### depositary for each aif it manages , the aifm shall ensure that a depositary is appointed to fulfil , where relevant , the following tasks : receive all payments made by investors when subscribing units or shares of an aif managed by the aifm and book them on behalf of the aifm in a segregated account ; safe - keep any financial instruments which belong to the aif ; verify whether the aif or the aifm on behalf of the aif has obtained the ownership of all other assets the aif invests in . 2 . an aifm shall not act as depositary . the depositary shall act independently and solely in the interest of aif investors . 3 . the depositary shall be a credit institution having its registered office in the community and be authorised in accordance with directive 2006 / 48 / ec of the european parliament and council of 14 june 2006 relating to the taking up and pursuit of the business of credit institutions . 4 . depositaries may delegate their tasks to other depositaries . 5 . the depositary shall be liable to the aifm and the investors of the aif for any losses suffered by them as a result of its failure to perform its obligations pursuant to this directive . in case of any loss of financial instruments which the depositary safe - keeps , the depositary can only discharge itself of its liability if it can prove that it could not have avoided the loss which has occurred . liability to aif investors may be invoked either directly or indirectly through the aifm , depending on the legal nature of the relationship between the depositary , the aifm and the investors . the depositary ' s liability shall not be affected by any delegation referred to in paragraph 4 . ### depositary for each aif it manages , the aifm shall ensure that a depositary is appointed to fulfil , where relevant , the following functions : receive all payments made by investors when subscribing units or shares of an aif managed by the aifm and book them on behalf of the aifm in a segregated account ; safe - keep any financial instruments which belong to the aif , namely : hold in custody all financial instruments that can be kept and make adequate arrangements so as to safeguard the aif ' s ownership rights , especially in the event of the depositary ' s insolvency , including arrangements to ensure that those financial instruments are registered in the depositary ' s books within segregated accounts or a common segregated account for multiple aif , so that in the event of the depositary ' s default they can be clearly identified as separate from the assets of the depositary ; maintain the records to verify the ownership of financial instruments that cannot be kept on the basis of the information provided by the aifm and external evidence of transactions made . verify whether the aif or the aifm on behalf of the aif has obtained the ownership of all other assets the aif invests in . 1a . in addition to the functions referred to in paragraph 1 , the depositary shall ensure that : the sale , issue , re - purchase , redemption and cancellation of shares or units of the aif are carried out in accordance with the applicable national law and the aif rules or instruments of incorporation ; the value of the shares or units of the aif is calculated in accordance with the applicable national law and the aif rules or instruments of incorporation ; in transactions involving the assets of an aif , any consideration is remitted to it within the usual time limits ; and an aif ' s income is applied in accordance with the applicable national law and the aif rules . 2 . an aifm shall not act as depositary . the depositary shall act honestly , fairly , professionally , independently and in the interest of aif investors . 3 . the depositary shall be either : a credit institution having its registered office in the community and be authorised in accordance with directive 2006 / 48 / ec , or an investment firm authorised in accordance with directive 2004 / 39 / ce . 3a . where an aif managed by an authorised aifm is domiciled in a third country , the depositary shall have its registered office in the union , unless all of the following conditions are satisfied : the competent authorities of the home member state of the aifm and those of the third country where the aif is domiciled have signed cooperation and exchange of information agreements ; the law of the third country where the aif is domiciled is in line with the standards set by international organisations ; the third country where the aif is domiciled is the subject of a decision taken pursuant to point stating that depositaries domiciled in that country are subject to effective prudential regulation and supervision which is equivalent to the provisions laid down in union law ; the third country where the aif is domiciled is the subject of a decision taken pursuant to point stating that the standards to prevent money laundering and terrorist financing are equivalent to those laid down in union law ; the home member state of the aifm has signed an agreement with the third country where the aif is domiciled which fully complies with the standards laid down in article 26 of the oecd model tax convention and ensures an effective exchange of information in tax matters . 4 . depositaries may delegate their tasks apart from functions of monitoring and oversight over their sub - depositaries . a depositary shall not delegate its functions to the extent that it becomes a letter - box entity . such a delegation of liability shall only occur in one instance . there shall be no chain of liability . 4a . depositaries shall respect best practices and shall exercise all due skill , care and diligence in the selection and appointment , periodic review and ongoing monitoring of their performance of any third party to whom they have delegated their tasks as referred to in this paragraph . 5 . the depositary shall be liable to the aifm and the investors of the aif for any losses suffered by them as a result of its intentional or negligent failure to perform its obligations pursuant to this directive or its improper performance of them except where such loss arises as a result of force majeure . in case of any loss of financial instruments which the depositary safe - keeps , the depositary can only discharge itself of its liability if it can prove that the loss has been caused by an external event , that it was not foreseeable and that the depositary could not have avoided the loss which has occurred . the depositary ' s liability towards aifm and investors shall not be affected by the fact that it has chosen to undertake a single delegation to an authorised third party , such as a sub - depositary or a sub - custodian , a part of its tasks . therefore , in the event of any loss of financial instruments which the depositary safe - keeps , as a primary obligation , without prejudice to national law , the depositary shall return the assets to the aif without undue delay . that requirement shall apply without prejudice to any legal proceedings . liability to aif investors may be invoked directly or indirectly through the aifm . 5a . by way of exception to paragraph 5 , where a depositary is legally prevented by the law of the country where the aifm invests on behalf of the aif or is unable to exercise its custodial functions due to an unforeseeable external event , the depositary can discharge itself of its own liability , including for loss of financial instruments , if it can prove that it has performed its due diligence duties as referred to in paragraph 4a . such delegation of liability can only occur in one instance . there shall be no chain of liability . 5b . by way of exception to paragraph 5 , where the contract between the depositary and a prime broker or a sub - custodian allows for the transfer and reuse of assets in compliance with the aif ' s rules , the depositary may discharge itself of its own liability if it can prove that it has performed its due diligence duties as referred to in paragraph 4a . the contract between the aifm and the depositary shall require that the aifm be informed of any contractual term allowing the transfer and reuse of assets in compliance with the aif ' s rules before the implementation of the contract . before they invest in the aif , investors shall be informed of that clause and updated about the identity of the third party . in particular , investors shall be informed of any transfer of liability to the third party that may exist , including in the event of loss of financial instruments . in that case , the delay for restitution shall be in accordance with the terms of the contract between the depositary and the third party . 5c . the depositary shall make available on request to the competent authorities of its home member state all information which it has obtained while undertaking its duties and that may be necessary for the competent authorities to supervise the aifm . if the home member state of the aifm is different from that of the depositary , the competent authorities of the home member state of the depositary shall share the information received without delay with the competent authorities of the home member state of the aifm . 5d . the commission is empowered to adopt , in accordance with article 49 of this directive , delegated acts further specifying the duties and responsibilities of depositaries and the conditions under which an aif depositary may delegate some of its functions to a third party . 5e . any appointment of a depositary shall be subject to approval from the competent authority of the home member state of the aifm . the competent authority may permit the appointment of more than one depositary where it is satisfied that this will not interfere with the proper performance of all the obligations of the depositary set out in this directive .


### in no case shall the aifm ' s liability be affected by the fact that the aifm has delegated functions to a third party , nor shall the aifm delegate its functions to the extent that , in essence , it can no longer be considered to be the manager of the aif . ### in no case shall the aifm ' s liability be affected by the fact that the aifm has delegated functions to a third party , nor shall the aifm delegate its functions to the extent that , in essence , it can no longer be considered to be the manager of the aif and to the extent that it becomes a ' letter - box ' entity .


### the accounting information given in the annual report shall be audited by one or more persons empowered by law to audit accounts in accordance with directive 2006 / 43 / ec of the european parliament and of the council of 17 may 2006 on statutory audits of annual accounts and consolidated accounts , amending council directives 78 / 660 / eec and 83 / 349 / eec and repealing council directive 84 / 253 / eec . the auditor ' s report , including any qualifications , shall be reproduced in full in the annual report . ### the accounting information given in the annual report shall be prepared in accordance with the standards and principles provided for in the rules or instruments applicable to aifs concerning establishment and mergers , and shall be audited by one or more persons empowered by law to audit accounts in accordance with directive 2006 / 43 / ec of the european parliament and of the council of 17 may 2006 on statutory audits of annual accounts and consolidated accounts , amending council directives 78 / 660 / eec and 83 / 349 / eec and repealing council directive 84 / 253 / eec the auditor ' s report , including any qualifications , shall be reproduced in full in the annual report .


### the commission shall adopt implementing measures further specifying the content and format of the annual report . these measures shall be adapted to the type of aifm to which they apply . ### the commission is empowered to adopt , in accordance with article 49 of this directive , delegated acts further specifying the content and format of the annual report . these acts shall be appropriate and proportionate and adapted to the type of aifm to which they apply and to the aif to which the report relates , taking account of the different size , resources , complexity , nature , investments , investment strategies and techniques , structures and investors of different types of aifm and the aif which they manage .


### for each aif an aifm manages , it shall periodically disclose to investors : ### for each aif that an aifm manages , it shall disclose to investors :


### the current risk profile of the aif and the risk management systems employed by the aifm to manage these risks . ### on a periodic basis , but not less than every month , unless the information has not changed since the last disclosure , the current risk profile of the aif , including the level of leverage used , and the risk management systems employed by the aifm to manage these risks .


### home member states shall ensure that all information received under article 24 , aggregated in respect of all aifm that it supervises , are made available to other competent authorities through the procedure set out in article 46 on supervisory co - operation . it shall , without delay , also provide information through this mechanism , and bilaterally to other member states directly concerned , if an aifm under its responsibility could potentially constitute an important source of counterparty risk to a credit institution or other systemically relevant institution in other member states . ### home member states shall ensure that all information received under article 24 is made available to other competent authorities through the procedure set out in article 46 on supervisory co - operation . it shall , without delay , also provide information through this mechanism , and bilaterally to other member states directly concerned , if an aifm under its responsibility could potentially constitute an important source of counterparty risk to a credit institution or other systemically relevant institution in other member states . the information provided under this paragraph shall be filed at the esma . the esma shall set up and operate a specific database for the purpose of such filing , which shall be accessible to the competent authorities of all member states .


### home member states shall ensure that all information received under article 24 , aggregated in respect of all aifm that it supervises , are made available to other competent authorities through the procedure set out in article 46 on supervisory co - operation . it shall , without delay , also provide information through this mechanism , and bilaterally to other member states directly concerned , if an aifm under its responsibility could potentially constitute an important source of counterparty risk to a credit institution or other systemically relevant institution in other member states . ### home member states shall ensure that all information received under article 21 and article 24 , aggregated in respect of all aifm that it supervises , are made available to other competent authorities within the union , the esma and the esrb . the competent authorities of the home member states shall , without delay , provide information , through the procedure set out in article 46 on supervisory cooperation . it shall , without delay , also provide information through this mechanism , and bilaterally to other member states directly concerned , if an aifm under its responsibility could potentially constitute an important source of counterparty risk to a credit institution or other systemically relevant institution in other member states .


### in order to ensure the stability and integrity of the financial system , the commission shall adopt implementing measures setting limits to the level of leverage aifm can employ . these limits should take into account , inter alia , the type of aif , their strategy and the sources of their leverage . ### in order to ensure the stability and integrity of the financial system and to promote long - term sustainable growth of the economy , the commission shall adopt delegated acts in accordance with articles 49a , 49b and 49c setting limits to the level of gross leverage aifm can employ . those limits shall not exceed five times the value of the equity capital of each aif , except for specific categories of aif for which a higher multiple would be permitted on the basis of their business model and to the extent that such multiple does not increase the systemic risk , is compatible with the risk profile of the related type of aif and is not likely to lead to a disproportionate impact of the related type of aif on the market on which they operate . these limits should take into account , inter alia , the type of aif , their strategy and the sources of their leverage . the commission shall also specify the level of aggregation of the information transmitted pursuant to paragraph 2 .


### in order to ensure the stability and integrity of the financial system , the commission shall adopt implementing measures setting limits to the level of leverage aifm can employ . these limits should take into account , inter alia , the type of aif , their strategy and the sources of their leverage . ### in order to ensure the stability and integrity of the financial system , the commission , taking account of the views of the esrb , shall adopt delegated acts in accordance with articles 49a , 49b and 49c setting limits to the level of leverage that aif and aifm can employ . these limits should take into account , inter alia , the type of aif , their strategy , their size and the sources of their leverage , whereas the maximum leverage shall not exceed five times net equity .


### in order to ensure the stability and integrity of the financial system , the commission shall adopt implementing measures setting limits to the level of leverage aifm can employ . these limits should take into account , inter alia , the type of aif , their strategy and the sources of their leverage . ### in order to ensure the stability and integrity of the financial system , the commission shall , after consulting the esma , adopt delegated acts in accordance with articles 49a , 49b and 49c setting limits to the level of leverage aifm can employ . these limits should take into account , inter alia , the type of aif , their strategy and the sources of their leverage .


### in addition to article 27 , member states shall ensure that where an aifm acquires 30 % or more of the voting rights of an issuer or a non - listed company , that aifm makes the information set out in the second and third subparagraphs available to the issuer , the non - listed company , their respective shareholders and representatives of employees or , where there are no such representatives , to the employees themselves . ### in addition to article 27 , member states shall ensure that where an aifm , acting alone or in concert with other aifm , comes to hold through one or several aif it manages 30 % or more of the voting rights of an issuer or a non - listed company or otherwise holds a controlling influence in such aif , that aifm notifies the information set out in the second subparagraph to the issuer , the non - listed company , their respective shareholders and representatives of employees or , where there are no such representatives , to the employees themselves , the competent authority of the aifm and the competent authority of the member state where the issuer or the non - listed company is established .


### in addition to article 27 , member states shall ensure that where an aifm acquires 30 % or more of the voting rights of an issuer or a non - listed company , that aifm makes the information set out in the second and third subparagraphs available to the issuer , the non - listed company , their respective shareholders and representatives of employees or , where there are no such representatives , to the employees themselves . with regard to issuers , the aifm shall make available the following to the issuer concerned , its shareholders and representatives of employees : the information referred to in article 6 of directive 2004 / 25 / ec of the european parliament and of the council of 21 april 2004 on takeover bids1 ; the policy for preventing and managing conflicts of interests , in particular between the aifm and the issuer ; the policy for external and internal communication of the issuer in particular as regards employees . with regard to non - listed companies , the aifm shall make available the following to the non - listed company concerned , its shareholders and representatives of employees : the identity of the aifm which either individually or in agreement with other aifm have reached the 30 % threshold ; the development plan for the non - listed company ; the policy for preventing and managing conflicts of interests , in particular between the aifm and the non - listed company ; the policy for external and internal communication of the issuer or non - listed company , in particular as regards employees . oj l 142 , 30 . 4 . 2004 , p . 12 . ### in addition to article 27 , member states shall ensure that where an aifm , acting alone or in concert with other aifm , acquires a controlling influence over an issuer or a non - listed company , that aifm notifies the information set out in this paragraph to the issuer , the non - listed company , their respective shareholders and representatives of employees or , where there are no such representatives , to the employees themselves . with regard to issuers , the aifm shall make available to the issuer concerned , its shareholders and representatives of its employees , the information referred to in article 6 of directive 2004 / 25 / ec . with regard to issuers and non - listed companies , the aifm shall make available : planned significant divestments of assets ; the policy for preventing and managing conflicts of interests , in particular between the aifm and the issuer ; the policy for external and internal communication of the issuer in particular as regards employees . the identity of the aifm which either individually or in agreement with other aifm have reached a controlling or influence ; the policy for preventing and managing conflicts of interests , in particular between the aifm and the non - listed company ; the person or persons authorised to conclude legally binding agreements relating to business strategy and employment policy .


### subject to the implementing measures referred to in the third subparagraph , the competent authorities may impose restrictions or conditions on the marketing of aif pursuant to this article . the commission shall adopt implementing measures specifying the types of restrictions or conditions that can be imposed on the marketing of aif pursuant to the second subparagraph of this paragraph . those measures , designed to amend non essential elements of this directive by supplementing it , shall be adopted in accordance with the regulatory procedure with scrutiny referred to in article 49 . ### subject to the delegated acts referred to in the third subparagraph , the competent authorities may impose restrictions or conditions on the marketing of aif pursuant to this article . the commission is empowered to adopt , in accordance with article 49 of this directive , delegated acts specifying the types of restrictions or conditions that can be imposed on the marketing of aif pursuant to the second subparagraph of this paragraph .


### on the basis of the criteria referred to in paragraph 2 , the commission shall , in accordance with the procedure referred to in article 49 , adopt implementing measures , stating that the valuation standards and rules of a third country legislation are equivalent to those applicable in the community . ### on the basis of the criteria referred to in paragraph 2 , the commission is empowered to adopt , in accordance with article 49 of this directive , delegated acts stating that the valuation standards and rules of a third country legislation are equivalent to those applicable in the union .


### on the basis of the criteria referred to in paragraph 3 , the commission shall , in accordance with the procedure referred to in article 49 , adopt implementing measures , stating that prudential regulation , supervision and standards of a third country are equivalent to this directive . ### on the basis of the criteria referred to in paragraph 3 , the commission is empowered to adopt , in accordance with article 49 of this directive , delegated acts stating that prudential regulation , supervision and standards of a third country are equivalent to this directive .


### on the basis of the criteria referred to in paragraph 2 , the commission shall , in accordance with the regulatory procedure referred to in article 49 , adopt implementing measures stating : ### on the basis of the criteria referred to in paragraph 2 , the commission is empowered to adopt , in accordance with article 49 of this directive , delegated acts stating :


### the commission shall , in accordance with the procedure referred to in article 49 , adopt implementing measures relating to the procedures for exchange of information between competent authorities . ### the commission is empowered to adopt , in accordance with article 49 of this directive , delegated acts relating to the procedures for exchange of information between competent authorities .


### the commission shall adopt implementing measures concerning procedures for on - the - spot verifications and investigations . those measures , designed to amend non - essential elements of this directive by supplementing it , shall be adopted in accordance with the regulatory procedure with scrutiny referred to in article 49 . ### the commission is empowered to adopt , in accordance with article 49 of this directive , delegated acts concerning procedures for on - the - spot verifications and investigations .


### items in the profit and loss account and balance sheet shall be presented having regard to the substance of the reported transaction or arrangement ; ### items in the profit and loss account and balance sheet may be presented having regard to the substance or the form of the reported transaction or arrangement ;


### member states may permit the purchase price or production cost of stocks of goods of the same category and all fungible items including investments to be calculated either on the basis of weighted average prices or on the basis of the ‘ first in , first out’ method , or a similar method . ### member states may permit the purchase price or production cost of stocks of goods of the same category and all fungible items including investments to be calculated either on the basis of weighted average prices or on the basis of the ‘ first in , first out’ method , or a similar method that reflects current best practice and shall exclude the ' last in , first out ' method .


### a delegated act adopted pursuant to article 1 , article 3 and article 38 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of two months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by two months at the initiative of the european parliament or the council . ### a delegated act adopted pursuant to article 1 , article 3 and article 38 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of three months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by three months at the initiative of the european parliament or the council .


### the coverage of the eu guarantee , which is limited to risks of a sovereign and political nature , is not sufficient in itself to ensure a meaningful eib activity in support of micro - finance . therefore such activity , where appropriate , should be carried out in connection with budgetary resources available under other instruments . ### the coverage of the eu guarantee , which is limited to risks of a sovereign and political nature , is not sufficient in itself to ensure a meaningful eib activity in support of micro - finance . therefore such activity , where appropriate , should be carried out in connection with budgetary resources available under other instruments and / or via intermediary institutions .


### while the eib ' s strength remains its distinctiveness as an investment bank , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , and to the implementation of international environmental agreements to which the union is a party . in particular , in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , as well as compliance with objectives approved by the union in the context of the united nations and other competent international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 of the treaty , the eib should strive to support indirectly the achievement of the un ' s 2015 millennium development goals in all regions where it is active . ### while the eib ' s strength remains its distinctiveness as an investment bank , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , and to the implementation of international environmental agreements to which the union is a party . in particular , in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , as well as compliance with objectives approved by the union in the context of the united nations and other relevant international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 tfeu , the eib should strive to support indirectly the achievement of the un ' s 2015 millennium development goals , and after 2015 by possible new development targets which might modify or replace the mdgs , in all regions where it is active .


### the eib activity under this decision should support the agenda for change proposed by the commission and be coherent with the relevant principles of the european consensus on development and the principles of aid effectiveness outlined in the paris declaration of 2005 , the accra agenda for action of 2008 and the busan partnership agreement of 2011 . furthermore , it should be coherent with the eu strategic framework and action plan on human rights and democracy adopted by the council on 25 june 2012 and international environmental agreements including biodiversity commitments . it should be implemented through a number of concrete measures , in particular by reinforcing the eib ' s capacity to appraise environmental , social and development aspects of investment projects , including human rights and conflict - related risks , and by promoting local consultation with public authorities and civil society . in this context , the eib should implement and further develop its results measurement framework which provides a detailed set of performance indicators measuring the economic , environmental , social , and development impact of its financing operations throughout the lifecycle of the underlying investment . the implementation of the rem should be evaluated as part of the mid - term review of this decision . when carrying out due diligence in respect of an investment project , the eib should , where appropriate and in line with the union ' s social and environmental principles , require the investment project promoter to carry out local consultations and disclose their results to the public . eib financing agreements involving public counterparts should explicitly include the possibility to suspend disbursements in case of revocation of eligibility under this decision of the country in which the investment project takes place . ### the eib activity under this decision should support the agenda for change proposed by the commission and be coherent with the relevant principles of the european consensus on development and the principles of aid effectiveness outlined in the paris declaration of 2005 , the accra agenda for action of 2008 and the busan partnership agreement of 2011 . furthermore , it should be coherent with the eu strategic framework and action plan on human rights and democracy adopted by the council on 25 june 2012 and international environmental agreements including biodiversity commitments . it should be implemented through a number of concrete measures , in particular by reinforcing the eib ' s capacity to appraise environmental , social and development aspects of investment projects , including human rights and conflict - related risks , and by promoting local consultation with public authorities and civil society . in this context , the eib should implement and further develop its results measurement framework which provides a detailed set of performance indicators measuring the economic , environmental , social , and development impact of its financing operations throughout the lifecycle of the underlying investment . the implementation of the rem should be evaluated as part of the mid - term review of this decision . when carrying out due diligence in respect of an investment project , the eib should , where appropriate and in line with the union ' s social and environmental principles and legislation , as well as with the legislation and the social and environmental standards of the beneficiary country , require the investment project promoter to carry out local consultations and disclose their results to the public . eib financing agreements involving public counterparts should explicitly include the possibility to suspend disbursements in case of revocation of eligibility under this decision of the country in which the investment project takes place . they should also refer to the relevant eu decisions and conclusions regarding an assessment of the human rights situation of the countries where it operates and the commission , by means of a delegated act , should decide upon countries ' eligibility for new eib financing operations under the eu guarantee .


### the eib activity under this decision should support the agenda for change proposed by the commission and be coherent with the relevant principles of the european consensus on development and the principles of aid effectiveness outlined in the paris declaration of 2005 , the accra agenda for action of 2008 and the busan partnership agreement of 2011 . furthermore , it should be coherent with the eu strategic framework and action plan on human rights and democracy adopted by the council on 25 june 2012 and international environmental agreements including biodiversity commitments . it should be implemented through a number of concrete measures , in particular by reinforcing the eib ' s capacity to appraise environmental , social and development aspects of investment projects , including human rights and conflict - related risks , and by promoting local consultation with public authorities and civil society . in this context , the eib should implement and further develop its results measurement framework which provides a detailed set of performance indicators measuring the economic , environmental , social , and development impact of its financing operations throughout the lifecycle of the underlying investment . the implementation of the rem should be evaluated as part of the mid - term review of this decision . when carrying out due diligence in respect of an investment project , the eib should , where appropriate and in line with the union ' s social and environmental principles , require the investment project promoter to carry out local consultations and disclose their results to the public . eib financing agreements involving public counterparts should explicitly include the possibility to suspend disbursements in case of revocation of eligibility under this decision of the country in which the investment project takes place . ### the eib activity under this decision should support the agenda for change proposed by the commission and be coherent with the relevant principles of the european consensus on development and the principles of aid effectiveness outlined in the paris declaration of 2005 , the accra agenda for action of 2008 and the busan partnership agreement of 2011 . furthermore , it should be coherent with the eu strategic framework and action plan on human rights and democracy adopted by the council on 25 june 2012 and international environmental agreements including biodiversity commitments . it should be implemented through a number of concrete measures , in particular by reinforcing the eib ' s capacity to appraise environmental , social and development aspects of investment projects , including human rights and conflict - related risks , and by promoting local consultation with public authorities and civil society . in this context , the eib should implement and further develop its results measurement framework which provides a detailed set of performance indicators measuring the economic , environmental , social , and development impact of its financing operations throughout the lifecycle of the underlying investment . the implementation of the rem should be evaluated as part of the mid - term review of this decision . where possible , the eib should publish the evaluation of the projects under the rem . when carrying out due diligence in respect of an investment project , the eib should , where appropriate and in line with the union ' s social and environmental principles and legislation , as well as with the legislation and the social and environmental standards of the beneficiary country , require the investment project promoter to carry out local consultations and disclose their results to the public . eib financing agreements involving public counterparts should explicitly refer to the relevant eu decisions and conclusions regarding an assessment of the human rights situation of the countries where it operates and the commission , by means of a delegated act , should decide upon countries’ eligibility for new eib financing operations under the eu guarantee .


### union external relations should be supported by new instruments from 2014 , including an umbrella regulation establishing common rules and procedures for the implementation of the union ' s instruments for external action . with a view to enhancing the coherence of overall union support in the regions concerned , opportunities should be seized to combine eib financing with union budgetary resources when and as appropriate , in the form of financial instruments provided for in title viii of regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 and technical assistance for project preparation and implementation , through the instrument for pre - accession assistance ii , the european neighbourhood instrument , the development cooperation instrument , the partnership instrument for cooperation with third countries , the instrument for the promotion of democracy and human rights worldwide , the instrument for stability , and the instrument for nuclear safety cooperation . following decision no 1080 / 2011 / eu , the commission established an eu platform for blending in external cooperation with a view to optimising the functioning of mechanisms for the blending of grants and loans outside the union . ### union external relations should be supported by new instruments from 2014 , including an umbrella regulation establishing common rules and procedures for the implementation of the union ' s instruments for external action . with a view to enhancing the coherence of overall union support in the regions concerned , opportunities should be seized to combine eib financing with union budgetary resources when and as appropriate , in the form of financial instruments provided for in title viii of regulation no 966 / 2012 of the european parliament and of the council1 and technical assistance for project preparation and implementation , through the instrument for pre - accession assistance ii , the european neighbourhood instrument , the development cooperation instrument , the partnership instrument for cooperation with third countries , the instrument for the promotion of democracy and human rights worldwide , the instrument for stability , and the instrument for nuclear safety cooperation . following decision no 1080 / 2011 / eu , the commission established an eu platform for blending in external cooperation with a view to optimising the functioning of mechanisms for the blending of grants and loans outside the union respecting the role and prerogatives of the commission and of the eib in implementing respectively the union budget and eib loans . _____________ 1 regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 .


### eligible for the eu guarantee shall be the eib loans , loan guarantees , and debt capital market instruments that are granted for or issued for the benefit of investment projects carried out in eligible countries in accordance with the eib ' s own rules and procedures and in support of the relevant union external policy objectives , where eib financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled . ### eligible for the eu guarantee shall be the eib loans , loan guarantees , and debt capital market instruments that are granted for or issued for the benefit of investment projects carried out in eligible countries in accordance with the eib ' s own rules and procedures including the eib ' s statement on social and environmental standards , and in support of the relevant union external policy objectives , where eib financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled .


### local private sector development , in particular support to smes ; ### local private sector development , in particular support to local smes ;


### eib financing operations supporting the objectives provided for in paragraph 1 shall support investment projects in the areas of transport , energy , including renewable energy , energy systems transformation enabling a switch to lower carbon intensive technologies and fuels , energy security and energy infrastructure , including for gas production and transportation to eu energy market , environmental infrastructure , including water and sanitation and green infrastructure , information and communication technology , including telecommunications and broadband network infrastructure , health and education . ### eib financing operations supporting the objectives provided for in paragraph 1 shall predominantly support investment projects in the areas of transport , energy , including renewable energy , energy systems transformation enabling a switch to lower carbon intensive technologies and fuels , energy security and energy infrastructure , including for gas production and transportation to eu energy market , environmental infrastructure , including water and sanitation and green infrastructure , information and communication technology , including telecommunications and broadband network infrastructure , health and education .


### in line with union and international climate change objectives , before the end of 2016 , the eib , in cooperation with the commission and following a public consultation , shall update its climate change strategy as regards eib financing operations . ### in line with union and international climate change objectives , in cooperation with the commission and in line with the respective sectoral policies established following public consultations , the eib shall , by 31 december 2015 , update its climate change strategy as regards eib financing operations . that update shall inter alia integrate concrete actions to phase out financing projects detrimental to the achievement of union climate objectives and step up efforts to support renewable energy sources and energy efficiency .


### the list of countries potentially eligible for eib financing under eu guarantee is set out in annex ii . the list of countries eligible for eib financing under eu guarantee is set out in annex iii and shall include no countries other than those listed in annex ii . ### the list of countries potentially eligible for eib financing under eu guarantee is set out in annex ii . the list of countries eligible for eib financing under eu guarantee is set out in annex iii and shall include no countries other than those listed in annex ii . for countries not listed in annex ii , eligibility for eib financing under the eu guarantee shall be decided on a case - by - case basis in accordance with the ordinary legislative procedure .


### the eib ' s own rules and procedures shall include the necessary provisions on assessment of environmental and social impact of investment projects and of aspects related to human rights and conflict prevention , to ensure that only investment projects that are economically , financially , environmentally and socially sustainable are supported under this decision . ### the eib ' s own rules and procedures shall include the necessary provisions on assessment of environmental and social impact of investment projects and of aspects related to human rights , fundamental freedoms and conflict prevention in line with the principles of the union and its relevant legislation , to ensure that predominantly investment projects that are economically , financially , environmentally and socially sustainable are supported under this decision .


### the eib shall provide the information referred to in paragraphs 2 to 6 at its own expense ### the eib shall provide the information referred to in paragraphs 2 to 6 at its own expense . the eib shall also make publicly available the information referred to in paragraphs 2 and 6 , in general terms and excluding any confidential information .


### in its financing operations , the eib shall not tolerate any activities carried out for illegal purposes , including money laundering , financing of terrorism , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the eu . in particular the eib shall not participate in any financing operation implemented in an eligible country through a foreign non - cooperative jurisdiction identified as such by the oecd , the financial action task force or other relevant international organisations . ### in its financing operations , the eib shall not tolerate any activities carried out for illegal purposes , including money laundering , financing of terrorism , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the eu . in particular the eib shall not participate in any financing operation implemented in an eligible country through / with a foreign non - cooperative jurisdiction identified as such by the oecd , the financial action task force or other relevant international organisations .


### the european union should adopt a comprehensive set of instruments covering a range of policies related to external action , which require specific common rules and procedures for their implementation . these are : the development cooperation instrument , the european instrument for democracy and human rights , the european neighbourhood instrument , the instrument for stability , the instrument for nuclear safety cooperation , the instrument for pre - accession assistance and the partnership instrument . ### the european union should adopt a comprehensive set of instruments covering a range of policies related to external action , which might benefit from specific common rules and procedures for their implementation . these are : the development cooperation instrument , the european instrument for democracy and human rights , the european neighbourhood instrument , the instrument for stability , the instrument for nuclear safety cooperation , the instrument for pre - accession assistance and the partnership instrument .


### these instruments generally provide that actions to be funded on their basis should be the object of a multiannual indicative programming , providing the framework within which financing decisions should be adopted in accordance with the financial regulation , and with the procedures provided for in regulation no 182 / 2011 of the european parliament and of the council of 16 february 2011 laying down the rules and general principles concerning mechanisms for control by member states of the commission ' s exercise of implementing powers . ### these instruments generally provide that actions to be funded on their basis should be the object of a multiannual strategic programming , providing the framework within which financing decisions should be adopted in accordance with the financial regulation , and , both for the programming and the implementing decisions , with the adequate procedures provided for in articles 290 and 291 of the treaty on the functioning of the european union .


### the financing decisions should take the forms of annual or multiannual action programmes and individual measures when following the planning provided for by the multiannual indicative programming , of special measures where required by unforeseen and justified needs , and of support measures . ### the financing decisions should take the forms of annual or biennial action programmes and individual measures when following the planning provided for by the multiannual strategic programming , of special measures where required by unforeseen and justified needs , and of support measures .


### for the implementation of financial instruments , when the management of the operation is entrusted to a financial intermediary , the commission decision should cover in particular provisions concerning risk - sharing , the remuneration of the intermediary responsible for implementation , the use and re - use of the funds and the possible profits . ### for the implementation of financial instruments , when the management of the operation is entrusted to a financial intermediary , the commission decision should cover in particular provisions concerning risk - sharing , transparency , the remuneration of the intermediary responsible for implementation , the use and re - use of the funds and the possible profits .


### while financing needs of the union’s external assistance are increasing , the economic and budgetary situation of the union limits the resources available for such assistance . the commission must therefore seek the most efficient use of available resources , in particular by using financial instruments that have a leverage effect . such leverage effect is increased by allowing funds invested and generated by the financial instruments to be used and re - used . ### while financing needs of the union’s external assistance are increasing , the economic and budgetary situation of the union limits the resources available for such assistance . the commission must therefore seek the most efficient use of available resources , in particular by using financial instruments that have a leverage effect . such leverage effect is increased by allowing funds invested and generated by the financial instruments to be used and re - used . this leverage effect must be clearly demonstrated particularly in the case of instruments that are counted towards official development assistance or climate finance . in such cases the funds leveraged must clearly contribute to poverty eradication and be aligned to aid effectiveness principles , or , in the case of climate finance , conform to unfccc priority areas and commitments .


### this regulation establishes the rules and conditions for providing the union ' s financial assistance to actions , including action programmes and other measures , under the following instruments : the development cooperation instrument , the european instrument for democracy and human rights , the european neighbourhood instrument , the instrument for stability , the instrument for nuclear safety cooperation , the instrument for pre - accession assistance and the partnership instrument , hereinafter also referred to jointly as ' the instruments ' and singly as ' the applicable instrument ' . ### this regulation establishes the rules and conditions for providing the union ' s financial assistance to actions under the following instruments : the development cooperation instrument , the european instrument for democracy and human rights , the european neighbourhood instrument , the instrument for stability , the instrument for nuclear safety cooperation , the instrument for pre - accession assistance and the partnership instrument , hereinafter also referred to jointly as ' the instruments ' and singly as ' the applicable instrument ' .


### the commission shall ensure that actions are implemented in accordance with the objectives of the applicable instrument , and in conformity with an effective protection of the financial interests of the union . the financial assistance provided on the basis of the instruments shall be consistent with the rules and procedures laid down in the financial regulation , which provides the basic financial and legal framework for their implementation . ### the commission shall ensure that actions are implemented in accordance with the objectives of and the specific provisions and derogations contained in the applicable instrument , and in conformity with an effective protection of the financial interests of the union . the financial assistance provided on the basis of the instruments shall be consistent with the rules and procedures laid down in the financial regulation , which provides the basic financial and legal framework for their implementation .


### exceptionally , in particular where an action programme has not yet been adopted , the commission may , on the basis of the indicative programming documents , adopt individual measures under the same rules and procedures as for action programmes . ### exceptionally , where an action programme has not yet been adopted , the commission may , on the basis of and in line with the strategic programming documents defined in article 2 , adopt individual measures under the same rules and procedures as for action programmes .


### action programmes and individual measures provided for in paragraph 1 for which the union ' s financial assistance exceeds eur 10 million and special measures for which the union ' s financial assistance exceeds eur 30 million shall be adopted in accordance with the examination procedure referred to in article 15 . ### action programmes , individual measures , special measures and support measures provided for in paragraph 1 of this article and in article 3 , for which the union ' s financial assistance exceeds eur 10 million shall be adopted in accordance with the examination procedure referred to in article 15 .


### on duly justified imperative grounds of urgency , such as crises , post crisis and fragility situations or threats to democracy , the rule of law , human rights or fundamental freedoms , the commission may adopt immediately applicable implementing acts , including amendments to existing action programmes and measures , in accordance with the procedure referred to in article 15 . ### on duly justified imperative grounds of urgency , such as military , institutional or humanitarian crises , or threats to democracy , the rule of law , human rights or fundamental freedoms , the commission may adopt immediately applicable implementing acts , including amendments to existing action programmes and measures , in accordance with the procedure referred to in article 15 . the commission shall notify the european parliament of its decision within 24 hours of the adoption of the implementing act .


### union financing may cover expenditure for the implementation of the instruments and for the achievement of their objectives , including administrative support associated with the preparation , follow - up , monitoring , audit and evaluation activities directly necessary for such implementation , as well as expenditure at union delegations on the administrative support needed to manage operations financed under the instruments . ### union financing may cover expenditure for the implementation of the instruments and for the achievement of their objectives ; this concerns administrative support associated with the preparation , follow - up , monitoring , audit and evaluation activities directly necessary for such implementation , as well as expenditure at union delegations on the administrative support needed to manage operations financed under the instruments .


### provided that the activities listed in points , and are related to the general objectives of the applicable instrument implemented through the action , union financing may cover ### provided that the activities listed in points , and are related to the specific objectives of the applicable instrument implemented through the action , union financing may cover


### the types of financing referred to in paragraph 1 and in article 6 , and the methods of implementation referred to in paragraph 3 , shall be chosen on the basis of their ability to achieve the specific objectives of the actions , taking into account , inter alia , the costs of controls , the administrative burden , and the expected risk of non - compliance . for grants , this shall include a consideration of the use of lump sums , flat rates and scales of unit costs . ### the types of financing referred to in paragraph 1 and in article 6 , and the methods of implementation referred to in paragraph 3 , shall be chosen on the basis of their ability to achieve the specific objectives of the actions , taking into account the costs of controls , the administrative burden , and the expected risk of non - compliance . for grants , this shall include a consideration of the use of lump sums , flat rates and scales of unit costs .


### while having recourse to a type of financing referred to in paragraph 1 or article 6 , cooperation between the union and its partners may take the form , inter alia , of ### while having recourse to a type of financing referred to in paragraph 1 or article 6 , cooperation between the union and its partners may take the form of


### all supplies and goods purchased under a procurement contract , or in accordance with a grant agreement , financed under this regulation shall originate from an eligible country . however , they may originate from any country when the use of the competitive negotiated procedure is allowed . for the purposes of this regulation , the term ‘ origin’ is defined in the relevant union legislation on rules of origin for customs purposes . ### all supplies and goods , including the goods , works and services covered by the oecd - dac good procurement practices , purchased under a procurement contract , or in accordance with a grant agreement , financed under this regulation shall originate from an eligible country . the use of country procurement systems should be the default option when a country included in the dac list of oda recipients of the oecd is the recipient of said grant . however , they may originate from any country when the use of the competitive negotiated procedure is allowed . for the purposes of this regulation , the term ‘ origin’ is defined in the relevant union legislation on rules of origin for customs purposes .


### where the financial regulation provides for discretion in the choice of the contractor , priority shall be given where appropriate to local and regional procurement . ### where the financial regulation provides for discretion in the choice of the contractor , priority shall be given to local and regional procurement .


### by way of derogation from all other rules , eligibility as defined in this title may be restricted with regard to the nationality , localisation or nature of applicants , where required by the nature and the objectives of the action and as necessary for its effective implementation . such restrictions may apply in particular to the participation in awarding procedures in the case of cross - border cooperation actions . ### in exceptional and duly justified cases , eligibility as defined in this title may be restricted with regard to the nationality , localisation or nature of applicants , where required by the specific nature and objectives of the action and as necessary for its effective implementation .


### developing countries and territories , as defined as defined by the development assistance committee of the organisation for economic cooperation and development , which are not members of the g - 20 group , , and overseas countries and territories covered by council decision [ 2001 / 822 / ec of 27 november 2001 ] ; ### developing countries and territories , as included in the dac list of oda recipients published by the development assistance committee of the organisation for economic cooperation and development , and overseas countries and territories covered by council decision [ 2001 / 822 / ec of 27 november 2001 ] ;


### a member state of the oecd - dac , in the case of contracts implemented in a least developed country , as defined by the oecd - dac . ### a member state of the oecd , in the case of contracts implemented in a least developed country or a highly indebted poor country , as included in the dac list of oda recipients published by the oecd - dac .


### countries having traditional economic , trade or geographical links with neighbouring beneficiary countries , or ### countries having traditional economic , trade or geographical links with neighbouring beneficiary countries or regions , or


### the biennal report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess the results of the union ' s financial assistance , using as far as possible , specific and measurable indicators of its role in meeting the objectives of the instruments . ### the biennial report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of all relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess , with a view of achieving the objectives of each instrument , the complementarity and synergies between the instruments financed under the eu budget , and assess the results of the union ' s financial assistance , on the basis of pre - defined , clear , transparent and measurable indicators . for the dci and for all actions related to climate change , the report shall also clearly demonstrate the leverage effect of funds leveraged through the private sector , as well as their contribution to poverty eradication and their alignment to aid effectiveness principles , or , in the case of climate finance , their conformity to unfccc priority areas and commitments .


### the funding allocated in the context of the instruments shall be subject to an annual tracking system based on the oecd methodology , integrated into the existing methodology for performance management of eu programmes , to quantify the expenditure related to climate action and biodiversity at the level of the action programmes , individual and special measures referred to in article 2 , and recorded within evaluations and biennal reports . an annual estimate of the overall spending related to climate action and biodiversity shall be made on the basis of the adopted indicative programming documents . ### the funding allocated in the context of the instruments shall be subject to an annual tracking system based on the oecd methodology , integrated into the existing methodology for performance management of eu programmes , to quantify the expenditure related to climate action and biodiversity at the level of the action programmes , individual and special measures referred to in article 2 , and recorded within evaluations and biennial reports . an annual estimate of the overall spending related to climate action and biodiversity , as well as a separate calculation of the funds provided and to be provided to developing countries for climate change mitigation and adaption in accordance with the union’s international commitments , shall be made on the basis of the adopted strategic programming documents .


### the adopted decision shall remain in force for the duration of the adopted or modified document , action programme or measure . ### the adopted decision shall remain in force for a period to be indicated in the adopted or modified document , action programme or measure , but not exceeding six months from its adoption .


### review and evaluation of the instruments ### mid - term review and evaluation of the instruments


### no later than 31 december 2017 , a report shall be established by the commission on the achievement of the objectives of each of the instruments by means of result and impact indicators measuring the efficiency of the use of resources and the european added value of the instruments , in view of a decision on the renewal , modification or suspension of the types of actions implemented under the instruments . the report shall , in addition , address the scope for simplification , internal and external coherence , the continued relevance of all objectives , as well as the contribution of the measures to the union priorities for smart , sustainable and inclusive growth . it shall take into account any findings and conclusions on the long - term impact of the instruments . ### no later than 31 march 2017 , the commission shall submit to the european parliament and the council a report evaluating the implementation of each instrument and of this regulation in the first three years , and on the achievement of the objectives by means of result and impact indicators measuring the efficiency of the use of resources and the added value of the instruments , in view of a decision on the renewal , modification or suspension of the types of actions implemented under the instruments . the report shall , in addition , address the scope for simplification , internal and external coherence , including policy coherence for development , as well as the continued relevance of all objectives . it shall take into account any findings and conclusions on the long - term impact of the instruments .


### by virtue of article 43 of the treaty , the council shall adopt measures on fixing prices , levies , aid and quantitative limitations . in the interest of clarity , where article 43 of the treaty applies , this regulation should explicitly refer to the fact that measures will be adopted by the council on that basis . ### delete


### modify the dates laid down in article 56 ; ### delete


### article 296 [ to be deleted after 31 / 12 / 2010 ] specific provisions for the fruit and vegetables sector with regard to the fruit and vegetables sector , member states may pay a state aid until 31 december 2010 under the following conditions : the state aid is paid only to producers of fruit and vegetables who are not members of a recognised producer organisation and who sign a contract with a recognised producer organisation in which they accept that they shall apply the crisis prevention and management measures of the producer organisation concerned ; the amount of aid paid to such producers is no more than 75 % of the union support received by the members of the producer organisation concerned ; and the member state concerned presents a report to the commission by 31 december 2010 on the effectiveness and efficiency of the state aid , in particular analysing how much it has supported the organisation of the sector . the commission will examine the report and decide whether to make any appropriate proposals . ### delete


### save where explicitly provided otherwise , the commission should adopt those implementing acts in accordance with the provisions of regulation no xx / xxxx of the european parliament and the council on [ title of regulation ] . ### in order to ensure uniform conditions for the implementation of this regulation , implementing powers should be conferred on the commission . those powers should be exercised in accordance with regulation no 182 / 2011 of the european parliament and of the council of 16 february 2011 laying down the rules and general principles concerning mechanisms for control by member states of the commission ' s exercise of implementing powers1 . _____________________ 1 oj l 55 , 28 . 2 . 2011 , p . 13 .


### in respect of certain measures under this regulation which require swift action or which consist in the mere application of general provisions to specific situations without involving discretion , the commission should be empowered to adopt implementing acts without the assistance of the committee . ### in respect of certain measures under this regulation which require swift action or which consist in the mere application of general provisions to specific situations without involving discretion , the commission should be empowered to adopt implementing acts without the application of regulation no 182 / 2011 .


### in order to take into account the specificities of the fruit and vegetables and processed fruit and vegetables sectors , the commission shall , if necessary , fix the marketing years for those products by means of delegated acts . ### in order to take into account the specificities of the fruit and vegetables and processed fruit and vegetables sectors , the commission shall , if necessary , fix the marketing years for those products by means of delegated acts adopted in accordance with article 321 .


### shall be opened for beef and veal by the commission , by means of implementing acts without the assistance of the committee referred to in article 323 , if the average market price for beef and veal over a representative period in a member state or in a region of a member state recorded on the basis of the union scale for the classification of carcasses as referred to in article 34 is below eur 1560 / tonne . ### shall be opened for beef and veal by the commission , by means of implementing acts adopted without the application of article 323 , if the average market price for beef and veal over a representative period in a member state or in a region of a member state recorded on the basis of the union scale for the classification of carcasses as referred to in article 34 is below eur 1560 / tonne , paying particular attention to the principles of territorial cohesion so as to take account of the impact on regional markets , whose economies largely depend on this type of product .


### measures on the fixing of the aid amounts shall be taken by the council in accordance with article 43 of the treaty . ### the aid amounts referred to in paragraph 1 shall be fixed by the commission by means of implementing acts adopted in accordance with article 323 , taking into account the reference price for skimmed milk powder set out in point of article 8 , and the development of the market situation as regards skimmed milk and skimmed milk powder . the aid referred to in the first subparagraph may be varied by the commission , depending upon whether the skimmed milk is processed into casein or caseinates and upon the quality of those products .


### measures on the fixing of refunds shall be taken by the council in accordance with article 43 of the treaty . ### refunds shall be fixed by the commission by means of implementing acts adopted in accordance with article 323 . they may be fixed : at regular intervals ; by tendering procedures for cereals , rice , sugar and milk and milk products . except where fixed by tendering procedure , the commission shall fix the list of products on which an export refund is granted and the amount of export refunds at least once every three months . the amount of the refund may , however , remain at the same level for more than three months and may , where necessary , be adjusted in the intervening period by the commission , without the application of article 323 , either at the request of a member state or on its own initiative . 3 . one or more of the following aspects shall be taken into account when refunds for a certain product are being fixed : the existing situation and the future trend with regard to : prices and availabilities of that product on the union market , prices for that product on the world market ; the aims of the common market organisation , which are to ensure equilibrium and the natural development of prices and trade on this market ; the need to avoid disturbances likely to cause a prolonged imbalance between supply and demand on the union market ; the economic aspects of the proposed exports ; the limits resulting from agreements concluded in accordance with article 218 of the treaty ; the need to establish a balance between the use of union basic products in the manufacture of processed goods for export to third countries and the use of third country products brought in under processing arrangements ; the most favourable marketing costs and transport costs from union markets to union ports or other places of export , together with forwarding costs to the countries of destination ; demand on the union market ; in respect of the pigmeat , eggs and poultrymeat sectors , the difference between prices within the union and prices on the world market for the quantity of feed grain input required for the production in the union of products of those sectors .


### article 40 special market measures in the cereals sector in order to react efficiently and effectively against threats of market disturbance , where the market situation so dictates , the commission may , by means of delegated acts , adopted where necessary under the urgency procedure , take special intervention measures in respect of the cereals sector . such intervention measures may in particular be taken if , in one or more regions of the union , market prices fall , or threaten to fall , in relation to the intervention price . ### article 40 special market measures in the cereals sector in order to react efficiently and effectively against threats of market disturbance , where the market situation so dictates , the commission may , by means of delegated acts , adopted where necessary under the urgency procedure provided for in article 322 , take special intervention measures in respect of the cereals sector . such intervention measures may be taken if , in one or more regions of the union , market prices fall , or threaten to fall , in relation to the intervention price .


### if the surplus levy provided for in paragraph 1 has not been paid before the due date and after consultation of the committee on the agricultural funds established by regulation no 1290 / 2005 , the commission shall deduct by means of implementing acts pursuant to article 81 of this regulation a sum equivalent to the unpaid surplus levy from the monthly payments within the meaning of articles 14 and 15 of regulation no 1290 / 2005 . before taking its decision , the commission shall warn the member state concerned , which shall make its position known within one week . article 17 of regulation no 1290 / 2005 shall not apply . ### if the surplus levy provided for in paragraph 1 has not been paid before the due date the commission shall , after consulting the committee on the agricultural funds established by article 41 of regulation no 1290 / 2005 , deduct a sum equivalent to the unpaid surplus levy from the monthly payments within the meaning of articles 14 and 15 of that regulation . before taking its decision , the commission shall warn the member state concerned , which shall make its position known within one week . article 17 of regulation no 1290 / 2005 shall not apply .


### in order to ensure that undertakings referred to in article 51 comply with their obligations , the commission may adopt , by means of delegated acts , rules on granting and withdrawal of approval of such undertakings , as well as the criteria for administrative penalties . ### in order to ensure that undertakings referred to in article 51 comply with their obligations , the commission may adopt , by means of delegated acts adopted in accordance with article 321 , rules on granting and withdrawal of approval of such undertakings , on modifying the dates laid down in article 56 , as well as the criteria for administrative penalties .


### measures on the fixing of the production refund referred to in paragraph 1 shall be taken by the council in accordance with article 43 of the treaty . ### the production refund referred to in paragraph 1 shall be fixed by the commission , by means of implementing acts adopted in accordance with article 323 , taking into account , in particular : the costs arising from the use of imported sugar that the industry would have to bear in the event of supply from the world market ; and the price of surplus sugar available on the union market or , if there is no surplus sugar on that market , the reference price for sugar set out in point of article 8 .


### the conditions according to which the member states shall grant the authorisations as regards the use of casein and caseinates ; the obligations to be respected by the undertakings authorised in accordance with point ; ### rules in accordance with which the member states shall grant the authorisations as regards the use of casein and caseinates , rules relating to duration and content of the authorisations , as well as the products which may be covered ; declaration and account keeping obligations to be respected by the undertakings authorised in accordance with point ;


### measures on fixing the union aid for all milk shall be taken by the council in accordance with article 43 of the treaty . ### measures on fixing the union aid for all milk shall be adopted by the commission , by means of implementing acts in accordance with article 323 , taking into account the need to sufficiently encourage the supply of milk products to educational establishments . aid amounts for eligible milk products other than milk shall be fixed by the commission , by means of implementing acts adopted in accordance with article 323 , taking into account the milk components of the product concerned .


### the consequences of recognition . ### the payment of aid following recognition .


### measures on fixing the aid per box of silkworm eggs used shall be taken by the council in accordance with article 43 of the treaty . ### aid amounts granted to silkworm rearers shall be fixed by the commission , by means of implementing acts adopted in accordance with article 323 , taking into account the organisation of the silkworm rearing sector in certain regions of the union and the need to facilitate the adaptation of supply to the market situation .


### where one or more of the activities referred to in paragraph 2 is pursued by a recognised interbranch organisation in the tobacco sector and is in the general economic interest of those persons whose activities relate to one or more of the products concerned , the member state which has granted recognition , or the commission , without the assistance of the committee referred to in article 323 , where recognition has been granted by the commission , may decide that individuals or groups which are not members of the organisation but which benefit from those activities shall pay the organisation all or part of the subscriptions paid by its members to the extent that such subscriptions are intended to cover costs , other than administrative costs of any description , directly incurred as a result of pursuing the activities in question . ### where one or more of the activities referred to in paragraph 2 is pursued by a recognised interbranch organisation in the tobacco sector and is in the general economic interest of those persons whose activities relate to one or more of the products concerned , the member state which has granted recognition , or , where recognition has been granted by the commission , the commission , by means of implementing acts adopted without the application of article 323 , may decide that individuals or groups which are not members of the organisation but which benefit from those activities shall pay the organisation all or part of the subscriptions paid by its members to the extent that such subscriptions are intended to cover costs , other than administrative costs of any description , directly incurred as a result of pursuing the activities in question .


### the commission may , by means of implementing acts , provide for : the use of licences , and , when necessary , specific rules relating to , in particular , the conditions under which applications for import shall be lodged and authorisation granted within the tariff quota ; ### the commission may , by means of implementing acts adopted in accordance with article 323 , provide for : the use of licences , and , when necessary , specific rules relating to , in particular , the procedures for lodging applications for import , as well as for granting authorisation within the tariff quota ;


### article 281 minimum export prices in order to take account of the development of the market for each of the products of the live plants sector falling within cn code 0601 10 , one or more minimum prices for exports to third countries may be fixed each year in good time before the marketing season . measures on fixing the minimum prices shall be taken by the council in accordance with article 43 of the treaty . exportation of such products shall be permitted only at a price equal to or above the minimum price fixed for the product in question . 2 . the commission shall , by means of implementing acts , adopt all necessary administrative measures related to the first subparagraph of paragraph 1 , having regard to the obligations arising from agreements concluded in accordance with article 218 of the treaty . ### article 281 minimum export prices in order to take account of the development of the market for each of the products of the live plants sector falling within cn code 0601 10 , one or more minimum prices for exports to third countries may be fixed by the commission each year in good time before the marketing season . exportation of such products shall be permitted only at a price equal to or above the minimum price fixed for the product in question . 2 . the commission shall adopt all necessary measures related to the first subparagraph of paragraph 1 by means of implementing acts adopted in accordance with article 323 taking into account , in particular , the prices on international markets and having regard to the obligations arising from agreements concluded in accordance with article 218 of the treaty .


### any time after 1 january 2016 , the commission may decide that paragraphs 1 , 2 and 3 no longer apply . ### any time after 1 january 2016 , the commission may decide , by means of delegated acts adopted in accordance with article 321 , that paragraphs 1 , 2 and 3 no longer apply .


### article 315 measures to resolve specific practical problems the commission shall , by means of implementing acts , adopt the measures which are both necessary and justifiable in an emergency , in order to resolve specific practical problems . such measures may derogate from provisions of this regulation , but only to the extent that , and for such a period , as is strictly necessary . 2 . where it is necessary , in order to resolve the problem in question , the commission shall act in accordance with article 323 . ### article 315 measures to resolve specific practical problems the commission shall , by means of delegated acts in accordance with article 321 , adopt the measures which are both necessary and justifiable in an emergency , in order to resolve specific practical problems . such measures may derogate from provisions of this regulation , but only to the extent that , and for such a period , as is strictly necessary . 2 . where imperative grounds of urgency so require , the urgency procedure provided for in article 322 shall apply to delegated acts adopted pursuant to this article .


### article 321 delegated acts the powers to adopt the delegated acts referred to in this regulation shall be conferred on the commission for an indeterminate period of time . as soon as it adopts a delegated act , the commission shall notify it simultaneously to the european parliament and to the council . 2 . the delegation of power referred to in paragraph 1 may be revoked by the european parliament or by the council . the institution which has commenced an internal procedure for deciding whether to revoke the delegation of power shall endeavour to inform the other institution and the commission within a reasonable time before the final decision is taken , indicating the delegated powers which could be subject to revocation and possible reasons for a revocation . the decision of revocation shall put an end to the delegation of the powers specified in that decision . it shall take effect immediately or at a later date specified therein . it shall not affect the validity of the delegated acts already in force . it shall be published in the official journal of the european union . 3 . the european parliament and the council may object to the delegated act within a period of two months from the date of notification . at the initiative of the european parliament or the council this period shall be extended by one month . if , on expiry of that period , neither the european parliament nor the council has objected to the delegated act , it shall be published in the official journal of the european union and shall enter into force at the date stated therein . the delegated act may be published in the official journal of the european union and enter into force before the expiry of that period if the european parliament and the council have both informed the commission of their intention not to raise objections . if the european parliament or the council objects to a delegated act , it shall not enter into force . the institution which objects shall state the reasons for objecting to the delegated act . ### article 321 delegated acts the power to adopt delegated acts is conferred on the commission subject to the conditions laid down in this article . 2 . the delegation of power shall be conferred on the commission for a period of five years from . . . . the commission shall draw up a report in respect of the delegated power no later than nine months before the end of the five - year period . the delegation of power shall be tacitly extended for periods of an identical duration , unless the european parliament or the council opposes such extension not later than three months before the end of each period . 3 . the delegation of power may be revoked at any time by the european parliament or by the council . a decision to revoke shall put an end to the delegation of the power specified in that decision . it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein . it shall not affect the validity of any delegated acts already in force . 4 . as soon as it adopts a delegated act , the commission shall notify it simultaneously to the european parliament and to the council . 5 . a delegated act adopted pursuant to this regulation shall enter into force only if no objection has been expressed either by the parliament or the council within a period of two months of notification of that act to the european parliament and the council , or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by two months at the initiative of the european parliament or the council . _______________________ 1 date of entry into force of this regulation .


### the european parliament or the council may object to a delegated act adopted under this article in accordance with the procedure referred to in article 321 . in such a case , the act shall cease to apply . the institution which objects to such a delegated act shall state its reasons . ### either the european parliament or the council may object to a delegated act adopted under this article in accordance with the procedure referred to in article 321 . in such a case , the commission shall repeal the act without delay following the notification of the decision to object by the european parliament or by the council .


### article 323 implementing acts committee [ where implementing acts are adopted pursuant to this regulation , the commission shall be assisted by the committee for the common organisation of the agricultural markets and the procedure provided for in article [ 5 ] of regulation no [ xxxx / yyyy ] of the tfeu , currently the subject of discussion by the european parliament and the council ) shall apply . ] 2 . in the cases of urgency provided for in articles 265 , 266 , 282 and 315 of this regulation , the procedure provided for in article [ 6 ] of regulation no [ xxxx / yyyy ] shall apply . ### article 323 committee procedure the commission shall be assisted by a committee which shall be referred to as the committee for the common organisation of the agricultural markets . that committee shall be a committee within the meaning of regulation no 182 / 2011 . 1a . where reference is made to this paragraph , article 5 of regulation no 182 / 2011 shall apply . 2 . where reference is made to this paragraph , article 8 of regulation no 182 / 2011 , in conjunction with article 5 thereof , shall apply .


### a series of problems in eu mortgage markets associated with irresponsible lending and borrowing at the pre - contractual stage and the potential scope for irresponsible behaviour by credit intermediaries and non - credit institutions have been identified . some problems concerned loans denominated in a foreign currency which consumers had taken out in that currency to take advantage of the interest rate offered but without having an adequate understanding of the currency risk involved . these problems are driven by market and regulatory failures as well as other factors such as the general economic climate and low levels of financial literacy . other problems include ineffective , inconsistent , or non - existent registration , authorisation and supervision regimes for credit intermediaries and non - credit institutions providing credit for residential immovable property . the problems identified have potentially significant macroeconomic spill - over effects , can lead to consumer detriment , act as economic or legal barriers to cross - border activity and create an unlevel playing field between actors . ### a series of problems in eu mortgage markets associated with irresponsible lending and borrowing and the potential scope for irresponsible behaviour by market participants including credit intermediaries and non - credit institutions have been identified . some problems concerned loans denominated in a foreign currency which consumers had taken out in that currency to take advantage of the interest rate offered but without having an adequate understanding of the currency risk involved . these problems are driven by market and regulatory failures as well as other factors such as the general economic climate and low levels of financial literacy . other problems include ineffective , inconsistent , or non - existent regulation of , or registration , authorisation and supervision regimes for , credit intermediaries and non - credit institutions providing credit for residential immovable property . the problems identified have potentially significant macroeconomic spill - over effects , can lead to consumer detriment , act as economic or legal barriers to cross - border activity and create an unlevel playing field between actors .


### in order to facilitate the emergence of a smoothly functioning internal market with a high level of consumer protection in the area of credit agreements relating to residential immovable property , a harmonised union framework needs to be established in a number of areas . it is further necessary to establish harmonised standards in order to ensure that consumers looking for credit agreements relating to residential immovable property are able to do so confident in the knowledge that the institutions they interact with act in a professional and responsible manner . ### in order to facilitate the emergence of a smoothly functioning , transparent , efficient and competitive internal market in the area of credit agreements relating to residential immovable property , a harmonised union framework needs to be established in a number of areas . this framework should be achieved through consistent , flexible and fair mortgage credit agreements in a way which promotes sustainable lending and borrowing and hence achieves a high level of consumer protection . it is further necessary to establish harmonised standards in order to ensure that consumers looking for credit agreements relating to residential immovable property are able to do so confident in the knowledge that the institutions they interact with act in a professional and responsible manner . in some areas it is appropriate to have a high degree of harmonisation to facilitate the internal market . in other areas , given the significant differences between the residential immovable property markets , structures of loans available or customary and macro - economic contexts , it is appropriate to set up a union framework that allows some tailoring of standards to the local context .


### this directive should improve conditions for the establishment and functioning of the internal market through the approximation of member states ' laws and the establishment of quality standards for certain services , notably with regard to the distribution and provision of credit through creditors and credit intermediaries . the establishment of quality standards for services for the provision of credit necessarily involves the introduction of provisions regarding authorisation and prudential requirements . ### this directive should improve conditions for the establishment and functioning of the internal market through the approximation of member states ' laws , the promotion of good practices and the establishment of quality standards for certain services , notably with regard to the distribution and provision of credit through creditors and credit intermediaries . the establishment of quality standards for services for the provision of credit necessarily involves the introduction of provisions regarding authorisation and prudential requirements .


### for those areas not covered by this directive , member states should be free to maintain or introduce national legislation . member states should be able to maintain or introduce national provisions in areas such as contract law relating to the validity of credit agreements , property valuation , land registration , contractual information , post - contractual issues , and handling defaults . ### for those areas not covered by this directive , member states should be free to maintain or introduce national legislation . member states should be able to maintain or introduce national provisions in areas such as contract law relating to the validity of credit agreements , aspects of property valuation not regulated by this directive , land registration , contractual information and post - contractual issues to the extent that they are not regulated by this directive .


### as consumers and enterprises are not in the same position , they do not need the same level of protection . while it is important to guarantee consumers ' rights by provisions that cannot be derogated from by contract , it is reasonable to let enterprises and organisations engage in other agreements . this directive should therefore apply to credit granted to consumers . member states should , however , have the possibility to extend the scope to natural or legal persons that are not consumers , notably micro - enterprises , as defined by commission recommendation 2003 / 361 / ec of 6 may 2003 concerning the definition of micro , small and medium - sized enterprises . ### as consumers and enterprises are not in the same position , they do not need the same level of protection . while it is important to guarantee consumers’ rights by provisions that cannot be derogated from by contract , it is reasonable to let enterprises and organisations engage in other agreements . this directive should therefore apply to the provision of credit to consumers . member states should , however , have the possibility to extend the scope to natural or legal persons that are not consumers , notably micro - enterprises , as defined by commission recommendation 2003 / 361 / ec of 6 may 2003 concerning the definition of micro , small and medium - sized enterprises .