### the agency shall coordinate actions on resettlement taken by member states or by the union , including the exchange of information , so as to meet the international protection needs of refugees in third countries and show solidarity with their host countries . the agency shall gather information , monitor resettlement to member states and support member states with capacity building on resettlement . the agency may also , subject to the agreement of the third country and in agreement with the commission , coordinate any such exchange of information or other action between member states and a third country , in the territory of that third country . ### the agency shall coordinate actions on resettlement taken by member states or by the union , including the exchange of information , so as to meet the international protection needs of refugees in third countries and show solidarity with their host countries . the agency shall encourage and assist member states to use to the full the other legal avenues available to persons in need of protection , including humanitarian visas and family reunification clauses . the agency shall gather information , monitor resettlement to member states and support member states with capacity building on resettlement . the agency may also , subject to the agreement of the third country and in agreement with the commission , coordinate any such exchange of information or other action between member states and a third country , in the territory of that third country .


### the content of electronic communications may reveal highly sensitive information about the natural persons involved in the communication , from personal experiences and emotions to medical conditions , sexual preferences and political views , the disclosure of which could result in personal and social harm , economic loss or embarrassment . similarly , metadata derived from electronic communications may also reveal very sensitive and personal information . these metadata includes the numbers called , the websites visited , geographical location , the time , date and duration when an individual made a call etc . , allowing precise conclusions to be drawn regarding the private lives of the persons involved in the electronic communication , such as their social relationships , their habits and activities of everyday life , their interests , tastes etc . ### electronic communications may reveal highly sensitive information about the natural persons involved in the communication , from personal experiences and emotions to medical conditions , sexual preferences and political views , the disclosure of which could result in personal and social harm , economic loss or embarrassment . metadata derived from electronic communications may also reveal very sensitive and personal information . these metadata includes the numbers called , the websites visited , geographical location , the time , date and duration when an individual made a call etc . , allowing precise conclusions to be drawn regarding the private lives of the persons involved in the electronic communication , such as their social relationships , their habits and activities of everyday life , their interests , tastes etc . the protection of confidentiality of communications is also an essential condition for the respect of other related fundamental rights and freedoms , such as the protection of freedom of thought , conscience and religion , and freedom of expression and information .


### this regulation should apply to electronic communications data processed in connection with the provision and use of electronic communications services in the union , regardless of whether or not the processing takes place in the union . moreover , in order not to deprive end - users in the union of effective protection , this regulation should also apply to electronic communications data processed in connection with the provision of electronic communications services from outside the union to end - users in the union . ### this regulation should apply to electronic communications data processed in connection with the provision and use of electronic communications services in the union , regardless of whether or not the processing takes place in the union . moreover , in order not to deprive end - users in the union of effective protection , this regulation should also apply to electronic communications data processed in connection with the provision of electronic communications services from outside the union to end - users in the union . this should be the case irrespective of whether the electronic communications are connected to a payment or not .


### the processing of electronic communications data can be useful for businesses , consumers and society as a whole . vis - à - vis directive 2002 / 58 / ec , this regulation broadens the possibilities for providers of electronic communications services to process electronic communications metadata , based on end - users consent . however , end - users attach great importance to the confidentiality of their communications , including their online activities , and that they want to control the use of electronic communications data for purposes other than conveying the communication . therefore , this regulation should require providers of electronic communications services to obtain end - users ' consent to process electronic communications metadata , which should include data on the location of the device generated for the purposes of granting and maintaining access and connection to the service . location data that is generated other than in the context of providing electronic communications services should not be considered as metadata . examples of commercial usages of electronic communications metadata by providers of electronic communications services may include the provision of heatmaps ; a graphical representation of data using colors to indicate the presence of individuals . to display the traffic movements in certain directions during a certain period of time , an identifier is necessary to link the positions of individuals at certain time intervals . this identifier would be missing if anonymous data were to be used and such movement could not be displayed . such usage of electronic communications metadata could , for example , benefit public authorities and public transport operators to define where to develop new infrastructure , based on the usage of and pressure on the existing structure . where a type of processing of electronic communications metadata , in particular using new technologies , and taking into account the nature , scope , context and purposes of the processing , is likely to result in a high risk to the rights and freedoms of natural persons , a data protection impact assessment and , as the case may be , a consultation of the supervisory authority should take place prior to the processing , in accordance with articles 35 and 36 of regulation 2016 / 679 . ### the processing of electronic communications data can be useful for businesses , consumers and society as a whole . examples of such usages of electronic communications metadata by providers of electronic communications services may include the provision of heatmaps ; a graphical representation of data using colours to indicate the presence of individuals . to display the traffic movements in certain directions during a certain period of time , an identifier is necessary to link the positions of individuals at certain time intervals , provided that the data are immediately anonymised or anonymisation techniques are used where the user is mixed with others . such usage of electronic communications metadata could , for example , benefit public authorities and public transport operators to define where to develop new infrastructure , based on the usage of and pressure on the existing structure .


### terminal equipment of end - users of electronic communications networks and any information relating to the usage of such terminal equipment , whether in particular is stored in or emitted by such equipment , requested from or processed in order to enable it to connect to another device and or network equipment , are part of the private sphere of the end - users requiring protection under the charter of fundamental rights of the european union and the european convention for the protection of human rights and fundamental freedoms . given that such equipment contains or processes information that may reveal details of an individual ' s emotional , political , social complexities , including the content of communications , pictures , the location of individuals by accessing the device’s gps capabilities , contact lists , and other information already stored in the device , the information related to such equipment requires enhanced privacy protection . furthermore , the so - called spyware , web bugs , hidden identifiers , tracking cookies and other similar unwanted tracking tools can enter end - user ' s terminal equipment without their knowledge in order to gain access to information , to store hidden information and to trace the activities . information related to the end - user’s device may also be collected remotely for the purpose of identification and tracking , using techniques such as the so - called ‘ device fingerprinting’ , often without the knowledge of the end - user , and may seriously intrude upon the privacy of these end - users . techniques that surreptitiously monitor the actions of end - users , for example by tracking their activities online or the location of their terminal equipment , or subvert the operation of the end - users’ terminal equipment pose a serious threat to the privacy of end - users . therefore , any such interference with the end - user ' s terminal equipment should be allowed only with the end - user ' s consent and for specific and transparent purposes . ### terminal equipment of end - users of electronic communications networks and any information relating to the usage of such terminal equipment , whether in particular is stored in or emitted by such equipment , requested from or processed in order to enable it to connect to another device and or network equipment , are part of the private sphere of the end - users requiring protection under the charter of fundamental rights of the european union and the european convention for the protection of human rights and fundamental freedoms . given that such equipment contains or processes very sensitive data that may reveal details of the behaviour , psychological features , emotional condition and political and social preferences of an individual , including the content of communications , pictures , the location of individuals by accessing the gps capabilities of their device , contact lists , and other information already stored in the device , the information related to such equipment requires enhanced privacy protection . information related to the end - user ' s device may also be collected remotely for the purpose of identification and tracking , using techniques such as the so - called ' device fingerprinting ' , often without the knowledge of the end - user , and may seriously intrude upon the privacy of these end - users . furthermore , so - called spyware , web bugs , hidden identifiers and unwanted tracking tools can enter end - users ' terminal equipment without their knowledge in order to gain access to information or to store hidden information . techniques that surreptitiously monitor the actions of end - users , for example by tracking their activities online or the location of their terminal equipment , or subvert the operation of the end - users ' terminal equipment pose a serious threat to the privacy of end - users . therefore , any such interference with the end - user ' s terminal equipment should be allowed only with the end - user ' s consent and for specific and transparent purposes . end - users should receive all relevant information about the intended processing in clear and easily understandable language . such information should be provided separately from the terms and conditions of the service .


### the principles of data protection by design and by default were codified under article 25 of regulation 2016 / 679 . currently , the default settings for cookies are set in most current browsers to ‘ accept all cookies’ . therefore providers of software enabling the retrieval and presentation of information on the internet should have an obligation to configure the software so that it offers the option to prevent third parties from storing information on the terminal equipment ; this is often presented as ‘ reject third party cookies’ . end - users should be offered a set of privacy setting options , ranging from higher to lower and intermediate . such privacy settings should be presented in an easily visible and intelligible manner . ### the principles of data protection by design and by default were codified under article 25 of regulation 2016 / 679 . currently , the default settings for cookies are set in most current browsers to ' accept all cookies ' . therefore providers of software enabling the retrieval and presentation of information on the internet should have an obligation to configure the software so that it offers the option to prevent by default the cross - domain tracking and storing of information on the terminal equipment by other parties ; this is often presented as ' reject third party trackers and cookies ' . end - users should be offered , by default , a set of privacy setting options , ranging from higher to lower and intermediate . these options may also be more fine - grained . privacy settings should also include options to allow the user to decide for example , whether flash , javascript or similar software can be executed , if a website can collect geo - location data from the user , or if it can access specific hardware such as a webcam or microphone . such privacy settings should be presented in an easily visible , objective and intelligible manner .


### accessing electronic communications networks requires the regular emission of certain data packets in order to discover or maintain a connection with the network or other devices on the network . furthermore , devices must have a unique address assigned in order to be identifiable on that network . wireless and cellular telephone standards similarly involve the emission of active signals containing unique identifiers such as a mac address , the imei , the imsi etc . a single wireless base station , such as a wireless access point , has a specific range within which such information may be captured . service providers have emerged who offer tracking services based on the scanning of equipment related information with diverse functionalities , including people counting , providing data on the number of people waiting in line , ascertaining the number of people in a specific area , etc . this information may be used for more intrusive purposes , such as to send commercial messages to end - users , for example when they enter stores , with personalized offers . while some of these functionalities do not entail high privacy risks , others do , for example , those involving the tracking of individuals over time , including repeated visits to specified locations . providers engaged in such practices should display prominent notices located on the edge of the area of coverage informing end - users prior to entering the defined area that the technology is in operation within a given perimeter , the purpose of the tracking , the person responsible for it and the existence of any measure the end - user of the terminal equipment can take to minimize or stop the collection . additional information should be provided where personal data are collected pursuant to article 13 of regulation 2016 / 679 . ### accessing electronic communications networks requires the regular emission of certain data packets in order to discover or maintain a connection with the network or other devices on the network . furthermore , devices must have a unique address assigned in order to be identifiable on that network . wireless and cellular telephone standards similarly involve the emission of active signals containing unique identifiers such as a mac address , the imei , the imsi etc . a single wireless base station , such as a wireless access point , has a specific range within which such information may be captured . service providers have emerged who offer tracking services based on the scanning of equipment related information with diverse functionalities , including people counting , providing data on the number of people waiting in line , ascertaining the number of people in a specific area , etc . this information may be used for more intrusive purposes , such as to send commercial messages to end - users , for example when they enter stores , with personalised offers . while some of these functionalities do not entail high privacy risks , others do , for example , those involving the tracking of individuals over time , including repeated visits to specified locations . providers engaged in such practices should display prominent notices located on the edge of the area of coverage informing end - users prior to entering the defined area that the technology is in operation within a given perimeter , the purpose of the tracking , the person responsible for it and the existence of any measure the end - user of the terminal equipment can take to minimize or stop the collection . additional information should be provided where personal data are collected pursuant to article 13 of regulation 2016 / 679 . in addition , such providers should either obtain the end - user ' s consent or anonymise the data immediately while limiting the purpose to mere statistical counting within a limited time and space and offering effective opt - out possibilities .


### service providers who offer electronic communications services should inform end - users of measures they can take to protect the security of their communications for instance by using specific types of software or encryption technologies . the requirement to inform end - users of particular security risks does not discharge a service provider from the obligation to take , at its own costs , appropriate and immediate measures to remedy any new , unforeseen security risks and restore the normal security level of the service . the provision of information about security risks to the subscriber should be free of charge . security is appraised in the light of article 32 of regulation 2016 / 679 . ### service providers who offer electronic communications services should process electronic communications data in such a way as to prevent unauthorised access , disclosure or alteration , ensure that such unauthorised access , disclosure or alteration is capable of being ascertained , and also ensure that such electronic communications data are protected by using specific types of software and encryption technologies . the requirement to inform end - users of particular security risks does not discharge a service provider from the obligation to take , at its own costs , appropriate and immediate measures to remedy any new , unforeseen security risks and restore the normal security level of the service . the provision of information about security risks to the subscriber should be free of charge . security is appraised in the light of article 32 of regulation 2016 / 679 . the obligations of article 40 of the [ european electronic communications code ] should apply to all services within the scope of this regulation as regards the security of networks and services and related security obligations thereto .


### where the provider of an electronic communications service is not established in the union it shall designate in writing a representative in the union . ### where the provider of an electronic communications service , provider of a publicly available directory , software provider enabling electronic communications or person sending direct marketing commercial communications or collecting information related to or stored in the end - users terminal equipment is not established in the union it shall designate in writing a representative in the union .


### it is necessary to achieve the transmission of the communication , for the duration necessary for that purpose ; or ### it is technically strictly necessary to achieve the transmission of the communication , for the duration necessary for that purpose ; or


### it is necessary to maintain or restore the security of electronic communications networks and services , or detect technical faults and / or errors in the transmission of electronic communications , for the duration necessary for that purpose . ### it is technically strictly necessary to maintain or restore the security of electronic communications networks and services , or detect technical faults and / or errors in the transmission of electronic communications , for the duration technically necessary for that purpose .


### it is necessary for billing , calculating interconnection payments , detecting or stopping fraudulent , or abusive use of , or subscription to , electronic communications services ; or ### it is strictly necessary for billing , calculating interconnection payments , detecting or stopping fraudulent use , or abusive use of electronic communications services ; or


### it is done exclusively in order to , for the time necessary for , and for the purpose of establishing a connection ; or ### it is done exclusively in order to , for the time necessary for , and for the sole purpose of establishing a connection requested by the end - user ; or


### differences in the application of the existing framework in different member states threaten the level playing - field for investment firms within the union . those differences stem from the overall complexity of the application of the framework to different investment firms based on the services they provide , where some national authorities adjust or streamline such application in national law or practice . given that the existing prudential framework does not address all the risks faced and posed by some types of investment firms , large capital add - ons have been applied to certain investment firms in some member states . uniform provisions addressing those risks should be established in order to ensure harmonised prudential supervision of investment firms across the union . ### differences in the application of the existing framework in different member states threaten the level playing - field for investment firms within the union , hampering investors’ access to new opportunities and better ways of managing their risks . those differences stem from the overall complexity of the application of the framework to different investment firms based on the services they provide , where some national authorities adjust or streamline such application in national law or practice . given that the existing prudential framework does not address all the risks faced and posed by some types of investment firms , large capital add - ons have been applied to certain investment firms in some member states . uniform provisions addressing those risks should be established in order to ensure clear harmonised prudential supervision of investment firms across the union .


### the proper functioning of the internal market requires that the responsibility for supervising the financial soundness of an investment firm , and in particular its solvency , lies with the competent authority of its home member state . to achieve an effective supervision of investment firms also in other member states where they provide services or have a branch , close cooperation with the competent authorities of these member states should be ensured . ### the proper functioning of the internal market requires that the responsibility for supervising the financial soundness of an investment firm , and in particular its solvency , lies with the competent authority of its home member state . to achieve an effective supervision of investment firms also in other member states where they provide services or have a branch , close cooperation and exchange of information with the competent authorities of these member states should be ensured .


### investment firms should have internal capital which is adequate in quantity , quality and distribution to cover the specific risks to which they are or may be exposed . competent authorities should ensure that investment firms have the adequate strategies and processes in place to asses and maintain the adequacy of their internal capital . ### investment firms should have internal capital available , which is adequate in quantity , quality and distribution to cover the specific risks to which they are or may be exposed . competent authorities should ensure that investment firms have the adequate strategies and processes in place to assess and maintain the adequacy of their internal capital .


### where member states permit the publication of administrative penalties or measures imposed in accordance with article 16 against which there has been an appeal , competent authorities shall also publish on their official website information on the appeal status and on the outcome of the appeal . ### where member states permit the publication of administrative penalties or measures imposed in accordance with article 16 against which there has been an appeal , competent authorities shall also publish on their official website information on the appeal status and on the outcome of the appeal . competent authorities shall ensure that the same information is published on the official website of the investment firm concerned .


### the european union is founded on the universal values of human dignity , freedom , equality and solidarity , respect for human rights and fundamental freedoms . it is based on the principle of democracy and the principle of the rule of law , principles which are common to the member states . ### the european union is founded on the universal values of human dignity , freedom , equality between women and men and solidarity , respect for human rights and fundamental freedoms . it is based on the principle of democracy and the principle of the rule of law , principles which are common to the member states .


### criminalisation of the receiving training for terrorism complements the existing offence of providing training and specifically addresses the threats resulting from those actively preparing for the commission of terrorist offences , including those ultimately acting alone . ### criminalisation of the receiving training for terrorism , including the acquisition of documentation , complements the existing offence of providing training and specifically addresses the threats resulting from those actively preparing for the commission of terrorist offences , including those ultimately acting alone .


### furthermore , the provision of material support for terrorism through persons engaging in or acting as intermediaries in the supply or movement of services , assets and goods , including trade transactions involving the entry into or exit from the union should be punishable in the member states , as aiding and abetting terrorism or as terrorism financing if performed with the knowledge that these operations or the proceeds thereof are intended to be used , in full or in part , for terrorist purposes or will benefit terrorist groups . ### the provision of material support for terrorism through persons engaging in or acting as intermediaries in the supply or movement of services , assets and goods , including trade transactions involving the entry into or exit from the union , including smuggling of cultural heritage items , should be punishable in the member states , if performed with the intent of benefiting terrorist groups .


### furthermore , penalties should be provided for natural and legal persons having committed or being liable for such offences , which reflect the seriousness of such offences . ### penalties should be provided for natural and legal persons having committed or being liable for such offences , which reflect the seriousness of such offences .


### jurisdictional rules should be established to ensure that the terrorist offence may be effectively prosecuted . in particular , it appears necessary to establish jurisdiction for the offences committed by the providers of training for terrorism , whatever their nationality , in view of the possible effects of such behaviours on the territory of the union and of the close material connexion between the offences of providing and receiving training for terrorism . ### jurisdictional rules should be established to ensure that the terrorist offence may be effectively prosecuted and convicted . in particular , it appears necessary to establish jurisdiction for the offences committed by the providers of training for terrorism , whatever their nationality , in view of the possible effects of such behaviours on the territory of the union and of the close material connexion between the offences of providing and receiving training for terrorism .


### member state should adopt specific measures of protection , support and assistance responding to the specific needs of victims of terrorism , further qualifying and deepening the rights already contained in the directive 2012 / 29 / eu of the european parliament and the council28 . victims of terrorism are those defined in article 1 of the directive 2012 / 29 / eu , in relation to terrorist offences as referred to in article 3 . the measures to be taken by member states should ensure that in the event of a terrorist attack , the victims of terrorism will obtain emotional and psychological support , including trauma support and counselling , and any relevant legal , practical or financial information and advice . __________________ 28 directive 2012 / 29 / eu of the european parliament and of the council of 25 october 2012 establishing minimum standards on the rights , support and protection of victims of crime , and replacing council framework decision 2001 / 220 / jha of 15 march 2001 . ### member state should adopt measures of protection , support and assistance responding to the specific needs of victims of terrorism , further qualifying and deepening the rights already contained in the directive 2012 / 29 / eu of the european parliament and the council28 . victims of terrorism are those defined in article 2 of the directive 2012 / 29 / eu , in relation to terrorist offences as referred to in article 3 . the measures to be taken by member states should ensure that in the event of a terrorist attack , the victims of terrorism will obtain emotional and psychological support , including trauma support and counselling , and any relevant legal , practical or financial information and advice . __________________ 28 directive 2012 / 29 / eu of the european parliament and of the council of 25 october 2012 establishing minimum standards on the rights , support and protection of victims of crime , and replacing council framework decision 2001 / 220 / jha of 15 march 2001 .


### this directive respects the principles recognised by article 2 of the treaty on the european union , respects fundamental rights and freedoms and observes the principles recognised in particular by the charter of fundamental rights of the european union , including those set out in chapters ii , iii , v and vi thereof which encompass inter alia the right to liberty and security , freedom of expression and information , freedom of association and freedom of thought conscience and religion , the general prohibition of discrimination in particular on grounds of race , colour , ethnic or social origin , genetic features , language , religion or belief , political or any other opinion , the right to respect for private and family life and the right to protection of personal data , the principle of legality and proportionality of criminal offences and penalties , covering also the requirement of precision , clarity and foreseeability in criminal law , the presumption of innocence as well as freedom of movement as set forth in article 21 of the treaty on the functioning of the european union and directive 2004 / 38 / ec . this directive has to be implemented in accordance with these rights and principles . ### this directive respects the principles recognised by article 2 of the treaty on the european union , respects fundamental rights and freedoms and observes the principles recognised in particular by the charter of fundamental rights of the european union , including those set out in chapters ii , iii , v and vi thereof which encompass inter alia the right to liberty and security , freedom of expression and information , freedom of association and freedom of thought conscience and religion , the general prohibition of discrimination in particular on grounds of race , colour , gender , sexual orientation , ethnic or social origin , genetic features , language , disability , religion or belief , political or any other opinion , the right to respect for private and family life and the right to protection of personal data , the principle of legality and proportionality of criminal offences and penalties , covering also the requirement of precision , clarity and foreseeability in criminal law , the presumption of innocence as well as freedom of movement as set forth in article 21 of the treaty on the functioning of the european union and directive 2004 / 38 / ec . this directive has to be implemented in accordance with these rights and principles .


### this directive respects the principles recognised by article 2 of the treaty on the european union , respects fundamental rights and freedoms and observes the principles recognised in particular by the charter of fundamental rights of the european union , including those set out in chapters ii , iii , v and vi thereof which encompass inter alia the right to liberty and security , freedom of expression and information , freedom of association and freedom of thought conscience and religion , the general prohibition of discrimination in particular on grounds of race , colour , ethnic or social origin , genetic features , language , religion or belief , political or any other opinion , the right to respect for private and family life and the right to protection of personal data , the principle of legality and proportionality of criminal offences and penalties , covering also the requirement of precision , clarity and foreseeability in criminal law , the presumption of innocence as well as freedom of movement as set forth in article 21 of the treaty on the functioning of the european union and directive 2004 / 38 / ec . this directive has to be implemented in accordance with these rights and principles . ### this directive , in accordance with article 2 and 6 of the treaty on the european union , the european convention for the protection of human rights and fundamental freedoms , and other relevant obligations under international law , should not have the effect of requiring member states to take measures arbitrarily or unnecessarily limiting fundamental rights and freedoms and the principles recognised by the charter of fundamental rights of the european union , including those set out in chapters ii , iii , v and vi thereof which encompass inter alia the right to liberty and security , freedom of expression and information , freedom of association and freedom of thought conscience and religion , the general prohibition of discrimination in particular on grounds of race , colour , ethnic or social origin , genetic features , language , religion or belief , political or any other opinion , the right to respect for private and family life and the right to protection of personal data , the principle of legality and proportionality of criminal offences and penalties , covering also the requirement of precision , clarity and foreseeability in criminal law , the presumption of innocence as well as freedom of movement as set forth in article 21 of the treaty on the functioning of the european union and directive 2004 / 38 / ec . this directive has to be interpreted and implemented in accordance with these rights and principles .


### this directive establishes minimum rules concerning the definition of criminal offences and sanctions in the area of terrorist offences , offences related to a terrorist group and offences related to terrorist activities , as well as specific measures of protection of and assistance to victims of terrorism . ### this directive establishes minimum rules concerning the definition of criminal offences and sanctions in the area of terrorist offences , offences related to a terrorist group and offences related to terrorist activities , as well as specific measures of protection of and assistance and support to victims of terrorism .


### attacks upon the physical integrity of a person ; ### attacks upon the physical integrity of a person , including rape , sexual assault , trafficking and slavery of women and girls which often leads to death , and manipulation of women and girls in order to mislead them to travel to conflict areas outside the union or joining terroristic activities ;


### attacks upon the physical integrity of a person ; ### attacks upon the physical and psychological integrity of a person ;


### manufacture , possession , acquisition , transport , supply or use of weapons , explosives or of nuclear , biological or chemical weapons , as well as research into , and development of , biological and chemical weapons ; ### manufacture , possession , acquisition , transport , supply or use of weapons , explosives or of radiological , nuclear , biological or chemical weapons , as well as research into , and development of , biological and chemical weapons ;


### manufacture , possession , acquisition , transport , supply or use of weapons , explosives or of nuclear , biological or chemical weapons , as well as research into , and development of , biological and chemical weapons ; ### manufacture , possession , acquisition , transport , supply or use of weapons , explosives or of nuclear , biological or chemical weapons , as well as research into , and development of nuclear , biological and chemical weapons ;


### interfering with or disrupting the supply of water , power or any other fundamental natural resource the effect of which is to endanger human life ; ### interfering with or disrupting the supply of water , power or any other fundamental natural resource through cybernetic or other forms of attack the effect of which is to endanger human life ;


### each member state shall take the necessary measures to ensure that the following acts , when committed intentionally , are punishable as a criminal offence : ### each member state shall take the necessary measures to ensure that the following acts , when committed intentionally and unlawfully , are punishable as a criminal offence :


### participating in the activities of a terrorist group , including by supplying information or material resources , or by funding its activities in any way , with knowledge of the fact that such participation will contribute to the criminal activities of the terrorist group . ### participating in the activities of a terrorist group , with knowledge of the fact that such participation will significantly contribute to the terrorist activities of the group .


### organising or otherwise facilitating travelling abroad for terrorism ### organising or facilitating travelling abroad for the purpose of terrorism


### member states shall take the necessary measures to ensure that providing or collecting funds , by any means , directly or indirectly , with the intent that they should be used , or knowing that they are to be used , in full or in part , to commit any of the offence referred to in articles 3 to 10 and 12 to 14 or 16 is punishable as a criminal offence when committed intentionally . ### member states shall take the necessary measures to ensure that providing or collecting funds , by any means , directly or indirectly , with the intent that they should be used to commit any of the offences referred to in articles 3 , 4 and 9 is punishable as a criminal offence when committed intentionally .


### each member state shall take the necessary measures to ensure that attempting to commit an offence referred to in articles 3 , 6 , 7 , 9 and 11 to 14 , with the exception of possession as provided for in point of article 3 and the offence referred to in point of article 3 , is made punishable . ### each member state shall take the necessary measures to ensure that attempting to commit an offence referred to in articles 3 and 12 to 14 , with the exception of offences laid down in point to of article 3 , is made punishable .


### provides the administrative or judicial authorities with information which they would not otherwise have been able to obtain , helping them to : ### provides the competent authorities with information which they would not otherwise have been able to obtain , helping them to :


### provides the administrative or judicial authorities with information which they would not otherwise have been able to obtain , helping them to : ### provides the administrative or judicial authorities with information helping to :


### identify or bring to justice the other offenders ; ### identify or bring to justice other offenders ;


### the offence is committed against the institutions or people of the member state in question or against an institution , body , office or agency of the european union and based in that member state . ### the offence is committed against the institutions or people of the member state in question or against an institution , body , office , seizure of aircraft , ships or other means of public and goods transport or agency of the european union and based in that member state .


### member states shall ensure that specific services to assist and support victims of terrorism are in place . such services shall have the capacity and organisational structure necessary to provide assistance and support to these victims immediately after an attack and as long as necessary thereafter , in accordance with the specific needs of each victim . the services shall be confidential , free of charge and easily accessible to all victims of terrorism . they shall include in particular : ### member states shall ensure that specific services to assist and support victims of terrorism are in place . such services shall be gender - sensitive where relevant , have the capacity and organisational structure necessary to provide assistance and support to these victims immediately after an attack and as long as necessary thereafter , in accordance with the specific needs of each victim . the services shall be confidential , free of charge and easily accessible to all victims of terrorism . they shall include in particular :


### it is also important to identify the circumstances under which legal protection is justified . for this reason , it is necessary to establish the conduct and practices which are to be regarded as unlawful acquisition , use or disclosure of a trade secret . disclosure by union’s institutions and bodies or national public authorities of business - related information they hold pursuant to the obligations of regulation no 1049 / 2001 of the european parliament and of the council6 or to other rules on the access to documents should not be considered unlawful disclosure of a trade secret . __________________ 6 regulation no 1049 / 2001 of the european parliament and of the council of 30 may 2001 regarding public access to european parliament , council and commission documents . ### it is also important to identify the circumstances under which legal protection is justified . for this reason , it is necessary to establish the conduct and practices which are to be regarded as unlawful acquisition , use or disclosure of a trade secret . disclosure by union’s institutions and bodies or national public authorities of business - related information they hold pursuant to the obligations of regulation no 1049 / 2001 of the european parliament and of the council6 or to other rules on the access to documents is not to be considered unlawful disclosure of a trade secret . __________________ 6 regulation no 1049 / 2001 of the european parliament and of the council of 30 may 2001 regarding public access to european parliament , council and commission documents .


### in the interest of innovation and to foster competition , the provisions of this directive should not create any exclusive right on the know - how or information protected as trade secrets . thus , independent discovery of the same know - how and information remains possible and competitors of the trade secret holder are also free to reverse engineer any lawfully acquired product . ### in the interest of innovation and to foster competition , the provisions of this directive should not create any exclusive right on the know - how or information protected as trade secrets . this directive does not constitute an intellectual property right . thus , independent discovery of the same know - how and information remains possible and competitors of the trade secret holder are also free to reverse engineer any lawfully acquired product .


### this directive respects the fundamental rights and observes the principles recognised in particular by the charter of fundamental rights of the european union , notably the right to respect private and family life , the right to the protection of personal data , the freedom of expression and information , the freedom to choose an occupation and right to engage in work , the freedom to conduct a business , the right to property , the right to good administration , access to file and preservation of secrecy of business , the right to an effective remedy and to a fair trial and right of defence . ### this directive respects the fundamental rights and observes the principles recognised in particular by the charter of fundamental rights of the european union , notably the right to respect private and family life , the right to the protection of personal data , the freedom of expression and information , the freedom to choose an occupation and right to engage in work , the freedom to conduct a business , the right to property , the right to good administration , access to file and preservation of secrecy of business , the right to an effective remedy and to a fair trial and right of defence . thus the provisions of this directive should not apply , if the disclosure of undisclosed information is in the overriding public interest or can be considered as a fundamental right .


### is secret in the sense that it is not , as a body or in the precise configuration and assembly of its components , generally known among or readily accessible to persons within the circles that normally deal with the kind of information in question ; ### is secret in the sense that it is not , taken as a whole , as a new item of marketable value , accessible to persons within the circles that directly or indirectly , depending on their links with the market , deal with the kind of information in question ;


### unauthorised access to or copy of any documents , objects , materials , substances or electronic files , lawfully under the control of the trade secret holder , containing the trade secret or from which the trade secret can be deduced ; ### unlawful access to or copy of any documents , objects , materials , substances and electronic files under the legally established control of the trade secret holder ;


### the use or disclosure of a trade secret shall be considered unlawful whenever carried out , without the consent of the trade secret holder , intentionally or with gross negligence , by a person who is found to meet any of the following conditions : ### unauthorised disclosure of a trade secret take place where , without the consent of its holder , a legal or natural person who has had access to trade documentation belonging to the firm or to other proprietary sources intentionally or as a result of gross negligence :


### has acquired the trade secret unlawfully ; ### has acquired and used a specific trade secret unlawfully ;


### the use or disclosure of a trade secret shall also be considered unlawful whenever a person , at the time of use or disclosure , knew or should , under the circumstances , have known that the trade secret was obtained from another person who was using or disclosing the trade secret unlawfully within the meaning of the paragraph 3 . ### use or disclosure of a trade secret shall be taken to have started at the time when a natural person or market operator first made unauthorised use of it on the market .


### the acquisition of trade secrets shall be considered lawful when obtained by any of the following means : ### trade secrets shall not be considered to cover information obtained as a result of :


### independent discovery or creation ; ### independent technological discoveries and designs or independent manufacture of goods with properties that are identical or similar to those placed on the market by trade secret holders ;


### observation , study , disassembly or test of a product or object that has been made available to the public or that it is lawfully in the possession of the acquirer of the information ; ### observation , study , disassembly or test of a product or object that has been made available to the public or that is lawfully in the possession of a natural person or market operator with access to independent technological discoveries and designs and goods manufactured on the basis thereof ;


### for the purpose of revealing an applicant’s misconduct , wrongdoing or illegal activity , provided that the alleged acquisition , use or disclosure of the trade secret was necessary for such revelation and that the respondent acted in the public interest ; ### the purpose of revealing an applicant’s misconduct , wrongdoing or illegal activity to an appropriate authority , provided that the accused , without being negligent , could assume that the alleged acquisition , use or disclosure of the trade secret was necessary for such revelation ;


### member states shall ensure that the parties , their legal representatives , court officials , witnesses , experts and any other person participating in the legal proceedings relating to the unlawful acquisition , use or disclosure of a trade secret , or who has access to documents which form part of those legal proceedings , shall not be permitted to use or disclose any trade secret or alleged trade secret of which they have become aware as a result of such participation or access . ### member states shall ensure that the parties , their legal representatives , court officials , witnesses , experts and any other person participating in the legal proceedings relating to the unlawful acquisition , use or disclosure of a trade secret , or who has access to documents which form part of those legal proceedings , shall not be permitted to use or disclose any trade secret or alleged trade secret which the competent judicial authorities have identified as confidential after consultation of the parties and of which they have become aware as a result of such participation or access .


### member states shall ensure that , in considering a request for the adoption of the injunctions and corrective measures provided for in article 11 and assessing their proportionality , the competent judicial authorities take into account the value of the trade secret , the measures taken to protect the trade secret , the conduct of the infringer in acquiring , disclosing or using of the trade secret , the impact of the unlawful disclosure or use of the trade secret , the legitimate interests of the parties and the impact which the granting or rejection of the measures could have on the parties , the legitimate interests of third parties , the public interest and the safeguard of fundamental rights , including freedom of expression and information . ### member states shall ensure that , in considering a request for the adoption of the injunctions and corrective measures provided for in article 11 and assessing their proportionality , the competent judicial authorities take into account the value of the trade secret , the measures taken to protect the trade secret , the intentionality of the infringer in acquiring , disclosing or using of the trade secret , the conduct of the infringer in acquiring , disclosing or using of the trade secret , the impact of the unlawful disclosure or use of the trade secret , the legitimate interests of the parties and the impact which the granting or rejection of the measures could have on the parties , the legitimate interests of third parties , the public interest and the safeguard of fundamental rights , including freedom of expression and information .


### when the competent authorities limit the duration of the measure referred to in point of article 11 , such duration shall be sufficient to eliminate any commercial or economic advantage that the infringer could have derived from the unlawful acquisition , disclosure or use of the trade secret . ### when the competent authorities limit the duration of the measure referred to in article 11 , such duration shall be sufficient to eliminate any commercial or economic advantage that the infringer could have derived from the unlawful acquisition , disclosure or use of the trade secret .


### by xx xx 20xx [ four years after the end of the transposition period ] , the commission shall draw up an intermediate report on the application of this directive and submit it to the european parliament and the council . this report shall take due account of the report prepared by the european observatory on infringements of intellectual property rights . ### by xx xx 20xx [ four years after the end of the transposition period ] , the commission shall draw up an intermediate report on the application of this directive , including on its possible deleterious effects on fundamental rights and on workers ' mobility as well as possible further improvements on innovation cooperation with a special attention to the effects on small and medium - sized enterprises , and submit it to the european parliament and the council . this report shall take due account of the report prepared by the european observatory on infringements of intellectual property rights .


### it is appropriate to provide for rules at union level to approximate the national legislative systems so as to ensure a sufficient and consistent level of redress across the internal market in case of unlawful acquisition , use or disclosure of a trade secret . for this purpose , it is important to establish a homogenous definition of a trade secret without restricting the subject matter to be protected against misappropriation . such definition should therefore be constructed as to cover business information , technological information and know - how where there is both a legitimate interest in keeping confidential and a legitimate expectation in the preservation of such confidentiality . by nature , such definition should exclude trivial information and should not extend to the knowledge and skills gained by employees in the normal course of their employment and which are known among or accessible to persons within the circles that normally deal with the kind of information in question . ### it is appropriate to provide for rules at union level to approximate the national legislative systems so as to ensure a sufficient and consistent level of redress across the internal market in case of unlawful acquisition , use or disclosure of a trade secret . for this purpose , it is important to establish a homogenous and precise definition of a trade secret . such definition should therefore be constructed as to cover business information , technological information and know - how where there is both a legitimate interest in keeping confidential and a legitimate expectation in the preservation of such confidentiality . by nature , such definition should exclude trivial information and should not extend to the knowledge and skills gained by employees in the normal course of their employment and which are known among or accessible to persons within the circles that normally deal with the kind of information in question .


### ' trade secret ' means information which meets all of the following requirements : ### ' trade secret ' means confidential business information which meets all of the following requirements :


### ' trade secret ' means information which meets all of the following requirements : ### ' trade secret ' means know - how and commercial information which meets all of the following requirements :


### breach or inducement to breach a confidentiality agreement or any other duty to maintain secrecy ; ### breach or inducement to breach an agreement to maintain confidentiality ;


### the use or disclosure of a trade secret shall be considered unlawful whenever carried out , without the consent of the trade secret holder , intentionally or with gross negligence , by a person who is found to meet any of the following conditions : ### the use or disclosure of a trade secret shall be considered unlawful whenever carried out , without the consent of the trade secret holder , intentionally or with gross negligence , by a person who is found to meet any of the following conditions , with the effect of gaining an advantage or causing financial loss :


### the conscious and deliberate production , offering or placing on the market of infringing goods , or import , export or storage of infringing goods for those purposes , shall be considered an unlawful use of a trade secret . ### the conscious and deliberate production , offering or placing on the market of infringing goods , or import , export or storage of infringing goods for those purposes , shall be considered an unlawful use of a trade secret , in cases where the person engaging in this activity was , or depending on the circumstances , should have been , aware of the fact that unlawful use had been made of the trade secret .


### member states shall ensure that the parties , their legal representatives , court officials , witnesses , experts and any other person participating in the legal proceedings relating to the unlawful acquisition , use or disclosure of a trade secret , or who has access to documents which form part of those legal proceedings , shall not be permitted to use or disclose any trade secret or alleged trade secret of which they have become aware as a result of such participation or access . ### member states shall ensure that the parties , their representatives , court officials , witnesses , experts and any other person participating in the legal proceedings relating to the unlawful acquisition , use or disclosure of a trade secret , or who has access to documents which form part of those legal proceedings , shall not be permitted to use or disclose any trade secret or alleged trade secret which the competent judicial authorities have identified as confidential after consultation of the parties and of which they have become aware as a result of such participation or access .


### member states shall ensure that the competent judicial authorities , on the application of the injured party , order the infringer who knew or ought to have known that he or she was engaging in unlawful acquisition , disclosure or use of a trade secret , to pay the trade secret holder damages commensurate to the actual prejudice suffered . ### member states shall ensure that the competent judicial authorities , on the application of the injured party , order the infringer who knew or ought to have known that he or she was engaging in unlawful acquisition , disclosure or use of a trade secret , to pay the trade secret holder damages commensurate to the actual prejudice suffered as a result of the infringement .


### the commission has carried out an evaluation of the functioning of directive 2009 / 103 / ec of the european parliament and of the council15 , including its efficiency effectiveness and coherence with other union policies . the conclusion of the evaluation was that directive 2009 / 103 / ec functions well on the whole , and does not need amendment in most aspects . however , four areas were identified where targeted amendments would be appropriate : compensation of victims of accidents in cases of insolvency of an insurance undertaking , minimum obligatory amounts of insurance cover , insurance checks of vehicles by member states , and the use of policyholders’ claims history statements by a new insurance undertaking . _________________ 15 directive 2009 / 103 / ec of the european parliament and of the council of 16 september 2009 relating to insurance against civil liability in respect of the use of motor vehicles , and the enforcement of the obligation to insure against such liability . ### the commission has carried out an evaluation of the functioning of directive 2009 / 103 / ec of the european parliament and of the council15 , including its efficiency effectiveness and coherence with other union policies . the conclusion of the evaluation was that directive 2009 / 103 / ec functions well on the whole , and does not need amendment in most aspects . however , four areas were identified where targeted amendments would be appropriate : compensation of victims of accidents in cases of insolvency of an insurance undertaking , minimum obligatory amounts of insurance cover , insurance checks of vehicles by member states , and the use of policyholders’ claims history statements by a new insurance undertaking . a compulsory ‘ bonus - malus’ system should also be introduced to be used in the calculation of insurance premiums based on claims history statements by insurance undertakings . such a system would be an incentive for safe driving and thus make road traffic safer . it would also lead to fairer insurance premiums for consumers . _________________ 15 directive 2009 / 103 / ec of the european parliament and of the council of 16 september 2009 relating to insurance against civil liability in respect of the use of motor vehicles , and the enforcement of the obligation to insure against such liability .


### previous claims histories of policyholders who seek to conclude new insurance contracts with insurance undertakings should be easily authenticated in order to facilitate the recognition of such claims history when concluding a new insurance policy . in order to simplify the verification and authentication of claims history statements , it is important that the content and format of the statement of such claims histories are the same across all member states . in addition , insurance undertakings that take into account claims history statements to determine motor insurance premiums should not discriminate on the basis of nationality or solely on the basis of the previous member state of residence of the policyholder . to enable member states to verify how insurance undertakings treat claims history statements , insurance undertakings should publish their policies in respect of their use of claims history when calculating premiums . ### previous claims histories of policyholders who seek to conclude new insurance contracts with insurance undertakings should be easily authenticated in order to facilitate the recognition of such claims history when concluding a new insurance policy . in order to simplify the verification and authentication of claims history statements , it is important that the content and format of the statement of such claims histories are the same across all member states . in addition , insurance undertakings should use a compulsory ‘ bonus - malus’ system to determine motor insurance premiums . claims history statements should be taken into account . there should be no discrimination on the basis of nationality or solely on the basis of the previous member state of residence of the policyholder . to enable member states to verify how insurance undertakings treat claims history statements , insurance undertakings should publish their policies in respect of their use of claims history when calculating premiums .


### member states shall ensure that insurance undertakings or the bodies as referred to in the second subparagraph , when taking account of claims history statements issued by other insurance undertakings or other bodies as referred to in the second subparagraph , do not treat policyholders in a discriminatory manner or surcharge their premiums because of their nationality or solely on the basis of their previous member state of residence . ### member states shall ensure that insurance undertakings and the bodies as referred to in the second subparagraph , when taking account of claims history statements issued by other insurance undertakings or other bodies as referred to in the second subparagraph , do not treat policyholders in a discriminatory manner or surcharge their premiums because of their nationality or solely on the basis of their previous member state of residence .


### no later than seven years after the date of transposition of this directive , an evaluation of this directive shall be carried out . the commission shall communicate the conclusions of the evaluation accompanied by its observations to the european parliament , the council and the european economic and social committee . ### no later than five years after the date of transposition of this directive , an evaluation of this directive shall be carried out . in particular , the expediency of this directive with regard to technological developments relating to autonomous and semi - autonomous vehicles should be assessed , and it should be examined whether the regime of liability of this directive takes into account the new technological conditions or whether a new strict liability offence should be introduced which is based solely on autonomous vehicles as a source of danger and at the same time involves no uncontrolled liability risks in order not to stand in the way of the use of new technologies . the commission shall communicate the conclusions of the evaluation , accompanied by its observations , to the european parliament , the council and the european economic and social committee , attaching , where necessary , a legislative proposal .


### the internal market is a cornerstone of the union . since its inception , it has proved a major contributor to growth , competitiveness and employment . it has generated new opportunities and economies of scale for european businesses , notably micro , small and medium sized enterprises , and strengthened their industrial competitiveness . the internal market contributed to the creation of jobs and offered greater choice at lower prices for consumers . it continues to be an engine for building a stronger , more balanced and fairer economy . it is one of the union ' s major achievements and its best asset in an increasingly global world . ### the internal market is a cornerstone of the union . since its inception , it has proved a major contributor to growth , competitiveness and employment . it has generated new opportunities and economies of scale for european businesses , notably micro , small and medium sized enterprises , and strengthened their industrial competitiveness . the internal market contributed to the creation of jobs and offered greater choice at lower prices for consumers . it continues to be an engine for economic growth and for building a stronger , more balanced and fairer economy . it is one of the union ' s major achievements and its best asset in an increasingly global world .


### many of the union ' s competitiveness problems involve smes ' difficulties in obtaining access to finance because they struggle to demonstrate their credit - worthiness and have insufficient collateral . additional financing challenges arise from smes ' need to stay competitive by engaging e . g . in digitization , internationalization and innovation activities and skilling up their workforce . limited access to finance has a negative effect on businesses creation , growth and survival rates , as well as on the readiness of new entrepreneurs to take over viable companies in the context of a business succession . ### many of the union ' s competitiveness problems involve smes ' difficulties in obtaining access to finance because they struggle to demonstrate their credit - worthiness and have insufficient collateral . additional financing challenges arise from the smaller size of micro - enterprises and smes ' need to stay competitive by engaging e . g . in digitization , internationalization and innovation activities and skilling up their workforce . limited access to finance has a negative effect on businesses creation , growth and survival rates , as well as on the readiness of new entrepreneurs to take over viable companies in the context of a business succession .


### the union and member states are committed to the implementation of the united nations 2030 agenda for sustainable development . by contributing to the achievement of the 2030 agenda , the union and member states will foster a stronger , more sustainable , inclusive , secure and prosperous europe . the programme should contribute to the implementation of the 2030 agenda , including by balancing the economic , social and environmental dimensions of sustainable development . ### the union and member states are committed to deliver on in being a frontrunner in implementing the united nations 2030 agenda for sustainable development . by contributing to the achievement of the 2030 agenda , the union and member states will foster a stronger , more sustainable , inclusive , secure and prosperous europe . the programme should contribute to the implementation of the 2030 agenda , including by balancing the economic , social and environmental dimensions of sustainable development , providing to that end clear and visible commitment in its mff regulation , and mainstreaming the sustainable development goals , as requested by the european parliament resolutions of the 14 march and 30 may2018 on the 2021 - 2027 mff .


### the fund would contribute to the establishment of a strong , competitive and innovative defence industrial and technological base and go hand in hand with the union ' s initiatives towards a more integrated european defence market and in particular , the two directives6 on procurement and on eu transfers in the defence sector adopted in 2009 . _________________ 6 directive 2009 / 43 / ec of the european parliament and of the council , simplifying terms and conditions of transfers of defence - related products within the community , oj l 146 , 10 . 6 . 2009 , p . 1 ; directive 2009 / 81 / ec of the european parliament and of the council on the coordination of procedures for the award of certain works contracts , supply contracts and service contracts by contracting authorities or entities in the fields of defence and security , oj l 216 , 20 . 8 . 2009 , p . 76 . ### the fund would contribute to the establishment of a strong , integrated and innovative defence industrial and technological base , as well as to efficiency gains enabling the reduction of the overall defence spending in the union , while at the same time ensuring the necessary defence capabilities to perform the essential core tasks of collective defence , crisis management and cooperative security . the fund would go hand in hand with the union ' s initiatives towards a more integrated european defence market and in particular , the two directives6 on procurement and on eu transfers in the defence sector adopted in 2009 . _________________ 6 directive 2009 / 43 / ec of the european parliament and of the council , simplifying terms and conditions of transfers of defence - related products within the community , oj l 146 , 10 . 6 . 2009 , p . 1 ; directive 2009 / 81 / ec of the european parliament and of the council on the coordination of procedures for the award of certain works contracts , supply contracts and service contracts by contracting authorities or entities in the fields of defence and security , oj l 216 , 20 . 8 . 2009 , p . 76 .


### following an integrated approach and in order to contribute to the enhancement of the competitiveness and innovation capacity of the union ' s defence industry , a european defence fund should be established . the fund should aim at enhancing the competitiveness , innovation , efficiency and autonomy of the union ' s defence industry thereby contributing to the union ' s strategic autonomy by supporting the cross border cooperation between member states and between enterprises , research centres , national administrations , international organisations and universities , in the research phase and in the development phase of defence products and technologies . to achieve more innovative solutions and an open internal market , the fund should support the cross - border participation of defence small and medium sized enterprises and middle capitalisation companies . ### following an integrated approach and in order to contribute to the enhancement of the integration , efficiency gains and innovation capacity of the union ' s defence industry , a european defence fund should be established . the fund should aim at enhancing the competitiveness , innovation , efficiency and autonomy of the union ' s defence industry thereby contributing to the union ' s strategic autonomy in line with the political goals of the common foreign and security policy by supporting the cross border cooperation between member states and between enterprises , research centres , national administrations , international organisations and universities , in the research phase and in the development phase of defence products and technologies .


### as the objective of the fund is to support the competitiveness and innovation of the union defence industry by leveraging and complementing collaborative defence research and technology activities and de - risking the development phase of cooperative projects , actions related to the research and development of a defence product or technology should be eligible to benefit from it . this will also apply to the upgrade , including the interoperability thereof , of existing defence products and technologies . ### as the objective of the fund is to support the integration , efficiency and innovation and alleviating any potential negative effects of the integration of the union defence industry by leveraging and complementing collaborative defence research and technology activities and alleviating some of the risk of the development phase of cooperative projects , actions related to the research and development of a defence product or technology , as well as those aiming at conversion from military to civil production should be eligible to benefit from it . this will also apply to the upgrade , including the interoperability thereof , of existing defence products and technologies .


### as the objective of the fund is to support the competitiveness and innovation of the union defence industry by leveraging and complementing collaborative defence research and technology activities and de - risking the development phase of cooperative projects , actions related to the research and development of a defence product or technology should be eligible to benefit from it . this will also apply to the upgrade , including the interoperability thereof , of existing defence products and technologies . ### as the objective of the fund is to support the competitiveness and innovation of the union defence industry by leveraging and complementing collaborative defence research , inovation and technology activities and de - risking the development phase of cooperative projects , actions related to the research and development of a defence product or technology should be eligible to benefit from it . this will also apply to the upgrade , including the interoperability thereof , of existing defence products and technologies .


### given that the fund aims particularly at enhancing cooperation between legal entities and member states across europe , an action should be eligible for funding only if it is undertaken by a cooperation of at least three legal entities based in at least three different member states and / or associated countries . at least three of these legal eligible entities established in at least two different member states and / or associated countries should not be effectively controlled , directly or indirectly , by the same entity or should not control each other . in order to boost the cooperation between member states the fund may support joint pre - commercial procurement . ### given that the fund aims particularly at enhancing cooperation between legal entities and member states across europe , an action should be eligible for funding only if it is undertaken by a cooperation of at least four legal entities based in at least three different member states and / or associated countries . at least four of these legal eligible entities established in at least two different member states and / or associated countries should not be effectively controlled , directly or indirectly , by the same entity or should not control each other . in order to boost the cooperation between member states the fund may support joint pre - commercial procurement ; this rule shall not apply to actions in support of conversion from military to civil production .


### the promotion of innovation and technological development in the union defence industry should take place in a manner coherent with the security and defence interests of the union . accordingly , the action ' s contribution to those interests and to the defence research and capability priorities commonly agreed by member states should serve as an award criterion . within the union , common defence research and capability shortfalls are identified in the common security and defence policy framework notably through overarching strategic research agenda and the capability development plan . other union processes such as the coordinated annual review on defence and the permanent structured cooperation will support the implementation of relevant priorities through identifying and taking forward opportunities for enhanced cooperation with a view to fulfilling the eu level of ambition on security and defence . where appropriate , regional and international priorities , including those in the north atlantic treaty organisation context , may also be taken into account if they are in line with union priorities and do not prevent any member state or an associated country from participating , while also taking into account that unnecessary duplication should be avoided . ### the promotion of innovation and technological development in the union defence industry should serve the security and defence interests of the union . taking into account the specific nature of the defence sector , any action in the field of defence industry should be closely coordinated and be coherent with the foreign and security policies and priorities of the union . accordingly , the action ' s contribution to those interests and to the defence research and capability priorities commonly agreed by member states in line with union policies and political priorities should serve as an award criterion . within the union , common defence research and capability shortfalls are identified in the common security and defence policy framework notably through overarching strategic research agenda and the capability development plan . other union processes such as the coordinated annual review on defence and the permanent structured cooperation will support the implementation of relevant priorities through identifying and taking forward opportunities for enhanced cooperation with a view to fulfilling the eu level of ambition on security and defence . where appropriate , regional and international priorities , including those in the north atlantic treaty organisation context , may also be taken into account if they are in line with union priorities and do not prevent any member state or an associated country from participating , while also taking into account that unnecessary duplication should be avoided .


### the promotion of innovation and technological development in the union defence industry should take place in a manner coherent with the security and defence interests of the union . accordingly , the action ' s contribution to those interests and to the defence research and capability priorities commonly agreed by member states should serve as an award criterion . within the union , common defence research and capability shortfalls are identified in the common security and defence policy framework notably through overarching strategic research agenda and the capability development plan . other union processes such as the coordinated annual review on defence and the permanent structured cooperation will support the implementation of relevant priorities through identifying and taking forward opportunities for enhanced cooperation with a view to fulfilling the eu level of ambition on security and defence . where appropriate , regional and international priorities , including those in the north atlantic treaty organisation context , may also be taken into account if they are in line with union priorities and do not prevent any member state or an associated country from participating , while also taking into account that unnecessary duplication should be avoided . ### the promotion of innovation , research and technological development in the union defence industry should take place in a manner coherent with the security and defence interests of the union . accordingly , the action ' s contribution to those interests and to the defence research and capability priorities commonly agreed by member states should serve as an award criterion . within the union , common defence research and capability shortfalls are identified in the common security and defence policy framework notably through overarching strategic research agenda and the capability development plan . other union processes such as the coordinated annual review on defence and the permanent structured cooperation will support the implementation of relevant priorities through identifying and taking forward opportunities for enhanced cooperation with a view to fulfilling the eu level of ambition on security and defence . where appropriate , regional and international priorities , including those in the north atlantic treaty organisation context , may also be taken into account if they are in line with union priorities and do not prevent any member state or an associated country from participating , while also taking into account that unnecessary duplication should be avoided .


### the commission should establish annual or multiannual work programmes in line with the objectives of the fund . the commission should be assisted in the establishment of the work programme by a committee of member states . in order to benefit from its expertise in the defence sector , the european defence agency will be given the status of an observer in the committee . given the specificities of the defence area , the european external action service should also assist in the committee of member states . ### the commission should establish annual or multiannual work programmes in line with the objectives of the fund . the commission should be assisted in the establishment of the work programme by a committee of member states . in order to benefit from its expertise in the defence sector , the european defence agency will be given the status of an observer in the committee . given the specificities of the defence area , the european external action service should also assist in the committee of member states . the european parliament may send representatives to the committee .


### the commission should establish annual or multiannual work programmes in line with the objectives of the fund . the commission should be assisted in the establishment of the work programme by a committee of member states . in order to benefit from its expertise in the defence sector , the european defence agency will be given the status of an observer in the committee . given the specificities of the defence area , the european external action service should also assist in the committee of member states . ### the commission should establish annual or multiannual work programmes in line with the objectives of the fund . the commission should be assisted in the establishment of the work programme by a committee of member states and representatives from the european parliament . in order to benefit from its expertise in the defence sector , the european defence agency will be given the status of a participant in the committee . given the specificities of the defence area , the european external action service should also participate in the committee of member states .


### the commission shall award funding through open and public consultations on the areas of intervention defined in the work programmes . ### the commission shall award funding for support to , but not limited to , disruptive technologies for defence&#160 ; through open and public consultations on the areas of intervention defined in the work programmes .


### applicants and their subcontractors shall be eligible for funding provided that they are established in the union or in an associated country , have their executive management structures in the union or in an associated country and are not controlled by a non - associated third country or by a non - associated third country entity . ### applicants and their subcontractors shall be eligible for funding provided that they are established in the union or in an associated country as laid down in article 5 , have their executive management structures in the union or in an associated country under article 5 , and are not controlled by a non - associated third country or by a non - associated third country entity .


### by derogation from paragraph 1 , an applicant established in the union or in an associated country and controlled by a non - associated third country or a non - associated third country entity may be eligible for funding if this is necessary for achieving the objectives of the action and provided that its participation will not put at risk the security interests of the union and its member states . in order to ensure protection of the security interests of the union and its member states , the call for proposals shall require the applicant to provide information demonstrating notably that : ### by derogation from paragraph 1 , an applicant established in the union or in an associated country and controlled by anon - associated third country or a non - associated third country entity may be eligible for funding if it has been proven that no provider can be found within the union and if this is necessary for achieving the objectives of the action and provided that its participation will not put at risk the security interests of the union and its member states . in order to ensure protection of the security interests of the union and its member states , the call for proposals shall require the applicant to provide information demonstrating notably that :


### all infrastructure , facilities , assets and resources used in actions financed under the fund shall be located on the territory of the union or associated countries . furthermore , when performing an eligible action , beneficiaries and their subcontractors shall cooperate only with legal entities established in the union or in an associated country and not controlled by non - associated third countries or non - associated third country entities . ### all registered offices , infrastructure , facilities , assets and resources used in actions financed under the fund shall be located on the territory of the union or associated countries . furthermore , when performing an eligible action , beneficiaries and their subcontractors shall cooperate only with legal entities established in the union or in an associated country and not controlled by non - associated third countries or non - associated third country entities .


### for the purpose of this article , subcontractors means subcontractors with a direct contractual relationship to a beneficiary , other subcontractors to which at least 10% of the total eligible costs of the action is allocated , and subcontractors which may require access to classified information according to commission decision 2015 / 444 in order to carry out the action . ### for the purpose of this article , subcontractors means subcontractors with a direct contractual relationship to a beneficiary , other subcontractors to which at least 10% of the total eligible costs of the action is allocated , and subcontractors which may require access to highly classified information according to commission decision 2015 / 444 in order to carry out the action .


### unless otherwise provided for in the work programme referred to in article 27 , the action shall be undertaken in a cooperation of at least three legal entities which are established in at least three different member states and / or associated countries . at least three of these eligible entities established in at least two member states and / or associated countries shall not , during the whole implementation of the action , be effectively controlled , directly or indirectly , by the same entity , and shall not control each other . ### unless otherwise provided for in the work programme referred to in article 27 , the action shall be undertaken in a cooperation of at least four legal entities which are established in at least three different member states and / or associated countries . at least four of these eligible entities established in at least two member states and / or associated countries shall not , during the whole implementation of the action , be effectively controlled , directly or indirectly , by the same entity , and shall not control each other . this rule shall not apply to actions in support of conversion from military to civil production .


### actions for the development of products and technologies the use , development or production of which is prohibited by applicable international law shall not be eligible . ### actions for the development of products and technologies the use , development , production or trade of which is prohibited by applicable international law shall not be eligible .


### contribution to the creation of new cross - border cooperation between legal entities , in particular for smes which are established in member states and / or associated countries other than those where the entities in the consortium which are not smes are established ; ### contribution to the creation of new cross - border cooperation between legal entities ;


### if union assistance is provided in the form of public procurement , results shall be owned by the union . member states and associated countries shall enjoy access rights to the results , free of charge , upon their explicit request . ### if union assistance is provided in the form of public procurement , results shall be owned by the union . member states and associated countries shall enjoy access rights to the results , free of charge , upon their explicit request . where beneficiaries in an action have jointly generated results , and where their respective contribution to the joint results cannot be ascertained , or where it is not possible to separate such joint results for the purpose of applying for , obtaining or maintaining the relevant intellectual property rights protection , they will have joint ownership of those results . the joint owners will establish an agreement regarding the allocation and terms of exercise of that joint ownership in accordance with their obligations under the grant agreement .


### the commission shall be assisted by a committee within the meaning of regulation no 182 / 2011 . the european defence agency shall be invited as an observer to provide its views and expertise . the european external action service shall also be invited to assist . ### the commission shall be assisted by an expert committee selected transparently and with a balanced participation of defence experts from academia , research organisations , eu institutions including the european parliament and think tanks . the european defence agency shall be invited as a participant to provide its views and expertise . the european external action service shall also be invited to participate .


### mechanisms to ensure a link between union funding policies and the economic governance of the union should be further refined , allowing the commission to make a proposal to the council to suspend all or part of the commitments for one or more of the programmes of the member state concerned where that member state fails to take effective action in the context of the economic governance process . in order to ensure uniform implementation and in view of the importance of the financial effects of measures being imposed , implementing powers should be conferred on the council which should act on the basis of a commission proposal . to facilitate the adoption of decisions which are required to ensure effective action in the context of the economic governance process , reversed qualified majority voting should be used . ### mechanisms to ensure a link between union funding policies and the economic governance of the union should be further refined , allowing the commission to make a proposal to the council to suspend all or part of the commitments for one or more of the programmes of the member state concerned where that member state fails to take effective action in the context of the economic governance process . in order to ensure uniform implementation and in view of the importance of the financial effects of measures being imposed , implementing powers should be conferred on the council which should act on the basis of a commission proposal and after consulting the european parliament . to facilitate the adoption of decisions which are required to ensure effective action in the context of the economic governance process , reversed qualified majority voting should be used .