in brussels; congratulates the several thousand representatives from youth organisations , civil society organisations , local authorities , from the cultural sector and the business forum for their fruitful work; regrets in this context that the european parliament was not better involved and that the events took place in parallel with parliament's plenary week in strasbourg;


### 21. notes that transport networks are critical enablers of trade and prosperous economies; stresses the need to better connect african rural and urban areas; ### 21. notes that transport networks are critical enablers of trade and prosperous economies; stresses the need to better connect african rural and urban areas; underlines that team europe proposals for the realisation of infrastructure projects shall build on the needs identified by the african union in pida; calls in this regard for the inclusion of politicians from the various affected regions as well as elected representatives of the respective municipalities into the decision-making process on the nature and volume of infrastructure projects; reminds of the fact that currently an estimated 53% of roads in africa are unpaved and isolated from trade hubs , and less than half of the population in rural areas has access to functional roads year round , which illustrates the need to invest not only in flagship projects; calls for investments also in cold chain logistics and modern storage facilities , and generally improved logistics between production and consumption geographies , given also the rapid urbanisation of africa;


### 24. welcomes the eu’s africa-eu green energy initiative and the eu’s continued support to the african single electricity market; stresses that access to energy must be guaranteed at an affordable price to everyone as a common good and a basic right; ### 24. welcomes the eu’s africa-eu green energy initiative and the eu’s continued support to the african single electricity market; stresses that access to energy must be guaranteed at an affordable price to everyone as a common good and a basic right; welcomes the commitment under global gateway to mobilise €2.4 billion grants for sub-saharan africa and € 1.08 billion for north africa to support renewable energy , energy efficiency , the just transition and the greening of local value chains; calls for a gender-smart investment approach in energy sector that would empower women as energy leaders , workers and consumers;


### 25. calls for reinforced cooperation on eu-au digital agendas based on the principles of democratic governance , effective regulatory mechanisms across the digital domain and global-to-local governance mechanisms for data and digital infrastructures that place people-centred development at the core; ### 25. calls for reinforced cooperation on eu-au digital agendas based on the principles of democratic governance , supportive multilateral rules on e-commerce , effective regulatory mechanisms across the digital domain and global-to-local governance mechanisms for data and digital infrastructures that place people-centred development at the core; takes note of the creation of the digital economy task force; stresses that eu-au digital relations should promote africa's drive for digital transformation and respect governments' right to maintain data ownership and regulate their digital economy according to their development needs;


### (1) semiconductors are at the core of any digital device: from smartphones and cars , through critical applications and infrastructures in health , energy , communications and automation to most other industry sectors. while semiconductors are essential to the functioning of our modern economy and society , the union has witnessed unprecedented disruptions in their supply. the current supply shortage is a symptom of permanent and serious structural deficiencies in the union’s semiconductor value and supply chain. the disruptions have exposed long-lasting vulnerabilities in this respect , notably a strong third-country dependency in manufacturing and design of chips. ### (1) semiconductors are at the core of any digital device: from smartphones and cars , through critical applications and infrastructures in health , energy , communications and automation to most other industry sectors. while semiconductors are essential to the functioning of our modern economy and society , the union has witnessed unprecedented disruptions in their supply. the current supply shortage is a symptom of permanent and serious structural deficiencies in the union’s semiconductor value and supply chain. the disruptions have exposed long-lasting vulnerabilities in this respect , notably a strong dependency on five companies based in three third countries in manufacturing and design of chips.


### (1) semiconductors are at the core of any digital device: from smartphones and cars , through critical applications and infrastructures in health , energy , communications and automation to most other industry sectors. while semiconductors are essential to the functioning of our modern economy and society , the union has witnessed unprecedented disruptions in their supply. the current supply shortage is a symptom of permanent and serious structural deficiencies in the union’s semiconductor value and supply chain. the disruptions have exposed long-lasting vulnerabilities in this respect , notably a strong third-country dependency in manufacturing and design of chips. ### (1) semiconductors are at the core of any digital device: from smartphones to critical applications and infrastructures in health , energy , communications and automation , including cars and a large number of industrial goods. while semiconductors are essential to the functioning of our modern economy and society , the union has witnessed unprecedented disruptions in their supply. the current supply shortage is a symptom of permanent and serious structural deficiencies in the union’s semiconductor value and supply chain. the disruptions have exposed long-lasting vulnerabilities in this respect , notably a strong third-country dependency in manufacturing and design of chips.


### (3) this framework pursues two objectives. the first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the need for sustainability. the second objective , separate and complementary to the first one , is to improve the functioning of the internal market by laying down a uniform union legal framework for increasing the union’s resilience and security of supply in the field of semiconductor technologies. ### (3) this framework pursues two objectives. the first objective is to ensure the conditions necessary for the competitiveness and innovation capacity of the union and to ensure the adjustment of the industry to structural changes due to fast innovation cycles and the green transition as well as sustainability needs. the second objective , separate and complementary to the first one , is to improve the functioning of the internal market by laying down a uniform union legal framework for increasing the union’s resilience and security of supply in the field of semiconductor technologies , while restoring the european global leadership in semiconductors global ecosystem.


### (5) the use of semiconductors is critical for multiple economic sectors and societal functions in the union and therefore , a resilient supply is essential for the functioning of the internal market. given the wide circulation of semiconductor products across borders , the resilience and security of supply of semiconductors can be best addressed through union harmonising legislation based on article 114 of the treaty. with a view to enabling coordinated measures for building resilience , harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the union are necessary. the proposed monitoring and crisis response mechanism should be uniform to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain. ### (5) the use of semiconductors is critical for multiple economic sectors and societal functions in the union and therefore , a resilient supply is essential for the functioning of the internal market. given the wide circulation of semiconductor products across borders , the resilience and security of supply of semiconductors can be best addressed through union harmonising legislation based on article 114 of the treaty. with a view to enabling coordinated measures for building resilience , harmonised rules for facilitating the implementation of specific projects that contribute to the security of supply of semiconductors in the union are necessary. the proposed monitoring and crisis response mechanism should be uniform and efficient to enable a coordinated approach to crisis preparedness for the cross-border semiconductor value chain.


### (27) the internal market would greatly benefit from common standards for green , trusted and secure chips. future smart devices , systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green , trust and cybersecurity requirements which will largely depend on the features of the underlying technology. to that end , the union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact. ### (27) the internal market would greatly benefit from common standards for green , trusted and secure chips. future smart devices , systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet the highest green , trust and cybersecurity requirements which will largely depend on the features of the underlying technology. particular attention should be paid to the development of sustainable practices in the manufacturing of chips in europe. comprehensive monitoring and due diligence requirements at all stages of the value chain should allow on one hand to curb , mitigate and aim to nullify the environmental impact , while on the other hand avoid social dumping and ensure respect of international labour organization conventions.


### (27) the internal market would greatly benefit from common standards for green , trusted and secure chips. future smart devices , systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green , trust and cybersecurity requirements which will largely depend on the features of the underlying technology. to that end , the union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact. ### (27) the internal market would greatly benefit from common standards for green , trusted and secure chips. future smart devices , systems and connectivity platforms will have to rely on advanced semiconductor components and they will have to meet green , trust and cybersecurity requirements which will largely depend on the features of the underlying technology. particular attention should be paid to due diligence at all levels of the value chain and to environmental impact. to that end , the union should develop reference certification procedures and require the industry to jointly develop such procedures for specific sectors and technologies with potential high social impact.


### (36) in order to facilitate effective monitoring , in-depth assessment of the risks associated with different stages of the semiconductor value chain is needed , including on the origins and sources of supplies beyond the union. such risks may be related to critical inputs and equipment for the industry , including digital products that may be vulnerable , possible impact of counterfeit semiconductors , manufacturing capacities and other risks that may disrupt , compromise or negatively affect the supply chain. those risks could include supply chains with a single point of failure or which are otherwise highly concentrated. other relevant factors could include the availability of substitutes or alternative sources for critical inputs and resilient and sustainable transport. the commission should , assisted by the european semiconductor board and taking also into account information received from the main user categories , develop a union level risk assessment. ### (36) in order to facilitate effective monitoring , in-depth assessment of the risks associated with different stages of the semiconductor value chain is needed , including on the origins and sources of supplies beyond the union. such risks may be related to critical inputs and equipment for the industry , including digital products that may be vulnerable , possible impact of counterfeit semiconductors , manufacturing capacities and other risks that may disrupt , compromise or negatively affect the supply chain. those risks could include supply chains with a single point of failure or which are otherwise highly concentrated. other relevant factors could include the availability of substitutes or alternative sources for critical inputs and resilient and sustainable transport. the commission should , assisted by the european semiconductor board and taking also into account information received from the main user categories , develop a union level risk assessment on the basis of several indicators , some of which related to the social and environmental impact of the whole semiconductors supply chain , particularly when sourced outside of the union , which could have significant environmental consequences in the countries concerned..


### (37) in order to forecast and prepare for future disruptions of the different stages of the semiconductor value chain in the union , the commission should , assisted by the european semiconductor board , identify early warning indicators in the union risk assessment. such indicators could include the availability of raw materials , intermediate products and human capital needed for manufacturing semiconductors , or appropriate manufacturing equipment , the forecasted demand for semiconductors on the union and global markets , price surges exceeding normal price fluctuation , the effect of accidents , attacks , natural disasters or other serious events , the effect of trade policies , tariffs , export restrictions , trade barriers and other trade related measures , and the effect of business closures , delocalisations or acquisitions of key market actors. member states should monitor these early warning indicators. ### (37) in order to forecast and prepare for future disruptions of the different stages of the semiconductor value chain in the union , the commission should , assisted by the european semiconductor board , identify early warning indicators in the union risk assessment. such indicators could include the availability of raw materials , intermediate products and human capital needed for manufacturing semiconductors , or appropriate manufacturing equipment , the forecasted demand for semiconductors on the union and global markets , price surges exceeding normal price fluctuation , the effect of accidents , attacks , natural disasters or other serious events , the effect of trade policies , tariffs , export restrictions , trade barriers and other trade related measures , and the effect of business closures , delocalisations or acquisitions of key market actors. these early warning indicators criteria should be as exhaustive as possible and transparently identified. member states should monitor these early warning indicators.


### (42) the semiconductor crisis stage should be triggered in the presence of concrete , serious , and reliable evidence of such a crisis. a semiconductor crisis occurs in case of serious disruptions to the supply of semiconductors leading to significant shortages which entail significant delays and negative effects on one or more important economic sectors in the union , either directly or through ripple effects of the shortage , given that the union’s industrial sectors represent a strong user base of semiconductors. alternatively or in addition , a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which prevent the supply , repair and maintenance of essential products used by critical sectors , for instance medical and diagnostic equipment. ### (42) the semiconductor crisis stage should be triggered in the presence of concrete , serious , and reliable evidence of such a crisis. a semiconductor crisis occurs in case of serious disruptions to the supply of semiconductors leading to significant shortages which entail significant delays and negative effects on one or more important economic sectors in the union , such as the car industry which has been particularly affected by the chips shortages in europe , leading to significant social consequences for many companies and workers , either directly or through ripple effects of the shortage , given that the union’s industrial sectors represent a strong user base of semiconductors. alternatively or in addition , a semiconductor crisis also occurs when serious disruptions of the supply of semiconductors lead to significant shortages which prevent the supply , repair and maintenance of essential products used by critical sectors , for instance medical and diagnostic equipment.


### (43) in order to ensure an agile and effective response to such a semiconductor crisis , the commission should be empowered to activate the crisis stage by means of an implementing acts and for a predetermined duration period , taking into account the opinion of the european semiconductor board. the commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period , should such a necessity be ascertained , taking into account the opinion of the european semiconductor board. ### (43) in order to ensure an agile and effective response to such a semiconductor crisis , the commission should be empowered to activate the crisis stage by means of an implementing acts and for a predetermined duration period , taking into account the opinion of the european semiconductor board. the commission should assess the need for prolongation and prolong the duration of the crisis stage for a predetermined period , should such a necessity be ascertained , taking into account the opinion of the european semiconductor board. the european parliament and the council should be informed when the crisis stage is triggered and eventually extended.


### (53) when the crisis stage is activated , two or more member states could mandate the commission to aggregate demand and act on their behalf for their public procurement in the public interest , in accordance with existing union rules and procedures , leveraging its purchasing power. the mandate could authorise the commission to enter into agreements concerning the purchase of crisis-relevant products for certain critical sectors. the commission should assess for each request the utility , necessity and proportionality in consultation with the board. where it intends to not follow the request , it should inform the concerned member states and the board and give its reasons. furthermore , the participating member states should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. the deployment and use of purchased products should remain within the remit of the participating member states. ### (53) when the crisis stage is activated , two or more member states could mandate the commission to aggregate demand and act on their behalf for their public procurement in the public interest , in accordance with existing union rules and procedures , leveraging its purchasing power. in particular , special attention shall be paid to an appropriate integration of environmental , social and labour requirements into public procurement procedures , as well as on the principles of equal treatment and transparency , as stated in the directives 2014/24/eu and 2014/25/ue on public procurement. the mandate could authorise the commission to enter into agreements concerning the purchase of crisis-relevant products for certain critical sectors. the commission should assess for each request the utility , necessity and proportionality in consultation with the board. where it intends to not follow the request , it should inform the concerned member states and the board and give its reasons. furthermore , the participating member states should be entitled to appoint representatives to provide guidance and advice during the procurement procedures and in the negotiation of the purchasing agreements. the deployment and use of purchased products should remain within the remit of the participating member states.


### setting up a coordination mechanism between the member states and the commission for monitoring the supply of semiconductors and crisis response to semiconductor shortages. ### setting up a coordination mechanism between the member states and the commission for monitoring the supply of semiconductors and crisis response to semiconductor shortages , with the aim of ensuring the european union's resilience and strategic autonomy in the global semiconductors supply chain.


### (16) ‘critical sector’ means any sector referred to in the annex of the commission proposal for a directive of the european parliament and of the council on the resilience of critical entities , the defence sector and other activities that are relevant for public safety and security; ### (16) ‘critical sector’ means means any sector referred to in the annex of the commission proposal for a directive of the european parliament and of the council on the resilience of critical entities , the defence sector and other activities that are relevant for public safety and security , in particular energy , health , transport and digital services;


### (16) ‘critical sector’ means any sector referred to in the annex of the commission proposal for a directive of the european parliament and of the council on the resilience of critical entities , the defence sector and other activities that are relevant for public safety and security; ### (16) ‘critical sector’ means any sector referred to in the annex of the commission proposal for a directive of the european parliament and of the council on the resilience of critical entities , notably strategic sectors as energy , housing , health , digital and transport;


### 2. member states shall invite the main users of semiconductors and other relevant stakeholders to provide information regarding significant fluctuations in demand and known disruptions of their supply chain. to facilitate the exchange of information , member states shall provide for a mechanism and administrative set-up for these updates. ### 2. member states shall ensure that the main users of semiconductors and other relevant stakeholders provide information regarding significant fluctuations in demand and known disruptions of their supply chain. to facilitate the exchange of information , member states shall provide for a mechanism and administrative set-up for these updates.


### 4. the use of the measures referred to in paragraph 1 shall be proportionate and restricted to what is necessary for addressing serious disruptions of vital societal functions or economic activities in the union and must be in the best interest of the union. the use of these measures shall avoid placing disproportionate administrative burden on smes. ### 4. the use of the measures referred to in paragraph 1 shall be proportionate and restricted to what is necessary for addressing serious disruptions of vital societal functions , such as public health , or economic activities in the union and must be in the best interest of the union. the use of these measures shall avoid placing disproportionate administrative burden on smes.


### 4. the use of the measures referred to in paragraph 1 shall be proportionate and restricted to what is necessary for addressing serious disruptions of vital societal functions or economic activities in the union and must be in the best interest of the union. the use of these measures shall avoid placing disproportionate administrative burden on smes. ### 4. the use of the measures referred to in paragraph 1 shall be proportionate and restricted to what is necessary for addressing serious disruptions of vital societal functions or economic activities in the union and must be in the best interest of the union. the use of these measures shall avoid adversely affecting workers and placing disproportionate administrative burden on smes..


### 2. the commission shall , in consultation with the european semiconductor board , assess the utility , necessity and proportionality of the request. where the commission intends not to follow the request , it shall inform the member states concerned and the european semiconductor board and give reasons for its refusal. ### 2. the commission shall , in consultation with the european semiconductor board , assess the utility , necessity and proportionality of the request. where the commission intends not to follow the request , it shall inform the member states concerned and the european semiconductor board within a deadline not exceeding 10 working days of receipt of the order and give reasons for its refusal.


### 4. procurement under this regulation shall be carried out by the commission in accordance with the rules set out in the financial regulation for its own procurement. the commission may have the ability and responsibility , on behalf of all participating member states , to enter into contracts with economic operators , including individual producers of crisis-relevant products , concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result. ### 4. procurement under this regulation shall be carried out by the commission in accordance with the rules set out in the financial regulation for its own procurement. in particular , special attention shall be paid to an appropriate integration of environmental , social and labour requirements into public procurement procedures , as well as on the principles of equal treatment and transparency , as stated in the current financial regulation as well as in the directives 2014/24/eu and 2014/25/ue on public procurement.


### 4. procurement under this regulation shall be carried out by the commission in accordance with the rules set out in the financial regulation for its own procurement. the commission may have the ability and responsibility , on behalf of all participating member states , to enter into contracts with economic operators , including individual producers of crisis-relevant products , concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result. ### 4. procurement under this regulation shall be carried out by the commission , in accordance with the rules set out in the financial regulation for its own procurement , which shall do its utmost to enforce rules on due oversight. the commission may have the ability and responsibility , on behalf of all participating member states , to enter into contracts with economic operators , including individual producers of crisis-relevant products , concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result.


### 4. procurement under this regulation shall be carried out by the commission in accordance with the rules set out in the financial regulation for its own procurement. the commission may have the ability and responsibility , on behalf of all participating member states , to enter into contracts with economic operators , including individual producers of crisis-relevant products , concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result. ### 4. procurement under this regulation shall be carried out by the commission in accordance with the rules set out in the financial regulation for its own procurement. in particular , special attention shall be paid to an appropriate integration of environmental , social and labour requirements into public procurement procedures , as well as on the principles of equal treatment and transparency , as referred to in the current financial regulation as well as in the directives 2014/24/eu and 2014/25/ue on public procurement. the commission may have the ability and responsibility , on behalf of all participating member states , to enter into contracts with economic operators , including individual producers of crisis-relevant products , concerning the purchase of such products or concerning the advance financing of the production or the development of such products in exchange for a priority right to the result.


### 5. where the procurement of crisis-relevant products includes financing from the union budget , specific conditions may be set out in specific agreements with economic operators. ### 5. where the procurement of crisis-relevant products includes financing from the union budget , specific conditions may be set out in specific agreements with economic operators. public spending and support shall always ensure a fair return on investment and ensure strong social and environmental conditionalities.


### 6. the commission shall carry out the procurement procedures and conclude the contracts with economic operators on behalf of the participating member states. the commission shall invite the participating member states to appoint representatives to take part in the preparation of the procurement procedures. the deployment and use of the purchased products shall remain the responsibility of the participating member states. ### 6. the commission shall carry out the procurement procedures in accordance with the principle of equal treatment between tenderers. it shall conclude the contracts with economic operators in coordination with the participating member states and on their behalf. the commission shall invite the participating member states to appoint representatives to take part in procurement procedures. the deployment and use of the purchased products shall remain the responsibility of the participating member states.


### (12) in order to achieve its general objective , and address both the supply and demand side challenges of the current semiconductor ecosystem , the initiative should include five main components. first , to reinforce europe’s design capacity , the initiative should support actions to build a virtual platform that is available across the union. the platform should connect the communities of design houses , smes and start-ups , intellectual property and tool suppliers , with research and technology organisations to provide virtual prototype solutions based on co-development of technology. second , in order to strengthen the security and resilience of supply and reducing the union’s dependency on third country production , the initiative should support development and access to pilot lines. the pilot lines should provide for the industry a facility to test , experiment and validate semiconductor technologies and system design concepts at the higher technology readiness levels beyond level 3 but under level 8 while reducing environmental impacts as much as possible. union investments along member states investment and with the private sector in pilot lines is necessary to address the existing structural challenge and market failure where such facilities are not available in the union hindering innovation potential and global competitiveness of the union. third , in order to enable investments in alternative technologies , such as quantum technologies , conducive to the development of the semiconductors sector , the initiative should support actions including on design libraries for quantum chips , pilot lines for building quantum chips and testing and experimentation facilities for quantum components. fourth , in order to promote the use of the semiconductor technologies , to provide access to design and pilot line facilities , and to address skills gaps across the union , the initiative should support establishment of the competence centres on semiconductors in each member state. access to publicly funded infrastructure , such as pilot and testing facilities , and to the competence network , should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings , while smes can benefit from preferential access or reduced prices. such access , including for international research and commercial partners , can lead to broader cross-fertilisation and gains in know-how and excellence , while contributing to cost recovery. fifth , the commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘chips fund’) proposing both equity and debt solutions , including a blending facility under the investeu fund established by regulation (eu) 2021/523 of the european parliament and council53 , in close cooperation with the european investment bank group and together with other implementing partners such as national promotional banks and institutions. the ‘chips fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and smes as well as investments across the value chain , including for other companies in the semiconductor value chains. in this context , the european innovation council will provide further dedicated support through grants and equity investments to high risk , market creating innovators. ### (12) in order to achieve its general objective , and address both the supply and demand side challenges of the current semiconductor ecosystem , the initiative should include five main components. first , to reinforce europe’s design capacity , the initiative should support actions to build a virtual platform that is available across the union. the platform should connect the communities of design houses , smes and start-ups , intellectual property and tool suppliers , with research and technology organisations to provide virtual prototype solutions based on co-development of technology. second , in order to strengthen the security and resilience of supply and reducing the union’s dependency on third country production , the initiative should support development and access to pilot lines. the pilot lines should provide for the industry a facility to test , experiment and validate semiconductor technologies and system design concepts at the higher technology readiness levels beyond level 3 but under level 8 while reducing environmental impacts as much as possible. union investments along member states investment and with the private sector in pilot lines is necessary to address the existing structural challenge and market failure where such facilities are not available in the union hindering innovation potential and global competitiveness of the union. third , in order to enable investments in alternative technologies , such as quantum technologies , conducive to the development of the semiconductors sector , the initiative should support actions including on design libraries for quantum chips , pilot lines for building quantum chips and testing and experimentation facilities for quantum components. fourth , in order to promote the use of the semiconductor technologies , to provide access to design and pilot line facilities , and to address skills gaps across the union , the initiative should support establishment of the competence centres on semiconductors in each member state. access to publicly funded infrastructure , such as pilot and testing facilities , and to the competence network , should be open to a wide range of users and must be granted on a transparent and non-discriminatory basis and on market terms (or cost plus reasonable margin basis) for large undertakings , while smes can benefit from preferential access and reduced prices. such access , including for international research and commercial partners , can lead to broader cross-fertilisation and gains in know-how and excellence , while contributing to cost recovery. fifth , the commission should set-up a dedicated semiconductor investment facility support (as part of the investment facilitation activities described collectively as the ‘chips fund’) proposing both equity and debt solutions , including a blending facility under the investeu fund established by regulation (eu) 2021/523 of the european parliament and council53 , in close cooperation with the european investment bank group and together with other implementing partners such as national promotional banks and institutions. the ‘chips fund’ activities should support the development of a dynamic and resilient semiconductor ecosystem by providing opportunities for increased availability of funds to support the growth of start-ups and smes as well as investments across the value chain , including for other companies in the semiconductor value chains. in this context , the european innovation council will provide further dedicated support through grants and equity investments to high risk , market creating innovators.


### (25) in light of their importance for ensuring the security of supply and enabling a resilient semiconductor ecosystem , integrated production facilities and open eu foundries should be considered to be in the public interest. ensuring the security of supply of semiconductors is important also for digitalisation that enables the green transition of many other sectors. to contribute towards security of supply of semiconductors in the union , member states may apply support schemes and provide for administrative support in national permit granting procedures. this is without prejudice to the competence of the commission in the field of state aid under article 107 and 108 of the treaty , where relevant. member states should support the set-up of integrated production facilities and open eu foundries in accordance with union law. ### (25) in light of their importance for ensuring the security of supply and enabling a resilient semiconductor ecosystem , integrated production facilities and open eu foundries should be considered to be in the public interest. ensuring the security of supply of semiconductors is important also for digitalisation. to contribute towards security of supply of semiconductors in the union , member states may apply support schemes and provide for administrative support in national permit granting procedures. this is without prejudice to the competence of the commission in the field of state aid under article 107 and 108 of the treaty , where relevant. member states should support the set-up of integrated production facilities and open eu foundries in accordance with union law.


### (26) it is necessary that integrated production facilities and open eu foundries are set-up as quickly as possible , while keeping the administrative burden to a minimum. for that reason , member states should treat applications related to the planning , construction and operation of integrated production facilities and open eu foundries in the most rapid manner possible. they should appoint an authority which will facilitate and coordinate the permit granting processes and appoint a coordinator , serving as a single point of contact for the project. moreover , where necessary for granting a derogation under council directive 92/43/eec56and directive 2000/60/ec of the european parliament and council57 , the establishment and operation of these facilities may be considered as being of overriding public interest within the meaning of the aforementioned legal texts , provided that the remaining other conditions set out in these provisions are fulfilled. ### (26) it is necessary that integrated production facilities and open eu foundries are set-up as quickly as possible , while keeping the administrative burden to a minimum. for that reason , member states should treat applications related to the planning , construction and operation of integrated production facilities and open eu foundries in the most rapid manner possible. they could appoint an authority which will facilitate and coordinate the permit granting processes and appoint a coordinator , serving as a single point of contact for the project. moreover , where necessary for granting a derogation under council directive 92/43/eec56 and directive 2000/60/ec of the european parliament and council57 , the establishment and operation of these facilities may be considered as being of overriding public interest within the meaning of the aforementioned legal texts , provided that the remaining other conditions set out in these provisions are fulfilled.


### 1. the general objective of the initiative is to support large-scale technological capacity building and innovation throughout the union to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union advanced design , systems integration and chips production capabilities , as well as contribute to the achievement of the twin digital and green transition. ### 1. the general objective of the initiative is to support large-scale technological capacity building and innovation throughout the union to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union's capabilities and strategic autonomy regarding advanced design , systems integration and chips production , as well as contribute to the achievement of the digital transition.


### 1. the general objective of the initiative is to support large-scale technological capacity building and innovation throughout the union to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union advanced design , systems integration and chips production capabilities , as well as contribute to the achievement of the twin digital and green transition. ### 1. the general objective of the initiative is to support large-scale technological capacity building and innovation throughout the union to enable development and deployment of cutting-edge and next generation semiconductor and quantum technologies that will reinforce the union advanced design , systems integration and chips production capabilities in order to ensure security of supply , as well as contribute to the achievement of a social-ecological transition.