### ensure that the tsis and the specifications for registers are adapted to technical progress and market trends and to social requirements ; ### ensure that the tsis and the specifications for registers are adapted to technical progress and market trends and to social requirements , while taking into account the cost - effectiveness of the railway system ;


### the agency shall issue authorisations for placing in service of the trackside control - command and signalling subsystems located or operated in the entire union in accordance with article 18 of directive … [ the interoperability directive ] . ### the agency shall issue authorisations for placing in service of the trackside ertms located or operated in the entire union in accordance with article 18 of directive … [ the interoperability directive ] .


### the fourth railway package proposes important changes to improve the functioning of the single european railway area through amendments by way of recast to directive 2004 / 49 / ec and directive 2008 / 57 / ec , both directly linked to the tasks of the agency . those directives , together with this regulation , provide in particular for performing tasks related to issuing vehicle authorisations and safety certificates at the union level . it implies a greater role of the agency . ### the fourth railway package proposes important changes to improve the functioning of the single european railway area through amendments by way of recast to directive 2004 / 49 / ec and directive 2008 / 57 / ec , both directly linked to the tasks of the agency . those directives , together with this regulation , provide in particular for performing tasks related to issuing vehicle authorisations and safety certificates at the member state level .


### the agency shall recommend the adoption of a new version of ertms technical specifications . however , it shall only do so when the previous version has been deployed at a sufficient rate . the development of new versions shall not be detrimental to the rate of deployment of the ertms , the stability of the specifications which is needed to optimise the production of ertms equipment , the return on investment for railway undertakings and efficient planning of the deployment of the ertms . ### the agency shall recommend the adoption of a new version of ertms technical specifications . however , it shall only do so when the previous version has been deployed at a sufficient rate . the development of new versions shall not be detrimental to the rate of deployment of the ertms , the stability of the specifications which is needed to optimise the production of ertms equipment , the return on investment for railway undertakings and keepers and efficient planning of the deployment of the ertms .


### the agency shall contribute to identifying potential railway spare parts to be standardised . to this end , the agency may establish a working party in order to coordinate the stakeholders ' activities and may establish contacts with the european standardisation bodies . the agency shall present the commission with appropriate recommendations . ### the agency shall contribute to identifying potential railway spare parts to be standardised . to this end , the agency shall establish a working party in order to coordinate the stakeholders ' activities and shall establish contacts with the european standardisation bodies . the agency shall present the commission with appropriate recommendations two years after the entry into force of this regulation .


### where after the examination referred to paragraph 1 the agency considers that national rules enable the essential requirements for interoperability to be fulfilled , csms to be respected and the csts to be achieved , and that they would not result in arbitrary discrimination or a disguised restriction on rail transport operation between member states , the agency shall inform the commission and the member state concerned about its positive assessment . the commission may validate the rule in the it system referred to in article 23 . ### where after the examination referred to paragraph 1 the agency considers , in particular on the basis of explanations provided by the member states and where it judges necessary , after consultation with the stakeholders , that the national rule in question : falls under the cases listed in article 14 of directive . . / . . / eu [ the interoperability directive ] and article 8 of directive . . / . . / eu [ the railway safety directive ] ; makes it possible to fulfil essential requirements for interoperability , comply with csms and achieve csts ; has not been adopted solely for discriminatory purposes or in order to create disguised restrictions on rail transport operation ; shall inform the commission and the member state concerned of its favourable opinion within two months of the notification of the proposed rule by the member state . if no opinion is forthcoming within two months of the notification it shall be deemed to have been approved . the commission shall validate the rule in the it system referred to in article 23 within five days of notification by the agency of a favourable opinion or , in the case of implicit approval in accordance with point of the first sub - paragraph , following the expiry of the two - month period after notification of the proposed rule by the member state .


### the appeal , together with the statement of grounds thereof , shall be filed in writing at the agency within two months of the notification of the measure to the person concerned , or , if the person is not notified of the measure , within two months of the day on which it came to their knowledge . ### the appeal , together with the statement of grounds thereof , shall be filed in writing at the agency within two months of the notification of the measure to the person concerned , or , if the plaintiff is not the person notified of the decision , within two months of the day on which the plaintiff was made aware of the decision .


### the agency shall issue authorisations for placing on the market for railway vehicles in accordance with article 20 of directive … [ the interoperability directive ] . ### the agency shall issue authorisations for placing on the market for railway vehicles in accordance with article 20 of directive … [ the interoperability directive ] in close cooperation with the national authorities . national agencies shall be responsible for processing applications and verifying the operational compatibility of subsystems , including relevant evidence in relation to rolling stock . they shall cooperate with the agency in order to ensure the correct development of subsystems across the eu . before taking a decision , the agency shall verify the application and ask the national agency to make the appropriate changes .


### an appeal lodged pursuant to paragraph 1 shall not have a suspensory effect . the agency may , however , suspend the application of the decision appealed against , if it considers that circumstances so permit . ### an appeal lodged pursuant to paragraph 1 shall not have a suspensory effect . the agency may , however , suspend the application of the decision appealed against , if it considers that circumstances so permit , as long as the suspension of the decision does not affect railway safety .


### the term of office of the members and alternates of a board of appeal shall be four years and may be renewed . ### the term of office of the members and alternates of a board of appeal shall be four years and may be renewed once .


### the appeal , together with the statement of grounds thereof , shall be filed in writing at the agency within two months of the notification of the measure to the person concerned , or , if the person is not notified of the measure , within two months of the day on which it came to their knowledge . ### the appeal , together with the statement of grounds thereof , shall be filed in writing at the agency within two months of the notification of the measure to the person concerned , or , the absence of a decision within the time limit defined pursuant to articles 12 , 16 , 17 and 18 .


### the agency , while performing its tasks , and particularly in relation to drafting recommendations , should take upmost account of external railway expertise . this expertise should predominantly consist of professionals from the railway sector and the relevant national authorities . they should form competent and representative working parties of the agency . ### the agency , while performing its tasks , and particularly in relation to drafting recommendations , should take upmost account of external railway expertise . this expertise should predominantly consist of professionals from the railway sector and the relevant national authorities . they should form competent and representative working parties of the agency . the agency should bear in mind the need to maintain balance between the risks and the benefits , in particular as regards the management of conflicts of interest , on the one hand , and the objective of obtaining the best possible expertise , on the other .


### address recommendations to member states concerning the application of articles 21 , 22 and 30 ; ### address recommendations to member states concerning the application of articles 21 , 22 and 30 and to the national safety authorities concerning the application of article 29 ;


### the procedure described in paragraphs 2 and 3 shall apply , mutatis mutandis , in cases where the agency becomes aware of any national rule , notified or not , being redundant or in conflict with the csms , csts , tsis or any other union legislation in the railway field . ### the procedure described in paragraphs 2 , 3 and 4 shall apply , mutatis mutandis , in cases where the agency becomes aware of , or is informed about , any national rule , notified or not , being redundant or in conflict with the csms , csts , tsis or any other union legislation in the railway field or creating an unjustified barrier to the single railway market . in that instance , the time limit laid down in paragraph 1 shall apply .


### competent national authorities have been normally charging for issuing vehicle authorisations and safety certificates . with the transfer competence to the union level , the agency should be entitled to charge the applicants for issuing the certificates and authorisations mentioned in the preceding recitals . the level of those charges should be equal to or lower than the current average in the union and should be determined in a delegated act to be adopted by the commission . ### competent national authorities have been normally charging for issuing vehicle authorisations and safety certificates . with the transfer competence to the union level , the agency should be entitled to charge the applicants for issuing the certificates and authorisations mentioned in the preceding recitals . the level of those charges should be equal to or lower than the current average in the union and should be determined in a delegated act to be adopted by the commission . establishment plan posts financed by those charges should not be subject to the staff reductions foreseen for all union institutions and bodies .


### the delegation of power referred to in article 73 shall be conferred on the commission for an indeterminate period of time from the date of entry into force of this regulation . ### the power to adopt delegated acts referred to in article 73 shall be conferred on the commission for a period of five years from the date of entry into force of this regulation . the commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five - year period . provided the report has been received , 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 .


### the agency should contribute to the creation and effective functioning of a single european railway area without frontiers and guaranteeing a high level of safety while improving the competitive position of the railway sector . that should be attained by contributing , on technical matters , to the implementation of european union legislation by enhancing the level of interoperability of railway systems and to developing a common approach to safety on the european railway system . the agency should also perform the role of european authority responsible for issuing authorisations for placing on the market for railway vehicles and for types of vehicles , safety certificates for railway undertakings and authorisations for placing in service of trackside control - command and signalling sub - systems . moreover , it should monitor national railway rules and the performance of national authorities acting in the railway interoperability and safety fields . ### the agency should contribute to the creation and effective functioning of a single european railway area without frontiers and guaranteeing a high level of safety while improving the competitive position of the railway sector . that should be attained by contributing , on technical matters , to the implementation of european union legislation by enhancing the level of interoperability of railway systems . the agency should monitor national railway rules and the performance of national authorities acting in the railway interoperability and safety fields .


### ' e - call in - vehicle system ' means a system activated either automatically via in - vehicle sensors or manually , which carries , by means of mobile wireless communications networks , a standardised minimum set of data and establishes a 112 - based audio channel between the occupants of the vehicle and a public safety answering point ; ### ' ecall in - vehicle system ' means an emergency system , composed of the in - vehicle equipment and the means to trigger , manage and effect the ecall transmission , that is activated either automatically via in - vehicle sensors or manually , which carries , by means of a public mobile wireless communications networks , a standardised minimum set of data and establishes a 112 - based audio channel between the occupants of the vehicle and a public safety answering point ;


### the mandatory equipping of vehicles with the ecall in - vehicle system should be without prejudice to the right of all stakeholders such as car manufacturers and independent operators to offer additional emergency and / or added value services , in parallel with or building on the 112 - based ecall in - vehicle system . however , these additional services should be designed not to increase driver distraction . ### the mandatory equipping of vehicles with the ecall in - vehicle system should be without prejudice to the right of all stakeholders such as car manufacturers and independent operators to offer additional emergency and / or added value services , in parallel with or building on the 112 - based ecall in - vehicle system . however , these additional services should be designed not to increase driver distraction and should comply with all safety , security and data protection provisions . these additional services must be optional for consumers and deactivatable at any time .


### in order to ensure open choice for customers and fair competition , as well as encourage innovation and boost the competitiveness of the union’s information technology industry on the global market , the ecall in - vehicle system should be accessible free of charge and without discrimination to all independent operators and based on an interoperable and open - access platform for possible future in - vehicle applications or services . ### in order to ensure open choice for customers and fair competition , as well as encourage innovation and boost the competitiveness of the union’s information technology industry on the global market , private or added value ecall in - vehicle systems should be based on the principle of data portability .


### the mandatory equipping of vehicles with the ecall in - vehicle system should initially apply only to new passenger cars and light commercial vehicles for which an appropriate triggering mechanism already exists . ### the mandatory equipping of vehicles with the ecall in - vehicle system should initially apply only to new passenger cars and light commercial vehicles for which an appropriate triggering mechanism already exists . the commission ought , however , to assess the possibility of extending the mandatory ecall in - vehicle system to other categories of vehicles not covered by this regulation .


### vehicle manufacturers should be allowed sufficient time to adapt to the technical requirements of this regulation . ### when complying with technical requirements , vehicle manufacturers should integrate technical forms of data protection into in - vehicle systems and should comply with the principle of ‘ privacy by design’ .


### a delegated act adopted pursuant to article 5 , article 6 and article 8 , 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 of the council . ### a delegated act adopted pursuant to article 5 , article 6 and article 8 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 two months at the initiative of the european parliament or of the council .


### only those ecall in - vehicle systems which can be tested shall be accepted for the purposes of type - approval . ### only those embedded ecall in - vehicle systems which can be tested shall be accepted for the purposes of type - approval .


### the commission shall be empowered to adopt delegated acts in accordance with article 9 establishing the detailed technical requirements and tests for the type - approval of ecall in - vehicle systems and amending directive 2007 / 46 / ec accordingly . ### the commission shall be empowered to adopt delegated acts in accordance with article 9 establishing the detailed technical requirements and tests for the type - approval of ecall in - vehicle systems .


### any necessary additional information regarding the processing of personal data in relation to the provision of a private ecall service and / or other added value services . ### any necessary additional information regarding the processing of personal data in relation to the provision of a private ecall service and / or other added value services , taking particular account of the fact that differences may exist between the data processing carried out through the ecall in - vehicle system and the private ecall systems or other added value service , especially with regard to constant tracking of the vehicle .


### according to the recommendations made by the article 29 data protection working party and contained in the ' working document on data protection and privacy implications in ecall initiative ' , adopted on 26 september 20069 , any processing of personal data through the ecall in - vehicle system should comply with the personal data protection rules provided for in directive 95 / 46 / ec of the european parliament and of the council of 24 october 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data10 and in directive 2002 / 58 / ec of the european parliament and of the council of 12 july 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector 11 , in particular to guarantee that vehicles equipped with ecall in - vehicle systems , in their normal operational status related to 112 ecall , are not traceable and are not subject to any constant tracking and that the minimum set of data sent by the in - vehicle ecall system includes the minimum information required for the appropriate handling of emergency calls . __________________ 9 1609 / 06 / en – wp 125 . 10 oj l 281 , 23 . 11 . 1995 , p . 31 . 11 oj l 201 , 31 . 7 . 2002 , p . 37 . ### according to the recommendations made by the article 29 data protection working party and contained in the ' working document on data protection and privacy implications in ecall initiative ' , adopted on 26 september 20069 , any processing of personal data through the ecall in - vehicle system should comply with the personal data protection rules provided for in directive 95 / 46 / ec of the european parliament and of the council of 24 october 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data10 and in directive 2002 / 58 / ec of the european parliament and of the council of 12 july 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector , in particular to guarantee that vehicles equipped with ecall in - vehicle systems , in their normal operational status related to 112 ecall , are not traceable and are not subject to any constant tracking and that the minimum set of data sent by the in - vehicle ecall system includes the minimum information required for the handling of emergency calls by public service answering points . __________________ 9 1609 / 06 / en – wp 125 . 10 oj l 281 , 23 . 11 . 1995 , p . 31 . 11 oj l 201 , 31 . 7 . 2002 , p . 37 .


### the provision of accurate and reliable positioning information is an essential element of the effective operation of the ecall in - vehicle system . therefore , it is appropriate to require its compatibility with the services provided by satellite navigation programmes , including the systems established under the galileo and egnos programmes set out in regulation no 683 / 2008 of the european parliament and of the council of 9 july 2008 on the further implementation of the european satellite navigation programmes 8 . __________________ 8 oj l 196 , 24 . 7 . 2008 , p . 1 . ### the provision of accurate and reliable positioning information in emergencies is an essential element of the effective operation of the ecall in - vehicle system . therefore , it is appropriate to require its compatibility with the services provided by satellite navigation programmes , including the systems established under the galileo and egnos programmes set out in regulation no 683 / 2008 of the european parliament and of the council of 9 july 2008 on the further implementation of the european satellite navigation programmes 8 . __________________ 8 oj l 196 , 24 . 7 . 2008 , p . 1 .


### manufacturers shall demonstrate that all their new types of vehicle are constructed to ensure that in the event of a severe accident which occurs in the territory of the union , an ecall to the single european emergency number 112 is triggered automatically . ### manufacturers shall demonstrate that all their new types of vehicle are constructed to ensure that in the event of a severe accident , detected by activation of one or more sensors and / or processors within the vehicle , which occurs in the territory of the union , an ecall to the emergency number 112 is triggered automatically .


### the commission shall be empowered to adopt delegated acts in accordance with article 9 which shall define further the requirement of the absence of traceability and tracking and the privacy enhancing technologies referred to in paragraph 1 as well as the modalities of the private data processing and of the user information referred to in paragraph 3 . ### the commission shall be empowered to adopt delegated acts in accordance with article 9 defining further the requirement of the absence of traceability and tracking and the privacy enhancing technologies referred to in paragraph 1 of this article as well as the modalities of the personal data processing and of the user information referred to in paragraph 3 of this article .


### in order to ensure open choice for customers and fair competition , as well as encourage innovation and boost the competitiveness of the union’s information technology industry on the global market , the ecall in - vehicle system should be accessible free of charge and without discrimination to all independent operators and based on an interoperable and open - access platform for possible future in - vehicle applications or services . ### the 112 ecall in - vehicle system is a public service of general interest and must therefore be freely accessible , i . e . provided free of charge . the costs of the 112 ecall system must not be passed on to consumers .


### manufacturers shall demonstrate that all new types of vehicles referred to in article 2 are equipped with an ecall in - vehicle system , in accordance with this regulation and the delegated acts adopted pursuant to this regulation . ### manufacturers shall demonstrate that all new types of vehicles referred to in article 2 are equipped with an embedded ecall in - vehicle system , in accordance with this regulation and the delegated acts adopted pursuant to this regulation .


### the ecall in - vehicle system shall be accessible to all independent operators free of charge and without discrimination at least for repair and maintenance purposes . ### the ecall in - vehicle system shall be accessible to all independent operators free of charge and without discrimination for repair and maintenance purposes .


### the minimum set of data sent by the ecall in - vehicle system shall include only the minimum information required for the appropriate handling of emergency calls . ### the minimum set of data sent by the ecall in - vehicle system shall include only the minimum information required for the appropriate handling of emergency calls . this minimum set of data may only be stored for as long as required for the appropriate handling of emergency calls .


### the mandatory equipping of vehicles with the ecall in - vehicle system should be without prejudice to the right of all stakeholders such as car manufacturers and independent operators to offer additional emergency and / or added value services , in parallel with or building on the 112 - based ecall in - vehicle system . however , these additional services should be designed not to increase driver distraction . ### the mandatory equipping of vehicles with the ecall in - vehicle system should be without prejudice to the right of all stakeholders such as car manufacturers and independent operators to offer additional emergency and / or added value services , in parallel with or building on the 112 - based ecall in - vehicle system . however , any additional services should be designed not to increase driver distraction and should comply with clear safety , security and data protection privacy standards . those services should always remain optional for consumers .


### the european parliament and the council may object to a 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 two months . ### the european parliament and the council may object to a delegated act within a period of three months from the date of notification . at the initiative of the european parliament or the council this period shall be extended by three months .


### member states shall ensure that the limitation period is suspended if a competition authority takes action for the purpose of the investigation or proceedings in respect of an infringement to which the action for damages relates . the suspension shall end at the earliest one year after the infringement decision has become final or the proceedings are otherwise terminated . ### member states shall ensure that the limitation period is suspended if a competition authority takes action for the purpose of the investigation or proceedings in respect of an infringement to which the action for damages relates . the suspension shall end at the earliest two years after the decision , through which the procedure concerning the infringement or alleged infringement has been closed , has become final .


### member states shall ensure that the limitation period is suspended if a competition authority takes action for the purpose of the investigation or proceedings in respect of an infringement to which the action for damages relates . the suspension shall end at the earliest one year after the infringement decision has become final or the proceedings are otherwise terminated . ### member states shall ensure that the limitation period is suspended if a competition authority takes action for the purpose of the investigation or proceedings in respect of an infringement to which the action for damages relates . the suspension shall end at the earliest two years after the infringement decision has become final or the proceedings are otherwise terminated .


### member states shall ensure that , following a consensual settlement , the claim of the settling injured party is reduced by the settling co - infringer ' s share of the harm that the infringement inflicted upon the injured party . non - settling co - infringers cannot recover contribution from the settling co - infringer for the remaining claim . only when the non - settling co - infringers are not able to pay the damages that correspond to the remaining claim can the settling co - infringer be held to pay damages to the settling injured party . ### member states shall ensure that , following a consensual settlement , the claim of the settling injured party is reduced by the settling co - infringer ' s share of the harm that the infringement inflicted upon the injured party . non - settling co - infringers cannot recover contribution from the settling co - infringer for the remaining claim . only when the non - settling co - infringers are not able to pay the damages that correspond to the remaining claim can the settling co - infringer be held to pay damages to the settling injured party , unless this is expressly excluded by the settlement conditions .


### article 5 disclosure of evidence member states shall ensure that , where a claimant has presented reasonably available facts and evidence showing plausible grounds for suspecting that he , or those he represents , has suffered harm caused by the defendant ' s infringement of competition law , national courts can order the defendant or a third party to disclose evidence , regardless of whether or not this evidence is also included in the file of a competition authority , subject to the conditions set out in this chapter . member states shall ensure that courts are also able to order the claimant or a third party to disclose evidence on request of the defendant . this provision is without prejudice to the rights and obligations of national courts under council regulation no 1206 / 2001 . 2 . member states shall ensure that national courts order the disclosure of evidence referred to in paragraph 1 where the party requesting disclosure has shown that evidence in the control of the other party or a third party is relevant in terms of substantiating his claim or defence ; and specified either pieces of this evidence or categories of this evidence defined as precisely and narrowly as he can on the basis of reasonably available facts . 3 . member states shall ensure that national courts limit disclosure of evidence to that which is proportionate . in determining whether any disclosure requested by a party is proportionate , national courts shall consider the legitimate interests of all parties and third parties concerned . they shall , in particular , consider : the likelihood that the alleged infringement of competition law occurred ; the scope and cost of disclosure , especially for any third parties concerned ; whether the evidence to be disclosed contains confidential information , especially concerning any third parties , and the arrangements for protecting such confidential information ; and in cases where the infringement is being or has been investigated by a competition authority , whether the request has been formulated specifically with regard to the nature , object or content of such documents rather than by a non - specific request concerning documents submitted to a competition authority or held in the file of such competition authority . 4 . member states shall ensure that national courts have at their disposal effective measures to protect confidential information from improper use to the greatest extent possible whilst also ensuring that relevant evidence containing such information is available in the action for damages . 5 . member states shall take the necessary measures to give full effect to legal privileges and other rights not to be compelled to disclose evidence . 6 . member states shall ensure that , to the extent that their courts have powers to order disclosure without hearing the person from whom disclosure is sought , no penalty for non - compliance with such an order may be imposed until the addressee of such an order has been heard by the court . 7 . evidence shall include all types of evidence admissible before the national court seised , in particular documents and all other objects containing information , irrespective of the medium on which the information is stored . 8 . without prejudice to the obligation laid down in paragraph 4 and the limits laid down in article 6 , this article shall not prevent the member states from maintaining or introducing rules which would lead to wider disclosure of evidence . ### article 5 disclosure of evidence member states shall ensure that in a proceeding relating to an action for damages before a national court in the union upon request of a claimant who has presented a reasoned justification containing available facts and evidence sufficient to support the plausibility of its claim for damages , national courts can order the defendant or a third party to disclose relevant evidence , [ . . . ] subject to the conditions set out in this chapter . member states shall ensure that courts are also able to order the claimant or a third party to disclose evidence upon request of the defendant . this provision is without prejudice to the rights and obligations of national courts under council regulation no 1206 / 2001 . 1a . member states shall ensure that national courts request the disclosure of evidence from the national competition authority where the defendant does not provide the evidence requested . 2 . member states shall ensure that national courts can order the disclosure of specified pieces of evidence or categories thereof , circumscribed as precisely and as narrowly as possible on the basis of reasonably available facts in the reasoned justification , which are in control of the other party or a third party and are necessary for the purpose of estimating the harm caused , pursuant to article 2 of this directive . 3 . member states shall ensure that national courts limit disclosure of evidence to that which is proportionate and which relates to an action for damages in the union . in determining whether any disclosure requested by a party is proportionate , national courts shall consider the public interests involved and the legitimate interests of all private parties and third parties concerned . they shall , in particular , consider : the likelihood that the alleged infringement of competition law occurred ; the need to safeguard the effectiveness of the public enforcement of competition law ; the scope and cost of disclosure , especially for any third parties concerned , also to prevent fishing expeditions ; whether the evidence to be disclosed contains confidential information , especially concerning any third parties , and the arrangements for protecting such confidential information ; and in cases where the infringement is being or has been investigated by a competition authority , whether the request has been formulated specifically with regard to the nature , object or content of such documents [ . . . ] submitted to a competition authority or held in the file of such competition authority . 4 . member states shall ensure that national courts have the power to order disclosure of evidence containing confidential information when they consider it relevant for the action for damages . member states shall ensure that , when ordering disclosure of such information , national courts have at their disposal effective measures to protect such information . 5 . member states shall ensure that national courts give full effect to applicable legal professional privileges under national or union law when ordering the disclosure of evidence . the interest that undertakings have to avoid actions for damages following an infringement shall not constitute a commercial interest worthy of protection . 5a . member states shall ensure that interested parties in possession of a document requested for disclosure are heard before a national court orders disclosure under this article regarding information derived from the specified documents . 6 . member states shall ensure that , to the extent that their courts have powers to order disclosure without hearing the person from whom disclosure is sought , no penalty for non - compliance with such an order may be imposed until the addressee of such an order has been provided with the possibility to be heard by the national court 7 . evidence shall include all types of evidence admissible before the national court seized , in particular documents and all other objects containing information , irrespective of the medium on which the information is stored . 8 . without prejudice to the obligation laid down in paragraph 4 and the limits laid down in article 6 , this article shall not prevent member states from maintaining or introducing rules which would lead to wider disclosure of evidence .


### member states shall ensure that national courts limit disclosure of evidence to that which is proportionate . in determining whether any disclosure requested by a party is proportionate , national courts shall consider the legitimate interests of all parties and third parties concerned . they shall , in particular , consider : ### member states shall ensure that national courts limit disclosure of evidence to that which is proportionate and which relates to an action for damages in the union . in determining whether any disclosure requested by a party is proportionate , national courts shall consider the public interests involved and the legitimate interests of all private parties concerned . they shall , in particular , consider :


### financial framework the financial envelope for the implementation of the programme shall be eur 197 , 000 , 000 in current prices . ### budget the financial envelope for the implementation of the programme , within the meaning of point [ 17 ] of the interinstitutional agreement of xx / 201y between the european parliament , the council and the commission on cooperation in budgetary matters and sound financial management1 , shall be eur 197 000 000 in current prices . the annual appropriation shall be authorised by the budgetary authority . ________________ 1 oj… .


### enhancing consumer education ; ### enhancing consumer and business education about consumer rights ;


### facilitating access to and monitoring of the functioning and the effectiveness of dispute resolution mechanisms for consumers , in particular of alternative dispute resolution schemes , including on - line , also through the development and maintenance of relevant it tools ; ### facilitating access to and monitoring of the functioning and the effectiveness of dispute resolution mechanisms for consumers , in particular of alternative dispute resolution schemes , including on - line , also through the development and maintenance of relevant it tools , and paying specific attention to ensure that vulnerable consumers ' needs and rights are adequately taken into account ;


### it is important to improve consumer protection . to achieve this general objective , specific objectives should be set as regards safety , consumer information and education , rights and redress as well as enforcement in respect of consumer rights . the value and impact of the measures taken under the programme should regularly be monitored and evaluated . for the purposes of evaluating consumer policy indicators should be developed . ### it is important to improve consumer protection . to achieve this general objective , specific objectives should be set as regards safety , consumer information and education , rights and redress as well as enforcement in respect of consumer rights . the value and impact of the measures taken under the programme should regularly be monitored and evaluated . for the purposes of evaluating consumer policy and particularly the precise impact of the measures taken , indicators should be developed .


### the commission may , by means of implementing acts , define the circumstances , formats and procedures for the report referred to in paragraph 3 . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 39 . ### the commission may , by means of implementing acts , define the formats and procedures for the report referred to in paragraph 3 . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 39 .


### the commission shall be empowered to adopt delegated acts in accordance with article 38 concerning the facilitation of cross border interoperability of electronic identification means by setting of minimum technical requirements . ### the commission shall be empowered to adopt delegated acts in accordance with article 38 concerning the facilitation of cross border interoperability of electronic identification means by setting of minimum , technology - neutral , technical requirements .


### a qualified trust service provider shall be liable for any direct damage caused to any natural or legal person due to failure to meet the requirements laid down in this regulation , in particular in article 19 , unless the qualified trust service provider can prove that he has not acted negligently . ### a qualified trust service provider shall be liable for any damage caused to any natural or legal person due to failure to meet the requirements laid down in this regulation , in particular in article 19 , unless the qualified trust service provider can prove that he has acted with due diligence .


### ‘ trust service’ means any electronic service consisting in the creation , verification , validation , handling and preservation of electronic signatures , electronic seals , electronic time stamps , electronic documents , electronic delivery services , website authentication , and electronic certificates , including certificates for electronic signature and for electronic seals ; ### ' trust service ' means an electronic service consisting in the creation , verification , validation or preservation of electronic signatures , electronic seals , electronic time stamps , electronic documents , electronic delivery services , website authentication , and electronic certificates , including certificates for electronic signature and for electronic seals ;


### a qualified trust service provider shall be liable for any direct damage caused to any natural or legal person due to failure to meet the requirements laid down in this regulation , in particular in article 19 , unless the qualified trust service provider can prove that he has not acted negligently . ### a qualified trust service provider shall be liable for any damage caused to any natural or legal person due to intentional or negligent failure to meet the requirements laid down in this regulation , in particular in article 19 .


### where the member state of the offence decides to initiate follow - up proceedings in relation to the road safety related traffic offences referred to in article 2 , it informs , in accordance with its law , the owner , the holder of the vehicle or the otherwise identified person suspected of committing the road safety related traffic offence of the legal consequences thereof within the territory of the member state of the offence under the law of that member state . ### the member state of the offence shall decide whether to initiate follow - up proceedings in relation to the road safety related traffic offences referred to in article 2 or not . in the event that the member state decides to initiate such proceedings , it shall inform , in accordance with its law , the owner , the holder of the vehicle or the otherwise identified person suspected of committing the road safety related traffic offence of the legal consequences thereof within the territory of the member state of the offence under the law of that member state .


### where the member state of the offence decides to initiate follow - up proceedings in relation to the road safety related traffic offences referred to in article 2 , it informs , in accordance with its law , the owner , the holder of the vehicle or the otherwise identified person suspected of committing the road safety related traffic offence of the legal consequences thereof within the territory of the member state of the offence under the law of that member state . ### the member state of the offence shall decide whether to initiate follow - up proceedings in relation to the road safety related traffic offences referred to in article 2 . should the member state decide to take such measures , it shall , in accordance with its law , inform the owner , the holder of the vehicle or the otherwise identified person suspected of committing the road safety related traffic offence at least of the legal consequences thereof within the territory of the member state of the offence under the law of that member state and of the possibilities of obtaining legal assistance .


### closer cooperation between law enforcement authorities should go hand in hand with respect for fundamental rights , in particular the right to respect for privacy and to protection of personal data , to be guaranteed by special data protection arrangements which should take particular account of the specific nature of cross - border online access to databases . such requirements are satisfied by the prüm decisions . ### closer cooperation between law enforcement authorities should go hand in hand with respect for fundamental rights , in particular the right to respect for privacy and to protection of personal data , to be guaranteed by special data protection arrangements which should take particular account of the specific nature of cross - border online access to databases . it is desirable that the software applications to be set up enable the exchange of information to be carried out in secure conditions and ensure the confidentiality of the data transmitted . apart from the temporary nature of their storage , data collected under this directive should not , under any circumstances , be used for purposes other than those of this directive . member states should respect the obligations on the conditions of use and of storage of the data . the processing of personal data and the management of the software applications should prevent any data collected from being used for purposes other than those specifically related to road safety .


### the deviation may be equally not considered in case of severe economic downturn of a general nature . ### the deviation may be equally not considered in case of a severe economic downturn or a severe rise in unemployment .


### the council , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 . 5% of gdp as a benchmark . for member states with a high level of debt or excessive macroeconomic imbalances or both , the council shall examine whether the annual improvement of the cyclically - adjusted budget balance , net of one - off and other temporary measures is higher than 0 . 5% of gdp . the council shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort may be more limited in economic bad times . ### the council and the commission , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 . 5% of gdp as ordinary benchmark . for member states with a high level of debt the council and the commission shall examine whether the annual improvement of the structurally , cyclically and long term - adjusted budget balance , net of one - off and other temporary measures cover the benchmark . the council and the commission shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort may be more limited in economic bad times .


### special attention shall be paid to pension reforms introducing a multi - pillar system that includes a mandatory , fully funded pillar . member states implementing such reforms shall be allowed to deviate from the adjustment path to their medium - term budgetary objective or from the objective itself , with the deviation reflecting the net cost of the reform to the publicly managed pillar , under the condition that the deviation remains temporary and that an appropriate safety margin with respect to the deficit reference value is preserved . ### within those reforms , special attention shall be paid to the sustainability of pension systems . member states implementing such reforms shall be allowed to deviate from the adjustment path to their medium - term budgetary objective or from the objective itself , under the condition that the deviation remains temporary and that an appropriate safety margin with respect to the deficit reference value is preserved .


### discretionary reductions of government revenue items are matched either by expenditure cuts or by discretionary increases in other government revenue items or both . ### discretionary reductions of government revenue items are matched either by expenditure cuts or by discretionary increases in other government revenue items or both for member states not having achieved their medium - term budgetary objectives .


### the council , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 . 5% of gdp as a benchmark . for member states with a high level of debt or excessive macroeconomic imbalances or both , the council shall examine whether the annual improvement of the cyclically - adjusted budget balance , net of one - off and other temporary measures is higher than 0 . 5% of gdp . the council shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort may be more limited in economic bad times . ### the council and the commission , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 , 5% of gdp as a benchmark . for member states with a high level of debt or excessive macroeconomic imbalances or both , the council and the commission shall examine whether the annual improvement of the cyclically - adjusted budget balance , net of one - off and other temporary measures is higher than 0 , 5% of gdp . the council and the commission shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort may be more limited in economic bad times .


### for member states that have not yet reached their medium - term budgetary objective , annual expenditure growth does not exceed a rate below a prudent medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures . the size of the shortfall of the growth rate of government expenditure compared to a prudent medium - term rate of gdp growth is set in such a way as to ensure an appropriate adjustment towards the medium - term budgetary objective ; ### for member states that have not yet reached their medium - term budgetary objective , annual expenditure growth does not exceed the efficient and sustainable medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures . the size of the difference of the growth rate of government expenditure compared to a efficient and sustainable medium - term rate of gdp growth is set in such a way as to ensure an appropriate adjustment towards the medium - term budgetary objective ;


### based on assessments by the commission and the economic and financial committee , the council shall , within the framework of multilateral surveillance under article 121 of the treaty , examine the medium - term budgetary objectives presented by the member states concerned , assess whether the economic assumptions on which the programme is based are plausible , whether the adjustment path towards the medium - term budgetary objective is appropriate and whether the measures being taken and / or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle and to achieve sustained convergence . ### based on assessments by the commission , the economic and financial committee the council shall , within the framework of multilateral surveillance under article 121 tfeu and of the examination of the implementation of the employment policies in accordance with article 148 tfeu , examine the medium - term budgetary objectives presented by the member states concerned in their convergence programmes , assess whether the economic assumptions on which the programme is based are plausible , whether the adjustment path towards the medium - term budgetary objective is appropriate , whether the member state reached the public investment target set out in the framework of the european semester and whether the measures being taken or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle .


### the stability and growth pact is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth underpinned by financial stability and conducive to employment creation . ### the stability and growth pact is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth underpinned by financial stability and conducive to employment creation and should , therefore , enhance long term investments for smart , sustainable and inclusive growth .


### based on assessments by the commission and the economic and financial committee , the council shall , within the framework of multilateral surveillance under article 121 of the treaty , examine the medium - term budgetary objectives presented by the member states concerned , assess whether the economic assumptions on which the programme is based are plausible , whether the adjustment path towards the medium - term budgetary objective is appropriate and whether the measures being taken and / or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle and to achieve sustained convergence . ### based on assessments by the commission and the economic and financial committee , the council shall , within the framework of multilateral surveillance under article 121 tfeu , examine the medium - term budgetary objectives and the expected path of the general debt ratio as presented by the member states concerned in their convergence programmes , assess whether the economic assumptions on which the programme is based are plausible , whether the adjustment path towards the medium - term budgetary objective is appropriate and whether the measures being taken and / or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle and to achieve sustained convergence .


### a deviation from prudent fiscal policy making shall be considered significant if the following conditions occur : an excess over the expenditure growth consistent with prudent fiscal policy - making , not offset by discretionary revenue - increasing measures ; or discretionary revenue - decreasing measures not offset by reductions in expenditure ; and the deviation has a total impact on the government balance of at least 0 . 5 % of gdp in one single year or of at least 0 . 25 % of gdp on average per year in two consecutive years . ### a deviation from efficient and sustainable fiscal policy making shall be considered significant if the following conditions occur : an excess over the expenditure growth consistent with efficient and sustainable fiscal policy - making , not offset by discretionary revenue - increasing measures ; or discretionary revenue - decreasing measures not offset by reductions in expenditure ; and the deviation has a total impact on the government balance of at least 0 , 5 % of gdp in one single year or of at least 0 , 25 % of gdp on average per year in two consecutive years .


### a deviation from prudent fiscal policy making shall be considered significant if the following conditions occur : an excess over the expenditure growth consistent with prudent fiscal policy - making , not offset by discretionary revenue - increasing measures ; or discretionary revenue - decreasing measures not offset by reductions in expenditure ; and the deviation has a total impact on the government balance of at least 0 . 5 % of gdp in one single year or of at least 0 . 25 % of gdp on average per year in two consecutive years . ### a deviation from the adjustment path towards the medium term budgetary objective shall be considered significant if the following conditions occur : an excess over the expenditure growth net of public investment consistent with the medium term budgetary objective , not offset by discretionary revenue - increasing measures ; or discretionary revenue - decreasing measures not offset by reductions in expenditure ;


### for member states that have achieved the medium - term budgetary objective , annual expenditure growth does not exceed a prudent medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures ; ### for member states that have achieved the medium - term budgetary objective , annual expenditure growth does not exceed the estimate of efficient and sustainable medium - term rate of gdp growth , whereas growth in tax revenue does not stay behind the growth in government revenue unless the excesses or gaps are matched by discretionary measures in revenue and / or expenditure ;


### in order to ensure compliance with the fiscal surveillance framework of the union for participating member states , a specific enforcement mechanism should be established on the basis of article 136 of the treaty for cases where a persistent and significant deviation from prudent fiscal policy making prevails . ### in order to ensure compliance with the fiscal surveillance framework of the union for participating member states , a specific enforcement mechanism should be established on the basis of article 136 tfeu for cases where a persistent and significant deviation from efficient and sustainable fiscal policy making , lack of action or an unwillingness to cooperate prevail .


### as part of multilateral surveillance in accordance with article 121 of the treaty , the council shall monitor the implementation of stability programmes , on the basis of information provided by participating member states and of assessments by the commission and the economic and financial committee , in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it ensuing from deviations from prudent fiscal - policy making . ### as part of multilateral surveillance in accordance with article 121 of the treaty , the council shall monitor the implementation of stability programmes , on the basis of information provided by participating member states and of assessments by the commission , the economic and financial committee , the employment committee and the social protection committee , in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it .


### as part of multilateral surveillance in accordance with article 121 of the treaty , the council shall monitor the implementation of convergence programmes , on the basis of information provided by member states with a derogation and of assessments by the commission and the economic and financial committee , in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it , ensuing from deviations from prudent fiscal - policy making . ### as part of multilateral surveillance in accordance with article 121 tfeu , the council shall monitor the implementation of convergence programmes , on the basis of information provided by member states with a derogation and of assessments by the commission and the economic and financial committee , the employment committee and the social protection committee , in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it , ensuing from deviations from efficient and sustainable fiscal - policy making .


### in the event of a significant deviation from prudent fiscal - policy a warning should be addressed to the member state concerned and in case the significant deviation persists or is particularly serious , a recommendation should be addressed to the member state concerned to take the necessary corrective measures . ### in the event of a significant deviation from prudent fiscal - policy a warning should be addressed to the member state concerned and in case the significant deviation persists or is particularly serious , a recommendation should be addressed to the member state concerned to take the necessary corrective measures . the european parliament may invite the member state concerned to explain its policies in this respect before its competent committee .


### for member states that have achieved the medium - term budgetary objective , annual expenditure growth does not exceed a prudent medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures ; ### for member states that have achieved the medium - term budgetary objective , annual expenditure growth does not exceed a efficient and sustainable medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures ;


### when defining the adjustment path to the medium - term budgetary objective for member states that have not yet reached this objective and in allowing a temporary deviation from this objective for member states that have already reached it , under the condition that an appropriate safety margin with respect to the deficit reference value is preserved and that the budgetary position is expected to return to the medium - term budgetary objective within the programme period , the council shall take into account the implementation of major structural reforms which have direct long - term cost - saving effects , including by raising potential growth , and therefore a verifiable impact on the long - term sustainability of public finances . ### when defining the adjustment path to the medium - term budgetary objective for member states that have not yet reached this objective and in allowing a temporary deviation from this objective for member states that have already reached it , under the condition that an appropriate safety margin with respect to the deficit reference value is preserved and that the budgetary position is expected to return to the medium - term budgetary objective within the programme period , the council shall take into account the implementation of structural reforms which are targeted at ensuring a more effective use of public funds resulting in the reduction of unnecessary expenses and which are conducive to the achievement of the union’s growth and jobs objectives , and social and regional cohesion .


### in the event of a significant deviation from prudent fiscal - policy making referred in the fourth subparagraph of article 5 of this regulation , and in order to prevent the occurrence of an excessive deficit , the commission , in accordance with article 121 of the treaty may address a warning to the member state concerned . ### in the event of a significant deviation from the adjustment path towards the medium term budgetary objective and in order to prevent the occurrence of an excessive deficit , the commission , in accordance with article 121 of the treaty may address a warning to the member state concerned .


### in the event of a significant deviation from prudent fiscal - policy making referred in the fourth subparagraph of article 5 of this regulation , and in order to prevent the occurrence of an excessive deficit , the commission , in accordance with article 121 of the treaty may address a warning to the member state concerned . ### in the event of a significant deviation from efficient and sustainable fiscal - policy making referred in the fourth subparagraph of article 5 of this regulation , and in order to prevent the occurrence of an excessive deficit , the commission , in accordance with article 121 of the treaty may address a warning to the member state concerned .


### based on assessments by the commission and the economic and financial committee , the council shall , within the framework of multilateral surveillance under article 121 of the treaty , examine the medium - term budgetary objectives presented by the member states concerned , assess whether the economic assumptions on which the programme is based are plausible , whether the adjustment path towards the medium - term budgetary objective is appropriate and whether the measures being taken or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle . ### based on assessments by the commission , the economic and financial committee the employment committee and the social protection committee , the council shall , within the framework of multilateral surveillance under article 121 tfeu and of the examination of the implementation of the employment policies in accordance with article 148 tfeu , examine the medium - term budgetary objectives and the expected path of the general debt ratio as presented by the member states concerned in their stability programmes , assess whether the economic assumptions on which the programme is based are plausible , whether the adjustment path towards the medium - term budgetary objective is appropriate and whether the measures being taken or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle .


### the council , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 . 5% of gdp as a benchmark . for member states with a high level of debt or excessive macroeconomic imbalances or both , the council shall examine whether the annual improvement of the cyclically - adjusted budget balance , net of one - off and other temporary measures is higher than 0 . 5% of gdp . the council shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort may be more limited in economic bad times . ### the council and the commission , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 , 5% of gdp as a benchmark . for member states with a high level of debt or excessive macroeconomic imbalances or both , the council and the commission shall examine whether the annual improvement of the cyclically - adjusted budget balance , net of one - off and other temporary measures is higher than 0 , 5% of gdp . the council and the commission shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort may be more limited in economic bad times .


### each member state with a derogation shall submit to the council and the commission information necessary for the purpose of multilateral surveillance of regular intervals under article 121 of the treaty in the form of a convergence programme , which provides an essential basis for price stability and for strong sustainable growth conducive to employment creation . ### each member state with a derogation shall submit to the council and the commission information necessary for the purpose of multilateral surveillance of regular intervals under article 121 of the treaty in the form of a convergence programme , which provides an essential basis for price stability , competitiveness and convergence and for strong sustainable growth conducive to employment creation .


### for member states that have not yet reached their medium - term budgetary objective , annual expenditure growth does not exceed a rate below a prudent medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures . the size of the shortfall of the growth rate of government expenditure compared to a prudent medium - term rate of gdp growth is set in such a way as to ensure an appropriate adjustment towards the medium - term budgetary objective ; ### for member states that have not yet reached their medium - term budgetary objective , annual growth in tax revenue should exceed the medium term rate of growth of gdp , whereas annual medium term expenditure growth should not exceed a rate below a prudent medium - term rate of gdp growth . the impact of unemployment benefits and other social expenditure related to the business cycle is not to be taken into account when in the calculation and assessment of the growth path of government expenditure . deviations from these indicative expenditure and growth paths shall not be seen as a problem in case these deviations are matched by discretionary measures , either on the expenditure side or the revenue side or both . the size of the shortfall of the growth rate of government expenditure compared to a prudent medium - term rate of gdp growth , and the size of the excess of growth rate of tax revenue compared to medium term gdp growth are both set in such a way as to ensure an appropriate adjustment towards the medium - term budgetary objective .


### the deviation may be equally not considered in case of severe economic downturn of a general nature . ### the deviation may be equally not considered in case of a severe economic downturn or a severe rise in unemployment .


### special attention shall be paid to pension reforms introducing a multi - pillar system that includes a mandatory , fully funded pillar . member states implementing such reforms shall be allowed to deviate from the adjustment path to their medium - term budgetary objective or from the objective itself , with the deviation reflecting the net cost of the reform to the publicly managed pillar , under the condition that the deviation remains temporary and that an appropriate safety margin with respect to the deficit reference value is preserved . ### within these reforms , special attention shall be paid to the sustainability of pension systems . member states implementing such reforms shall be allowed to deviate from the adjustment path to their medium - term budgetary objective or from the objective itself , under the condition that the deviation remains temporary and that an appropriate safety margin with respect to the deficit reference value is preserved .


### in the event of a significant deviation from prudent fiscal - policy a warning should be addressed to the member state concerned and in case the significant deviation persists or is particularly serious , a recommendation should be addressed to the member state concerned to take the necessary corrective measures . ### in the event of a significant deviation from efficient and sustainable fiscal - policy a warning should be addressed to the member state concerned and in case the significant deviation persists or is particularly serious , a recommendation should be addressed to the member state concerned to take the necessary corrective measures .


### fiscal - policy making shall be considered prudent and thereby conducive to the achievement of the medium - term budgetary objective and its maintenance over time if the following conditions are satisfied : ### fiscal - policy making shall be considered sustainable and thereby conducive to the achievement of the medium - term budgetary objective and its sustainability over time if the following conditions are satisfied :


### in periods of severe economic downturn of a general nature member states may be allowed to temporarily depart from the adjustment path implied by prudent fiscal - policy making referred to in the fourth subparagraph . ### only in periods of a severe economic downturn or a severe rise in unemployment , including its aftermath and the period in which the economy is still operating below potential member states shall be allowed to temporarily depart from the adjustment path implied by efficient and sustainable fiscal - policy making referred to in the fourth subparagraph in order to facilitate economic recovery .


### as part of multilateral surveillance in accordance with article 121 of the treaty , the council shall monitor the implementation of stability programmes , on the basis of information provided by participating member states and of assessments by the commission and the economic and financial committee , in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it ensuing from deviations from prudent fiscal - policy making . ### as part of multilateral surveillance in accordance with article 121 tfeu , the council shall monitor the implementation of stability programmes , on the basis of information provided by participating member states and of assessments by the commission and the economic and financial committee , the employment committee and the social protection committee , in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it ensuing from deviations from efficient and sustainable fiscal - policy making .


### the council , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 . 5% of gdp as a benchmark . for member states with a high level of debt or excessive macroeconomic imbalances or both , the council shall examine whether the annual improvement of the cyclically - adjusted budget balance , net of one - off and other temporary measures is higher than 0 . 5% of gdp . the council shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort may be more limited in economic bad times . ### the council , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 , 5% of gdp as a benchmark . for member states with a high level of debt or excessive macroeconomic and social imbalances or both , the council shall examine whether the annual improvement of the cyclically - adjusted budget balance , net of one - off and other temporary measures is at least 0 , 5% of gdp . the council shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort may be more limited in economic bad times .


### based on assessments by the commission and the economic and financial committee , the council shall , within the framework of multilateral surveillance under article 121 of the treaty , examine the medium - term budgetary objectives presented by the member states concerned , assess whether the economic assumptions on which the programme is based are plausible , whether the adjustment path towards the medium - term budgetary objective is appropriate and whether the measures being taken or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle . ### based on assessments by the commission and the economic and financial committee , the council shall , within the framework of multilateral surveillance under article 121 tfeu , examine the medium - term budgetary objectives and the expected path of the general debt ratio as presented by the member states concerned in their stability programmes , assess whether the economic assumptions on which the programme is based are plausible , whether the adjustment path towards the medium - term budgetary objective is appropriate and whether the measures being taken or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle .


### as part of multilateral surveillance in accordance with article 121 of the treaty , the council shall monitor the implementation of stability programmes , on the basis of information provided by participating member states and of assessments by the commission and the economic and financial committee , in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it ensuing from deviations from prudent fiscal - policy making . ### as part of multilateral surveillance in accordance with article 121 tfeu , the council and the commission shall monitor the implementation of stability programmes , on the basis of information provided by participating member states and of assessments by the commission and the economic and financial committee , in particular with a view to identifying actual or expected significant divergences of the budgetary position from the medium - term budgetary objective , or from the appropriate adjustment path towards it ensuing from deviations from prudent fiscal - policy making .


### with a view to ensuring that the medium - term budgetary objective is effectively achieved and maintained , the council shall verify that the growth path of government expenditure , taken in conjunction with the effect of the measures being taken or proposed on the revenue side , is consistent with prudent fiscal - policy making . ### with a view to ensuring that the medium - term budgetary objective is effectively achieved and maintained , the council shall verify that the growth path of government expenditure , taken in conjunction with the effect of the measures being taken or proposed on the revenue side , is consistent with efficient and sustainable fiscal - policy making and the union’s growth and jobs objectives .


### the content of the stability and convergence programmes as well as the criteria for their examination should further be adapted in the light of the experience gained with the implementation of the stability and growth pact . ### the content of the stability and convergence programmes as well as the procedure and criteria for their examination should further be developed and discussed both at national and at the union level in the light of the experience gained with the implementation of the stability and growth pact , in particular regarding its contribution to growth and job creation and to the union ' s competitiveness and convergence .


### a temporary departure from prudent fiscal policy - making should be allowed in case of severe economic downturn of a general nature in order to facilitate economic recovery . ### a temporary departure from efficient and sustainable fiscal policy - making should be exceptionally allowed in case of a severe economic downturn or a severe rise in unemployment , including the period in which the economy is operating below its normal potential , in order to facilitate economic recovery .


### a deviation from prudent fiscal policy making shall be considered significant if the following conditions occur : an excess over the expenditure growth consistent with prudent fiscal policy - making , not offset by discretionary revenue - increasing measures ; or discretionary revenue - decreasing measures not offset by reductions in expenditure ; and the deviation has a total impact on the government balance of at least 0 . 5% of gdp in one single year or of at least 0 . 25% of gdp on average per year in two consecutive years . ### a deviation from efficient and sustainable fiscal policy making shall be considered significant if the following conditions occur : an excess over the expenditure growth consistent with efficient and sustainable fiscal policy - making , not offset by discretionary revenue - increasing measures ; or discretionary revenue - decreasing measures not offset by reductions in expenditure ; and the deviation has a total impact on the government balance of at least 0 , 5% of gdp in one single year or of at least 0 , 25% of gdp on average per year in two consecutive years .


### a deviation from prudent fiscal policy making shall be considered significant if the following conditions occur : an excess over the expenditure growth consistent with prudent fiscal policy - making , not offset by discretionary revenue - increasing measures ; or discretionary revenue - decreasing measures not offset by reductions in expenditure ; and the deviation has a total impact on the government balance of at least 0 . 5% of gdp in one single year or of at least 0 . 25% of gdp on average per year in two consecutive years . ### a deviation from the adjustment path towards the medium term budgetary objective shall be considered significant if the following conditions occur : an excess over the expenditure growth net of public investment consistent with the medium term budgetary objective , not offset by discretionary revenue - increasing measures ; or discretionary revenue - decreasing measures not offset by reductions in expenditure ;


### with a view to ensuring that the medium - term budgetary objective is effectively achieved and maintained , the council shall verify that the growth path of government expenditure , taken in conjunction with the effect of measures being taken or planned on the revenue side , is consistent with prudent fiscal policy - making . ### with a view to ensuring that the medium - term budgetary objective is effectively achieved and maintained , the council shall verify that the growth path of government expenditure , taken in conjunction with the effect of measures being taken or planned on the revenue side , is consistent with efficient and sustainable fiscal policy making and the union’s growth and jobs objectives .


### the deviation shall not be considered if the member state concerned has significantly overachieved the medium - term budgetary objective , taking into account the presence of excessive macroeconomic imbalances , and the budgetary plans laid out in the stability programme do not jeopardise this objective over the programme period . ### the deviation shall not be considered if the member state concerned has achieved the medium - term budgetary objective , taking into account the presence of excessive macroeconomic or social imbalances , and the budgetary plans laid out in the stability programme do not jeopardise this objective over the programme period .


### for member states that have achieved the medium - term budgetary objective , annual expenditure growth does not exceed a prudent medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures ; ### for member states that have achieved the medium - term budgetary objective , annual expenditure growth does not exceed the estimate of efficient and sustainable medium - term rate of gdp growth , whereas growth in tax revenue does not stay behind the growth in government revenue unless the excesses or gaps are matched by discretionary measures in revenue and / or expenditure ;


### in the event that the significant deviation from prudent fiscal policy making persists or is particularly serious , the council , on a recommendation from the commission , shall address a recommendation to the member state concerned to take the necessary adjustment measures . the council , on a proposal from the commission , shall make the recommendation public . ### in the event that the significant deviation from the adjustment path towards the medium term budgetary objective persists or is particularly serious , the commission , shall address a recommendation to the member state concerned to take the necessary adjustment measures . the council shall make the recommendation public and the european parliament may invite the member state concerned to explain its policies before its competent committee .


### with a view to ensuring that the medium - term budgetary objective is effectively achieved and maintained , the council shall verify that the growth path of government expenditure , taken in conjunction with the effect of the measures being taken or proposed on the revenue side , is consistent with prudent fiscal - policy making . ### with a view to ensuring that the medium - term budgetary objective is effectively achieved and maintained , the council and the commission shall verify that the growth path of government expenditure , taken in conjunction with the effect of the measures being taken or proposed on the revenue side , is consistent with prudent fiscal - policy making .


### special attention shall be paid to pension reforms introducing a multi - pillar system that includes a mandatory , fully funded pillar . member states implementing such reforms shall be allowed to deviate from the adjustment path to their medium - term budgetary objective or from the objective itself , with the deviation reflecting the net cost of the reform to the publicly managed pillar , under the condition that the deviation remains temporary and that an appropriate safety margin with respect to the deficit reference value is preserved . ### within those reforms , special attention shall be paid to the sustainability of pension systems . member states implementing such reforms shall be allowed to deviate from the adjustment path to their medium - term budgetary objective or from the objective itself , under the condition that the deviation remains temporary and that an appropriate safety margin with respect to the deficit reference value is preserved .


### in periods of severe economic downturn of a general nature member states may be allowed to temporarily depart from the adjustment path implied by prudent fiscal - policy making referred to in the fourth subparagraph . ### in periods of economic downturn member states may be allowed to temporarily depart from the adjustment path implied by the medium term budgetary objective .


### in periods of severe economic downturn of a general nature member states may be allowed to temporarily depart from the adjustment path implied by prudent fiscal - policy making referred to in the fourth subparagraph . ### only in periods of a severe economic downturn or a severe rise in unemployment , including its aftermath and the period in which the economy is still operating below potential member states shall be allowed to temporarily depart from the adjustment path implied by efficient and sustainable fiscal - policy making referred to in the fourth subparagraph .


### the council , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 . 5% of gdp as a benchmark . for member states with a high level of debt or excessive macroeconomic imbalances or both , the council shall examine whether the annual improvement of the cyclically - adjusted budget balance , net of one - off and other temporary measures is higher than 0 . 5% of gdp . the council shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort may be more limited in economic bad times . ### the council and the commission , when assessing the adjustment path toward the medium - term budgetary objective , shall examine if the member state concerned pursues an appropriate annual improvement of its cyclically - adjusted budget balance , net of one - off and other temporary measures , required to meet its medium - term budgetary objective , with 0 . 5% of gdp as ordinary benchmark . for member states with a high level of debt the council and the commission shall examine whether the annual improvement of the structurally , cyclically and long term - adjusted budget balance , net of one - off and other temporary measures cover the benchmark . the council and the commission shall take into account whether a higher adjustment effort is made in economic good times , whereas the effort may be more limited in economic bad times .


### for member states that have not yet reached their medium - term budgetary objective , annual expenditure growth does not exceed a rate below a prudent medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures . the size of the shortfall of the growth rate of government expenditure compared to a prudent medium - term rate of gdp growth is set in such a way as to ensure an appropriate adjustment towards the medium - term budgetary objective ; ### for member states that have not yet reached their medium - term budgetary objective , annual expenditure growth does not exceed the efficient and sustainable medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures . the size of the difference of the growth rate of government expenditure compared to a efficient and sustainable medium - term rate of gdp growth is set in such a way as to ensure an appropriate adjustment towards the medium - term budgetary objective ;


### based on assessments by the commission and the economic and financial committee , the council shall , within the framework of multilateral surveillance under article 121 of the treaty , examine the medium - term budgetary objectives presented by the member states concerned , assess whether the economic assumptions on which the programme is based are plausible , whether the adjustment path towards the medium - term budgetary objective is appropriate and whether the measures being taken or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle . ### based on assessments by the commission , the economic and financial committee the employment committee and the social protection committee , the council shall , within the framework of multilateral surveillance under article 121 tfeu and of the examination of the implementation of the employment policies in accordance with article 148 tfeu , examine the medium - term budgetary objectives and the expected path of the general debt ratio as presented by the member states concerned in their stability programmes , assess whether the economic assumptions on which the programme is based are plausible , whether the adjustment path towards the medium - term budgetary objective is appropriate and whether the measures being taken or proposed to respect that adjustment path are sufficient to achieve the medium - term budgetary objective over the cycle .


### a deviation from prudent fiscal policy making shall be considered significant if the following conditions occur : an excess over the expenditure growth consistent with prudent fiscal policy - making , not offset by discretionary revenue - increasing measures ; or discretionary revenue - decreasing measures not offset by reductions in expenditure ; and the deviation has a total impact on the government balance of at least 0 . 5 % of gdp in one single year or of at least 0 . 25 % of gdp on average per year in two consecutive years . ### a deviation from efficient and sustainable fiscal policy making shall be considered significant if the following conditions occur : an excess over the expenditure growth consistent with efficient and sustainable fiscal policy - making , not offset by discretionary revenue - increasing measures ; or discretionary revenue - decreasing measures not offset by reductions in expenditure ; and the deviation has a total impact on the government balance of at least 0 , 5 % of gdp in one single year or of at least 0 , 25 % of gdp on average per year in two consecutive years .


### in the event that the significant deviation from prudent fiscal policy making persists or is particularly serious , the council , on a recommendation from the commission , shall address a recommendation to the member state concerned to take the necessary adjustment measures . the council , on a proposal from the commission , shall make the recommendation public . ' ### in the event that the significant deviation from efficient and sustainable fiscal policy making persists or is particularly serious , the council , on a recommendation from the commission , shall address a recommendation to the member state concerned to take the necessary adjustment measures . the council , on a proposal from the commission , shall make the recommendation public . '


### for member states that have not yet reached their medium - term budgetary objective , annual expenditure growth does not exceed a rate below a prudent medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures . the size of the shortfall of the growth rate of government expenditure compared to a prudent medium - term rate of gdp growth is set in such a way as to ensure an appropriate adjustment towards the medium - term budgetary objective ; ### for member states that have not yet reached their medium - term budgetary objective , annual expenditure growth does not exceed efficient and sustainable medium - term rate of gdp growth , unless the excess is matched by discretionary revenue measures . the size of the difference of the growth rate of government expenditure compared to an efficient and sustainable medium - term rate of gdp growth is set in such a way as to ensure an appropriate adjustment towards the medium - term budgetary objective ;


### the prudent medium - term of growth should be assessed on the basis of projections over a ten - year horizon updated at regular intervals . ### the efficient and sustainable medium - term of growth should be assessed on the basis of projections over a ten - year horizon updated at regular intervals .


### fiscal - policy making shall be considered prudent and thereby conducive to the achievement of the medium - term budgetary objective and its maintenance over time if the following conditions are satisfied : ### fiscal - policy making shall be considered efficient and sustainable and thereby conducive to the achievement of the medium - term budgetary objective and its maintenance over time if the following conditions are satisfied :


### having regard to the treaty on the functioning of the european union , and in particular article 121 thereof , ### having regard to the treaty on the functioning of the european union , and in particular article 121 , in combination with article 148 and thereof ,