### to the extent necessary for an understanding of such development , performance or position , the analysis shall include both financial and non - financial key performance indicators relevant to the particular business . ### to the extent necessary for an understanding of such development , performance or position , as well as environmental , social and human rights - matters , including from a gender equality perspective , the analysis shall include both financial and non - financial key performance indicators relevant to the particular business .


### a description of the company ' s diversity policy for its administrative , management and supervisory bodies with regard to aspects such as age , gender , geographical diversity , educational and professional background , the objectives of this diversity policy , how it has been implemented and the results in the reporting period . if the company has no such policy , the statement shall contain a clear and reasoned explanation as to why this is the case . ### a description of the company ' s diversity policy for its administrative , management and supervisory bodies with regard to gender and other aspects such as age , gender , geographical diversity , disability , educational and professional background , the objectives of this diversity policy , how it has been implemented and the results in the reporting period . if the company has no such policy , the statement shall contain a clear and reasoned explanation as to why this is the case .


### a description of the company ' s diversity policy for its administrative , management and supervisory bodies with regard to aspects such as age , gender , geographical diversity , educational and professional background , the objectives of this diversity policy , how it has been implemented and the results in the reporting period . if the company has no such policy , the statement shall contain a clear and reasoned explanation as to why this is the case . ### a description of the company ' s and listed public undertaking ' s diversity policy for its administrative , management and supervisory bodies with regard to aspects such as age , gender and other , disability , geographical diversity , educational and professional background , the objectives of this diversity policy , how it has been implemented and the results in the reporting period . if the company has no such policy , the statement shall contain a clear and reasoned explanation as to why this is the case .


### a description of the company ' s diversity policy for its administrative , management and supervisory bodies with regard to aspects such as age , gender , geographical diversity , educational and professional background , the objectives of this diversity policy , how it has been implemented and the results in the reporting period . if the company has no such policy , the statement shall contain a clear and reasoned explanation as to why this is the case . ### a description of the company ' s diversity policy for its administrative , management and supervisory bodies with regard to gender and other aspects such as age , gender , geographical diversity , educational and professional background , the objectives of this diversity policy , how it has been implemented and the results in the reporting period . effective monitoring of equal opportunities and diversity in the workplace is an important part of improved human capital management and equality practice . if the company has no such policy , it shall be subject to administrative and financial sanctions .


### the consolidated annual report shall include a fair review of the development and performance of the business and of the position of the undertakings included in the consolidation taken as a whole , together with a description of the principal risks and uncertainties that they face . ### the consolidated annual report shall include a fair review of the development and performance of the business and of the position of the undertakings included in the consolidation taken as a whole , together with a description of the principal risks and uncertainties that they face , and a description of its impacts on gender , and social , environmental and human rights impacts .


### for parent undertakings of undertakings to be consolidated that together exceed an average number of 500 employees during the financial year , and , on their balance sheet dates , exceed either a balance sheet total of eur 20 million or a net turnover of eur 40 million , the review shall also include a non - financial statement containing information relating to at least environmental , social and employee matters , respect for human rights , anti - corruption and bribery matters , including the following : ### for parent undertakings of undertakings to be consolidated that together exceeds an average number of 250 employees during the financial year , and , on their balance sheet dates , exceed either a balance sheet total of eur 20 million or a net turnover of eur 40 million , the review shall also include a non - financial statement containing information relating to at least environmental , gender equality social and employee matters , respect for human rights , anti - corruption and bribery matters , taking into account the company ' s supply chain , including the following :


### the risks related to these matters and how the company manages those risks . ### the risks for company and society related to these matters and how the company manages those risks .


### - the risks related to these matters and how the company manages those risks . ### - the risks for company and society related to these matters and how the company manages those risks .


### member states shall bring into force the laws , regulations and administrative provisions necessary to comply with this directive by [ &#8230 ; ] at the latest . they shall forthwith communicate to the commission the text of those provisions . ### member states shall ensure effective means in order to monitor and enforce full and accurate disclosure of non - financial information by companies in compliance with the provisions of this directive . member states shall bring into force the laws , regulations and administrative provisions necessary to comply with this directive by [ &#8230 ; ] at the latest . they shall forthwith communicate to the commission the text of those provisions .


### having regard to the need of ensuring appropriate monitoring , by the member states as well as by the commission , of the implementation of financial engineering instruments , inter alia in order to allow the member states to provide appropriate information to the commission on the type of instruments put in place and on the relevant actions undertaken by such instruments on the ground , it is necessary to introduce a provision on reporting . this would also allow the commission to better assess the overall performance of financial engineering instruments . ### having regard to the need of ensuring appropriate monitoring , by the member states as well as by the commission , of the implementation of financial engineering instruments and repayable assistance , inter alia in order to allow the member states to provide appropriate information to the commission on the type of instruments and repayable assistance put in place and on the relevant actions undertaken in the context of such measures on the ground , it is necessary to introduce a provision on reporting . this would also allow the commission to better assess the overall performance of financial engineering instruments and repayable assistance .


### in order to ensure compliance with article 61 of the council regulation 1605 / 2002 on the financial regulation applicable to the general budget of the european communities , it is necessary to require that the statement of expenditure to be submitted to the commission shall provide all information necessary for the commission to produce accounts which give a true image of the union ' s assets and of budgetary implementation ### in order to ensure compliance with article 61 and title vii of the council regulation 1605 / 2002 on the financial regulation applicable to the general budget of the european communities , it is necessary to require that the statement of expenditure to be submitted to the commission shall provide all information necessary for the commission to produce accounts which give a true image of the union ' s assets and of budgetary implementation .


### in order to ensure compliance with article 61 of the council regulation 1605 / 2002 on the financial regulation applicable to the general budget of the european communities , it is necessary to require that the statement of expenditure to be submitted to the commission shall provide all information necessary for the commission to produce accounts which give a true image of the union ' s assets and of budgetary implementation . ### in order to ensure compliance with article 61 of the council regulation 1605 / 2002 on the financial regulation applicable to the general budget of the european communities , it is necessary to require that the statement of expenditure to be submitted to the commission shall provide all information necessary for the commission to produce transparent accounts which give a true image of the union ' s assets and of budgetary implementation .


### by its departments , by union delegations in accordance with the second paragraph of article 53 , or through executive agencies referred to in article 59 ; ### by its departments , by the heads of delegation acting as subdelegated authorising officers of the commission in accordance with the second paragraph of article 53 , or by its staff in the union delegations under the supervision of the respective head of delegation ;


### legislative action at union level is also necessary to implement the who framework convention on tobacco control of may 2003 to which the european union and its member states are parties . of relevance are in particular its articles 9 , 10 , 11 , 13 and 15 . a set of guidelines for the implementation of fctc provisions was adopted by consensus during various conferences of the parties to the fctc with the support of the union and the member states . ### legislative action at union level is also necessary to implement the landmark who framework convention on tobacco control of may 2003 . all member states and the european union itself have signed and ratified the convention and as a result are bound under international law by the provisions of the fctc . of particular relevance are articles 9 , 10 , 11 , 13 and 15 . a set of guidelines for the implementation of fctc provisions was adopted by consensus during various conferences of the parties to the fctc with the support of the union and the member states .


### the likelihood of diverging regulation is further increased by concerns over tobacco products , including smokeless tobacco products , having a characterising flavour other than tobacco , which may facilitate uptake of tobacco consumption or affect consumption patterns . for example , in many countries , sales of mentholated products gradually increased even as smoking prevalence overall declined . a number of studies indicated that mentholated tobacco products can facilitate inhalation as well as smoking uptake among young people . measures introducing unjustified differences of treatment between flavoured cigarettes should be avoided . ### the likelihood of diverging regulation is further increased by concerns over tobacco products , having a characterising flavour other than tobacco and menthol , which may facilitate uptake of tobacco consumption or affect consumption patterns .


### such disparities are liable to constitute a barrier to trade and to impede the operation of the internal market in tobacco products , and should therefore be eliminated . also , consumers in some member states may be better informed about the health risks of tobacco products than in others . without further action at union level , the existing disparities are likely to increase in the coming years . ### such disparities are liable to constitute a barrier to trade and to impede the operation of the internal market in tobacco products , and should therefore be eliminated . also , consumers in some member states may be better informed about the health risks of tobacco products than in others . without further harmonising action at union level , the existing disparities are likely to increase in the coming years .


### considerable volumes of illicit products , which do not comply with the requirements laid down in directive 2001 / 37 / ec , are placed on the market and indications are that these volumes might increase . such products undermine the free circulation of compliant products and the protection provided for by tobacco control legislations . in addition , the fctc obliges the union to fight against illicit products , as part of a comprehensive tobacco control policy . provision should thus be made for unit packets of tobacco products to be marked in a unique and secure way and their movements to be recorded so that these products can be tracked and traced in the union and their compliance with this directive can be monitored and better enforced . in addition , provision should be made for the introduction of security features that will facilitate the verification of whether or not products are authentic . ### considerable volumes of illicit products , which do not comply with the requirements laid down in directive 2001 / 37 / ec , are placed on the market and indications are that these volumes might increase . such products undermine the free circulation of compliant products and the protection provided for by tobacco control legislations . in addition , the fctc obliges the union to fight against illicit products , as part of a comprehensive tobacco control policy . provision should thus be made for unit packets of tobacco products to be marked in a unique and secure way and their movements to be recorded so that these products can be tracked and traced in the union and their compliance with this directive can be monitored and better enforced in order to restrain illegal trafficking of tobacco products especially along the external borders of the union . in addition , provision should be made for the introduction of security features that will facilitate the verification of whether or not products are authentic . the commission and member states should also ensure that any measures adopted in application of this directive do not lead indirectly to an increase in the illicit trade in tobacco products .


### the notification obligation for novel tobacco products ; ### the pre - market authorisation obligation for novel tobacco products ;


### in order to facilitate the functioning of the internal market in tobacco and related products , taking as a basis a high level of health protection . ### in order to meet commitments under the who framework convention for tobacco control and in order to facilitate the functioning of the internal market in tobacco and related products , taking as a base a high level of health protection , especially for young people ,


### ' characterising flavour ' means a distinguishable aroma or taste other than tobacco , resulting from an additive or combination of additives , including but not limited to fruit , spice , herb , alcohol , candy , menthol or vanilla observable before or upon intended use of the tobacco product ; ### ' characterising flavour ' means a distinguishable aroma or taste other than tobacco or menthol , resulting from an additive or combination of additives , including but not limited to fruit , spice , herb , alcohol , candy or vanilla observable before or upon intended use of the tobacco product ;


### ' maximum level ' or ' maximum yield ' means the maximum content or emission , including 0 , of a substance in a tobacco product measured in grams ; ### ‘ maximum level’ means the maximum content of a substance in a tobacco product measured in grams ;


### ‘ substantial change of circumstances’ means an increase of the sales volumes by product category , such as pipe tobacco , cigar , cigarillo , by at least 10% in at least 10 member states based on sales data transmitted in accordance with article 5 ; or an increase of the prevalence level in the consumer group under 25 years of age by at least 5 percentage points in at least 10 member states for the respective product category based on ____ [ this date will be set at the moment of adoption of the directive ] eurobarometer report or equivalent prevalence studies ; ### ‘ substantial change of circumstances’ means an increase of the sales volumes by product category , such as pipe tobacco , cigar , cigarillo , by at least 10% in at least the 10 member states with the largest market volume , based on sales data transmitted in accordance with article 5 ; or an increase of the prevalence level in the consumer group under 25 years of age by at least 5 percentage points in at least the 10 member states with the largest market volume , for the respective product category based on ____ [ this date will be set at the moment of adoption of the directive ] eurobarometer report or equivalent prevalence studies ;


### ' additive ' means substance contained in a tobacco product , its unit packet or any outside packaging with the exception of tobacco leaves and other natural or unprocessed parts of tobacco plants ; ### ‘ additive’ means substance contained in a tobacco product with the exception of tobacco leaves and other natural or unprocessed parts of tobacco plants ;


### ' characterising flavour ' means a distinguishable aroma or taste other than tobacco , resulting from an additive or combination of additives , including but not limited to fruit , spice , herb , alcohol , candy , menthol or vanilla observable before or upon intended use of the tobacco product ; ### ' characterising flavour ' means a distinguishable aroma or taste other than tobacco , resulting from an additive or combination of additives , with the exception of menthol , including but not limited to fruit , spice , herb , alcohol , candy , or vanilla observable before or upon intended use of the tobacco product ;


### ' ingredient ' means an additive , tobacco , as well as any substance present in a finished tobacco product including paper , filter , inks , capsules and adhesives ; ### ‘ ingredient’ means any additive present in a finished tobacco product including paper , filter , inks , capsules and adhesives ;


### the yield of cigarettes placed on the market or manufactured in the member states shall not be greater than : ### the yield of cigarettes placed on the market in the member states shall not be greater than :


### the measurement referred to in paragraph 1 shall be carried out or verified by testing laboratories which are approved and monitored by the competent authorities of the member states . ### the measurement referred to in paragraph 1 shall be carried out or verified by independent testing laboratories which are approved and monitored by the competent authorities of the member states .


### the tar , nicotine and carbon monoxide yields of cigarettes shall be measured on the basis of iso standards 4387 for tar , 10315 for nicotine , and 8454 for carbon monoxide . the accuracy of the tar and nicotine indications shall be verified in accordance with iso standard 8243 . ### the tar , nicotine and carbon monoxide yields of cigarettes shall be measured on the basis of iso standards 4387 for tar , 10315 for nicotine , and 8454 for carbon monoxide . the accuracy of the tar , nicotine and carbon monoxide indications shall be verified in accordance with iso standard 8243 .


### fees charged by member states for receiving , storing , handling , analysing and publishing the information submitted to them under this article , if any , shall not exceed the cost attributable to those activities . ### proportionate fees may be charged by member states for receiving , storing , handling , analysing and publishing the information submitted to them under this article .


### combined health warnings for tobacco for smoking ### combined health warnings for tobacco for smoking and prevention campaigns


### tobacco for smoking other than cigarettes and roll - your - own tobacco shall be exempted from the obligations to carry the information message laid down in article&#160 ; 8 and the combined health warnings in article 9 . in addition to the general warning specified in article 8 , each unit packet and any outside packaging of these products shall carry a text warning listed in annex i . the general warning specified in article 8 shall include a reference to the cessation services in accordance with article 9 . the general warning shall be printed on the most visible surface of the unit packet and any outside packaging . the text warnings listed in annex i shall be rotated in such a way as to guarantee their regular appearance . these warnings shall be printed on the other most visible surface of the unit packet and any outside packaging . 2 . the general warning referred to in paragraph 1 shall cover 30 % of the external area of the corresponding surface of the unit packet and any outside packaging . that proportion shall be increased to 32 % for member states with two official languages and 35 % for member states with three official languages . 3 . the text warning referred to in paragraph 1 shall cover 40 % of the external area of the corresponding surface of the unit packet and any outside packaging . that proportion shall be increased to 45 % for member states with two official languages and 50 % for member states with three official languages . 4 . the general warning and the text warning referred to in paragraph 1 shall be : printed in black helvetica bold type on a white background . in order to accommodate language requirements , member states may determine the point size of the font , provided that the font size specified in their legislation is such as to occupy the greatest possible proportion of the area set aside for the text required ; centred in the area in which they are required to be printed , parallel to the top edge of the unit packet and any outside packaging ; surrounded by a black border not less than 3 mm and not more than 4 mm in width inside the surface reserved for the text of the warning . 5 . the commission shall be empowered to adopt delegated acts in accordance with article 22 , to withdraw the exemption laid down in paragraph 1 if there is a substantial change of circumstances as established in a commission report . ### tobacco for smoking other than cigarettes and roll - your - own tobacco shall be exempted from the obligations to carry the information message laid down in article&#160 ; 8 and the combined health warnings in article 9 . in addition to the general warning specified in article 8 , each unit packet and any outside packaging of these products shall carry a text warning listed in annex i . the general warning specified in article 8 shall include a reference to the cessation services in accordance with article 9 . the general warning shall be printed or irremovably affixed on the most visible surface of the unit packet and any outside packaging . the text warnings listed in annex i shall be rotated in such a way as to guarantee their regular appearance . these warnings shall be printed or irremovably affixed on the other most visible surface of the unit packet and any outside packaging . 2 . the general warning referred to in paragraph 1 shall cover 30 % of the external area of the corresponding surface of the unit packet and any outside packaging . that proportion shall be increased to 32 % for member states with two official languages and 35 % for member states with three official languages . 3 . the text warning referred to in paragraph 1 shall cover 40 % of the external area of the corresponding surface of the unit packet and any outside packaging . that proportion shall be increased to 45 % for member states with two official languages and 50 % for member states with three official languages . 4 . the general warning and the text warning referred to in paragraph 1 shall be : printed in black bold type on a white background . the warnings may be affixed by means of stickers , provided that such stickers cannot be removed . in order to accommodate language requirements , member states may determine the point size of the font , provided that the font size specified in their legislation is such as to occupy the greatest possible proportion of the area set aside for the text required ; centred in the area in which they are required to be printed or irremovably affixed , parallel to the top edge of the unit packet and any outside packaging ; surrounded by a black border not less than 3 mm and not more than 4 mm in width inside the surface reserved for the text of the warning . deleted


### be printed on the two largest surfaces of the unit packet and any outside packaging ; ### be printed or affixed on the most visible surface of the unit packet and additionally on any outside packaging used in connection with the product , with the exception of additional fully transparent wrappers .


### member states shall ensure that all economic operators involved in the trade of tobacco products from the manufacturer to the last economic operator before the first retail outlet , record the entry of all unit packets into their possession , as well as all intermediate movements and the final exit from their possession . this obligation can be fulfilled by recording in aggregated form , e . g . of outside packaging , provided that tracking and tracing of unit packets remains possible . ### member states shall ensure that all economic operators involved in the trade of tobacco products from the manufacturer to the last economic operator before the first retail outlet , record the entry of all unit and outside packets into their possession , as well as all intermediate movements and the final exit from their possession , and transmit the data electronically to a data storage facility pursuant to paragraph 6 . this obligation can be fulfilled by recording in aggregated form , e . g . of outside packaging , as outlined in paragraph 2a .


### no later than five years from the date specified in article 25 paragraph 1 , the commission shall submit to the european parliament , the council , the european economic and social committee and the committee of the regions a report on the application of this directive . ### no later than three years from the date specified in article 25 paragraph 1 , the commission shall submit to the european parliament , the council , the european economic and social committee and the committee of the regions a report on the application of this directive .


### member states shall not prohibit or restrict the import , sale or consumption of tobacco or related products which comply with this directive . ### member states shall not prohibit or restrict the import , sale or consumption of tobacco or related products which comply with this directive . at the same time , measures must be taken to restrict the import of tobacco products , including from third countries , which do not comply with this directive .


### your smoke harms your children , family and friends ### your smoke shortens the life of your children , family and friends ; do not expose them to it


### regulation of the european parliament and of the council establishing a european banking authority ### regulation of the european parliament and of the council establishing a european supervisory authority on banking


### the financial crisis in 2007 / 2008 exposed important shortcomings in financial supervision , both in particular cases and in relation to the financial system as a whole . nationally - based supervisory models have lagged behind the integrated and interconnected reality of european financial markets , in which many financial firms operate across borders . the crisis exposed shortcomings in the area of cooperation , coordination , consistent application of community law and trust between national supervisors . ### the financial crisis in 2007 / 2008 exposed important shortcomings in financial supervision , both in particular cases and in relation to the financial system as a whole . nationally - based supervisory models have lagged behind the financial globalisation and the integrated and interconnected reality of european financial markets , in which many financial firms operate across borders . the crisis exposed shortcomings in the area of cooperation , coordination , consistent application of eu law and trust between national supervisors .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european banking authority should be established , along with a european insurance and occupational pensions authority and a european securities and markets authority . ### the european system of financial supervision should be an integrated network of national and european supervisory authorities , leaving ordinary day - to - day supervision of financial institutions at the competent authorities of member states , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and consistent and coherent application of european rules and standards for financial institutions and markets across the european should also be achieved . a european supervisory authority on banking should be established , along with a european supervisory authority on insurance and occupational pensions and a european supervisory authority on securities and markets as well as a joint committee among them . the european systemic risk board , as european authority in macro supervision , completes the esfs . the esfs is a progressive supervisory system that should evolve according to best practices recognised at european and international level . one line to follow may be the establishment of a new level of direct supervision by the authority ; to avoid international distortions and to strengthen the european system of financial supervision , its introduction should be previously and carefully evaluated and considered in order to add value to the supervision of large financial institutions , mainly those whose parent company is based in a third country , above all when they develop wholesale banking or other sensitive activities on the internal market , and those systemic financial institutions once they have been defined and identified at international level . this issue shall be further studied in the first revision of this regulation , which should take place not later than three years from its entry into force .


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of depositors , investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in level 2 lamfalussy regulations and in level 3 lamfalussy supervisory measures , with the elaboration of draft technical standards , which do not involve policy choices and must respect the principle of proportionality . the draft technical standards to be adopted by the commission as regulatory standards could be subject to amendment by the commission . in the case of supervisory standards , the commission shall endorse those draft technical standards when they are in accordance with european law in order to give them binding legal effect . the commission is empowered to adopt regulatory standards in financial services as delegated acts in accordance with the article 290 of the treaty on the functioning of the european union . the supervisory standards should be endorsed as implementing acts in accordance with a procedure following the article 291 of the treaty on the functioning of the european union . to ensure a smooth and expedited adoption process for those standards , the commission could be subject to a time limit for both its resolution on adoption or decision on the endorsement .


### in areas not covered by technical standards , the authority should have the power to issue non - binding guidelines and recommendations on the application of community legislation . in order to ensure transparency and strengthen compliance by national supervisory authorities with those guidelines and recommendations , national authorities should be obliged to state their reasons where they do not comply with those guidelines and recommendations . ### in areas not covered by regulatory or supervisory standards , the authority should have the power to issue non - binding guidelines and recommendations on the application of eu legislation to promote best practices . in order to ensure full transparency and strengthen compliance by national supervisory authorities and financial institutions with those guidelines and recommendations , national authorities should be obliged to state their reasons where they do not comply with those guidelines and recommendations and the financial institutions should be obligated to report if they comply with these guidelines and recommendations when reporting .


### ensuring the correct and full application of community law is a core prerequisite for the integrity , efficiency and orderly functioning of financial markets , the stability of the financial system , and for neutral conditions of competition for financial institutions in the community . a mechanism should therefore be established whereby the authority addresses instances of incorrect or insufficient application of community law . this mechanism should apply in areas where community legislation defines clear and unconditional obligations ### ensuring the correct and full application of european law is a core prerequisite for the integrity , transparency , efficiency and orderly functioning of financial markets , the stability of the financial system , and for neutral conditions of competition for financial institutions in the community . a mechanism should therefore be established whereby the authority addresses instances of incorrect or insufficient application of community law . this mechanism should apply in areas where community legislation defines clear and unconditional obligations .


### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the competent authorities in different member states , the authority should be able to settle disagreements between those competent authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the competent authorities may reach an agreement . the authority ' s competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of community law in supervisory decisions . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial institutions in areas of community law directly applicable to them . ### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the competent authorities in different member states , the authority should be able to settle disagreements between those competent authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the competent authorities may reach an agreement . the authority ' s competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of community law in supervisory decisions ; compliance with binding decisions adopted does not prevent the exercise of additional prudential discretion by the competent authority in conformity with international principles on cross - border supervision . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial institutions in areas of community law directly applicable to them .


### the authority shall act within the scope of directive 2006 / 48 / ec , directive 2006 / 49 / ec , directive&#160 ; 2002 / 87 / ec , directive 2005 / 60 / ec , directive 2002 / 65 / ec and directive 94 / 19 / ec , including all directives , regulations , and decisions based on these acts , and of any further community act which confers tasks on the authority . ### the authority shall act within the scope of this regulation and of directive 2006 / 48 / ec , directive 2006 / 49 / ec , directive 2002 / 87 / ec , directive 2005 / 60 / ec , directive 2002 / 65 / ec and directive 94 / 19 / ec , including all directives , regulations , and decisions based on these acts , and of any further eu act which confers tasks on the authority


### contribute to a consistent application of community legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between competent authorities , promoting a coherent functioning of colleges of supervisors and taking actions in emergency situations ; ### contribute to a consistent application of standards and legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of this regulation and the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between competent authorities , ensuring a coherent functioning of colleges of supervisors and taking action , inter alia in emergency situations ;


### the authority may develop technical standards in the areas specifically set out in the legislation referred to in article 1 . the authority shall submit its draft standards to the commission for endorsement . ### the authority shall develop technical standards in the areas specifically set out in this regulation and in the legislation referred to in article 1 or at request of the commission . technical standards shall not include policy choices and shall reflect the principle of proportionality . the authority shall submit its draft technical standards to the commission for adoption as delegated dcts or endorsement as implementing acts in accordance with this regulation and with the legislation referred to in article 1 . the draft standards shall also be transmitted at the same time to the european parliament and the council .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### before submitting them to the commission , the authority shall conduct open public consultations with all stakeholders and analyse the potential related costs and benefits , unless such consultations and analyses are disproportionate to the scope and impact of the technical standards concerned or to the particular urgency of the matter . the authority shall also request an opinion or advice of the banking stakeholder group referred to in article 22 .


### within three months of receipt of the draft standards , the commission shall decide whether to endorse the draft standards . the commission may extend that period by one month . the commission may endorse the draft standards only in part or with amendments where the community interest so requires . ### within three months of receipt of the draft technical standards , the commission shall endorse the draft supervisory standards if they comply with union legislation . within the same period , the commission may adopt the draft technical standards with amendments where they were drawn up as regulatory standards . in both cases , the commission may extend that period by one month .


### where a competent authority has not correctly applied the legislation referred to in article 1 , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . ### where a competent authority has not applied the legally binding acts and legislation referred to in article 1 or has applied them in a way which appears to be in breach of union law , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article .


### upon request from one or more competent authorities , from the commission or on its own initiative and after having informed the competent authority concerned , the authority may investigate the alleged incorrect application of community law . ### upon request from one or more competent authorities from the european parliament , the council , the commission or the banking stakeholder group or on its own initiative and after having informed the competent authority concerned , the authority may investigate the alleged breach or non - application of union law .


### without prejudice to the powers of the commission under article 226 of the treaty , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the competent authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under union law including the cessation of any practice .


### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the european union , the esrb , upon its own initiative or following a request by the authority , the european parliament or a member state may issue a warning declaring the existence of an emergency situation for the purposes of this regulation .


### where the commission has adopted a decision pursuant to paragraph 1 , the authority may adopt individual decisions requiring competent authorities to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial institutions and competent authorities satisfy the requirements laid down in that legislation . ### where the esrb has issued a warning pursuant to paragraph 1 , or where the commission or the council , upon its own initiative or following a request by the authority , the european parliament or a member state , adopts a decision determining the existence of similar or justified circumstances where co - ordinated action by national authorities is necessary in order to respond to adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the european union ; the authority may , without having to comply with any further requirements , adopt individual decisions in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial institutions and competent authorities satisfy the requirements laid down in that legislation .


### without prejudice to the competences of the community institutions , the authority may develop contacts with supervisory authorities from third countries . it may enter into administrative arrangements with international organisations and the administrations of third countries . ### without prejudice to the competences of the union institutions and member states , the authority may develop contacts and enter into administrative arrangements with supervisory authorities , international organisations and the administrations of third countries .


### public procurement plays a key role in the europe 2020 strategy as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts have to be revised and modernised in order to increase the efficiency of public spending , facilitating in particular the participation of small and medium - sized enterprises in public procurement and to enable procurers to make better use of public procurement in support of common societal goals . there is also a need to clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union . ### public procurement plays a key role in the europe 2020 strategy as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts have to be revised and modernised in order to enable procurers to make better use of public procurement in support of sustainable development and other common societal goals , thereby increasing the efficiency of public spending , ensuring best value for money , and facilitating in particular the participation of small and medium - sized enterprises in public procurement and encouraging local procurement as well as enabling procurers to make better use of public procurement in support of common societal goals . contracting authorities are encouraged to set demands that are stricter or go further than current eu - legislation in specific areas , in order to reach these common objectives . there is also a need to simplify the directives and to clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union . this directive provides legislation on how to buy , what to buy is up to the contracting authorities . contracting authorities are encouraged to set demands that are stricter or go further than current eu legislation in specific areas , in order to reach the common objectives .


### public procurement plays a key role in the europe 2020 strategy12 as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors13 and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts14 have to be revised and modernised in order to increase the efficiency of public spending , facilitating in particular the participation of small and medium - sized enterprises in public procurement and to enable procurers to make better use of public procurement in support of common societal goals . there is also a need to clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union . ### public procurement plays a key role in the europe 2020 strategy as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts have to be revised and modernised in order to enable procurers to make better use of public procurement in support of sustainable development compliance with social and labour rights and other common societal goals and in order thereby to increase the efficiency of public spending , guaranteeing the best possible result in terms of cost - effectiveness and facilitating in particular the participation of small and medium - sized enterprises in public procurement and to enable procurers to make better use of public procurement in support of common societal goals . there is also a need to simplify union rules on public procurement , in particular as regards the method used to achieve the sustainability objectives which should be part and parcel of public procurement policy and clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union .


### electronic means of information and communication can greatly simplify the publication of contracts and increase the efficiency and transparency of procurement processes . they should become the standard means of communication and information exchange in procurement procedures . the use of electronic means also leads to time savings . as a result , provision should be made for reducing the minimum periods where electronic means are used , subject , however , to the condition that they are compatible with the specific mode of transmission envisaged at union level . moreover , electronic means of information and communication including adequate functionalities can enable contracting authorities to prevent , detect and correct errors that occur during procurement procedures . ### electronic means of information and communication can greatly simplify the publication of contracts , reduce administrative burdens such as transaction costs particularly for smes , and increase the efficiency and transparency of procurement processes . they should become the standard means of communication and information exchange in procurement procedures . the use of electronic means also leads to time savings . as a result , provision should be made for reducing the minimum periods where electronic means are used , subject , however , to the condition that they are compatible with the specific mode of transmission envisaged at union level . moreover , electronic means of information and communication including adequate functionalities can enable contracting authorities to prevent , detect and correct errors that occur during procurement procedures .


### electronic means of information and communication can greatly simplify the publication of contracts and increase the efficiency and transparency of procurement processes . they should become the standard means of communication and information exchange in procurement procedures . the use of electronic means also leads to time savings . as a result , provision should be made for reducing the minimum periods where electronic means are used , subject , however , to the condition that they are compatible with the specific mode of transmission envisaged at union level . moreover , electronic means of information and communication including adequate functionalities can enable contracting authorities to prevent , detect and correct errors that occur during procurement procedures . ### electronic means of information and communication can greatly simplify the publication of contracts and increase the efficiency and transparency of procurement processes . they should become the standard means of communication and information exchange in procurement procedures . the use of electronic means also leads to time savings . however , the minimum periods applicable to procurement procedures under directive 2004 / 18 / ec should remain unchanged , in order to guarantee suitable submission deadlines . moreover , electronic means of information and communication including adequate functionalities can enable contracting authorities to prevent , detect and correct errors that occur during procurement procedures .


### electronic means of communication are particularly well suited to support centralised purchasing practices and tools because of the possibility they offer to re - use and automatically process data and to minimise information and transaction costs . the use of such electronic means of communication should therefore , as a first step , be rendered compulsory for central purchasing bodies , while also facilitating converging practices across the union . this should be followed by a general obligation to use electronic means of communication in all procurement procedures after a transition period of two years . ### electronic means of communication are particularly well suited to support centralised purchasing practices and tools because of the possibility they offer to re - use and automatically process data and to minimise information and transaction costs . the use of such electronic means of communication should therefore , as a first step , be rendered compulsory for central purchasing bodies , while also facilitating converging practices across the union . this should be followed by a general obligation to use electronic means of communication in all procurement procedures after a transition period of two years . so as to ensure continued legal certainty , this shall not affect existing arrangements at national level for publishing information on public procurement contracts for amounts below the thresholds set in this directive .


### the technical specifications drawn up by public purchasers need to allow public procurement to be opened up to competition . to that end , it must be possible to submit tenders that reflect the diversity of technical solutions so as to obtain a sufficient level of competition . consequently , technical specifications should be drafted in such a way to avoid artificially narrowing down competition through requirements that favour a specific economic operator by mirroring key characteristics of the supplies , services or works habitually offered by that economic operator . drawing up the technical specifications in terms of functional and performance requirements generally allows this objective to be achieved in the best way possible and favours innovation . where reference is made to a european standard or , in the absence thereof , to a national standard , tenders based on equivalent arrangements must be considered by contracting authorities . to demonstrate equivalence , tenderers can be required to provide third - party verified evidence ; however , other appropriate means of proof such as a technical dossier of the manufacturer should also be allowed where the economic operator concerned has no access to such certificates or test reports , or no possibility of obtaining them within the relevant time limits . ### the technical specifications drawn up by public purchasers should be such that the objectives of sustainability and of opening public procurement up to competition can be achieved . to that end , tenders that reflect the diversity of technical solutions should be drawn up on the basis of performance criteria linked to the life cycle characteristics and the socially sustainable production process of the works , supplies and services , so as to guarantee equality in terms of the functional and sustainability objectives and obtain a sufficient level of competition . the technical specifications should therefore be drawn up and applied in a manner consistent with the principles of transparency , non - discrimination and equal opportunities . the application of these principles should not only protect the interests of tenderers , but also make for genuine competition , ensuring that public spending is as effective as possible by obtaining the best possible value for money . drawing up the technical specifications in terms of functional and performance requirements generally allows this objective to be achieved in the best way possible and favours innovation . where reference is made to a european standard or , in the absence thereof , to a national standard , tenders based on equivalent arrangements must be considered by contracting authorities . to demonstrate equivalence , tenderers can be required to provide third - party verified evidence ; however , other appropriate means of proof such as a technical dossier of the manufacturer should also be allowed where the economic operator concerned has no access to such certificates or test reports , or no possibility of obtaining them within the relevant time limits .


### contracting authorities that wish to purchase works , supplies or services with specific environmental , social or other characteristics should be able to refer to particular labels , such as the european eco - label , national eco - labels or any other label provided that the requirements for the label are linked to the subject - matter of the contract , such as the description of the product and its presentation , including packaging requirements . it is furthermore essential that these requirements are drawn up and adopted on the basis of objectively verifiable criteria , using a procedure in which stakeholders , such as government bodies , consumers , manufacturers , distributors and environmental organisations , can participate , and that the label is accessible and available to all interested parties . ### contracting authorities that wish to purchase works , supplies or services with specific environmental , energy efficiency , social , animal welfare or other characteristics should be able to refer to particular labels , such as the european eco - label , national eco - labels or any other label provided that the requirements for the label are linked to the subject - matter of the contract , such as the description of the product and its presentation , including packaging requirements . it is furthermore essential that these requirements are drawn up and adopted on the basis of objectively verifiable criteria , using a procedure in which stakeholders , such as government bodies , consumers , manufacturers , distributors and environmental organisations , can participate , and that the label is accessible and available to all interested parties .


### many economic operators , and not least smes , find that a major obstacle to their participation in public procurement consists in administrative burdens deriving from the need to produce a substantial number of certificates or other documents related to exclusion and selection criteria . limiting such requirements , for example through self - declarations , can result in considerable simplification for the benefit of both contracting authorities and economic operators . the tenderer to which it has been decided to award the contract should , however , be required to provide the relevant evidence and contracting authorities should not conclude contracts with tenderers unable to do so . further simplification can be achieved through standardised documents such as the european procurement passport , which should be recognized by all contracting authorities and widely promoted among economic operators , in particular smes , for whom they can substantially lessen the administrative burden . ### many economic operators , and not least smes , find that a major obstacle to their participation in public procurement consists in administrative burdens deriving from the need to produce a substantial number of certificates or other documents related to exclusion and selection criteria . limiting such requirements , for example through self - declarations , including declarations concerning compliance with rules and standards in the areas of health and public safety , social protection and labour standards , can result in considerable simplification for the benefit of both contracting authorities and economic operators . the tenderer to which it has been decided to award the contract should , however , be required to provide the relevant evidence concerning the supply chain and contracting authorities should not conclude contracts with tenderers unable to do so . further simplification can be achieved through standardised documents such as the european procurement passport , which should be recognized by all contracting authorities and widely promoted among economic operators , in particular smes , for whom they can substantially lessen the administrative burden .


### public contracts should not be awarded to economic operators that have participated in a criminal organisation or have been found guilty of corruption , fraud to the detriment of the union’s financial interests or money laundering . non - payment of taxes or social security contributions should also be sanctioned by mandatory exclusion at the level of the union . furthermore , contracting authorities should be given the possibility to exclude candidates or tenderers for violations of environmental or social obligations , including rules on accessibility for disabled persons or other forms of grave professional misconduct , such as violations of competition rules or of intellectual property rights . ### public contracts should not be awarded to economic operators that have participated in a criminal organisation or have been found guilty of corruption , fraud to the detriment of the union’s financial interests or money laundering . non - payment of taxes or social security contributions , violations of environmental , labour or social obligations , including in accordance with internationally recognised principles and including rules on working conditions , collective agreements and accessibility for disabled persons should also be sanctioned by mandatory exclusion at the level of the union . furthermore , contracting authorities should be given the possibility to exclude candidates or tenderers for forms of grave professional misconduct , such as violations of competition rules or of intellectual property rights .


### contracts should be awarded on the basis of objective criteria that ensure compliance with the principles of transparency , non - discrimination and equal treatment . these criteria should guarantee that tenders are assessed in conditions of effective competition , also where contracting authorities require high - quality works , supplies and services that are optimally suited to their needs , for instance where the chosen award criteria include factors linked to the production process . as a result , contracting authorities should be allowed to adopt as award criteria either ‘ the most economically advantageous tender’ or ‘ the lowest cost’ , taking into account that in the latter case they are free to set adequate quality standards by using technical specifications or contract performance conditions . ### contracts should be awarded on the basis of objective criteria that ensure compliance with the principles of transparency , non - discrimination , equal treatment , cost - quality - effectiveness and the conscientious application of social standards . these criteria should guarantee that tenders are assessed in conditions of effective competition , also where contracting authorities require high - quality works , supplies and services that are optimally suited to their needs , for instance where the chosen award criteria include factors linked to the production process . accordingly , contracting authorities should adopt as award criteria ' the most economically advantageous tender ' in order to assess the contracting authority ' s sustainability concerns , added to that of basic respect for national , european and international social standards , contracting authorities are also free to set adequate sustainability and quality standards by using technical specifications or contract performance conditions .


### where contracting authorities choose to award a contract to the most economically advantageous tender , they must determine the award criteria on the basis of which they will assess tenders in order to identify which one offers the best value for money . the determination of these criteria depends on the subject - matter of the contract since they must allow the level of performance offered by each tender to be assessed in the light of the subject - matter of the contract , as defined in the technical specifications , and the value for money of each tender to be measured . furthermore , the chosen award criteria should not confer an unrestricted freedom of choice on the contracting authority and they should ensure the possibility of effective competition and be accompanied by requirements that allow the information provided by the tenderers to be effectively verified . ### where contracting authorities choose to award a contract to the most economically advantageous tender , they must determine the award criteria on the basis of which they will assess tenders in order to identify which one offers the best value for money , economic and social sustainability . the determination of these criteria depends on the subject - matter of the contract since they must allow the level of performance offered by each tender to be assessed in the light of the subject - matter of the contract , as defined in the technical specifications , and the value for money of each tender to be measured . furthermore , the chosen award criteria should not confer an unrestricted freedom of choice on the contracting authority and they should ensure the possibility of effective competition and be accompanied by requirements that allow the information provided by the tenderers to be effectively verified .


### where contracting authorities choose to award a contract to the most economically advantageous tender , they must determine the award criteria on the basis of which they will assess tenders in order to identify which one offers the best value for money . the determination of these criteria depends on the subject - matter of the contract since they must allow the level of performance offered by each tender to be assessed in the light of the subject - matter of the contract , as defined in the technical specifications , and the value for money of each tender to be measured . furthermore , the chosen award criteria should not confer an unrestricted freedom of choice on the contracting authority and they should ensure the possibility of effective competition and be accompanied by requirements that allow the information provided by the tenderers to be effectively verified . ### contracting authorities must determine award criteria on the basis of which they will assess tenders in order to identify which one offers the best value for money . to identify the tender representing best value , contracting authorities should use objective criteria that are linked to the subject matter of the contract . the chosen award criteria should not confer an unrestricted freedom of choice on the contracting authority , however . rather , the award procedure should guarantee effective competition through strict compliance with the principles of transparency , non - discrimination and equal treatment . these principles require , among other things , that the information provided by the tenderers be effectively and transparently verified .


### it is of utmost importance to fully exploit the potential of public procurement to achieve the objectives of the europe 2020 strategy for sustainable growth . in view of the important differences between individual sectors and markets , it would however not be appropriate to set general mandatory requirements for environmental , social and innovation procurement . the union legislature has already set mandatory procurement requirements for obtaining specific goals in the sectors of road transport vehicles and office equipment no 106 / 2008 of the european parliament and the council of 15 january 2008 on a community energy - efficiency labelling programme for office equipment ) . in addition , the definition of common methodologies for life cycle costing has significantly advanced . it therefore appears appropriate to continue on that path , leaving it to sector - specific legislation to set mandatory objectives and targets in function of the particular policies and conditions prevailing in the relevant sector and to promote the development and use of european approaches to life - cycle costing as a further underpinning for the use of public procurement in support of sustainable growth . ### it is of utmost importance to fully exploit the potential of public procurement to achieve the objectives of the europe 2020 strategy for sustainable growth . in view of the important differences between individual sectors and markets , it would however not be appropriate to set general mandatory requirements for environmental , social and innovation procurement . the union legislature has already set mandatory procurement requirements for obtaining specific goals in the sectors of road transport vehicles and office equipment no 106 / 2008 of the european parliament and the council of 15 january 2008 on a community energy - efficiency labelling programme for office equipment ) . in addition , the definition of common methodologies for life cycle costing continues to advance significantly , and sector - specific applications of life - cycle costing continue to be developed , tested , and refined . it therefore appears appropriate to continue to use sector - specific legislation to set mandatory objectives and targets in the context of the particular policies and conditions prevailing in the relevant sector to further the use of public procurement in support of sustainable growth . these efforts should incorporate sector - appropriate applications of sound methodologies for life cycle costing . in accordance with other provisions of this directive , mandatory procurement criteria adopted through sector - specific legislation may also include technical specifications and award criteria that incorporate sustainability considerations relating to generalised social and environmental benefits or harms , even where these have not been or cannot be monetised , provided that they are linked with the subject matter of the contract and strictly adhere to the principles of transparency , non - discrimination , and equal protection .


### these sector - specific measures must be complemented by an adaptation of the public procurement directives empowering contracting authorities to pursue the objectives of the europe 2020 strategy in their purchasing strategies . it should hence be made clear that contracting authorities can determine the most economically advantageous tender and the lowest cost using a life - cycle costing approach , provided that the methodology to be used is established in an objective and non - discriminatory manner and accessible to all interested parties . the notion of life - cycle costing includes all costs over the life cycle of works , supplies or services , both their internal costs and their external costs , provided they can be monetised and monitored . common methodologies should be developed at the level of the union for the calculation of life - cycle costs for specific categories of supplies or services ; whenever such a methodology is developed its use should be made compulsory . ### these sector - specific measures should be complemented by an adaptation of the public procurement directives empowering contracting authorities to pursue the objectives of the europe 2020 strategy in their purchasing strategies . it should hence be made clear that contracting authorities should determine the most economically advantageous tender using an approach based on life - cycle costing and costing of the sustainable production process , in accordance with articles 9 , 10 and 11 of the treaty on the functioning of the european union , which refer to the social and environmental requirements to be taken into account in the definition and implementation of union policies . the notion of life - cycle costing includes all costs over the life cycle of works , supplies or services , both their internal costs and their external costs , provided they can be monetised and monitored . common methodologies should be developed at the level of the union for the calculation of life - cycle costs for specific categories of supplies or services ; whenever such a methodology is developed its use should be made compulsory .


### tenders that appear abnormally low in relation to the works , supplies or services might be based on technically , economically or legally unsound assumptions or practices . in order to prevent possible disadvantages during contract performance , contracting authorities should be obliged to ask for an explanation of the price charged where a tender significantly undercuts the prices demanded by other tenderers . where the tenderer cannot provide a sufficient explanation , the contracting authority should be entitled to reject the tender . rejection should be mandatory in cases where the contracting authority has established that the abnormally low price charged results from non - compliance with mandatory union legislation in the fields of social , labour or environmental law or international labour law provisions . ### tenders that appear abnormally low in relation to the works , supplies or services might be based on technically , economically or legally unsound assumptions or practices . in order to prevent possible disadvantages during contract performance , contracting authorities should be obliged to ask for an explanation of the price charged where a tender significantly undercuts the prices demanded by other tenderers . where the tenderer cannot provide a sufficient explanation , the contracting authority should reject the tender . rejection should be mandatory in cases where the contracting authority has established that the abnormally low price charged results from non - compliance with union legislation in the field of environmental law or with obligations relating to social and employment conditions , health and safety in the workplace , social security and working conditions as set out by eu and national laws , regulations or administrative provisions , arbitration awards , collective agreements and contracts , and international labour law provisions listed in annex xi , that apply in the place where the work , service or supply is performed ; these obligations shall also apply in cross - border situations , where workers from one member state provide services in another member state .


### tenders that appear abnormally low in relation to the works , supplies or services might be based on technically , economically or legally unsound assumptions or practices . in order to prevent possible disadvantages during contract performance , contracting authorities should be obliged to ask for an explanation of the price charged where a tender significantly undercuts the prices demanded by other tenderers . where the tenderer cannot provide a sufficient explanation , the contracting authority should be entitled to reject the tender . rejection should be mandatory in cases where the contracting authority has established that the abnormally low price charged results from non - compliance with mandatory union legislation in the fields of social , labour or environmental law or international labour law provisions . ### tenders that appear abnormally low in relation to the works , supplies or services might be based on technically , economically or legally unsound assumptions or practices . in order to prevent possible disadvantages during contract performance , contracting authorities should be obliged to ask for an explanation of the price charged where a tender significantly undercuts the prices demanded by other tenderers . rejection of the tender should be mandatory in cases where the contracting authority has established that the abnormally low price charged results from non - compliance with mandatory union legislation in the fields of social , labour or environmental law or international labour law provisions . alternatively , if the tenderer cannot provide a satisfactory explanation for the abnormally low price the contracting authority should reject the tender .


### tenders that appear abnormally low in relation to the works , supplies or services might be based on technically , economically or legally unsound assumptions or practices . in order to prevent possible disadvantages during contract performance , contracting authorities should be obliged to ask for an explanation of the price charged where a tender significantly undercuts the prices demanded by other tenderers . where the tenderer cannot provide a sufficient explanation , the contracting authority should be entitled to reject the tender . rejection should be mandatory in cases where the contracting authority has established that the abnormally low price charged results from non - compliance with mandatory union legislation in the fields of social , labour or environmental law or international labour law provisions . ### tenders that appear abnormally low in relation to the works , supplies or services might be based on technically , economically or legally unsound assumptions or practices . in order to prevent possible disadvantages during contract performance , contracting authorities should be able to exclude tenders that are far lower than the prices charged by other tenderers and should be obliged to ask for an explanation of the price charged where a tender significantly undercuts the prices demanded by other tenderers . where the tenderer cannot provide a sufficient explanation , the contracting authority should be entitled to reject the tender . rejection should be mandatory in cases where the contracting authority has established that the abnormally low price charged results from non - compliance with mandatory union legislation in the fields of social , labour or environmental law or international labour law provisions .


### the laws , regulations and collective agreements , at both national and union level , that are in force in the areas of employment conditions and safety at work apply during the performance of a public contract , provided that such rules , and their application , comply with union law . in cross - border situations , where workers from one member state provide services in another member state for the purpose of performing a public contract , directive 96 / 71 / ec of the european parliament and of the council of 16 december 1996 concerning the posting of workers in the framework of the provision of services23 lays down the minimum conditions that must be observed by the host country in respect of such posted workers . where national law contains provisions to this effect , non - compliance with those obligations may be considered to be grave misconduct on the part of the economic operator concerned , liable to lead to the exclusion of that economic operator from the procedure for the award of a public contract . ### the laws , regulations and collective agreements , at both national and union level , that are in force in the areas of employment conditions , the integration of disabled persons into the workforce and safety at work apply during the performance of a public contract , provided that such rules , and their application , comply with union law . in cross - border situations , where workers from one member state provide services in another member state for the purpose of performing a public contract , directive 96 / 71 / ec of the european parliament and of the council of 16 december 1996 concerning the posting of workers in the framework of the provision of services23 lays down the minimum conditions that must be observed by the host country in respect of such posted workers . where national law contains provisions to this effect , non - compliance with those obligations may be considered to be grave misconduct on the part of the economic operator concerned , liable to lead to the exclusion of that economic operator from the procedure for the award of a public contract .


### the laws , regulations and collective agreements , at both national and union level , that are in force in the areas of employment conditions and safety at work apply during the performance of a public contract , provided that such rules , and their application , comply with union law . in cross - border situations , where workers from one member state provide services in another member state for the purpose of performing a public contract , directive 96 / 71 / ec of the european parliament and of the council of 16 december 1996 concerning the posting of workers in the framework of the provision of services23 lays down the minimum conditions that must be observed by the host country in respect of such posted workers . where national law contains provisions to this effect , non - compliance with those obligations may be considered to be grave misconduct on the part of the economic operator concerned , liable to lead to the exclusion of that economic operator from the procedure for the award of a public contract . ### the laws and regulations , at both national and union level , that are in force in the areas of employment conditions and safety at work apply during the performance of a public contract and the collective agreements which apply on the territory where the works , services or supplies are to be performed or provided . non - compliance with those obligations may be considered to be grave misconduct on the part of the economic operator concerned , liable to lead to the exclusion of that economic operator from the procedure for the award of a public contract .


### the acquisition , development , production or co - production of programme material intended for audiovisual media services , that are awarded by broadcasters , or contracts for broadcasting time that are awarded to audiovisual media service providers ; ### the acquisition , development , production or co - production of programme material and related preparatory services intended for media services , or contracts for broadcasting or distribution and transmission ;


### financial services in connection with the issue , sale , purchase or transfer of securities or other financial instruments within the meaning of directive 2004 / 39 / ec of the european parliament and of the council central bank services and operations conducted with the european financial stability facility ; ### financial services in connection with the issue , sale , purchase or transfer of securities or other financial instruments within the meaning of directive 2004 / 39 / ec of the european parliament and of the council central bank services and operations conducted with the european financial stability facility , in particular transactions by contracting authorities to raise money or capital and services provided by central banks ;


### relations between public authorities ### cooperation between contracting authorities


### at least 90 % of the activities of that legal person are carried out for the controlling contracting authority or for other legal persons controlled by that contracting authority ; ### at least 85 % of the activities of that legal person are carried out for the controlling contracting authority or for other legal persons controlled by that contracting authority ;


### at least 90 % of the activities of that legal person are carried out for the controlling contracting authority or for other legal persons controlled by that contracting authority ; ### at least 80 % of the activities of the legal person which are activities governed by the contract are carried out for the controlling contracting authority or for other legal persons controlled by that contracting authority ;


### at least 90 % of the activities of that legal person are carried out for the controlling contracting authority or for other legal persons controlled by that contracting authority ; ### at least 90 % of the activities of that legal person are carried out on behalf of the controlling contracting authority or for other legal persons controlled by that contracting authority ;


### at least 90 % of the activities of that legal person are carried out for the controlling contracting authority or for other legal persons controlled by that contracting authority ; ### at least 90 % of the activities of that legal person are carried out for the controlling contracting authority or for other legal persons controlled by that contracting authority . for waste incineration plants this minimum limit shall be set at 50% .


### at least 90 % of the activities of that legal person are carried out for the controlling contracting authorities or other legal persons controlled by the same contracting authorities ; ### at least 85 % of the activities of that legal person are carried out for the controlling contracting authorities or other legal persons controlled by the same contracting authorities ;


### at least 90 % of the activities of that legal person are carried out for the controlling contracting authorities or other legal persons controlled by the same contracting authorities ; ### at least 80 % of the activities of that legal person which are the subject of the contract are carried out for the controlling contracting authorities or other legal persons controlled by the same contracting authorities ;


### at least 90 % of the activities of that legal person are carried out for the controlling contracting authorities or other legal persons controlled by the same contracting authorities ; ### at least 90 % of the activities of that legal person are carried out on behalf of the controlling contracting authorities or other legal persons controlled by the same contracting authorities ;


### at least 90 % of the activities of that legal person are carried out for the controlling contracting authority or for other legal persons controlled by that contracting authority ; ### the bulk of the activities of that legal person are carried out for the controlling contracting authority or for other legal persons controlled by that contracting authority ;


### there is no private participation in the controlled legal person . ### there is no private participation in the controlled legal person , with the exception of forms of private participation specific to the controlling contracting authority or to the controlled legal person in their capacity as public - law bodies , and provided that the forms of participation involved are consistent with the concept of the social business .


### an agreement concluded between two or more contracting authorities shall not be deemed to be a public contract within the meaning of article 2 of this directive where the following cumulative conditions are fulfilled : the agreement establishes a genuine cooperation between the participating contracting authorities aimed at carrying out jointly their public service tasks and involving mutual rights and obligations of the parties ; b ) the agreement is governed only by considerations relating to the public interest ; c ) the participating contracting authorities do not perform on the open market more than 10 % in terms of turnover of the activities which are relevant in the context of the agreement ; d ) the agreement does not involve financial transfers between the participating contracting authorities , other than those corresponding to the reimbursement of actual costs of the works , services or supplies ; e ) there is no private participation in any of the contracting authorities involved . ### an agreement concluded between two or more contracting authorities shall not be deemed to be a public contract within the meaning of article 2 of this directive where the following cumulative conditions are fulfilled : the agreement establishes cooperation between the participating contracting authorities for the purpose of the performance of a shared public service task or the pooling of resources in order to enable them to perform their own tasks ; b ) the agreement does not provide for or have any bearing on the award of the contracts which may have to be concluded so that the public service task referred to in point a ) can be performed ; c ) the agreement is concluded only between public authorities , with no participation by a private party with the exception of forms of private participation specific to the participating contracting authorities acting in their capacity as public - law bodies which have been mandated by a member state to perform a public service task , in accordance with the concept of a social enterprise .


### principles of procurement contracting authorities shall treat economic operators equally and without discrimination and shall act in a transparent and proportionate way . the design of the procurement shall not be made with the objective of excluding it from the scope of this directive or of artificialy narrowing competition . ### purpose and principles of procurement - 1 . the purpose of this directive is to safeguard the efficient use of public funds , to promote high - quality procurement , to strengthen competition and the functioning of the public procurement markets and to safeguard equal opportunities for companies and other providers in offering supply , service and public works contracts under competitive bidding for public procurement . public procurement is to be used to achieve a smart , sustainable and inclusive growth and to support common societal goals and to provide goods and services of high quality . it is the right of public authorities to decide how they want to provide commissioning and organise their services . contracting authorities shall treat economic operators equally and without discrimination and shall act in a transparent and proportionate way . the details of public contracts shall be made public . the design of the procurement shall not be made with the objective of excluding it from the scope of this directive or of artificialy narrowing competition . 1a . economic operators shall comply with obligations established by union and / or national legislation and / or collective agreements in the field of social and employment protection provisions and working conditions or environmental law or of the international social and environmental law provisions listed in annex xi , which are in force in the member state , in the region or locality where the works are to be carried out or the services are to be provided . this directive does not prevent member states from complying with ilo convention 94 on labour clauses in public contracts . contracting authorities shall verify that the contractors are of good reputation not having gravely broken against national or international environmental , social , labour or other relevant laws . 1b . contracting authorities shall aim for best value in procurement policy . this is achieved through the awarding of the public contract to the most economically advantageous and sustainable tender .


### member states shall provide for rules to effectively prevent , identify and immediately remedy conflicts of interests arising in the conduct of procurement procedures that are subject to this directive , including the design and preparation of the procedure , the drawing - up of the procurement documents , the selection of candidates and tenderers and the award of the contract , so as to avoid any distortion of competition and ensure equal treatment of all tenderers . ### member states shall provide for rules to effectively prevent , identify and immediately remedy conflicts of interests arising in the conduct of procurement procedures that are subject to this directive , including preliminary market consultations , the design and preparation of the procedure , the drawing - up of the procurement documents , the selection of candidates and tenderers and the award of the contract , so as to avoid any distortion of competition and ensure equal treatment of all tenderers .


### as far as covered by annexes i , ii , iv and v and the general notes to the european union ' s appendix&#160 ; 1 to the government procurement agreement and by the other international agreements by which the union is bound , as listed in annex&#160 ; v to this directive , contracting authorities shall accord to the works , supplies , services and economic operators of the signatories to those agreements treatment no less favourable than the treatment accorded to the works , supplies , services and economic operators of the union . by applying this directive to economic operators of the signatories to those agreements , contracting authorities shall comply with those agreements . ### as far as covered by annexes&#160 ; i , ii , iv and v and the general notes to the european union ' s appendix&#160 ; 1 to the government procurement agreement and by the other international agreements by which the union is bound &#8212 ; &#160 ; including commitments within the framework of bilateral trade agreements&#160 ; &#8212 ; as listed in annex&#160 ; v to this directive , contracting authorities shall accord to the works , supplies , services and economic operators of the signatories to those agreements treatment no less favourable than the treatment accorded to the works , supplies , services and economic operators of the union . by applying this directive to economic operators of the signatories to those agreements , contracting authorities shall comply with those agreements .


### they may also provide that contracting authorities may use a competitive procedure with negotiation or a competitive dialogue in any of the following cases : ### member states shall provide that contracting authorities may apply a competitive procedure with negotiation or a competitive dialogue as regulated in this directive in any of the following cases :


### the protection of other exclusive rights . ### the protection of other exclusive rights , including priority vis - à - vis a property site .