### 1. parent undertakings of a large group shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position. ### 1. parent undertakings of a large group shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information broken down by country necessary to understand how sustainability matters affect the group's development , performance and position.


### (iii) the plans of the group to ensure that the group’s business model and strategy compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement; ### (iii) the plans of the group to ensure that the group’s business model and strategy compatible with the just transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement;


### (iv) how the group’s business model and strategy take account of the interests of the group’s stakeholders and of the impacts of the group on sustainability matters; ### (iv) how the group’s business model and strategy ensure decent work , fair wages , company training and further education of workers , information and consultation of workers and safeguard the rights of trade unions and of the interests of the group’s stakeholders and of the impacts of the group on sustainability matters along the entire supply and value chain;


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process implemented with regard to sustainability matters , notably regarding human rights and environmental due diligence along the entire supply and value chain , including gender equality and workers’ rights as well as plans to eradicate child labour and forced labour;


### member states may allow information relating to impending developments or matters in the course of negotiation to be omitted in exceptional cases where , in the duly justified opinion of the members of the administrative , management and supervisory bodies , acting within the competences assigned to them by national law and having collective responsibility for that opinion , the disclosure of such information would be seriously prejudicial to the commercial position of the group , provided that such omission does not prevent a fair and balanced under standing of the group's development , performance , position and impact of its activity. ### deleted


### 7. a parent undertaking which is also a subsidiary undertaking shall be exempted from the obligation set out in paragraphs 1 to 4 if that exempted parent undertaking and its subsidiaries are included in the consolidated management report of another undertaking , drawn up in accordance with article 29 and this article. a parent undertaking that is a subsidiary undertaking from a parent undertaking that is established in a third country shall also be exempted from the obligations set out in paragraphs 1 to 4 where that undertaking and its subsidiary undertakings are included in the consolidated management report of that parent undertaking and where the consolidated management report is drawn up in a manner that may be considered equivalent , in accordance with the relevant implementing measures adopted pursuant to article 23(4)(i) of directive 2004/109/ec , to the manner required by the sustainability reporting standards referred to in article 19b of this directive. ### deleted


### (iii) the plans of the group to ensure that the group’s business model and strategy compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement; ### (iii) the plans of the group including a transition pathway , comprising of short-term and medium-term absolute emission reduction targets for 2025 and 2030 , reviewed every five years up to 2050 , to achieve carbon neutrality by 2050 at the latest , and implementing actions and related financial and investment plans , to ensure that the group’s business model and strategy compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement with no or limited overshoot and recourse to compensation technologies , and pursuant to the latest recommendations of the ipcc; and the degree of exposure of the undertaking to sectors listed in divisions 05 , 06 , 09 , 19 , 35 , 46.71 of annex i to regulation (ec) no 1893/2006 insofar as they relate to coal , oil , gas-related activities;


### a description of the targets related to sustainability matters set by the group and of the progress of the undertaking towards achieving them; ### a description of the time-bound short-term , mid-term and long-term targets set by the group with respect to the risks , opportunities , severe impacts and timely alignment with relevant public goals , whether such targets are science-based alongside corresponding evidence , implementing actions and related financial and investment plans and of the progress of the undertaking towards achieving them;


### indicators relevant to the relevant to the disclosures referred to in points (a) to (f). ### indicators relevant to the relevant to the disclosures referred to in points (a) to (f) , including key performance indicators set out in the delegated act supplementing article 8 of the regulation (eu) 2020/852;


### the information referred to in paragraphs 1 and 2 shall include information about the group’s value chain , including its own operations , its products and services , its business relationships and its supply chain , where appropriate. ### the information referred to in paragraphs 1 and 2 shall include information about the group’s value chain , including its own operations , its products and services , its business relationships and its supply chain , where necessary for understanding of the undertaking’s impacts or risks.


### how the group’s strategy has been implemented with regard to sustainability matters; ### how the group’s strategy has been implemented with regard to sustainability matters and associated targets;


### a description of the targets related to sustainability matters set by the group and of the progress of the undertaking towards achieving them; ### a description of the time-bound targets and progress previously made and envisaged to be made towards achieving those targets , and corresponding evidence related to sustainability matters set by the group , any potential or actual adverse impacts and of the progress of the undertaking towards achieving them;


### a description of the role of the administrative , management and supervisory bodies with regard to sustainability matters; ### a description of the role of the administrative , management and supervisory bodies with regard to sustainability matters , as well as their composition and expertise , the stakeholders they consult with on sustainability matters , their decision-making processes and whether incentives linked to sustainability matters are offered to members of these bodies;


### a description of the group’s policies in relation to sustainability matters; ### a description of the group’s policies in relation to sustainability matters , including in relation to potential and actual adverse impacts;


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process and strategy , pursuant to applicable eu and national legislation , and the un guiding principles for business and human rights and the oecd due diligence guidance for responsible business conduct , implemented with regard to sustainability matters;


### (ii) the principal actual or potential adverse impacts connected with the group’s value chain , including its own operations , its products and services , its business relationships and its supply chain; ### (ii) the mapping process of actual or potential adverse impacts connected with the group’s value chain , including its own operations , its products and services , its business relationships , its subsidiaries and its supply chain , including the persons adversely impacted , and how these have been identified and prioritised;


### (iii) any actions taken , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts; ### (iii) all actions taken , and the result of such actions , to prevent , mitigate , cease or remediate actual or potential adverse impacts , and the evaluation of the effectiveness of actions taken , as well as alert mechanisms established;


### the information referred to in paragraphs 1 and 2 shall include information about the group’s value chain , including its own operations , its products and services , its business relationships and its supply chain , where appropriate. ### the information referred to in paragraphs 1 and 2 shall include information about the group’s value chain , including its own operations , its assets , its products and services , its business relationships and its supply chain , where appropriate.


### 4. parent undertakings shall report the information referred to in paragraphs 1 to 3 in accordance with the sustainability reporting standards referred to in article 19b. ### 4. parent undertakings shall report the information referred to in paragraphs 1 to 3 in accordance with the sustainability reporting standards referred to in article 19b and they shall provide separate information per entity.


### 7. a parent undertaking which is also a subsidiary undertaking shall be exempted from the obligation set out in paragraphs 1 to 4 if that exempted parent undertaking and its subsidiaries are included in the consolidated management report of another undertaking , drawn up in accordance with article 29 and this article. a parent undertaking that is a subsidiary undertaking from a parent undertaking that is established in a third country shall also be exempted from the obligations set out in paragraphs 1 to 4 where that undertaking and its subsidiary undertakings are included in the consolidated management report of that parent undertaking and where the consolidated management report is drawn up in a manner that may be considered equivalent , in accordance with the relevant implementing measures adopted pursuant to article 23(4)(i) of directive 2004/109/ec , to the manner required by the sustainability reporting standards referred to in article 19b of this directive. ### 7. deleted


### the consolidated management report of the parent undertaking referred to in subparagraph 1 shall be published in accordance with article 30 , in the manner prescribed by the law of the member state by which the parent undertaking that is exempted from the obligations set out in paragraphs 1 to 4 is governed. ### the consolidated management report of a parent undertaking shall be published in accordance with article 30 , in the manner prescribed by the law of the member state by which the parent undertaking which meets the requirements referred to in paragraphs 1 to 4 is governed.


### the member state by which the parent undertaking that is exempted from the obligations set out in paragraphs 1 to 4 is governed may require that the consolidated management report referred to in in the first subparagraph of this paragraph is published in its official language or in a language customary in the sphere of international finance , and that any necessary translation into those languages is certified. ### the member state by which the parent undertaking which meets the requirements referred to in paragraphs 1 to 4 is governed may require that consolidated management reports are published in its official language or in a language customary in the sphere of international finance , and that any necessary translation into those languages is certified.


### the consolidated management report of a parent undertaking that is exempted from the obligations set out in paragraphs 1 to 4 shall contain all of the following information: ### the consolidated management report of a parent undertaking which meets the requirements referred to in paragraphs 1 to 4 shall contain all of the following information:


### the name and registered office of the parent undertaking that reports information at group level in accordance with articles 29 and this article , or in a manner that may be considered equivalent , in accordance with the relevant implementing measures adopted pursuant to article 23(4)(i) of directive 2004/109/ec , to the manner required by the sustainability standards adopted pursuant to article 19b; ### the name and registered office of the parent undertaking that reports information at group level for each entity which shall also be named in accordance with articles 29 and this article;


### the fact that the undertaking is exempted from the obligations set out in paragraphs 1 to 4 of this article.; ### deleted


### 1. parent undertakings of a large group shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position. ### 1. parent undertakings of a large group shall include in the consolidated management report information necessary to fully understand the group's and its subsidiaries’ and business relationships impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position. the report shall explain the impact of each subsidiary on sustainability factors.


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process implemented with regard to sustainability matters in line with , the eu directive on sustainable corporate governance , national legislation , and the un guiding principles for business and human rights and the oecd due diligence guidance for responsible business conduct;


### (aa) where applicable , express an opinion based on a limited assurance engagement as regards the compliance of the sustainability reporting with the requirements of this directive , including the compliance of the sustainability reporting with the reporting standards adopted pursuant to article 19b , the process carried out by the undertaking to identify the information reported pursuant to those reporting standards , and the compliance with the requirement to mark-up sustainability reporting in accordance with article 19d , and as regards the compliance with the reporting requirements of article 8 of regulation (eu) 2020/852.; ### (aa) where applicable , express an opinion based on a reasonable assurance engagement as regards the compliance of the sustainability reporting with the requirements of this directive , including the compliance of the sustainability reporting with the reporting standards adopted pursuant to article 19b , the process carried out by the undertaking to identify the information reported pursuant to those reporting standards , and the compliance with the requirement to mark-up sustainability reporting in accordance with article 19d , and as regards the compliance with the reporting requirements of article 8 of regulation (eu) 2020/852.;


### 3a. when adopting delegated acts pursuant to articles 19b and 19c , the commission shall take into consideration technical advice from efrag , provided such advice has been developed with proper due process , public oversight and transparency and with the expertise of relevant stakeholders , and is accompanied by cost-benefit analyses that include analyses of the impacts of the technical advice on sustainability matters. ### 3a. when adopting delegated acts pursuant to articles 19b and 19c , the commission shall take into consideration technical advice from efrag , provided such advice has been developed with proper due process , public oversight and transparency and with the expertise of relevant stakeholders , notably social partners , consumer protection organisations and ngos , and is accompanied by cost-benefit analyses that include analyses of the impacts of the technical advice on sustainability matters.


### 3a. when adopting delegated acts pursuant to articles 19b and 19c , the commission shall take into consideration technical advice from efrag , provided such advice has been developed with proper due process , public oversight and transparency and with the expertise of relevant stakeholders , and is accompanied by cost-benefit analyses that include analyses of the impacts of the technical advice on sustainability matters. ### 3a. when adopting delegated acts pursuant to articles 19b and 19c , the commission shall take into consideration technical advice from efrag , provided such advice has been developed by an independent technical advisory body composed of a balanced representation of preparers , investors , civil society organisations and trade unions , with expertise on all matters outlined in articles 19a and 19b , with proper due process , public funding , public oversight and transparency and with the expertise of relevant stakeholders , and is accompanied by cost-benefit analyses that include analyses of the impacts of the technical advice on sustainability matters. participation in the independent technical advisory body should not be conditional on any financial contribution.


### the level of cooperation of the natural person or legal entity responsible with the competent authority; ### the level of cooperation of the natural person or legal entity responsible with the competent authority and with stakeholders;


### after consulting the european environment agency and the european union agency for fundamental rights , esma shall issue guidelines in accordance with article 16 of regulation 1095/2010 on the supervision of sustainability reporting by national competent authorities. ### after consulting the european environment agency and the european union agency for fundamental rights , the european institute for gender equality and the social partners , esma shall issue guidelines in accordance with article 16 of regulation 1095/2010 on the supervision of sustainability reporting by national competent authorities.


### 2. the commission shall be empowered to adopt , by means of delegated acts in accordance with article 48a , the assurance standards referred to in paragraph 1 in order to set out the procedures that the auditor shall perform in order to draw its conclusions on the assurance of sustainability reporting , including engagement planning , risk consideration and response to risks and type of conclusions to be included in the audit report. ### 2. the commission shall be empowered to adopt , by means of delegated acts in accordance with article 48a , limited assurance standards before 1 october 2023 , and reasonable assurance standards before 1 january 2026 , in order to set out the procedures that the auditor shall perform in order to draw its conclusions on the assurance of sustainability reporting , including engagement planning , risk consideration and response to risks and type of conclusions to be included in the audit report.


### (19) directive 2004/109/ec of the european parliament and of the council49 applies to all undertakings with securities listed on regulated markets. in order to ensure that all undertakings with securities listed on regulated markets , including third country issuers , fall under the same sustainability reporting requirements , directive 2004/109/ec should contain the necessary cross-references to any requirement on sustainability reporting in the annual financial report. ### (19) directive 2004/109/ec of the european parliament and of the council49 applies to all undertakings with securities listed on regulated and smes growth markets. in order to ensure that all undertakings with securities listed on regulated markets , including third country issuers , fall under the same sustainability reporting requirements , directive 2004/109/ec should contain the necessary cross-references to any requirement on sustainability reporting in the annual financial report.


### (46) undertakings in the same sector are often exposed to similar sustainability-related risks , and they often have similar impacts on society and the environment. comparisons between undertakings in the same sector are especially valuable to investors and other users of sustainability information. sustainability reporting standards adopted by the commission should therefore specify both information that undertakings in all sectors should disclose and information that undertakings should disclose depending on their sector of activity. standards should also take account of the difficulties that undertakings may encounter in gathering information from actors throughout their value chain , especially from sme suppliers and from suppliers in emerging markets and economies. ### (46) undertakings in the same sector are often exposed to similar sustainability-related risks , and they often have similar impacts on society and the environment. comparisons between undertakings in the same sector are especially valuable to investors and other users of sustainability information. sustainability reporting standards adopted by the commission should therefore specify both information that undertakings in all sectors should disclose and information that undertakings should disclose depending on their sector of activity. standards applicable to undertakings active in the extractive industry and the logging of forests should be consistent with reporting requirements of chapter 10 of directive 2013/34/eu and require sustainability disclosures to be made at project-level. project-level disclosures are crucial for investors who need consistent and detailed information on projects to fully understand the impact of climate-related financial risk on the economic producibility of reserves in the fossil fuels sector and also to understand the resilience of supply of critical transition minerals. project-level disclosure is equally crucial for communities affected by the extractive and logging industries and civil society organisations of resource-rich countries , to understand and scrutinize the benefits of the oil , gas , mining and logging industries and their environmental , social and governance impacts. standards should also take account of the difficulties that undertakings may encounter in gathering information from actors throughout their value chain , especially from sme suppliers and from suppliers in emerging markets and economies.


### (4) the following articles 19b , 19c and 19d are inserted: ### (4) the following articles 19b , 19 c a , 19c and 19d are inserted:


### (22) article 23 of directive 2013/34/eu exempts parent undertakings from the obligation to prepare consolidated financial statements and a consolidated management report where those undertakings are subsidiaries of another parent undertaking that complies with that obligation. it should be specified , however , that the exemption regime for consolidated financial statements and consolidated management reports operates independently from the exemption regime for consolidated sustainability reporting. an undertaking can therefore be exempted from consolidated financial reporting obligations but not exempted from consolidated sustainability reporting obligations where its ultimate parent prepares consolidated financial statements and consolidated management reports in accordance with union law , or in accordance with equivalent requirements if the undertaking is established in a third country , but does not prepare consolidated sustainability reporting in accordance with eu law , or in accordance with equivalent requirements if the undertaking is established in a third country. ### deleted


### (45) the reporting standards should promote a more integrated view of all the information published by undertakings in the management report to provide users of that information with a better understanding of the development , performance , position and impact of the undertaking. those standards should distinguish as necessary between information that undertakings should disclose when reporting at individual level and the information that undertakings should disclose when reporting at consolidated level. those standards should also contain guidance for undertakings on the process carried out to identify the sustainability information that should be included in the management report. ### (45) the reporting standards should promote a more integrated view of all the information published by undertakings in the management report to provide users of that information with a better understanding of the development , performance , position and impact of the undertaking. those standards should distinguish as necessary between information that undertakings should disclose when reporting at individual level and the additional information that undertakings should disclose when reporting at consolidated level. those standards should also contain guidance for undertakings on the process carried out to identify the sustainability information that should be included in the management report.


### (54) statutory auditors or audit firms already verify the financial statements and the management report. the assurance of sustainability reporting by the statutory auditors or audit firms would help to ensure the connectivity between , and consistency of , financial and sustainability information , which is particularly important for by users of sustainability information. however , there is a risk of further concentration of the audit market , which could risk the independence of auditors and increase audit or assurance fees. it is therefore desirable to offer undertakings a broader choice of independent assurance service providers for the assurance of sustainably reporting. member states should therefore be allowed to accredit independent assurance services providers in accordance with regulation (ec) no 765/2008 of the european parliament and of the council66 to provide an opinion on sustainability reporting , which should be published together with the management report. member states should set out requirements that ensure consistent outcomes in the assurance of sustainability reporting carried out by different assurance service providers. therefore , all independent assurance services providers should be subject to requirements that are consistent with those set out in directive 2006/43/ec as regards the assurance of sustainability reporting. this will also guarantee a level playing field among all persons and firms allowed by member states to provide the opinion on the assurance of sustainability reporting , including statutory auditors. if an undertaking seeks the opinion of an accredited independent assurance services provider other than the statutory auditor on its sustainability reporting , it should not in addition need to request this opinion from the statutory auditor. ### (54) statutory auditors or audit firms already verify the financial statements and the management report. the assurance of sustainability reporting by the statutory auditors or audit firms would help to ensure the connectivity between , and consistency of , financial and sustainability information , which is particularly important for by users of sustainability information. however , there is a risk of further concentration of the audit market , which could risk the independence of auditors and increase audit or assurance fees. it is therefore desirable to offer undertakings a broader choice of independent assurance service providers for the assurance of sustainably reporting. member states should therefore be allowed to accredit independent assurance services providers in accordance with regulation (ec) no 765/2008 of the european parliament and of the council66 to provide an opinion on sustainability reporting , which should be published together with the management report. member states should set out requirements that ensure consistent outcomes in the assurance of sustainability reporting carried out by different assurance service providers. therefore , all independent assurance services providers should be subject to requirements that are consistent with those set out in directive 2006/43/ec as regards the assurance of sustainability reporting. this will also guarantee a level playing field among all persons and firms allowed by member states to provide the opinion on the assurance of sustainability reporting , including statutory auditors. if an undertaking seeks the opinion of an accredited independent assurance services provider other than the statutory auditor on its sustainability reporting , it should not in addition need to request this opinion from the statutory auditor. likewise , an undertaking should not seek the opinion of the same audit firm or equivalent for both the fulfilment of its due diligence obligations , and the assurance of sustainability disclosures as set out in this directive.


### (57) it should be ensured that the requirements imposed on auditors as regards their work on the statutory audit and the assurance of sustainability reporting are consistent. it should therefore be laid down that , where the opinion on sustainability reporting is given by the statutory auditor or audit firm carrying out the statutory audit of financial statements , the key audit partners are actively involved in conducting the assurance of sustainability reporting. when carrying out the assurance of sustainability reporting , statutory auditors should be required to devote sufficient time to the engagement and assign sufficient resources to enable them to carry out their duties appropriately. finally , the client account record should specify the fees charged for the assurance of sustainability reporting and the audit file should include information related to the assurance of sustainability reporting. ### (57) it should be ensured that the requirements imposed on auditors as regards their work on the statutory audit and the assurance of sustainability reporting are consistent. it should therefore be laid down that , where the opinion on sustainability reporting is given by the statutory auditor or audit firm carrying out the statutory audit of financial statements , the key audit partners are actively involved in conducting the assurance of sustainability reporting. when carrying out the assurance of sustainability reporting , statutory auditors should be required to devote sufficient time to the engagement and assign sufficient resources and expertise to enable them to carry out their duties appropriately. finally , the client account record should specify the fees charged for the assurance of sustainability reporting and the audit file should include information related to the assurance of sustainability reporting.


### 1. member states shall ensure that undertakings publish within a reasonable period of time , which shall not exceed 12 months after the balance sheet date , the duly approved annual financial statements and the management report in the format prescribed by article 19d of this directive where applicable , together with the opinions and statement submitted by the statutory auditor or audit firm referred to in article 34 of this directive , as laid down by the laws of each member state in accordance with chapter 3 of directive (eu) 2017/1132 of the european parliament and of the council*16.’ ### 1. member states shall ensure that undertakings publish online within a reasonable period of time , which shall not exceed 12 months after the balance sheet date , the duly approved annual financial statements and the management report in the format prescribed by article 19d of this directive where applicable , together with the opinions and statement submitted by the statutory auditor or audit firm referred to in article 34 of this directive , as laid down by the laws of each member state in accordance with chapter 3 of directive (eu) 2017/1132 of the european parliament and of the council*16.’


### member states may , however , exempt undertakings from the obligation to publish the management report where a copy of all or part of any such report can be easily obtained upon request at a price not exceeding its administrative cost.’ ### deleted


### the exemption laid down in the third subparagraph shall not apply to undertakings subject to articles 19a and 29a.’; ### deleted


### the audit report shall be signed and dated by the statutory auditor. where an audit firm carries out the statutory audit and , where applicable , the assurance of sustainability reporting , the audit report shall bear the signature of at least the statutory auditor(s) carrying out the statutory audit and the assurance of sustainability reporting on behalf of the audit firm. where more than one statutory auditor or audit firm have been simultaneously engaged , the audit report shall be signed by all statutory auditors or at least by the statutory auditors carrying out the statutory audit and the assurance of sustainability reporting on behalf of every audit firm. in exceptional circumstances member states may provide that such signature(s) need not be disclosed to the public if such disclosure could lead to an imminent and significant threat to the personal security of any person.; ### the audit report shall be signed and dated by the statutory auditor. where an audit firm carries out the statutory audit and , where applicable , the assurance of sustainability reporting , the audit report shall bear the signature of at least the statutory auditor(s) carrying out the statutory audit and the assurance of sustainability reporting on behalf of the audit firm. where more than one statutory auditor or audit firm have been simultaneously engaged , the audit report shall be signed by all statutory auditors or at least by the statutory auditors carrying out the statutory audit and the assurance of sustainability reporting on behalf of every audit firm. in exceptional circumstances member states may provide that such signature(s) need not be disclosed to the public if such disclosure could lead to an imminent and significant threat to the personal security of any person. if an undertaking seeks the opinion of statutory auditors , audit firms or independent assurance services firms in their due diligence obligations , processes and strategy , the same entity will not be used to provide assurance of the undertaking's sustainability reporting and disclosures.;


### the audit report shall be signed and dated by the statutory auditor. where an audit firm carries out the statutory audit and , where applicable , the assurance of sustainability reporting , the audit report shall bear the signature of at least the statutory auditor(s) carrying out the statutory audit and the assurance of sustainability reporting on behalf of the audit firm. where more than one statutory auditor or audit firm have been simultaneously engaged , the audit report shall be signed by all statutory auditors or at least by the statutory auditors carrying out the statutory audit and the assurance of sustainability reporting on behalf of every audit firm. in exceptional circumstances member states may provide that such signature(s) need not be disclosed to the public if such disclosure could lead to an imminent and significant threat to the personal security of any person.; ### the audit report shall be signed and dated by the statutory auditor. where an audit firm carries out the statutory audit and , where applicable , the assurance of sustainability reporting , the audit report shall bear the signature of at least the statutory auditor(s) carrying out the statutory audit and the assurance of sustainability reporting on behalf of the audit firm. where more than one statutory auditor or audit firm have been simultaneously engaged , the audit report shall be signed by all statutory auditors or at least by the statutory auditors carrying out the statutory audit and the assurance of sustainability reporting on behalf of every audit firm. in exceptional circumstances member states may provide that such signature(s) need not be disclosed to the public if such disclosure could lead to an imminent and significant threat to the personal security of any person. if an undertaking works with statutory auditors , audit firms or independent assurance services firms in the design , implementation or assessment of their due diligence process , that undertaking should not in addition request assurance of sustainability reporting from the same entity.


### 1. stresses the valuable role played by union agencies in helping union institutions to implement policies , especially by carrying out specific technical , scientific and managerial tasks; appreciates the high quality work performed by the agencies working in the area of employment , social affairs and inclusion; ### 1. stresses the valuable role played by union agencies in helping union institutions to implement policies , especially by carrying out specific technical , scientific and managerial tasks; welcomes the importance and the high quality work performed by cedefop , eurofound , eu-osha , etf and ela , the agencies working in the area of employment , social affairs and inclusion; reiterates in this regard the need of ensuring adequate human and financial resources allowing them to continue implementing their work programmes with a very high activity completion rate; welcomes the european union agencies network (euan) endorsement of its second multiannual strategy (2021-2027) in 2020; stresses the importance and added value of each agency in their field of expertise and their autonomy;


### 3. recalls that the yearly exchange of views in the empl committees regarding the annual work programmes and the multiannual strategies of the agencies is instrumental in ensuring that the programmes and strategies are aligned to the actual political priorities , especially in the context of the implementation of the principles enshrined in the european pillar of social rights; ### 3. recalls that the yearly exchange of views in the empl committees regarding the annual work programmes and the multiannual strategies of the agencies is instrumental in ensuring that the programmes and strategies are aligned to the actual political priorities , especially in the context of the implementation of the principles enshrined in the european pillar of social rights and contribute to the success of the action plan on the implementation of the epsr;


### b. npos play a central role in democracy by exercising public oversight over political power , articulating aspirations present in society , carrying out advocacy , contributing to informed policy-making and fostering active citizenship; ### b. npos play a central role in democracy by exercising public oversight over political power , articulating aspirations present in society to policymakers , carrying out advocacy , contributing to informed policy-making and fostering active citizenship;


### c. whereas european democracy depends on civil society being able to function freely and across borders; ### c. whereas european democracy depends on civil society being able to function freely and across borders; whereas the existence of npos is essential in our free and participative democracies , as well as in defending the rights of minorities; whereas npos also function as schools of democracy contributing to the thriving of civil society , and to closing the gaps in services and economic activities;


### e. restrictions of the space in which they operate have been reported by npos throughout the union , related to the regulatory environment under which they operate , their finances and funding , their right to participation and to an unsafe environment with increasing attacks , including negative discourse stigmatising npos; ### e. restrictions of the space in which they operate have been reported by npos throughout the union , related to the regulatory environment under which they operate , their finances and funding , their right to participation and to an unsafe environment with increasing attacks , including negative discourse and strategic lawsuits against public participation (slapps) , which contribute to stigmatising npos to the point where they cease their critical work;


### j. whereas today many associations and npos play a full part in the economic life and in the development of the internal market , by engaging in some economic activity on a regular basis; ### j. whereas today many associations and npos play a full part in the economic life and in the development of the internal market , by engaging in some economic activity on a regular basis; whereas the volume of cross-border financial flows between npos has increased considerably in the last decade;


### 4. stresses that , in light of the growing number of threats which transcend national boundaries such as environmental damages , pandemics or the misuse of digital technologies , the potential of cross-border npo activities should be unlocked; emphasises that cross-border activities should both mean activities or cooperation carried out in more than one member state and activities furthering the union’s objectives or contributing to the promotion and safeguarding of its values; ### 4. stresses that , in light of the growing number of threats which transcend national boundaries such as environmental damages , pandemics , the misuse of digital technologies and the dismantling of the rule of law which is happening in several member states , the potential of cross-border npo activities should be unlocked; emphasises that cross-border activities should both mean activities or cooperation carried out in more than one member state and activities furthering the union’s objectives or contributing to the promotion and safeguarding of its values;


### 6. considers that npos cannot thrive at union level if the space in which they operate is being restricted in a number of member states; considers therefore that the setting of common minimum standards will also help to provide a minimum level of protection throughout the union and to spread best practices; ### 6. considers that npos cannot thrive at union level if the space in which they operate is being restricted in a number of member states; is aware that the framework for action currently available to independent civil society in some member states is seriously limited; considers therefore that the setting of common minimum standards will also help to provide a minimum level of protection throughout the union and to spread best practices;


### 10. calls for the creation of a european associations’ authority , tasked with ensuring the implementation of the statute for european associations and monitoring the transposition of minimum rules for npos as called for in this report; suggests that it could also be the focal point for npos that report violations of the minimum standards and rights conferred upon npos by union law; ### 10. calls for the creation of a european associations’ authority , tasked with ensuring the implementation of the statute for european associations and monitoring the transposition of minimum rules for npos as called for in this report; suggests that it could also be the focal point for npos that report violations of the minimum standards and rights conferred upon npos by union law; underlines the importance of transparency for this authority and its modus operandi;


### 12. considers that , due to their particular character , the proposed legal instruments are to refrain from regulating political parties; furthermore , recalls that the union respects the status of churches , religious organisations or communities , as well as philosophical or non-confessional organisations under national law; underlines that this does not preclude organisations that only draw from a religious , philosophical or non-confessional inspiration such as faith-based charitable npos , from benefitting from the scope of these proposals; points out that trade unions in several member states are given a special beneficial status and should therefore be given a choice to make use of the provisions under the proposed instruments; ### 12. considers that , due to their particular character , the proposed legal instruments are to refrain from regulating political parties; furthermore , recalls that the union respects the status of churches , religious organisations or communities , as well as philosophical or non-confessional organisations under national law; underlines that this does not preclude organisations that only draw from a religious , philosophical or non-confessional inspiration such as faith-based charitable npos , from benefitting from the scope of these proposals; points out that trade unions in several member states are given a special beneficial status , they should therefore be excluded from the proposed instruments but however should be given a choice to make use of the provisions under the proposed instruments , if they so wish; points out to the fact that npos are likewise free to choose to make use of the provisions under the proposed regulation whereas for npos , the directive automatically applies;


### l. whereas cross-border associations and npos in particular contribute greatly to the achievement of the union's objectives and develop many and various activities of general interest with a transnational relevance; ### l. whereas cross-border associations and npos in particular contribute greatly to the achievement of the union’s objectives and develop many and various activities of general interest with a transnational relevance; whereas npos provide services in often unprofitable areas of the social sector and encourage participation in many social activities and could contribute to strengthen the social cohesion between eu societies , especially in cross-border regions;


### (10) regulation (ec) no 1082/2006 of the european parliament and of the council5 provides for the creation of european groupings of territorial cooperation (egtc). such groupings are formed mostly by state or local authorities or other entities governed by public law. thus , non-governmental civil society actors and citizens are not covered. ### (10) regulation (ec) no 1082/2006 of the european parliament and of the council5 provides for the creation of european groupings of territorial cooperation (egtc). such groupings are formed mostly by state or local authorities or other entities governed by public law. thus , civil society actors and citizens are not covered.


### (12) it is therefore necessary to establish at union level appropriate and rules which will permit the creation of european associations. ### (12) it is therefore necessary to establish at union level appropriate and rules which will permit the creation of european associations with their own legal personality.


### 4. a european association’s objectives shall respect and support the promotion of the objectives and values on which the union is founded as laid down in articles 2 and 3 of the treaty on european union. ### 4. a european association’s objectives shall respect and support the promotion of the objectives and values on which the union is founded as laid down in articles 2 and 3 of the treaty on european union , and the charter of fundamental rights of the european union.


### national supervisory authority ### national associations authority


### european associations authority ### european associations body


### as the result of a conversion into a european association of an existing entity formed under the law of a member state and which has its registered office within the union; or ### as the result of a conversion into a european association of an existing entity formed under the law of a member state , which is composed of founding members from at least two member states and which has its registered office within the union; or


### a precise statement of the european association’s objectives; ### a precise statement of the european association’s objectives and its non-profit purpose;


### 1. a european association shall be free to determine its internal management structures and governance in its statutes , subject to the other provisions of this regulation. ### 1. a european association shall be free to determine its internal management structures and governance in its statutes , which in any case must be in accordance with the democratic principles and fundamental values of the eu , subject to the other provisions of this regulation.


### 5. the meetings of the general assembly may be held online without that affecting their validity , or the validity of the decisions adopted. ### 5. except in the case where a majority of the members of the association objects , the meetings of the general assembly may be held online without that affecting their validity , or the validity of the decisions adopted.


### 5. european associations shall not be required to disclose information on their members , in particular with regards to the objectives and activities of the association. disclosing information on members shall not be required unless necessary for the purpose of a criminal investigation concerning criminal offences punishable by a custodial sentence of a maximum of at least one year. ### 5. european associations shall not be required to disclose information on their members , in particular with regards to the objectives and activities of the association. disclosing information on members shall not be required unless necessary for the purpose of a criminal investigation concerning criminal offences punishable by a maximum custodial sentence of at least three years.


### supervision and liability ### cooperation between the national and eu level and liability


### supervision ### cooperation between the national and eu level


### 1. the supervisory authority shall consult in a timely manner the supervisory authorities of other member states within the framework of the european associations authority on any substantial issues regarding the lawfulness and liability of european associations registered in the member state’s territory. ### 1. the supervisory authority of the registering member state shall consult in a timely manner the supervisory authorities of other member states within the framework of the european associations authority on any substantial issues regarding the lawfulness and liability of a given european associations.


### by decision of the general assembly , with a possibility to annul such decision before any dissolution or liquidation of a european association. ### by decision of the general assembly , which has a possibility to annul such decision before any dissolution or liquidation of a european association.


### 1. a european association may be dissolved by binding decision of the european associations authority , taken on its own initiative or at the request of the supervisory authority of the member state in which the european association has its registered office , if: ### 1. a european association may be dissolved by a binding decision of the european associations authority which is , subject to judicial review , taken on its own initiative or at the request of the supervisory authority of the member state in which the european association has its registered office , if:


### (2) non-profit organizations enjoy protection of certain rights , including fundamental rights , in their own capacity , as it derives from relevant case-law of the court of justice of the european union and of the european court of human rights. ### (2) non-profit organizations enjoy protection of certain rights , including fundamental rights , in their own capacity , as it derives from relevant case-law of the court of justice of the european union and of the european court of human rights. several member states recognise specifically the right of association in their respective constitutions as a right of citizens to contribute with private resources to the common good.


### (11) it is necessary at union level to build on existing standards and guidance to establish minimum standards for non-profit organisations , aimed at ensuring a uniform level of protection and a level playing field for all non-profit organisations established in the union , in order to secure an enabling environment in which these organisations can contribute without hindrances to the functioning of the internal market. ### (11) it is necessary at union level to build on existing standards and guidance to establish minimum standards for non-profit organisations in line with freedom of association and free flow of capital , aimed at ensuring a uniform level of protection and a level playing field for all non-profit organisations established in the union , in order to secure an enabling environment in which these organisations can contribute without hindrances to the functioning of the internal market.


### (17) trade unions and foundations , associations or other non- profit bodies with a trade union aim should be excluded from the application. this exclusion should not in any way be used by member states to justify a limitation of trade union prerogatives and rights recognised in national , eu , european or international law or human rights instruments; ### (17) trade unions , organisations which are associations of trade unions and foundations , associations or other non- profit bodies with a trade union aim should be excluded from the application. this exclusion should not in any way be used by member states to justify a limitation of trade union prerogatives and rights recognised in national , eu , european or international law or human rights instruments , in particular the council of europe european social charter and the relevant conventions and recommendations of the international labour organisation and their related case law and jurisprudence. however , organisations which are associations of trade unions or foundations , associations or other non-profit bodies with a trade union aim , may decide to fall under the application of parts of the directive or of the directive as a whole , if they so wish.


### (22) the implementation of rules concerning non-profit organisations should be undertaken by regulatory authorities that act in an impartial and timely manner in line with the right to good administration. decisions and acts affecting the exercise by non-profit organisations of their rights and obligations should be open to independent review , including by a court or tribunal. ### (22) the implementation of rules concerning non-profit organisations should be undertaken by regulatory authorities that act in an impartial , independent and timely manner in line with the right to good administration. decisions and acts affecting the exercise by non-profit organisations of their rights and obligations should be open to independent review , including by a court or tribunal.


### (23) simplifying and easing bureaucracy and regulatory requirements , ensuring that those requirements are not unduly burdensome , streamlining rules on formation , registration and de-registration , and modernising related procedures and systems is necessary to ensure a conducive environment for the operations of non-profit organisations across the union and to enhance transparency and trust in the sector. to that effect , general obligations as regards the simplification of administrative rules as well as specific obligations as regards certain aspects of the regulatory framework should be established in this directive. ### (23) simplifying and easing bureaucracy and regulatory requirements , ensuring that those requirements are not unduly burdensome , streamlining rules on formation , registration and de-registration , and modernising related procedures and systems is necessary to ensure a conducive environment for the operations of non-profit organisations across the union and to enhance transparency and trust in the sector. supervising competences , where applicable , need to be proportionate , respect the autonomy and self-government of npos and avoid unjustified burdens. to that effect , general obligations as regards the simplification of administrative rules as well as specific obligations as regards certain aspects of the regulatory framework should be established in this directive.


### (27) non-profit organisations should have the freedom to seek , receive and use financial , material and human resources , whether domestic , foreign or international , for the pursuit of their activities. non-profit organisations across the union have reported increasingly difficult access to resources including public funding and there are concerns in an increasing number of member states as regards the proportionality of strict rules being adopted on non-profit organisations’ access to foreign funding. it is therefore necessary to establish principles and standards on non-profit organisations’ financing , including as regards access to and use of private resources and public funding , the pursuit of economic activities and the obligation not to unduly restrict cross-border financing in line with treaty rules on free movement of capital. ### (27) non-profit organisations should have the freedom to seek , receive and use financial , material and human resources , whether domestic , foreign or international , for the pursuit of their activities. non-profit organisations across the union have reported increasingly difficult access to resources including public funding and there are concerns in an increasing number of member states as regards the proportionality of strict rules being adopted on non-profit organisations’ access to foreign funding. philanthropic organisations have also reported about difficulties to donate and grant to other npos in some cases. it is therefore necessary to establish principles and standards on non-profit organisations’ financing , including as regards access to and use of private resources and public funding , the pursuit of economic activities and the obligation not to unduly restrict cross-border financing in line with treaty rules on free movement of capital.


### 5. trade unions or foundations , associations or other non-profit bodies with a trade union aim , shall be excluded from the scope of this directive. however , when implementing this directive , member states shall ensure that trade unions or foundations , associations or other non-profit bodies with a trade union aim , may decide to fall under the application of parts of the directive or of the directive as a whole , if they so wish. ### 5. trade unions , organisations that are associations of trade unions and foundations , associations or other non-profit bodies with a trade union aim , shall be excluded from the scope of this directive. however , when implementing this directive , member states shall ensure that organisations which are associations of trade unions or foundations , associations or other non-profit bodies with a trade union aim , may decide to fall under the application of parts of the directive or of the directive as a whole , if they so wish.


### 4. member states shall take the measures necessary to ensure that oversight and supervision of non-profit organisations is undertaken by designated supervisory authorities whose powers and functions shall be clearly defined by law and exercised in accordance with the right principle to good administration , including as regards the grounds for possible inspections and audits , the procedures , duration and scope of inspections and audits and the powers of inspecting and auditing officers. ### 4. member states shall take the measures necessary to ensure that oversight and supervision of non-profit organisations is undertaken by designated independent supervisory authorities whose powers and functions shall be clearly defined by law and exercised in accordance with the right principle to good administration , including as regards the grounds for possible inspections and audits , the procedures , duration and scope of inspections and audits and the powers of inspecting and auditing officers.


### 1. member states shall ensure that non-profit organisations , their founders , directors , staff , members and all persons seeking to exercise rights related to the formation , registration , operations , financing and cross-border activities of non-profit organisations established , registered or operating in its territory have access to effective complaint mechanisms before a competent independent authority such as an ombudsperson or the national human rights institution in order to seek assistance to assert their rights. ### 1. member states shall ensure that non-profit organisations , their founders , directors , staff , members , beneficiaries of the activities of the npos and all persons seeking to exercise rights related to the formation , registration , operations , financing and cross-border activities of non-profit organisations established , registered or operating in its territory have access to effective complaint mechanisms before a competent independent authority such as an ombudsperson or the national human rights institution in order to seek assistance to assert their rights.


### 1. member states shall ensure that any natural or legal person may apply for membership of a non-profit organisation established , registered or operating in its territory according to that organisation’s statutes and constitutions , and to freely exercise membership rights subject to the organisation’s statutory conditions and regulatory limitations. ### 1. member states shall ensure that any natural or legal person may apply for membership , where applicable according to the legal form , of a non-profit organisation established , registered or operating in its territory according to that organisation’s statutes and constitutions , and to freely exercise membership rights subject to the organisation’s statutory conditions and regulatory limitations.


### 3. notwithstanding paragraph 2 , non-profit organisations may be required to disclose and make public , in their statutes or by other means , further information on their operations , functioning or financing , insofar as this is necessary to genuinely meet an objective of general interest , subject to the principle of proportionality in particular with regards to the objectives and activities of the organisation. disclosing the members lists of membership-based non-profit organizations shall not be required by state authorities , unless required for the purpose of a criminal investigation concerning criminal offences punishable by a custodial sentence of a maximum of at least one year. ### 3. notwithstanding paragraph 2 , non-profit organisations may be required to disclose and make public , in their statutes or by other means , further information on their operations , functioning or financing , insofar as this is necessary to genuinely meet an objective of general interest , subject to the principle of proportionality in particular with regards to the objectives and activities of the organisation. disclosing the members lists of membership-based non-profit organizations shall not be required by state authorities , unless required for the purpose of a criminal investigation concerning criminal offences punishable by a maximum custodial sentence of at least three years.


### 8. member states shall maintain a database of registered associations that is accessible to the public , including statistical information on the number of accepted and rejected applications with due consideration for data protection principles and the right to privacy. ### 8. member states shall maintain a database of registered npos that is accessible to the public , including statistical information on the number of accepted and rejected applications with due consideration for data protection principles and the right to privacy.


### 2. for the purpose of paragraph 1 , member states may not require non-profit organisations operating in their jurisdiction other proof than the evidence of establishment or registration as a non-profit organisation in another member state. ### 2. for the purpose of paragraph 1 , member states shall not require non-profit organisations operating in their jurisdiction other proof than the evidence of establishment or registration as a non-profit organisation in another member state.


### member states shall ensure that non-profit organisations established , registered or operating in their territory be free to engage in any lawful economic , business or commercial activities provided that such activities support their non-profit objectives , subject to the licensing or regulatory requirements generally applicable to the activities concerned pursuant to national laws , regulations and administrative practices. ### member states shall ensure that non-profit organisations established , registered or operating in their territory be free to engage in any lawful economic , business or commercial activities provided that such activities support their non-profit objectives or are mission related , subject to the licensing or regulatory requirements generally applicable to the activities concerned pursuant to national laws , regulations and administrative practices.


### 2. member states shall ensure that information concerning membership of a non-profit organisation may only be accessed by a competent authority where such information is necessary for the purpose of the investigation of criminal offences punishable by a custodial sentence of a maximum of at least 3 years. ### 2. member states shall ensure that information concerning membership of a non-profit organisation may only be accessed by a competent authority where such information is necessary for the purpose of the investigation of criminal offences punishable by a maximum custodial sentence of at least 3 years.


### 2. appreciates the foundation’s work to enhance and disseminate knowledge , and provide evidence and expertise to support policies concerning the improvement of living and working conditions in europe; ### 2. appreciates the foundation’s high quality work enhancing and disseminating knowledge , and providing evidence-based support and expertise for european policy development concerning the improvement of living and working conditions , labour market and industrial relations in europe; stresses its importance , autonomy and added value in its field of expertise; highlights the need of ensuring adequate human and financial resources allowing the foundation to continue implementing its work programme with a very high activity completion rate , including in the light of the significant challenges regarding the changing world of work , the upcoming eu action plan on care , etc.;


### 3. takes note that there is still ongoing action concerning the irregular payments related to the irregular procurement procedures for the supply of electricity and the refurbishment of toilet facilities in the financial year 2019 , which amounted to eur 62 470 for the electricity contract and eur 174 730 for the refurbishment contract; ### 3. takes note that there is still ongoing action concerning the irregular payments related to the irregular procurement procedures for the supply of electricity and the refurbishment of toilet facilities in the financial year 2019 , which amounted to eur 62 470 for the electricity contract and eur 174 730 for the refurbishment contract; notes from the foundation’s reply that it has accepted the observations of the eca and that two payments had to be made in conjunction with two irregular procurement procedures as a direct consequence of the original tender procedures;


### 4. is worried about the fact that the eca has reported internal controls weaknesses; ### deleted


### 5. takes note that eurofound implemented a new policy on sensitive posts on 23 june 2021 after the court’s audit remarked that eurofound inventory of sensitive posts had not been updated since 2012; ### 5. observes the fact that eca has reported internal controls weaknesses related to sensitive posts policy; takes note that eurofound finalised a new policy on sensitive posts on 23 june 2021 still during the court’s audit who could , therefore , already close off on the remark that eurofound’s inventory of sensitive posts had not been updated since 2012;


### 6. appreciates the foundation’s close cooperation with other union agencies , e.g. with cedefop , eige , etf , fra , eu-osha , which aims at strengthening the synergies between these agencies; welcomes the foundation’s active participation in the eu agencies network; ### 6. appreciates the foundation’s close cooperation with other union agencies under and beyond the remit of dg empl , e.g. with cedefop , eige , etf , fra , eu-osha , eea , which aims at strengthening the synergies between these agencies; welcomes the foundation’s active participation in the eu agencies network (euan);


### 7. welcomes the fact that the foundation is in the process of implementing actions in response to the two eca’s observations of 2019; ### 7. welcomes the fact that the foundation is in the process of implementing actions in response to the two eca’s observations of 2019; notes with concern the changes in the shares of the budget titles due mainly to the increasing prices in the host country and calls on the commission and the budgetary authority to take adequate measures in order to preserve the share of the operating expenditures of the budget of eurofound;


### 2. appreciates the centre’s activities , providing research , analyses and technical advice in vocational education and training (vet) , qualifications and skills policies; ### 2. appreciates the centre’s expertise and high-quality work , providing research , analyses and technical advice in vocational education and training (vet) , qualifications and skills policies , with the aim of promoting high-quality training tailored to the needs of individuals and of the labour market; highlights the need of ensuring adequate human and financial resources allowing the centre to continue implementing its work programme with a very high activity completion rate; stresses the centre’s importance , autonomy and added value in its field of expertise;


### 4. regrets , in particular , that the centre signed a contract exceeding the estimated budget by 98% without being able to justify it; notes that the centre cancelled that contract with effect from 26 february 2021; ### 4. regrets , in particular , that the centre signed a contract exceeding the estimated budget by 98% without being able to justify it; acknowledges that to address the irregularity observed by eca the centre cancelled that contract after the audit with effect from 26 february 2021;


### 5. reminds that , similarly to 2019 , the method for calculating contributions set out in the statement on cedefop-efta cooperation was not applied correctly in the 2020 financial year; ### 5. reminds that , similarly to 2019 , the method for calculating contributions set out in the statement on cedefop-efta cooperation was not applied correctly in the 2020 financial year; welcomes , however , the centre’s aim to establish a transparent and easy-to-apply methodology and prompt action to address it following the recommendation of dg budg through dg empl;


### a. whereas according to the commission’s autumn 2020 european economic forecast , eu gdp is forecast to contract by approximately 7.5 % in 2020 before rebounding by 4 % in 2021 , and by a further 3 % in 2022 , with the output in the european economy barely returning to pre-pandemic levels in 2022; ### a. whereas according to the commission’s autumn 2020 european economic forecast , eu gdp is forecast to contract by approximately 7.5 % in 2020 before rebounding by 4 % in 2021 , and by a further 3 % in 2022 , with the output in the european economy barely returning to pre-pandemic levels in 2022; whereas , according to this forecast , financial markets have held up well over the last few months , globally and in the eu , thanks mainly to central banks' massive liquidity provision around the world and this shows a ‘decoupling’ of the financial sphere from the real economy; whereas private consumption growth is , however , forecast to moderate in 2022 , largely due to lingering uncertainty about job and income prospects which are likely to keep precautionary savings elevated; whereas , however , on the other hand , capital spending is set to benefit from highly accommodative monetary policies , increased public investment and targeted government support schemes for firms;


### b. whereas the covid-19 outbreak has reversed the positive trend of the employment rate of the last six years in the eu-27 , resulting in a reduction of the number of persons in work of about 6.1 million in the second quarter of 2020 and a predicted decrease of 4.5 % over the year 202014 ; whereas workers who remain in the labour market have faced a considerable reduction in hours worked and , consequently , loss of income; ### b. whereas the covid-19 outbreak has reversed the positive trend of the employment rate of the last six years in the eu-27 , resulting in a reduction of the number of persons in work of about 6.1 million in the second quarter of 2020 and a predicted decrease of 4.5 % over the year 202014 ; whereas workers who remain in the labour market have faced a considerable reduction in hours worked and , consequently , loss of income; affecting to different axis of inequalities , especially the gender ones;


### c. whereas hours worked are set to increase faster than headcount employment and employment may also fall further when short-time work schemes are discontinued; whereas the reallocation of workers is usually a lengthy process and employment is therefore expected to decline slightly in 2021; ### c. whereas hours worked are set to increase faster than headcount employment and employment may also fall further when short-time work schemes are discontinued; whereas the reallocation of workers is usually a lengthy process and employment is therefore expected to decline slightly in 2021; whereas , despite the expected economic rebound next year , the eu unemployment rate is set to rise further from 7.7% this year to 8.6% next year and it is expected to decline in 2022 to 8.0% , with divergences between members states will persist;


### 1. asserts that the recovery and resilience facility is reshaping the european semester process; underlines that the two processes should be fully coordinated towards building resilience and supporting the recovery from the impact of the covid-19 crisis; ### 1. asserts that the recovery and resilience facility is reshaping the european semester process; underlines that the two processes should be fully coordinated towards maximising synergies between common policies and strategic guidance at eu level and implementation at national level , as well as building resilience and strong social structures , strengthening gender equality and the gender mainstreaming of all public interventions and supporting the recovery from the impact of the covid-19 crisis by making use of the ngeu in an efficiently and targeted manner:


### 1. asserts that the recovery and resilience facility is reshaping the european semester process; underlines that the two processes should be fully coordinated towards building resilience and supporting the recovery from the impact of the covid-19 crisis; ### 1. asserts that the recovery and resilience facility is reshaping the european semester process; underlines that the two processes should be fully coordinated towards building resilience and supporting the recovery from the impact of the covid-19 crisis; highlights in this regard the absolute need for a strict control on the allocation of the rrf funds by the member states , to ensure they aim for an effective long term structural sustainable change;


### 1. asserts that the recovery and resilience facility is reshaping the european semester process; underlines that the two processes should be fully coordinated towards building resilience and supporting the recovery from the impact of the covid-19 crisis; ### 1. asserts that the recovery and resilience facility is reshaping the european semester process; underlines that the two processes should be fully coordinated towards building resilience , supporting the recovery while preserving jobs in the regions hardest hit by the the covid-19 crisis;


### 1. recalls the objective of a continuous improvement of the eu’s and the member states’ education , training and skills policies in order to deliver quality education and comprehensive lifelong learning and the upgrading of skills and reskilling , notably of people with lower levels of education , and upholds the need to prepare for the future impact of artificial intelligence on the labour market and public spheres; ### 1. emphasises the role of education and culture in the personal development and critical thinking of citizens , in social mobility , in the promotion of creativity and innovation , and in raising awareness for major collective challenges such as climate change , the digital transformation and paradigm-shifting technologies; recalls the objective of a continuous improvement of the eu’s and all member states’ education , training and skills policies in order to deliver inclusive , accessible and high-quality education and comprehensive lifelong learning for all , from early childhood to older adults , and the upgrading of skills and reskilling , notably of people with lower levels of education , young people who are not in employment , education or training (neet) and the long-term unemployed; upholds the need to prepare for the future impact of artificial intelligence and robotics on the labour market and public spheres , as well as on everyday life and on our personal and collective relationship with knowledge , learning and information; in this respect , reminds also the relevance of acquiring media literacy skills to combat disinformation and build an active digital citizenship;


### 1. recalls the objective of a continuous improvement of the eu’s and the member states’ education , training and skills policies in order to deliver quality education and comprehensive lifelong learning and the upgrading of skills and reskilling , notably of people with lower levels of education , and upholds the need to prepare for the future impact of artificial intelligence on the labour market and public spheres; ### 1. recalls the objective of a continuous improvement of the eu’s and the member states’ education , training and skills policies in order to deliver quality , inclusive education , training and comprehensive lifelong learning and the upgrading of skills and reskilling , notably of people with lower levels of education , and upholds the need to prepare for the future impact of artificial intelligence on the labour market and public spheres;


### 2. notes that in the area of social and employment policies , next generation eu (ngeu) and the eu budget can play a subsidiary but instrumental role in triggering , bundling and directing investments towards social development and resilience; appreciates that this role will be enhanced by better coordination of national policies towards overarching eu objectives such as the european green deal , the digital transition and the implementation of the european pillar of social rights , the un sustainable development goals and the eu gender equality strategy; ### 2. notes that in the area of social and employment policies , next generation eu (ngeu) and the eu budget can play a subsidiary but instrumental role in triggering , bundling and directing investments towards social development and resilience; appreciates that this role will be enhanced by better coordination of national policies towards overarching eu objectives such as the european green deal , the digital transition and the implementation of the european pillar of social rights , the un sustainable development goals and the eu gender equality strategy. nevertheless , the commission shall work closely together with the relevant authorities of the member states in order to ensure the highest possible absorption rate from funds available in ngeu;


### 2. notes that in the area of social and employment policies , next generation eu (ngeu) and the eu budget can play a subsidiary but instrumental role in triggering , bundling and directing investments towards social development and resilience; appreciates that this role will be enhanced by better coordination of national policies towards overarching eu objectives such as the european green deal , the digital transition and the implementation of the european pillar of social rights , the un sustainable development goals and the eu gender equality strategy; ### 2. notes that in the area of social and employment policies , next generation eu (ngeu) and the eu budget can play a subsidiary but instrumental role in triggering , bundling and directing sustainable investments towards social development and resilience; appreciates that this role will be enhanced by better coordination of national policies and investments towards overarching eu objectives such as the european green deal , the digital transition and the implementation of the european pillar of social rights , the un sustainable development goals and the eu gender equality strategy;


### 2. is of the opinion that the unprecedented eu financial support for a post-covid-19 recovery should strive for sustainable economic growth that is inclusive and benefit all equally , addressing structural socio-economic disadvantages and emphasises that the european green and digital transition cannot be achieved without a gradual transformation of the education and training systems; ### 2. is of the opinion that the unprecedented eu financial support for a post-covid-19 recovery should strive for sustainable economic growth that is inclusive and benefit all equally , addressing structural socio-economic disadvantages , including disadvantages relating to early school leaving and school failure that limit the creation of qualified and well-paid jobs; reminds that continued schooling is closely linked to access to social protection systems that provide for the basic needs of children and their families , including high-quality nutrition and healthcare , access to adequate housing and quality public transport , among others; and emphasises that the european green and digital transition cannot be achieved without a gradual transformation of the education and training systems , which will need major investments;


### 3. is concerned about the impact of the covid-19 pandemic on the area of education as severe discrepancies in digital education exists between the member states , with 32% of pupils in some member states not having had any access to education for several months , in this regard; underlines that a green and digital transition in the eu should be based on fairness in society , and should address areas such as employment , skills and education and provide support to those who have been hit hardest by the covid-19 pandemic , such as young people , women and vulnerable groups; ### 3. is concerned about the impact of the covid-19 pandemic on the area of education as severe discrepancies in digital education exists between the member states , with 32% of pupils in some member states not having had any access to education for several months; underlines that a green and digital transition in the eu should be based on fairness in society and better redistribution of wealth , and should address areas such as employment , skills and education and provide support to those who have been hit hardest by the covid-19 pandemic , such as young generations , women , people with disabilities , single parents , the elderly and other vulnerable groups; stresses the role of school medicine and health education in mitigating the effects of pandemic outbreaks and in the prevention of and preparedness for future public health emergencies;


### 3. is concerned about the impact of the covid-19 pandemic on the area of education as severe discrepancies in digital education exists between the member states , with 32% of pupils in some member states not having had any access to education for several months , in this regard; underlines that a green and digital transition in the eu should be based on fairness in society , and should address areas such as employment , skills and education and provide support to those who have been hit hardest by the covid-19 pandemic , such as young people , women and vulnerable groups; ### 3. is concerned about the impact of the covid-19 pandemic on the area of education as severe discrepancies in digital education exist between the member states , with 32% of pupils in some member states not having had any access to education for several months , in this regard; underlines that a green and digital transition in the eu should be based on equal and fair access and opportunities in society , and should address areas such as employment , skills and education and provide support to those who have been hit hardest by the covid-19 pandemic , such as young people , women and vulnerable groups , including lgbtiq persons and persons with disabilities;


### 4. urges the member states to develop national recovery and resilience plans (nrrps) with at least 25 % earmarking for social investment ,and to prioritise , especially in the country-specific recommendations , targeted investments in digital infrastructure and equipment for educational establishments and learners in order to enable equal access to distance and online learning for children with disabilities , and children from disadvantaged groups and remote and rural areas; ### 4. urges the member states to develop national recovery and resilience plans (nrrps) with at least 25 % earmarking for social investment ,and to prioritise , especially in the country-specific recommendations , targeted investments in digital infrastructure and equipment for educational establishments and learners in order to enable equal access to distance and online learning for children with disabilities , children with fewer opportunities , and children from disadvantaged groups and remote and rural areas;


### 5. regrets that the limited size of the eu budget means that its redistribution and stabilisation functions are also limited; stresses that it is all the more important to take full advantage of all possibilities under the multiannual financial framework (mff) , the ngeu and the own resources system to support national recovery , social justice , and environmental , economic , social and inclusive resilience. ### 5. regrets that the limited size of the eu budget , together with its expenditure driven nature and being subject to the principle of equilibrium , means that its redistribution and stabilisation functions are also very limited; stresses that it is all the more important to take full advantage of all possibilities under the multiannual financial framework (mff) ,the ngeu and the own resources system to support national recovery , social justice , and environmental , economic , social and inclusive resilience; while also strengthening the eu budget with a broader portfolio of own resources;


### 5. calls on the recovery and resilience facility (rrf) to include a strong focus on culture with at least 2 % of the national rrf budget allocated to the ccss , as the whole sector was among the most severely affected by the global covid-19 pandemic; ### 5. notes the heavy toll the covid-19 pandemic has taken on creative and cultural sectors and industries , including events and performances , cultural and heritage tourism , intangible cultural heritage practices , and the existential threat it represents to many artists and creative businesses; deplores that such impact on culture is not reflected in the european commission communication on the eu annual sustainable growth strategy 2021 and asks the commission and the member states to identify and adopt specific initiatives to protect this field; more specifically , calls on the member states to include a strong focus on culture with at least 2 % of the national rrf budget allocated to the ccss , as the whole sector was among the most severely affected by the global covid-19 pandemic; encourages the member states to accelerate efforts to improve the social protection systems and the working conditions for the workforce in this sector;


### 6. urges the commission and the member states to use the recover resiliance facility to establish the necessary conditions in order to ensure the possibilities for digital education across the whole european union as a complementary tool for the in-person education , also with the aim of increasing the inclusiveness of education systems , with a particular focus on equal access to high-quality education and training for disadvantaged groups to compensate for the fact that socio-economic background is currently the most important determinant of children and young people’s educational outcome; ### 6. urges the commission and the member states to use the recovery and resilience facility to establish the necessary conditions in order to ensure the possibilities for digital education across the whole european union as a complementary tool for the in-person education , also with the aim of increasing the inclusiveness of education systems , with a particular focus on equal access to high-quality education and training for disadvantaged groups to compensate for the fact that socio-economic background is currently the most important determinant of children and young people’s educational outcome; is worried that the share of neet young people has risen sharply and calls for targeted funding to allow for new opportunities for this vulnerable group; reminds the relevance of acquiring media literacy skills to build an active digital citizenship; recalls the eu skills agenda’s aim to ensure that 70 % of 16- to 74-year-olds have basic digital skills by 2025; bearing in mind that 42 % of europeans still lack such basic digital skills , with significant disparities within and between the member states and on the basis of socioeconomic status , age , income , education level and employment , urges the commission to better integrate digital education into the european semester exercise , taking into account not only the economic impact of education , but also social objectives , as well as quality of education; stresses further the need to address the significant gender gap in digital skills and tech sector jobs;


### 6. urges the commission and the member states to use the recover resiliance facility to establish the necessary conditions in order to ensure the possibilities for digital education across the whole european union as a complementary tool for the in-person education , also with the aim of increasing the inclusiveness of education systems , with a particular focus on equal access to high-quality education and training for disadvantaged groups to compensate for the fact that socio-economic background is currently the most important determinant of children and young people’s educational outcome; ### 6. urges the commission and the member states to use the recover resiliance facility to establish the necessary conditions in order to ensure the possibilities for digital and blended education across the whole european union as a complementary tool for the in-person education , also with the aim of increasing the inclusiveness of education systems , with a particular focus on equal access to high-quality education and training for disadvantaged groups to compensate for the fact that socio-economic background is currently the most important determinant of children and young people’s educational outcome;


### 7. calls on the member states to take the necessary measures to reinforce their digital infrastructure and connectivity of schools and learning centres and accelerate reforms implementing the digital transformation ensuring that all europeans can take advantage of it and with a particular effort to provide online education accessible to all , in this context reminds the necessity to adequately train the teachers and trainers , whose role in digital transformation is crucial; ### 7. calls on the member states to take the necessary measures to reinforce their digital infrastructure , the connectivity and educational methods used in schools and learning centres and accelerate reforms implementing the digital transformation ensuring that all europeans can take advantage of it and with a particular effort to provide online education accessible to all , in this context reminds the necessity to adequately train the teachers , trainers and parents , whose role in digital transformation is crucial , for new formats such as distance and blended learning; points out the need to thoroughly assess the impact of overexposure to the digital world and calls for measures that promote better understanding of the risks posed by digital technologies which may affect children and young people in particular;


### 8. calls on the member states to strengthen the recovery and the crisis resilience of the sport sector in general and grassroots sport in particular and to ensure the full access of sport to the recovery and resilience facility; ### 8. calls on the member states to strengthen the recovery and the crisis resilience of the sport sector in general and grassroots sport in particular and to ensure the full access of sport to the recovery and resilience facility; emphasis that sport fulfils important societal functions , by promoting inclusion , integration and values such as mutual respect , solidarity , diversity and equality including gender equality , it is beneficial for addressing and preventing the physical and mental health impact of extended home confinement and closure of schools; calls in this regard on the commission to strengthen inclusion through sport and to explore new avenues to maximize its impact and reach;


### 9. calls on the commission to apply the “general escape clause” under the stability and growth pact in order to allow member states to deploy ambitious budgetary and fiscal policies necessary to protect european citizens and businesses from the effects of the pandemic , and to support the economy in the aftermath; ### 9. calls on the commission to apply the “general escape clause” under the stability and growth pact in order to allow member states to deploy ambitious budgetary and fiscal policies , notably by exempting social investment from the deficit rules , including investment in education and culture , in order to protect european citizens and businesses from the effects of the pandemic , and to support the economy in the aftermath , paving the way for fairer , greener and more sustainable societies;


### 2. appreciates the agency’s activities to develop , gather and provide reliable and relevant information , analysis and tools on occupational safety and health , which contribute to the union policy aiming to promote healthy and safe workplaces across the union; ### 2. welcomes the agency’s activities to develop , gather and provide reliable and relevant information , analysis and tools on occupational safety and health , which contribute to the union policy aiming to promote healthy and safe work places across the union; stresses its importance , autonomy and added value in its field of expertise; highlights the need of ensuring adequate human and financial resources allowing the agency to continue implementing its work programme with a very high activity completion rate , in particular in the light of the implementation of the new eu strategic framework on health and safety at work (2021-2027);


### 3. takes notes that two corrective actions on the previous years’ court’s observations are ongoing; ### 3. takes notes that two corrective actions reported by eca linked to the high level of committed appropriations carried over from previous years are ongoing;


### 1. notes that the budget monitoring efforts during the financial year 2019 resulted in a budget implementation rate of 97 ,84 % , representing a decrease of 1 ,74 % compared to 2018; regrets that the payment appropriations execution rate was at 76 ,33 % , representing an increase of 8 ,52 % compared to the previous year; ### 1. notes that the budget monitoring efforts during the financial year 2019 resulted in a budget implementation rate of 97 ,84 % , representing a decrease of 1 ,74 % compared to 2018; takes note that the payment appropriations execution rate was at 76 ,33 % , representing an increase of 8 ,52 % compared to the previous year;


### 3. appreciates the agency’s activities to develop , gather and provide reliable and relevant information , analysis and tools on occupational safety and health , which contribute to union policy aiming to promote healthy and safe workplaces across the union; ### 3. welcomes the agency’s activities to develop , gather and provide reliable and relevant information , analysis and tools on occupational safety and health , which contribute to union policy aiming to promote healthy and safe workplaces across the union; highlights the need of ensuring adequate human and financial resources allowing the agency to continue implementing its work programme with a very high activity completion rate;


### 14. acknowledges the agency’s existing measures and ongoing efforts to ensure transparency and the prevention and management of conflicts of interest; notes that not all management board members’ declarations of interest , indicating the acceptance date , are published on the agency’s website; ### 14. acknowledges the agency’s existing measures and ongoing efforts to ensure transparency and the prevention and management of conflicts of interest; notes with concern that the cvs of the management board members are not published on the agency’s website; notes further that not all management board members’ declarations of interest , indicating the acceptance date , are published on the agency’s website; calls on the agency to publish the cvs and the declarations of interest of all the members of the management board and to report to the discharge authority on the measures taken in this regard;