### the regulation requires the commission to carry out an impact assessment in order to review the test procedures to reflect adequately the real co2 emissions behaviour of cars . this work is proceeding through the development of a world light duty test procedure in the framework of the united nations economic commission for europe but is not yet complete . in view of this , annex i to regulation no 443 / 2009 establishes emission limits for 2020 as measured according to regulation no 715 / 2007 and annex xii to regulation no 692 / 2008 . when the test procedures are amended , the limits set in annex i should be adjusted to ensure comparable stringency for manufacturers and classes of vehicles . ### the regulation requires the commission to carry out an impact assessment in order to review the test procedures to reflect adequately the real co2 emissions behaviour of cars . this work is proceeding through the development of a world light duty test procedure in the framework of the united nations economic commission for europe , which should be integrated , after its completion , into union legislation . the commission should consider the need to supplement the wltp by additional provisions when integrating it into union law in order to ensure that test procedures reflect adequately the emissions generated by real driving on the road . in view of this , annex i to regulation no 443 / 2009 establishes emission limits for 2020 as measured according to regulation no 715 / 2007 and annex xii to regulation no 692 / 2008 . when the test procedures are amended , the limits set in annex i should be adjusted to ensure comparable stringency for manufacturers and classes of vehicles .


### this regulation should provide the criteria for the establishment of the specific compositional and information requirements for infant formula , follow - on formula , processed cereal - based food and baby food , and food for special medical purposes , taking into account commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec and commission directive 1999 / 21 / ec . in order to adapt the definitions of infant formula , follow - on formula , processed cereal - based food and baby food , and food for special medical purposes laid down in this regulation taking into account technical and scientific progress and relevant developments at international level , to lay down the specific compositional and information requirements with respect to the categories of food covered by this regulation , including for additional labelling requirements to , or derogations from , the provisions of directive 2000 / 13 / ec and for the authorisation of nutrition and health claims , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission . it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing - up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council . ### this regulation should provide the criteria for the establishment of the specific compositional and information requirements for infant formula , follow - on formula , processed cereal - based food and baby food , food for special medical purposes , and foods for people intolerant to gluten , taking into account commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , commission directive 1999 / 21 / ec , commission regulation no 41 / 2009 . in order to adapt the definitions of infant formula , follow - on formula , processed cereal - based food and baby food , food for special medical purposes , and foods for people intolerant to gluten laid down in this regulation taking into account technical and scientific progress and relevant developments at international level , to lay down the specific compositional and information requirements with respect to the categories of food covered by this regulation , including for additional labelling requirements to , or derogations from , the provisions of directive 2000 / 13 / ec and for the authorisation of nutrition and health claims , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission . it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing - up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council .


### this regulation should provide the criteria for the establishment of the specific compositional and information requirements for infant formula , follow - on formula , processed cereal - based food and baby food , and food for special medical purposes , taking into account commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec and commission directive 1999 / 21 / ec . in order to adapt the definitions of infant formula , follow - on formula , processed cereal - based food and baby food , and food for special medical purposes laid down in this regulation taking into account technical and scientific progress and relevant developments at international level , to lay down the specific compositional and information requirements with respect to the categories of food covered by this regulation , including for additional labelling requirements to , or derogations from , the provisions of directive 2000 / 13 / ec and for the authorisation of nutrition and health claims , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission . it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing - up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council . ### this regulation should provide the criteria for the establishment of the specific compositional and information requirements for infant formula , follow - on formula , processed cereal - based food and baby food , milk - based drinks for young children and food for special medical purposes , taking into account commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec and commission directive 1999 / 21 / ec . in order to adapt the definitions of infant formula , follow - on formula , processed cereal - based food and baby food , milk - based drinks for young children and food for special medical purposes laid down in this regulation taking into account technical and scientific progress and relevant developments at international level , to lay down the specific compositional and information requirements and the procedure for placing on the market foodstuffs resulting from scientific and technological innovations with respect to the categories of food covered by this regulation , including for additional labelling requirements to , or derogations from , the provisions of directive 2000 / 13 / ec and for the authorisation of nutrition and health claims , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission . it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing - up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council .


### the dissemination of any useful information or recommendations with reference to the categories of food referred to in article 1 may be made exclusively by persons having qualifications in medicine , nutrition , pharmacy or other professionals responsible for maternal and child health care . ### the dissemination of any useful information or recommendations with reference to the categories of food referred to in article 1 may be made exclusively by persons having qualifications in medicine , nutrition , pharmacy or other professionals responsible for maternal and child health care . such information shall not constitute advertising or promotional material .


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


### the financial and economic crisis has created real and serious risks to the stability of the internal market . restoring and maintaining a stable and reliable financial system is an absolute prerequisite to preserving trust and coherence in the internal market , hence to preserve and improve the conditions for the establishment of a fully integrated and functioning internal market in the field of financial services . moreover , deeper and more integrated financial markets offer better opportunities for financing and risk diversification , and thus help to improve the capacity of the economies to absorb shocks . ### the financial and economic crisis has created real and serious risks to the stability of the financial system and of the internal market . restoring and maintaining a stable and reliable financial system , at global and european levels , is an absolute prerequisite to preserving trust and coherence in the internal market , hence to preserve and improve the conditions for the establishment of a fully integrated and functioning internal market in the field of financial services . moreover , deeper and more integrated financial markets offer better opportunities for financing and risk diversification , and thus help to improve the capacity of the economies to absorb shocks .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european banking authority should be established , along with a european insurance and occupational pensions authority and a european securities and markets authority . ### the european system of financial supervision should be an integrated network of national and european supervisory authorities , leaving ordinary day - to - day supervision of financial institutions at the competent authorities of member states , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and consistent and coherent application of european rules and standards for financial institutions and markets across the european should also be achieved . a european supervisory authority on banking should be established , along with a european supervisory authority on insurance and occupational pensions and a european supervisory authority on securities and markets as well as a joint committee among them . the european systemic risk board , as european authority in macro supervision , completes the esfs . the authority shall evolve according to the best practices recognised at european and international level . one such approach could be the establishment of a new level of direct supervision by the authority . to avoid international distortions and to strengthen the european system of financial supervision , the introduction of direct supervision should be carefully evaluated and considered in order to add value to the supervision of large financial institutions , many of which are global in nature and operate in the eu . this applies above all to those large financial institutions with wholesale banking or other activities that could pose systemic risk to the internal market , and those systemic financial institutions defined and identified at an international level . this issue shall be further studied in the first revision of the present regulation , as set out in article 66 , which should take place not later than three years from its entry into force .


### the european banking authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to protect depositors and investors , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a community body having legal personality and it should have legal , administrative and financial autonomy . ### the authority should promote financial sustainability and a strong european financial market with a view to improving the functioning and competitiveness of the internal market on the basis of financial inclusion and a level playing field , preventing and correcting systemic and cross border risks and including a high , effective and consistent european level of regulation and supervision taking account of the varying interests of all member states ; to prevent regulatory arbitrage and guarantee a level playing field ; to protect depositors and investors and other stakeholders as well as public finances ; to ensure the integrity , efficiency , transparency and orderly functioning of financial markets and its sustainable interaction with real economy , to reduce the procyclicality of finance and safeguard the stability of the financial system , to foster a smooth implementation of monetary policy in the markets and ensuring the traceability of credit , to achieve the goals of the uem and to strengthen international supervisory coordination , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . its tasks also include promoting supervisory integration and convergence towards best practices and providing advice to the eu institutions in the areas of banking , payments , e - money regulation and supervision , and related corporate governance , auditing and financial reporting issues . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a european body having legal personality and it should have legal , administrative and financial autonomy .


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


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


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , a banking stakeholder group should be established for that purpose , representing in balanced proportions community credit and investment institutions , their employees , and consumers and other retail users of banking services , including smes . the banking stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , a banking stakeholder group should be established for that purpose , representing community credit and investment institutions , their employees , and consumers and other retail users of banking services , including smes . the banking stakeholder group shall be composed at least of 15 representatives from consumers and users , of 5 independent top - ranking academics and of 10 representatives from the sector and its employees . the banking stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation .


### member states have a core responsibility in preserving financial stability in crisis management , in particular with regard to stabilising and resolving individual ailing financial institutions . measures by the authority in emergency or settlement situations affecting the stability of a financial institution should not impinge on the fiscal responsibilities of member states . a mechanism should be established whereby member states may invoke this safeguard and ultimately bring the matter before the council for a decision . it is appropriate to confer on the council a role in this matter given the particular responsibilities of the member states in this respect . ### member states have a core responsibility in preserving financial stability in crisis management , in particular with regard to stabilising and resolving individual ailing financial institutions . measures by the authority in emergency situations affecting the stability of a financial institution should not impinge on the fiscal responsibilities of member states . a mechanism should be established whereby member states may invoke this safeguard .


### member states have a core responsibility in preserving financial stability in crisis management , in particular with regard to stabilising and resolving individual ailing financial institutions . measures by the authority in emergency or settlement situations affecting the stability of a financial institution should not impinge on the fiscal responsibilities of member states . a mechanism should be established whereby member states may invoke this safeguard and ultimately bring the matter before the council for a decision . it is appropriate to confer on the council a role in this matter given the particular responsibilities of the member states in this respect . ### member states have a core responsibility in preserving financial stability in crisis management , in particular with regard to stabilising and resolving individual ailing financial institutions . they shall act closely coordinated within the framework and the principles of the emu . measures by the authority in emergency or settlement situations affecting the stability of a financial institution should not impinge on the fiscal responsibilities of member states . a mechanism should be established whereby member states may invoke this safeguard and ultimately bring the matter before the council for a decision . it is appropriate to confer on the council a role in this matter given the particular responsibilities of the member states in this respect .


### a full time chairperson , selected by the board of supervisors through an open competition , should represent the authority . the management of the authority should be entrusted to an executive director , who should have the right to participate in meetings of the board of supervisors and the management board without the right to vote . ### a full time chairperson , selected by the european parliament following an open competition managed by the commission and the subsequent drawing up of a short list for the commission , should represent the authority . the management of the authority should be entrusted to an executive director , who should have the right to participate in meetings of the board of supervisors and the management board without the right to vote .


### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely in a joint committee of european supervisory authorities and reach common positions where appropriate . the joint committee of european supervisory authorities should assume all of the functions of the joint committee on financial conglomerates . where relevant , acts also falling within the area of competence of the european insurance and occupational pensions authority or the european securities and markets authority should be adopted in parallel by the european supervisory authorities concerned . ### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely through the european supervisory authorities and reach common positions where appropriate . the joint consultative committee should coordinate the functions of the three european supervisory authorities in relation to financial conglomerates . where relevant , acts also falling within the area of competence of the european supervisory authority or the european supervisory authority should be adopted in parallel by the european supervisory authorities concerned . the joint consultative committee will be chaired on a yearly revolving basis by the chairpersons of the three european supervisory authorities . the chairperson of the joint consultative committee should be a vice - chair of the european systemic risk board . the joint consultative committee will have a permanent secretariat , staffed on secondment from the three european supervisory authorities , to allow for informal information sharing and the development of a common cultural approach across the three european supervisory authorities .


### in order to guarantee its full autonomy and independence , the authority should be granted an autonomous budget with revenues mainly from obligatory contributions from national supervisory authorities and from the general budget of the european union . the community budgetary procedure should be applicable as far as the community contribution is concerned . the auditing of accounts should be undertaken by the court of auditors . ### in order to guarantee its full autonomy and independence , the authority should be granted an autonomous budget with revenues mainly from obligatory contributions from national supervisory authorities and from the general budget of the european union . union financing of the authority is subject to an agreement by the budgetary authority in accordance with point 47 of the interinstitutional agreement between the european parliament , the council and the commission of 17 may 2006 on budgetary discipline and sound financial management1 . the union budgetary procedure should be applicable . the auditing of accounts should be undertaken by the court of auditors . the overall budget is subject to the discharge procedure . 1 oj c 139 , 14 . 6 . 2006 , p . 1 .


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


### the provisions of this regulation are without prejudice to the powers of the commission , in particular under article 226 of the treaty to ensure compliance with community law . ### the provisions of this regulation are without prejudice to the powers of the commission , in particular under article 258 of the treaty on the functioning of the european union to ensure compliance with eu law .


### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission . ### the authority shall promote financial sustainability and a strong european financial market with the objective of contributing to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission .


### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission . ### the objective of the authority shall be to contribute to : improving the functioning and competitiveness of the internal market on the basis of financial inclusion and a level playing field , preventing and correcting systemic and cross - border risk , and , including in particular a high , effective , consistent and european level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission .


### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission . ### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , preventing regulatory arbitrage and undue competition between member states in rigidity of supervision and enforcement of regulation , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission .


### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission . ### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors and other stakeholders as well as public finances , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission .


### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission . ### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , transparency , efficiency and orderly functioning of financial markets and its sustainable interaction with real economy , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission .


### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission . ### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , reducing the procyclicality of finance and , in general , safeguarding the short - , medium - and long - term stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission .


### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission . ### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective harmonisation and application of the european union law referred to in article 1 above , fostering supervisory integration and convergence and providing opinions to the european parliament , the council , and the commission , and undertaking economic analyses of markets to promote the achievement of the authority’s objectives .


### ' competent authorities ' means competent authorities as defined in directives 2006 / 48 / ec and 2006 / 49 / ec and , where deposit guarantee schemes are concerned , bodies which administer deposit - guarantee schemes pursuant to directive 94 / 19 / ec . ### ' competent authorities ' means competent authorities for credit and financial institutions as defined in directives 2006 / 48 / ec , 2006 / 49 / ec , 2007 / 64 / ec , 2009 / 110 / ec , 2002 / 65 / ec , 2005 / 60 / ec , and , where deposit guarantee schemes are concerned , public bodies which administer deposit guarantee schemes or , when administered by a private company , the public authority supervising the scheme , pursuant to directive 94 / 19 / ec .


### the authority shall be a community body with legal personality . ### the authority shall be a european union body with legal personality .


### contribute to the establishment of high quality common regulatory and supervisory standards and practices , in particular by providing opinions to the community institutions and by developing guidelines , recommendations , and draft technical standards which shall be based on the legislation referred to in article 1 ; ### contribute to the establishment of high - quality common regulatory and supervisory standards and practices , in particular by providing opinions to the european union institutions and by developing guidelines , recommendations , and draft technical standards which shall be based on the present regulation and the legislation referred to in article 1 ;


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


### fulfil any other specific tasks set out in this regulation or in the community legislation referred to in article 1 . ### fulfil any other specific tasks set out in this regulation or in the european union legislation referred to in article 1 .


### take individual decisions addressed to competent authorities in the specific cases referred to in article 10 and 11 ; ### take individual or collective decisions addressed to competent authorities in the specific cases referred to in articles 10 and 11 ;


### technical standards ### the single rule book


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


### within three months of receipt of the draft standards , the commission shall decide whether to endorse the draft standards . the commission may extend that period by one month . the commission may endorse the draft standards only in part or with amendments where the community interest so requires . ### within three months of receipt of the draft standards , the commission shall decide whether to endorse , partially endorse or reject the draft standards . the commission may extend that period by one month . the commission shall inform the european parliament and the council of its decision , stating the reasons .


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


### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to competent authorities or financial institutions . ### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to competent authorities or financial institutions . on matters where the authority is empowered by legislation to develop technical standards according to article 7 of the present regulation , it shall issue guidelines and recommendations only after the standards have been adopted .


### without prejudice to the powers laid down in article 9 , where a competent authority disagrees on the procedure or content of an action or inaction by another competent authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by competent authorities from more than one member state , the authority , at the request of one or more of the competent authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 . ### without prejudice to the powers laid down in article 9 , where a national supervisory authority disagrees on the procedure or content of an action or inaction by another national supervisory authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by national supervisory authorities from more than one member state , and does not assign the ultimate responsibility to the group supervisor , the authority , on its own initiative or at the request of one or more of the national supervisory authorities concerned , may take the lead in assisting the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 .


### the authority shall facilitate the delegation of tasks and responsibilities between competent authorities by identifying those tasks and responsibilities that can be delegated or jointly exercised and by promoting best practices . ### the authority shall facilitate the delegation of tasks and responsibilities between competent authorities by identifying those tasks and responsibilities that can be delegated or jointly exercised , by promoting best practices and by preparing appropriate multilateral frameworks .


### the authority shall facilitate the delegation of tasks and responsibilities between competent authorities by identifying those tasks and responsibilities that can be delegated or jointly exercised and by promoting best practices . ### the authority shall stimulate and facilitate the delegation of tasks and responsibilities between competent authorities by identifying those tasks and responsibilities that can be delegated or jointly exercised and by promoting best practices .


### the authority shall play an active role in building a common european supervisory culture and consistent supervisory practices , and ensuring uniform procedures and consistent approaches throughout the community and shall carry out , at a minimum , the following activities : ### the authority shall play an active role in building a common european supervisory culture and consistent supervisory practices , and ensuring uniform procedures and consistent approaches throughout the european union and shall carry out , at a minimum , the following activities :


### contribute to developing high quality and uniform supervisory standards , including reporting standards ; ### contribute advice to the appropriate european and international bodies to help facilitate the development of high quality and uniform supervisory standards , including reporting and accounting standards ;


### the authority shall periodically conduct peer review analyses of some or all of the activities of competent authorities , to further enhance consistency in supervisory outcomes . to this end , the authority shall develop methods to allow for objective assessment and comparison between the authorities reviewed . ### the authority shall periodically organise and conduct peer review analyses of some or all of the activities of competent authorities , to further enhance consistency in supervisory outcomes . to this end , the authority shall develop methods to allow for objective assessment and comparison between the authorities reviewed .


### the adequacy of institutional arrangements , resourcing and staff expertise of the competent authority , with particular regard to the effective application of the legislation referred to in article 1 and to the capacity to respond to market developments ; ### the adequacy of resources and governance arrangements of the competent authority , with particular regard to the effective application of the standards and legislation referred to in article 1 and to the capacity to respond to market developments


### the degree of convergence reached in the application of community law and in supervisory practice , including technical standards , guidelines and recommendations adopted under articles 7 and 8 , and the extent to which the supervisory practice achieves the objectives set out in community law ; ### the degree of convergence reached in the application of european union law and in supervisory practice , including regulatory and supervisory standards , guidelines and recommendations adopted under articles 7 and 8 , and the extent to which the supervisory practice achieves the objectives set out in european union law ;


### on the basis of the peer review the authority may issue recommendations to the competent authorities concerned . ### on the basis of the peer review the authority may issue guidelines and recommendations to the national supervisory authorities concerned .


### the authority shall ensure an adequate coverage of cross - sectoral developments , risks and vulnerabilities by closely cooperating with the european insurance and occupational pensions authority and the european securities and markets authority . ### the authority shall ensure an adequate coverage of cross - sectoral developments , risks and vulnerabilities by closely cooperating with the european supervisory authority and the european supervisory authority through the european supervisory authority .


### the european banking authority shall co - operate with the esrb . ### the european banking authority shall co - operate closely with the esrb .


### the banking stakeholder group shall adopt its rules of procedure ### the banking stakeholder group shall adopt its rules of procedure on the basis of the agreement of a two - thirds majority of members .


### the authority shall ensure that no decision adopted under articles 10 or 11 impinges in any way on the fiscal responsibilities of member states . ### the authority shall ensure that the banking system internalise , with a cyclical perspective , its costs and that no decision adopted under articles 10 or 11 impinges in any direct way on the fiscal responsibilities of member states .


### for the purposes of article 11 , the board of supervisors shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the competent authorities which are parties to the disagreement . ### for the purposes of article 11 , the chairperson shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the competent authorities which are parties to the disagreement .


### it shall meet at least bi - annually in ordinary session . ### it shall meet at least preceding every board of supervisors meeting and as often as it deems necessary .


### the chairperson shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure . ### the chairperson and the vice - chair shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure .


### the executive director shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation and managerial experience , following an open selection procedure . ### the executive director shall be appointed by the board of supervisors on a proposal of the management board on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation and managerial experience , following an open selection procedure .


### the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence . ### in the absence of the chairperson and the vice - chair , the board of supervisors shall also elect from among its members a temporary substitute who shall carry out the functions of the chairperson or the vice - chair in their absence .


### a joint committee of the european supervisory authorities is hereby established . ### the european supervisory authority is hereby established and shall have its headquarters in brussels .


### the joint committee shall serve as a forum in which the authority shall cooperate regularly and closely and ensure cross - sectoral consistency with the european insurance and occupational pensions authority and the european securities and markets authority . ### the joint committee shall serve as overarching structure of the esfs in which the authority shall cooperate regularly and closely and ensure cross - sectoral consistency with the european insurance and occupational pensions authority and the european securities and markets authority .


### the authority shall contribute adequate resources to the administrative support of the joint committee of european supervisory authorities . this includes staff , administrative , infrastructure , and operational expenses . ### the joint committee shall have a permanent secretariat , staffed on secondment from the three european supervisory authorities . the authority shall contribute adequate resources to administrative , infrastructure , and operational expenses .


### the joint committee shall be composed of the chairperson and the chairpersons of the european insurance and occupational pensions authority and the european securities and markets authority , and , where applicable , the chairperson of a sub - committee established under article 43 . ### the joint committee shall have a board composed of the chairpersons of the european supervisory authorities and , where applicable , the chairperson of a sub - committee established under article 43 .


### the executive director , the commission and the esrb shall be invited to the meetings of the joint committee of european supervisory authorities as well as the sub - committees mentioned in article 43 as observers . ### the executive director , a representative of the commission and the esrb shall be invited to the meetings of the board of the joint committee of european supervisory authorities as well as the sub - committees mentioned in article 43 as observers .


### the decisions of the board of appeal shall be adopted on the basis of a majority of at least four of its six members . ### the decisions of the board of appeal shall be adopted on the basis of a simple majority vote , with a casting vote for the president .


### two members of the board of appeal and two alternates shall be appointed by the management board of the authority from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors . ### the members of the board of appeal and two alternates shall be appointed , after consultation with the authorities ' management boards , as follows : . – two members and two alternates by the council , – two members and two alternates by the commission , – two members and two alternates by the european parliament .


### the authority , the european insurance and occupational pensions authority and the european securities and markets authority shall ensure adequate operational and secretarial support for the board of appeal . ### the authority , the european supervisory authority and the european supervisory authority shall ensure adequate operational and secretarial support for the board of appeal through the joint committee .


### a subsidy from the community , entered in the general budget of the european union ; ### a subsidy from the union , entered in the general budget of the european union , subject to an agreement by the budgetary authority as foreseen in point 47 of the provided for by point 47 of the iia ;


### the european parliament , following a recommendation from the council acting by qualified majority , shall , before 15 may of the year n + 2 , grant a discharge to the authority for the implementation of the budget for the financial year n . ### the european parliament , following a recommendation from the council acting by qualified majority , shall , before 15 may of the year n + 2 , grant a discharge to the authority for the implementation of the budget comprising revenue from the general budget of the european union and national supervisory authorities for the financial year n .


### the management board , in agreement with the commission , shall adopt the necessary implementing measures , in accordance with the arrangements provided for in article 110 of the staff regulations . ### the management board , in agreement with the commission , shall adopt the necessary implementing measures , in accordance with the arrangements provided for in article 110 of the staff regulations . the implementing measures shall allow justified deviations in order to guarantee the most effective implementation of the tasks identified for the authority .


### members of the board of supervisors and the management board , the executive director , and members of the staff of the authority including officials seconded by member states on a temporary basis shall be subject to the requirements of professional secrecy pursuant to article 287 of the treaty and the relevant provisions in the relevant community legislation , even after their duties have ceased . ### members of the board of supervisors and the management board , the executive director , and members of the staff of the authority including officials seconded by member states on a temporary basis and all other persons carrying out tasks for the authority on a contractual basis shall be subject to the requirements of professional secrecy pursuant to article 339 of the treaty on the functioning of the european union and the relevant provisions in the relevant european union legislation , even after their duties have ceased .


### behaviour which undermines the integrity of the energy market is currently not clearly prohibited on some of the most important energy markets . ### in order to protect final consumers and guarantee affordable energy prices for european citizens , it is essential to prohibit behaviour which undermines the integrity of the energy market .


### specification of the definitions of inside information and market manipulation is necessary to account for the specificities of wholesale energy markets , which are dynamic and subject to change . the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect to such detailed rules . ### specification of the definitions of inside information and market manipulation is necessary to account for the specificities of wholesale energy markets , which are dynamic and subject to change . on the basis of clear definitions set out in this regulation , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty in respect to the detailed rules . whenever the commission is willing to adopt delegated acts , it is of particular importance , that the commission carry out appropriate consultations during its preparatory work , including the agency , energy market operators , national regulatory authorities and the european securities and markets authority . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council and ensure that the european parliament and the council are closely involved in the preparatory phase , notably by being invited to take part at the expert meetings .


### in order to ensure the necessary flexibility in collecting information on transactions in wholesale energy products , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty setting out the timing , form and content of the information which market participant are required to provide . reporting obligations should not create unnecessary costs for market participants . persons reporting transactions to a competent authority in accordance with the provisions of directive 2004 / 39 / ec of the european parliament and of the council of 21 april 2004 on markets in financial instruments , and to trade repositories and competent authorities in accordance with the provisions of regulation . . / . . of the european parliament and the council on otc derivatives , central counterparties and trade repositories should therefore not be subject to additional reporting obligations under this regulation . ### in order to ensure the necessary flexibility in collecting information on transactions in wholesale energy products , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty setting out the timing , form and content of the information which market participant are required to provide . reporting obligations should not create avoidable costs for market participants . persons reporting transactions to a competent authority in accordance with the provisions of directive 2004 / 39 / ec of the european parliament and of the council of 21 april 2004 on markets in financial instruments , and to trade repositories and competent authorities in accordance with the provisions of regulation . . / . . of the european parliament and the council on otc derivatives , central counterparties and trade repositories should therefore not be subject to additional reporting obligations under this regulation .


### where information is not commercially sensitive , the agency should be able to make that information available to market participants and the wider public . such transparency can help build confidence in the market and help the development of knowledge about the functioning of wholesale energy markets . ### where information is not commercially sensitive , the agency should be able to make that information available to market participants and the wider public . such transparency can help build confidence in the market and help the development of knowledge about the functioning of wholesale energy markets . in order to ensure greater transparency and public access to information on wholesale energy prices , the agency should prepare monthly country - by - country reports on price developments in energy wholesale markets .


### where information is not commercially sensitive , the agency should be able to make that information available to market participants and the wider public . such transparency can help build confidence in the market and help the development of knowledge about the functioning of wholesale energy markets . ### availability of price information is a vital pre - condition for transparency . such transparency can help build confidence in the market and help the development of knowledge about the functioning of wholesale energy markets .


### national regulatory authorities should be responsible for ensuring that this regulation is enforced in the member states . to this end they should have the necessary investigatory powers to allow them to carry out this task efficiently . ### national regulatory authorities should have a duty to enforce this regulation in the member states . to this end they should have the necessary investigatory powers to allow them to carry out this task efficiently .


### national regulatory authorities should be responsible for ensuring that this regulation is enforced in the member states . to this end they should have the necessary investigatory powers to allow them to carry out this task efficiently . ### national regulatory authorities should be responsible for ensuring that this regulation is implemented in the member states and its implementation monitored . to this end they should have the necessary investigatory and supervisory powers to allow them to carry out this task efficiently .


### it is important that the penalties for breaches of this regulation are proportionate and dissuasive , and reflect the gravity of the infringements and the potential gains from trading on the basis of inside information and market manipulation . recognising the interactions between trading in electricity and gas derivative products and trading in actual electricity and gas , the penalties for breaches of this regulation should be in line with the penalties adopted by the member states in implementing directive 2003 / 6 / ec . ### it is important to establish a harmonised system of penalties and common minimum standards in this field . the penalties for breaches of this regulation must be proportionate and dissuasive , and reflect the gravity of the infringements and the potential gains from trading on the basis of inside information and market manipulation . recognising the interactions between trading in electricity and gas derivative products and trading in actual electricity and gas , the penalties for breaches of this regulation should be in line with the penalties adopted by the member states in implementing directive 2003 / 6 / ec .


### for the purposes of applying the first subparagraph , information a reasonable market participant would be likely to use as part of the basis of his decision to enter into a transaction relating to a wholesale energy product is information which , if it were made public , would be likely to have a significant effect on the prices of such wholesale energy products . such information includes information related to the capacity of facilities for production , storage , consumption or transmission of electricity or natural gas , as well as information which is required to be disclosed in accordance with legal or regulatory provisions at union or national level , market rules , and contracts or customs on the relevant wholesale energy market . ### for the purposes of applying the first subparagraph , information a reasonable market participant would be likely to use as part of the basis of his decision to enter into a transaction relating to a wholesale energy product is information which , if it were made public , would be likely to have a significant effect on the prices of such wholesale energy products . this is information , including information related to the capacity of facilities for production , storage , consumption , transmission of electricity or natural gas and related to the capacity of lng facilities which a reasonable market participant would be likely to use as part of the basis of his decision to enter into a transaction relating to a wholesale energy product , and which is required to be made public in accordance with regulation no 714 / 2009 and regulation no 715 / 2009 , including guidelines and network codes adopted pursuant to those regulations , or in accordance with legal or regulatory provisions at union or national level , market rules , and contracts or customs on the relevant wholesale energy market , and could significantly affect the prices of such wholesale products .


### by way of example , making it appear that the availability of electricity generation capacity or gas availability , or the availability of transmission capacity is other that the capacity which is actually physically available constitutes market manipulation . ### making it appear that the availability of electricity generation capacity or gas availability , or the availability of transmission capacity is other than the capacity which is actually physically available – inter alia by booking infrastructure for energy transport operators , which the operator in question does not intend to use – constitutes market manipulation .


### market participants shall publicly disclose inside information in respect of business or facilities which the participant concerned owns or controls or for which the participant is responsible for operational matters , either in whole or in part . such information shall include information relevant to the capacity of facilities for production , storage , consumption or transmission of electricity or natural gas . ### market participants shall publicly , effectively and in a timely manner disclose inside information in respect of business or facilities which the participant concerned , or parent undertaking or related undertaking , owns or controls or for which the participant , or its parent undertaking or related undertaking , is responsible for operational matters , either in whole or in part . such disclosure shall include information relevant to the capacity and utilisation of facilities for production , storage , consumption or transmission of electricity or natural gas or related to the capacity and utilisation of lng facilities , including planned or unplanned unavailability of these facilities .


### in order to take account of future developments on wholesale energy markets , the commission shall adopt delegated acts in accordance with article 15 and subject to conditions of articles 16 an 17 , specifying the definitions set out at article 2 to . ### in order to take account of future developments on wholesale energy markets , the commission shall adopt delegated acts , within 30 days of the entry into force of this regulation , in accordance with article 15 and subject to conditions of articles 16 and 17 , specifying the definitions set out at article 2 to .


### the agency shall be provided with a record of wholesale energy market transactions , including orders to trade . the commission shall adopt delegated acts in accordance with article 15 and subject to conditions of articles 16 and 17 , laying down the timing , form and content in which this information is reported and , where appropriate , defining thresholds for the reporting of transactions as well as specifying types of contracts for which transactions shall be reported . ### the agency shall be provided with an access right to wholesale energy market transactions , including orders to trade .


### where relevant , the agency will comply with regulation no 45 / 2001 of the european parliament and of the council of 18 december 2000 on the protection of individuals with regard to the processing of personal data by the community institutions and bodies and on the free movement of such data . ### the agency will comply with regulation no 45 / 2001 of the european parliament and of the council of 18 december 2000 on the protection of individuals with regard to the processing of personal data by the community institutions and bodies and on the free movement of such data .


### national regulatory authorities shall ensure that the prohibitions set out in articles 3 and 4 are applied . ### national regulatory authorities shall have a duty to ensure that the prohibitions set out in articles 3 and 4 are applied .


### each member state shall ensure that national regulatory authorities have the investigatory powers necessary for the exercise of this function . these powers shall be exercised in a proportionate manner . these powers may be exercised : ### each member state shall ensure that national regulatory authorities have the investigatory powers necessary for the immediate exercise of this function . these powers shall be exercised in a proportionate manner . these powers may be exercised :


### where a national regulatory authority suspects that acts which affect wholesale energy markets or the price of wholesale energy products in that member state are being carried out in another member state , it may request the agency to take measures in accordance with paragraph 4 . ### where a national regulatory authority suspects , or initial assessments and analysis by the agency suggest that acts which affect wholesale energy markets or the price of wholesale energy products in that member state are being carried out in another member state , the national regulatory authority shall request the agency to take measures in accordance with paragraph 4 .


### the member states shall lay down the rules on penalties applicable to infringements of the provisions of this regulation and shall take all measures necessary to ensure that they are implemented . the penalties provided for must be effective , proportionate and dissuasive . the member states shall notify those provisions to the commission by . . . at the latest and shall notify it without delay of any subsequent amendment affecting them . ### the member states shall lay down the rules on penalties applicable to infringements of the provisions of this regulation and shall take all measures necessary to ensure that they are implemented . the penalties provided for must be effective , proportionate and dissuasive . they shall reflect the gravity of the infringements and shall considerably exceed the real or potential gains from illegal operations . the member states shall notify those provisions to the commission by . . . at the latest and shall notify it without delay of any subsequent amendment affecting them . after all member states have notified to the commission their rules on penalties applicable to infringements of this regulation , the commission shall once every three years review the effectiveness of national systems of penalties and evaluate the necessity of proposing minimum standards for penalties , with the aim of bringing about a harmonised system of penalties throughout the european union . the commission shall inform the european parliament and the council of the results of that evaluation .


### the member states shall lay down the rules on penalties applicable to infringements of the provisions of this regulation and shall take all measures necessary to ensure that they are implemented . the penalties provided for must be effective , proportionate and dissuasive . the member states shall notify those provisions to the commission by . . . at the latest and shall notify it without delay of any subsequent amendment affecting them . ### the member states shall lay down the rules on penalties applicable to infringements of the provisions of this regulation and shall take all measures necessary to ensure that they are implemented . the penalties provided for must be effective , proportionate and dissuasive . they shall reflect the gravity of the infringements and shall considerably exceed the real or potential gains from illegal operations . in close cooperation with the agency and the commission , the member states should agree on minimum standards for penalties and coordinate their sanction system . the member states shall notify those provisions to the commission by . . . at the latest and shall notify it without delay of any subsequent amendment affecting them .


### the member states shall lay down the rules on penalties applicable to infringements of the provisions of this regulation and shall take all measures necessary to ensure that they are implemented . the penalties provided for must be effective , proportionate and dissuasive . the member states shall notify those provisions to the commission by . . . at the latest and shall notify it without delay of any subsequent amendment affecting them . ### the member states shall lay down the rules on penalties applicable to infringements of the provisions of this regulation and shall take all measures necessary to ensure that they are implemented . the penalties provided for must be effective , proportionate and dissuasive . they must reflect the gravity of the infringements and must considerably exceed the real or potential gains from illegal operations . the member states shall notify those provisions to the commission by . . . at the latest and shall notify it without delay of any subsequent amendment affecting them .


### the member states shall lay down the rules on penalties applicable to infringements of the provisions of this regulation and shall take all measures necessary to ensure that they are implemented . the penalties provided for must be effective , proportionate and dissuasive . the member states shall notify those provisions to the commission by22 . . . at the latest and shall notify it without delay of any subsequent amendment affecting them . ### the commission shall lay down the standards for the application of penalties and ensure a harmonized system for the application of penalties in case of infringements of the provisions of this regulation . the member states shall take all measures necessary to ensure implementation of the standards laid down . the penalties provided for must be effective , proportionate and dissuasive . the member states shall notify those provisions to the commission by22 . . . at the latest and shall notify it without delay of any subsequent amendment affecting them .


### the institution which has commenced an internal procedure for deciding whether to revoke the delegation of powers shall inform the other institution and the commission within a reasonable time before the final decision is taken , indicating the delegated powers which could be subject to revocation and possible reasons for a revocation . ### the institution which has commenced an internal procedure for deciding whether to revoke the delegation of powers shall inform the other institution and the commission within a reasonable time before the final decision is taken , indicating the delegated powers which could be subject to revocation .


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


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


### the union is founded on the values of democracy , the rule of law , the universality and indivisibility of and respect for human rights and fundamental freedoms , respect for human dignity , the principles of equality and solidarity and respect for the principles of the un charter and international law . it seeks to develop and consolidate commitment to these values in partner countries and regions through dialogue and cooperation . ### the union ' s action on the international scene should be guided by the principles which have inspired its own creation , development and enlargement , and which it seeks to advance in the wider world : democracy , the rule of law , the universality and indivisibility of and respect for human rights and fundamental freedoms , respect for human dignity , the principles of equality and solidarity and respect for the principles of the un charter and international law . it seeks to develop and consolidate commitment to these principles in partner countries and regions through dialogue and cooperation . while pursuing those principles , the union , expressing the combined commitment and ambitions of the member states and thereby ensuring its unique political weight , proves its added value as an actor in development policies .


### union assistance should focus where it has more impact , having regard to its capacity to act on a global scale and respond to global challenges such as poverty eradication , sustainable and inclusive development and worldwide promotion of democracy , good governance , human rights and the rule of law , its long - term and predictable commitment to development assistance and its role in coordinating with its member states . to ensure such impact , the principle of differentiation should be applied not only at the level of funds allocation , but also at the level of programming , to ensure that bilateral development cooperation targets partner countries most in need , including fragile states and states with high vulnerability , and with limited capacity to have access to other sources of financing for supporting their own development , having regard to the potential impact of the union assistance in partner countries . as a consequence , bilateral programming would target such countries , pursuant to the application of objective criteria based on the needs and capacities of these countries , as well as the impact of eu assistance . ### union assistance should focus where it has more impact , having regard to its capacity to act on a global scale and respond to global challenges such as poverty eradication , sustainable and inclusive development , conservation of the environment , climate change mitigation and adaptation , worldwide promotion of democracy , good governance , human rights and the rule of law , its long - term and predictable commitment to development assistance and its role in coordinating with its member states . to ensure such impact , the principle of differentiation should be applied not only at the level of funds allocation , but also at the level of programming , to ensure that bilateral development cooperation targets partner countries most in need , including fragile states and states with high vulnerability , and with limited capacity to have access to other sources of financing for supporting their own development , having regard to the potential impact of the union assistance in partner countries . as a consequence , bilateral programming would target such countries , pursuant to the application of objective criteria based on the needs and capacities of these countries , as well as the impact of eu assistance . to ensure the greatest impact of union assistance in the world , the implementation of this regulation should be strictly coordinated with programmes and actions funded under other regulations establishing external financing instruments , namely regulation no [ … / … ] of the european parliament and of the council establishing an instrument for stability and regulation no [ … / … ] of the european parliament and of the council establishing a financing instrument for the promotion of democracy and human rights worldwide and regulation no [ . . . / . . . ] of the european parliament and of the council establishing a partnership instrument for cooperation with third countries . .


### union assistance should focus where it has more impact , having regard to its capacity to act on a global scale and respond to global challenges such as poverty eradication , sustainable and inclusive development and worldwide promotion of democracy , good governance , human rights and the rule of law , its long - term and predictable commitment to development assistance and its role in coordinating with its member states . to ensure such impact , the principle of differentiation should be applied not only at the level of funds allocation , but also at the level of programming , to ensure that bilateral development cooperation targets partner countries most in need , including fragile states and states with high vulnerability , and with limited capacity to have access to other sources of financing for supporting their own development , having regard to the potential impact of the union assistance in partner countries . as a consequence , bilateral programming would target such countries , pursuant to the application of objective criteria based on the needs and capacities of these countries , as well as the impact of eu assistance . ### in the context of the overarching objective of the union ' s development cooperation to contribute to poverty eradication , union assistance should focus where it has more impact , having regard to its capacity to act on a global scale and respond to global challenges . in particular , the union ' s added value results from its capacity and its own experience in supporting sustainable and inclusive development , promoting democracy , good governance , human rights and the rule of law worldwide , its long - term and predictable commitment to development assistance and its role in promoting the coordination with its member states , as enshrined in article 210 tfeu . to ensure such impact , the principle of differentiation should be applied not only at the level of funds allocation , but also at the level of programming , to ensure that the union ' s development cooperation targets partner countries most in need , including fragile states and states with high vulnerability , and with limited capacity to have access to other sources of financing for supporting their own development , having regard to the potential impact of the union assistance in partner countries . as a consequence , country - specific programming would target such countries , pursuant to the application of objective criteria based on the needs and capacities of these countries , as well as the impact of the assistance of the union and its member states . for countries no longer eligible for country - specific geographical programmes , it should be possible to phase out assistance through a gradual approach , and paying special attention to the needs of particularly vulnerable population groups . the union should establish a strong political dialogue with these partner countries on its possible contribution to the establishment of national policies aiming at poverty reduction . due to its strategic importance , in this political dialogue , the union and these partner countries , especially middle income countries , should consider the development of triangular cooperation strategies , aiming at increasing our impact on eradicating poverty in developing countries .


### union assistance should focus where it has more impact , having regard to its capacity to act on a global scale and respond to global challenges such as poverty eradication , sustainable and inclusive development and worldwide promotion of democracy , good governance , human rights and the rule of law , its long - term and predictable commitment to development assistance and its role in coordinating with its member states . to ensure such impact , the principle of differentiation should be applied not only at the level of funds allocation , but also at the level of programming , to ensure that bilateral development cooperation targets partner countries most in need , including fragile states and states with high vulnerability , and with limited capacity to have access to other sources of financing for supporting their own development , having regard to the potential impact of the union assistance in partner countries . as a consequence , bilateral programming would target such countries , pursuant to the application of objective criteria based on the needs and capacities of these countries , as well as the impact of eu assistance . ### in the context of the overarching objective of the union ' s development cooperation to contribute to poverty eradication , union assistance should focus where it has more impact , having regard to its capacity to act on a global scale and respond to global challenges . in particular , the union ' s added value results from its capacity and its own experience in supporting sustainable and inclusive development , promoting democracy , good governance , human rights and the rule of law , advanced labour rights standards and fair and sustainable trade worldwide , its long - term and predictable commitment to development assistance and its role in promoting the coordination with its member states , as enshrined in article 210 tfeu . to ensure such impact , the principle of differentiation should be applied not only at the level of funds allocation , but also at the level of programming , to ensure that the union ' s development cooperation targets partner countries most in need , including fragile states and states with high vulnerability , and with limited capacity to have access to other sources of financing for supporting their own development , having regard to the potential impact of the union assistance in partner countries . as a consequence , country - specific programming would target such countries , pursuant to the application of objective criteria based on the needs and capacities of these countries , as well as the impact of the assistance of the union and its member states . for countries no longer eligible for country - specific geographical programmes , it should be possible to phase out assistance through a gradual approach , and paying special attention to the needs of particularly vulnerable population groups . the union should establish a strong political dialogue with these partner countries on its possible contribution to the establishment of national policies aiming at poverty reduction .


### union assistance should focus where it has more impact , having regard to its capacity to act on a global scale and respond to global challenges such as poverty eradication , sustainable and inclusive development and worldwide promotion of democracy , good governance , human rights and the rule of law , its long - term and predictable commitment to development assistance and its role in coordinating with its member states . to ensure such impact , the principle of differentiation should be applied not only at the level of funds allocation , but also at the level of programming , to ensure that bilateral development cooperation targets partner countries most in need , including fragile states and states with high vulnerability , and with limited capacity to have access to other sources of financing for supporting their own development , having regard to the potential impact of the union assistance in partner countries . as a consequence , bilateral programming would target such countries , pursuant to the application of objective criteria based on the needs and capacities of these countries , as well as the impact of eu assistance . ### in the context of the overarching objective of the union ' s development cooperation to contribute to poverty eradication , union assistance should focus where it has more impact , having regard to its capacity to act on a global scale and respond to global challenges . in particular , the union ' s added value results from its capacity and its own experience in supporting sustainable and inclusive development , promoting democracy , good governance , human rights and the rule of law worldwide , its long - term and predictable commitment to development assistance and its role in promoting the coordination with its member states , as enshrined in article 210 tfeu . to ensure such impact , the principle of differentiation should be applied not only at the level of funds allocation , but also at the level of programming , to ensure that the union ' s development cooperation targets partner countries most in need , including fragile states and states with high vulnerability , and with limited capacity to have access to other sources of financing for supporting their own development , having regard to the potential impact of the union assistance in partner countries . as a consequence , country - specific programming would target such countries , pursuant to the application of objective criteria based on the needs and capacities of these countries , as well as the impact of the assistance of the union and its member states . for countries no longer eligible for country - specific geographical programmes , it should be possible , in duly justified exceptional cases , to phase out assistance through a gradual approach and paying special attention to the needs of particularly vulnerable population groups . the union should establish a strong political dialogue with these partner countries on its possible contribution to the establishment of national policies aiming at poverty reduction .


### union assistance should focus where it has more impact , having regard to its capacity to act on a global scale and respond to global challenges such as poverty eradication , sustainable and inclusive development and worldwide promotion of democracy , good governance , human rights and the rule of law , its long - term and predictable commitment to development assistance and its role in coordinating with its member states . to ensure such impact , the principle of differentiation should be applied not only at the level of funds allocation , but also at the level of programming , to ensure that bilateral development cooperation targets partner countries most in need , including fragile states and states with high vulnerability , and with limited capacity to have access to other sources of financing for supporting their own development , having regard to the potential impact of the union assistance in partner countries . as a consequence , bilateral programming would target such countries , pursuant to the application of objective criteria based on the needs and capacities of these countries , as well as the impact of eu assistance . ### in the context of the overarching objective of the union ' s development cooperation to contribute to poverty eradication , union assistance should focus where it has more impact , having regard to its capacity to act on a global scale and respond to global challenges . in particular , the union ' s added value results from its capacity and its own experience in supporting sustainable and inclusive development , promoting democracy , good governance , human rights and the rule of law worldwide , its long - term and predictable commitment to development assistance and its role in promoting the coordination with its member states , as enshrined in article 210 tfeu . to ensure such impact , the principle of differentiation should be applied not only at the level of funds allocation , but also at the level of programming , to ensure that the union’s development cooperation targets partner countries most in need , including fragile states and states with high vulnerability , and with limited capacity to have access to other sources of financing for supporting their own development , having regard to the potential impact of the union assistance in partner countries . as a consequence , country - specific programming would target such countries , pursuant to the application of objective criteria based on the needs and capacities of these countries , as well as the impact of the assistance of the union and its member states . for countries no longer eligible for country - specific geographical programmes , it should be possible to phase out assistance through a gradual approach , and paying special attention to the needs of particularly vulnerable population groups . the union should establish a strong political dialogue with these partner countries on its possible contribution to the establishment of national policies aiming at poverty reduction .