### no sooner than [ three years from the date of application of this regulation ] , the commission shall carry out an evaluation of this regulation and submit a report to the european parliament and to the council on the application of this regulation including the functioning of the effectiveness of the safeguard mechanisms . where appropriate , the report shall be accompanied by legislative proposals . member states shall provide the commission with the information necessary for the preparation of the report . ### [ three years from the date of application of this regulation ] , the commission shall carry out an evaluation of this regulation and submit a report to the european parliament and to the council on the application of this regulation including the functioning of the effectiveness of the safeguard mechanisms . the report shall also cover the impact of this regulation on freedom of expression and information , on media and journalism , on the arts , and on academic research . where appropriate , the report shall be accompanied by legislative proposals . member states shall provide the commission with the information necessary for the preparation of the report .


### the application of this regulation should not affect the application of article 14 of directive 2000 / 31 / ec8 . in particular , any measures taken by the hosting service provider in compliance with this regulation , including any proactive measures , should not in themselves lead to that service provider losing the benefit of the liability exemption provided for in that provision . this regulation leaves unaffected the powers of national authorities and courts to establish liability of hosting service providers in specific cases where the conditions under article 14 of directive 2000 / 31 / ec for liability exemption are not met . __________________ 8 directive 2000 / 31 / ec of the european parliament and of the council of 8 june 2000 on certain legal aspects of information society services , in particular electronic commerce , in the internal market . ### this regulation should lay down specific obligations for hosting service providers , exposed to terrorist content . this regulation should not affect the application of directive 2000 / 31 / ec8 . this regulation leaves unaffected the powers of national authorities and courts to establish liability of hosting service providers in specific cases where the conditions under of directive 2000 / 31 / ec for liability exemption are not met . __________________ 8 directive 2000 / 31 / ec of the european parliament and of the council of 8 june 2000 on certain legal aspects of information society services , in particular electronic commerce , in the internal market .


### in order to ensure the effective and sufficiently coherent implementation of proactive measures , competent authorities in member states should liaise with each other with regard to the discussions they have with hosting service providers as to the identification , implementation and assessment of specific proactive measures . similarly , such cooperation is also needed in relation to the adoption of rules on penalties , as well as the implementation and the enforcement of penalties . ### in order to ensure the effective and sufficiently coherent implementation of measures by hosting service providers , competent authorities in member states should liaise with each other with regard to the discussions they have with hosting service providers as to removal orders and the identification , implementation and assessment of specific additional measures . such cooperation is also needed in relation to the adoption of rules on penalties , as well as the implementation and the enforcement of penalties .


### those hosting service providers which are not established in the union , should designate in writing a legal representative in order to ensure the compliance with and enforcement of the obligations under this regulation . ### those hosting service providers which are not established in the union , should designate in writing a legal representative in order to ensure the compliance with and enforcement of the obligations under this regulation . hosting service providers may make use of an existing legal representative , provided that this legal representative is able to fulfil the functions as set out in this regulation .


### promote access to , and take - up of , very high capacity data connectivity , both fixed and mobile , by all union citizens and businesses ; ### promote the availability and affordability of and access to very high capacity data connectivity , both fixed and mobile , by all union citizens and businesses ;


### member states shall encourage the use of the standards and / or specifications referred to in paragraph 1 , for the provision of services , technical interfaces and / or network functions , to the extent strictly necessary to ensure interoperability of services and to improve freedom of choice for users . ### member states shall encourage the use of the standards and / or specifications referred to in paragraph 1 , for the provision of services , technical interfaces and / or network functions , to the extent strictly necessary to ensure interoperability and interconnectivity of services in order to improve freedom of choice for users and facilitate switching .


### where appropriate , the competent authority concerned shall inform the competent authorities in other member states and the european network and information security agency . the competent authority concerned may inform the public or require the undertakings to do so , where it determines that disclosure of the breach is in the public interest . ### where appropriate , the competent authority concerned shall inform the competent authorities in other member states and the european network and information security agency . the competent authority concerned may inform the public or require the providers to do so , where it determines that disclosure of the incident is in the public interest .


### the extent to which the functioning of the service is disrupted ; ### the extent to which the functioning of the network or service is affected ;


### in line with the objectives of the charter of fundamental rights of the european union and the united nations convention on the rights of persons with disabilities , the regulatory framework should ensure that all users , including disabled end - users , the elderly , and users with special social needs , have easy access to affordable high quality services . declaration 22 annexed to the final act of amsterdam provides that the institutions of the union shall take account of the needs of persons with a disability in drawing up measures under article 114 of the tfeu . ### in line with the objectives of the charter and the united nations convention on the rights of persons with disabilities , the regulatory framework should ensure that all end - users , including end - users with disabilities , older people , and users with special social needs , have easy and equal access to affordable and accessible high quality services regardless of their place of residence within the union . declaration 22 annexed to the final act of amsterdam provides that the institutions of the union shall take account of the needs of persons with disabilities in drawing up measures under article 114 of the tfeu .


### where appropriate , the competent authority concerned shall inform the competent authorities in other member states and the european network and information security agency . the competent authority concerned may inform the public or require the undertakings to do so , where it determines that disclosure of the breach is in the public interest . ### where appropriate , the authority concerned shall inform the competent authorities in other member states and the european network and information security agency . the competent authority concerned may inform the public or require the providers to do so , where it determines that disclosure of the incident is in the public interest . prior to informing the public , the competent authority is required to consult the undertakings .


### national regulatory authorities shall , acting in pursuit of the objectives set out in article 3 , encourage and where appropriate ensure , in accordance with the provisions of this directive , adequate access and interconnection , and the interoperability of services , exercising their responsibility in a way that promotes efficiency , sustainable competition , the deployment of very high capacity networks , efficient investment and innovation , and gives the maximum benefit to end - users . they shall provide guidance and make publicly available the procedures applicable to gain access and interconnection to ensure that small and medium - sized enterprises and operators with a limited geographical reach can benefit from the obligations imposed . ### national regulatory authorities shall , acting in pursuit of the objectives set out in article 3 , encourage and where appropriate ensure , in accordance with the provisions of this directive , adequate access and interconnection , and the interoperability of services , exercising their responsibility in a way that promotes efficiency , sustainable competition , efficient investment and innovation , and gives the maximum benefit to end - users . they shall provide guidance and make publicly available the procedures applicable to gain access and interconnection to ensure that small and medium - sized enterprises and operators with a limited geographical reach can benefit from the obligations imposed .


### promote the interests of the citizens of the union , including in the long term , by ensuring widespread availability and take - up of very high capacity connectivity , both fixed and mobile , and of interpersonal communications services , by enabling maximum benefits in terms of choice , price and quality on the basis of effective competition , by maintaining security of networks and services , by ensuring a high and common level of protection for end - users through the necessary sector - specific rules and by addressing the needs , such as for affordable prices , of specific social groups , in particular disabled users , elderly users and users with special social needs . ### promote the interests of the citizens of the union , by ensuring widespread availability and take - up of very high capacity connectivity , both fixed and mobile , and of interpersonal communications services , by enabling maximum benefits in terms of choice , price and quality on the basis of effective competition , by maintaining security of networks and services , by ensuring a high and common minimum level of protection for end - users through the necessary sector - specific rules and by addressing the needs , such as for affordable prices , of specific social groups , in particular disabled users , elderly users and users with special social needs .


### the duration of the breach ; ### the duration of the incident ;


### the geographical spread of the area affected by the breach ; ### the geographical spread of the area affected by the incident ;


### the number of users affected by the breach ; ### the number of users affected by the incident ;


### member states shall ensure that in order to implement article 40 , the competent authorities have the power to issue binding instructions , including those regarding the measures required to remedy a breach and time - limits for implementation , to undertakings providing public communications networks or publicly available electronic communications services . ### member states shall ensure that in order to implement article 40 , the competent authorities have the power to issue binding instructions , including those regarding the measures required to prevent or remedy an incident and time - limits for implementation , to undertakings providing public communications networks or publicly available electronic communications services .


### where that provision is not commercial in character or is ancillary to another commercial activity or public service which is not dependent on the conveyance of signals on those networks , any undertaking , public authority or end - user providing such access shall not be subject to any general authorisation for the provision of electronic communications networks or services pursuant to article 12 , to obligations regarding end - users rights pursuant to title iii of part iii of this directive nor to obligations to interconnect their networks pursuant to article 59 . ### where that provision is not commercial in character or is ancillary to another commercial activity or public service which is not dependent on the conveyance of signals on those networks , any undertaking , public authority or user providing such access shall not be subject to any general authorisation for the provision of electronic communications networks or services pursuant to article 12 , to obligations regarding users rights pursuant to title iii of part iii of this directive , to obligations to interconnect their networks pursuant to article 59 nor to an obligation to identify third parties using such access . individuals providing such access not - for - profit shall not be liable for information transmitted by third parties over such access .


### interpersonal communications services are services that enable interpersonal and interactive exchange of information , covering services like traditional voice calls between two individuals but also all types of emails , messaging services , or group chats . interpersonal communications services only cover communications between a finite , that is to say not potentially unlimited , number of natural persons which is determined by the sender of the communication . communications involving legal persons should be within the scope of the definition where natural persons act on behalf of those legal persons or are involved at least on one side of the communication . interactive communication entails that the service allows the recipient of the information to respond . services which do not meet those requirements , such as linear broadcasting , video on demand , websites , social networks , blogs , or exchange of information between machines , should not be considered as interpersonal communications services . under exceptional circumstances , a service should not be considered as an interpersonal communications service if the interpersonal and interactive communication facility is a purely ancillary feature to another service and for objective technical reasons cannot be used without that principal service , and its integration is not a means to circumvent the applicability of the rules governing electronic communications services . an example for such an exception could be , in principle , a communication channel in online games , depending on the features of the communication facility of the service . ### interpersonal communications services are services provided for remuneration that enable interpersonal and interactive exchange of information , covering services like traditional voice calls between two individuals but also all types of emails , messaging services , or group chats . interpersonal communications services only cover communications between a finite , that is to say not potentially unlimited , number of natural persons which is determined by the sender of the communication . communications involving legal persons should be within the scope of the definition where natural persons act on behalf of those legal persons or are involved at least on one side of the communication . interactive communication entails that the service allows the recipient of the information to respond . services which do not meet those requirements , such as linear broadcasting , video on demand , websites , social networks , blogs , or exchange of information between machines , should not be considered as interpersonal communications services . under exceptional circumstances , a service should not be considered as an interpersonal communications service if the interpersonal and interactive communication facility is a purely ancillary feature to another service and for objective technical reasons cannot be used without that principal service , and its integration is not a means to circumvent the applicability of the rules governing electronic communications services . an example for such an exception could be , in principle , a communication channel in online games , depending on the features of the communication facility of the service .


### when assessing co - investment offers and processes referred to in point of the first subparagraph , national regulatory authorities shall ensure that those offers and processes comply with the criteria set out in annex iv . ### when assessing co - investment agreements referred to the first paragraph , national regulatory authorities shall ensure that those offers and processes comply with the criteria set out in annex iv .


### member states shall ensure that undertakings providing public communications networks or publicly available electronic communications services notify without undue delay the competent authority of a breach of security that has had a significant impact on the operation of networks or services . ### member states shall ensure that undertakings providing public communications networks or publicly available electronic communications services notify without undue delay the competent authority of a security incident or loss of integrity that has had a significant impact on the operation of networks or services .


### member states may impose reasonable ‘ must carry’ obligations , for the transmission of specified radio and television broadcast channels and related complementary services , particularly accessibility services to enable appropriate access for disabled end - users and data supporting connected tv services and electronic programme guides , on undertakings under their jurisdiction providing electronic communications networks used for the distribution of radio or television broadcast channels to the public where a significant number of end - users of such networks use them as their principal means to receive radio and television broadcast channels . such obligations shall only be imposed where they are necessary to meet general interest objectives as clearly defined by each member state and shall be proportionate and transparent . ### member states may impose reasonable ' must carry ' obligations , for the transmission of specified radio and television broadcast channels and related complementary services , particularly accessibility services to enable appropriate access to content and electronic programming guide for end - users with disabilities and data supporting connected tv services and electronic programme guides , on undertakings under their jurisdiction providing electronic communications networks and services used for the distribution of radio or television broadcast channels to the public where a significant number of end - users of such networks and services use them as their principal means to receive radio and television broadcast channels . such obligations shall only be imposed where they are necessary to meet general interest objectives as clearly defined by each member state and shall be proportionate and transparent . member states shall only impose ' must carry ' obligations on analogue television broadcast transmissions where a lack of such an obligation would cause a significant disturbance for a significant number of end - users or where there are no other transmission means for specified television broadcast channels . ' must carry ' obligations referred to in the first subparagraph shall only be imposed where they are necessary to meet general interest objectives as clearly defined by each member state and shall be proportionate and transparent .


### in line with the objectives of the charter of fundamental rights of the european union and the united nations convention on the rights of persons with disabilities , the regulatory framework should ensure that all users , including disabled end - users , the elderly , and users with special social needs , have easy access to affordable high quality services . declaration 22 annexed to the final act of amsterdam provides that the institutions of the union shall take account of the needs of persons with a disability in drawing up measures under article 114 of the tfeu . ### in line with the objectives of the charter of fundamental rights of the european union and the united nations convention on the rights of persons with disabilities , the regulatory framework should ensure that all users , including end - users with disabilities , older people , and users with special social needs , have easy and equal access to affordable and accessible high quality services . declaration 22 annexed to the final act of amsterdam provides that the institutions of the union shall take account of the needs of persons with disabilities in drawing up measures under article 114 of the tfeu .


### promote the interests of the citizens of the union , including in the long term , by ensuring widespread availability and take - up of very high capacity connectivity , both fixed and mobile , and of interpersonal communications services , by enabling maximum benefits in terms of choice , price and quality on the basis of effective competition , by maintaining security of networks and services , by ensuring a high and common level of protection for end - users through the necessary sector - specific rules and by addressing the needs , such as for affordable prices , of specific social groups , in particular disabled users , elderly users and users with special social needs . ### promote the interests of the citizens of the union , including in the long term , by enabling maximum benefits in terms of choice , price and quality on the basis of effective competition , by maintaining security of networks and services , by ensuring a high and common minimum level of protection for end - users through the necessary sector - specific rules and by addressing the needs , such as for affordable prices , of specific social groups , in particular disabled users , elderly users and users with special social needs .


### the commission shall be empowered to adopt delegated acts in accordance with article 10 , when , for reasons of economic and technical changes , data requirements need to be updated , including submission deadlines as well as revisions , extensions and eliminations of data flows set out in annex i , and when the definitions set out in annex ii need to be updated . ### the commission shall be empowered to adopt delegated acts in accordance with article 10 , when , for reasons of economic and technical changes , data requirements geographical breakdown levels , institutional sectors breakdown levels and economic activity breakdown levels set out in tables 6 , 7 and 8 of annex i need to be updated , as well as for specifying the content of quality reports and the requirements for producing the statistics referred to in paragraphs 2 and 3 of article 5 , provided that such updates and specifications neither affect the reporting burden nor change the underlying conceptual framework . the commission shall be empowered to adopt delegated acts in accordance with article 10 whenever certain requirements of data flows in annex i need to be eliminated , provided that such elimination does not reduce the quality of statistics produced in accordance with this regulation .


### the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission when , for reasons of economic and technical changes , data requirements need to be updated , including submission deadlines as well as revisions , extensions and eliminations of data flows set out in annex i , and when the definitions set out in annex ii need to be updated . ### the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission when , for reasons of economic and technical changes , geographical breakdown levels , institutional sectors breakdown levels and economic activity breakdown levels set out in tables 6 , 7 and 8 of annex i need to be updated , provided that such updates neither affect the reporting burden nor change the underlying conceptual framework , as well as certain requirements of data flows in annex i need to be eliminated , provided that such elimination does not reduce the quality of statistics produced in accordance with this regulation .


### member states shall collect the information required pursuant to this regulation using all the sources they consider relevant and appropriate . these may include administrative data sources such as business registers . ### in article 3 , paragraph 1 is replaced by the following : member states shall collect the information required pursuant to this regulation using all the sources they consider relevant and appropriate . these may include administrative data sources such as business registers including the central registers of information on the ultimate beneficial owners of corporate and other legal entities referred to in the anti - money laundering directive , the european group registry or the glei and the geographical counterpart fdi data available in the framework of the coordinated direct investment survey initiative of the imf .


### member states shall collect the information required pursuant to this regulation using all the sources they consider relevant and appropriate . these may include administrative data sources such as business registers . ### in article 3 , paragraph 1 is replaced by the following : member states shall collect the information required pursuant to this regulation using all the sources they consider relevant and appropriate . these may include administrative data sources such as business registers including the central registers of information on the ultimate beneficial owners of corporate and other legal entities referred to in the anti - money laundering directive xxx or the glei established by the oecd and the databases established in the framework of the coordinated direct investment survey initiative of the imf .


### a delegated act adopted pursuant to article 2 , shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of two months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by two months at the initiative of the european parliament or the council . ### a delegated act adopted pursuant to article 2 , shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of three months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by three months at the initiative of the european parliament or the council . when a delegated act is delivered just before or during a public holiday , the time shall be deemed to run from the date of the first plenary session of the european parliament following the public holiday . in all cases , the period shall be able to be extended to encompass three full plenary sessions .


### article 5 data flows the statistics to be produced shall be grouped for transmission to the commission according to the following data flows : balance of payments euro indicators ; balance of payments quarterly statistics ; international trade in services ; foreign direct investment flows ; fdi positions . the data flows shall be as further specified in annex i . ### article 5 is replaced by the following article 5 data flows the statistics to be produced shall be grouped for transmission to the commission according to the following data flows : balance of payments euro indicators ; balance of payments quarterly statistics ; international trade in services ; foreign direct investment flows ; fdi positions . 2 . the statistics to be produced shall aggregate fdi outflows on the basis of the country of incorporation of the ultimate beneficial owner of the economic unit controlling the outflow . 3 . the statistics to be produced shall differentiate foreign direct investment inflows between flows resulting in greenfield investments by an increase in gross capital formation or an increase in working capital of an economic unit from takeovers which result only in a change in ownership of an economic unit over the yearly reference period . 4 . the statistics produced in conformity with paragraphs 1 to 3 shall be transmitted to the commission . 5 . the data flows referred to in paragraph 1 shall be as further specified in annex i .


### article 5 data flows the statistics to be produced shall be grouped for transmission to the commission according to the following data flows : balance of payments euro indicators ; balance of payments quarterly statistics ; international trade in services ; foreign direct investment flows ; fdi positions . the data flows shall be as further specified in annex i . ### article 5 is replaced by the following article 5 data flows the statistics to be produced shall be grouped for transmission to the commission according to the following data flows : balance of payments euro indicators ; balance of payments quarterly statistics ; international trade in services ; foreign direct investment flows ; fdi positions . 2 . the statistics to be produced shall aggregate fdi outflows on the basis of the country of incorporation of the ultimate beneficial owner of the economic unit controlling the outflow . 3 . the statistics to be produced shall differentiate foreign direct investment inflows between flows resulting in greenfield investments by an increase in gross capital formation or an increase in working capital of an economic unit from takeovers which result only in a change in ownership of an economic unit over the yearly reference period . 4 . the statistics produced in conformity with paragraphs 1 to 3 shall be transmitted to the commission . 5 . the data flows referred to in paragraph 1 to 3 shall be as further specified in annex i after requesting the opinion of the cmfb .


### the commission shall be empowered to adopt delegated acts in accordance with article 10 , when , for reasons of economic and technical changes , data requirements need to be updated , including submission deadlines as well as revisions , extensions and eliminations of data flows set out in annex i , and when the definitions set out in annex ii need to be updated . ### the commission shall be empowered to adopt delegated acts in accordance with article 10 , when , for reasons of economic and technical changes , geographical breakdown levels , institutional sectors breakdown levels and economic activity breakdown levels set out in tables 6 , 7 and 8 of annex i need to be updated , provided that such updates neither affect the reporting burden nor change the underlying conceptual framework , as well as certain requirements of data flows in annex i need to be eliminated , provided that such elimination does not reduce the quality of statistics produced in accordance with this regulation .


### the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission when , for reasons of economic and technical changes , data requirements need to be updated , including submission deadlines as well as revisions , extensions and eliminations of data flows set out in annex i , and when the definitions set out in annex ii need to be updated . ### the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission when , for reasons of economic and technical changes , geographical breakdown levels , institutional sectors breakdown levels and economic activity breakdown levels set out in tables 6 , 7 and 8 of annex i data need to be updated as well as for specifying the common quality standards , the content of quality reports and the requirements for producing the statistics referred to in paragraphs 2 and 3 of article 5 , provided that such updates and specifications neither affect the reporting burden nor change the underlying conceptual framework . the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission whenever certain requirements of data flows in annex i need to be eliminated , provided that such elimination does not reduce the quality of statistics produced in accordance with this regulation .


### complaints by producer organisations or associations of such organisations can serve to protect the identity of individual members of the organisation who are small and medium - sized suppliers and consider themselves exposed to unfair trading practices . enforcement authorities of the member states should therefore be able to accept and act upon complaints by such entities while protecting the procedural rights of the defendant . ### complaints by producer organisations or associations of such organisations , as well as by organisations working with producers or with a proven expertise on trading practices in food supply chains , including non - governmental and civil society organisations , can serve to protect the identity of individual members of the organisation who are small and medium - sized suppliers and consider themselves exposed to unfair trading practices . enforcement authorities of the member states should therefore be able to accept and act upon complaints by such entities while protecting the procedural rights of the defendant .


### the number and size of operators vary across the different stages of the food supply chain . differences in bargaining power relate to the different levels of concentration of operators and can enable the unfair exercise of bargaining power by using unfair trading practices . unfair trading practices are in particular harmful for small and medium - sized operators in the food supply chain . agricultural producers , who supply primary agricultural products , are largely small and medium - sized . ### the number and size of operators vary across the different stages of the agricultural and food supply chain . differences in bargaining power relate to the different levels of concentration of operators and can enable the unfair exercise of bargaining power by using unfair trading practices . unfair trading practices are even more harmful for small and medium - sized operators in the agricultural and food supply chain . agricultural producers , who supply primary agricultural products , are often small and medium - sized .


### suppliers established outside the union should be able to rely on the union minimum standard when they sell food products to buyers established in the union to avoid unintended distorting effects resulting from the protection of suppliers in the union . ### to ensure the eu meets its treaty obligation of policy coherence for development and its commitments under the sustainable development goals , suppliers established outside the union should be able to rely on the union minimum standard when they sell agricultural and food products to buyers marketing and placing those products on the eu market to avoid unintended distorting effects resulting from the protection of suppliers in the union .


### a supplier pays for the wastage of food products that occurs on the buyer ' s premises and that is not caused by the negligence or fault of the supplier . ### a supplier pays for the wastage of food products that occurs once the product has passed into the buyer ' s ownership and that is not caused by the negligence or fault of the supplier .


### “food products” means products listed in annex i to the treaty intended for use as food as well as products not listed in that annex , but processed from those products for use as food ; ### “agricultural and food products” means products listed in annex i to the treaty as well as products not listed in that annex , but processed from those products for use as food ;


### a minimum union standard of protection against certain manifestly unfair trading practices should be introduced to reduce the occurrence of such practices and to contribute to ensuring a fair standard of living for agricultural producers . it should benefit all agricultural producers or any natural or legal person that supplies food products , including producer organisations and associations of producer organisations , provided that all those persons meet the definition of micro , small and medium - sized enterprises set out in the annex to commission recommendation 2003 / 361 / ec12 . those micro , small or medium suppliers are particularly vulnerable to unfair trading practices and least able to weather them without negative effects on their economic viability . as the financial pressure on small and medium - sized enterprises caused by unfair trading practices often passes through the chain and reaches agricultural producers , rules on unfair trading practices should also protect small and medium - sized intermediary suppliers at the stages downstream of primary production . protection of intermediary suppliers should also avoid unintended consequences of trade diversion away from agricultural producers and their associations , who produce processed products , to non - protected suppliers . __________________ 12 oj l 124 , 20 . 5 . 2003 , p . 36 . ### a minimum union standard of protection against unfair trading practices should be introduced to reduce the occurrence of such practices , to contribute to ensuring a fair standard of living for agricultural producers inside and outside the union , to prevent unsafe and unsustainable practices , precarious working conditions , and to reduce food safety risks and food waste along the food supply chain . it should benefit all agricultural producers or any natural or legal person that supplies agricultural and food products , including producer organisations and associations of producer organisations , without raising their administrative burden . micro , small or medium suppliers are particularly vulnerable to unfair trading practices and least able to weather them without negative effects on their economic viability . as the financial pressure on enterprises caused by unfair trading practices often passes through the chain and reaches agricultural producers , rules on unfair trading practices should also protect intermediary suppliers at the stages downstream of primary production . protection of intermediary suppliers inside and outside the union should also avoid unintended consequences of trade diversion away from agricultural producers and their associations , who produce processed products , to non - protected suppliers .


### as a majority of member states already have national rules on unfair trading practices , albeit diverging , it is appropriate to use the tool of a directive to introduce a minimum protection standard under union law . this should enable member states to integrate the relevant rules into their national legal order in such a way as to bring about a cohesive regime . member states should not be precluded from adopting and applying on their territory stricter national laws protecting small and medium - sized suppliers and buyers against unfair trading practices occurring in business - to - business relationships in the food supply chain , subject to the limits of union law applicable to the functioning of the internal market . ### as a majority of member states already have national rules on unfair trading practices , albeit diverging , it is appropriate to use the tool of a directive to introduce a minimum protection standard under union law . this should enable member states to integrate the relevant rules into their national legal order in such a way as to bring about a cohesive regime . member states should not be precluded from adopting and applying on their territory stricter national laws protecting suppliers and buyers against unfair trading practices occurring in business - to - business relationships in the agricultural and food supply chain , subject to the limits of union law applicable to the functioning of the internal market .


### this directive establishes a minimum list of prohibited unfair trading practices between buyers and suppliers in the food supply chain and lays down minimum rules concerning their enforcement and arrangements for the coordination between enforcement authorities . ### this directive establishes a minimum list of prohibited unfair trading practices between buyers and suppliers in the agricultural and food supply chain and lays down minimum rules concerning their enforcement and arrangements for the coordination between enforcement authorities .


### different operators are active in the food supply chain at the stages of production , processing , marketing , distribution and retail of food products . the chain is by far the most important channel for bringing food products from “farm to fork” . those operators trade food products , that is to say primary agricultural products , including fishery and aquaculture products , as listed in annex i to the treaty for use as food , and other food products not listed in that annex but processed from agricultural products for use as food . ### different operators are active in the agricultural and food supply chain at the stages of production , processing , importing , exporting , marketing , distribution , retail and sale to final consumers of food products . the chain is by far the most important channel for bringing food products from “farm to fork” . those operators trade agricultural and food products , that is to say primary agricultural products , including fishery and aquaculture products , as listed in annex i to the treaty , and other food products not listed in that annex but processed from agricultural products for use as food .


### to initiate and conduct investigations on its own initiative or based on a complaint ; ### to initiate and conduct investigations on its own initiative or based on a complaint , within a period of maximum six months , with an extension of an additional six months in complex and duly justified cases ;


### a minimum union standard of protection against certain manifestly unfair trading practices should be introduced to reduce the occurrence of such practices and to contribute to ensuring a fair standard of living for agricultural producers . it should benefit all agricultural producers or any natural or legal person that supplies food products , including producer organisations and associations of producer organisations , provided that all those persons meet the definition of micro , small and medium - sized enterprises set out in the annex to commission recommendation 2003 / 361 / ec12 . those micro , small or medium suppliers are particularly vulnerable to unfair trading practices and least able to weather them without negative effects on their economic viability . as the financial pressure on small and medium - sized enterprises caused by unfair trading practices often passes through the chain and reaches agricultural producers , rules on unfair trading practices should also protect small and medium - sized intermediary suppliers at the stages downstream of primary production . protection of intermediary suppliers should also avoid unintended consequences of trade diversion away from agricultural producers and their associations , who produce processed products , to non - protected suppliers . __________________ 12 oj l 124 , 20 . 5 . 2003 , p . 36 . ### a minimum union standard of protection against certain manifestly unfair trading practices should be introduced to reduce the occurrence of such practices and to contribute to ensuring a fair standard of living for agricultural producers . it should benefit all agricultural producers or any natural or legal person that supplies agricultural and food products , including producer organisations and associations of producer organisations . those suppliers are particularly vulnerable to unfair trading practices and least able to weather them without negative effects on their economic viability . as the financial pressure caused by unfair trading practices often passes through the chain and reaches agricultural producers , rules on unfair trading practices should also protect intermediary suppliers at the stages downstream of primary production . protection of intermediary suppliers should also avoid unintended consequences of trade diversion away from agricultural producers and their associations , who produce processed products , to non - protected suppliers . __________________ 12 oj l 124 , 20 . 5 . 2003 , p . 36 .


### &#8220 ; buyer&#8221 ; means any natural or legal person established in the union who buys food products by way of trade . the term ' buyer ' may include a group of such natural and legal persons ; ### &#8220 ; buyer&#8221 ; means any natural or legal person which is not a small or medium - sized enterprise , irrespective of its place of establishment , who buys agricultural or food products by way of trade for processing and distribution in the union , or who provides services in relation to processing and distribution to suppliers . the term ' buyer ' may include a group of such natural and legal persons ;


### this directive applies to certain unfair trading practices which occur in relation to the sales of food products by a supplier that is a small and medium - sized enterprise to a buyer that is not a small and medium - sized enterprise . ### this directive applies to certain unfair trading practices which occur in relation to the sales of agricultural and food products , as well as to the services related to those products , by a supplier to a buyer that is not a small and medium - sized enterprise .


### suppliers established outside the union should be able to rely on the union minimum standard when they sell food products to buyers established in the union to avoid unintended distorting effects resulting from the protection of suppliers in the union . ### suppliers established outside the union should be able to rely on the union minimum standard when they sell agricultural and food products to buyers established in the union to avoid unintended distorting effects resulting from the protection of suppliers in the union .


### member states shall ensure that the following trading practices are prohibited : ### member states shall ensure that all unfair trading practices are prohibited , including at least the following trading practices :


### a buyer cancels orders of perishable food products at such short notice that a supplier cannot reasonably be expected to find an alternative to commercialise or use these products ; ### a buyer cancels orders of perishable food products at such short notice that a supplier cannot reasonably be expected to find an alternative to commercialise or use these products at the same value ;


### when deciding whether an individual trading practice is considered unfair it is important to reduce the risk of limiting the use of fair and efficiency - creating agreements agreed between parties . as a result , it is appropriate to distinguish practices that are foreseen in clear and unambiguous terms in supply agreements between parties from practices that occur after the transaction has started without being agreed in advance in clear and unambiguous terms , so that only unilateral and retrospective changes to those relevant terms of the supply agreement are prohibited . however , certain trading practices are considered as unfair by their very nature and should not be subject to the parties’ contractual freedom to deviate from them . ### when deciding whether an individual trading practice is considered unfair it is important to reduce the risk of limiting the use of fair and efficiency - creating agreements agreed between parties . as a result , it is appropriate to distinguish practices that do not result from an unbalanced power relationship and are foreseen in clear and unambiguous terms in supply agreements between parties , from practices that occur after the transaction has started without being agreed in advance in clear and unambiguous terms , so that only unilateral changes to those relevant terms of the supply agreement are prohibited . however , certain trading practices are considered as unfair by their very nature and should not be subject to the parties’ contractual freedom to deviate from them .


### “perishable food products” means food products that will become unfit for human consumption unless they are stored , treated , packaged or otherwise conserved to prevent them from becoming unfit . ### “perishable agricultural and food products” means agricultural and food products that will become unfit for proper use or consumption unless they are stored , treated , packaged or otherwise conserved to prevent them from becoming unfit .


### no sooner than three years after the date of application of this directive , the commission shall carry out an evaluation of this directive and present a report on the main findings to the european parliament , the council and the european economic and social committee and the committee of the regions . ### no later than three years after the date of application of this directive , the commission shall carry out an evaluation of this directive and present a report on the main findings to the european parliament , the council and the european economic and social committee and the committee of the regions . in the framework of that evaluation , the need to review this directive shall be considered , in particular as to whether or not new forms of unfair trading practice are to be included .


### a buyer cancels orders of perishable food products at such short notice that a supplier cannot reasonably be expected to find an alternative to commercialise or use these products ; ### a buyer unilaterally cancels orders of perishable agricultural or food products at such short notice that a supplier cannot reasonably be expected to find an alternative to commercialise or use these products ;


### the number and size of operators vary across the different stages of the food supply chain . differences in bargaining power relate to the different levels of concentration of operators and can enable the unfair exercise of bargaining power by using unfair trading practices . unfair trading practices are in particular harmful for small and medium - sized operators in the food supply chain . agricultural producers , who supply primary agricultural products , are largely small and medium - sized . ### the number and size of operators vary across the different stages of the agricultural and food supply chain . differences in bargaining power relate to the different levels of concentration of operators and can enable the unfair exercise of bargaining power by using unfair trading practices . unfair trading practices are even more harmful for small and medium - sized operators in the agricultural and food supply chain . agricultural producers , who supply primary agricultural products , are often small and medium - sized .


### a buyer unilaterally and retroactively changes the terms of the supply agreement concerning the frequency , timing or volume of the supply or delivery , the quality standards or the prices of the food products ; ### a buyer unilaterally and retroactively changes the terms of the supply agreement concerning the frequency , timing or volume of the supply or delivery , the quality standards or the prices of the agricultural and food products , or the terms of payment ;


### different operators are active in the food supply chain at the stages of production , processing , marketing , distribution and retail of food products . the chain is by far the most important channel for bringing food products from “farm to fork” . those operators trade food products , that is to say primary agricultural products , including fishery and aquaculture products , as listed in annex i to the treaty for use as food , and other food products not listed in that annex but processed from agricultural products for use as food . ### different operators are active in the agricultural and food supply chain at the stages of production , processing , importing , exporting , marketing , distribution , retail and sale to final consumers of agri - food products . the chain is by far the most important channel for bringing agri - food products from “farm to fork” . those operators trade agricultural and food products , that is to say primary agricultural products , including fishery and aquaculture products , as listed in annex i to the treaty for use as food , and other food products not listed in that annex but processed from agricultural products for use as food .


### a supplier pays for the wastage of food products that occurs on the buyer ' s premises and that is not caused by the negligence or fault of the supplier . ### a supplier pays for the wastage of agricultural or food products that occurs on the buyer ' s premises and that is not caused by the negligence or fault of the supplier ;


### in the interest of an effective implementation of the policy in respect of unfair trading practices in business - to - business relationships in the food supply chain , the commission should review the application of this directive and submit a report to the european parliament , the council , the european economic and social committee and the committee of the regions . the review should also pay particular attention to whether protection of small and medium - sized buyers of food products in the supply chain – in addition to the protection of small and medium sized suppliers – in the future would be justified , ### in the interest of an effective implementation of the policy in respect of unfair trading practices in business - to - business relationships in the agricultural and food supply chain , the commission should review the application of this directive and submit a report to the european parliament , the council , the european economic and social committee and the committee of the regions . the review should also pay particular attention to whether protection of small and medium - sized buyers of agricultural and food products in the supply chain in the future would be justified ,


### a buyer unilaterally and retroactively changes the terms of the supply agreement concerning the frequency , timing or volume of the supply or delivery , the quality standards or the prices of the food products ; ### a buyer unilaterally changes the terms of the supply agreement concerning the frequency , timing or volume of the supply or delivery , the quality standards , or the prices of the food products , or the terms of payment ;


### as unfair trading practices may occur at any stage of the sale of a food product , i . e . before , during or after a sales transaction , member states should ensure that the provisions of this directive should apply to such practices whenever they occur . ### as unfair trading practices may occur at any stage of the sale of an agricultural or food product , i . e . before , during or after a sales transaction , or in connection with the provision of services by the buyer to the supplier , member states should ensure that the provisions of this directive should apply to such practices whenever they occur .


### the enforcement authorities of the member states should have the necessary powers that enable them to effectively gather any factual information by way of information requests . they should have the power to order the termination of a prohibited practice , where applicable . the existence of a deterrent , such as the power to impose fines and the publication of investigation results , can encourage behavioural change and pre - litigation solutions between the parties and should therefore be part of the powers of the enforcement authorities . the commission and the enforcement authorities of the member states should cooperate closely so as to ensure a common approach with respect to the application of the rules set out in this directive . in particular , the enforcement authorities should provide each other mutual assistance , for example by sharing information and assisting in investigations which have a cross - border dimension . ### the enforcement authorities of the member states should have the necessary powers that enable them to effectively gather any factual information by way of information requests or by undertaking on - site inspections . they should have the power to order the termination of a prohibited practice , where applicable . the existence of a deterrent , such as the power to impose fines and the publication of investigation results , can encourage behavioural change and pre - litigation solutions between the parties and should therefore be part of the powers of the enforcement authorities . the commission and the enforcement authorities of the member states should coordinate their actions closely via the establishment of a coordination forum , so as to ensure a common approach with respect to the application of the rules set out in this directive . in particular , the enforcement authorities should provide each other mutual assistance , for example by sharing information , assisting in investigations and taking enforcement measures for cases which have a cross - border dimension .


### innovation actions : up to 70 % of the total eligible costs , except for non - profit legal entities where the programme may reimburse up to 100 % of the total eligible costs ; ### innovation actions : up to 70% of the total eligible costs , except for non - profit legal entities , secondary and higher education establishments , research organisations and smes , where the programme may reimburse up to 100 % of the total eligible costs ;


### eur 10 000 000 000 for cluster ' food and natural resources ' ; ### eur 12 750 000 000 for cluster ' sustainable food , natural resources and the environment ' , i . e . 18% of the total budget of pillar ii ;


### in order to achieve the greatest possible impact of union funding and the most effective contribution to the union ' s policy objectives , the programme should enter into european partnerships with private and / or public sector partners . such partners include industry , research organisations , bodies with a public service mission at local , regional , national or international level , and civil society organisations such as foundations that support and / or carry out research and innovation , provided that desired impacts can be achieved more effectively in partnership than by the union alone . ### in order to achieve the greatest possible impact of union funding and the most effective contribution to the union ' s policy objectives , the programme may enter into european partnerships with private and / or public sector partners , on the basis of the outcome of the strategic planning . such partners include industry , research organisations including research infrastructures , bodies with a public service mission at local , regional , national or international level , and civil society organisations such as non - governmental organisations and foundations that support and / or carry out research and innovation , provided that desired impacts can be achieved more effectively in partnership than by the union alone .


### in accordance with article 237 and 237 of the financial regulation , external experts shall be remunerated based on standard conditions . if justified , an appropriate level of remuneration beyond the standard conditions based on relevant market standards , especially for specific high level experts , may be granted . ### in accordance with article 237 and 237 of the financial regulation , independent external experts shall be remunerated based on standard conditions .


### ' mission ' means a portfolio of actions intended to achieve a measurable goal within a set timeframe , and impact for science and technology and / or society and citizens that could not be achieved through individual actions ; ### ' mission ' means a portfolio of actions , which can be cross - cluster , intended to achieve a measurable goal within a set timeframe , and impact for science and technology and / or society and citizens that could not be achieved through individual actions ;


### to foster all forms of innovation , including breakthrough innovation , and strengthen market deployment of innovative solutions ; ### to foster all forms of technological , social , cultural or educational innovation , including breakthrough innovation , and strengthen the large deployment of innovative knowledge and solutions in society and economy ;


### activities to be carried out under the specific programme referred to in article 1 and which are laid down in regulation &#8230 ; . establishing the european defence fund , shall be research with an exclusive focus on defence applications , with the objective to foster the competitiveness , efficiency and innovation of defence industry . ### activities to be carried out under the specific programme referred to in article 1 and which are laid down in regulation &#8230 ; . establishing the european defence fund , shall be research with an exclusive focus on defence research and applications , with the objective to foster the competitiveness , efficiency and innovation of defence industry .


### the programme is expected to have societal impact by addressing eu policy priorities through r&i , delivering benefits and impact through r&i missions and strengthening the uptake of innovation in society . progress towards this impact will be monitored through proxy indicators set along the following four key impact pathways . ### the programme is expected to have societal impact by addressing global challenges and eu policy priorities and commitments through r&i , delivering benefits and impact through r&i missions and strengthening the uptake of innovation in society through cso and citizens involvement ultimately contributing to people ' s well - being . progress towards this impact will be monitored through proxy indicators set along the following four key impact pathways .


### the work programme or rules of contest may include obligations regarding communication , exploitation and dissemination . ### the work programme or rules of contest shall include obligations regarding communication , visibility , exploitation and dissemination .


### eur 10 500 000 000 for the european innovation council , including up to eur 500 000 000 for european innovation ecosystems ; ### eur 11 390 000 000 for the european innovation council , i . e . 75% of the total budget of pillar iii , including up to eur 500 000 000 for european innovation ecosystems ;


### proposals shall be systematically screened to identify those actions raising complex or serious ethics issues and submit them to an ethics assessment . the ethics assessment shall be carried out by the commission unless it is delegated to the funding body . for actions involving the use of human embryonic stem cells or human embryos , an ethics assessment shall be mandatory . ethics screenings and assessments shall be carried out with the support of ethics experts . the commission and the funding bodies shall ensure the transparency of the ethics procedures as much as possible . ### proposals shall be systematically screened to identify those actions raising complex or serious ethics issues and submit them to an ethics assessment . the ethics assessment shall be carried out by the commission unless it is delegated to the funding body . for actions involving the use of human embryonic stem cells or human embryos , an ethics assessment shall be mandatory . ethics screenings and assessments shall be carried out with the support of ethics experts . the commission and the funding bodies shall ensure the transparency of the ethics procedures .


### the financial envelope for the implementation of the framework programme for the period 2021 &#8211 ; 2027 shall be eur 94 100 000 000 in current prices for the specific programme referred to in article 1 and , in addition , the amount for the specific programme referred to in article 1 , as laid down in regulation&#8230 ; . establishing the european defence fund . ### the financial envelope for the implementation of the framework programme for the period 2021 &#8211 ; 2027 shall be eur 120 000 000 000 in constant prices for the specific programme referred to in article 1 and , in addition , the amount for the specific programme referred to in article 1 , as laid down in regulation&#8230 ; . establishing the european defence fund .


### the programme shall ensure the effective promotion of gender equality and the gender dimension in research and innovation content . particular attention shall be paid to ensuring gender balance , subject to the situation in the field of research and innovation concerned , in evaluation panels and in bodies such as expert groups . ### the programme shall ensure the effective promotion of gender equality , inter alia through enabling a better family / work life balance , and the gender dimension in research and innovation content . particular attention shall be paid to ensuring accessibility and gender balance , subject to the situation in the field of research and innovation concerned , across the various parts of the programme , and notably in evaluation panels and in bodies such as expert groups .


### cluster ' inclusive and secure society ' ; ### cluster ' inclusive society ' ;


### have a clear eu - added value and contribute to reaching union priorities ; ### have a clear eu - added value , contribute to reaching union priorities and commitments , in particular the un sdgs and the paris agreement ; ;


### the programme should promote and integrate cooperation with third countries and international organisations and initiatives based on common interest , mutual benefit and global commitments to implement the un sdgs . international cooperation should aim to strengthen the union ' s research and innovation excellence , attractiveness and economic and industrial competitiveness , to tackle global challenges , as embodied in the un sdgs , and to support the union ' s external policies . an approach of general opening for international participation and targeted international cooperation actions should be followed , including through appropriate eligibility for funding of entities established in low to middle income countries . at the same time , association of third countries to the programme should be promoted . ### the programme should promote and integrate cooperation with third countries and international organisations and initiatives based on common interest , mutual benefit and global commitments to implement the paris agreement and the un sdgs . international cooperation should aim to strengthen the union ' s research and innovation excellence , attractiveness and economic and industrial competitiveness , to tackle global challenges , as embodied in the paris agreement and the un sdgs , and to support the union ' s external policies . an approach of general opening for international participation and targeted international cooperation actions should be followed , including through appropriate eligibility for funding of entities established in low to middle income countries . at the same time , association of third countries to the programme should be promoted .


### eur 2 200 000 000 for the non - nuclear direct actions of the joint research centre ; ### eur 2 810 000 000 for the non - nuclear direct actions of the joint research centre , i . e . 4% of the total budget of pillar ii ;


### the action may also be terminated where expected results have lost their relevance for the union due to scientific , technological or economic reasons , including in the case of eic and missions , their relevance as part of a portfolio of actions . ### the action may in exceptional cases also be terminated where expected results have lost their relevance for the union and / or the stakeholder due to scientific , technological or economic reasons , including in the case of missions , their relevance as part of a portfolio of actions . the commission shall undergo a scrutiny procedure with the action coordinator and stakeholders before it can decide to terminate an action . the approval to terminate will be taken by the programme committee .


### the missions shall be implemented in accordance with article 5 of the specific programme . evaluation shall be carried out in accordance with article 26 . ### the content of the missions , their implementation method , estimated budget and synergies with other union funds and links with european partnerships shall be laid down in the strategic r&i plan , in accordance with article 6 of this regulation and article 5 of the specific programme , before being implemented through work programmes . in accordance with art 11 [ decision ] , their objectives , funding , targets and timeline shall be further specified in work programmes . the proportion that should be covered by the programme of the total estimated cost to achieve the missions may vary from mission to mission . missions requiring bigger sums of money from outside the programme will include a plan for how this money will be raised . evaluation shall be carried out in accordance with article 26 .


### the scope of association of each third country to the programme shall take into account the objective of driving economic growth in the union through innovation . accordingly , with the exception of eea members , acceding countries , candidate countries and potential candidates , parts of the programme may be excluded from an association agreement for a specific country . ### the scope of association of each third country to the programme shall take into account the objective of driving economic , cultural , social or environmental development in the union through research and innovation . accordingly , with the exception of eea members , acceding countries , candidate countries and potential candidates , parts of the programme may be excluded from an association agreement for a specific country .


### full engagement of industry in the programme , at all levels from the individual entrepreneur and small and medium - sized enterprises to large scale enterprises , should constitute one of the main channels through which the programme ' s objectives are to be realised , specifically towards the creation of sustainable jobs and growth . industry should contribute to the perspectives and priorities established through the strategic planning process which should support the development of work programmes . such engagement by industry should see its participation in the actions supported at levels at least commensurate with those under the previous framework programme horizon 2020 established by regulation no 1291 / 2013 of the european parliament and the council13 . _________________ 13 ### the programme should ensure the full engagement of industry in the programme , at all levels from the individual entrepreneur and small and medium - sized enterprises to large scale enterprises , specifically towards the creation of sustainable jobs and sustainable development . together with other stakeholders such as the scientific community , research organisations and civil society organisations , industry should contribute to the perspectives and priorities established through the strategic planning process which should support the development of work programmes .


### appointment of external experts ### appointment of independent external experts


### the programme ' s general objective is to deliver scientific , economic and societal impact from the union ' s investments in research and innovation so as to strengthen the scientific and technological bases of the union and foster its competitiveness , including in its industry , deliver on the union strategic priorities , and contribute to tackling global challenges , including the sustainable development goals . ### the programme ' s general objective is to deliver scientific , technological , economic and societal impact from the union ' s investments in research and innovation so as to strengthen the scientific and technological bases of the union , and foster its competitiveness in all member states and the regions of the union , including in its industry , deliver on the union strategic priorities , contribute to tackling global societal challenges , as set out in the sustainable development goals , and achieve a balanced european research area .


### eur 7 700 000 000 for cluster ' health ' ; ### eur 9 820 000 000 for cluster ' health and well - being ' , i . e . 14% of the total budget of pillar ii ;


### pillar i ' open science ' , pursuing the specific objective set out in article 3 and also supporting specific objectives set out in article 3 and , with the following components : ### pillar i ' excellent science ' , pursuing the specific objective set out in article 3 and also supporting specific objectives set out in article 3 and , with the following components :


### the work programme or rules of contest may include obligations regarding communication , exploitation and dissemination . ### the work programme or rules of contest shall include obligations regarding communication , ownership , access rights , exploitation and dissemination , including licensing provisions , to ensure maximum uptake of the results and affordable and widespread access to the results .


### cluster ' health ' ; ### cluster ' health and well - being ' ;


### by derogation from article 237 of the financial regulation , external experts may be selected without a call for expressions of interest , if justified and the selection is carried out in a transparent manner . ### by derogation from article 237 of the financial regulation , independent external experts may exceptionally be selected without a call for expressions of interest , if justified and the selection is carried out in a transparent manner . such experts will need to prove their independence and capacity to support the european long - term rdi objectives .


### it is the union ' s objective to strengthen its scientific and technological bases and encourage its competitiveness , including in its industry , while promoting all research and innovation activities to deliver on the union ' s strategic priorities , which ultimately aim at promoting peace , the union ' s values and the well - being of its peoples . ### it is the union ' s objective to strengthen its scientific and technological bases by achieving a balanced european research area in which researchers , scientific knowledge and technology circulate freely , and encouraging it to become more competitive , including in its industry , while promoting all research and innovation activities to deliver on the union ' s strategic priorities and commitments , which ultimately aim at promoting peace , tackling climate change , sustainable development , the union ' s values and the well - being of its peoples .


### beneficiaries having received union funding shall grant access to their results on a royalty - free basis to the union institutions , bodies , offices or agencies for developing , implementing and monitoring union policies or programmes . access shall be limited to non - commercial and non - competitive use . ### beneficiaries having received union funding shall grant access to their results on a royalty - free basis to the union institutions , bodies , offices or agencies for developing , implementing and monitoring union policies or programmes .


### pillar ii ' global challenges and industrial competitiveness ' , pursuing the specific objective set out in article 3 and also supporting the specific objectives set out in article 3 and , with the following components : ### pillar ii ' global societal challenges and a net - zero ghg emission economy ' , pursuing the specific objective set out in article 3 and also supporting the specific objectives set out in article 3 with a strong focus on addressing societal challenges and the following components :


### the programme should promote and integrate cooperation with third countries and international organisations and initiatives based on common interest , mutual benefit and global commitments to implement the un sdgs . international cooperation should aim to strengthen the union ' s research and innovation excellence , attractiveness and economic and industrial competitiveness , to tackle global challenges , as embodied in the un sdgs , and to support the union ' s external policies . an approach of general opening for international participation and targeted international cooperation actions should be followed , including through appropriate eligibility for funding of entities established in low to middle income countries . at the same time , association of third countries to the programme should be promoted . ### the programme should promote and integrate cooperation with third countries and international organisations and initiatives based on common interest , mutual benefits and global commitments to implement the un sdgs and the paris agreement . international cooperation should aim to strengthen the union ' s excellence in research and innovation , in particular eco - innovation , attractiveness and economic and industrial sustainability and competitiveness , to tackle global social challenges , as embodied in the paris agreement and the un sdgs , and to support the union ' s external policies with a special focus on reduction and eradication of poverty . an approach of general opening for international participation and targeted international cooperation actions including with low - and middle income countries , should be followed . appropriate eligibility criteria concerning different levels of r&i capacities for funding of entities in low to middle income countries should be applied . at the same time , association of third countries to the programme should be promoted in order to encourage the contribution of worldwide talent to the delivery of the programme .


### eur 13 500 000 000 for pillar iii ' open innovation ' for the period 2021 - 2027 , of which ### eur 13 800 000 000 for pillar iii ' innovative europe ' for the period 2021 - 2027 , of which


### be centered on ambitious but realistic research and innovation activities ; ### be selected in a transparent manner and be centred on ambitious , excellence driven but realistic research and innovation activities across all stages of development .


### the action may also be terminated where expected results have lost their relevance for the union due to scientific , technological or economic reasons , including in the case of eic and missions , their relevance as part of a portfolio of actions . ### the action may in exceptional cases also be terminated where expected results have lost their relevance for the union due to scientific , technological or economic reasons , including in the case of missions , their relevance as part of a portfolio of actions .


### to foster all forms of innovation , including breakthrough innovation , and strengthen market deployment of innovative solutions ; ### to foster all forms of technological to social , cultural , or educational innovation breakthrough innovation , and strengthen deployment of innovative knowledge and solutions ;


### to deliver scientific , economic and societal impact in pursuit of this general objective , the union should invest in research and innovation through horizon europe - a framework programme for research and innovation 2021 - 2027 to support the creation and diffusion of high - quality knowledge and technologies , to strengthen the impact of research and innovation in developing , supporting and implementing union policies , to support the uptake of innovative solutions in industry and society to address global challenges and promote industrial competitiveness ; to foster all forms of innovation , including breakthrough innovation , and strengthen market deployment of innovative solutions ; and optimise the delivery of such investment for increased impact within a strengthened european research area . ### to deliver scientific , economic , climate and societal impact in pursuit of this general objective , the union should invest in research and innovation through horizon europe - a framework programme for research and innovation 2021 - 2027 to support the creation and diffusion of high - quality knowledge and technologies within and outside the union , to strengthen the impact of research and innovation in developing , supporting and implementing union policies and commitments , to support the uptake of innovative solutions in industry and society to improve human well - being and to address global challenges , notably the sdgs and the paris agreement and promote industrial competitiveness ; to foster all forms of innovation , including breakthrough innovation , and strengthen market deployment of innovative solutions ; and optimise the delivery of such investment for increased impact within a strengthened european research area .


### ' european partnership ' means an initiative where the union , together with private and / or public partners , commit to jointly support the development and implementation of a programme of research and innovation activities , including those related to market , regulatory or policy uptake ; ### ' european partnership ' means an initiative where the union , together with private and / or public partners , commit to jointly support the development and implementation of a programme of research and innovation activities , including those pursuant to article 185 and 187 tfue .


### the programme shall ensure the effective promotion of gender equality and the gender dimension in research and innovation content . particular attention shall be paid to ensuring gender balance , subject to the situation in the field of research and innovation concerned , in evaluation panels and in bodies such as expert groups . ### the programme shall ensure the effective promotion of gender equality , inter alia through enabling a better family / work life balance , and the gender dimension in research and innovation content . particular attention shall be paid to ensuring accessibility and gender balance , subject to the situation in the field of research and innovation concerned , across the various parts of the programme , and notably in evaluation panels and in bodies such as expert groups .


### entities established in a non - associated third country should in principle bear the cost of their participation . however , for low to middle income countries and exceptionally for other non - associated third countries they could be eligible for funding in an action if : ### with the exception of low - and lower - middle income countries , entities established in a non - associated third country should in principle bear the cost of their participation . a list of lower to lower - middle income countries eligible for funding will be annexed to every work programme adopted by the commission and exceptionally for other non - associated third countries they could be eligible for funding in an action if :


### full engagement of industry in the programme , at all levels from the individual entrepreneur and small and medium - sized enterprises to large scale enterprises , should constitute one of the main channels through which the programme ' s objectives are to be realised , specifically towards the creation of sustainable jobs and growth . industry should contribute to the perspectives and priorities established through the strategic planning process which should support the development of work programmes . such engagement by industry should see its participation in the actions supported at levels at least commensurate with those under the previous framework programme horizon 2020 established by regulation no 1291 / 2013 of the european parliament and the council13 . _________________ 13 ### the programme should ensure the full engagement of industry in the programme , at all levels from the individual entrepreneur and small and medium - sized enterprises to large scale enterprises , specifically towards the creation of sustainable jobs and sustainable development . together with other stakeholders such as the scientific community , research organisations and civil society organisations , industry should contribute to the perspectives and priorities established through the strategic planning process which should support the development of work programmes .


### in accordance with article 237 and 237 of the financial regulation , external experts shall be remunerated based on standard conditions . if justified , an appropriate level of remuneration beyond the standard conditions based on relevant market standards , especially for specific high level experts , may be granted . ### in accordance with article 237 and 237 of the financial regulation , independent external experts shall be remunerated based on standard conditions .


### to optimise the programme ' s delivery for increased impact within a strengthened european research area . ### to optimise the programme ' s delivery for strengthening european research area


### proposals shall be systematically screened to identify those actions raising complex or serious ethics issues and submit them to an ethics assessment . the ethics assessment shall be carried out by the commission unless it is delegated to the funding body . for actions involving the use of human embryonic stem cells or human embryos , an ethics assessment shall be mandatory . ethics screenings and assessments shall be carried out with the support of ethics experts . the commission and the funding bodies shall ensure the transparency of the ethics procedures as much as possible . ### proposals shall be systematically screened to identify those actions raising complex or serious ethics issues and submit them to an ethics assessment . the ethics assessment shall be carried out by the commission unless it is delegated to the funding body . for actions involving the use of human embryonic stem cells , human embryos or animals , an ethics assessment shall be mandatory . ethics screenings and assessments shall be carried out with the support of ethics experts . the commission and the funding bodies shall ensure the transparency of the ethics procedures .


### “background” means any data , know - how or information whatever its form or nature , tangible or intangible , including any rights such as intellectual property rights , that is : held by beneficiaries prior to their accession to the action ; identified by the beneficiaries in writing in any manner as needed for implementing the action or for exploiting its results ; ### “background” means any data , know - how or information whatever its form or nature , tangible or intangible , including any rights such as intellectual property rights , that is : held by beneficiaries prior to their accession to the action ; and identified by the beneficiaries in a written agreement as needed for implementing the action or for exploiting its results ;


### to strengthen the impact of research and innovation in developing , supporting and implementing union policies , and support the uptake of innovative solutions in industry and society to address global challenges ; ### to strengthen the eu added value of rdi funding , the impact of research and innovation for the union in developing , supporting and implementing union policies , and support the uptake of innovative solutions in european industry and society to improve people’s well - being ;


### eur 10 000 000 000 for cluster ' food and natural resources ' ; ### eur 12 750 000 000 for cluster ' sustainable food , natural resources and the environment ' , i . e . 18% of the total budget of pillar ii ;


### the scope of association of each third country to the programme shall take into account the objective of driving economic growth in the union through innovation . accordingly , with the exception of eea members , acceding countries , candidate countries and potential candidates , parts of the programme may be excluded from an association agreement for a specific country . ### the scope of association of each third country to the programme shall take into account the objective of driving economic cultural , social and environmental development in the union through research and innovation . accordingly , with the exception of eea members , acceding countries , candidate countries and potential candidates , parts of the programme may be excluded from an association agreement for a specific country .


### “results” means any tangible or intangible effect of the action , such as data , know - how or information , whatever its form or nature , whether or not it can be protected , as well as any rights attached to it , including intellectual property rights ; ### “results” means any tangible or intangible output of the action , such as data , know - how or information , whatever its form or nature , whether or not it can be protected , as well as any rights attached to it , including intellectual property rights ;


### the missions shall be implemented in accordance with article 5 of the specific programme . evaluation shall be carried out in accordance with article 26 . ### the content of the missions , their implementation method , estimated budget and synergies with other union funds and links with european partnerships shall be laid down in the strategic r&i plan , in accordance with article 6 of this regulation and article 5 of the specific programme , before being implemented through work programmes . in accordance with art 11 [ decision ] , their objectives , funding , targets and timeline shall be further specified in work programmes . the proportion that should be covered by the programme of the total estimated cost to achieve the missions may vary from mission to mission . missions requiring bigger sums of money from outside the programme will include a plan for how this money will be raised . evaluation shall be carried out in accordance with article 26 .


### cluster ' food and natural resources ' : protecting , restoring , sustainably managing and using natural and biological resources from land and sea to address food and nutrition security and the transition to a low carbon , resource efficient circular economy . ### cluster ' food and natural resources ' : protecting , restoring , sustainably managing and using natural and biological resources from land and sea to address food and nutrition security and the transition to a low carbon , resource efficient circular economy , while developing awareness and educational schemes to healthy nutrition .


### beneficiaries shall make a contribution of 5 % of the union funding for the action . on the basis of periodic evaluations , this contribution may be raised by the commission up to 8% or may be reduced under 5% . the beneficiaries ' contribution to the mechanism may be offset from the initial pre - financing and be paid to the fund on behalf of the beneficiaries . ### beneficiaries shall make a contribution of 5 % of the union funding for the action . on the basis of periodic evaluations , this contribution may be raised by the commission up to 8% for high - risk projects or may be reduced under 5% . the beneficiaries ' contribution to the mechanism may be offset from the initial pre - financing and be paid to the fund on behalf of the beneficiaries .


### in order to achieve the greatest possible impact of union funding and the most effective contribution to the union ' s policy objectives , the programme should enter into european partnerships with private and / or public sector partners . such partners include industry , research organisations , bodies with a public service mission at local , regional , national or international level , and civil society organisations such as foundations that support and / or carry out research and innovation , provided that desired impacts can be achieved more effectively in partnership than by the union alone . ### in order to achieve the greatest possible impact of union funding and the most effective contribution to the union ' s policy objectives and commitments , the programme should enter into european partnerships with private and / or public sector partners . such partners include industry , research organisations , bodies with a public service mission at local , regional , national or international level , and civil society organisations such as non - governmental organisations and foundations that support and / or carry out research and innovation , provided that desired impacts can be achieved more effectively in partnership than by the union alone .


### unless the work programme provides otherwise , proposals shall include a plan for the exploitation and dissemination of the results . if the expected exploitation entails developing , creating , manufacturing and marketing a product or process , or in creating and providing a service , the plan shall include a strategy for such exploitation . if the plan provides for exploitation primarily in non - associated third countries , the legal entities shall explain how that exploitation is still in the union interest . ### unless the work programme provides otherwise , proposals shall include a plan for the exploitation and dissemination of the results . if the expected exploitation entails developing , creating , manufacturing and marketing a product or process , or in creating and providing a service , the plan shall include a strategy for such exploitation and outline how the product can be made accessible and affordable . if the plan provides for exploitation primarily in non - associated third countries , the legal entities shall explain how that exploitation is still in the union interest .


### in actions under the cluster ‘ inclusive and secure society’ , area of intervention ‘ protection and security’ , beneficiaries having received union funding shall also grant access to their results on a royalty - free basis to member states ' national authorities , for developing , implementing and monitoring their policies or programmes in that area . access shall be limited to non - commercial and non - competitive use and shall be granted upon bilateral agreement defining specific conditions aimed at ensuring that those rights will be used only for the intended purpose and that appropriate confidentiality obligations will be in place . the requesting member state , union institution , body , office or agency shall notify all member states of such requests . ### in actions under the cluster ‘ resilient society’ , area of intervention ‘ protection and security’ , beneficiaries having received union funding shall also grant access to their results on a royalty - free basis to member states ' national authorities , for developing , implementing and monitoring their policies or programmes in that area . access shall be granted upon bilateral agreement defining specific conditions aimed at ensuring that those rights will be used only for the intended purpose and that appropriate confidentiality obligations will be in place . the requesting member state , union institution , body , office or agency shall notify all member states of such requests .


### the programme should promote and integrate cooperation with third countries and international organisations and initiatives based on common interest , mutual benefit and global commitments to implement the un sdgs . international cooperation should aim to strengthen the union ' s research and innovation excellence , attractiveness and economic and industrial competitiveness , to tackle global challenges , as embodied in the un sdgs , and to support the union ' s external policies . an approach of general opening for international participation and targeted international cooperation actions should be followed , including through appropriate eligibility for funding of entities established in low to middle income countries . at the same time , association of third countries to the programme should be promoted . ### the programme should promote and integrate cooperation with third countries and international organisations and initiatives based on common interest , mutual benefits and global commitments to implement the un sdgs and the paris agreement . international cooperation should aim to strengthen the union ' s excellence in research and innovation , in particular eco - innovation , attractiveness and economic and industrial sustainability and competitiveness , to tackle global social challenges , as embodied in the paris agreement and the un sdgs , and to support the union ' s external policies with a special focus on reduction and eradication of poverty . an approach of general opening for international participation and targeted international cooperation actions including with low - and middle income countries , should be followed . appropriate eligibility criteria concerning different levels of r&i capacities for funding of entities in low to middle income countries should be applied . at the same time , association of third countries to the programme should be promoted in order to encourage the contribution of worldwide talent to the delivery of the programme .


### implementation and forms of eu funding ### strategic planning and implementation and forms of eu funding