### where the purpose of a specialised lending exposure is to finance a project for the development or acquisition of large , complex and expensive installations , including power plants , chemical processing plants , mines , transportation infrastructure , environment , and telecommunications infrastructure , and the income to be generated by the project is the money generated by the contracts for the output of the installation obtained from one or several parties which are not under management control of the sponsor (‘project finance exposures’) , institutions shall apply the following risk weights: ### where the purpose of a specialised lending exposure is to finance a project for the development or acquisition of large , complex and expensive installations , including power plants , chemical processing plants , mines , transportation infrastructure , environment , and telecommunications infrastructure , in which the lender looks primarily to the revenues generated by the project , both as the source of repayment and as security for the loan (‘project finance exposures’) , institutions shall apply the following risk weights:


### 130 % where the project to which the exposure is related is in the pre-operational phase; ### 110 % where the project to which the exposure is related is in the pre-operational phase;


### — the obligor has sufficient reserve funds fully funded in cash , or other financial arrangements , with highly rated guarantors to cover the contingency funding and working capital requirements over the lifetime of the project being financed; ### — the obligor has sufficient reserve funds fully funded in cash , or other financial arrangements , with guarantors with an ecai rating with a credit quality step of at least 3 , or , if not externally rated , are assigned with a rating equivalent to a step 3 or higher with the bank validated internal rating model guarantors to cover the contingency funding and working capital requirements over the lifetime of the project being financed;


### — the obligor generates cash flows that are predictable and cover all future loan repayments; ### — the obligor generates cash flows that are predictable and cover all future loan repayments , including possible repayments with cashflows generated over the remaining asset life;


### — the source of repayment of the obligation depends on one main counterparty and that main counterparty is one of the following: ### — where the revenues of the obligor are not funded by payments from a large number of users , the source of repayment of the obligation depends on one main counterparty and that main counterparty is one of the following:


### — a public sector entity , provided that that entity is assigned a risk weight of 20 % or below in accordance with article 116 , or is assigned an ecai rating with a credit quality step of at least 3; ### — a public sector entity , provided that that entity is assigned a risk weight of 20 % or below in accordance with article 116 , or is assigned an ecai rating with a credit quality step of at least 3 , or , if not externally rated , are assigned with a rating equivalent to a step 3 or higher with the bank validated internal rating model;


### — a corporate entity which has been assigned an ecai rating with a credit quality step of at least 3. ### — a corporate entity which has been assigned an ecai rating with a credit quality step of at least 3 , or , if not externally rated ,are assigned with a rating equivalent to a step 3 or higher with the bankvalidated internal rating model.


### — equity is pledged to the lending institution such that they are able to take control of the obligor entity upon default; ### — equity is pledged or assigned to the lending institution such that they are able to take control of the obligor entity upon default;


### for the purposes of point (c) , the operational phase shall mean the phase in which the entity that was specifically created to finance the project meets both of the following conditions: ### for the purposes of point (c) , the operational phase shall mean the phase in which the entity that was specifically created to finance the project , or that is economically comparable , meets both of the following conditions:


### (ii) the entity has a declining long term debt. ### (ii) the project is in operation.


### where the exposure is secured by a residential property , the exposure shall not qualify as an ipre exposure and shall be treated in accordance with article 125(1) where the exposure meets any of the following conditions: ### where the exposure is secured by a non-ipre residential property or is secured by a ipre residential property that meets any of the following conditions , the exposure shall not qualify as an ipre exposure and shall be treated in accordance with article 125(1)


### where the exposure is secured by residential property and the exposure does not meet any of the conditions laid down in point (a) , points (i) to (iv) , the exposure shall be treated in accordance with article 125(2); ### where the exposure is secured by an ipre residential property and the exposure does not meet any of the conditions laid down in point (a) , points (i) to (iv) , the exposure shall be treated in accordance with article 125(2);


### (iii) the immovable property is residential property under construction or it is land upon which a residential property is planned to be constructed where that plan has been approved by all authorities concerned and where any of the following conditions is met: ### (iii) the immovable property is either residential property under construction or it is land upon which a residential property is planned to be constructed where that plan has been legally approved by all relevant authorities , as applicable , and where any of the following conditions is met:


### — a central government , regional government or local authority or a public sector entity , exposures to which are treated in accordance with articles 115(2) and 116(4) , respectively , has the legal powers and ability to ensure that the property under construction will be finished within a reasonable time frame and is required to or has committed in a legally binding manner to do so where the construction would otherwise not be finished within a reasonable time frame; ### — a central government , regional government or local authority or a public sector entity , exposures to which are treated in accordance with articles 115(2) and 116(4) , respectively , has the legal powers and ability to ensure that the property under construction will be finished within a reasonable time frame and is required to or has committed in a legally binding manner to do so where the construction would otherwise not be finished within a reasonable time frame;


### institutions shall have in place sound , effective and comprehensive strategies and processes to assess and maintain on an ongoing basis the amounts , types and distribution of internal capital that they consider adequate to cover the nature and level of the risks to which they are or might be exposed in the short , medium and long term time horizon , including environmental , social and governance risks.’;” ### institutions shall have in place sound , effective and comprehensive strategies and processes to assess and maintain on an ongoing basis the amounts , types and distribution of internal capital that they consider adequate to cover the nature and level of the risks to which they are or might be exposed , including environmental , social and governance risks.’;”


### effective processes to identify , manage , monitor and report the risks they are or might be exposed to in the short , medium and long term time horizon , including environmental , social and governance risks; ### effective processes to identify , manage , monitor and report the risks they are or might be exposed to , including environmental , social and governance risks;


### 1. member states shall ensure that the management body approves and at least every two years reviews the strategies and policies for taking up , managing , monitoring and mitigating the risks the institution is or might be exposed to , including those posed by the macroeconomic environment in which it operates in relation to the status of the business cycle , and those resulting from the current , short , medium and long-term impacts of environmental , social and governance factors.; ### 1. member states shall ensure that the management body approves and at least every two years reviews the strategies and policies for taking up , managing , monitoring and mitigating the risks the institution is or might be exposed to , including those posed by the macroeconomic environment in which it operates in relation to the status of the business cycle , and those resulting from the impacts of environmental , social and governance factors.;


### member states shall ensure that the management body develops specific plans and quantifiable targets to monitor and address the risks arising in the short , medium and long-term from the misalignment of the business model and strategy of the institutions , with the relevant union policy objectives or broader transition trends towards a sustainable economy in relation to environmental , social and governance factors.; ### member states shall ensure that , in determining the business strategy , the management body takes into account the impact of environmental , social and governance factors.


### member states shall ensure that the management body develops specific plans and quantifiable targets to monitor and address the risks arising in the short , medium and long-term from the misalignment of the business model and strategy of the institutions , with the relevant union policy objectives or broader transition trends towards a sustainable economy in relation to environmental , social and governance factors.; ### member states shall ensure that the management body develops specific plans and quantifiable targets to monitor and address the risks arising in the short , medium and long-term from the misalignment of the business model and strategy of the institutions , with the regulation (eu) 2021/1119 (european climate law) , and other relevant union policy objectives or broader transition trends towards a sustainable economy in relation to environmental , social and governance factors.


### institutions shall submit the results of their calculations referred to in the first subparagraph together with an explanation of the methodologies used to produce them and any qualitative information , as requested by eba , that can explain the impact of these calculations on own funds requirements , to the competent authorities at least annually , but with the possibility for eba to conduct the exercise biennially after the exercise has run five times. ### institutions shall submit the results of their calculations referred to in the first subparagraph together with an explanation of the methodologies used to produce them and any qualitative information , as requested by eba , that can explain the impact of these calculations on own funds requirements , to the competent authorities at least annually , unless eba conducts the exercise biennially , while the frequency of the submission may differ in relation to the different approaches referred to in points (a) , (b) and (c) of the first subparagraph.


### 2. the strategies , policies , processes and systems referred to in paragraph 1 shall be proportionate to the scale , nature and complexity of the environmental , social and governance risks of the business model and scope of the institution’s activities , and consider short , medium and a long-term horizon of at least 10 years. ### 2. the strategies , policies , processes and systems referred to in paragraph 1 shall be proportionate to the scale , nature and complexity of the environmental , social and governance risks of the business model and scope of the institution’s activities.


### 4. competent authorities shall assess and monitor developments of institutions’ practices concerning their environmental , social and governance strategy and risk management , including the plans to be prepared in accordance with article 76 , as well as the progress made and the risks to adapt their business models to the relevant policy objectives of the union or broader transition trends towards a sustainable economy , taking into account sustainability related product offering , transition finance policies , related loan origination policies , and environmental , social and governance related targets and limits. ### 4. competent authorities shall assess and monitor developments of institutions’ practices concerning their environmental , social and governance strategy and risk management , taking into account , for example , sustainability related product offering , transition finance policies and related loan origination policies.


### 4. competent authorities shall assess and monitor developments of institutions’ practices concerning their environmental , social and governance strategy and risk management , including the plans to be prepared in accordance with article 76 , as well as the progress made and the risks to adapt their business models to the relevant policy objectives of the union or broader transition trends towards a sustainable economy , taking into account sustainability related product offering , transition finance policies , related loan origination policies , and environmental , social and governance related targets and limits. ### 4. competent authorities shall assess and monitor developments of institutions’ practices concerning their environmental , social and governance strategy and risk management , including the plans to be prepared in accordance with article 76 , as well as the progress made and the risks to adapt their business models to the relevant policy objectives of the union or broader transition trends towards a sustainable economy , taking into account sustainability related product offering , transition finance policies , related loan origination policies , and environmental , social and governance related targets and limits. competent authorities should verify the robustness of those plans as part of the supervisory review and evaluation process.


### 4. competent authorities shall assess and monitor developments of institutions’ practices concerning their environmental , social and governance strategy and risk management , including the plans to be prepared in accordance with article 76 , as well as the progress made and the risks to adapt their business models to the relevant policy objectives of the union or broader transition trends towards a sustainable economy , taking into account sustainability related product offering , transition finance policies , related loan origination policies , and environmental , social and governance related targets and limits. ### 4. competent authorities shall assess and monitor developments of institutions’ practices concerning their environmental , social and governance strategy and risk management , including the plans to be prepared in accordance with article 76 , as well as the progress made and the risks towards achieving the targets set in accordance with article 76 in order to adapt their business models to the relevant policy objectives of the union or broader transition trends towards a sustainable economy , taking into account sustainability related product offering , transition finance policies , related loan origination policies , and environmental , social and governance related targets and limits.


### the content of plans to be prepared in accordance with article 76 , which shall include specific timelines and intermediate quantifiable targets and milestones , in order to address the risks from misalignment of the business model and strategy of institutions with the relevant policy objectives of the union , or broader transition trends towards a sustainable economy in relation to environmental , social and governance factors; ### deleted


### qualitative and quantitative criteria for the assessment of the impact of environmental , social and governance risks on the financial stability of institutions in the short , medium and long term; ### qualitative and quantitative criteria for the assessment of the impact of environmental , social and governance risks on the financial stability of institutions;


### in article 88 , the following paragraph 3 is added: ### deleted


### 3. member states shall ensure that institutions draw up , maintain and update individual statements setting out the roles and duties of each member of the management body , senior management and key function holders and a mapping of duties , including details of the reporting lines and the lines of responsibility , and the persons who are part of the governance arrangements as referred to in article 74 (1) and their duties approved by the management body. ### 3. member states shall ensure that institutions draw up , maintain and update individual statements setting out the roles of key function holders and the persons who are part of the governance arrangements as referred to in article 74 (1)


### eba shall issue guidelines , in accordance with article 16 of regulation (eu) no 1093/2010 , ensuring the implementation of this paragraph and its consistent application. eba shall issue those guidelines by [op please insert the date = 12 months from date of entry into force of this amending directive]. ### deleted


### (20) the following articles 91a to 91d are inserted: ### deleted


### 2. the entities shall assess the suitability of members of the management body before those members take up their positions. where the entities conclude , based on the suitability assessment , that the member concerned does not fulfil the criteria and requirements set out in paragraph 1 , the entities shall ensure that the member concerned does not take up the position considered. ### deleted


### 2. the entities shall assess the suitability of members of the management body before those members take up their positions. where the entities conclude , based on the suitability assessment , that the member concerned does not fulfil the criteria and requirements set out in paragraph 1 , the entities shall ensure that the member concerned does not take up the position considered. ### 2. the timing of the suitability assessment is subject to national law and takes place before or after the entities shall assess the suitability of members of the management body before those members take up their positions. where the entities conclude , based on the suitability assessment , that the member concerned does not fulfil the criteria and requirements set out in paragraph 1 , the entities shall ensure that the member concerned does not take up the position considered.


### however , where it is strictly necessary to replace a member of the management body immediately , the entities may assess the suitability of such replacement members after they have taken up their positions. the entities shall be able to duly justify such immediate replacement. ### however , where it is strictly necessary to replace a member of the management body immediately , the entities may conduct a lighter suitability assessment of such replacement members before they have taken up their positions. a complete assessment shall be carried out as soon as possible after the replacement members have taken up their positions. eba shall issue guidelines specifying the conditions for conducting a lighter assessment , including guidance on the cases that might be considered urgent. the entities shall be able to duly justify such immediate replacement.


### however , where it is strictly necessary to replace a member of the management body immediately , the entities may assess the suitability of such replacement members after they have taken up their positions. the entities shall be able to duly justify such immediate replacement. ### without prejudice to the timing provided for in national law , where it is strictly necessary to replace a member of the management body immediately , the entities may assess the suitability of such replacement members after they have taken up their positions. the entities shall be able to duly justify such immediate replacement.


### 3. competent authorities shall acknowledge in writing the receipt of the application and the documentation required in accordance with paragraph 2 within two working days. ### 3. competent authorities shall complete the suitability assessment within 80 working days (“assessment period”) as from the date of the written acknowledgement of receipt of the complete application and underlying documentation.


### competent authorities shall complete the assessment referred to in paragraph 1 within 80 working days (‘assessment period’) as from the date of the written acknowledgement referred to in the first subparagraph of this paragraph. ### competent authorities shall complete the assessment referred to in paragraph 1 within 40 working days (‘assessment period’) as from the date of the written acknowledgement referred to in the first subparagraph of this paragraph.


### competent authorities shall complete the assessment referred to in paragraph 1 within 80 working days (‘assessment period’) as from the date of the written acknowledgement referred to in the first subparagraph of this paragraph. ### competent authorities shall complete the assessment referred to in paragraph 1 within 20 working days (‘assessment period’) as from the date of the written acknowledgement referred to in the first subparagraph of this paragraph.


### 4. competent authorities that request from the entities additional information or documentation , including interviews or hearings , may extend the assessment period for a maximum of 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. ### 4. competent authorities that request additional information or documentation from the entities or other authorities or which conduct interviews or hearings , may extend the assessment period for a maximum of 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. failure by the entities to provide the requested information within this deadline shall result in the procedure being closed without any further assessment by the competent authority. the closure of the procedure shall be without prejudice to the possibility by the entity to submit a new application.


### 4. competent authorities that request from the entities additional information or documentation , including interviews or hearings , may extend the assessment period for a maximum of 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. ### 4. competent authorities that request from the entities additional information or documentation , including interviews or hearings , may extend the assessment period for a maximum of 40 working days. however , the assessment period shall not exceed 60 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities.


### 4. competent authorities that request from the entities additional information or documentation , including interviews or hearings , may extend the assessment period for a maximum of 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. ### 4. competent authorities that request from the entities additional information or documentation , including interviews or hearings , may extend the assessment period for a maximum of 20 working days. however , the assessment period shall not exceed 60 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities.


### 8. in accordance with paragraphs 1 to 7 , competent authorities shall carry out the suitability assessment before members of the management body take up their positions in the following entities: ### deleted


### the parent institution in a member state that qualifies as large institution; ### the parent institution in a member state that qualifies as large institution; except if it is affiliated to a central body. in that case , only the suitability of members of the management body of the central body should be assessed;


### relevant subsidiary; ### relevant subsidiary when they are parent institutions in a member state;


### 10. eba shall develop draft implementing technical standards on standard forms , templates and procedures for the provision of the information referred to in paragraph 2. ### 10. eba shall develop draft implementing technical standards on standard forms , templates and procedures for the provision of the information referred to in paragraph 2. when developing the draft implementing technical standards , eba shall take into account existing practices and tools.


### the parent institution in a member state that qualifies as large institution; ### the parent institution in a member state that qualifies as large institution , except if it is affiliated to a central body. in that case , only the suitability of the heads of internal control functions and the chief financial officer of the central body should be assessed;


### relevant subsidiary. ### relevant subsidiary when they are parent institutions in a member state.


### 8. eba shall develop draft implementing technical standards on standard forms , templates and procedures for the provision of the information referred to in paragraph 2. ### 8. eba shall develop draft implementing technical standards on standard forms , templates and procedures for the provision of the information referred to in paragraph 2. when developing the draft implementing technical standards , eba shall take into account existing practices and tools.


### the institution’s competent authority shall , without undue delay , and no later than by the end date of the next review and evaluation process , review the additional own funds it required from the institution in accordance with article 104(1) , point (a) , and remove any parts thereof that would double-count the risks that are already fully covered by the fact that the institution is bound by the output floor. ### the institution’s competent authority shall , without undue delay , and no later than by the end date of the next review and evaluation process , review the additional own funds it required from the institution in accordance with article 104(1) , point (a) , and remove any parts thereof that would


### for the purposes of this article and articles 131 and 133 of this directive , an institution shall be considered as bound by the output floor when the institution’s total risk exposure amount calculated in accordance with article 92(3) , point (a) , of regulation (eu) no 575/2013 exceeds its un-floored total risk exposure amount calculated in accordance with article 92(4) of that regulation. ### for the purposes of this article , an institution shall be considered as bound by the output floor when the institution’s total risk exposure amount calculated in accordance with article 92(3) , point (a) , of regulation (eu) no 575/2013 exceeds its un-floored total risk exposure amount calculated in accordance with article 92(4) of that regulation.


### in paragraph 5 , the following subparagraph is added: ### deleted


### where an o-sii becomes bound by the output floor , its competent or designated authority , as applicable , shall review the institutions o-sii buffer requirement to make sure that its calibration remains appropriate.; ### where an o-sii becomes bound by the output floor , the following shall apply:


### in paragraph 5a , the second sub-paragraph is replaced by the following: ### deleted


### the following paragraph 2a is inserted: ### deleted


### in paragraph 8 , point (c) is replaced by the following: ### deleted


### in paragraph 9 , the following point (g) is added: ### deleted


### (14) in order to ensure consumer protection , prospective purchasers of crypto-assets should be informed about the characteristics , functions and risks of crypto-assets they intend to purchase. when making a public offer of crypto-assets in the union or when seeking admission of crypto-assets to trading on a trading platform for crypto-assets , issuers of crypto-assets should produce , notify to their competent authority and publish an information document (‘a crypto-asset white paper’) containing mandatory disclosures. such crypto-asset white paper should contain general information on the issuer , on the project to be carried out with the capital raised , on the public offer of crypto-assets or on their admission to trading on a trading platform for crypto-assets , on the rights and obligations attached to the crypto-assets , on the underlying technology used for such assets and on the related risks. to ensure fair and non-discriminatory treatment of holders of crypto-assets , the information in the crypto-asset white paper , and where applicable in any marketing communications related to the public offer , shall be fair , clear and not misleading. ### (14) in order to ensure consumer protection , prospective purchasers of crypto-assets should be informed about the characteristics , functions and risks of crypto-assets they intend to purchase. when making a public offer of crypto-assets in the union or when seeking admission of crypto-assets to trading on a trading platform for crypto-assets , issuers of crypto-assets should produce , notify to their competent authority and publish an information document (‘a crypto-asset white paper’) containing mandatory disclosures. such crypto-asset white paper should contain general information on the issuer and offeror , when different , on the project to be carried out with the capital raised , on the public offer of crypto-assets or on their admission to trading on a trading platform for crypto-assets , on the rights and obligations attached to the crypto-assets , on the underlying technology used for such assets and on the related risks. to ensure fair and non-discriminatory treatment of holders of crypto-assets , the information in the crypto-asset white paper , and where applicable in any marketing communications related to the public offer , shall be fair , clear and not misleading.


### (18) in order to enable supervision , issuers of crypto-assets should , before any public offer of crypto-assets in the union or before those crypto-assets are admitted to trading on a trading platform for crypto-assets , notify their crypto-asset white paper and , where applicable , their marketing communications , to the competent authority of the member state where they have their registered office or a branch. issuers that are established in a third country should notify their crypto-asset white paper , and , where applicable , their marketing communication , to the competent authority of the member state where the crypto-assets are intended to be offered or where the admission to trading on a trading platform for crypto-assets is sought in the first place. ### (18) in order to enable supervision , issuers of crypto-assets should , before any public offer of crypto-assets in the union or before those crypto-assets are admitted to trading on a trading platform for crypto-assets , notify their crypto-asset white paper and , where applicable , their marketing communications , to the competent authority of the member state where they have their registered office. issuers that are established in a third country should notify their crypto-asset white paper , and , where applicable , their marketing communication , to the competent authority of the member state where the crypto-assets are intended to be offered or where the admission to trading on a trading platform for crypto-assets is sought in the first place.


### (41) to ensure that asset-referenced tokens are mainly used as a means of exchange and not as a store of value , issuers of asset-referenced tokens , and any crypto-asset service providers , should not grant interests to users of asset-referenced tokens for time such users are holding those asset-referenced tokens. some asset-referenced tokens and e-money tokens should be considered significant due to the potential large customer base of their promoters and shareholders , their potential high market capitalisation , the potential size of the reserve of assets backing the value of such asset-referenced tokens or e-money tokens , the potential high number of transactions , the potential interconnectedness with the financial system or the potential cross-border use of such crypto-assets. significant asset-referenced tokens or significant e-money tokens , that could be used by a large number of holders and which could raise specific challenges in terms of financial stability , monetary policy transmission or monetary sovereignty , should be subject to more stringent requirements than other asset-referenced tokens or e-money tokens. ### (41) some asset-referenced tokens and e-money tokens should be considered significant due to the potential large customer base of their promoters and shareholders , their potential high market capitalisation , the potential size of the reserve of assets backing the value of such asset-referenced tokens or e-money tokens , the potential high number of transactions , the potential interconnectedness with the financial system or the potential cross-border use of such crypto-assets. significant asset-referenced tokens or significant e-money tokens , that could be used by a large number of holders and which could raise specific challenges in terms of financial stability , monetary policy transmission or monetary sovereignty , should be subject to more stringent requirements than other asset-referenced tokens or e-money tokens.


### (46) issuers of e-money tokens , and any crypto-asset service providers , should not grant interests to holders of e-money tokens for the time such holders are holdings those e-money tokens. ### deleted


### (47) the crypto-asset white paper produced by an issuer of e-money tokens should contain all the relevant information concerning that issuer and the offer of e-money tokens or their admission to trading on a trading platform for crypto-assets that is necessary to enable potential buyers to make an informed purchase decision and understand the risks relating to the offer of e-money tokens. the crypto-asset white paper should also explicitly indicate that holders of e-money tokens are provided with a claim in the form of a right to redeem their e-money tokens against fiat currency at par value and at any moment. ### (47) the crypto-asset white paper produced by an issuer or offeror of e-money tokens should contain all the relevant information concerning that issuer , when known , the offeror and the offer of e-money tokens or their admission to trading on a trading platform for crypto-assets that is necessary to enable potential buyers to make an informed purchase decision and understand the risks relating to the offer of e-money tokens. the crypto-asset white paper should also explicitly indicate that holders of e-money tokens are provided with a claim in the form of a right to redeem their e-money tokens against fiat currency at par value and at any moment.


### (51) this regulation should not affect the possibility for persons established in the union to receive crypto-asset services by a third-country firm at their own initiative. where a third-country firm provides crypto-asset services at the own initiative of a person established in the union , the crypto-asset services should not be deemed as provided in the union. where a third-country firm solicits clients or potential clients in the union or promotes or advertises crypto-asset services or activities in the union , it should not be deemed as a crypto-asset service provided at the own initiative of the client. in such a case , the third-country firm should be authorised as a crypto-asset service provider. ### (51) this regulation should not affect the possibility for persons established in the union to receive crypto-asset services by a third-country firm at their own exclusive initiative. where a third-country firm provides crypto-asset services at the own exclusive initiative of a person established in the union , the crypto-asset services should not be deemed as provided in the union. where a third-country firm solicits clients or potential clients in the union or promotes or advertises crypto-asset services or activities in the union , it should not be deemed as a crypto-asset service provided at the own initiative of the client. in such a case , the third-country firm should be authorised as a crypto-asset service provider. a practise whereby a third-country firm includes general clauses in its terms of business or through the use of online pop-up “i agree” boxes whereby clients state that any transaction is executed on the exclusive initiative of the client , should not deemed as an attempt to circumvent the rules of this regulation.


### article 36 ### deleted


### 1. the eba shall classify asset-referenced tokens as significant asset-referenced tokens on the basis of the following criteria , as specified in accordance with paragraph 6 and where at least three of the following criteria are met: ### 1. esma shall classify asset-referenced tokens as significant asset-referenced tokens on the basis of the following criteria , as specified in accordance with paragraph 6 and where at least three of the following criteria are met:


### 2. competent authorities that authorised an issuer of asset-referenced tokens in accordance with article 19 shall provide the eba with information on the criteria referred to in paragraph 1 and specified in accordance with paragraph 6 on at least a yearly basis. ### 2. competent authorities that authorised an issuer of asset-referenced tokens in accordance with article 19 shall provide esma with information on the criteria referred to in paragraph 1 and specified in accordance with paragraph 6 on at least a yearly basis.


### 3. where the eba is of the opinion that asset-referenced tokens meet the criteria referred to in paragraph 1 , as specified in accordance with paragraph 6 , the eba shall prepare a draft decision to that effect and notify that draft decision to the issuers of those asset-referenced tokens and the competent authority of the issuer’s home member state. the eba shall give issuers of such asset-referenced tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. the eba shall duly consider those observations and comments. ### 3. where esma is of the opinion that asset-referenced tokens meet the criteria referred to in paragraph 1 , as specified in accordance with paragraph 6 , esma shall prepare a draft decision to that effect and notify that draft decision to the issuers of those asset-referenced tokens and the competent authority of the issuer’s home member state. esma shall give issuers of such asset-referenced tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. esma shall duly consider those observations and comments.


### 4. the eba shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 3 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof. ### 4. esma shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 3 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof.


### 5. the supervisory responsibilities on issuers of significant asset-referenced tokens shall be transferred to the eba one month after the notification of the decision referred to in paragraph 4. ### 5. the supervisory responsibilities on issuers of significant asset-referenced tokens shall be transferred to esma one month after the notification of the decision referred to in paragraph 4.


### the eba and the competent authority concerned shall cooperate in order to ensure the smooth transition of supervisory competences. ### esma and the competent authority concerned shall cooperate in order to ensure the smooth transition of supervisory competences.


### the content and format of information provided by competent authorities to eba under paragraph 2. ### the content and format of information provided by competent authorities to esma under paragraph 2.


### the procedure and timeframe for the decisions taken by the eba under paragraphs 3 to 5. ### the procedure and timeframe for the decisions taken by esma under paragraphs 3 to 5.


### 1. applicant issuers of asset-referenced tokens that apply for an authorisation as referred to in article 16 , may indicate in their application for authorisation that they wish to classify their asset-referenced tokens as significant asset-referenced tokens. in that case , the competent authority shall immediately notify the request from the prospective issuer to the eba. ### 1. applicant issuers of asset-referenced tokens that apply for an authorisation as referred to in article 16 , may indicate in their application for authorisation that they wish to classify their asset-referenced tokens as significant asset-referenced tokens. in that case , the competent authority shall immediately notify the request from the prospective issuer to esma.


### 2. where , on the basis of the programme of operation , the eba is of the opinion that asset-referenced tokens meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the eba shall prepare a draft decision to that effect and notify that draft decision to the competent authority of the applicant issuer’s home member state. ### 2. where , on the basis of the programme of operation , esma is of the opinion that asset-referenced tokens meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , esma shall prepare a draft decision to that effect and notify that draft decision to the competent authority of the applicant issuer’s home member state.


### the eba shall give competent authority of the applicant issuer’s home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. the eba shall duly consider those observations and comments. ### esma shall give competent authority of the applicant issuer’s home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. esma shall duly consider those observations and comments.


### 3. where , on the basis of the programme of operation , the eba is of the opinion that asset-referenced tokens do not meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the eba shall prepare a draft decision to that effect and notify that draft decision to the applicant issuer and the competent authority of the applicant issuer’s home member state. ### 3. where , on the basis of the programme of operation , esma is of the opinion that asset-referenced tokens do not meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , esma shall prepare a draft decision to that effect and notify that draft decision to the applicant issuer and the competent authority of the applicant issuer’s home member state.


### the eba shall give the applicant issuer and the competent authority of its home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. the eba shall duly consider those observations and comments. ### esma shall give the applicant issuer and the competent authority of its home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. esma shall duly consider those observations and comments.


### 4. the eba shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 1 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof. ### 4. esma shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 1 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof.


### 5. where asset-referenced tokens have been classified as significant in accordance with a decision referred to in paragraph 4 , the supervisory responsibilities shall be transferred to the eba on the date of the decision by which the competent authority grants the authorisation referred to in article 19(1). ### 5. where asset-referenced tokens have been classified as significant in accordance with a decision referred to in paragraph 4 , the supervisory responsibilities shall be transferred to esma on the date of the decision by which the competent authority grants the authorisation referred to in article 19(1).


### 6. the eba , in close cooperation with esma , shall develop draft regulatory technical standards specifying: ### 6. esma , in close cooperation with the eba , shall develop draft regulatory technical standards specifying:


### the eba shall submit those draft regulatory technical standards to the commission by [please insert date 12 months after entry into force]. ### esma shall submit those draft regulatory technical standards to the commission by [please insert date 12 months after entry into force].


### if the average outstanding amount of e-money tokens does not exceed eur 5 000 000 , or the corresponding equivalent in another currency , over a period of 12 months , calculated at the end of each calendar day. ### if the average outstanding amount of e-money tokens does not exceed eur 5 000 000 , or the corresponding equivalent in another fiat currency , over a period of 12 months , calculated at the end of each calendar day.


### for the purpose of point (b) , where the member state has set a threshold lower than eur 5 000 000 in accordance with article 9 (1)(a) of directive 2009/110/ec , such a threshold shall apply. ### deleted


### article 45 ### deleted


### a description of the issuer of e-money tokens; ### a description of the issuer(s) of e-money tokens , when known;


### a detailed description of the issuer’s project , and a presentation of the main participants involved in the project's design and development; ### a detailed description of the issuer’s project , and a presentation of the main participants involved in the project's design and development , when known;


### the risks relating to the issuer of e-money issuer , the e-money tokens and the implementation of the project , including the technology; ### the risks relating to the issuer(s) of the e-money tokens , the offeror of the e-money tokens , the e-money tokens and the implementation of the project , including the technology;


### 2. competent authorities of the issuer’s home member state shall provide the eba with information on the criteria referred to in article 39(1) of this article and specified in accordance with article 39(6) on at least a yearly basis. ### 2. competent authorities of the issuer or offeror's home member state shall provide the eba with information on the criteria referred to in article 39(1) of this article and specified in accordance with article 39(6) on at least a yearly basis.


### 3. where the eba is of the opinion that e-money tokens meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the eba shall prepare a draft decision to that effect and notify that draft decision to the issuers of those e-money tokens and the competent authority of the issuer’s home member state. the eba shall give issuers of such e-money tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. the eba shall duly consider those observations and comments. ### 3. where the eba is of the opinion that e-money tokens meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the eba shall prepare a draft decision to that effect and notify that draft decision to the issuers or offerors of those e-money tokens and the competent authority of the issuer or offeror's home member state. the eba shall give issuers or offerors of such e-money tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. the eba shall duly consider those observations and comments.


### 4. the eba shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 3 and immediately notify the issuers of such e-money tokens and their competent authorities thereof. ### 4. the eba shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 3 and immediately notify the issuers or offerors of such e-money tokens and their competent authorities thereof.


### 1. crypto-asset services shall only be provided by legal persons that have a registered office in a member state of the union and that have been authorised as crypto-asset service providers in accordance with article 55 ### 1. member states shall require crypto-asset service providers that intend to provide crypto-asset services , to obtain authorisation before commencing the provision of crypto-asset services. an authorisation shall only be granted to a legal person established in a member state.


### 3. an authorisation as a crypto-asset service provider shall be valid for the entire union and shall allow crypto-asset service providers to provide throughout the union the services for which they have been authorised , either through the right of establishment , including through a branch , or through the freedom to provide services. ### 3. an authorisation as a crypto-asset service provider shall be valid for the entire union and shall allow crypto-asset service providers to provide throughout the union the services for which they have been authorised , either through the right of establishment or through the freedom to provide services.


### the name , legal form and the legal entity identifier and the branches of the crypto-asset service provider; ### the name , legal form and the legal entity identifier of the crypto-asset service provider;


### 8. crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets shall complete the final settlement of a crypto-asset transaction on the dlt on the same date as the transactions has been executed on the trading platform. ### 8. crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets shall complete the final settlement of a crypto-asset transaction on the dlt on the within 72hrs of the transaction being executed on the trading platform.


### 3. crypto-asset service providers that are authorised for exchanging crypto-assets against fiat currency or other crypto-assets shall execute the clients' orders at the prices displayed at the time of their receipt. ### 3. crypto-asset service providers that are authorised for exchanging crypto-assets against fiat currency or other crypto-assets shall , if no fixed price has been agreed , execute the clients' orders at the average price displayed between the time of receipt and the time of the execution of the order.


### 1. issuers of crypto-assets shall inform the public as soon as possible of inside information which concerns them , in a manner that enables the public to access that information in an easy manner and to assess that information in a complete , correct and timely manner. ### 1. issuers and offerors of crypto-assets shall inform the public as soon as possible of inside information which concerns them , in a manner that enables the public to access that information in an easy manner and to assess that information in a complete , correct and timely manner.


### 2. issuers of crypto-assets may , on their own responsibility , delay disclosure to the public of inside information provided that all of the following conditions are met: ### 2. issuers and offerors of crypto-assets may , on their own responsibility , delay disclosure to the public of inside information provided that all of the following conditions are met:


### immediate disclosure is likely to prejudice the legitimate interests of the issuers; ### immediate disclosure is likely to prejudice the legitimate interests of the issuers or offerors;


### the issuers are able to ensure the confidentiality of that information. ### the issuers or offerors are able to ensure the confidentiality of that information.


### an assessment of whether the scope of crypto-asset services covered by this regulation is appropriate and whether any adjustment to the definitions set out in this regulation is needed; ### an assessment of whether the scope of crypto-asset services covered by this regulation is appropriate and whether any adjustment to the definitions set out in this regulation is needed , and whether any additional innovative crypto-asset forms would need to be added to this regulation;


### transparency and disclosure requirements for the issuance and admission to trading of crypto-assets; ### transparency and disclosure requirements for the issuance , offering and admission to trading on a trading platform of crypto-assets;


### the authorisation and supervision of crypto-asset service providers and issuers of asset-referenced tokens and issuers of electronic money tokens; ### the authorisation and supervision of crypto-asset service providers and issuers and offerors of both asset-referenced tokens and electronic money tokens;


### the operation , organisation and governance of issuers of asset-referenced tokens , issuers of electronic money tokens and crypto-asset service providers; ### the operation , organisation and governance of issuers and offerors of asset-referenced tokens , issuers and offerors of electronic money tokens and crypto-asset service providers;


### 1. this regulation applies to persons that are engaged in the issuance of crypto-assets or provide services related to crypto-assets in the union. ### 1. this regulation applies to persons that are engaged in the issuance or offering of crypto-assets for the purpose of trading or providing services related to crypto-asset trading in the union.


### the provisions of chapter i of title iii , except articles 21 and 22; ### the provisions of chapter i of title iii , except articles 21 and 22 and the information specified in article 16(2)(c)-(o).;


### 5. where providing one or more crypto-asset services , credit institutions authorised under directive 2013/36/eu shall not be subject to the provisions of chapter i of title v , except articles 57 and 58. ### 5. where providing one or more crypto-asset services , credit institutions authorised under directive 2013/36/eu shall not be subject to the provisions of chapter i of title v , except the information specified in article 54.2(d-r) , articles 57 and 58.


### 6. investment firms authorised under directive 2014/65/eu shall not be subject to the provisions of chapter i of title v , except articles 57 , 58 , 60 and 61 , where they only provide one or several crypto-asset services equivalent to the investment services and activities for which they are authorised under directive 2014/65/eu. for that purpose: ### 6. investment firms authorised under directive 2014/65/eu shall not be subject to the provisions of chapter i of title v , except the information specified in article 54.2(d-r) , articles 57 , 58 , 60 and 61 , where they only provide one or several crypto-asset services equivalent to the investment services and activities for which they are authorised under directive 2014/65/eu. for that purpose:


### (1) ‘distributed ledger technology’ or ‘dlt’ means a type of technology that support the distributed recording of encrypted data; ### (1) ‘distributed ledger technology’ or ‘dlt’ means a type of technology that support the distributed recording of data;


### (2) ‘crypto-asset’ means a digital representation of value or rights which may be transferred and stored electronically , using distributed ledger technology or similar technology; ### (2) ‘crypto-asset’ means a digital representation of value or rights for direct investment or finance purposes that use cryptography for security and are coins or tokens of distributed ledgers , and which may be transferred and stored electronically , using distributed ledger technology or similar technology;


### (4) ‘electronic money token’ or ‘e-money token’ means a type of crypto-asset the main purpose of which is to be used as a means of exchange and that purports to maintain a stable value by referring to the value of a fiat currency that is legal tender; ### (4) ‘electronic money token’ or ‘e-money token’ means a type of crypto-asset the main purpose of which is to be used as a means of exchange and that purports to maintain a stable value by maintaining a portfolio which ensures that the token maintains the value of a fiat currency that is legal tender; e-money tokens which maintain the value of a fiat currency of the union shall be deemed to be electronic money as defined in article 2 (2) of directive 2009/110/ec;


### (5) ‘utility token’ means a type of crypto-asset which is intended to provide digital access to a good or service , available on dlt , and is only accepted by the issuer of that token; ### (5) ‘utility token’ means a type of crypto-asset that is used for purposes other than as a means of payment or exchange for external goods or services and which is intended to provide digital access to a good or service , available on dlt , and is only accepted by the issuer of that token;


### (6) ‘issuer of crypto-assets’ means a legal person who offers to the public any type of crypto-assets or seeks the admission of such crypto-assets to a trading platform for crypto-assets; ### (6) ‘issuer of crypto-assets’ means a natural person , a legal person or other entity being subject of rights and obligations , who offers to the public any type of crypto-assets or seeks the admission of such crypto-assets to a trading platform for crypto-assets;


### where the issuer of crypto-assets , other than asset-referenced tokens or electronic money tokens , has its registered office or a branch in the union , the member state where the issuer of crypto-assets has its registered office or a branch; ### where the issuer of crypto-assets , other than asset-referenced tokens or electronic money tokens , has its registered office in the union , the member state where the issuer of crypto-assets has its registered office;


### where the issuer of crypto-assets , other than asset-referenced tokens or electronic money tokens , has no registered office in the union but has two or more branches in the union , the member state chosen by the issuer among those member states where the issuer has branches; ### deleted


### where the issuer of crypto-assets , other than asset-referenced tokens or electronic money tokens , is established in a third country and has no branch in the union , at the choice of that issuer , either the member state where the crypto-assets are intended to be offered to the public for the first time or the member state where the first application for admission to trading on a trading platform for crypto-assets is made; ### where the issuer of crypto-assets , other than asset-referenced tokens or electronic money tokens , is established in a third country , at the choice of that issuer , either the member state where the crypto-assets are intended to be offered to the public for the first time or the member state where the first application for admission to trading on a trading platform for crypto-assets is made;


### 1. no issuer of crypto-assets , other than asset-referenced tokens or e-money tokens , shall , in the union , offer such crypto-assets to the public , or seek an admission of such crypto-assets to trading on a trading platform for crypto-assets , unless that issuer: ### 1. no issuer or offeror of crypto-assets , other than asset-referenced tokens or e-money tokens , shall , in the union , offer such crypto-assets to the public , or seek an admission of such crypto-assets to trading on a trading platform for crypto-assets , unless that issuer or offeror:


### is a legal entity; ### is a legal entity , a natural person having its residence in the union , or other entity established or having seat in the union and subject to the rights and obligations of the union;


### the crypto-assets are offered to fewer than 150 natural or legal persons per member state where such persons are acting on their own account; ### the crypto-assets are offered to fewer than 500 natural or legal persons per member state where such persons are acting on their own account;


### over a period of 12 months , the total consideration of an offer to the public of crypto-assets in the union does not exceed eur 1 000 000 , or the equivalent amount in another currency or in crypto-assets; ### over a period of 12 months , the total consideration of an offer to the public of crypto-assets in the union does not exceed eur 8 000 000 , or the equivalent amount in another currency or in crypto-assets;


### for the purpose of point (a) , crypto-assets shall not be considered to be offered for free where purchasers are required to provide or to undertake to provide personal data to the issuer in exchange for those crypto-assets , or where the issuer of those crypto-assets receives from the prospective holders of those crypto-assets any third party fees , commissions , monetary benefits or non-monetary benefits in exchange for those crypto-assets. ### for the purpose of point (a) , crypto-assets shall not be considered to be offered for free where purchasers are required to provide or to undertake to provide personal data to the issuer or offeror in exchange for those crypto-assets , or where the issuer or offeror of those crypto-assets receives from the prospective holders of those crypto-assets any third party fees , commissions , monetary benefits or non-monetary benefits in exchange for those crypto-assets.


### a detailed description of the issuer and a presentation of the main participants involved in the project's design and development; ### a detailed description of the issuer and offeror , when different , and a presentation of the main participants involved in the project's design and development;


### a detailed description of the rights and obligations attached to the crypto-assets and the procedures and conditions for exercising those rights; ### a detailed description of the rights and obligations attached to the crypto-assets and the procedures and conditions by which the issuer , offeror and the consumer may exercise those rights;


### 1. issuers of crypto-assets , other than asset-referenced tokens and e-money tokens , shall offer a right of withdrawal to any consumer who buys such crypto-assets directly from the issuer or from a crypto-asset service provider placing crypto-assets on behalf of that issuer. ### 1. issuers of crypto-assets , other than asset-referenced tokens and e-money tokens , shall offer a right of withdrawal to any consumer who buys such crypto-assets directly from the issuer or from a crypto-asset service provider placing crypto-assets on behalf of that issuer , and in case of modification of the white paper by the issuer.


### eur 350 000; ### eur 200 000;


### a. whereas the issue of harmful tax practices is debated in the report of its committee on economic and monetary affairs of 21 july 2021 on reforming the eu policy on harmful tax practices (including the reform of the code of conduct group); ### a. whereas the european parliament in its resolution of 7 october 2021 put forward proposals to reform the eu policy on harmful tax practices , including the code of conduct group on business taxation;


### b. whereas although tax policy largely remains a member state responsibility , the single market requires a minimum degree of coordination in setting tax policy1 ; ### b. whereas although tax policy largely remains a member state responsibility , the single market requires harmonization in setting tax policy1 ;


### c. whereas tax policy fragmentation creates various obstacles for companies and citizens in the single market , including legal uncertainty , red tape , the risk of double taxation and difficulties claiming tax refunds; whereas these obstacles discourage cross-border economic activity in the single market; whereas policy fragmentation also creates risks for tax authorities such as double non-taxation and arbitrage possibilities (such as tax planning); ### c. whereas tax policy fragmentation creates various obstacles for companies and citizens in the single market , including legal uncertainty , red tape , the risk of double taxation and difficulties claiming tax refunds; whereas these obstacles discourage cross-border economic activity and can distort the eu single market; whereas policy fragmentation also creates risks for tax authorities such as double non-taxation and arbitrage possibilities (such as tax planning);


### 1. recalls that member states are free to decide on their own economic policies and in particular their own tax policies; recalls , however , that member states must exercise this competence consistently with union law; ### 1. recalls that member states are free to decide on their own economic policies which can lead to policy fragmentation in the field of taxation and an un-level playing field within the union and in particular their own tax policies; recalls , however , that member states must exercise this competence consistently with union law thereby allowing for fair competition and avoiding any distortion of the eu single market;


### 1. recalls that member states are free to decide on their own economic policies and in particular their own tax policies; recalls , however , that member states must exercise this competence consistently with union law; ### 1. recalls that member states are free to decide on their own economic policies and in particular their own tax policies; emphasises that it logically follows that decisions in the council regarding tax matters require unanimity; recalls , however , that member states must exercise this competence consistently with union law;


### 4. notes that tax base harmonisation such as the common corporate tax base or the ‘business in europe: framework for income taxation’ could reduce the cost of tax compliance for smes that operate in more than one member state; ### 4. welcomes the commission’s communication on business taxation for the 21st century stating that “the lack of a common corporate tax system in the single market acts as a drag on competitiveness (...) and that it creates a competitive disadvantage compared to third country markets”; stresses that tax base harmonisation such as the common corporate tax base or the ‘business in europe: framework for income taxation’ could reduce the cost of tax compliance for smes that operate in more than one member state; looks forward to the european commission’s proposal on befit expected in 2023 and calls on member states to swiftly agree on an ambitious proposal for a single eu corporate tax rulebook providing for a fairer allocation of taxing rights between member states;


### 4. notes that tax base harmonisation such as the common corporate tax base or the ‘business in europe: framework for income taxation’ could reduce the cost of tax compliance for smes that operate in more than one member state; ### 4. notes that tax base harmonisation such as the common corporate tax base or the ‘business in europe: framework for income taxation’ could reduce the cost of tax compliance for smes that operate in more than one member state; stresses that its proposed introduction must not lead to direct or indirect taxation of companies by the eu;


### coordination of tax policy ### harmonization of tax policy


### 6. notes that the eu has developed coordination mechanisms such as peer review procedures within the code of conduct group and country-specific recommendations in the context of the european semester; points out that the commission has recommended to six member states that they curb aggressive tax planning as part of the 2020 country-specific recommendations; ### 6. highlights that the fragmentation of national tax policies can have a distortive effect on the eu single market and be harmful for the eu economy; welcomes that the eu has developed coordination mechanisms such as peer review procedures within the code of conduct group (coc) and country-specific recommendations in the context of the european semester; believes that both these mechanisms need to be reformed; underlines that within the coc member states re-examine , amend or abolish their existing tax measures that constitute harmful tax competition , as well as refrain from introducing new ones in the future ; welcomes in this regard the european parliament’s position from october 2021 calling for the reform of the criteria , the scope and governance of the coc to ensure fair taxation within the european union; points out that the commission has recommended to six member states that they curb aggressive tax planning as part of the 2020 country-specific recommendations (csrs) , recalls that the recovery and resilience facility and csrs , including those related to taxation , are intricately linked , as set out in the regulation on establishing a recovery and resilience facility;


### 7. highlights that the ideal level for tax policy coordination is on the international stage through the g20/oecd; notes that eu tax proposals based on international agreements have historically been more likely to be adopted by the council; ### 7. highlights that , in order to maximise the impact , the ideal level for tax policy coordination is on the international stage through the g20/oecd; however recognizes that international negotiations in the field of taxation often face difficulties to reach a consensus and are therefore slow to address the shortcomings of the international tax system; recommends in this case that the european union should lead by example to address these shortcomings without prejudice to ongoing international negotiations;


### 8. points out that in areas of high importance for the functioning of the single market and the capital markets union , more harmonisation is warranted either through better member state coordination or eu action; ### 8. points out that in areas of high importance for the functioning of the single market , such as taxation , and the capital markets union , more harmonisation is warranted either through better member state coordination or eu action;


### 9. notes that digitalisation and a heavy reliance on intangible assets that pose challenges to the current tax system warrant a high degree of policy coordination; deplores the fact that some member states have pressed ahead with the introduction of national digital taxes despite ongoing negotiations at eu and oecd levels; stresses that these national measures should be phased out following the implementation of an effective international solution; ### 9. notes that digitalisation and a heavy reliance on intangible assets that pose challenges to the current tax system warrant a high degree of policy harmonization; welcomes the fact that some member states have pressed ahead with the introduction of national digital taxes despite ongoing negotiations at eu and oecd levels; underlines that these national measures have generated a positive pressure on international negotiations and that they make a coordinated european solution all the more pressing; stresses that these national measures should be phased out following the implementation of an effective international solution covering the same aspects;


### 14. highlights that tax incentives for private research and development (e.g. via tax credits , enhanced allowances or adjusted depreciation schedules) can help to lift an economy’s overall spending towards research and development , which often comes with positive externalities; is concerned , however , that certain types of tax incentives such as patent box / intellectual property box regimes do little to increase research and development spending and may actually distort the single market; ### 14. highlights that tax incentives for private research and development (e.g. via tax credits , enhanced allowances or adjusted depreciation schedules) can help to lift an economy’s overall spending towards research and development , which often comes with positive externalities; the logic of tax incentives applies to european philanthropy as well that proved very useful since the corona crisis; is concerned , however , that certain types of tax incentives such as patent box / intellectual property box regimes do little to increase research and development spending and may actually distort the single market;


### a. whereas the fiscal system must be reformed if the state is to continue establishing the preconditions for inclusive and sustainable well-being; ### a. whereas the fiscal system must be reformed if member states are to continue establishing promoting inclusive and sustainable well-being and to address the inequalities exacerbated by the covid-19 pandemic;


### a. whereas the fiscal system must be reformed if the state is to continue establishing the preconditions for inclusive and sustainable well-being; ### a. whereas measures to establish preconditions for inclusive and sustainable well-being require proportional and targeted adaptations in the fiscal system;


### b. whereas the economic recovery and the climate crisis have increased the need to mobilise more resources and re-evaluate the current taxation policies; ### b. whereas the economic recovery and the climate crisis have increased the need to mobilise more resources and to abolish overly complex national taxation policies that only increase the risk of loopholes for tax evasion and distort competition in particular disadvantaging smes;


### c. whereas tax morale is generally higher in countries that tax more heavily , which is evidence for the willingness of citizens to pay tax in return for effective public services9; ### deleted


### c. whereas tax morale is generally higher in countries that tax more heavily , which is evidence for the willingness of citizens to pay tax in return for effective public services9 ; ### deleted


### c. whereas tax morale is generally higher in countries that tax more heavily , which is evidence for the willingness of citizens to pay tax in return for effective public services9 ; ### c. whereas tax morale is generally higher in countries where citizens get effective public services for their taxes and accordingly show a greater willingness to pay more;


### c. whereas tax morale is generally higher in countries that tax more heavily , which is evidence for the willingness of citizens to pay tax in return for effective public services9; ### c. whereas tax morale is generally higher in countries that tax more heavily , though that correlation can provide no insight as to causality9;


### d. whereas the 2011 eu flagship initiative for a resource-efficient europe called for 10 % of total government taxation revenue to come from environmental taxation; ### deleted


### d. whereas the 2011 eu flagship initiative for a resource-efficient europe called for 10 % of total government taxation revenue to come from environmental taxation; ### d. whereas the 2011 eu flagship initiative for a resource-efficient europe called for a contribution to government budgets from emissions pricing and , in return , for the tax burden to be lowered;


### e. whereas small and medium-sized enterprises (smes) are particularly affected by the complexities of the tax system and tax compliance , disproportionately so compared to multinational enterprises (mnes); ### e. whereas small and medium-sized enterprises (smes) are particularly affected by the complexities of the tax system and tax compliance , taking into account their limited resources compared to those of multinational enterprises (mnes);


### 1. considers that covid-19 has given the eu a unique chance for a proper and holistic analysis of tax systems , how individual taxes interact and how they can be better coordinated to produce more flexible , resilient , green and fairer tax systems; recommends that member states take this opportunity to build a new social-fiscal contract with citizens; underlines that this will help not only with raising revenues , but also with building trust and accountability between citizens and the state; stresses the need for coordination at eu level to avoid distortions and subsequent revenue losses; ### 1. considers that covid-19 has given the eu a unique chance for a proper and holistic analysis of tax systems , how individual taxes interact and how they can be better coordinated to produce more flexible , resilient , green and fairer tax systems;


### 1. considers that covid-19 has given the eu a unique chance for a proper and holistic analysis of tax systems , how individual taxes interact and how they can be better coordinated to produce more flexible , resilient , green and fairer tax systems; recommends that member states take this opportunity to build a new social-fiscal contract with citizens; underlines that this will help not only with raising revenues , but also with building trust and accountability between citizens and the state; stresses the need for coordination at eu level to avoid distortions and subsequent revenue losses; ### 1. considers that covid-19 has given the eu a unique chance for a proper and holistic analysis of tax systems , how individual taxes interact and how they can be better coordinated to produce more flexible , resilient , green and fairer tax systems; underlines the fact that this will not help with raising revenues , but , rather , will help build trust and accountability between citizens and the state; points out that highly complex arrangements and the existence of a host of petty taxes reduce acceptance of taxation among the general public , and stresses the need for coordination at eu level to avoid distortions and subsequent revenue losses;


### 2. highlights that current tax systems , and the fiscal capacities of member states , are already facing and will increasingly face severe shocks , such as the need for large public investments to sustain the economic recovery and the green transition , the ageing of our societies and the consequent reduction in the working-age population , the digital transformation of our labour markets , increased tax competition and the existing tax gap10 ### 2. highlights that current tax systems , and the fiscal capacities of member states , are already facing and will increasingly face severe shocks , such as the need for large public investments to sustain the economic recovery and the green transition , the ageing of our societies and the consequent reduction in the working-age population , the digital transformation of our labour markets , increased tax competition and the existing tax gap; is concerned at what were high levels of tax liabilities in some member states even before the covid crisis;10


### 5. observes that in spite of the numerous calls for shifting taxation from labour to pollution , revenues from taxes on pollution and resources in particular have remained very low , and yet they offer a potential source for increasing revenue through the application of the ‘polluter pays’ principle and are difficult to evade owing to the character of the tax base; ### 5. observes that in spite of the numerous calls for shifting taxation from labour to pollution , revenues from taxes on pollution and resources in particular have remained very low , and yet they offer a potential source for increasing revenue through the application of the ‘polluter pays’ principle and are difficult to evade owing to the character of the tax base; stresses that the "polluter pays" principle should not be applied in a way that leads to the transfer of the major part of the additional taxes to the consumer;


### 5. observes that in spite of the numerous calls for shifting taxation from labour to pollution , revenues from taxes on pollution and resources in particular have remained very low , and yet they offer a potential source for increasing revenue through the application of the ‘polluter pays’ principle and are difficult to evade owing to the character of the tax base; ### 5. observes that in spite of the numerous calls for shifting taxation from labour to pollution , revenues from taxes on pollution and resources in particular have remained very low in many member states , and yet they offer a potential source for increasing revenue through the application of the ‘polluter pays’ principle and are difficult to evade owing to the character of the tax base;


### 6. notes that a significant amount of government funding is channeled through tax expenditure in the form of exemptions , deductions , credits , deferrals and reduced tax rates13 ; ### deleted


### 6. notes that a significant amount of government funding is channeled through tax expenditure in the form of exemptions , deductions , credits , deferrals and reduced tax rates13 ; ### 6. notes that a significant amount of government funding is channeled through tax expenditure in the form of exemptions , deductions , credits , deferrals and reduced tax rates13 ; notes further that these overly complex national tax systems and in particular their various exemptions lead to loopholes;


### 7. notes that covid-19 has demonstrated that the current disproportionate reliance on labour income taxes and social contributions , which puts the onus on continued high levels of employment and consumption to fund government spending and policies , is neither sustainable nor economically effective; ### deleted


### 7. notes that covid-19 has demonstrated that the current disproportionate reliance on labour income taxes and social contributions , which puts the onus on continued high levels of employment and consumption to fund government spending and policies , is neither sustainable nor economically effective; ### 7. notes that covid-19 has demonstrated that the current disproportionate reliance on labour income taxes and social contributions puts a disproportionate burden on certain sectors of the population;


### 8. notes with concern that the impact of the covid-19 pandemic is highly regressive , with the poorest households being the most severely hit14 ; regrets that large companies that realise excess profits , such as e-commerce businesses and wealthy individuals who realise significant capital gains through speculation , are often undertaxed; ### 8. notes with concern that the impact of the covid-19 pandemic is highly regressive , with the poorest households being the most severely hit14 ; regrets that large companies can make use of their highly mobile nature to benefit from elaborate tax schemes and profit shifting;


### 8. notes with concern that the impact of the covid-19 pandemic is highly regressive , with the poorest households being the most severely hit14 ; regrets that large companies that realise excess profits , such as e-commerce businesses and wealthy individuals who realise significant capital gains through speculation , are often undertaxed; ### 8. notes with concern that the impact of the covid-19 pandemic is highly regressive , with the poorest households being the most severely hit14 ; recalls the need to find a fair and proportionate taxation for multinational enterprises that are even benefiting from the current crisis and a new normal in the digital sphere;


### 9. highlights that environmental taxes have the potential to cover the need for additional revenue while supporting a resilient , competitive , sustainable and carbon-free economy; calls on member states to consider expanding the tax base for environmental taxes through inter alia natural resource taxes , distance-based charges in the transport sector , fuel prices , and the taxation of deforestation , landfill , incineration , pesticides and fertilizers; ### 9. highlights that environmental taxes , that do not contribute to fuel poverty , have the potential to provide additional revenue while supporting a resilient , competitive , sustainable and carbon-neutral economy; calls on member states to consider expanding the tax base for environmental taxes through inter alia natural resource taxes , distance-based charges in the transport sector , fuel prices , and the taxation of deforestation , landfill and incineration; notes , however , that the transition to a carbon-neutral economy will impact certain sectors of the economy significantly more than others and we must , therefore , ensure that smes in these sectors , such as agriculture , are not simultaneously burdened by tax increases;


### 9. highlights that environmental taxes have the potential to cover the need for additional revenue while supporting a resilient , competitive , sustainable and carbon-free economy; calls on member states to consider expanding the tax base for environmental taxes through inter alia natural resource taxes , distance-based charges in the transport sector , fuel prices , and the taxation of deforestation , landfill , incineration , pesticides and fertilizers; ### 9. highlights the potential of a globally agreed and stringent emissions trading system (ets) on which the price of co2 emissions should be based. it needed to include all sectors , i.e. , electricity mobility , in particular international sectors such as aviation , shipping and transport. in the long-term , forestry and agriculture need to be included as well. additionally , the reduction of co2 emissions in the industrial sector must be promoted through co2-reducing technology. thus , distortions of competition , for example with regard to energy prices , arising from unilateral national or eu-wide regulations , as well as "carbon leakage" are avoided;


### 9. highlights that environmental taxes have the potential to cover the need for additional revenue while supporting a resilient , competitive , sustainable and carbon-free economy; calls on member states to consider expanding the tax base for environmental taxes through inter alia natural resource taxes , distance-based charges in the transport sector , fuel prices , and the taxation of deforestation , landfill , incineration , pesticides and fertilizers; ### 9. highlights that environmental taxes have the potential to cover the need for additional revenue while supporting a resilient , competitive , sustainable and carbon-free economy; calls on member states to consider expanding the tax base for environmental taxes through inter alia natural resource taxes , distance-based charges in the transport sector , fuel prices , and the taxation of deforestation , landfill , incineration , pesticides , fertilizers and nuclear waste;


### 9. highlights that environmental taxes have the potential to cover the need for additional revenue while supporting a resilient , competitive , sustainable and carbon-free economy; calls on member states to consider expanding the tax base for environmental taxes through inter alia natural resource taxes , distance-based charges in the transport sector , fuel prices , and the taxation of deforestation , landfill , incineration , pesticides and fertilizers; ### 9. highlights that environmental taxes have the potential to cover the need for additional revenue while supporting a resilient , competitive , sustainable and carbon-free economy; calls on member states to consider expanding the tax base for environmental taxes through inter alia taxes on natural resource extraction and consumption and the taxation of deforestation , and points out in this connection that this must be done in a technology-neutral manner;


### 10. underlines that environmental taxation should be accompanied by a general tax shift , such as to lower labour income taxes and social security contributions , to protect low-income households from regressive effects and to build more resilient , economically efficient and fairer tax systems15 ; notes that the specific tax design is at least as important as the tax type; ### 10. underlines that environmental taxation should be accompanied by a general tax shift , to protect low-income households from regressive effects and to build more resilient , economically efficient and fairer tax systems15 ; notes that the specific tax design is at least as important as the tax type;


### 11. warns that national budgets cannot rely on environmental taxes alone , as some of these revenues will fall as environmental harm decreases over time; calls on member states to develop holistic tax reforms , shifting taxation from labour to not only pollution but also capital and wealth16 ; ### 11. warns that national budgets cannot rely on environmental taxes alone , as some of these revenues will fall as environmental harm decreases over time; calls on member states , with support from the eu , to continue to explore new and innovative potential sources of revenue that continue to incentivise a move towards a carbon-neutral economy , and address new or under-addressed sources of environmental harm; calls on member states to develop holistic tax reforms , by broadening the tax base and addressing its overreliance on taxation of labour;


### 11. warns that national budgets cannot rely on environmental taxes alone , as some of these revenues will fall as environmental harm decreases over time; calls on member states to develop holistic tax reforms , shifting taxation from labour to not only pollution but also capital and wealth16 ; ### 11. warns that national budgets cannot rely on environmental taxes alone; calls on member states to develop holistic tax reforms , installing a fair and transparent tax system making everyone pay a fair share;


### 12. calls on member states to revise tax expenditure in all tax areas; calls on member states to perform annual , detailed and public cost-benefit analyses of each tax provision; ### 12. calls on member states to perform annual , detailed and public cost-benefit analyses of tax expenditures and to ensure that they remain aligned with environmental , social and economic goals of the eu whilst taking account of national idiosyncrasies;


### 13. observes that there is also room for significant revenue and efficiency gains at tax administration level; notes that an effective and efficient tax administration , as well as a high degree of tax certainty , can encourage investment and foster competitiveness; ### 13. observes that there is also room for significant revenue and efficiency gains at tax administration level; notes that an effective and efficient tax administration , as well as a high degree of tax certainty , can encourage investment and foster competitiveness; notes that the commission 2020 vat gap report forecast a vat revenue loss of €164 billion;17a


### 14. welcomes initiatives taken by the commission within the framework of the green deal; notes with concern that no clear and holistic guidance exists on how taxation should contribute to achieving the goals set out in the green deal and considers that the taxation system should therefore be reformed; ### 14. welcomes initiatives taken by the commission within the framework of the green deal; notes with concern that no clear and holistic guidance exists on how taxation should contribute to achieving the goals set out in the green deal and considers that the taxation system should therefore be reformed; stresses that taxation can be used both to deter certain behaviours and to incentivise investments in research and development or infrastructure necessary to achieving a carbon-neutral economy;


### 14. welcomes initiatives taken by the commission within the framework of the green deal; notes with concern that no clear and holistic guidance exists on how taxation should contribute to achieving the goals set out in the green deal and considers that the taxation system should therefore be reformed; ### 14. takes note of initiatives taken by the commission within the framework of the green deal; notes with concern that no clear and holistic guidance exist on how the costs of the implementation of the green deal is to be shouldered , particularly by smes , in particular with a view on the large bureaucratic burden that not at last emerges due to the taxonomy regulation;


### 16. welcomes the commission’s soon-to-be-published revision of the energy taxation directive17 ; calls on member states to agree to close tax exemptions for aviation and maritime fuels , increase minimum rates and restore the level playing field; calls on the commission to launch a proposal for a progressive european kerosene tax; ### 16. welcomes the commission’s soon-to-be-published revision of the energy taxation directive17 ; calls on member states to agree to close tax exemptions for aviation and maritime fuels , increase minimum rates and restore the level playing field; calls on the commission to launch a proposal for a progressive european kerosene tax; calls on the commission and member states to launc independent studies concerning the impact on world commerce and tourism of the eventual closing of tax exemptions for aviation and maritime fuels;


### 16. welcomes the commission’s soon-to-be-published revision of the energy taxation directive17 ; calls on member states to agree to close tax exemptions for aviation and maritime fuels , increase minimum rates and restore the level playing field; calls on the commission to launch a proposal for a progressive european kerosene tax; ### 16. welcomes the commission’s soon-to-be-published revision of the energy taxation directive17 ; calls on member states to agree to gradually close tax exemptions for aviation and maritime fuels , increase minimum rates and restore the level playing field;


### 16. welcomes the commission’s soon-to-be-published revision of the energy taxation directive17; calls on member states to agree to close tax exemptions for aviation and maritime fuels , increase minimum rates and restore the level playing field; calls on the commission to launch a proposal for a progressive european kerosene tax; ### 16. welcomes the commission’s soon-to-be-published revision of the energy taxation directive17; calls on member states to agree to quickly close tax exemptions for aviation and maritime fuels , increase minimum rates and restore the level playing field; calls on the commission to launch a proposal for a progressive european kerosene tax;


### 16. welcomes the commission’s soon-to-be-published revision of the energy taxation directive17 ; calls on member states to agree to close tax exemptions for aviation and maritime fuels , increase minimum rates and restore the level playing field; calls on the commission to launch a proposal for a progressive european kerosene tax; ### 16. takes note of the commission’s soon-to-be-published revision of the energy taxation directive17 ; highlights in the context of proposed tax exemptions and transport taxes the potential of the emissions trading system (ets) that should include transportation (comprehending maritime and road transport);


### a. whereas the european semester plays an essential role in coordinating economic and budgetary policies in the member states; ### a. whereas the european semester plays an essential role in coordinating economic and budgetary policies in the member states which , primarily , serves to ensure sound public finances , to prevent excessive macroeconomic imbalances , to support structural reforms and to boost investment;


### a. whereas the european semester plays an essential role in coordinating economic and budgetary policies in the member states; ### a. whereas the european semester plays an essential role in coordinating economic and budgetary policies in the member states , which is a process designed primarily to safeguard budgetary sustainability;