### (18) as regards the measures for re-establishing and facilitating free movement of persons and any other measures affecting the free movement of persons provided under this regulation , they are based on article 21 tfeu and complement directive 2004/38/ec without affecting its application at the time of single market emergencies. such measures should not result in authorising or justifying restrictions to free movement contrary to the treaties or other provisions of union law. ### (18) as regards the measures for ensuring and facilitating free movement of persons and any other measures affecting the free movement of persons provided under this regulation , they are based on article 21 tfeu and complement directive 2004/38/ec without affecting its application at the time of single market emergencies. such measures should never result in authorising or justifying restrictions to free movement contrary to the treaties or other provisions of union law.


### (19) article 45 tfeu lays down the right to free movement of workers , subject to the limitations and conditions laid down in the treaties and the measures adopted to give them effect. this regulation contains provisions which complement the existing measures in order to reinforce free movement of persons , increase transparency and provide administrative assistance during single market emergencies. such measures include setting up and making available of the single points of contact to workers and their representatives in the member states and at union level during the single market vigilance and emergency modes under this regulation. ### (19) article 45 tfeu lays down the right to free movement of workers , subject to the limitations and conditions laid down in the treaties and the measures adopted to give them effect. this regulation contains provisions which complement the existing measures in order to safeguard free movement of persons , increase transparency and provide administrative assistance during single market emergencies. such measures include setting up and making available of the single points of contact to workers and their representatives in the member states and at union level during the single market vigilance and emergency modes under this regulation. member states and the commission are encouraged to use existing instruments for the set up and operation of these contact points. such contact points should be active even outside the emergency mode and should help communication between the member states and with the advisory board. the information provided by the contact point should be clear and understandable and accessible to persons with disabilities.


### (20) if member states adopt measures affecting free movement of goods or persons , goods or the freedom to provide services in preparation for and during single market emergencies , they should limit such measures to what is necessary and remove them as soon as the situation allows it. such measures should respect the principles of proportionality and non-discrimination and should take into consideration the particular situation of border regions. ### (20) the free movement of goods , services and persons is established in the treaties and constitutes a key principle of the european union. therefore , these freedoms should always be upheld. if member states nevertheless adopt measures affecting free movement of goods , services or persons in preparation for and during single market emergencies , those measures should be justified , non-discriminatory , limited in time and proportionate to address the emergency on the single market. all potential measures should be removed as soon as the situation allows it , and at the very latest when the emergency mode has been deactivated. any restriction that is still in place when the emergency mode has been deactivated should have no legal effect on neither persons nor economic operators. such measures should respect the principles of proportionality and non-discrimination and should take into consideration the particular situation of border regions. in the light of digitalisation and recent technical developments , teleworking arrangements can be a suitable solution for many workers in situations where cross-border commuting to the workplace is not possible. however , in order to avoid discrimination , workers for whom cross-border telework is not feasible , for example due to the nature of their tasks and responsibilities , should not be subject to undue restrictions to their freedom of movement as long as their health and safety can be ensured.


### (22) when examining the compatibility of any notified draft or adopted measures with the principle of proportionality , the commission should pay due regard to the evolving crisis situation and often limited information that is at the disposal of the member states when they seek to reduce the emerging risks in the context of the crisis. where justified and necessary in the circumstances , the commission may consider based on any available information , including specialised or scientific information , the merits of member state arguments relying on the precautionary principle as a reason for adoption of free movement of persons restrictions. it is the task of the commission to ensure that such measures comply with union law and do not create unjustified obstacles to the functioning of the single market. the commission should react to the notifications of member states as quickly as possible , taking into account the circumstances of the particular crisis , and at the latest within the time-limits set out by this regulation. ### (22) when examining the compatibility of any notified draft or adopted measures with the principle of proportionality , the commission should pay due regard to the evolving crisis situation and often limited information that is at the disposal of the member states when they seek to reduce the emerging risks in the context of the crisis. where justified and necessary in the circumstances , the commission may consider based on any available information , including specialised or scientific information , the merits of member state arguments relying on the precautionary principle as a reason for adoption of restrictions of free movement for persons. however , given the task of the commission to ensure that such measures comply with union law and do not create unjustified obstacles to the functioning of the single market , the rule should always be free movement as laid down in the treaties. the commission should react to the notifications of member states as quickly as possible , taking into account the circumstances of the particular crisis , and at the latest within the time-limits set out by this regulation.


### (23) in order to ensure that the specific single market emergency measures provided for in this regulation are used only where this is indispensable for responding to a particular single market emergency , such measures should require individual activation by means of commission implementing acts , which indicate the reasons for such activation and the crisis-relevant goods or services that such measures apply to. ### (23) in order to ensure that the specific single market emergency measures provided for in this regulation are used only where this is indispensable for responding to a particular single market emergency , such measures should require individual activation by means of commission implementing acts , which indicate the reasons for such activation , how the measures comply with the provisions laid down in the tfeu as well as the crisis-relevant goods or services that such measures apply to.


### (24) furthermore , in order to ensure the proportionality of the implementing acts and due respect for the role of economic operators in crisis management , the commission should only resort to the activation of the single market emergency mode , where economic operators are not able to provide a solution on a voluntary basis within a reasonable time. why this is the case should be indicated in each such act , and in relation to all particular aspects of a crisis. ### (24) furthermore , in order to ensure the proportionality of the implementing acts and due respect for the autonomy of social partners and the role of economic operators in crisis management , the commission should only resort to the activation of the single market emergency mode , where economic operators are not able to provide a solution on a voluntary basis within a reasonable time. why this is the case should be indicated in each such act , and in relation to all particular aspects of a crisis.


### (36) this regulation respects fundamental rights and observes the principles recognised in particular by the charter of fundamental rights of the european union (the ‘charter’). in particular , it respects the right to privacy of the economic operators enshrined in article 7 of the charter , right to data protection set out in article 8 of the charter , the freedom to conduct business and the freedom of contract , which are protected by article 16 of the charter , the right to property , protected by article 17 of the charter , right to collective bargaining and action protected by article 26 of the charter and the right to an effective judicial remedy and to a fair trial as provided for in article 47 of the charter. since the objective of this regulation cannot be sufficiently achieved by the member states and can rather , by reason of the scale or effects of the action , be better achieved at union level , the union may adopt measures in accordance with the principle of subsidiarity as set out in article 5 of the treaty. in accordance with the principle of proportionality as set out in that article , this regulation does not go beyond what is necessary in order to achieve that objective. the regulation should not affect the autonomy of the social partners as recognised by the tfeu. ### (36) this regulation safeguards the fundamental rights as laid down in the treaties and observes the principles recognised in particular by the charter of fundamental rights of the european union (the ‘charter’). in particular , it respects the right to privacy of the economic operators enshrined in article 7 of the charter , right to data protection set out in article 8 of the charter , the right to engage in work , protected by article 15 of the charter , the freedom to conduct business and the freedom of contract , which are protected by article 16 of the charter , the right to property , protected by article 17 of the charter , right to non-discrimination as protected by article 21 by the charter , right to collective bargaining and action protected by article 26 of the charter and the right to an effective judicial remedy and to a fair trial as provided for in article 47 of the charter. since the objective of this regulation cannot be sufficiently achieved by the member states and can rather , by reason of the scale or effects of the action , be better achieved at union level , the union may adopt measures in accordance with the principle of subsidiarity as set out in article 5 of the treaty. in accordance with the principle of proportionality as set out in that article , this regulation does not go beyond what is necessary in order to achieve that objective. the regulation should not affect the autonomy of the social partners as recognised by the tfeu.


### 1. this regulation establishes a framework of measures to anticipate , prepare for and respond to impacts of crises on the single market , with the purpose of safeguarding the free movement of goods , services and persons and of ensuring the availability of goods and services of strategic importance and crisis-relevant goods and services in the single market. ### 1. this regulation establishes a framework of measures to anticipate , prepare for and address the impacts of crises disrupting the single market , with the purpose of safeguarding the free movement of goods , services and persons and of facilitating access to crisis-relevant goods and services in the single market.


### 1. the measures set out in this regulation apply in relation to significant impacts of a crisis on the functioning of the single market and its supply chains. ### 1. the measures set out in this regulation apply in relation to significant impacts of a crisis on the functioning of the single market , in order to safeguard the rights as laid down in the treaties , in particular the right to free movement of goods , services and persons.


### (1) ‘crisis’ means an exceptional unexpected and sudden , natural or man-made event of extraordinary nature and scale that takes place inside or outside of the union; ### (1) ‘crisis’ means an exceptional unexpected and sudden , natural or man-made event of extraordinary nature and scale that takes place inside or outside of the union which creates or risks creating a significant adverse impact on the free movement of goods , services or persons on the single market;


### (2) ‘single market vigilance mode’ means a framework for addressing a threat of significant disruption of the supply of goods and services of strategic importance and which has the potential to escalate into a single market emergency within the next six months; ### (2) ‘single market vigilance mode’ means a framework for addressing a threat of the free movement of goods , services or persons and which has the potential to escalate into a single market emergency within the next six months;


### (3) ‘single market emergency’ means a wide-ranging impact of a crisis on the single market that severely disrupts the free movement on the single market or the functioning of the supply chains that are indispensable in the maintenance of vital societal or economic activities in the single market; ### (3) ‘single market emergency’ means a wide-ranging impact of a crisis on the single market that severely disrupts the free movement of goods , services or persons on the single market or the functioning of supply chains that are indispensable in the maintenance of vital societal or economic activities in the single market;


### (4) ‘strategically important areas’ means those areas with critical importance to the union and its member states , in that they are of systemic and vital importance for public security , public safety , public order or public health , and the disruption , failure , loss or destruction of which would have a significant impact on the functioning of the single market; ### (4) ‘critically important areas’ means those areas with critical importance to the union and its member states , in that they are of systemic and vital importance for public security , public safety , public order or public health , and the disruption , failure , loss or destruction of which would have a significant impact on the functioning of the single market;


### (5) ‘goods and services of strategic importance’ means goods and services that are indispensable for ensuring the functioning of the single market in strategically important areas and which cannot be substituted or diversified; ### (5) ‘goods and services of critical importance’ means goods and services that are indispensable for ensuring the functioning of the single market in critically important areas and which cannot be substituted or diversified;


### (7) ‘strategic reserves’ means a stock of goods of strategic importance for which building a reserve may be necessary to prepare for a single market emergency , under the control of a member state. ### (7) ‘critical reserves’ means a stock of goods of critical importance for which building a reserve may be necessary to prepare for a single market emergency , under the control of a member state.


### 3. the commission shall chair the advisory group and ensure its secretariat. the commission may invite a representative of the european parliament , representatives of efta states that are contracting parties to the agreement on the european economic area49 , representatives of economic operators , stakeholder organisations , social partners and experts , to attend meetings of the advisory group as observers. it shall invite the representatives of other crisis-relevant bodies at union level as observers to the relevant meetings of the advisory group. ### 3. the commission shall chair the advisory group and ensure its secretariat. the advisory group shall invite a representative of the european parliament , representatives of efta states that are contracting parties to the agreement on the european economic area49 , representatives of economic operators , stakeholder organisations , the europeansocial partners and experts , to attend meetings of the advisory group as observers. it shall invite the representatives of other crisis-relevant bodies at union level as observers to the relevant meetings of the advisory group.


### 9. the advisory group may adopt opinions , recommendations or reports in the context of its tasks set out in paragraphs 4 to 6. ### 9. the advisory group shall adopt opinions , recommendations or reports in the context of its tasks set out in paragraphs 4 to 6. opinions , recommendations or reports shall be made public , in accordance with directive 2016/943.


### 1. the commission taking into consideration the opinion of the advisory group and the input of relevant union level bodies , is empowered after consulting the member states , to adopt a delegated act to supplement this regulation with a framework setting out crisis protocols regarding crisis cooperation , exchange of information and crisis communication for the single market vigilance and emergency modes , in particular: ### 1. the commission taking into consideration the opinion of the advisory group and the input of relevant union level bodies and after consulting the member states , is empowered to adopt a delegated act to supplement this regulation with a framework setting out crisis protocols regarding crisis cooperation , exchange of information and crisis communication for the single market vigilance and emergency modes , in particular:


### a coordinated approach to risk and crisis communication also vis-à-vis the public with a coordinating role for the commission; ### a coordinated approach to risk and crisis communication with both economic operators and the public with a coordinating role for the commission;


### consultation of the representatives of economic operators and social partners , including smes , on their initiatives and actions to mitigate and respond to potential supply chain disruptions and overcome potential shortages of goods and services in the single market; ### consultation of the representatives of economic operators including smes , and the european social partners to collect market intelligence regarding their capacity and preparedness to manage potential disruption of the free movement of goods , services or persons particularly workers , and overcome potential supply chain disruptions in the single market ,


### 1. where the commission , taking into consideration the opinion provided by the advisory group , considers that the threat referred to in article 3(2) is present , it shall activate the vigilance mode for a maximum duration of six months by means of an implementing act. such an implementing act shall contain the following: ### 1. where the commission , duly reflecting the decision provided by the advisory group , considers that the threat referred to in article 3(2) is present , it shall activate the vigilance mode for a maximum duration of six months by means of an implementing act.


### the commission may , among the goods of strategic importance listed in an implementing act adopted pursuant to article 9(1) , , identify those for which it may be necessary to build a reserve in order to prepare for a single market emergency , taking into account the probability and impact of shortages. the commission shall inform the member states thereof. ### the commission may , among the goods of strategic importance listed in an implementing act adopted pursuant to article 9(1) , , identify those for which it may be necessary to build a reserve in order to prepare for a single market emergency , taking into account the probability and impact of shortages. the commission shall give a detailed reason for this identification and for the need to build a reserve and inform the member states thereof.


### i measures for re-establishing and facilitating free movement ### i measures for ensuring and facilitating free movement


### 16 general requirements for measures restricting free movement to address a single market emergency ### 16 essential requirements to limit measures restricting free movement to address a single market emergency


### 1. when adopting and applying national measures in response to a single market emergency and the underlying crisis , member states shall ensure that their actions fully comply with the treaty and union law and , in particular , with the requirements laid down in this article. ### 1. where a member states introduces national measures in response to a single market emergency and the underlying crisis , the member state shall ensure that such measures fully comply with the treaty and union law and , in particular , with the requirements laid down in this article.


### 2. any restriction shall be limited in time and removed as soon as the situation allows it. additionally , any restriction should take into account the situation of border regions. ### 2. any restriction shall be justified , non-discriminatory , limited in time and proportionate to address the emergency on the single market. it shall be removed as soon as the situation allows it , and at the very latest when the emergency mode has been deactivated. any restriction that is still in place when emergency mode has been deactivated shall have no legal effect on natural persons nor economic operators. additionally , any restriction should take into account the situation of border regions.


### 3. any requirement imposed on citizens and businesses shall not create an undue or unnecessary administrative burden. ### 3. any requirement imposed on citizens , workers and businesses shall not create an undue or unnecessary administrative burden.


### 4. member states shall inform citizens , consumers , businesses , workers and their representatives about measures that affect their free movement rights in a clear and unambiguous manner. ### 4. member states shall inform citizens , consumers , businesses , workers and their representatives about measures that affect their free movement rights in a clear ,unambiguous and timely manner. such information should be accessible for persons with disabilities and made available in relevant languages in particular in cross-border areas.


### 5. member states shall ensure that all affected stakeholders are informed of measures restricting free movement of goods , services and persons , including workers and service providers , before their entry into force. member states shall ensure a continuous dialogue with stakeholders , including communication with social partners and international partners. ### 5. member states shall ensure that all affected stakeholders are informed of measures restricting free movement of goods , services and persons , including workers and service providers , before their entry into force , as well as the foreseen timeline for its deactivation. member states shall ensure a continuous dialogue with stakeholders , including communication with social partners and international partners. member states shall also involve social partners to the greatest extent possible in the elaboration of measures that could have an impact on labour mobility.


### 17 prohibited restrictions of free movement rights during a single market emergency ### 17 prohibited restrictions of free movement rights including during a single market emergency


### 1. during the single market emergency mode and when responding to a single market emergency , member states shall refrain from introducing any of the following: ### 1. member states shall refrain from introducing at any time including during the single market emergency mode any of the following:


### discrimination between member states or between citizens , including in their role as service providers or workers , based directly on nationality or , in the case of companies , the location of the registered office , central administration or principal place of business; ### discrimination between member states or between citizens , including in their role as service providers or workers , based directly or indirectly on nationality or , in the case of companies , the location of the registered office , central administration or principal place of business;


### (ii) are directly discriminatory based on nationality of the person. ### (ii) are directly or indirectly discriminatory based on nationality of the person.


### 2. during the single market emergency mode and when responding to the single market emergency , member states shall refrain from any of the following , unless to do so is inherent to the nature of the crisis: ### 2. member states shall refrain from introducing at any time including during the single market emergency mode any of the following:


### 3. during the single market emergency mode and when responding to a single market emergency , member states shall refrain from any of the following unless to do so is inherent to the nature of the crisis/single market emergency: ### 3. member states shall refrain from introducing at any time including during the single market emergency mode any of the following:


### 4. during the single market emergency mode and when responding to the single market emergency , member states shall refrain from any of the following: ### 4. member states shall refrain from introducing at any time including during the single market emergency mode any of the following:


### applying of more generous rules to travel to or from one member state to or from another member state or group of member states , as compared to travel to and from other member states unless to do so is inherent to the nature of the crisis/single market emergency; ### applying of more generous rules to travel to or from one member state to or from another member state or group of member states , as compared to travel to and from other member states;


### imposing prohibitions on travel , including travel for imperative family reasons , which are not appropriate for the achievement of any legitimate public interest purportedly pursued by such measures or which manifestly go beyond what is necessary to achieve that aim; ### imposing prohibitions on travel , including travel for imperative family reasons , which are not proportionate for the achievement of any legitimate public interest purportedly pursued by such measures or which manifestly go beyond what is necessary to achieve that aim;


### imposing restrictions on workers and service providers and their representatives , unless to do so in inherent to the nature of the crisis/single market emergency and it does not manifestly go beyond what is necessary for that purpose. ### imposing restrictions on workers and service providers and their representatives which are not proportionate for the achievement of any legitimate public interest purportedly pursued by such measures , or which manifestly go beyond what is necessary to achieve the aim. due regard shall be given to the situation of different types of workers , for example mobile workers.


### during the single market emergency , member states shall notify to the commission any crisis-relevant draft measures restricting free movement of goods and the freedom to provide services as well as crisis-relevant restrictions of free movement of persons , including workers together with the reasons for those measures. ### during the single market emergency , member states shall notify to the commission any crisis-relevant draft measures restricting free movement of goods and the freedom to provide services as well as any proposed crisis-relevant restrictions of free movement of persons , including workers together with the reasons for those measures.


### such notification shall not prevent member states from adopting the measures in question in case immediate action is needed due to reasons occasioned by serious and unforeseeable circumstances. member states shall notify the adopted measure immediately together with a justification for the need to immediately adopt the measure. ### deleted


### 2. member states shall provide to the commission a statement of the reasons which make the enactment of such measure justified and proportionate , where those reasons have not already been made clear in the notified measure. member states shall communicate to the commission the full text of the national legislative or regulatory provisions which contain or are modified by the measure. ### 2. member states shall provide to the commission a statement substantiating that the enactment of such measures or restrictions are justified , non-discriminatory and proportionate. member states shall communicate to the commission the full text of the national legislative or regulatory provisions which contain or are modified by the measure.


### 6. the commission shall ensure that citizens and businesses are informed of the notified measures , unless member states request that the measures remain confidential , or the commission deems disclosure of those measures would affect the security and public order of the european union or its member states , as well as of the decisions and member states’ comments adopted in accordance with this article. ### 6. the commission shall ensure that citizens , businesses , workers , the social partners and other affected stakeholders are informed of the notified measures , in a clear and unambiguous matter before their entry into force.


### 11. if the commission finds that the measures communicated by the notifying member state are still not in accordance with union law , it may issue within 30 days of that communication , a decision requiring that member state to refrain from adopting the notified draft measure. the notifying member state shall communicate the adopted text of a notified draft measure to the commission without delay. ### 11. if the commission finds that the measures communicated by the notifying member state are still not in accordance with union law , it may issue within 10 days of that communication , a decision requiring that member state to refrain from adopting the notified draft measure. the notifying member state shall communicate the adopted text of a notified draft measure to the commission without delay.


### 12. if the commission finds that an already adopted measure that has been notified to it , is not in accordance with union law , it may issue within 30 days of that notification a decision requiring the member state to abolish it. the notifying member state shall communicate the text of a revised measure in case it modifies the notified adopted measure without delay. ### 12. if the commission finds that an already adopted measure that has been notified to it , is not in accordance with union law , it may issue within 10 days of that notification a decision requiring the member state to abolish it. the notifying member state shall communicate the text of a revised measure in case it modifies the notified adopted measure without delay.


### 13. the period of 30 days referred to in paragraphs 11 and 12 may be exceptionally extended by the commission in order to take account of a change of circumstances , in particular to receive scientific advice , evidence or technical expertise in the context of an evolving situation. the commission shall set out the reasons justifying any such extension and shall set a new deadline and shall inform the member states about the new deadline and the reasons for the extension without delay. ### 13. the period of 10 days referred to in paragraphs 11 and 12 may be exceptionally extended by the commission in order to take account of a change of circumstances , in particular to receive scientific advice , evidence or technical expertise in the context of an evolving situation. the commission shall set out the reasons justifying any such extension and shall set a new deadline and shall inform the member states about the new deadline and the reasons for the extension without delay.


### 1. member states shall operate national single points of contact that shall provide citizens , consumers , economic operators and workers and their representatives with the following assistance: ### 1. member states shall operate national single points of contact that shall provide citizens , civil society organizations , consumers , economic operators and workers and their representatives with the following assistance:


### 2. member states shall ensure that it is possible for citizens , consumers , economic operators and workers and their representatives to receive , at their request and via the respective single points of contact , information from the competent authorities on the way in which the respective national crisis response measures are generally interpreted and applied. where appropriate , such information shall include a step-by-step guide. the information shall be provided in clear , understandable and intelligible language. it shall be easily accessible at a distance and by electronic means and shall be kept up to date. ### 2. member states shall ensure that it is possible for citizens , consumers , civil society organisations , economic operators and workers and their representatives to receive , at their request and via the respective single points of contact , information from the competent authorities on the way in which the respective national crisis response measures are generally interpreted and applied. where appropriate , such information shall include a step-by-step guide. the information shall be provided in clear , understandable and intelligible language and shall be accessible to persons with disabilities. it shall also be easily accessible at a distance and by electronic means and shall be kept up to date.


### 2. the union level single point of contact shall provide citizens , consumers , economic operators , workers and their representatives with the following assistance: ### 2. the union level single point of contact shall provide citizens , civil society organizations , consumers , economic operators , workers and their representatives with the following assistance:


### 2. if an economic operator does not accept and prioritise priority rated orders , the commission may , at its own initiative or at the request of 14 member states , assess the necessity and proportionality of resorting to priority rated orders in such cases , the commission shall give the economic operator concerned as well as any parties demonstrably affected by the potential priority rated order , the opportunity to state their position within a reasonable time limit set by the commission in light of the circumstances of the case. in exceptional circumstances , following such an assessment , the commission may address an implementing act to the economic operator concerned , requiring it to either accept and prioritise the priority rated orders specified in the implementing act or explain why it is not possible or appropriate for that operator to do so. the commission’s decision shall be based on objective data showing that such prioritisation is indispensable to ensure the maintenance of vital societal economic activities in the single market ### 2. if an economic operator does not accept and prioritise priority rated orders , the commission may , following a positive decision of the advisory group , at its own initiative or at the request of 14 member states , assess the necessity and proportionality of resorting to priority rated orders in such cases , the commission shall give the economic operator concerned as well as any parties demonstrably affected by the potential priority rated order , the opportunity to state their position within a reasonable time limit set by the commission in light of the circumstances of the case. in exceptional circumstances , following such an assessment , the commission may following a positive decision of the advisory group , address an implementing act to the economic operator concerned , requiring it to either accept and prioritise the priority rated orders specified in the implementing act or explain why it is not possible or appropriate for that operator to do so. the commission’s decision shall be based on objective data showing that such prioritisation is indispensable to ensure the maintenance of vital societal economic activities in the single market emergency and may only be adopted where the crisis-relevent goods cannot be procured in accordance with articles 34 , 37 and 38.


### 2. fines imposed in the cases referred to in paragraph 1 (a) and (b) shall not exceed 200 000 eur. ### 2. fines imposed in the cases referred to in paragraph 1 (b) shall not exceed 200 000 eur. the maximum fine imposed in the cases referred to in paragraph 1(b) for economic operators that are smes as defined in recommendation 2003/361/ec shall not exceed 5 000 eur.


### 3. fines imposed in the cases referred to in paragraph 1 (c) shall not exceed 1 % of the average daily turnover in the preceding business year for each working day of non-compliance with the obligation pursuant to article 27 (priority rated orders) calculated from the date established in the decision not exceeding 1% of total turnover in the preceding business year. ### 3. fines imposed in the cases referred to in paragraph 1 (c) shall not exceed 0 ,5 % of the average daily turnover in the preceding business year for each working day of non-compliance with the obligation pursuant to article 27 (priority rated orders) calculated from the date established in the decision not exceeding 0 ,5 % of total turnover in the preceding business year. the maximum fine imposed in the cases referred to in paragraph 1(c) for economic operators that are smes as defined in recommendation 2003/361/ec shall not exceed 0.1 % of the average daily turnover in the preceding business year for each working day of non-compliance with the obligation pursuant to article 27 (priority rated orders) calculated from the date established in the decision but not exceeding 0.1% of total turnover in the preceding business year.


### member states shall report to the commission the levels of strategic reserves of goods of strategic importance held by them , and the levels of other stocks of such goods held on their territory. ### member states shall report to the commission the approximate levels of strategic reserves of goods of critical importance held by them , and the levels of other stocks of such goods held on their territory , where such information is known. such information shall be confidential.


### following such an assessment , where the commission establishes , supported by objective data , that ### deleted


### where the economic operator to which the decision referred to in paragraph 2 is addressed declines to accept the requirement to accept and prioritise the orders specified in the decision , it shall provide to the commission , within 10 days from the notification of the decision , a reasoned explanation setting out duly justified reasons why it is not possible or appropriate , in light of the objectives of this provision , for it to comply with the requirement. such reasons include the inability of the operator to perform the priority rated order on account of insufficient production capacity or a serious risk that accepting the order would entail particular hardship or economic burden for the operator , or other considerations of comparable gravity. ### the economic operator to which the decision referred to in paragraph 2 is addressed may decide to decline the requirement specified in the decision. it shall reply to the commission , within 10 days from the notification of the decision.


### the commission may make such reasoned explanation or parts of it public , with due regard to business confidentiality. ### deleted


### 6. the commission shall take the decision referred to in paragraph 2 in accordance with applicable union law , including the principles of necessity and proportionality , and the union’s obligations under international law. the decision shall in particular take into account the legitimate interests of the economic operator concerned and any available information concerning the cost and effort required for any change in production sequence. it shall state the legal basis for its adoption , fix the time limits within which the priority rated order is to be performed and , where applicable , specify the product and quantity. it shall state the fines provided for in article 28 for failure to comply with the decision. the priority rated order shall be placed at a fair and reasonable price. ### 6. the commission shall take the decision referred to in paragraph 2 in accordance with applicable union law , including the principles of necessity and proportionality , and the union’s obligations under international law. the decision shall in particular take into account the legitimate interests of the economic operator concerned and any available information concerning the cost and effort required for any change in production sequence. it shall state the legal basis for its adoption , fix the time limits within which the priority rated order is to be performed and , where applicable , specify the product and quantity. it shall state the fines provided for in article 28 for failure to comply with the decision. the priority rated order shall be placed at a market price.


### 7. where an economic operator accepts and prioritises a priority rated order , it shall not be liable for any breach of contractual obligations governed by the law of a member state that is required to comply with the priority rated order. liability shall be excluded only to the extent the violation of contractual obligations is necessary for compliance with the required prioritisation. ### 7. where an economic operator accepts and prioritises a priority rated order , it shall not be liable for any breach of contractual obligations governed by the law of a member state that is required to comply with the priority rated order. liability shall be excluded only to the extent the violation of contractual obligations is necessary for compliance with the required prioritisation. entities and persons affected by the necessary breach of the contractual obligations for compliance with the required prioritisation shall also not be liable themselves for any breach of contractual obligations derived from the original breach.


### 2. the commission shall assess the utility , necessity and proportionality of the request. where the commission intends not to follow the request , it shall inform the member states concerned and the advisory group referred to in article 4 and give reasons for its refusal. ### 2. the commission shall assess the utility , necessity and proportionality of the request. if the commission decides to launch a procurement on behalf of the member states , it shall inform the advisory group and the member states concerned about its intention to carry out such procurement. where the commission intends not to follow the request , it shall inform the member states concerned and the advisory group referred to in article 4 and give reasons for its refusal.


### (5) such a new instrument will contribute to reinforce common defence procurement and , through the associated union financing , to strengthen eu defence industrial capabilities. ### (5) such a new instrument will contribute to reinforce common defence procurement and , through the associated union financing through sufficient funding , however without cuts from other union programmes , to strengthen the eu defence industrial capabilities and cooperation in procurement operations.


### (16) as the instrument aims to enhance the competitiveness and efficiency of the union’s defence industry , to benefit from the instrument , common procurement contracts will need to be placed with legal entities which are established in the union or in associated countries and are not subject to control by non-associated third countries or by non-associated third-country entities. in that context , control should be understood to be the ability to exercise a decisive influence on a legal entity directly , or indirectly through one or more intermediate legal entities. additionally , in order to ensure the protection of essential security and defence interests of the union and its member states , the infrastructure , facilities , assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a member state or of an associated third country. ### (16) as the instrument aims to enhance the competitiveness , efficiency and the independence of the union’s defence industry , to benefit from the instrument , according to the legal basis , common procurement contracts will need to be placed with legal entities which are established in the union or in associated countries and are not subject to control by non-associated third countries or by non-associated third-country entities. in that context , control should be understood to be the ability to exercise a decisive influence on a legal entity directly , or indirectly through one or more intermediate legal entities. additionally , in order to ensure the protection of essential security and defence interests of the union and its member states , the infrastructure , facilities , assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a member state or of an associated third country.


### (17) in certain circumstances , it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the instrument are not subject to control by non-associated third countries or non associated third-country entities. in that context , a legal entity established in the union or in an associated third country and controlled by a non-associated third country or a non-associated third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the union and its member states , as established in the framework of the common foreign and security policy pursuant to title v of the treaty on european union (teu) , including in terms of strengthening the european defence technological and industrial base , are fulfilled. ### (17) in certain exceptional circumstances , it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the instrument are not subject to control by non-associated third countries or non associated third-country entities. in that context , a legal entity established in the union or in an associated third country and controlled by a non-associated third country or a non-associated third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the union and its member states , as established in the framework of the common foreign and security policy pursuant to title v of the treaty on european union (teu) , including in terms of strengthening the european defence technological and industrial base , are fulfilled.


### (17) in certain circumstances , it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the instrument are not subject to control by non-associated third countries or non associated third-country entities. in that context , a legal entity established in the union or in an associated third country and controlled by a non-associated third country or a non-associated third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the union and its member states , as established in the framework of the common foreign and security policy pursuant to title v of the treaty on european union (teu) , including in terms of strengthening the european defence technological and industrial base , are fulfilled. ### (17) in certain circumstances , it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the instrument are not subject to control by non-associated third countries or non associated third-country entities. in that context , a legal entity established in the union or in an associated third country and controlled by a non-associated third country or a non-associated third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the union and its member states , as established in the framework of the common foreign and security policy pursuant to title v of the treaty on european union (teu) , including in terms of strengthening the european defence technological and industrial base , are fulfilled and that the participation doesn´t endanger the strategic autonomy of the union and its member states.


### (18) furthermore , the common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to control or restriction by a non-associated third country or a non-associated third country entity. ### (18) furthermore , the common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to control or restriction by a non-associated third country or a non-associated third country entity in order to hinder any kind of interference through the defence product.


### (19) grants under the instrument may take the form of financing not linked to cost based on the achievement of results by reference to work packages , milestones or targets of the common procurement process , in order to create the necessary incentive effect. ### (19) grants under the instrument may take the form of financing not linked to cost based on the achievement of results by clearly defined reference to work packages , milestones or targets of the common procurement process , in order to create the necessary incentive effect.


### (23) in accordance with article 193(2) of the financial regulation , a grant may be awarded for an action which has already begun , provided that the applicant can demonstrate the need for starting the action prior to signature of the grant agreement. however , financial contribution should not cover a period prior to the date of submission of the grant application , except in duly justified exceptional cases. in order to avoid any disruption in union support which could be prejudicial to the interests of the union , it should be possible to provide in the financing decision for financial contributions to actions that cover a period from the 24 february 2022 , even if they have started before the grant application was submitted. ### (23) in accordance with article 193(2) of the financial regulation , a grant may be awarded for an action which has already begun , provided that the applicant can demonstrate the need for starting the action prior to signature of the grant agreement. however , financial contribution should not cover a period prior to the date of submission of the grant application , except in duly justified exceptional cases. in order to avoid any disruption in union support which could be prejudicial to the interests of the union , it should exceptionally be possible to provide in the financing decision for financial contributions to actions within the scope of this programme that cover a period from the beginning of the unjustified russian invasion of ukraine that started on the 24 february 2022 , even if they have started before the grant application was submitted.


### (24) regulation (eu , euratom) no 2018/1046 (the ‘financial regulation’) applies to this programme. it lays down rules on the implementation of the union budget , including the rules on grants. ### (24) regulation (eu , euratom) no 2018/1046 (the ‘financial regulation’) applies to this programme. it lays down clearly definied rules on the implementation of the union budget , including the rules on grants.


### to foster cooperation in defence procurement process between participating member states contributing to solidarity , interoperability , prevention of crowding-out effects , avoiding fragmentation and increasing the effectiveness of public spending. ### to foster cooperation in defence procurement process between participating member states contributing to solidarity , interoperability , prevention of crowding-out effects , avoiding fragmentation and increasing the effectiveness of public spending in the union and its member states.


### 1. the financial envelope for the implementation of the instrument for the period from the entry into force of this regulation to 31 december 2024 shall be eur 500 million in current prices. ### 1. the financial envelope for the implementation of the instrument for the period from the entry into force of this regulation to 31 december 2024 shall be eur 500 million in current prices , from unallocated funds without cuts from ongoing programmes.


### 2. the amount referred to in paragraph 1 may be used for technical and administrative assistance for the implementation of the instrument , such as preparatory , monitoring , control , audit and evaluation activities including corporate information technology systems. ### 2. the amount referred to in paragraph 1 may be used for technical and administrative assistance for the implementation of the instrument , such as preparatory , monitoring , control , audit and evaluation activities including corporate information technology systems , without exceeding 25% of the estimated value of the procurement contract.


### 4. grants implemented under direct management shall be awarded and managed in accordance with title viii of the financial regulation. ### 4. grants implemented under direct management shall be awarded and thoroughly managed in accordance with title viii of the financial regulation.


### 4. contractors and subcontractors involved in the common procurement shall be established and have their executive management structures in the union. they shall not be subject to control by a non-associated third country or by a non-associated third country entity. ### 4. contractors and subcontractors involved in the common procurement shall be established , evaluated and have their executive management structures in the union. they shall not be subject to control by a non-associated third country or by a non-associated third country entity.


### (10) in the light of the above challenges and the related structural changes in the eu defence industry , it appears necessary to speed up the adjustment of the european defence technological and industrial base , enhance its competitiveness and efficiency , and thereby contribute to strengthening and reforming member states’ defence industrial capabilities. addressing industrial shortfalls should include promptly tackling the most urgent gaps. ### (10) in the light of the above challenges and the related structural changes in the eu defence industry , and in accordance with article 173 of the treaty on the functioning of the european union , it appears necessary to speed up the adjustment of the european defence technological and industrial base , enhance its competitiveness and efficiency , and thereby contribute to strengthening and reforming member states’ defence industrial capabilities. addressing industrial shortfalls should include promptly tackling the most urgent gaps.


### 2. the objectives shall be pursued with an emphasis on strengthening and developing the union defence industrial base to allow it to address in particular the most urgent and critical defence products needs , especially those revealed or exacerbated by the response to the russian aggression against ukraine , taking into account the work of the defence joint procurement task force. ### 2. the objectives shall be pursued with an emphasis on strengthening and developing the union defence industrial base in accordance with the legal basis of the instrument to allow it to address in particular the most urgent and critical defence products needs , especially those revealed or exacerbated by the response to the russian aggression against ukraine , taking into account the work of the defence joint procurement task force.


### 1. the instrument shall be implemented in direct management in accordance with the financial regulation. ### 1. the instrument shall be implemented in direct management in accordance with the financial regulation. grants shall take the form of financing not linked to costs referred to in article 180(3) of the financial regulation.


### 3. where necessary for the implementation of an action , financial contributions may cover a period prior to the date of the request for financial contributions for that action , provided that the action has not started prior to the 24 february 2022. ### 3. by way of derogation to article 193 of the financial regulation , and where necessary for the implementation of an action , financial contributions may cover actions started prior to the date of the request for financial contributions for that action , provided that these actions have not started prior to the 18 may 2022 and have not been completed before the signature of the grant agreement. retroactively eligible actions must comply with all eligibility criteria provided for in articles 7 and 8.


### 9. common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction by a non-associated third country or a non-associated third country entity. ### 9. common procurement procedures and contracts shall also include a requirement specifying that the defence product cannot be subject to a restriction by a non-associated third country or a non-associated third country entity.


### 4. the commission shall be empowered to lay down by means of implementing acts rules regarding the follow-up actions to be taken with respect to subsystems and safety components placed on the market in accordance with articles 43c to 43f. those implementing acts shall be adopted in accordance with the examination procedure referred to in article 44(3). ### deleted


### 2. the notified bodies shall process all applications for conformity assessment of subsystems and safety components designated as crisis-relevant goods as a matter of priority. ### 2. the notified bodies shall make all reasonable efforts to process all applications for conformity assessment of subsystems and safety components designated as crisis-relevant goods as a matter of priority.


### 4. the prioritisation of applications for conformity assessment of subsystems and safety components pursuant to paragraph 3 shall not give rise to any additional costs for the manufacturers , who have lodged those applications. ### 4. the prioritisation of applications for conformity assessment of subsystems and safety components pursuant to paragraph 3 shall not give rise to any extraordinary additional costs for the manufacturers , who have lodged those applications.


### 5. the notified bodies shall deploy their best efforts to increase their testing capacities for subsystems and safety components designated as crisis-relevant goods in respect of which they have been notified. ### 5. the notified bodies shall deploy all reasonable efforts to increase their testing capacities for subsystems and safety components designated as crisis-relevant goods in respect of which they have been notified.


### 1. by way of derogation from article 18 , any competent national authority may authorise , on a duly justified request , the placing on the market or the incorporation into a cableway installation within the territory of the member state concerned , of a specific subsystem or safety component which has been designated as crisis-relevant good and for which the conformity assessment procedures requiring the mandatory involvement of a notified body , referred to in article 18 have not been carried out by a notified body but for which the compliance with all the applicable essential requirements has been demonstrated. ### 1. by way of derogation from article 18 , the competent national authority may authorise , on a duly justified request from an economic operator established in its member state , the placing on the market or the incorporation into a cableway installation within the territory of the member state concerned , of a specific subsystem or safety component which has been designated as crisis-relevant good and for which the conformity assessment procedures requiring the mandatory involvement of a notified body , referred to in article 18 have not been carried out by a notified body but for which the compliance with all the applicable essential requirements has been demonstrated.


### the manufacturer shall also deploy all reasonable measures to ensure that the subsystem or safety component , which has been granted an authorisation pursuant to paragraph 1 , does not leave the territory of the member state , which issued the authorisation. ### deleted


### 3. any authorisation issued by a national competent authority pursuant to paragraph 1 shall set out the conditions and requirements under which the subsystem or safety component may be placed on the market or incorporated into a cableway installation , including: ### 3. any authorisation issued by a national competent authority pursuant to paragraph 1 shall set out the conditions and requirements under which the subsystem or safety component may be placed on the market or incorporated into a cableway installation , including at least:


### an end date of validity of the authorisation , which cannot go beyond the last day of the period for which the single market emergency mode has been activated; ### deleted


### measures to be taken with respect to the subsystem or safety component concerned upon expiry of the authorisation in order to ensure that the subsystem or safety component concerned is brought back in compliance with all the requirements of this regulation. ### deleted


### 4. by way of derogation from article 43a(3) , first subparagraph , where appropriate , the national competent authority may amend the conditions of the authorisation referred to in paragraph 3also after the deactivation or expiry of the single market emergency mode. ### 4. by way of derogation from article 43a(3) , first subparagraph , where appropriate , the national competent authority may also amend the conditions of the authorisation referred to in paragraph 3 after the deactivation or expiry of the single market emergency mode.


### 5. by way of derogation from articles 7 and 20 , subsystems or safety components , for which an authorisation has been granted in accordance with paragraph 1 of this article , shall not leave the territory of the member state which has issued the authorisation and shall not bear the ce marking. ### 5. by way of derogation from articles 7 and 20 , subsystems or safety components , for which an authorisation has been granted in accordance with paragraph 1 of this article , shall not bear the ce marking. instead the good should carry the information that it is placed on the market based on a derogation that requires the manufacturer to ensure that the good complies with the essential requirements of [directive/regulation xxx]


### 6. the market surveillance authorities of the member state , whose competent authority has granted an authorisation pursuant to paragraph 1 , shall be entitled to take all corrective and restrictive measures at national level provided for under this regulation with respect to such subsystems or safety components. ### 6. the market surveillance authorities of the member state , whose competent authority has granted an authorisation pursuant to paragraph 1 , shall be entitled to take all corrective and restrictive measures at national level provided for under this regulation with respect to such subsystems or safety components. the market surveillance authorities shall keep all records related to products authorised under a derogation for a period of 10 years. they shall make these records available to other market surveillance authorities upon request.


### member states shall take all appropriate measures to ensure that , for the purposes of placing on the market , their competent authorities consider that subsystems and safety components , which comply with the relevant international standards or any national standards in force in the member state of manufacture , ensuring the safety level required by the essential requirements set out in annex ii , comply with those essential requirements in either of the following cases: ### member states shall take all appropriate measures to ensure that , for the purposes of placing on the market , their competent authorities consider that subsystems and safety components , which comply with the relevant international standards , harmonised european standards not published in the official journal of the european union or any national standards in force in the member state of manufacture , ensuring the safety level required by the essential requirements set out in annex ii , comply with those essential requirements in either of the following cases:


### 4. supports the launch of the high-level forum for standardisation and the desire to broaden the range of voices heard when identifying standardisation needs , planning future activities and coordinating approaches in standardisation bodies; underlines that this expert group should include a diverse range of stakeholders , without losing sight of the bottom-up , market-driven nature of standardisation activities; ### 4. supports the launch of the high-level forum for standardisation and the desire to broaden the range of voices heard when identifying standardisation needs , planning future activities and coordinating approaches in standardisation bodies; underlines that this expert group should include a diverse range of stakeholders , including sme associations , without losing sight of the bottom-up , market-driven nature of standardisation activities;


### 6. welcomes the creation of an eu excellence hub on standards and the appointment of a chief standardisation officer (cso) in the commission; believes that this position and the hub , as a resource , should lead to greater consistency across the commission in terms of standardisation requests and the preparation and adoption of standards and legislative provisions with relevance to standardisation; considers that the person holding this oversight function should be an important interlocutor for parliament , enabling the technical scrutiny of the commission’s standardisation activities; ### 6. welcomes the creation of an eu excellence hub on standards and the appointment of a chief standardisation officer (cso) in the commission; believes that this position and the hub , as a resource , should lead to greater consistency across the commission in terms of standardisation requests and the timely adoption of standards and legislative provisions with relevance to standardisation as well as the consistent application of the new legislative framework; considers that the person holding this oversight function should be an important interlocutor for parliament , enabling the technical scrutiny of the commission’s standardisation activities;


### 7. believes that the commission should establish a clear set of key performance indicators on the aspects of standardisation within its remit; ### 7. believes that the commission should , in consultation with the european standardisation organisations , establish a clear set of key performance indicators on the aspects of standardisation within its remit;


### 11. stresses that there may be inherent limits to speeding up the standardisation process , as the preparation of standards , citation of harmonised standards and industry implementation of those standards all add time before market adoption; recognises that it may be easier to accelerate administrative tasks , such as citation in the official journal , but that the unduly rushed preparation or deployment of standards creates challenges for all stakeholders , including national authorities; encourages the commission , in conjunction with improvements to its own internal processes , to continue working with the esos on ways of achieving timely delivery , including consideration of the most suitable standardisation deliverable depending on the need; ### 11. stresses that there may be inherent limits to speeding up the standardisation process , as the preparation of standards , citation of harmonised standards and industry implementation of those standards all add time before market adoption; recognises that it may be easier to accelerate administrative tasks , such as citation in the official journal , but that the unduly rushed preparation or deployment of standards creates challenges for all stakeholders , including national authorities; encourages the commission , in conjunction with improvements to its own internal processes , to continue working with the esos on ways of achieving timely delivery , including early exchange of information on the content and feasibility of planned standardization requests and the consideration of the most suitable standardisation deliverable depending on the need; welcomes the action plan of the task force “timely european standards for a green and digital , single and global market” between the commission , efta and the esos;


### 12. considers that an evaluation of regulation (eu) 1025/2012 may identify areas where reform is needed beyond the targeted amendment already introduced by the commission; considers that the role , participation and input of relevant stakeholders , including those representing , inter alia , smes and environmental , social and consumer interests , should be evaluated and strengthened where such reforms may be beneficial and complementary to work envisaged by the esos following the commission’s call for them to present proposals to reform their own internal governance; ### 12. considers that an evaluation of regulation (eu) 1025/2012 may identify areas where further efforts with the option of a reform , if deemed necessary , are needed beyond the targeted amendment already introduced by the commission; considers that the role , participation and input of relevant stakeholders , including those representing , inter alia , smes and environmental , social and consumer interests , should be evaluated and strengthened where such reforms may be beneficial and complementary to work envisaged by the esos following the commission’s call for them to present proposals to reform their own internal governance;


### 14. recognises the need for a consistent approach towards technical or common specifications , in particular as different legislative processes may give rise to divergent provisions; considers , therefore , that this mechanism should only be used in exceptional circumstances and only while relevant standards do not exist; expresses concern about technical specifications concerning , among other things , respect for fundamental rights , where recourse to implementing acts affects the co-legislators’ powers of scrutiny; ### 14. recognises the need for a consistent approach towards common specifications , in particular as different legislative processes are currently giving rise to divergent provisions; highlights the importance of linkage between common specifications and existing european and international standards in order to ease compliance , especially for small and medium sized companies; considers , therefore , that this mechanism should only be used in exceptional cases where the commission has requested one or more european standardization organisations (esos) to draft a harmonised standard and there are undue delays in the standardisation procedure or the request hast , without reason , not been accepted , only after consultation with the esos and only when relevant standards do not exist and are not expected to be published within a reasonable period; expresses concern about common specifications concerning , among other things , respect for fundamental rights , where recourse to implementing acts affects the co-legislators’ powers of scrutiny; stresses the need for a harmonized approach towards common specifications throughout different union legislative acts;


### 15. considers that divergent regulatory outcomes may also affect the standardisation process more generally , owing to differing terminology , the lack of standard clauses for standardisation requests and difficulties in ex ante oversight; underlines that this problem is even more significant where standards are relevant for more than one regulatory act; believes that a common approach or formalised agreement between the commission and the co-legislators could be explored in order to streamline the preparation of standards and detailed conditions for technical specifications; ### 15. considers that divergent regulatory outcomes may also affect the standardisation process more generally , owing to differing terminology , the lack of standard clauses for standardisation requests and difficulties in ex ante oversight; underlines that this problem is even more significant where standards are relevant for more than one regulatory act; believes that a common approach or formalised agreement between the commission and the co-legislators could be explored in order to streamline the preparation of standards and detailed conditions for common specifications;


### 17. emphasises that prioritising standardisation matters in cooperation with third countries in bi- , multi- and pluri-lateral settings is also important to ensure that like-minded , inclusive approaches towards standardisation can prevail at international level; encourages , in this regard , the commission and the cso to develop key performance indicators to monitor commitments on standardisation between the union and third countries; ### 17. emphasises that prioritising standardisation matters in cooperation with third countries in bi- , multi- and pluri-lateral settings is also important to ensure that like-minded , inclusive approaches towards standardisation can prevail at international level and foster cooperation between likeminded democratic partners; encourages , in this regard , the commission and the cso to develop key performance indicators to monitor commitments on standardisation between the union and third countries in consultation with the european standardisation organisations;


### [...] ### deleted


### take all the necessary measures to ensure that the technologies and indicators , as well as the processing of personal data and other data in connection thereto , are used for the sole purpose of detecting the dissemination of known or new child sexual abuse material or the solicitation of children , as applicable , insofar as strictly necessary to execute the detection orders addressed to them; ### take all the necessary and proportionate measures to ensure that the technologies and indicators , as well as the processing of personal data and other data in connection thereto , are used for the sole purpose of detecting the dissemination of known or new child sexual abuse material or the solicitation of children , as applicable , insofar as strictly limited to what is necessary to execute the detection orders addressed to them;


### article 11 ### deleted


### 1. where a provider of hosting services or a provider of interpersonal communications services becomes aware in any manner other than through a removal order issued in accordance with this regulation of any information indicating potential online child sexual abuse on its services , it shall promptly submit a report thereon to the eu centre in accordance with article 13. it shall do so through the system established in accordance with article 39(2). ### 1. where a provider of hosting services or a provider of interpersonal communications services becomes aware in any manner other than through a removal order issued in accordance with this regulation or by the report submitted by the recognised hotline , which results in its voluntary and timely removal , of any information indicating potential online child sexual abuse on its services , it shall promptly submit a report thereon to the eu centre in accordance with article 13. it shall do so through the system established in accordance with article 39(2).


### 3. the provider shall establish and operate an accessible , age-appropriate and user-friendly mechanism that allows users to flag to the provider potential online child sexual abuse on the service. ### 3. the provider shall establish and operate an accessible , age-appropriate and user-friendly mechanism that allows users to easily flag to the provider potential online child sexual abuse on the service.


### 1. the coordinating authority of establishment shall have the power to request the competent judicial authority of the member state that designated it or another independent administrative authority of that member state to issue a removal order requiring a provider of hosting services under the jurisdiction of the member state that designated that coordinating authority to remove or disable access in all member states of one or more specific items of material that , after a diligent assessment , the coordinating authority or the courts or other independent administrative authorities referred to in article 36(1) identified as constituting child sexual abuse material. ### 1. removal orders shall be issued by judicial authorities in line with article 9 on orders to act against illegal content of the regulation (eu) 2022/2065.


### 2. the provider shall execute the removal order as soon as possible and in any event within 24 hours of receipt thereof. ### deleted


### the name of the provider and , where applicable , of its legal representative; ### the name of the provider and , where applicable , of its legal representative , without prejudice to the issuance of removal orders where the legal name of the provider is not readily ascertained;


### providers of relevant information society services shall not be liable for child sexual abuse offences solely because they carry out , in good faith , the necessary activities to comply with the requirements of this regulation , in particular activities aimed at detecting , identifying , removing , disabling of access to , blocking or reporting online child sexual abuse in accordance with those requirements. ### providers of relevant information society services , hotlines and organisations acting solely in the public interest against child sexual abuse shall not be liable for child sexual abuse offences solely because they carry out , in good faith , the necessary activities to comply with the requirements of this regulation , in particular activities aimed at detecting , identifying , removing , disabling of access to , blocking or reporting online child sexual abuse in accordance with those requirements.


### 1. providers of hosting services shall provide reasonable assistance , on request , to persons residing in the union that seek to have one or more specific items of known child sexual abuse material depicting them removed or to have access thereto disabled by the provider. ### 1. providers of hosting services shall provide reasonable assistance , on request , to persons residing in the union that seek to have one or more specific items of known child sexual abuse material depicting them removed or to have access thereto disabled by the provider complemented in a timely matter and , if requested and appropriate , also included in the list of indicators used to prevent the further dissemination of these items.


### 1. by [five years after the entry into force of this regulation] , and every five years thereafter , the commission shall evaluate this regulation and submit a report on its application to the european parliament and the council. ### 1. by [five years after the entry into force of this regulation] , and every five years thereafter , the commission shall evaluate this regulation and submit a report on its application to the european parliament and the council. this report shall address in particular the possible use of new technologies for a safe and trusted processing of personal and other data and for the purpose of combating online child sexual abuse and in particular to detect , report and remove online child sexual abuse. the report shall be accompanied , where appropriate , by a legislative proposal.


### (26) the measures taken by providers of hosting services and providers of publicly available interpersonal communications services to execute detection orders addressed to them should remain strictly limited to what is specified in this regulation and in the detection orders issued in accordance with this regulation. in order to ensure the effectiveness of those measures , allow for tailored solutions , remain technologically neutral , and avoid circumvention of the detection obligations , those measures should be taken regardless of the technologies used by the providers concerned in connection to the provision of their services. therefore , this regulation leaves to the provider concerned the choice of the technologies to be operated to comply effectively with detection orders and should not be understood as incentivising or disincentivising the use of any given technology , provided that the technologies and accompanying measures meet the requirements of this regulation. that includes the use of end-to-end encryption technology , which is an important tool to guarantee the security and confidentiality of the communications of users , including those of children. when executing the detection order , providers should take all available safeguard measures to ensure that the technologies employed by them cannot be used by them or their employees for purposes other than compliance with this regulation , nor by third parties , and thus to avoid undermining the security and confidentiality of the communications of users. ### (26) the measures taken by providers of hosting services and providers of publicly available interpersonal communications services to execute detection orders addressed to them should remain strictly limited to what is specified in this regulation and in the detection orders issued in accordance with this regulation. in order to ensure the effectiveness of those measures , allow for tailored solutions , remain technologically neutral , and avoid circumvention of the detection obligations , those measures should be taken regardless of the technologies used by the providers concerned in connection to the provision of their services. therefore , this regulation leaves to the provider concerned the choice of the technologies to be operated to comply effectively with detection orders and should not be understood as incentivising or disincentivising the use of any given technology , provided that the technologies and accompanying measures meet the requirements of this regulation. that includes the use of end-to-end encryption technology , which is an important tool to guarantee the security and confidentiality of the communications of users , notably those of children. any prohibition of encryption could potentially be abused by malicious third parties. the issuance of a detection order should therefore not lead a provider to prohibit encryption. in full accordance and respect of encryption , this regulation encourages the innovation and constant improvement of technology detecting , reporting , and removing of csam in all digital spaces that are misused for the purpose of dissemination of such material. when executing the detection order , providers should take all available safeguard measures to ensure that the technologies employed by them cannot be used by them or their employees for purposes other than compliance with this regulation , nor by third parties , and thus to avoid undermining the security and confidentiality of the communications of users.


### (49) in order to verify that the rules of this regulation , in particular those on mitigation measures and on the execution of detection orders , removal orders or blocking orders that it issued , are effectively complied in practice , each coordinating authority should be able to carry out searches , using the relevant indicators provided by the eu centre , to detect the dissemination of known or new child sexual abuse material through publicly available material in the hosting services of the providers concerned. ### (49) in order to verify that the rules of this regulation , in particular those on mitigation measures and on the execution of detection orders , removal orders or blocking orders that it issued , are effectively complied in practice , each coordinating authority should be able to carry out searches , using the relevant indicators provided by the eu centre , and reacting timely to the evolving trends of child sexual abuse material dissemination and monetisation , to detect the dissemination of known or new child sexual abuse material through publicly available material in the hosting services of the providers concerned.


### (50) with a view to ensuring that providers of hosting services are aware of the misuse made of their services and to afford them an opportunity to take expeditious action to remove or disable access on a voluntary basis , coordinating authorities of establishment should be able to notify those providers of the presence of known child sexual abuse material on their services and requesting removal or disabling of access thereof , for the providers’ voluntary consideration. such notifying activities should be clearly distinguished from the coordinating authorities’ powers under this regulation to request the issuance of removal orders , which impose on the provider concerned a binding legal obligation to remove or disable access to the material in question within a set time period. ### (50) with a view to ensuring that providers of hosting services are aware of the misuse made of their services and to afford them an opportunity to take expeditious action to remove or disable access on a voluntary basis , coordinating authorities of establishment or organisations acting in the public interest against child sexual abuse , such as hotlines , should be able to notify those providers of the presence of known child sexual abuse material on their services and requesting removal or disabling of access thereof , for the providers’ voluntary consideration. such notifying activities should be clearly distinguished from the coordinating authorities’ powers under this regulation to request the issuance of removal orders , which impose on the provider concerned a binding legal obligation to remove or disable access to the material in question within a set time period.


### (56) with a view to ensuring that the indicators generated by the eu centre for the purpose of detection are as complete as possible , the submission of relevant material and transcripts should be done proactively by the coordinating authorities. however , the eu centre should also be allowed to bring certain material or conversations to the attention of the coordinating authorities for those purposes. ### (56) with a view to ensuring that the indicators generated by the eu centre for the purpose of detection are as complete as possible , the submission of relevant material and transcripts should be done proactively by the coordinating authorities. however , the eu centre should also be allowed to bring certain material or conversations to the attention of the coordinating authorities for those purposes and receive reports concerning the trends in the dissemination and monetisation of child sexual abuse material from relevant organisations acting in the public interest against child sexual abuse and other stakeholders.


### (70) longstanding union support for both inhope and its member hotlines recognises that hotlines are in the frontline in the fight against online child sexual abuse. the eu centre should leverage the network of hotlines and encourage that they work together effectively with the coordinating authorities , providers of relevant information society services and law enforcement authorities of the member states. the hotlines’ expertise and experience is an invaluable source of information on the early identification of common threats and solutions , as well as on regional and national differences across the union. ### (70) longstanding union support for both inhope and its member hotlines recognises that hotlines and organisations which act in the public interest against child sexual abuse and which proactively search for child sexual abuse material or which do research and gather information on the trends in the dissemination and monetisation of child sexual abuse material , are in the frontline in the fight against online child sexual abuse. the eu centre should leverage the network of hotlines and organisations and encourage that they work together effectively with the coordinating authorities , providers of relevant information society services and law enforcement authorities of the member states. the hotlines’ expertise and experience is an invaluable source of information on the early identification of common threats and solutions , as well as on regional and national differences across the union.


### — functionalities enabling age verification; ### — functionalities enabling protection of children and preventing online child sexual abuse;


### the costs incurred by the eu centre for the performance of such an analysis shall be borne by the requesting provider. however , the eu centre shall bear those costs where the provider is a micro , small or medium-sized enterprise , provided the request is reasonably necessary to support the risk assessment. ### the costs incurred by the eu centre for the performance of such an analysis shall be borne by the requesting provider. however , the eu centre shall bear those costs where the provider is a micro , small or medium-sized enterprise , provided the request is reasonably necessary to support the risk assessment. the requests shall not be seen as either administrative or economical burden for these enterprises.


### the commission shall be empowered to adopt delegated acts in accordance with article 86 in order to supplement this regulation with the necessary detailed rules on the determination and charging of those costs and the application of the exemption for micro , small and medium-sized enterprises. ### the commission shall be empowered to adopt delegated acts as soon as possible in accordance with article 86 in order to supplement this regulation with the necessary detailed rules on the determination and charging of those costs and the application of the exemption for micro , small and medium-sized enterprises.


### 1. providers of hosting services and providers of interpersonal communications services shall take reasonable mitigation measures , tailored to the risk identified pursuant to article 3 , to minimise that risk. such measures shall include some or all of the following: ### 1. providers of hosting services and providers of interpersonal communications services shall take reasonable mitigation measures , tailored to the risk identified pursuant to article 3 , to minimise that risk. such measures shall include , but need not to be limited to , some or all of the following:


### initiating or adjusting cooperation , in accordance with competition law , with other providers of hosting services or providers of interpersonal communication services , public authorities , civil society organisations or , where applicable , entities awarded the status of trusted flaggers in accordance with article 19 of regulation (eu) …/… [on a single market for digital services (digital services act) and amending directive 2000/31/ec] . ### initiating or adjusting cooperation , in accordance with competition law , with other providers of hosting services or providers of interpersonal communication services , public authorities , civil society organisations , hotlines or , where applicable , entities awarded the status of trusted flaggers in accordance with article 19 of regulation (eu) …/… [on a single market for digital services (digital services act) and amending directive 2000/31/ec] .


### 3. providers of interpersonal communications services that have identified , pursuant to the risk assessment conducted or updated in accordance with article 3 , a risk of use of their services for the purpose of the solicitation of children , shall take the necessary age verification and age assessment measures to reliably identify child users on their services , enabling them to take the mitigation measures. ### deleted


### article 6 ### deleted


### [...] ### deleted


### the coordinating authority of establishment shall , before requesting the issuance of a detection order , carry out the investigations and assessments necessary to determine whether the conditions of paragraph 4 have been met. ### the coordinating authority of establishment shall , before requesting the issuance of a detection order , carry out the investigations and assessments necessary to determine whether the conditions of paragraph 4 have been met. detection orders issued by the coordinating authorities shall serve as a measure of last resort , only enacted when all mitigating measures , including voluntary ones , have proven unsuccessful.


### the competent judicial authority or independent administrative authority shall specify in the detection order the period during which it applies , indicating the start date and the end date. ### the competent judicial authority or independent administrative authority shall specify in the detection order the period during which it applies , indicating the start date and the end date , within which the providers of hosting services and providers of interpersonal communications services shall prove that their service is no longer used for child sexual abuse.


### the name of the provider and , where applicable , its legal representative; ### the name of the provider and , where applicable , its legal representative , without prejudice to the issuance of detection orders where the legal name of the provider is not readily ascertained;


### (67) given its central position resulting from the performance of its primary tasks under this regulation and the information and expertise it can gather in connection thereto , the eu centre should also contribute to the achievement of the objectives of this regulation by serving as a hub for knowledge , expertise and research on matters related to the prevention and combating of online child sexual abuse. in this connection , the eu centre should cooperate with relevant stakeholders from both within and outside the union and allow member states to benefit from the knowledge and expertise gathered , including best practices and lessons learned. ### (67) given its central position resulting from the performance of its primary tasks under this regulation and the information and expertise it can gather in connection thereto , the eu centre should also contribute to the achievement of the objectives of this regulation by serving as a hub for knowledge , expertise and research on matters related to the prevention and combating of online child sexual abuse , including on the successful initiatives and good practices on the proactive search for online child sexual material , trends in its creation and monetisation , as well as the voluntary prevention , detection and mitigation of online child sexual abuse. in this connection , the eu centre should cooperate on a regular basis with relevant stakeholders from both within and outside the union , including law enforcement authorities with the relevant expertise , educators , civil society , service providers and industry representatives , and allow member states to benefit from the knowledge and expertise gathered , including best practices and lessons learned.


### 5. where exceptional circumstances so require , the executive director may decide to locate one or more staff in another member state for the purpose of carrying out the eu centre’s tasks in an a more efficient , effective and coherent manner. before deciding to establish a local office , the executive director shall obtain the prior consent of the commission , the management board and the member state concerned. the decision shall be based on an appropriate cost-benefit analysis that demonstrates in particular the added value of such decision and specify the scope of the activities to be carried out at the local office in a manner that avoids unnecessary costs and duplication of administrative functions of the eu centre. a headquarters agreement with the member state(s) concerned may be concluded. ### 5. where exceptional circumstances so require , the executive director may decide to locate one or more staff in another member state for the purpose of carrying out the eu centre’s tasks in an a more efficient , effective and coherent manner according to principles of good governance. before deciding to establish a local office , the executive director shall obtain the prior consent of the commission , the management board and the member state concerned. the decision shall be based on an appropriate cost-benefit analysis that demonstrates in particular the added value of such decision and specify the scope of the activities to be carried out at the local office in a manner that avoids unnecessary costs and duplication of administrative functions of the eu centre. a headquarters agreement with the member state(s) concerned may be concluded.


### 4. the eu centre’s expenditure shall include staff remuneration , administrative and infrastructure expenses , and operating costs. ### 4. the eu centre’s expenditure shall include staff remuneration , administrative and infrastructure expenses , and operating costs while following the appropriate eu budgetary rules.