### by way of derogation from article 16 of regulation no … / 2013 [ rules for the participation and dissemination in horizon 2020 ] , the grant agreements with participants shall be signed by the designated national programme management agency . ### by way of derogation from article 16 of regulation no … / 2013 [ rules for the participation and dissemination in horizon 2020 ] , the grant agreements with participants shall be signed by the designated national programme management agency . the time to contract shall be published and shall be limited to 5 months .


### specific derogations from regulation no … / 2013 [ h2020 rfp ] are necessary as the aal programme is intended as a close to market innovation programme , in which many different national funding streams are joined up . those national programmes have by their nature different participation rules and cannot be expected to fully align with regulation no … / 2013 [ horizon 2020 rules for participation ] . in addition , the aal programme is targeting in particular small and medium - sized enterprises and user organisations not usually participating in union research and innovation activities . in order to facilitate the participation of those enterprises and organisations , the union financial contribution is provided in accordance with the well - known rules of their national funding programmes and implemented through a single grant combining union funding with the corresponding national funding . ### specific derogations from regulation no … / 2013 [ h2020 rfp ] are necessary as the aal programme is intended as a close to market innovation programme , in which many different national funding streams are joined up . those national programmes have by their nature different participation rules and cannot be expected to immediately fully align with regulation no … / 2013 [ horizon 2020 rules for participation ] . however , the aal programme should further address the complexity arising from different countries ' financial and national eligibility and its effects on implementation and participation . in addition , the aal programme is targeting in particular small and medium - sized enterprises and user organisations not usually participating in union research and innovation activities . in order to facilitate the participation of those enterprises and organisations , the union financial contribution should be provided in accordance with the well - known rules and implemented through a single grant combining union funding with the corresponding national funding .


### each participating state shall facilitate the participation of organisations representing demand side actors . ### each participating state shall ensure the participation of organisations representing demand side actors , which shall be involved from the earliest stage of all research and innovation projects financed under the aal programme .


### 2 . maintain and further develop a critical mass of applied research , development and innovation at union level in the areas of ict - based products and services for active and healthy ageing ; ### 2 . maintain and further develop a critical mass of applied research , development and innovation at union level integrating solutions , products and services , including ict - based , for active and healthy ageing ;


### the active and assisted living research and development programme should build on the achievements of the previous programme and address its shortcomings by encouraging stronger user participation in projects and by a more agile programme implementation . ### the active and assisted living research and development programme should build on the achievements of the previous programme and address its shortcomings by ensuring strong user participation in all projects , from the initial stage , in order to ensure that solutions developed are acceptable and respond to specific needs . in addition simplified , consistent and agile programme implementation is needed .


### horizon 2020 - the framework programme for research and innovation established by regulation no … / 2013 of the european parliament and of the council of … 20135 aims at achieving a greater impact on research and innovation by contributing to the strengthening of public - public partnerships , including through union participation in programmes undertaken by several member states in accordance with article 185 of the treaty . __________________ 5 oj … [ h2020 fp ] ### horizon 2020 - the framework programme for research and innovation established by regulation no … / 2013 of the european parliament and of the council of … 20135 aims at achieving a greater impact on research and innovation by developing closer synergies , increasing coordination and avoiding unneccessary duplication with international , national and regional research programmes . public - public partnerships , including union participation in programmes undertaken by several member states in accordance with article 185 of the treaty should achieve these goals . __________________ 5 oj … [ h2020 fp ]


### 1 . accelerate the emergence of innovative ict - based products and services for active and healthy ageing at home , in the community , or at work , thus improving the quality of life , autonomy , participation in social life , skills or employability of older adults and increasing the efficiency of health and social care provision ; ### 1 . accelerate the emergence of relevant and affordable innovative integrated solutions , products and services , including ict - based , for active and healthy ageing at home , in the community , or at work , thus improving the quality of life , autonomy , participation in social life , skills or employability of older adults and increasing the efficiency of health and social care provision ;


### member states shall ensure that , to the extent that their courts have powers to order disclosure without hearing the person from whom disclosure is sought , no penalty for non - compliance with such an order may be imposed until the addressee of such an order has been heard by the court . ### member states shall ensure that their courts have powers to order disclosure without hearing the person from whom disclosure is sought , no penalty for non - compliance with such an order may be imposed until the addressee of such an order has been provided with the possibility to be heard by the court .


### member states shall ensure that , to the extent that their courts have powers to order disclosure without hearing the person from whom disclosure is sought , no penalty for non - compliance with such an order may be imposed until the addressee of such an order has been heard by the court . ### member states shall ensure that , to the extent that their courts have powers to order disclosure without hearing the person from whom disclosure is sought , no penalty for non - compliance with such an order may be imposed until the addressee of such an order has been provided with the possibility to be heard by the court .


### in cases where the infringement is being or has been investigated by a competition authority , whether the request has been formulated specifically with regard to the nature , object or content of such documents rather than by a non - specific request concerning documents submitted to a competition authority or held in the file of such competition authority . ### in cases where the infringement is being or has been investigated by a competition authority , whether the request has been formulated specifically with regard to the nature , object or content of such documents submitted to a competition authority or held in the file of such competition authority .


### from 2020 onwards , this regulation sets a target of 95 g co2 / km as average emissions for the new car fleet as measured in accordance with regulation no 715 / 2007 and annex xii to regulation no 692 / 2008 and its implementing measures , and innovative technologies . ### from 2020 onwards , this regulation sets a target of 80 g co2 / km as average emissions for the new car fleet as measured in accordance with regulation no 715 / 2007 and annex xii to regulation no 692 / 2008 and its implementing measures .


### a = 0 , 0333 . ### a = slope corresponding to 60% based on the 2009 fleet


### the european insurance and occupational pensions authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a community body having legal personality and it should have legal , administrative and financial autonomy . ### the authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to prevent regulatory arbitrage and guarantee a level playing field , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination while taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a union body having legal personality and it should have legal , administrative and financial autonomy .


### contribute to a consistent application of community legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between national supervisory authorities , promoting a coherent functioning of colleges of supervisors and taking actions in emergency situations ; ### contribute to a consistent application of union legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between competent authorities , ensuring effective and consistent supervision of financial institutions with a union dimension and a coherent functioning of colleges of supervisors and taking actions , inter alia , in emergency situations ;


### in its notification , the member state shall justify why and clearly demonstrate how the decision impinges on its fiscal responsibilities . ### in its notification , the member state shall justify why and provide an impact assessment on how much the decision impinges on its fiscal responsibilities .


### the authority shall ensure adequate secretarial support for the insurance , reinsurance and occupational pension funds stakeholder group . ### the authority shall ensure adequate secretarial support for the insurance , reinsurance and occupational pension funds stakeholder group . adequate financial compensation shall be established for members of the stakeholder group representing non - profit organisations .


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


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


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european insurance and occupational pensions authority should be established , along with a european banking authority and a european securities and markets authority . ### the european system of financial supervisors should be a network of national and union supervisory authorities , leaving day - to - day supervision of financial institutions that do not have a union dimension to the national level . colleges of supervisors should exert supervision over cross - border institutions that do not have a union dimension . the european insurance and occupational pensions authority should gradually take over supervision of institutions with a union dimension . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . in addition to the authority , a european supervisory authority and a european supervisory authority as well as a european supervisory authority should be established . the european systemic risk board shall form part of a european system of financial supervision .


### the insurance , reinsurance and occupational pension funds stakeholder group may submit opinions and advice to the authority on any issue related to the tasks of the authority specified in articles 7 and 8 . ### the insurance , reinsurance and occupational pension funds stakeholder group shall submit opinions and advice to the authority on any issue . any conflict of interest of members of the insurance , reinsurance and occupational pension funds stakeholder group has to be disclosed whenever the stakeholder group issues opinions and advice .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations with all stakeholders before issuing guidelines and recommendations and shall analyse the potential related costs and benefits before adopting draft technical standards , in line with established best practices among national authorities . the authority shall request an opinion or advice from the insurance , reinsurance and occupational pension funds stakeholder group as referred to in article 22 .


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


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


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


### contribute to a consistent application of community legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between national supervisory authorities , promoting a coherent functioning of colleges of supervisors and taking actions in emergency situations ; ### contribute to a consistent application of eu legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between national supervisory authorities , ensuring a coherent functioning of colleges of supervisors and taking actions , inter alia , in emergency situations ;


### two members of the board of appeal and two alternates shall be appointed by the management board of the authority from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors . ### the members of the board of appeal and their alternates shall be appointed by the european parliament from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors . it shall include at least one member representing a consumer organisation , one member representing smes and one member representing the research community . the latter as well as his alternate shall be appointed by the insurance , reinsurance and occupational pensions stakeholder group .


### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained or revoked . ### where the authority maintains its decision , the council shall take a decision whether the authority ' s decision is maintained or revoked on the basis of a qualified majority of its member not taking into account the vote of the member of the council representing the member state concerned no later than two months after the authority has informed the member state as set out in the fourth subparagraph . a qualified majority shall be defined as at least 55% of the members of the council excluding the member state concerned , comprising at least fourteen of them representing member states comprising at least 65% of the population of the union excluding the population of the member state concerned .


### where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . ### where the national supervisory authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority , take a decision requiring the national supervisory authority to take the action necessary to comply with union law .


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


### consistent application of community rules where a national supervisory authority has not correctly applied the legislation referred to in article 1 , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more national supervisory authorities , from the commission or on its own initiative and after having informed the national supervisory authority concerned , the authority may investigate the alleged incorrect application of community law . without prejudice to the powers laid down in article 20 , the national supervisory authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the national supervisory authority concerned a recommendation setting out the action necessary to comply with community law . the national supervisory authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with community law . 4 . where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the national supervisory authorities shall provide the commission with all necessary information . 5 . the national supervisory authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . 7 . decisions adopted under paragraph 6 shall prevail over any previous decision adopted by the national supervisory authorities on the same matter . any action by the national supervisory authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions . ### non - application of union law where a competent authority has not applied the legislation referred to in article 1 , in particular by failing to ensure that a financial market participant satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more competent authorities , from the european , parliament , the council or the commission , or on its own initiative , and after having informed the competent authority concerned , the authority may investigate the alleged non - application of union law . without prejudice to the powers laid down in article 20 , the competent authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the competent authority concerned a recommendation setting out the action necessary to comply with union law . the competent authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with union law . 4 . where the competent authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with union law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . 5 . the competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non - compliance by the competent authority in order to maintain or restore neutral conditions of competition in the internal market or ensure the orderly functioning and integrity of the financial system in cross - border activities , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial market participants , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice . before adopting an individual decision , the authority shall inform the commission thereof . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . the commission shall decide whether to endorse the authority ' s draft decision within two weeks of receipt . the commission shall not extend that period . the commission may endorse the draft decision only in part or with amendments , where the union interest so requires . where the commission does not endorse the draft decision or endorses it in part or with amendments , it shall inform the authority without delay in the form of a formal opinion . within one week of receipt of that formal opinion , the authority shall review and adapt its decision to the commission ' s formal opinion and transmit it without delay to the commission . within one week of receipt of the amended decision of the authority , the commission shall decide whether to endorse it or reject it . if the amended decision is rejected by the commission , the decision shall be deemed not to have been adopted . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . any action by the competent authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions .


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


### the european insurance and occupational pensions authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a community body having legal personality and it should have legal , administrative and financial autonomy . ### the authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to prevent regulatory arbitrage and guarantee a level playing field , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination while taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a union body having legal personality and it should have legal , administrative and financial autonomy .


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


### the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . ### the decision of the authority shall be in conformity with the decision adopted pursuant to paragraph 4 .


### a joint committee of the european supervisory authorities is hereby established . ### the european supervisory authorities is hereby established and shall have its headquarters in brussels .


### the authority should actively promote a coordinated community supervisory response , in particular where adverse developments could potentially jeopardise the orderly functioning and integrity of financial markets or the stability of the financial system in the community . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function within the european system of financial supervisors . the smooth flow of all relevant information between national supervisory authorities should be a particular focus of the authority ' s actions . ### the authority should actively promote a coordinated union supervisory response , in particular to ensure the orderly functioning and integrity of financial markets or the stability of the financial system in the union . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function within the european system of financial supervision . the smooth flow of all relevant information between national supervisory authorities should be a particular focus of the authority ' s actions .


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


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


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european insurance and occupational pensions authority should be established , along with a european banking authority and a european securities and markets authority . ### the european system of financial supervision should be a network of national and union supervisory authorities , leaving day - to - day supervision of financial institutions at the national level and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . a european supervisory authority should be established , along with a european supervisory authority and a european supervisory authority as well as a european supervisory authority .


### a joint committee of the european supervisory authorities is hereby established . ### the european supervisory authorities is hereby established and shall have its headquarters in frankfurt .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations with all stakeholders before issuing guidelines and recommendations and shall analyse the potential related costs and benefits before adopting draft technical standards , in line with established best practices among national authorities . the authority shall request an opinion or advice from the insurance , reinsurance and occupational pension funds stakeholder group as referred to in article 22 .


### the management board shall , after consulting the board of supervisors , adopt the annual report on the activities of the authority on the basis of the draft report referred to in article 38 and shall transmit that report to the european parliament , the council , the commission , the court of auditors , the european economic and social committee by 15 june . the report shall be made public . ### the management board shall , after consulting the board of supervisors , adopt a report on the activities of the authority on the basis of the draft report referred to in article 38 and shall transmit the report to the european parliament , the council , the commission , the court of auditors , the european economic and social committee by 15 june . the report shall be made public .


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


### two members of the board of appeal and two alternates shall be appointed by the management board of the authority from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors . ### the members of the board of appeal and their alternates shall be appointed by the european parliament from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors .


### on the basis of the peer review the authority may issue recommendations to the national supervisory authorities concerned . ### on the basis of the peer review the authority may issue guidelines and recommendations pursuant to article 8 to the competent authorities concerned , or adopt a decision addressed to competent authorities or adopt draft technical standards in accordance with articles 7 to 7d .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european banking authority should be established , along with a european insurance and occupational pensions authority and a european securities and markets authority . ### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions that do not have a union dimension to the national level . colleges of supervisors should exert supervision over cross - border institutions that do not have a union dimension . the european supervisory authority should gradually take over supervision of financial institutions with a union dimension . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . a european supervisory authority should be established , along with a european supervisory authority and a european supervisory authority . the european systemic risk board should form part of a european system of financial supervision .


### for the purposes of article 11 , the board of supervisors shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the national supervisory authorities which are parties to the disagreement . ### for the purposes of article 11 , the board of supervisors shall convoke an independent panel to facilitate an impartial settlement of the disagreement , consisting of the chairperson , two members of the board of supervisors and four people drawn from an expert list that the chairperson shall maintain . no member of the panel from the board of supervisors shall be drawn from a national supervisory authority to the disagreement , nor shall they have any interest in the conflict . the panel shall reach a decision by simple majority .


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


### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained or revoked . ### where the authority maintains its decision , the council shall take a decision whether the authority ' s decision is maintained or revoked on the basis of a qualified majority of its member not taking into account the vote of the member of the council representing the member state concerned no later than two months after the authority has informed the member state as set out in the fourth subparagraph . a qualified majority shall be defined as at least 55% of the members of the council excluding the member state concerned , comprising at least fourteen of them representing member states comprising at least 65% of the population of the union excluding the population of the member state concerned .


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


### where the national authority does not comply with the recommendation , the commission should be empowered to address a decision to the national supervisory authority concerned in order to ensure compliance with community law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 226 of the treaty . ### where the national authority does not comply with the recommendation within one month of receiving it , the commission should be able to address a decision to the national supervisory authority concerned in order to ensure compliance with union law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 258 of the treaty .


### the board of supervisors shall act on the basis of qualified majority of its members , as defined in article 205 of the treaty , for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi . ### the board of supervisors shall act on the basis of qualified majority of its members , as defined in article 16 of the eu treaty , for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi .


### the council , acting by qualified majority as defined in article 205 of the treaty , shall , within ten working days , decide whether the authority ' s decision is maintained or revoked . ### the council , acting by qualified majority as defined in paragraph 2 subparagraph 5 , shall , within ten working days , decide whether the authority ' s decision is maintained or revoked .


### this regulation establishes a european insurance and occupational pensions authority . ### this regulation establishes a european supervisory authority .


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


### the insurance , reinsurance and occupational pension funds stakeholder group may submit opinions and advice to the authority on any issue related to the tasks of the authority specified in articles 7 and 8 . ### the insurance , reinsurance and occupational pension funds stakeholder group shall submit opinions and advice to the authority on any issue . any conflict of interest of members of the insurance , reinsurance and occupational pension funds stakeholder group has to be disclosed whenever the stakeholder group issues opinions and advice .


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


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


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


### the financial crisis in 2007 / 2008 exposed important shortcomings in financial supervision , both in particular cases and in relation to the financial system as a whole . nationally - based supervisory models have lagged behind the integrated and interconnected reality of european financial markets , in which many financial firms operate across borders . the crisis exposed shortcomings in the area of cooperation , coordination , consistent application of community law and trust between national supervisors . ### the financial crisis in 2007 / 2008 exposed important shortcomings in financial supervision , both in particular cases and in relation to the financial system as a whole . nationally - based supervisory models have lagged behind the integrated and interconnected reality of european financial markets , in which many financial firms operate across borders . the crisis exposed shortcomings in the area of cooperation , coordination , consistent application of union law and trust between national supervisors .


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


### two members of the board of appeal and two alternates shall be appointed by the management board of the authority from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors . ### the members of the board of appeal and their alternates shall be appointed by the european parliament from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors .


### the european insurance and occupational pensions authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a community body having legal personality and it should have legal , administrative and financial autonomy . ### the authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to prevent regulatory arbitrage and guarantee a level playing field , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination while taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a union body having legal personality and it should have legal , administrative and financial autonomy .


### the authority should actively promote a coordinated community supervisory response , in particular where adverse developments could potentially jeopardise the orderly functioning and integrity of financial markets or the stability of the financial system in the community . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function within the european system of financial supervisors . the smooth flow of all relevant information between national supervisory authorities should be a particular focus of the authority ' s actions . ### the authority should actively promote a coordinated union supervisory response , in particular to ensure the orderly functioning and integrity of financial markets or the stability of the financial system in the union . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function within the european system of financial supervision . the smooth flow of all relevant information between national supervisory authorities should be a particular focus of the authority ' s actions .


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


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


### contribute to a consistent application of community legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between national supervisory authorities , promoting a coherent functioning of colleges of supervisors and taking actions in emergency situations ; ### contribute to a consistent application of union legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between competent authorities , ensuring effective and consistent supervision of financial institutions with a union dimension and a coherent functioning of colleges of supervisors and taking actions , inter alia , in emergency situations ;


### the commission shall ensure that the right to be heard of the addressees of the decision is respected . ### the authority shall ensure that the right to be heard of the addressees of the decision is respected .


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


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european insurance and occupational pensions authority should be established , along with a european banking authority and a european securities and markets authority . ### the european system of financial supervisors should be a network of national and union supervisory authorities , leaving day - to - day supervision of financial institutions that do not have a union dimension to the national level . colleges of supervisors should exert supervision over cross - border institutions that do not have a union dimension . the european insurance and occupational pensions authority should gradually take over supervision of institutions with a union dimension . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . in addition to the authority , a european supervisory authority and a european supervisory authority as well as a european supervisory authority should be established . the european systemic risk board shall form part of a european system of financial supervision .


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


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


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


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


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


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


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


### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the union , the commission , following a recommendation from the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation .


### when ranking projects contributing to the implementation of the same priority , due consideration shall also be given to the urgency of each proposed project in order to meet the energy policy targets of market integration and competition , sustainability and security of supply , the number of member states affected by each project , and its complementarity with regard to other proposed projects . for projects falling under the category set out in point 1 of annex ii , due consideration shall also be given to the number of users affected by the project , the annual energy consumption and the share of generation from non dispatchable resources in the area covered by these users . ### when ranking projects contributing to the implementation of the same priority , due consideration shall also be given to the urgency of each proposed project in order to meet the energy policy targets of market integration and competition , sustainability , and security of supply , as well as the relevant target of the union strategy for growth and jobs , the number of member states affected by each project , and its complementarity with regard to other proposed projects . for projects falling under the category set out in point 1 of annex ii , due consideration shall also be given to the number of users affected by the project , the annual energy consumption and the share of generation from non dispatchable resources in the area covered by these users .


### projects of common interest should be given ‘ priority status’ at national level to ensure rapid administrative treatment . projects of common interest shall be considered by competent authorities as being in public interest . authorisation should be given to projects which have an adverse impact on the environment , for reasons of overriding public interest , when all the conditions provided for under directives 92 / 43 / ec and 2000 / 60 / ec are met . ### projects of common interest should be given ‘ priority status’ at national level to ensure rapid administrative treatment . projects of common interest shall be considered by competent authorities as being in public interest . there is a need to identify , according to a hierarchy of importance and in the interest of cost - effectiveness , where investment in new infrastructure could be minimised through energy efficiency policies and demand - side management , where existing national and cross - border infrastructure can be upgraded or modernised and where new infrastructure is needed and can be built alongside the existing energy or transport infrastructure .


### enhancing widespread understanding and visibility of the union and its role on the world scene by means of public diplomacy , education / academic cooperation and outreach activities to promote union ' s values and interests . this objective may be measured , inter alia , by opinion surveys or evaluations . ### enhancing international cooperation and widespread understanding and visibility of the union and its role on the world scene by means of public diplomacy , people to people contacts , education / academic cooperation and outreach activities to promote union ' s values and interests as defined in article 21 of the treaty on the european union . this objective may be measured , inter alia , by opinion surveys or evaluations .


### the facilitation of trade relations and trade integration processes , including south - south , support to union investment flows and economic partnerships , including a focus on small and medium - sized enterprises ; ### the facilitation of trade and labour relations and economic integration processes , including south - south , support to economic partnerships , with a particular focus on small and medium - sized enterprises and on social and environmental responsibility ;


### notwithstanding the specific focus on global players , the scope of this regulation should be worldwide enabling to support cooperation measures with developing countries where the union has significant interests in accordance with the objectives of this regulation . ### notwithstanding the specific focus on global players , the scope of this regulation should be worldwide enabling to support cooperation measures with developing countries where there are significant mutual interests in accordance with the objectives of this regulation . with a view to policy coherence , the union ' s non - development policies should assist developing countries ' efforts in achieving the mdgs in line with article 208 of the treaty on the functioning of the european union .


### notwithstanding the specific focus on global players , the scope of this regulation should be worldwide enabling to support cooperation measures with developing countries where the union has significant interests in accordance with the objectives of this regulation . ### notwithstanding the specific focus on global players , the scope of this regulation should be worldwide enabling to support cooperation measures both with developed and developing countries where there are significant mutual interests in accordance with the objectives of this regulation .


### this regulation establishes a partnership instrument for cooperation with third countries to advance and promote eu and mutual interests . the partnership instrument shall support measures that respond in an effective and flexible manner to objectives arising from the union ' s bilateral , regional or multilateral relationships with third countries and address challenges of global concern . ### this regulation establishes a partnership instrument for cooperation with third countries to advance and promote eu and mutual interests . the partnership instrument shall support measures not covered by the other external financial instruments that respond in an effective and flexible manner to objectives arising from the union ' s bilateral , regional or multilateral relationships with third countries and address challenges of global concern . it will require a rule - based , inclusive approach based on partnership , the promotion of human rights and fundamental freedoms , the rule of law , principles of equality , and the common values enshrined in international law , close consultation and cooperation with the third countries concerned . the partnership instrument shall also aim to enhance and promote the role of civil society organisations as a key component of the social , economic and political structure of a country .


### measures financed under this regulation shall be based , where appropriate , on cooperation policies set out in instruments such as agreements , declarations and action plans between the union and the third countries and regions concerned , and shall also relate to areas linked to the union ' s specific interests , policy priorities and strategies . ### measures financed under this regulation shall be based , where appropriate , on cooperation policies set out in instruments such as agreements , declarations and action plans between the union and the third countries and regions concerned , and shall also relate to areas linked to mutual policy priorities and strategies of interest to the union and the partner country concerned .


### this regulation establishes a partnership instrument for cooperation with third countries to advance and promote eu and mutual interests . the partnership instrument shall support measures that respond in an effective and flexible manner to objectives arising from the union ' s bilateral , regional or multilateral relationships with third countries and address challenges of global concern . ### this regulation establishes a partnership instrument for cooperation with third countries to advance and promote eu values and mutual interests . the partnership instrument shall support measures that respond in an effective and flexible manner to objectives arising from the union ' s bilateral , regional or multilateral relationships with third countries , regions and territories and address challenges of global concern .


### in implementing this regulation , the union shall aim to ensure coherence and consistency with other areas of its external action , in particular the development cooperation instrument for developing countries , and with other relevant union ' s policies when formulating policy , strategic planning and programming and implementing measures . ### in implementing this regulation , the union shall aim to ensure coherence and consistency with other areas of its external action , in particular the development cooperation instrument for developing countries and the instrument for stability , and with other relevant union ' s policies , notably its security , trade , investment , agriculture and fisheries ' policy , when formulating policy , strategic planning and programming and implementing measures .


### in case of risks of non - compliance with the deadline to correct the excessive deficit , the commission shall address a recommendation to the member state concerned for adoption of further measures within a timeframe consistent with the deadline for the correction of its excessive deficit referred to in paragraph 1 . the recommendation by the commission shall be made public , and , at the request of the parliament of the member state concerned , shall be presented by the commission to the parliament concerned . ### in case of risks of non - compliance with the deadline to correct the excessive deficit , the commission shall address a recommendation to the member state concerned for adoption of further measures within a timeframe consistent with the deadline for the correction of its excessive deficit referred to in paragraph 1 . the recommendation by the commission shall be made public , and , at the request of the parliament of the member state concerned or the european parliament , shall be presented by the commission to the parliament concerned .


### member states shall submit annually to the commission and the eurogroup a draft budgetary plan for the forthcoming year no later than 15 october . ### member states shall submit annually to the commission and the eurogroup a draft budgetary plan for the forthcoming year no later than 15 august .


### the amendments to the stability and growth pact increase both the guidance , and , for the member states whose currency is the euro , incentives for the setting and the implementation of a prudent budgetary policy , while avoiding excessive government deficits . these provisions have created a more robust framework at the level of the union for the surveillance of national economic policies . ### the amendments to the stability and growth pact aim at increasing both the guidance , and , for the member states whose currency is the euro , enforcement measures for the setting and the implementation of a prudent budgetary policy , while avoiding excessive government deficits . these provisions have aim at creating a more robust framework at the level of the union for the surveillance of national economic policies .


### budget laws for the general government shall be adopted and made public annually no later than 31 december . ### budget laws for the general government shall be adopted and made public annually no later than 31 december . member states shall have in place reversionary budget procedures to be applied if , for objective reasons beyond the control of the government , the budget is not adopted or fixed upon and made public by 31 december .


### as demonstrated by the sovereign debt crisis , and in particular by the need to put in place common financial backstops , member states whose currency is the euro share enhanced spillovers from their budgetary policy . each of the member states whose currency is the euro should consult the commission and other member states whose currency is the euro before the adoption of any major fiscal policy reform plans with potential spillover effects , so as to give the possibility for an assessment of possible impact for the euro area as a whole . they should consider their budgetary plans to be of common concern and submit them to the commission for monitoring purposes in advance of the plans becoming binding . the commission should be in a position , if necessary , to adopt an opinion on the draft budgetary plan , that the member state and in particular budgetary authorities should be invited to take into account in the process of the budget law adoption . such an opinion should ensure that union ' s policy guidance in the budgetary area is appropriately integrated in the national budgetary preparations . in particular , this opinion should include an assessment of whether or not the budgetary plans appropriately address the recommendations issued in the context of the european semester in the budgetary area . the commission should stand ready to present this opinion to the parliament of the member state concerned at its request . the extent to which this opinion has been taken into account should be part of the assessment , if and when the conditions are met , leading to the decision to place the concerned member state in excessive deficit procedure , where no follow - up to the early guidance from the commission should be considered as an aggravating factor . also , based on an overall assessment of the plans by the commission , the eurogroup should discuss the budgetary situation and prospects for the euro area . ### as demonstrated by the sovereign debt crisis , and in particular by the need to put in place common financial backstops , member states whose currency is the euro share enhanced spill - overs from their budgetary and economic policies . each of the member states whose currency is the euro should consult the commission and other member states whose currency is the euro before the adoption of any major fiscal policy reform plans with potential spill - over effects , so as to give the possibility for an assessment of possible impact for the euro area as a whole . they should consider their budgetary plans to be of common concern and submit them to the commission for monitoring purposes in advance of the plans becoming binding . the commission should be in a position , if necessary , to adopt as soon as possible and no later than 15 november an opinion on the draft budgetary plan , that the member state and in particular budgetary authorities should be invited to take into account in the process of the budget law adoption . such an opinion should ensure that union ' s policy guidance in the budgetary area is appropriately integrated in the national budgetary preparations . in particular , this opinion should include an assessment of whether or not the budgetary plans appropriately address the recommendations issued in the context of the european semester in the budgetary area . the commission should stand ready to present this opinion without delay to the parliament of the member state concerned at its request . the extent to which this opinion has been taken into account should be part of the assessment , if and when the conditions are met , leading to the decision to place the concerned member state in excessive deficit procedure , where no follow - up to the early guidance from the commission should be considered as an aggravating factor . also , based on an overall assessment of the plans by the commission , the eurogroup and the competent committee of the european parliament should discuss the budgetary situation and prospects for the euro area .


### biased and unrealistic macroeconomic and budgetary forecasts can considerably hamper the effectiveness of budgetary planning and consequently impair commitment to budgetary discipline . forecasts from independent bodies can provide unbiased and realistic macroeconomic forecasts . ### biased and unrealistic macroeconomic and budgetary forecasts can considerably hamper the effectiveness of budgetary planning , generate substantial and avoidable costs and consequently impair commitment to budgetary discipline . forecasts from independent bodies should help providing unbiased and realistic macroeconomic forecasts . underlying models and assumptions should be disclosed in order to increase transparency and scrutiny .


### the eurogroup shall discuss opinions of the commission on the national budgetary plans and the budgetary situation and prospects in the euro area as a whole on the basis of the overall assessment made by the commission in accordance with paragraph 3 . the assessment shall be made public . ### the eurogroup and the relevant committees of the european parliament shall discuss at the same time the whole set of opinions of the commission on the national budgetary plans and the budgetary situation and prospects in the euro area as a whole on the basis of the overall assessment made by the commission in accordance with paragraph 3 .


### the commission shall make an overall assessment of the budgetary situation and prospects in the euro area as a whole . the assessment shall be made public . ### the commission shall make an overall assessment of the budgetary situation and prospects in the euro area as a whole . the overall assessment shall include stress tests that provide an indication of the risks to public finance sustainability in the event of adverse financial or budgetary developments . the assessment shall identify on a country - by - country basis potential negative spill - over effects on the sustainability of public finances of the member states generated by its private sector or by other member states . the assessment shall be made public and shall be integrated in the forthcoming annual growth survey . the commission shall annex to the assessment a detailed summary of the spring and autumn forecasts for the euro area as a whole . the chosen baseline scenario for the assessment shall be described with reasoning and shall be built on a balanced account of downside and upside risks in order to consider the complete range of possible outcomes . the assessment shall disclose the methodologies , assumptions and relevant parameters that underpin its macroeconomic forecasts and stress tests as well as an ex post evaluation of the previous year baseline scenario .


### when the council decides in accordance with article 126 of the treaty that an excessive deficit exists in a member state , the member state concerned shall be subject to paragraphs 2 to 5 of this article , until the abrogation of its excessive deficit procedure . ### when the council decides in accordance with article 126 tfeu that an excessive deficit exists in a member state after the entry into force of this regulation , the member state concerned shall be subject to paragraphs 2 to 5 of this article , until the abrogation of its excessive deficit procedure .