### for the purposes of point (d) , the time call shall not be structured to avoid allocating losses to credit enhancement positions or other positions held by investors and shall not be otherwise structured to provide credit enhancement. ### for the purposes of point (d) , the time call shall not be structured to avoid allocating losses to credit enhancement positions or other positions held by investors and shall not be otherwise structured to provide credit enhancement. originators shall notify competent authorities how this requirement is fulfilled , including with a justification of the use of the time call and a plausible account showing that the quality of the underlying assets is not deteriorating.


### collateral in the form of cash held with a third-party credit institution or in the form of cash on deposit with the originator , subject to a minimum credit quality step 2 as referred to in article 136 of regulation (eu) no 575/2013. ### collateral in the form of cash held with a third-party credit institution or in the form of cash on deposit with the originator , or one of its affiliates , in each case where the originator or affiliate has provided the protection seller with recourse to collateral that meets all of the following conditions:


### (2) regulation (eu) 2017/1129 of the european parliament and of the council14 lays down requirements for the drawing up , approval and distribution of the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market in the union. as part of the measures to help issuers to recover from the economic shock resulting from the covid-19 pandemic , targeted amendments to the prospectus regime are necessary. such amendments should enable issuers and financial intermediaries to reduce costs and free up resources for the recovery phase in the immediate aftermath of the crisis. ### (2) regulation (eu) 2017/1129 of the european parliament and of the council14 lays down requirements for the drawing up , approval and distribution of the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market in the union. as part of the measures to help issuers to recover from the economic shock resulting from the covid-19 pandemic , targeted amendments to the prospectus regime are necessary. such amendments should enable issuers and financial intermediaries to reduce costs and free up resources for the recovery phase in the immediate aftermath of the crisis , while taking full account of how the crisis has affected the present situation and the future prospects of economic and financial entities specifically as a result of the health emergency.


### (4) in order to swiftly address the severe economic impact of the covid-19 pandemic , it is important to introduce measures to facilitate investments in the real economy , allow for a rapid recapitalisation of companies in the union and enable issuers to tap into public markets at an early stage in the recovery process. in order to achieve those objectives , it is appropriate to create a new short-form prospectus (‘eu recovery prospectus’) that is easy to produce for issuers , easy to understand for investors who want to finance them and easy to scrutinise and approve for competent authorities. ### (4) in order to swiftly address the severe economic impact of the covid-19 pandemic , it is important to introduce measures to facilitate investments in the real economy , allow for a rapid recapitalisation of companies in the union and enable issuers to tap into public markets at an early stage in the recovery process. in order to achieve those objectives , it is appropriate to create a new short-form prospectus (‘eu recovery prospectus’) that while also addressing the economic and financial issues specifically raised by the covid-19 pandemic is easy to produce for issuers , easy to understand for investors , especially for retail investors , who want to finance them and easy to scrutinise and approve for competent authorities.


### (5) companies that have had shares admitted to trading on a regulated market or traded on an sme growth market continuously for at least the last 18 months before the offer of shares or admission to trading , should have complied with periodic and ongoing disclosure requirements under regulation (eu) no 596/2014 of the european parliament and the council15 , directive 2004/109/ec of the european parliament and of the council16 or commission delegated regulation (eu) 2017/56517 . hence , many of the required content of a prospectus will already be publicly available and investors will be trading on the basis of that information. therefore , the eu recovery prospectus should only be used for secondary issuances and should only focus on essential information that investors need to make informed investment decisions. ### (5) companies that have had shares admitted to trading on a regulated market or traded on an sme growth market continuously for at least the last 18 months before the offer of shares or admission to trading , should have complied with periodic and ongoing disclosure requirements under regulation (eu) no 596/2014 of the european parliament and the council15 , directive 2004/109/ec of the european parliament and of the council16 or commission delegated regulation (eu) 2017/56517 . hence , many of the required content of a prospectus will already be publicly available and investors will be trading on the basis of that information. therefore , the eu recovery prospectus should only be used for secondary issuances and should only focus on essential information that investors need to make informed investment decisions , while also addressing the question regarding how the covid-19 pandemic has affected the business since the primary issuance was launched and the pandemic’s future anticipated impact on the business activities.


### (7) the eu recovery prospectus should include a short-form summary as a useful source of information for investors , in particular retail investors. that summary should be a self-contained part of the eu recovery prospectus and should focus on key information that would enable investors to decide which offers and admissions to trading of securities to study further by reviewing the eu recovery prospectus as a whole to take their decision. ### (7) the eu recovery prospectus should include a short-form summary as a useful source of information for investors , in particular retail investors. that summary should be a self-contained part of the eu recovery prospectus and should focus on key information that would enable investors to decide which offers and admissions to trading of securities to study further by reviewing the eu recovery prospectus as a whole to take their decision. that key information in the summary should include information covering specifically the economic and financial impact of covid-19 as well as the anticipated future impact.


### written in a language and a style that facilitate the understanding of the information , in particular , in a language that is clear , non-technical , concise and comprehensible for investors. ### written in a language and a style that facilitate the understanding of the information , in particular , in a language that is clear , non-technical , concise and comprehensible for investors , especially non-professional investors.


### (ii) key information on the issuer; ### (ii) key information on the issuer , including a specific reference of no less than 400 words to the economic and financial impact of the covid-19 pandemic;


### (iv) key information on the offer of securities to the public or the admission to trading on a regulated market or both.; ### (iv) key information on the offer of securities to the public or the admission to trading on a regulated market or both , including key information on the past dividend policy.


### 1. the following issuers may choose to draw up an eu recovery prospectus under the simplified regime set out in this article in case of an offer of shares to the public or an admission to trading of shares on a regulated market: ### 1. the following issuers may choose to draw up an eu recovery prospectus under the simplified regime set out in this article in case of an offer of equity securities to the public or an admission to trading of shares on a regulated market:


### issuers whose shares have been admitted to trading on a regulated market continuously for at least the last 18 months and who issue shares fungible with existing shares which have been previously issued; ### issuers whose shares have been admitted to trading on a regulated market continuously for at least the last 18 months and who issue equity securities fungible with existing shares which have been previously issued;


### issuers whose shares have been already traded on an sme growth market continuously for at least the last 18 months , provided that a prospectus has been published for the offer of those shares , and who issue shares fungible with existing shares which have been previously issued. ### issuers whose shares have been already traded on an sme growth market continuously for at least the last 18 months , provided that a prospectus has been published for the offer of those shares , and who issue shares fungible with existing shares which have been previously issued.


### issuers whose shares have been already traded on an sme growth market continuously for at least the last 18 months , provided that a prospectus has been published for the offer of those shares , and who issue shares fungible with existing shares which have been previously issued. ### issuers whose shares have been already traded on an sme growth market continuously for at least the last 18 months , provided that a prospectus has been published for the offer of those equity securities , and who issue equity securities fungible with existing equity securities which have been previously issued.


### the prospects of the issuer and the significant changes in the financial position of the issuer that have occurred since the end of the last financial year , if any; ### the prospects of the issuer and the significant changes in the financial position of the issuer that have occurred since the end of the last financial year , if any; there shall be included a specific reference of not less than 400 words to the economic and financial impact of covid-19 on the issuer and a statement regarding the anticipated future impact of same;


### the essential information on the shares , the reasons for the issuance and its impact on the overall capital structure of the issuer , and the use of proceeds. ### the essential information on the equity securities , the reasons for the issuance and its impact on the overall capital structure of the issuer , and the use of proceeds.


### the information contained in the eu recovery prospectus shall be written and presented in an easily analysable , concise and comprehensible form and shall enable investors to make an informed investment decision. the competent authority shall also take into account whether the issuer has disclosed the regulated information to the public pursuant to directive 2004/109/ec , where applicable , regulation (eu) no 596/2014 and , where applicable , information referred to in commission delegated regulation (eu) 2017/565. ### the information contained in the eu recovery prospectus shall be written and presented in an easily analysable , concise and comprehensible form and shall enable investors , especially non-professional investors , to make an informed investment decision. the competent authority shall also take into account whether the issuer has disclosed the regulated information to the public pursuant to directive 2004/109/ec , where applicable , regulation (eu) no 596/2014 and , where applicable , information referred to in commission delegated regulation (eu) 2017/565.


### where the investors referred to in the first subparagraph of this paragraph have the right of withdrawal referred to in paragraph 2 , the financial intermediary shall contact those investors within one working day after the publication of the supplement.; ### where the investors referred to in the first subparagraph of this paragraph have the right of withdrawal referred to in paragraph 2 , the financial intermediary shall contact those investors within one working day after the publication of the supplement. to avoid situations where an investor would not qualify to receive information from the financial intermediary , the information on the supplement shall be made available on the issuer’s website.;


### the regime set out in article 14a expires on [18 months from the date of application of this regulation]. ### the regimes set out in article 14a and article 23 (2) and (3) expire on [18 months from the date of application of this regulation].


### an analysis of whether the eu growth prospectus strikes a proper balance between investor protection and the reduction of administrative burdens for the persons entitled to use it; ### an analysis of whether the eu growth prospectus strikes a proper balance between investor protection and the reduction of administrative burdens for the persons entitled to use it. the analysis shall focus on the way by which references to the present and future financial and economic impact of the covid-19 pandemic in eu recovery prospectuses proved to be relevant and useful to investors;


### the number of eu recovery prospectuses approved and an analysis of the evolution of such number; ### the number of eu recovery prospectuses approved and an analysis of the evolution of such number as well as an estimate of the actual additional market capitalisation mobilised by such prospectuses at the point of issue;


### b. whereas the actions taken so far to achieve the cmu are moving in the right direction; whereas much work nevertheless remains to be done in terms of the precision , effectiveness and simplification of the measures adopted; ### b. whereas the actions taken so far to achieve the cmu are moving in the right direction; whereas however , progress towards achieving cmu has been limited , multiple targets have not been reached and the importance of bank lending as compared to equities has actually increased in recent years as a source of investment funds in the eu;


### c. whereas the social and economic crisis resulting from covid-19 will have a particularly negative impact on smes and retail savers; whereas the eu’s response to covid-19 through the european recovery plan should provide a large injection of capital in order to increase european enterprises’ access to finance; ### c. whereas the social and economic crisis resulting from covid-19 will have a particularly negative impact on smes and could similarly affect retail savers (though in the course of the pandemic , individual savings mostly held in banks have risen sharply); whereas the eu’s response to covid-19 through the european recovery plan should provide a large injection of capital in order to increase european enterprises’ access to finance;


### 1. calls for the removal of barriers , including the simplification of legislation , to diversify funding sources for smes , in order to promote smes’ ability to access equity markets , and to reduce the existing debt bias; points out that the current situation makes smes more fragile and vulnerable; ### 1. calls for the removal of barriers , including the simplification of legislation , where appropriate , to diversify funding sources for smes , in order to promote smes’ ability to access equity markets , and to reduce the existing debt bias; points out that the current situation makes smes more fragile and vulnerable;


### 3. calls for the acceleration of the development of eu venture capital (vc) and private equity markets by increasing the availability of funding for vc investments , developing larger late-stage vc funds , tax incentive schemes for vc and business angel investments , and active ipo markets for vc-backed companies; ### 3. calls for the acceleration of the development of eu venture capital (vc) and private equity markets by increasing the availability of funding for vc investments , developing larger late-stage vc funds , tax incentive schemes for vc and business angel investments , and active ipo markets for vc-backed companies; under a common , and transparent , eu level framework; underlines that these tax incentive schemes should be designed so as to be economically and socially viable and responsible , and be subject to systematic monitoring and evaluation;


### 3. calls for the acceleration of the development of eu venture capital (vc) and private equity markets by increasing the availability of funding for vc investments , developing larger late-stage vc funds , tax incentive schemes for vc and business angel investments , and active ipo markets for vc-backed companies; ### 3. calls for the acceleration of the development of eu venture capital (vc) and private equity markets by increasing the availability of funding for vc investments , developing larger late-stage vc funds , tax incentive schemes for vc and business angel investments , and active ipo markets for vc-backed companies under a common , and transparent , eu level framework; underlines that these tax incentive schemes should be designed so as to be economically and socially viable and responsible;


### 4. requests the realignment of the treatment of cash and synthetic securitisations , of the treatment of regulatory capital and liquidity with that of covered bonds and loans , as well as with the disclosure and due diligence requirements for covered bonds and simple , transparent and standardised (sts) securitisation; ### deleted


### 4. requests the realignment of the treatment of cash and synthetic securitisations , of the treatment of regulatory capital and liquidity with that of covered bonds and loans , as well as with the disclosure and due diligence requirements for covered bonds and simple , transparent and standardised (sts) securitisation; ### 4. welcomes the eba report on a simple , transparent and standardised (sts) framework for synthetic securitisation; supports the report's conclusions regarding the benefits of creating an sts framework for balance-sheet synthetic securitisation only; highlights the nature of synthetic securitisation which creates specific prudential and systemic risks; seeks to ensure that any potential sts framework adequately addresses counter-party credit risks and well-structured credit protection agreements; is sceptical of offering preferential prudential treatment to sts synthetic securitisation products such as those offered to sts traditional securitisation products;


### 5. calls for targeted measures within securities market legislation to expedite the recovery after the covid-19 crisis; supports changes in the prospectus regulation , the markets in financial instruments directive (mifid) , the securitisation regulation and the market abuse regulation to facilitate investments in the real economy , in particular in smes , and to allow newcomers and new products to enter the markets , preserving consumer protection and market integrity; ### 5. subject to the priority of safeguarding regulatory standards , favours the review of the prospectus regulation , the markets in financial instruments directive (mifid) , the securitisation regulation and the market abuse regulation to facilitate investments in the real economy , in particular in smes , and to allow newcomers and new products to enter the markets , preserving consumer protection and market integrity while encouraging cross-border equity investments and trades;


### 6. asks the member states to amend their national tax frameworks , in order to reduce tax obstacles to cross-border investments , including withholding tax procedures , and to increase financing by investors to long-term investment opportunities thereby improving returns on long-term savings for eu citizens; ### deleted


### 6. asks the member states to amend their national tax frameworks , in order to reduce tax obstacles to cross-border investments , including withholding tax procedures , and to increase financing by investors to long-term investment opportunities thereby improving returns on long-term savings for eu citizens; ### 6. asks the member states to amend their national tax frameworks , in order to reduce tax obstacles to cross-border investments , most especially with reference to withholding tax procedures for which , beyond seeking to converge their national practices , tax authorities should participate in a pan-european digital platform where withholding tax liabilities and refunds across jurisdictions are cleared transparently such that retail investors are able to determine returns on their investment in real time , and to increase financing by investors to long-term investment opportunities thereby improving returns on long-term savings for eu citizens;


### 7. highlights the importance of increasing legal certainty for cross-border investments by making national insolvency proceedings more efficient and effective; ### 7. highlights the importance of increasing legal certainty by further harmonising insolvency proceedings law in the eu , as well as security ownership regimes , namely the definition of “shareholder” and its inherent rights; more efficient and effective;


### 8. stresses the necessity of advancing further in the implementation of a genuinely single rule book for financial services in the internal market; ### 8. stresses the necessity of advancing further in the implementation of a genuinely single rule book for financial services in the internal market , where priority should be given to the continuing development of common definitions and standards on sustainable finance;


### 9. underlines the need to promote pension provision; welcomes the pan-european personal pension (pepp) product; reminds member states that pepps need to be subject to the same tax treatment as national pension products to become an option for savers; ### 9. underlines the need to promote pension provision; welcomes the pan-european personal pension (pepp) , whose regulation foresees that capital should be invested taking into account environmental , social and governance (esg) factors; notes that pepp is as a complementary and voluntary pension pillar with regard to national public pension systems; regrets that the pepp regulation lacks a true pan-european approach because it keeps the authorisation process at a national level , and gives a secondary role to eiopa; reminds member states that pepps need to be subject to the same tax treatment as national pension products to become an option for savers;


### 9. underlines the need to promote pension provision; welcomes the pan-european personal pension (pepp) product; reminds member states that pepps need to be subject to the same tax treatment as national pension products to become an option for savers; ### 9. underlines the need to promote pension provision; welcomes the pan-european personal pension (pepp) , whose regulation foresees that capital should be invested taking into account environmental , social and governance (esg) factors; notes that pepp is as a complementary and voluntary pension pillar with regard to national public pension systems; reminds member states that pepps need to be subject to the same tax treatment as national pension products to become an option for savers;


### 10. encourages the member states to promote multi-pillar pension systems , including occupational pension schemes , as a way to improve market dynamics and the incentives to invest; believes that private pensions should be revitalised and made more attractive; encourages the participation of investors in long-term products with tax reduction or exemption policies; ### 10. encourages the member states to promote multi-pillar pension systems , including occupational pension schemes , as a way to improve market dynamics and the incentives to invest; believes that private pensions should be revitalised and made more attractive; encourages the participation of investors in long-term products with tax reduction or exemption policies designed to generate broader economic and social beneficial impact;


### 11. recalls that the solvency 2 directive requires a review by the end of 2020 and that the european insurance and occupational pensions authority (eiopa) will provide technical advice to the commission after consultations with different stakeholders; requests the commission and eiopa to consider adjusting the capital requirements for investments in equity and private debt , in particular of smes; ### 11. recalls that the solvency 2 directive requires a review by the end of 2020 and that the european insurance and occupational pensions authority (eiopa) will provide technical advice to the commission after consultations with different stakeholders;


### 12. stresses the need for european and national supervisory authorities to overcome their differences; calls for supervisory convergence to promote a common european model , guided by the european securities and market authority (esma) , to reduce the existing obstacles to cross-border financial operations; ### 12. stresses the need for european and national supervisory authorities to overcome their differences; calls for supervisory convergence to promote a common european model of supervision and seamless enforcement , guided by the european securities and market authority (esma) , and , where appropriate , the eiopa , to reduce the existing obstacles to cross-border financial operations; understands that convergence had best be attained within a decentralised framework that allows national supervisory authorities to fulfil their functions closer to market players; believes that such convergence had best be attempted as part of the digital europe programmes;


### 12. stresses the need for european and national supervisory authorities to overcome their differences; calls for supervisory convergence to promote a common european model , guided by the european securities and market authority (esma) , to reduce the existing obstacles to cross-border financial operations; ### 12. stresses the need for european and national supervisory authorities to overcome their differences; calls for supervisory convergence to promote a common european model , guided by the european securities and market authority (esma) , to reduce the existing obstacles to cross-border financial operations;


### 14. is concerned that retail investors’ engagement with financial markets remains low; calls for measures to promote retail investments in view of the demographic challenges faced by the eu by increasing the participation of retail investors in capital markets through more attractive and appropriate personal pension products; ### 14. is concerned that retail investors’ engagement with financial markets remains low; calls for measures to promote retail investments in view of the demographic challenges faced by the eu by increasing the participation of retail investors in capital markets through more attractive and appropriate personal pension products; in particular , welcomes the new uniform set of criteria for eu-wide rules to help crowdfunding services function smoothly and foster cross-border business funding , notably for medium-sized and micro-enterprises;


### 16. recalls the existence of different shortcomings in the legislation on packaged retail investment and insurance products (priips) that should be addressed in the next review; expects that level 2 priips legislation on the key investor document to respect level 1 , in particular in relation to the performance scenarios; regrets the delays in the adoption of level 2 priips legislation that will overlap with the first review of priips , and which increases legal uncertainty and costs for stakeholders; ### 16. calls for the improvement of the disclosure and comparability of key information in the legislation on packaged retail investment and insurance products (priips) that should be addressed in the next review; expects that level 2 priips legislation on the key investor document to respect level 1 , in particular in relation to the performance scenarios; regrets the delays in the adoption of level 2 priips legislation that will overlap with the first review of priips , and which increases legal uncertainty and costs for stakeholders; insists that the forthcoming review should provide for disclosure documents which are standardised and machine readable , thereby providing for comparability in a digital-friendly way;


### 18. is of the opinion that the current reporting framework within mifid ii and the european market infrastructure regulation (emir) is very costly and complex , hindering the effectiveness of the system; believes that a simplification thereof is necessary; ### 18. takes note of the belief expressed by financial market intermediaries that the current reporting framework within mifid ii and the european market infrastructure regulation (emir) is very costly and complex , hindering the effectiveness of the system; believes that a simplification thereof should be considered while taking full account of current experience and ensuring that this in no way serves to undermine the aims set for mifid ii and emir and without hindering rules on market integrity , transparency , consumer protection and financial stability;


### 19. calls for amendments to legislation to ensure access to independent advice by financial intermediaries while avoiding promotion of the institution’s own financial products and ensuring a fair marketing of financial products; ### 19. calls for amendments to legislation to ensure access to independent advice by financial intermediaries while avoiding promotion of the institution’s own financial products and ensuring a fair marketing of financial products; agrees that the role of inducements in intermediation and distribution should be further examined to ensure that no conflicts of interest arise and that financial advice is fairly , transparently and adequately supplied to investors;


### 20. underlines that financial education is needed to overcome low retail investor engagement with financial markets , based on lack of knowledge , mistrust and risk aversion; ### 20. notes that lack of financial literacy and access to widespread public information about financial markets is one of the reasons that explain lack of equity culture in the eu; underlines that financial education is needed to overcome low retail investor engagement with financial markets , based on lack of knowledge , mistrust and risk aversion; insists that an information campaign directed to smes on the alternative financing instruments at their disposal could significantly help in deepening the cmu; urges the commission to launch and support public programmes in member states to foster financial and digital literacy using a range of instruments , including digital and social media , to engage with citizens and businesses , namely through public agencies created for that effect;


### 21. emphasises that financial education is a medium-term tool , which enriches the financial system and which is a good step for engaging retail investors with financial markets; ### 21. emphasises that financial education is a medium-term tool , which enriches the financial system and which is a good step for engaging retail investors with financial markets; however , notes that up to now , financial education has had extremely limited traction in promoting and enhancing equity dealings , both nationally and on a cross-border basis;


### 23. takes the view that the digitalisation of financial services can be a catalyst for the mobilisation of capital in the eu while reducing barriers and increasing supervisory efficiency; emphasises that an eu framework with high standards of cybersecurity would be conducive to the cmu; ### 23. takes the view that the digitalisation of financial services can be a catalyst for the mobilisation of capital in the eu while reducing barriers and increasing supervisory efficiency; emphasises that an eu framework with high standards of cybersecurity would be conducive to the cmu; notes that such eu framework should be primarily fit for the digital age and technology neutral;


### 24. highlights that ‘sandboxes’ may be an adequate tool to enhance the innovation and competitiveness of the financial services sector; requests that the commission create a pan-european ‘sandbox’ for financial services; ### 24. highlights that ‘sandboxes’ may be an adequate tool to enhance the innovation and competitiveness of the financial services sector; fears , however , that sandboxes relax prudential oversight over rapidly growing financial institutions; requests that the commission ensures that any european ‘sandbox’ for financial services imposes strict limits as to size of business concerned and does not go to the detriment of consumer safety and financial market stability;


### 24. highlights that ‘sandboxes’ may be an adequate tool to enhance the innovation and competitiveness of the financial services sector; requests that the commission create a pan-european ‘sandbox’ for financial services; ### 24. highlights that ‘sandboxes’ may be an adequate tool to enhance the innovation and competitiveness of the financial services sector; requests that the commission considers the creation of a pan-european ‘sandbox’ for financial services having due regard for both benefits and risks of these tools and the absence of a common eu framework , as analysed by the european supervisory authorities;


### 25. points out that europe competes for capital in a global market , and that , as a result , deeper , more integrated and efficient european capital markets are critical to protecting europe’s economic sovereignty , the use of the euro in third countries , and to attracting foreign investors; ### 25. points out that europe competes for capital in a global market , and that , as a result , deeper , more integrated and efficient european capital markets are critical to protecting europe’s economic sovereignty , the use of the euro in third countries , and to attracting foreign investors; believes that the exit of the uk from the eu makes this objective even more important and that it should be pursued according to transparent rules-based criteria and not case-by-case;


### in respect of the transfer of funds referred to in point (a) , where a payment service provider executes more than 25 payment transactions to the same payee in the course of a calendar quarter. ### in respect to the transfer of funds referred to in point (a) , where a payment service provider executes more than 25 payment transactions or executes transactions of a monetary value of eur 2375 or above to the same payee in the course of a calendar quarter.


### member states shall adopt and publish , by 31 december 2021 at the latest , the laws , regulations and administrative provisions necessary to comply with this directive. they shall forthwith communicate to the commission the text of those provisions. ### the laws , regulations and administrative provisions necessary to comply with this directive shall be adopted and published by member states by 31 of december 2021. they shall forthwith communicate to the commission the text of those provisions.


### they shall apply those provisions from 1 january 2022. ### the directive shall apply from 1 january 2022.


### e. whereas the eba board of supervisors has taken a decision imposing restrictions on its executive director in order to address the conflict of interest arising from him accepting his new position at afme; whereas these restrictions address activities while in service at the eba and after leaving the eba; ### e. whereas the eba management board and board of supervisors decided that the eba executive director’s new employment as ceo of afme should be approved; whereas the board of supervisors has taken a decision to impose restrictions on its executive director believing this addresses the conflict of interest arising from him accepting his new position at afme; whereas these restrictions address activities while in service at the eba and after leaving the eba;


### 2. is concerned about the conflict of interest that has arisen as a consequence of the appointment of the eba executive director as afme chief executive from 1 february 2020; notes that this post-public employment might constitute not only an risk to the reputation and independence of eba but to all union institutions; ### 2. is concerned about the conflict of interest that has arisen as a consequence of the appointment of the eba executive director as afme chief executive from 1 february 2020; notes that this post-public employment with no cooling off period constitutes not only a risk to the reputation and independence of eba but to all union institutions;


### 3. calls for an effective application of the eu staff regulations , in particular of article 16 , in order to prevent conflicts of interest; ### 3. calls for an effective application of the eu staff regulations , in particular of article 16 , in order to prevent conflicts of interest; underlines that article 16 allows institutions to turn down a request to take a specific job if restrictions of a different nature do not suffice to protect the legitimate interests of the institutions; stresses that a rejection of a direct move to afme would have been a proportionate move as afme constitutes an ‘opposing party’ in the meaning of commission decision c(2018)4048 final , article 21 3(b);


### 8. calls on the commission to assess the current practice on post-public employment at european and national level; ### 8. calls on the commission to assess the current practice on post-public employment at european and national level with a view to identify necessary improvements to further protect the institutions from conflicts of interest emanating from employment taken by senior officials after leaving the service or employment at senior posts of union institutions after leaving the private sector;


### 10. calls on the commission to define in this review of the post-public employment framework specific risk areas which might require strengthening , including expanding the opportunity to block professional moves and to consider possible lengthening of cooling-off periods of senior officials proportionate to the specific case to ensure equal treatment in line with article 15 of the charter of fundamental rights of the european union; ### 10. calls on the commission to define in this review of the post-public employment framework specific risk areas which might require strengthening , including expanding the possibility to block professional moves and to consider possible lengthening of cooling-off periods of senior officials proportionate to the specific case to ensure equal treatment in line with article 15 of the charter of fundamental rights of the european union;


### (11) the exchange of payment data between tax authorities is crucial to combat fraud effectively. only the eurofisc liaison officials should process the payment information and only with the objective of fighting vat fraud. that information should not be used for other purposes than the ones established by this regulation , such as for commercial purposes. ### (11) the exchange of payment data between tax authorities is crucial to combat fraud effectively. only the eurofisc liaison officials should process the payment information and only with the objective of fighting vat fraud. that information should not be used for other purposes than the ones established by this regulation , such as for commercial purposes , but should also be applied in the implementation of directive (eu) 2015/849 of the european parliament and of the council1a.


### b. whereas according to eurostat figures , the unemployment rate in august 2019 stood at 6.2 % in the eu and 7.4 % in the euro area , the lowest rates since july 2008; ### b. whereas according to eurostat figures , the unemployment rate in august 2019 stood at 6.2 % in the eu and 7.4 % in the euro area , the lowest rates since july 2008; whereas the unemployment rate has remained uneven across the european union; whereas a high youth unemployment rate remains a serious issue to be tackled in the eu;


### 3. stresses that fiscal policy is a necessary component for enhancing the impact of monetary policy and reducing possible side effects; ### 3. stresses that fiscal policy is a necessary component for enhancing the impact of monetary policy and reducing possible side effects; agrees with the ecb that in order to reach the inflation target , supportive fiscal policies and socially balanced productivity-enhancing reforms are required;


### 3. stresses that fiscal policy is a necessary component for enhancing the impact of monetary policy and reducing possible side effects; ### 3. stresses that more fiscal policy is a necessary component for enhancing the impact of monetary policy and reducing possible side effects;


### 4. underlines the findings of the escb expert group on low wage growth1 , which analysed the disconnect between wage growth and labour market recovery , namely that low wage growth over recent years can be explained mainly by technology and wage bargaining shocks , the latter being impacted by changes in wage bargaining structure – reducing the bargaining power of employees – and labour market regulations – mainly in countries most affected by the global economic and financial crisis and the combination of labour underutilisation , low inflation readings and subdued productivity growth; ### 4. underlines the findings of the escb expert group on low wage growth1 , which analysed the disconnect between wage growth and labour market recovery , namely that low wage growth over recent years can be explained mainly by technology and wage bargaining shocks , the latter being impacted by changes in wage bargaining structure – reducing the bargaining power of employees – and labour market regulations – mainly in countries most affected by the global economic and financial crisis and the combination of labour underutilisation , low inflation readings and subdued productivity growth; and believes this is a regrettable trend.


### - the deepening of the european monetary union , including a fiscal capacity for the euro area able to providing a counter-cyclical stabilisation function; ### - the deepening of the european monetary union , including a fiscal capacity for the euro area able to providing a counter-cyclical stabilisation function , namely the unemployment reinsurance scheme , supported by the [incoming] president of the european commission;


### - the completion of the banking union , including a fully mutualised european deposit insurance scheme that would reduce risks , promote fair competition , facilitate the expansion of pan-european banking and reinforce the stability of the euro area as a whole; ### - the completion of the banking union , including a european deposit insurance scheme based on an effective supervisory regime and crisis management , a harmonised bank insolvency legislation and on the further development of the european resolution regime , with the aim of reducing risks , promoting fair competition , facilitating the expansion of pan-european banking and reinforcing the stability of the euro area as a whole;


### - the completion of the banking union , including a fully mutualised european deposit insurance scheme that would reduce risks , promote fair competition , facilitate the expansion of pan-european banking and reinforce the stability of the euro area as a whole; ### - the completion of the banking union , including the implementation of the backstop for the single resolution fund and a fully mutualised european deposit insurance scheme that would reduce risks , promote fair competition , facilitate the expansion of pan-european banking and reinforce the stability of the euro area as a whole;


### - the creation of a safe asset guaranteed by euro-area member states to foster the integration of bond markets; ### - the creation of a safe asset guaranteed by euro-area member states to foster the integration of bond markets , provided the right conditions are fulfilled.


### 8. notes that the negative effects on banks’ net interest income have been counterbalanced so far by the benefits from more bank lending and lower costs for provisions and losses; ### 8. notes that the negative effects on banks’ net interest income have been counterbalanced so far by the benefits from more bank lending and lower costs for provisions and losses; notes that banks’ profitability has increased steadily since 2012 , with return on equity surpassing 6% since 2017.


### 8. notes that the negative effects on banks’ net interest income have been counterbalanced so far by the benefits from more bank lending and lower costs for provisions and losses; ### 8. notes that the negative effects on banks’ net interest income have been partly counterbalanced so far by the benefits from more bank lending and lower costs for provisions and losses;


### 9. underlines that very low or negative interest rates offer opportunities to consumers , workers and borrowers , who can benefit from stronger economic momentum , lower unemployment and lower borrowing costs; ### 9. underlines that very low or negative interest rates offer opportunities to consumers , workers and borrowers , who can benefit from stronger economic momentum , lower unemployment and lower borrowing costs but is aware that savers , especially pensioners depending on their savings to supplement their pension income , have been negatively affected;


### 9. underlines that very low or negative interest rates offer opportunities to consumers , workers and borrowers , who can benefit from stronger economic momentum , lower unemployment and lower borrowing costs; ### 9. underlines that very low or negative interest rates offer opportunities to consumers , workers and borrowers , who can benefit from stronger economic momentum , lower unemployment and lower borrowing costs; notes that in the long term this could be a problem for savers and pensioners.


### 11. recalls that , as an eu institution , the ecb is bound by the paris agreement on climate change and that this should be reflected in its policies , with full respect for its mandate and its independence; ### 11. recalls that , as an eu institution , the ecb is bound by the paris agreement on climate change; calls upon the ecb , with full respect for its mandate and its independence , to implement environmental , social and governance principles (esg principles) into its policies and to prioritise sustainability objectives among its secondary objectives as specified in art. 127 tfeu and art. 3 teu;


### 14. is extremely worried about the risks due to the delay in setting up the banking union , and calls for the swift completion of the banking union with a fully mutualised european deposit guarantee scheme; ### 14. is extremely worried about the risks due to the delay in setting up the banking union , and calls for the swift completion of the banking union with a european deposit guarantee scheme based on an effective supervisory regime and crisis management , a harmonised bank insolvency legislation and on the further development of the european resolution regime;


### 14. is extremely worried about the risks due to the delay in setting up the banking union , and calls for the swift completion of the banking union with a fully mutualised european deposit guarantee scheme; ### 14. is extremely worried about the risks due to the delay in setting up the banking union , and calls for the swift completion of the banking union with a fully mutualised european deposit guarantee scheme and the implementation of the backstop to the single resolution fund;


### 14. is extremely worried about the risks due to the delay in setting up the banking union , and calls for the swift completion of the banking union with a fully mutualised european deposit guarantee scheme; ### 14. is extremely worried about the risks due to the delay in setting up the banking union , and calls for the swift completion of the banking union with a fully mutualised european deposit guarantee scheme; is further worried about the situation of small and medium banks , which face increased operating costs due to the introduction of new and necessary regulatory measures , leading them to impose further restrictions and financial burdens on smes and start-ups; asks the board of the ecb to take into account this increasingly salient problem , especially in small eu member states , where such banks are occupying key business niches , neglected by big banks;


### 15. calls for the capital markets union (cmu) project to be accelerated in order to deepen financial integration , with a view to improving resilience to shocks and making the transmission of monetary policy across the monetary union more effective; ### 15. calls for the capital markets union (cmu) project to be accelerated in order to deepen financial integration , with a view to improving resilience to shocks and making the transmission of monetary policy across the monetary union more effective; is concerned that whereas the cmu project was designed to make european private investment more reliant on capital markets and less on bank lending , the exact opposite has been achieved as of now;


### 15. calls for the capital markets union (cmu) project to be accelerated in order to deepen financial integration , with a view to improving resilience to shocks and making the transmission of monetary policy across the monetary union more effective; ### 15. calls for a fully-fledged capital markets union (cmu) project to be accelerated in order to boost economic growth , deepen and strengthen financial integration , with a view to improving resilience to shocks and making the transmission of monetary policy across the monetary union more effective; recognizes , in this respect , the strong hitherto support of the ecb in establishing a real cmu;


### 15. calls for the capital markets union (cmu) project to be accelerated in order to deepen financial integration , with a view to improving resilience to shocks and making the transmission of monetary policy across the monetary union more effective; ### 15. calls for the capital markets union (cmu) project to be accelerated in order to deepen financial integration and to improve the access of sme's to finance , with a view to improving resilience to shocks and making the transmission of monetary policy across the monetary union more effective;


### 18. agrees with christine lagarde that a review of the ecb’s monetary policy framework is timely and warranted in order to ensure that the ecb has the right tools to deliver on its price stability mandate in the future; calls on the ecb to organise a public consultation as part of this process in order to ensure that the review is open to input and feedback from a broad range of diverse civil society stakeholders; ### 18. agrees with christine lagarde that a review of the ecb’s monetary policy framework is timely and warranted in order to ensure that the ecb has the right tools to deliver on its price stability mandate in the future; calls on the ecb to organise a public consultation as part of this process in order to ensure that the review is open to input and feedback from a broad range of diverse civil society stakeholders; agrees further with christine lagarde that the ecb has to enhance its communication of the impact of its policies towards the european citizens.


### 20. recalls that the nominations of executive board members should be prepared carefully , with full transparency and together with parliament in line with the treaties; calls on the council to draw up a gender-balanced shortlist for all current and upcoming vacancies and to share it with parliament , thus allowing it to play a more meaningful advisory role in the appointment process; regrets that to date no satisfactory progress has been made; ### 20. recalls that the nominations of executive board members should be prepared carefully , with full transparency and together with parliament in line with the treaties; calls on the council to draw up both a geographical and a gender-balanced shortlist for all current and upcoming vacancies and to share it with parliament , thus allowing it to play a more meaningful advisory role in the appointment process; regrets that to date no satisfactory progress has been made;


### - having regard to the oecd beps action plan of july 2013 , and the oecd public consultation document “” of 9 october 2019 (oecd secretariat proposal) , and the public consultation document “global anti-base erosion proposal (globe) - pillar two” of 8 november 2019 , ### – having regard to the oecd beps action plan of october 2015 and action 1 in particular , – having regard to the oecd programme of work to develop a consensus solution to the tax challenges arising from the digitalisation of the economy of 29 may 2019 , – having regard to the oecd public consultation document “” of 9 october 2019 (oecd secretariat proposal) , and the public consultation document “global anti-base erosion proposal (globe) - pillar two” of 8 november 2019 ,


### a. whereas the current international corporate tax rules can be dysfunctional , from the early 20th century and were not designed for the challenges of the digital economy; ### a. whereas the current international corporate tax rules are dysfunctional leading to an unfair , inefficient and unsustainable international tax system , date from the early 20th century and were not designed for the challenges of the digital economy;


### b. whereas following the financial crisis from 2008-09 and a series of revelations by journalists of practices of tax evasion , aggressive tax planning and tax avoidance , the g20 countries agreed to address these issues globally via the at oecd level through the base erosion and profit shifting (beps) project , leading to the beps action plan; ### b. whereas following the financial crisis from 2008-09 and a series of revelations by journalists and civil society organisations of practices of tax evasion , aggressive tax planning and tax avoidance , the g20 countries agreed to address these issues globally via the at oecd level through the base erosion and profit shifting (beps) project , leading to the beps action plan;


### b. whereas following the financial crisis from 2008-09 and a series of revelations by journalists of practices of tax evasion , aggressive tax planning and tax avoidance , the g20 countries agreed to address these issues globally via the at oecd level through the base erosion and profit shifting (beps) project , leading to the beps action plan; ### b. whereas following the financial crisis from 2008-09 and a series of revelations by journalists of practices of tax evasion , aggressive tax planning and tax avoidance , the g20 countries agreed to address these issues globally via the at oecd level through the base erosion and profit shifting (beps) project , leading to the beps action plan; whereas there has been a various level of engagement and commitment in applying the oecd beps rules both amongst the eu member states and internationally on the oecd level;


### c. whereas the beps action plan managed to find global consensus on many aspects to fight tax evasion , aggressive tax planning and tax avoidance; however there was no agreement on addressing the tax challenges of the digitalisation of the economy , which led to a separate 2015 beps action 1 report; ### c. whereas the beps action plan managed to find global consensus on some aspects to fight tax evasion , aggressive tax planning and tax avoidance; however there was no agreement on addressing the tax challenges of the digitalisation of the economy , which led to a separate 2015 beps action 1 report;


### e. whereas in 2018 , pending an international agreement , the european commission put forward two proposals addressing the taxation of the digital economy , which were supported by the european parliament , but not adopted in council: a short-term solution of introducing a digital services tax (dst) , and a long-term solution defining a significant digital presence (sdp) as a nexus for corporate taxation; ### e. whereas in 2018 , pending an international agreement , the european commission put forward two proposals addressing the taxation of the digital economy , which were supported by the european parliament , but not adopted in council , notably due to the singling out of online activities , and questioned by the oecd , which highlighted the absence of consensus on the merits of interim measures: a short-term solution of introducing a digital services tax (dst) , and a long-term solution defining a significant digital presence (sdp) as a nexus for corporate taxation;


### e. whereas in 2018 , pending an international agreement , the european commission put forward two proposals addressing the taxation of the digital economy , which were supported by the european parliament , but not adopted in council: a short-term solution of introducing a digital services tax (dst) , and a long-term solution defining a significant digital presence (sdp) as a nexus for corporate taxation; ### e. whereas in 2018 , pending an international agreement , the european commission put forward two proposals addressing the taxation of the digital economy , which were supported by the european parliament , but not adopted in council due to resistance from a small number of member states: a short-term solution of introducing a digital services tax (dst) , and a long-term solution defining a significant digital presence (sdp) as a nexus for corporate taxation;


### e. whereas in 2018 , pending an international agreement , the european commission put forward two proposals addressing the taxation of the digital economy , which were supported by the european parliament , but not adopted in council: a short-term solution of introducing a digital services tax (dst) , and a long-term solution defining a significant digital presence (sdp) as a nexus for corporate taxation; ### e. whereas in 2018 , pending an international agreement , the european commission put forward two proposals addressing the taxation of the digital economy , which were supported by the european parliament , but not adopted in council: a short-term solution of introducing a digital services tax (dst) , and a long-term solution defining a significant digital presence (sdp) - which would replace the dst proposal in the long-run - as a nexus for corporate taxation;


### l. whereas criticisms have been raised by the european commission in some country reports against shortcoming in national tax systems that facilitate aggressive tax planning , arguing that they undermine the integrity of the european single market; ### l. whereas criticisms have been raised by the european commission in some country reports against shortcoming in national tax systems that facilitate aggressive tax planning , for which steps are already being taken to amend aspects of national tax systems in the effort to address the concerns in the crs;


### m. whereas there has been a gradual shift from tangible production to intangible assets in the value chains of mnes , as reflected in the relative rates of growth over the last five years of royalties and licensing fee receipts (almost 5 % annually) compared with trade in goods and foreign direct investment (fdi) (less than 1 % annually); whereas mnes pay almost no taxes in some member states despite their significant digital presence and large revenues in those member states; ### m. whereas there has been a gradual shift from tangible production to intangible assets in the value chains of multinational enterprises (mnes) , as reflected in the relative rates of growth over the last five years of royalties and licensing fee receipts (almost 5 % annually) compared with trade in goods and foreign direct investment (fdi) (less than 1 % annually); whereas mnes - as defined in the oecd beps work and proposals - pay almost no taxes in some member states despite their significant digital presence and large revenues in those member states;


### 3. recalls that the eu’s proposals for a c(c)ctb also go far beyond these oecd alternatives at eu level , notably by departing from the separate entity principle; ### 3. recalls that the eu’s proposals for a c(c)ctb also go far beyond these oecd alternatives at eu level , a position which risks breaking the consensus at oecd level and putting the eu at a competitive disadvantage , notably by departing from the separate entity principle;


### 3. recalls that the eu’s proposals for a c(c)ctb also go far beyond these oecd alternatives at eu level , notably by departing from the separate entity principle; ### 3. recalls that the eu’s proposals for a c(c)ctb also go far beyond these oecd alternatives at eu level , notably by departing from the separate entity principle; recalls parliament position on the c(c)ctb and urges the council to adopt the two proposals swiftly;


### 3. recalls that the eu’s proposals for a c(c)ctb also go far beyond these oecd alternatives at eu level , notably by departing from the separate entity principle; ### 3. recalls that the eu’s proposals for a c(c)ctb also go far beyond these oecd alternatives at eu level , notably by departing from the separate entity principle; regrets that this proposal is still blocked at the council;


### 5. deplores that eu member states were not able to agree on a joint approach regarding dst; ### 5. deplores that eu member states were not able to agree neither on a joint approach regarding dst nor the sdp proposals; reminds that the new commission president ursula von der leyen promised to put forward a proposal concerning the taxation of digital giants and push for its approval on the eu level , if no consensus on the oecd level is found by the end of 2020;


### 5. deplores that eu member states were not able to agree on a joint approach regarding dst; ### 5. deplores that eu member states were not able to agree on a joint approach regarding c(c)ctb , dst and sdp;


### 7. welcomes the participation on an equal footing of all countries involved in the inclusive framework , which brings together over 130 countries and jurisdictions to collaborate on the implementation of the oecd/g20 beps package and to negotiate joint solutions for tackling the remaining beps challenges; recalls , however , that over 100 developing countries were excluded from the negotiations on the 15 beps actions; ### 7. welcomes the participation on an equal footing of all countries involved in the inclusive framework , which brings together over 130 countries and jurisdictions to collaborate on the implementation of the oecd/g20 beps package and to negotiate joint solutions for tackling the remaining beps challenges; regrets , however , that over 100 developing countries were excluded from the negotiations on the 15 beps actions;


### 7. welcomes the participation on an equal footing of all countries involved in the inclusive framework , which brings together over 130 countries and jurisdictions to collaborate on the implementation of the oecd/g20 beps package and to negotiate joint solutions for tackling the remaining beps challenges; recalls , however , that over 100 developing countries were excluded from the negotiations on the 15 beps actions; ### 7. welcomes the participation on an equal footing of all countries involved in the inclusive framework , which brings together over 130 countries and jurisdictions to collaborate on the implementation of the oecd/g20 beps package and to negotiate joint solutions for tackling the remaining beps challenges; recalls , however , that over 100 developing countries were excluded from the negotiations on the 15 beps actions , therefore invites member states to support the inclusiveness of the ongoing negotiations;


### 8. notes that the oecd preliminary findings of the impact assessment suggest that the combined effect of pillar one and pillar two would lead to a significant increase in global tax revenues as well as a redistribution on taxing rights to market jurisdictions; notes in particular that pillar two would yield a significant increase of corporate income tax revenue globally; understands the two pillars would not adversely affect the investment environment20; ### 8. notes that the oecd preliminary findings of the impact assessment suggest that the combined effect of pillar one and pillar two would lead to a significant increase in global tax revenues as well as a redistribution on taxing rights to market jurisdictions; notes in particular that pillar two would yield a significant increase of corporate income tax revenue globally; notes the impact on cross-border investment will still be a critical issue to consider in the ongoing impact assessment by the oecd;


### 8. notes that the oecd preliminary findings of the impact assessment suggest that the combined effect of pillar one and pillar two would lead to a significant increase in global tax revenues as well as a redistribution on taxing rights to market jurisdictions; notes in particular that pillar two would yield a significant increase of corporate income tax revenue globally; understands the two pillars would not adversely affect the investment environment20; ### 8. notes that the oecd preliminary findings of the impact assessment suggest that the combined effect of pillar one and pillar two would lead to a significant increase in global tax revenues as well as a redistribution on taxing rights to market jurisdictions; notes however that this redistribution of taxing rights needs to be fair and balanced between all member states , notes further in particular that pillar two would yield a significant increase of corporate income tax revenue globally; understands the two pillars would not adversely affect the investment environment20;


### 8. notes that the oecd preliminary findings of the impact assessment suggest that the combined effect of pillar one and pillar two would lead to a significant increase in global tax revenues as well as a redistribution on taxing rights to market jurisdictions; notes in particular that pillar two would yield a significant increase of corporate income tax revenue globally; understands the two pillars would not adversely affect the investment environment20; ### 8. notes that the oecd preliminary findings of the impact assessment suggest that the combined effect of pillar one and pillar two would lead to a significant increase in global tax revenues as well as a redistribution on taxing rights to market jurisdictions; notes in particular that pillar two would yield a significant increase of corporate income tax revenue globally; understands the two pillars would not adversely affect the investment environment20; underlines that these two pillars have to be seen as a package;


### 9. highlights the specificities of the single market which provides for the free movement of goods and services and therefore considers that any international corporate tax reform should ensure a smooth running of the single market , notably by safeguarding a level playing field for all firms , including paying a fair share of where the actual substantive and genuine economic activity and value creation take place; ### 9. highlights the specificities of the single market which provides for the free movement of goods and services and therefore considers that any international corporate tax reform should ensure a smooth running of the single market , notably by safeguarding a level playing field for all firms , including paying a fair share of where the actual substantive and genuine economic activity and value creation take place and ensuring that the tax income is fairly distributed over all member states;


### 12. considers that the scope of the reform should cover all large firms having the possibility to engage in beps practices by exploiting legal loopholes; ### 12. considers that the scope of the reform should cover all large firms having the possibility to engage in beps practices by exploiting legal loopholes , whilst protecting sme's from additional burdens , therefore regrets that the current oecd secretariat’s proposal limits the scope of this reform to highly digital or consumer facing businesses , catching only a limited numbers of mnes involved in aggressive tax planning;


### 14. welcomes the idea to develop a new nexus that goes beyond the concept of having a physical presence in a country to include a taxpayer into a scope , considers that the nexus should be designed in order to include firms with an active engagement and interaction with customers and users , also by digital means; ### 14. welcomes the idea to develop a new nexus that goes beyond the concept of having a physical presence in a country to include a taxpayer into a scope , considers that the nexus should be designed in order to include all firms with an active engagement and interaction with customers and users , also by digital means;


### 14. welcomes the idea to develop a new nexus that goes beyond the concept of having a physical presence in a country to include a taxpayer into a scope , considers that the nexus should be designed in order to include firms with an active engagement and interaction with customers and users , also by digital means; ### 14. welcomes the idea to develop a new nexus that goes beyond the concept of having a physical presence in a country to include a taxpayer into a scope , considers that the nexus should be designed in order to include firms with an active engagement and interaction with customers and users , also by digital means; however , in digital business , value is not only created by consumers , but in the first place by research and development; therefore , to safeguard financial efforts in terms of r&d investments in the digital sector , it is important that the reallocation of taxation rights between member states is done in a fair and balanced way;


### 14. welcomes the idea to develop a new nexus that goes beyond the concept of having a physical presence in a country to include a taxpayer into a scope , considers that the nexus should be designed in order to include firms with an active engagement and interaction with customers and users , also by digital means; ### 14. welcomes the idea to develop a new nexus that goes beyond the concept of having a physical presence in a country to include a taxpayer into a scope , considers that the nexus should be designed in order to include firms with an active engagement and interaction with customers and users , also by digital means; endorses the idea according to which the new nexus could have thresholds including country-specific sales thresholds adapted to ensure that small economies can also benefit from it;


### 15. welcomes the idea to develop a country specific revenues threshold calibrated to ensure smaller economies also get their fair share of taxing rights; reminds in this context the eu proposal for sdp; ### 15. welcomes the idea to develop a country specific revenues threshold calibrated to ensure smaller export focussed economies also get their fair share of taxing rights; reminds in this context the eu proposal for sdp;


### 18. considers that making a distinction between routine and non-routine profits , currently not clearly defined , will add complexity and uncertainty for businesses , notably as regards oecd transfer pricing guidelines; is concerned that this could add opportunities to circumvent the newly agreed rules; ### 18. considers that making a distinction between routine and non-routine profits , concepts currently not clearly defined , as well as maintaining transfer pricing rules based on the arm’s length principle (alp) for most profits allocation , will add complexity and uncertainty for businesses , notably as regards oecd transfer pricing guidelines; is concerned that this could add opportunities to circumvent the newly agreed rules;


### 19. would therefore rather invite member states to push for a solution that would favour fractional apportionment , based on factors representing the value creation , such as sales , employees , assets and users; in that regard , recalls therefore its position on the c(c)ctb and sdp (significant digital presence) proposals; ### 19. would therefore rather invite member states to push for a solution that would favour fractional apportionment , based on factors representing the value creation , such as sales , employees , assets and users;


### 19. would therefore rather invite member states to push for a solution that would favour fractional apportionment , based on factors representing the value creation , such as sales , employees , assets and users; in that regard , recalls therefore its position on the c(c)ctb and sdp proposals; ### 19. would therefore rather invite member states to push for a solution that would favour fractional apportionment , based on factors representing substantive and genuine economic activity and value creation , such as sales , employees , assets and users; in that regard , recalls therefore its position on the c(c)ctb and sdp proposals;


### 19. would therefore rather invite member states to push for a solution that would favour fractional apportionment , based on factors representing the value creation , such as sales , employees , assets and users; in that regard , recalls therefore its position on the c(c)ctb and sdp proposals; ### 19. would therefore rather invite member states to push for a solution that would favour fractional apportionment , based on factors representing the value creation , such as sales , r&d investments , employees , assets and users; in that regard , recalls therefore its position on the c(c)ctb and sdp proposals;


### 20. welcomes the willingness to ensure tax certainty and to limit dispute that could arise from the implementation of the new nexus and the new allocation of taxing rights; ### 20. welcomes the willingness to ensure tax certainty and to limit dispute that could arise from the implementation of the new nexus and the new allocation of taxing rights , and while supporting the tax dispute resolution mechanisms in the european union20a , raises concerns regarding mandatory arbitration mechanisms that could potentially disadvantage developing countries (so-called ‘amount c’); likewise invites member states to limit the recourse to rulings and especially advanced pricing agreements when designing tools providing for increased tax certainty;


### 21. welcomes the globe proposal which aims at ensuring that a minimum level of taxes is paid where value is created and where economic activity is taking place; ### 21. welcomes the globe proposal which aims at ensuring that a minimum level of taxes is paid where value is created and where actual substantive and genuine economic activity is taking place; shares the view that globe would address remaining base erosion and profit shifting issues while limiting tax competition , notably by reducing pressures to grant tax incentives , which are not related to any positive economic impact , and would halt the ongoing race to the bottom on a statutory corporate income tax rate at both global and eu level;


### 24. considers that the calculation of tax bases , in the framework of the globe proposal , should be made according to agreed international principles to avoid tax base narrowing as well as competition among countries that risk undermining the effectiveness of any possible decision taken on a minimum effective level of taxation; ### 24. considers that the calculation of tax bases , in the framework of the globe proposal , should be made according to agreed international principles to avoid tax base narrowing as well as forms of harmful competition among countries that risk undermining the effectiveness of any possible decision taken on minimum levels of taxation;


### 25. considers that any discussion at oecd/g20 towards a minimum tax rate should focus on effective tax rates; considers that any minimum effective rate should be set at a fair and sufficient level to discourage profit shifting and prevent tax competition; ### 25. considers that any discussion at oecd/g20 towards a minimum tax rate focusing on effective tax rates should note that within the eurozone and under maastricht budgetary rules , member states are already obligated to follow deficit and strict national debt criteria so that minimum rates for effective taxation could be burdensome; considers that any minimum levels of taxation should be set at a fair and sufficient level to discourage profit shifting while safeguarding tax competition , which is a regulatory tool to create attractiveness for investments;


### 25. considers that any discussion at oecd/g20 towards a minimum tax rate should focus on effective tax rates; considers that any minimum effective rate should be set at a fair and sufficient level to discourage profit shifting and prevent tax competition; ### 25. considers that any discussion at oecd/g20 towards a minimum tax rate should focus on effective tax rates; considers that any minimum effective rate should be set at a fair and sufficient level to discourage profit shifting and prevent tax competition , therefore recommends a minimum effective rate of 18% , noting that the current eu average of statutory corporate income tax rates is 21 ,7%21a and that some policy challenges , such as climate change , will require fiscal policy space and tools;


### 26. reminds that setting a global level for minimum effective taxation raises the questions of blending across jurisdictions; considers therefore that , with respect to the income inclusion rule , the minimum effective level of taxation should be established for each jurisdiction where the mnes are located to limit possibilities to continue engaging in aggressive tax planning; ### 26. reminds that setting minimum levels of taxation on a global scale raises the questions of blending across jurisdictions; considers therefore that , with respect to the income inclusion rule , minimum levels of taxation should be established for each jurisdiction where the mnes are located to limit possibilities to continue engaging in aggressive tax planning;


### 28. calls upon the commission and member states to agree on a joint , ambitious eu position in the oecd negotiations , ensuring that the eu speaks with one voice and leads by example to ensure a fairer allocation of taxing rights and a minimum level of effective taxation; ### 28. calls upon the commission and member states to agree on a joint , ambitious eu position in the oecd negotiations , ensuring that the eu speaks with one voice and leads by example to ensure a fairer allocation of taxing rights; further insists that the challenges raised by the digitisation of business must be addressed by the eu in a multilateral setting;


### 28. calls upon the commission and member states to agree on a joint , ambitious eu position in the oecd negotiations , ensuring that the eu speaks with one voice and leads by example to ensure a fairer allocation of taxing rights and a minimum level of effective taxation; ### 28. calls upon the commission and member states to agree on a joint , ambitious eu position in the oecd negotiations , ensuring that the eu speaks with one voice and leads by example to ensure a fairer allocation of taxing rights which takes the economic specificities of all member states into account and a minimum level of effective taxation;


### 28. calls upon the commission and member states to agree on a joint , ambitious eu position in the oecd negotiations , ensuring that the eu speaks with one voice and leads by example to ensure a fairer allocation of taxing rights and a minimum level of effective taxation; ### 28. calls upon the commission and member states to agree on a joint , ambitious eu position in the oecd negotiations , ensuring that the eu speaks with one voice and leads by example to ensure a fairer allocation of taxing rights and a minimum level of effective taxation; calls on the commission and member states to base their joint approach on the position of the european parliament , also on files that are still in the council pipeline (e.g. public cbcr and cc(c)tb);


### 30. strongly encourages the commission and the member states to achieve a deal at international level which would then be transposed at eu level through relevant eu and national legislations; likewise supports the commitment of the commission president-elect to propose an eu solution , should an international deal not be reached by the end of 2020; ### 30. strongly encourages the commission and the member states to achieve a deal at international level which would then be transposed at eu level through relevant eu and national legislations; likewise supports the commitment of the commission president-elect to propose an eu solution , should an international deal not be reached by the end of 2020; any eu solution should be in alignment with the current commission’s proposals such as the c(c)ctb , as well as the objective to ensure a minimum effective level of taxes is paid per member state which would limit tax competition across member states and strengthen the single market;


### d. whereas the development of the single resolution mechanism (srm) was efficient; ### d. whereas the development of the single resolution mechanism (srm) has been successful but there is still work to do to ensure efficient application of the regulation;


### a. whereas according to the commission’s forecasts , the gdp growth rate for 2019 stands at 1.2 % of gdp per capita in the euro area and 1.4 % in the eu28 , and is expected to rise to 1.4 % and 1.6 % respectively in 202010; ### a. whereas according to the commission’s forecasts , the gdp growth rate for 2019 stands at 1.2 % of gdp per capita in the euro area and 1.4 % in the eu28 , and is expected to rise to 1.4 % and 1.6 % respectively in 202010 , based on the assumption of a status quo in terms of trading patterns between the eu27 and the uk and notwithstanding the mainly negative risks to the global economic outlook; whereas the economic recovery is uneven across the eu; whereas further policy action will nonetheless be required to address unresolved legacies of the global economic crisis; whereas globalisation has not brought the same benefits for all , leading to persistent high levels of income inequality and slow reduction of poverty , needing new efforts to ensure growth and equity;


### 3. market data contributors shall , with regard to transactions in the instruments referred to in paragraph 1 that are concluded by investment firms outside a trading venue , provide the ctp with the market data concerning those transactions either directly or through an apa. ### 3. market data contributors shall , with regard to transactions in the instruments referred to in paragraph 1 that are concluded by investment firms outside a trading venue , provide the ctp with the market data concerning those transactions through an apa. market data providers shall , with regard to the best bids and offers in shares provided by investment firms outside a trading venue , provide the ctp with the market data concerning those bids and offers either directly or through an apa.


### (7) dark trading is trading without pre-trade transparency , using the reference price waiver laid down in article 4(1) , point (a) of regulation (eu) no 600/2014 and the negotiated trade waiver laid down in article 4(a) point (a) , point (i) of that regulation. the use of both waivers is capped by the double volume cap (‘dvc’). the dvc is a mechanism that limits the level of dark trading to a certain proportion of total trading in an equity instrument. the amount of dark trading in an equity instrument on an individual venue may not exceed 4% of total trading in that instrument in the union. when this threshold is breached , dark trading in that instrument on that venue is suspended. secondly the amount of dark trading in an equity instrument in the union may not exceed 8% of total trading in that instrument in the union. when this threshold is breached all dark trading in that instrument is suspended. the venue specific threshold leaves room for continued use of those waivers on other platforms on which trading in that equity instrument is not yet suspended , until the union wide threshold is breached. this causes complexity in terms of monitoring the levels of dark trading and of enforcing the suspension. to simplify the double volume cap while keeping its effectiveness , the new single volume cap should rely solely on the eu-wide threshold. that threshold should be lowered to 7 % to compensate for a potential increase of trading under those waivers as a consequence of abolishing the venue specific threshold. ### (7) dark trading is trading without pre-trade transparency. the double volume cap (dvc)is a mechanism that limits the level of dark trading , using the reference price waiver laid down in article 4(1) , point (a) of regulation(eu) no 600/2014 and the negotiated trade waiver laid down in article 4(a)point (a) , point (i) of that regulation , to a certain proportion of total trading in an equity instrument. the amount of dark trading under both waivers in an equity instrument on an individual venue may not exceed 4% of total trading in that instrument in the union. when this threshold is breached , dark trading under both waivers in that instrument on that venue is suspended. secondly the amount of dark trading under both waivers in an equity instrument in the union may not exceed 8% of total trading in that instrument in the union. when this threshold is breached all dark trading under both waivers in that instrument is suspended. the dvc faces strong limitations as it does not limit trading without pre-trade transparency outside the two waivers it covers. the venue specific threshold leaves room for continued use of those waivers on other platforms on which trading in that equity instrument is not yet suspended , until the union wide threshold is breached. this causes complexity in terms of monitoring the levels of dark trading and of enforcing the suspension. to simplify the double volume cap while keeping its effectiveness , the new single volume cap should cover non-pre-trade transparent trading , not only under both waivers but also including other non-price forming transactions below the large-in-scale threshold and subject to the share trading obligation. the volume cap threshold should be determined by esma. when defining the possible threshold , esma should take into account the impact of that measure on price formation , liquidity , and end investors’outcomes.


### (11) in order to reinforce the price formation process and to maintain a level playing field between trading venues and systematic internalisers , article 14 of regulation (eu) no 600/2014 requires systematic internalisers to make public all quotes in equity instruments placed by that systematic internaliser below the standard market size. systematic internalisers are free to decide which sizes they quote , as long as they quote at a minimum size of 10% of the standard market size. that possibility , however , has led to very low levels of pre-trade transparency provided by systematic internalisers in equity instruments , and has hampered the achievement of a level playing field. it is therefore necessary to require systematic internalisers to publish firm quotes relating to a minimum of twice the standard market size. ### (11) in order to reinforce the price formation process and to maintain a level playing field between trading venues and systematic internalisers , article 14 of regulation (eu) no 600/2014 requires systematic internalisers to make public all quotes in equity instruments placed by that systematic internaliser below the standard market size. systematic internalisers are free to decide which sizes they quote , as long as they quote at a minimum size of 10% of the standard market size. that possibility , however , has led to very low levels of pre-trade transparency provided by systematic internalisers in equity instruments , and has hampered the achievement of a level playing field. it is therefore necessary to require systematic internalisers to publish firm quotes relating to a minimum size to be determined by esma. the minimum size should exceed twice the standard market size , and should be determined by the impact of the measure on price formation , liquidity , and end investors’ outcomes.


### (12) in order to create a level playing field , in addition to the obligation to publish firm quotes relating to a minimum of twice the standard market size , systematic internalisers should also no longer be allowed to match at midpoint below twice the standard market size. it should furthermore be clarified that systematic internalisers should be allowed to match at midpoint in so far as they comply with the tick-size rules in accordance with article 49 of directive 2014/65/eu when they trade above twice the standard market size but below the large in-scale threshold. when systematic internalisers trade above a large in-scale threshold , they should continue to be allowed to match at midpoint without complying with the tick-size regime. ### deleted


### (22) there is an objective difference between a venue of primary admission and other trading venues that serve as secondary trading markets. a venue of primary admission admits companies to the public markets , playing a crucial role in the life of a share and for the share’s liquidity. this is particularly true in the case of shares listed on smaller regulated markets which remain typically traded mostly on the venue of primary admission. when the pre-trade transparent trading of a certain share takes place exclusively or predominantly on the venue of primary admission , such smaller venue plays a more important role in the price formation for that share. the core market data a smaller regulated market contributes to the consolidated tape therefore plays a more determining role in the price formation for the shares this venue admits to trading. a preferential treatment in the revenue participation scheme is therefore considered appropriate to allow these smaller exchanges to maintain their local admissions and safeguard a rich and vibrant ecosystem in line with the objectives of the capital markets union. ### (22) there is an objective difference between a venue of primary admission and other trading venues that serve as secondary trading markets. a venue of primary admission admits companies to the public markets , playing a crucial role in the life of a share and for the share’s liquidity. this is particularly true in the case of shares listed on smaller regulated markets which remain typically traded mostly on the venue of primary admission. in smaller regulated markets the level of concentration of trading in shares , for which they are also the venue of primary admission , means that their relative contribution to the fragmentation of trading in the union is less significant compared to that of larger regulated markets. the average daily trading volume of shares in the smaller regulated markets is relatively low , often accounting for less than 1 % of the average daily trading volume of the union as a whole. finally , smaller regulated markets that are not owned by larger groups of exchange operators are , on average , less diversified and more dependent on data revenues , and the inclusion of their pre-trade data on the consolidated tape for shares could deprive them of their most important source of income. therefore , given the lower levels of fragmentation of smaller markets , their relative share of the overall trading landscape and legitimate concerns about the viability of their business , an exclusion from the mandatory inclusion of their real time pre-trade data in the consolidated tape output should be considered appropriate to allow smaller regulated markets that are not owned by larger groups of exchange operators to maintain their local admissions and safeguard a rich and vibrant ecosystem inline with the objectives of the capital markets union. from a procedural perspective , the first exclusion criterion should be market share; if the market share at any future point exceeds the threshold set out in this regulation , fragmentation criteria should apply as alternative exemption criteria. notwithstanding the mandatory inclusion exemption , smaller regulated markets that wish to be included in the consolidated view provided by the ct should be able to opt in into the mandatory inclusion scheme by notifying esma and the ctp of their intent.


### 1. trading venues shall suspend their use of the waivers referred to in article 4(1) , point (a) , and 4(1) , point (b)(i) where the percentage of volume traded in the union in a financial instrument carried out under those waivers exceeds 7% of the total volume traded in that financial instrument in the union. trading venues shall base their decision to suspend the use of those waivers on the data published by esma in accordance with paragraph 4 , and shall take such decision within two working days after this publication of those data and for a period of six months.; ### 1. trading venues and systematic internalisers shall suspend trading as referred to in paragraph 4(b) where the percentage of this volume traded in the union in a financial instrument exceeds the threshold determined by esma in accordance with paragraph 9. trading venues and systematic internalisers shall base their decision on the data published by esma in accordance with paragraph 4 , and shall take such decision within two working days after this publication of those data and for a period of six months.


### 4. esma shall publish within five working days of the end of each calendar month all of the following data: ### deleted


### paragraph 4 is replaced by the following: ### paragraph 4 is replaced by the following:


### 7. to ensure a reliable basis for monitoring the trading taking place under the waivers referred to in article 4(1) , point (a) , and article 4(1) , point (b)(i) and for determining whether the limits referred to in paragraph 1 have been exceeded , operators of trading venues shall have in place systems and procedures to enable the identification of all trades which have taken place on their venue under those waivers.; ### 7. 7. to ensure a reliable basis for monitoring the trading as referred to in paragraph 4(b) taking place under the waivers referred to in article 4(1) , point (a) , and article4(1) , point (b)(i) and for determining whether the limits referred to in paragraph 1 have been exceeded , operators of trading venues and systematic internalisers shall have in place systems and procedures to enable the identification of all trades referred to in paragraph 4(b) which have taken place on their execution venue.


### 2. this article and articles 15 , 16 and 17 shall apply to systematic internalisers when they deal in sizes up to twice the standard market size. systematic internalisers shall not be subject to this article and articles 15 , 16 and 17 when they deal in sizes above twice the standard market size. ### 2. this article and articles 15 , 16 and 17 shall apply to systematic internalisers when they deal in sizes up to the size determined by esma in accordance with paragraph 7. systematic internalisers shall not be subject to this article and articles 15 , 16 and 17 when they deal in sizes above twice the standard market size.


### 3. systematic internalisers are allowed to quote any size. the minimum quoting size shall be at least the equivalent of twice the standard market size of a share , depositary receipt , etf , certificate , or other financial instrument that is similar to those financial instruments and that is traded on a trading venue. for a particular share , depository receipt , etf , certificate or other financial instrument that is similar to those financial instruments and that is traded on a trading venue , each quote shall include a firm bid and offer price , or firm bid and offer prices for a size or sizes which could be up to twice the standard market size for the class of shares , depositary receipts , etfs , certificates or financial instruments that are similar to those financial instruments , to which the financial instrument belongs. the price or prices shall reflect the prevailing market conditions for that share , depositary receipt , etf , certificate or financial instrument that is similar to those financial instruments.; ### 3. systematic internalisers’ minimum quoting size shall be at least the equivalent for a share , depositary receipt , etf , certificate , or other financial instrument traded on a trading venue shall be the determined by esma in accordance with paragraph 7. for a particular share , depository receipt , etf , certificate or other financial instrument that is similar to those financial instruments and that is traded on a trading venue , each quote shall include a firm bid and offer price , or firm bid and offer prices for a size or sizes which could be up to twice the size determined by esma in accordance with paragraph 7 for the class of shares , depositary receipts , etfs , certificates or financial instruments that are similar to those financial instruments , to which the financial instrument belongs. the price or prices shall reflect the prevailing market conditions for that share , depositary receipt , etf , certificate or financial instrument that is similar to those financial instruments.’;


### article 15 execution of client orders ### (8 a) in article 15 , paragraph 1 is replaced by the following: