### the requirements for the label are drawn up on the basis of scientific information or based on other objectively verifiable and non - discriminatory criteria ; ### the requirements for the label and / or the certificate of a third party verified standard are drawn up on the basis of scientific information or based on other objectively verifiable and non - discriminatory criteria and data ;


### the most economically advantageous tender ; ### the most economically , socially and environmentally advantageous tender ;


### the most economically advantageous tender referred to in point of paragraph 1 from the point of view of the contracting authority shall be identified on the basis of criteria linked to the subject - matter of the public contract in question . those criteria shall include , in addition to the price or costs referred to in point of paragraph 1 , other criteria linked to the subject - matter of the public contract in question , such as : ### the most economically , socially and environmentally advantageous tender referred to in point of paragraph 1 shall be identified on the basis of criteria linked to the subject - matter of the public contract in question . those criteria shall include , in addition to the price or costs referred to in point of paragraph 1 , other criteria linked to the subject - matter of the public contract in question , such as :


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


### where a label fulfils the conditions provided in points , , and of paragraph 1 but also sets out requirements not linked to the subject - matter of the contract , contracting authorities may define the technical specification by reference to those of the detailed specifications of that label , or , where necessary , parts thereof , that are linked to the subject - matter of the contract and are appropriate to define characteristics of this subject - matter . ### where a third party verified standard does not meet the definition in point 6 of annex viii because its criteria sets out requirements not linked to the subject - matter of the contract , contracting authorities may define the technical specification by reference to of the detailed specifications of that , standard or , where necessary , parts thereof , that are linked to the subject - matter of the contract and are appropriate to define characteristics of this subject - matter .


### furthermore , in technical specifications and in award criteria , contracting authorities should be allowed to refer to a specific production process , a specific mode of provision of services , or a specific process for any other stage of the life cycle of a product or service , provided that they are linked to the subject - matter of the public contract . in order to better integrate social considerations in public procurement , procurers may also be allowed to include , in the award criterion of the most economically advantageous tender , characteristics related to the working conditions of the persons directly participating in the process of production or provision in question . those characteristics may only concern the protection of health of the staff involved in the production process or the favouring of social integration of disadvantaged persons or members of vulnerable groups amongst the persons assigned to performing the contract , including accessibility for persons with disabilities . any award criteria which include those characteristics should in any event remain limited to characteristics that have immediate consequences on staff members in their working environment . they should be applied in accordance with directive 96 / 71 / ec of the european parliament and of the council of 16 december 1996 concerning the posting of workers in the framework of the provision of services and in a way that does not discriminate directly or indirectly against economic operators from other member states or from third countries parties to the agreement or to free trade agreements to which the union is party . for service contracts and for contracts involving the design of works , contracting authorities should also be allowed to use as an award criterion the organisation , qualification and experience of the staff assigned to performing the contract in question , as this may affect the quality of contract performance and , as a result , the economic value of the tender . ### contracting authorities should be allowed to refer to life cycle characteristics in technical specifications and award criteria , provided that they are linked to the subject - matter of the public contract . contracting authorities can use technical specifications or award criteria to set out functional or performance requirements aimed at minimising undesirable environmental or social impacts and / or maximising positive environmental or social impacts arising from the production or other phases of the life - cycle of the procured supplies , services or works . life cycle characteristics may incorporate the employment conditions of the staff involved in the production process or the favouring of social integration of disadvantaged persons or members of vulnerable groups amongst the persons assigned to performing the contract , including accessibility for persons with disabilities as well as impacts of production processes on adjacent communities


### public procurement plays a key role in the europe 2020 strategy as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts have to be revised and modernised in order to increase the efficiency of public spending , facilitating in particular the participation of small and medium - sized enterprises in public procurement and to enable procurers to make better use of public procurement in support of common societal goals . there is also a need to clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union . ### public procurement , as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds , plays a key role in the europe 2020 strategy and in fulfilling the objective of sustainable development stated in the treaty of lisbon . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts have to be revised and modernised in order to increase the efficiency of public spending , facilitating in particular the participation of small and medium - sized enterprises in public procurement and to enable procurers to make better use of public procurement in support of common societal goals . there is also a need to clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union .


### the requirements for the label only concern characteristics which are linked to the subject - matter of the contract and are appropriate to define characteristics of the works , supplies or services that are the subject - matter of the contract ; ### the requirements for the label and / or the certificate of a third party verified standard concern characteristics which are linked to the subject - matter of the contract and are appropriate to define characteristics of the works , supplies or services that are the subject - matter of the contract ;


### where contracting authorities lay down environmental , social or other characteristics of a works , service or supply in terms of performance or functional requirements as referred to in point of article 40 they may require that these works , services or supplies bear a specific label , provided that all of the following conditions are fulfilled : ### where contracting authorities lay down environmental , social or other characteristics of a works , service or supply in terms of performance or functional requirements as referred to in point of article 40 they may require that these works , services or supplies bear a specific label and / or a certificate of a third party verified standard , provided that all of the following conditions are fulfilled :


### procurement within the meaning of this directive is the purchase or other forms of acquisition of works , supplies or services by one or more contracting authorities from economic operators chosen by those contracting authorities , whether or not the works , supplies or services are intended for a public purpose . ### procurement within the meaning of this directive is the purchase of works , supplies or services via public contracts by one or more contracting authorities from economic operators chosen by those contracting authorities .


### the technical specifications as defined in point 1 of annex viii shall be set out in the procurement documents . they shall define the characteristics required of a works , service or supply . ### the technical specifications as defined in point 1 of annex viii shall be set out in the procurement documents . they shall define the characteristics required of a works , service or supply in order to achieve the use , sustainability and animal welfare objectives of the contracting authority .


### 4 as regards engines for use in propulsion of locomotives , during the transition period between stage iii a and stage iii b an oem may seek permission for his engine suppliers to place on the market a maximum of 12 engines for use in propulsion of locomotives under the flexibility scheme . ### 4 as regards engines for use in propulsion of locomotives , during the transition period between stage iii a and stage iii b an oem may seek permission for his engine suppliers to place on the market a maximum of 20 engines for use in propulsion of freight and shunting of locomotives under the flexibility scheme , of which the total number shall be designed to be capable of operating on the uk rail network .


### all member states should be adequately equipped , both in terms of technical and organisational capabilities , to prevent , detect , respond to and mitigate network and information systems ' incidents and risks . well - functioning computer emergency response teams complying with essential requirements should therefore be established in all member states to guarantee effective and compatible capabilities to deal with incidents and risks and ensure efficient cooperation at union level . ### all member states should be adequately equipped , both in terms of technical and organisational capabilities , to prevent , detect , respond to and mitigate network and information systems ' incidents and risks . well - functioning computer emergency response teams complying with essential requirements and continuous mitigation and response capabilities should therefore be established in all member states to guarantee effective and compatible capabilities to deal with incidents and risks and ensure efficient cooperation at union level . in view of the above , member states should guarantee that each sectorial service , listed in annex ii of the present directive , is covered by at least one cert . regarding cross border cooperation , member states should assure that certs have sufficient means to participate in the respective international and european cooperation networks . the european network information security agency should provide the necessary assistance and advice for capacity building in case of need .


### responding effectively to the challenges of the security of network and information systems therefore requires a global approach at union level covering common minimum capacity building and planning requirements , exchange of information and coordination of actions , and common minimum security requirements for all market operators concerned and public administrations . ### responding effectively to the challenges of the security of network and information systems therefore requires a global approach at union level covering common minimum capacity building and planning requirements , exchange of information and coordination of actions , and common minimum security requirements .


### member states shall ensure that public administrations and market operators notify to the competent authority incidents having a significant impact on the security of the core services they provide . ### member states shall ensure that public administrations and market operators , providing or operating services , referred to in article of this directive , notify to the competent authority incidents having a significant impact on the security and continuity of the core services they provide . member states shall ensure that compliance with this requirement does not alter the provisions of article 9 of this directive , nor that it exposes the notifying party to increased liability or unnecessary operational or security risk .


### as most network and information systems are privately operated , cooperation between the public and private sector is essential . market operators should be encouraged to pursue their own informal cooperation mechanisms to ensure nis . they should also cooperate with the public sector and share information and best practices in exchange of operational support in case of incidents . ### as most network and information systems are privately operated , cooperation between the public and private sector is essential . market operators should be encouraged to pursue their own informal cooperation mechanisms to ensure nis . they should also cooperate with the public sector and mutually share information and best practices in exchange of operational support and strategically analysed information , in case of incidents .


### to ensure convergent implementation of article 14 , member states shall encourage the use of standards and / or specifications relevant to networks and information security . ### to ensure convergent implementation of article 14 , member states , without prescribing the use of any particular technology , shall encourage the use of interoperable standards and / or specifications relevant to networks and information security .


### to allow for the effective implementation of the provisions adopted pursuant to this directive , a body responsible for coordinating nis issues and acting as a focal point for cross - border cooperation at union level should be established or identified in each member state . these bodies should be given the adequate technical , financial and human resources to ensure that they can carry out in an effective and efficient manner the tasks assigned to them and thus achieve the objectives of this directive . ### to allow for the effective implementation of the provisions adopted pursuant to this directive , a body responsible for coordinating nis issues and acting as a single focal point for both internal coordination and cross - border cooperation at union level should be established or identified in each member state . these single national points of contact should be designated without prejudice for each member state to designate more than one national competent authority in charge of network information security , according to their constitutional , jurisdictional or administrative requirements , but should nonetheless be assigned with a coordinating mandate at national and union level . these bodies should be given the adequate technical , financial and human resources to ensure that they can carry out in a continuous , effective and efficient manner the tasks assigned to them and thus achieve the objectives of this directive .


### standardisation of security requirements is a market - driven process . to ensure a convergent application of security standards , member states should encourage compliance or conformity with specified standards to ensure a high level of security at union level . to this end , it might be necessary to draft harmonised standards , which should be done in accordance with regulation no 1025 / 2012 of the european parliament and of the council of 25 october 2012 on european standardisation , amending council directives 89 / 686 / eec and 93 / 15 / eec and directives 94 / 9 / ec , 94 / 25 / ec , 95 / 16 / ec , 97 / 23 / ec , 98 / 34 / ec , 2004 / 22 / ec , 2007 / 23 / ec , 2009 / 23 / ec and 2009 / 105 / ec of the european parliament and of the council and repealing council decision 87 / 95 / eec and decision no 1673 / 2006 / ec of the european parliament and of the council29 . __________________ 29 oj l 316 , 14 . 11 . 2012 , p . 12 . ### standardisation of security requirements is a market - driven process . to ensure a convergent application of security standards , member states should encourage compliance or conformity with specified standards to ensure a high level of security at union level . to this end , the application of open international standards on network information security or the design of such tools need to be considered . another step forward might be necessary to draft harmonised standards , which should be done in accordance with regulation no 1025 / 2012 of the european parliament and of the council of 25 october 2012 on european standardisation , amending council directives 89 / 686 / eec and 93 / 15 / eec and directives 94 / 9 / ec , 94 / 25 / ec , 95 / 16 / ec , 97 / 23 / ec , 98 / 34 / ec , 2004 / 22 / ec , 2007 / 23 / ec , 2009 / 23 / ec and 2009 / 105 / ec of the european parliament and of the council and repealing council decision 87 / 95 / eec and decision no 1673 / 2006 / ec of the european parliament and of the council29 . in particular , etsi , cen and cenelec should be mandated to suggest effective and efficient eu open security standards , where technological preferences are avoided as much as possible , and which should be made easily manageable by small and medium - size market operators and smaller public administrations . __________________ 29 oj l 316 , 14 . 11 . 2012 , p . 12 .


### the competent authority may inform the public , or require the public administrations and market operators to do so , where it determines that disclosure of the incident is in the public interest . once a year , the competent authority shall submit a summary report to the cooperation network on the notifications received and the action taken in accordance with this paragraph . ### the competent authority may inform the public , or require the public administrations and market operators to do so , where it determines that public interest in the disclosure of the incident outweighs possible reputational and commercial damages for the public administration or market operator in question . administrations and operators shall have the right to make the case to the competent authority as to whether disclosure is appropriate prior to determinations being made . in any case , the member states should avoid disclosure of business confidential information . once a year , they shall submit a summary report to the cooperation network on the notifications received and the action taken in accordance with this paragraph .


### a secure information - sharing infrastructure should be put in place to allow for the exchange of sensitive and confidential information within the cooperation network . without prejudice to their obligation to notify incidents and risks of union dimension to the cooperation network , access to confidential information from other member states should only be granted to members states upon demonstration that their technical , financial and human resources and processes , as well as their communication infrastructure , guarantee their effective , efficient and secure participation in the network . ### a secure information - sharing infrastructure should be put in place to allow for the exchange of sensitive and confidential information within the cooperation network , to which all member states have access .


### information that is considered confidential by a competent authority , in accordance with union and national rules on business confidentiality , should be exchanged with the commission and other competent authorities only where such exchange is strictly necessary for the application of this directive . the information exchanged should be limited to that which is relevant and proportionate to the purpose of such exchange . ### information that is considered confidential by a competent authority in accordance with union and national rules on business confidentiality , should be exchanged with the commission , its relevant agencies and / or other national competent authorities only where such exchange is strictly necessary for the application of this directive . the information exchanged should be limited to that which is relevant and proportionate to the purpose of such exchange , while respecting pre - defined criteria for confidentiality and security and classification protocols , governing the information sharing procedure .


### publish on a regular basis non - confidential information on on - going early warnings and coordinated response on a common website ; ### publish on a regular basis non - confidential information on on - going early warnings and coordinated response on a common website and on the enisa website ;


### in several member states , a certain proportion of the non - executive directors can or must be appointed or elected by the company ' s workforce and / or organisations of workers pursuant to national law or practice . the quantitative objectives provided for in this directive should apply to all non - executive directors including employee representatives . however , the practical procedures for ensuring that those objectives are attained , taking into account the fact that some non - executive directors are employee representatives , should be defined by the member states concerned . ### in several member states , a certain proportion of the non - executive directors can or must be appointed or elected by the company ' s workforce and / or organisations of workers pursuant to national law or practice . the quantitative objectives provided for in this directive should apply to all non - executive directors including employee representatives . this directive should take account of the diversity and national characteristics of selection procedures in the member states .


### member states shall take the necessary measures to ensure that the body or bodies designated in accordance with article 20 of directive 2006 / 54 / ec of the european parliament and of the council of 5 july 2006 on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation are also competent for the promotion , analysis , monitoring and support of gender balance on the boards of listed companies . ### member states shall take the necessary measures to ensure that the body or bodies designated in accordance with article 20 of directive 2006 / 54 / ec of the european parliament and of the council of 5 july 2006 on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation are also competent for the promotion , analysis , monitoring and support of gender balance on the boards of listed companies . to that end , member states shall efficiently collaborate with social partners and civil society .


### determining the number of non - executive director positions necessary to meet the objective requires further specification since for most board sizes it is mathematically possible only to go beyond or remain below the exact share of 40 per cent . therefore , the number of board positions necessary to meet the objective should be the number closest to 40 per cent . at the same time , in order to avoid discrimination of the initially over - represented sex , listed companies should not be obliged to appoint members of the under - represented sex to half or more of the non - executive board positions . thus , for example , members of the under - represented sex should hold at least one position on boards with three or four non - executive directors , at least two positions on boards with five or six non - executive directors , and at least three positions on boards with seven or eight non - executive directors . ### where the non - executive board consists of only three members , it is mathematically impossible to go beyond a share of 40 per cent for both genders . therefore , in such cases , members of the underrepresented sex should hold at least one position on boards with three non - executive directors .


### companies listed on stock exchanges enjoy a particular economic importance , visibility and impact on the market as a whole . the measures provided for in this directive should therefore apply to listed companies , which are defined as companies incorporated in a member state whose securities are admitted to trading on a regulated market within the meaning of article 4 of directive 2004 / 39 / ec of the european parliament and of the council of 21 april 2004 on markets in financial instruments , in one or more member states . these companies set standards for the economy in its entirety and their practices can be expected to be followed by other types of companies . the public nature of listed companies justifies that they be regulated to a greater extent in the public interest . ### companies listed on stock exchanges and other major undertakings enjoy a particular economic importance , visibility and impact on the market as a whole . the measures provided for in this directive should therefore apply to listed companies , which are defined as companies incorporated in a member state whose securities are admitted to trading on a regulated market within the meaning of article 4 of directive 2004 / 39 / ec of the european parliament and of the council of 21 april 2004 on markets in financial instruments , in one or more member states . these companies set standards for the economy in its entirety and their practices can be expected to be followed by other types of companies . the public nature of listed companies justifies that they be regulated to a greater extent in the public interest , irrespective of their size . incentives should also be created for other major undertakings to attain the objectives of this directive , so that they can more easily be incorporated into the directive at a later date if necessary .


### the number of non - executive director positions necessary to meet the objective laid down in paragraph 1 shall be the number closest to the proportion of 40 per cent , but not exceeding 49 per cent . ### the number of non - executive director positions necessary to meet the objective laid down in paragraph 1 shall be at least 40 per cent . if the non - executive board consists of only three board members , the proportion one to two shall suffice .


### member states should provide for effective , proportionate and dissuasive sanctions for breaches of this directive , which could include , inter alia , administrative fines and nullity or annulment declared by a judicial body of the appointment or of the election of non - executive directors made contrary to the national provisions adopted pursuant to article 4 . ### member states should provide for effective , proportionate and dissuasive sanctions for breaches of this directive , which could include , inter alia , administrative fines and nullity or annulment declared by a judicial body of the appointment or of the election of directors made contrary to the national provisions adopted pursuant to article 4 as well as forced dissolution , ordered by a competent judicial body in full respect of proper procedural safeguards , in cases of serious and repeated infringements .


### the methods of recruiting and appointing directors differ from one member state to another and from one company to another . they may involve the pre - selection of candidates to be presented to the shareholders ' assembly , for example by a nomination committee , the direct appointment of directors by individual shareholders or a vote in the shareholders ' assembly on individual candidates or lists of candidates . the requirements concerning the selection of candidates should be met at the appropriate stage of the selection process in accordance with national law and the articles of association of the listed companies concerned . in this respect , this directive only establishes a minimum harmonisation of selection procedures , making it possible to apply the conditions provided for by the case - law of the court of justice with a view to attaining the objective of a more balanced gender representation in the boards of listed companies . ### the methods of recruiting and appointing directors differ from one member state to another and from one company to another . they may involve the pre - selection of candidates to be presented to the shareholders ' assembly , for example by a nomination committee , the direct appointment of directors by individual shareholders or a vote in the shareholders ' assembly on individual candidates or lists of candidates . the directive respects the diversity and specific national features of selection procedures ; requirements concerning the selection of candidates should be met at the appropriate stage of the selection process in accordance with national law and the articles of association of the listed companies concerned . in this respect , this directive allows for a diversity of selection procedures , making it possible to attain the objective of a more balanced gender representation in the boards of listed companies .


### existing evidence also shows that labour market equality can improve economic growth substantially . enhancing female presence in the boardrooms of listed companies in the union not only affects the women appointed to boards , but also contributes to attracting female talent to the company and ensuring a greater presence of women at all levels of management and in the workforce . therefore , a higher share of women on company boards has a positive impact on closing both the gender employment gap and the gender pay gap . making full use of the existing female talent pool would constitute a marked improvement in terms of return on education for both individuals and the public sector . female under - representation in the board rooms of publicly listed companies in the eu is a missed opportunity in terms of achieving long - term sustainable growth for member states ' economies at large . ### existing evidence also shows that labour market equality can improve economic growth substantially . enhancing female presence in the boardrooms of listed companies in the union not only affects the women appointed to boards , but also contributes to attracting female talent to the company , ensuring a greater presence of , and recognising the contribution made by , women at all levels of management and in the workforce . therefore , a higher share of women on company boards has a positive impact on closing both the gender employment gap and the gender pay gap . making full use of the existing female talent pool would constitute a marked improvement in terms of return on education for both individuals and the public sector . female under - representation in the boardrooms of publicly listed companies in the eu is a missed opportunity in terms of achieving long - term sustainable growth for member states ' economies at large .


### at company level , it is widely acknowledged that the presence of women on boards improves corporate governance , because team performance and the quality of decision - making are enhanced due to a more diverse and collective mind - set incorporating a wider range of perspectives and therefore reaching more balanced decisions . numerous studies have also shown that there is a positive relationship between gender diversity at top management level and a company ' s financial performance and profitability . enhancing female representation on the boards of publicly listed companies in the union can therefore have a positive impact on the performance of companies concerned . ### at company level , it is widely acknowledged that the presence of women on boards improves corporate governance , because team performance and the quality of decision - making are enhanced due to a more diverse and collective mind - set incorporating a wider range of perspectives as well as a more proactive business model and therefore reaching more balanced decisions , with a view to better reflecting societal and consumers ' realities . numerous studies have also shown that there is a positive relationship between gender diversity at top management level and a company ' s financial performance and profitability . enhancing female representation on the boards of publicly listed companies in the union , given the significant economic and social responsibility of such companies , can therefore have a positive impact on the economic performance of companies concerned . measures to encourage career progression for women at all levels of management should therefore be introduced and reinforced .


### the number of non - executive director positions necessary to meet the objective laid down in paragraph 1 shall be the number closest to the proportion of 40 per cent , but not exceeding 49 per cent . ### the number of director positions necessary to meet the objective laid down in paragraph 1 shall be at least 40 per cent .


### while this directive does not aim to harmonise national laws on the selection procedures and qualification criteria for board positions in detail , the introduction of certain minimum standards as regards the requirement for listed companies without balanced gender representation to take appointment decisions for non - executive directors on the basis of an objective comparative assessment of the qualifications of candidates in terms of suitability , competence and professional performance is necessary in order to attain gender balance among non - executives directors . only an eu - level measure can effectively help to ensure a competitive level - playing field throughout the union and avoid practical complications in business life . ### while this directive does not aim to harmonise national laws on the selection procedures and qualification criteria for board positions in detail , the introduction of certain minimum standards as regards the requirement for listed companies without balanced gender representation to take appointment decisions for non - executive directors on the basis of an objective comparative assessment of the qualifications of candidates in terms of suitability , competence and professional performance is necessary in order to attain gender balance among non - executive directors . only a binding measure at union level can effectively help to ensure a competitive level - playing field throughout the union , avoid practical complications in business life and allow executives and directors to make full use of the opportunities the internal market has to offer .


### ' listed company ' means a company incorporated in a member state whose securities are admitted to trading on a regulated market within the meaning of article 4 of directive 2004 / 39 / ec , in one or more member states ; ### ' listed company ' means a company which has its seat in a member state and whose shares are admitted to trading on a regulated market within the meaning of article 4 of directive 2004 / 39 / ec , in one or more member states ;


### while this directive does not aim to harmonise national laws on the selection procedures and qualification criteria for board positions in detail , the introduction of certain minimum standards as regards the requirement for listed companies without balanced gender representation to take appointment decisions for non - executive directors on the basis of an objective comparative assessment of the qualifications of candidates in terms of suitability , competence and professional performance is necessary in order to attain gender balance among non - executives directors . only an eu - level measure can effectively help to ensure a competitive level - playing field throughout the union and avoid practical complications in business life . ### while this directive does not aim to harmonise national laws on the selection procedures and qualification criteria for board positions in detail , the introduction of certain minimum standards as regards the requirement for listed companies without balanced gender representation to take appointment decisions for non - executive directors on the basis of a transparent and clearly defined selection procedure and an objective comparative assessment of the qualifications of candidates in terms of suitability , competence and professional performance is necessary in order to attain gender balance among non - executives directors . only an eu - level binding measure can effectively help to ensure a competitive level - playing field throughout the union and avoid practical complications in business life .


### member states should provide for effective , proportionate and dissuasive sanctions for breaches of this directive , which could include , inter alia , administrative fines and nullity or annulment declared by a judicial body of the appointment or of the election of non - executive directors made contrary to the national provisions adopted pursuant to article 4 . ### member states should provide for effective , proportionate and dissuasive sanctions for breaches of this directive , which should include , inter alia , administrative fines and nullity or annulment declared by a judicial body of the appointment or of the election of non - executive directors made contrary to the national provisions adopted pursuant to article 4 .


### member states exercise a dominant influence over listed companies which are public undertakings within the meaning of article 2 of commission directive 2006 / 111 / ec of 16 november 2006 on the transparency of financial relations between member states and public undertakings , as well as on financial transparency within certain undertakings . due to that dominant influence , they have the instruments at their disposal to bring about the necessary change more rapidly . therefore , in such companies the objective of least 40 per cent of non - executive directors of the under - represented sex should be set at an earlier date . ### member states exercise a dominant influence over listed companies which are public undertakings within the meaning of article 2 of commission directive 2006 / 111 / ec of 16 november 2006 on the transparency of financial relations between member states and public undertakings , as well as on financial transparency within certain undertakings . due to that dominant influence , they have the instruments at their disposal to bring about the necessary change more rapidly . therefore , in such companies the objective of at least 40 per cent of non - executive directors of the under - represented sex should be set at an earlier date , in conformity with adequate mechanisms set up by member states in line with this directive .


### member states should require listed companies to provide information on the gender composition of their boards as well as information on how they managed to meet the objectives laid down in this directive , on a yearly basis to the competent national authorities in order to enable them to assess the progress of each listed company towards gender balance among directors . such information should be published and , where the company in question has not met the objective , it should include a description of the measures that it has taken so far and intends to take in the future in order to meet the objective . ### member states should require listed companies to provide information on the gender composition of their boards as well as information on how they managed to meet the objectives laid down in this directive , on a yearly basis to the competent national authorities in order to enable them to assess the progress of each listed company towards gender balance among directors . such information should be published in an appropriate and easily accessible manner in the annual report and on the website and , where the company in question has not met the objective , it should include a comprehensive description of the measures that it has taken so far and intends to take in the future in order to meet the objective . furthermore , companies that failed to comply should provide a justification on the reasons for not implementing the adequate mechanisms , and what concrete measures are to be adopted in order to efficiently guarantee that the objective of enhanced gender - balance is met .


### the efficient use of human capital is the most important determinant of an economy ' s competitiveness and is key to addressing the eu ' s demographic challenges , to competing successfully in a globalised economy and to ensuring a comparative advantage vis - à - vis third countries . the pool of highly trained and qualified women is constantly growing as evidenced by the fact that 60 per cent of university graduates are female . a continued failure to draw on this pool in appointments to economic decision - making positions would amount to a failure to fully exploit skilled human capital . ### the efficient use of human capital is the most important determinant of an economy ' s competitiveness , development and growth and is key to addressing the eu ' s demographic challenges , to competing successfully in a globalised economy and to ensuring a comparative advantage vis - à - vis third countries . the pool of highly trained and qualified women is constantly growing as evidenced by the fact that 60 per cent of university graduates are female . a continued failure to draw on this pool in companies ' management positions and decision - making positions would amount to a failure to fully exploit skilled human capital .


### companies listed on stock exchanges enjoy a particular economic importance , visibility and impact on the market as a whole . the measures provided for in this directive should therefore apply to listed companies , which are defined as companies incorporated in a member state whose securities are admitted to trading on a regulated market within the meaning of article 4 of directive 2004 / 39 / ec of the european parliament and of the council of 21 april 2004 on markets in financial instruments , in one or more member states . these companies set standards for the economy in its entirety and their practices can be expected to be followed by other types of companies . the public nature of listed companies justifies that they be regulated to a greater extent in the public interest . ### companies listed on stock exchanges enjoy a particular economic importance , visibility and impact on the market as a whole . the measures provided for in this directive should therefore apply to listed companies , which are defined as companies incorporated in a member state whose securities are admitted to trading on a regulated market within the meaning of article 4 of directive 2004 / 39 / ec of the european parliament and of the council of 21 april 2004 on markets in financial instruments , in one or more member states . these companies set standards for the economy in its entirety and their practices can be expected to be followed by other types of companies . the public nature of listed companies justifies that they be adequately regulated in the public interest .


### in several member states , a certain proportion of the non - executive directors can or must be appointed or elected by the company ' s workforce and / or organisations of workers pursuant to national law or practice . the quantitative objectives provided for in this directive should apply to all non - executive directors including employee representatives . however , the practical procedures for ensuring that those objectives are attained , taking into account the fact that some non - executive directors are employee representatives , should be defined by the member states concerned . ### in several member states , a certain proportion of the non - executive directors can or must be appointed or elected by the company ' s workforce and / or organisations of workers pursuant to national law or practice . the quantitative objectives provided for in this directive should apply to all non - executive directors including employee representatives . this directive should take account of the diversity and national characteristics of selection procedures in the member states .


### this directive lays down measures to ensure a more balanced representation of men and women among the non - executive directors of listed companies by establishing measures aimed at accelerated progress towards gender balance while allowing companies sufficient time to make the necessary arrangements . ### this directive lays down measures to ensure a more balanced representation of men and women among the directors of listed companies and large public undertakings by establishing measures aimed at accelerated progress towards gender balance while allowing companies sufficient time to make the necessary arrangements .


### determining the number of non - executive director positions necessary to meet the objective requires further specification since for most board sizes it is mathematically possible only to go beyond or remain below the exact share of 40 per cent . therefore , the number of board positions necessary to meet the objective should be the number closest to 40 per cent . at the same time , in order to avoid discrimination of the initially over - represented sex , listed companies should not be obliged to appoint members of the under - represented sex to half or more of the non - executive board positions . thus , for example , members of the under - represented sex should hold at least one position on boards with three or four non - executive directors , at least two positions on boards with five or six non - executive directors , and at least three positions on boards with seven or eight non - executive directors . ### determining the number of director positions necessary to meet the objective requires further specification since for most board sizes it is mathematically possible only to go beyond or remain below the exact share of 40 per cent . therefore , the number of board positions necessary to meet the objective should be the number closest to 40 per cent . at the same time , in order to avoid discrimination of the initially over - represented sex , listed companies and large public undertakings should not be obliged to appoint members of the under - represented sex to more than half of the board positions . thus , for example , members of the under - represented sex should hold at least one position on boards with three directors , at least two positions on boards with four , five or six directors , and at least three positions on boards with seven or eight directors .


### determining the number of non - executive director positions necessary to meet the objective requires further specification since for most board sizes it is mathematically possible only to go beyond or remain below the exact share of 40 per cent . therefore , the number of board positions necessary to meet the objective should be the number closest to 40 per cent . at the same time , in order to avoid discrimination of the initially over - represented sex , listed companies should not be obliged to appoint members of the under - represented sex to half or more of the non - executive board positions . thus , for example , members of the under - represented sex should hold at least one position on boards with three or four non - executive directors , at least two positions on boards with five or six non - executive directors , and at least three positions on boards with seven or eight non - executive directors . ### where the non - executive board consists of only three members , it is mathematically impossible to go beyond a share of 40 per cent for both genders . therefore , in such cases , members of the underrepresented sex should hold at least one position on boards with three non - executive directors .


### existing evidence also shows that labour market equality can improve economic growth substantially . enhancing female presence in the boardrooms of listed companies in the union not only affects the women appointed to boards , but also contributes to attracting female talent to the company and ensuring a greater presence of women at all levels of management and in the workforce . therefore , a higher share of women on company boards has a positive impact on closing both the gender employment gap and the gender pay gap . making full use of the existing female talent pool would constitute a marked improvement in terms of return on education for both individuals and the public sector . female under - representation in the board rooms of publicly listed companies in the eu is a missed opportunity in terms of achieving long - term sustainable growth for member states ' economies at large . ### existing evidence also shows that labour market equality can improve economic growth substantially . enhancing female presence in the boardrooms of listed companies in the union not only affects the women appointed to boards , but also contributes to attracting female talent to the company and ensuring a greater presence and recognising the contribution of women at all levels of management and in the workforce . therefore , a higher share of women on company boards has a positive impact on closing both the gender employment gap and the gender pay gap . making full use of the existing female talent pool would constitute a marked improvement in terms of return on education for both individuals and the public sector . female under - representation in the board rooms of publicly listed companies in the eu is a missed opportunity in terms of achieving long - term sustainable growth for member states ' economies at large . member states should therefore introduce measures to encourage career progression of women at all levels through positive actions such as networking and mentoring programmes .


### where a listed company does not meet the objectives laid down in article 4 or its own individual commitments taken pursuant to paragraph 1 of this article , the information referred to in paragraph 2 of this article shall include the reasons for not reaching the objectives or commitments and a description of the measures which the company has adopted or intends to adopt in order to meet the objectives or commitments . ### where a listed company does not meet the objectives laid down in article 4 or its own individual commitments taken pursuant to paragraph 1 of this article , it shall provide a statement of the reasons for not reaching the objectives or commitments and a description of the measures which the company has adopted or intends to adopt in order to meet the objectives or commitments . that explanation shall form part of the information referred to in paragraph 2 .


### the sanctions must be effective , proportionate and dissuasive and may include the following measures : ### the sanctions must be effective , proportionate and dissuasive and shall at least include the following measures :


### the number of non - executive director positions necessary to meet the objective laid down in paragraph 1 shall be the number closest to the proportion of 40 per cent , but not exceeding 49 per cent . ### the number of non - executive director positions necessary to meet the objective laid down in paragraph 1 shall be at least 40 per cent . if the non - executive board consists of only three board members , the proportion one to two shall suffice .


### where a listed company does not meet the objectives laid down in article 4 or its own individual commitments taken pursuant to paragraph 1 of this article , the information referred to in paragraph 2 of this article shall include the reasons for not reaching the objectives or commitments and a description of the measures which the company has adopted or intends to adopt in order to meet the objectives or commitments . ### where a listed company or a large public undertaking does not meet the objectives laid down in article 4 or its own individual commitments taken pursuant to paragraph 1 of this article , the information referred to in paragraph 2 of this article shall include the reasons for not reaching the objectives or commitments and a comprehensive description of the measures which the company has adopted or intends to adopt in order to meet the objectives or commitments .


### member states shall require listed companies to provide information to the competent national authorities , once a year as from [ two years after adoption ] , about the gender representation on their boards , distinguishing between non - executive and executive directors and about the measures taken in view of the objectives laid down in article 4 and in paragraph 1 of this article , and to publish that information in an appropriate and accessible manner on their website . ### member states shall require listed companies to provide information to the competent national authorities , once a year as from [ two years after adoption ] , about the gender representation on their boards , distinguishing between non - executive and executive directors and about the measures taken in view of the objectives laid down in article 4 and in paragraph 1 of this article , and to publish that information in an appropriate and easily accessible manner in the annual report and on their website .


### member states may introduce or maintain provisions which are more favourable than those laid down in this directive to ensure a more balanced representation of men and women in respect of companies incorporated in their national territory , provided those provisions do not create unjustified discrimination , nor hinder the proper functioning of the internal market . ### member states may introduce or maintain provisions which are more favourable than those laid down in this directive to ensure a more balanced representation of men and women in respect of companies incorporated in their national territory , provided those provisions do not create unjustified gender or any other form of discrimination , nor hinder the proper functioning of the internal market .


### the union should therefore aim to increase the presence of women on company boards , in order both to boost economic growth and the competitiveness of european companies and to achieve effective gender equality on the labour market . this aim should be pursued through minimum requirements on positive action in the form of binding measures aiming at attaining a quantitative objective for the gender composition of boards of listed companies , in the view of the fact that member states and other countries which have chosen this or a similar method have achieved the best results in reducing the under - representation of women in economic decision - making positions . ### the union should therefore aim to increase the presence of women on company boards , in order both to boost economic growth and the competitiveness of european companies and to achieve effective gender equality on the labour market . this aim should be pursued through minimum common union requirements on positive action in the form of binding measures aiming at attaining a quantitative objective for the gender composition of boards of listed companies , in the view of the fact that member states and other countries which have chosen this or a similar method have achieved the best results in reducing the under - representation of women in economic decision - making positions .


### member states should require listed companies to provide information on the gender composition of their boards as well as information on how they managed to meet the objectives laid down in this directive , on a yearly basis to the competent national authorities in order to enable them to assess the progress of each listed company towards gender balance among directors . such information should be published and , where the company in question has not met the objective , it should include a description of the measures that it has taken so far and intends to take in the future in order to meet the objective . ### member states should require listed companies to provide information on the gender composition of their boards as well as information on how they managed to meet the objectives laid down in this directive , on a yearly basis to the competent national authorities in order to enable them to assess the progress of each listed company towards gender balance among directors . such information should be published and , where the company in question has not met the objective , it should include a description of the measures that it has taken so far and intends to take in the future in order to meet the objective . furthermore , companies that have failed to comply with the objectives or commitments should provide a justification of their reasons for not doing so , as well as a description of the concrete measures that they have taken so far , and that they intend to take in the future , in order to meet the objective .


### member states should require listed companies to provide information on the gender composition of their boards as well as information on how they managed to meet the objectives laid down in this directive , on a yearly basis to the competent national authorities in order to enable them to assess the progress of each listed company towards gender balance among directors . such information should be published and , where the company in question has not met the objective , it should include a description of the measures that it has taken so far and intends to take in the future in order to meet the objective . ### member states should require listed companies to provide information on the gender composition of their boards as well as information on how they managed to meet the objectives laid down in this directive , on a yearly basis to the competent national authorities in order to enable them to assess the progress of each listed company towards gender balance among directors . such information should be included in the company’s annual report and published in an appropriate and easily accessible manner on the company’s website and , where the company in question has not met the objective , it should include a comprehensive description of the concrete measures that it has taken so far and intends to take in the future in order to meet the objective .


### at company level , it is widely acknowledged that the presence of women on boards improves corporate governance , because team performance and the quality of decision - making are enhanced due to a more diverse and collective mind - set incorporating a wider range of perspectives and therefore reaching more balanced decisions . numerous studies have also shown that there is a positive relationship between gender diversity at top management level and a company ' s financial performance and profitability . enhancing female representation on the boards of publicly listed companies in the union can therefore have a positive impact on the performance of companies concerned . ### at company level , it is widely acknowledged that the presence of women on boards improves corporate governance , because team performance and the quality of decision - making are enhanced due to a more diverse and collective mind - set incorporating a wider range of perspectives as well as a more proactive business model and therefore reaching more balanced decisions , with a view to better reflecting societal and consumers ' realities . numerous studies have also shown that there is a positive relationship between gender diversity at top management level and a company ' s financial performance and profitability . enhancing female representation on the boards of publicly listed companies in the union , given the significant economic and social responsibility of such companies , can therefore have a positive impact on the economic performance of companies concerned . measures to encourage career progression for women at all levels of management should therefore be introduced and reinforced .


### ensuring the safe development and application of nanotechnologies ### ensuring the safe development and application of nanotechnologies , and the development of appropriate test methods to assess the impact of nanotechnologies and engineered nanomaterials on human health and the environment .


### an increasing disease and disability burden in the context of an aging population places further demands on health and care sectors . if effective health and care is to be maintained for all ages , efforts are required to improve decision making in prevention and treatment provision , to identify and support the dissemination of best practice in the health and care sectors , and to support integrated care and the wide uptake of technological , organisational and social innovations empowering in particular older persons as well as disabled persons to remain active and independent . doing so will contribute to increasing , and lengthening the duration of their physical , social , and mental well - being . ### an increasing disease and disability burden in the context of an aging population places further demands on health and care sectors . if effective health and care is to be maintained for all individuals , irrespective of their age or gender and economic means , efforts are required to improve decision making in prevention and treatment provision , to identify and support the dissemination of best practice in the health and care sectors and to support integrated care , and the wide uptake of technological , organisational and social innovations empowering in particular older persons as well as disabled persons and patients to remain active and independent . doing so will contribute to increasing , and lengthening the duration of their physical , social , and mental well - being and quality of life .


### specific activities shall include : understanding the determinants of health , improving health promotion and disease prevention ; understanding disease and improving diagnosis ; developing effective screening programmes and improving the assessment of disease susceptibility ; improving surveillance and preparedness ; developing better preventive vaccines ; using in - silico medicine for improving disease management and prediction ; treating disease ; transferring knowledge to clinical practice and scalable innovation actions ; better use of health data ; active ageing , independent and assisted living ; individual empowerment for self - management of health ; promotion of integrated care ; improving scientific tools and methods to support policy making and regulatory needs ; and optimising the efficiency and effectiveness of healthcare systems and reducing inequalities by evidence based decision making and dissemination of best practice , and innovative technologies and approaches . ### specific activities shall include : understanding the determinants of health , improving health promotion and disease prevention ; understanding disease and improving diagnosis ; developing effective screening programmes and improving the assessment of disease susceptibility ; improving surveillance and preparedness ; developing better preventive vaccines ; using in - silico medicine for improving disease management and prediction ; treating disease ; transferring knowledge to clinical practice and scalable innovation actions including psychosocial aspects ; better use of health data ; standardized data analysis techniques ; active ageing , independent and assisted living ; individual empowerment for self - management of health ; promotion of integrated care ; improving scientific tools and methods to support policy making and regulatory needs ; and optimising the efficiency and effectiveness of healthcare systems and reducing health disparities and inequalities by evidence based decision making and dissemination of best practice , and innovative technologies and approaches . the activities shall take full advantage of the opportunities presented for a true interdisciplinary approach , combining knowledge from all six challenges and the other pillars to ensure sustainable solutions within the domain . active involvement from health care provides must be encouraged in order to secure rapid take - up and implementation of results .


### the cost of union health and social care systems is rising with care and prevention measures in all ages increasingly expensive , the number of europeans aged over 65 expected to nearly double from 85 million in 2008 to 151 million by 2060 , and those over 80 to rise from 22 to 61 million in the same period . reducing or containing these costs such that they do not become unsustainable depends in part on ensuring the lifelong health and wellbeing of all and therefore on the effective prevention , treatment and management of disease and disability . ### the cost of union health and social care systems is rising with care and prevention measures in all ages increasingly expensive , the number of europeans aged over 65 expected to nearly double from 85 million in 2008 to 151 million by 2060 , and those over 80 to rise from 22 to 61 million in the same period . reducing or containing these costs such that they do not become unsustainable depends in part on ensuring the lifelong mental and physical health and wellbeing of all and therefore on the effective prevention , treatment and management of disease and disability .


### effective health promotion , supported by a robust evidence base , prevents disease , improves wellbeing and is cost effective . health promotion and disease prevention also depend on an understanding of the determinants of health , on effective preventive tools , such as vaccines , on effective health and disease surveillance and preparedness , and on effective screening programmes . ### effective health promotion , supported by a robust evidence base , prevents disease , improves wellbeing and is cost effective . health promotion and disease prevention also depend on an understanding of the determinants of health on effective preventive tools , such as vaccines on effective health and disease surveillance and preparedness , on effective screening programmes and on access to timely , high quality , appropriate and specialized treatment .


### an increasing disease and disability burden in the context of an aging population places further demands on health and care sectors . if effective health and care is to be maintained for all ages , efforts are required to improve decision making in prevention and treatment provision , to identify and support the dissemination of best practice in the health and care sectors , and to support integrated care and the wide uptake of technological , organisational and social innovations empowering in particular older persons as well as disabled persons to remain active and independent . doing so will contribute to increasing , and lengthening the duration of their physical , social , and mental well - being . ### an increasing disease and disability burden in the context of an aging population places further demands on health and care sectors . if effective health and care is to be maintained for all ages , efforts are required to improve decision making in prevention and treatment provision , to identify and support the dissemination of best practice in the health and care sectors , and to support integrated care and the wide uptake of technological , organisational and social innovations empowering in particular older persons , persons with chronic diseases as well as disabled persons to remain active and independent . doing so will contribute to increasing , and lengthening the duration of their physical , social , and mental well - being .


### the aim is to supply sufficient food , feed , biomass and other raw - materials , while safeguarding natural resources and enhancing ecosystems services , including coping with and mitigating climate change . the activities shall focus on more sustainable and productive agriculture and forestry systems which are both resource - efficient and resilient , while at the same time developing of services , concepts and policies for thriving rural livelihoods . ### the aim is to supply sufficient food , feed , biomass and other raw - materials , while safeguarding natural resources and enhancing ecosystems services , protecting soil and water resources , while tackling the challenges of mitigation and adaptation to climate change . the activities shall focus on more sustainable and productive agriculture and forestry systems which are both resource - efficient and resilient , while at the same time developing of services , concepts and policies for thriving rural livelihoods .


### effective health promotion , supported by a robust evidence base , prevents disease , improves wellbeing and is cost effective . health promotion and disease prevention also depend on an understanding of the determinants of health , on effective preventive tools , such as vaccines , on effective health and disease surveillance and preparedness , and on effective screening programmes . ### effective health promotion , supported by a robust evidence base , prevents disease , improves mental and physical wellbeing and is cost effective . health promotion and disease prevention also depend on an understanding of the determinants of , and links between , physical and mental health , on effective preventive tools , such as vaccines , on effective health and disease surveillance and preparedness , and on effective screening programmes and early diagnosis .


### compliance , at least in an equivalent manner , with obligations established by union legislation in the field of social and labour law or environmental law or of the international social and environmental law provisions listed in annex xi or , where not applicable , with other provisions ensuring an equivalent level of protection ; ### compliance with provisions relating to social and employment protection , working conditions applying in the place where the work , service or supply is to be performed as set out by national legislation and / or collective agreements or by international labour law provisions listed in annex xi ;


### the agreement establishes a genuine cooperation between the participating contracting authorities aimed at carrying out jointly their public service tasks and involving mutual rights and obligations of the parties ; ### the purpose of the partnership is the provision of a public - service task conferred on all participating public authorities ;


### whenever a common methodology for the calculation of life - cycle costs is adopted as part of a legislative act of the union , including by delegated acts pursuant to sector specific legislation , it shall be applied where life - cycle costing is included in the award criteria referred to in article 66 . ### any common methodology for the calculation of life - cycle costs adopted as part of a legislative act of the union , pursuant to sector specific legislation , or as part of a european technical specification shall be deemed to meet the criteria as set out in paragraph 2 . and may be included in the award criteria referred to in article 66 .


### any economic operator shall be excluded from participation in a contract where the contracting authority is aware of a decision having the force of res judicata establishing that it has not fulfilled obligations relating to the payment of taxes or social security contributions in accordance with the legal provisions of the country in which it is established or with those of the member state of the contracting authority . ### any economic operator shall be excluded from participation in a contract where the contracting authority is aware of a decision having the force of res judicata establishing that it has not fulfilled obligations relating to the payment of taxes , social security contributions or any other obligation relating to social and employment conditions , such as health and safety at workplace , social security and working conditions as set out by eu and national laws , regulations or administrative provisions , arbitration award , collective agreement and contracts , and international labour law provisions listed in annex xi , that apply in the place where the work , service or supply is performed ; these obligations shall also apply in cross - border situations , where workers from one member state provide services in another member state .


### a contracting authority , which does not exercise over a legal person control within the meaning of paragraph 1 , may nevertheless award a public contract without applying this directive to a legal person which it controls jointly with other contracting authorities , where the following conditions are fulfilled : ### a contracting authority , which does not exercise over a legal person control within the meaning of paragraph 1 , may nevertheless award a public contract outside the scope of this directive to a legal person which it controls jointly with other contracting authorities , where the following conditions are fulfilled :


### where it is aware of any violation of obligations established by union legislation in the field of social and labour law or environmental law or of the international social and environmental law provisions listed in annex xi . compliance with union legislation or with international provisions also includes compliance in an equivalent manner . ### where it is aware of any violation of obligations in the field of environmental law or social and labour law , as established by union legislation and national laws , regulations or administrative provisions , arbitration award , collective agreements and contracts , and international social and environmental law provisions listed in annex xi , that apply in the place where the work , service or supply is performed , including in the subcontracting chain . compliance with these provisions also includes compliance in an equivalent manner .


### compliance , at least in an equivalent manner , with obligations established by union legislation in the field of social and labour law or environmental law or of the international social and environmental law provisions listed in annex xi or , where not applicable , with other provisions ensuring an equivalent level of protection ; ### compliance with obligations established by union legislation in the field of environmental law or with obligations relating to social and employment conditions , such as health and safety at workplace , social security and working conditions as set out by eu and national laws , regulations or administrative provisions , arbitration award , collective agreement and contracts , and international labour law provisions listed in annex xi , that apply in the place where the work , service or supply is performed ; these obligations shall also apply in cross - border situations , where workers from one member state provide services in another member state , or , where not applicable , with other provisions ensuring an equivalent level of protection ;


### without prejudice to national laws , regulations or administrative provisions concerning the remuneration of certain services , the criteria on which contracting authorities shall base the award of public contracts shall be one of the following : the most economically advantageous tender ; the lowest cost . ### without prejudice to national laws , regulations or administrative provisions concerning the remuneration of certain services , the criterion on which contracting authorities shall base the award of public contracts shall be the most economically advantageous and sustainable tender .


### member states shall ensure that contracting authorities may take into account the need to ensure quality , continuity , accessibility , availability and comprehensiveness of the services , the specific needs of different categories of users , the involvement and empowerment of users and innovation . member states may also provide that the choice of the service provider shall not be made solely on the basis of the price for the provision of the service . ### member states shall ensure that contracting authorities take into account the need to ensure high quality , continuity , accessibility , affordability , availability and comprehensiveness of the services , the specific needs of different categories of users , including disadvantaged and vulnerable groups , the involvement and empowerment of users and innovation . member states shall provide that the choice of the service provider shall not be made solely on the basis of the price for the provision of the service , but take into account quality and sustainability criteria for social services as set out above .


### member states shall ensure that contracting authorities may take into account the need to ensure quality , continuity , accessibility , availability and comprehensiveness of the services , the specific needs of different categories of users , the involvement and empowerment of users and innovation . member states may also provide that the choice of the service provider shall not be made solely on the basis of the price for the provision of the service . ### member states shall ensure that contracting authorities may take into account the need to ensure quality , continuity , accessibility , availability and comprehensiveness of the services , the specific needs of different categories of users , the involvement and empowerment of users and innovation .


### in the procurement documents , the contracting authority may ask or may be required by a member state to ask the tenderer to indicate in its tender any share of the contract it may intend to subcontract to third parties and any proposed subcontractors . ### in the procurement documents , the contracting authority shall ask or shall be required by a member state to ask the tenderer to indicate in its tender any share of the contract it may intend to subcontract to third parties and any proposed subcontractors and to give information on their subcontractors including their names , contact details and legal representatives . any change in the subcontracting chain and any new subcontractor shall be indicated without delay to the contracting authority , including their names , contact details and legal representatives .


### conditions for performance of contracts contracting authorities may lay down special conditions relating to the performance of a contract , provided that they are indicated in the call for competition or in the specifications . those conditions may , in particular , concern social and environmental considerations . they may also include the requirement that economic operators foresee compensations for risks of price increases that are the result of price fluctuations and that could substantially impact the performance of a contract . ### conditions for performance of contracts contracting authorities may lay down special conditions relating to the performance of a contract , provided that they are indicated in the call for competition or in the specifications . those conditions shall include obligations relating to social and employment conditions , such as health and safety at workplace , social security and working conditions as set out by eu and national laws , regulations or administrative provisions , arbitration award , collective agreement and contracts , and international labour law provisions listed in annex xi , that apply in the place where the work , service or supply is performed ; these obligations shall also apply in cross - border situations , where workers from one member state provide services in another member state . they may also include the requirement that economic operators foresee compensations for risks of price increases that are the result of price fluctuations and that could substantially impact the performance of a contract .


### contracting authorities shall reject the tender , where they have established that the tender is abnormally low because it does not comply with obligations established by union legislation in the field of social and labour law or environmental law or by the international social and environmental law provisions listed in annex xi . ### contracting authorities shall reject the tender , where they have established that the tender is abnormally low because it does not comply with provisions set out in paragraph 3 .


### article 70 conditions for performance of contracts contracting authorities may lay down special conditions relating to the performance of a contract , provided that they are indicated in the call for competition or in the specifications . those conditions may , in particular , concern social and environmental considerations . they may also include the requirement that economic operators foresee compensations for risks of price increases that are the result of price fluctuations and that could substantially impact the performance of a contract . ### article 70 conditions for performance of contracts contracting authorities may lay down special conditions relating to the performance of a contract , provided that they are indicated in the call for competition or in the specifications . those conditions shall include obligations relating to social and employment conditions , such as health and safety at workplace including workers who endeavour to improve the heath and safety at their workplace , social security and working conditions as set out by eu and national laws , regulations or administrative provisions , arbitration award , collective agreement and contracts , and international labour law provisions listed in annex xi , that apply in the place where the work , service or supply is performed ; these obligations shall also apply in cross - border situations , where workers from one member state provide services in another member state . they may also include the requirement that economic operators foresee compensations for risks of price increases that are the result of price fluctuations and that could substantially impact the performance of a contract .


### other categories of services continue by their very nature to have a limited cross - border dimension , namely what are known as services to the person , such as certain social , health and educational services . these services are provided within a particular context that varies widely amongst member states , due to different cultural traditions . a specific regime should therefore be established for public contracts for these services , with a higher threshold of eur 500 000 . services to the person with values below this threshold will typically not be of interest to providers from other member states , unless there are concrete indications to the contrary , such as union financing for trans - border projects . contracts for services to the person above this threshold should be subject to union - wide transparency . given the importance of the cultural context and the sensitivity of these services , member states should be given wide discretion to organise the choice of the service providers in the way they consider most appropriate . the rules of this directive take account of that imperative , imposing only observance of basic principles of transparency and equal treatment and making sure that contracting authorities are able to apply specific quality criteria for the choice of service providers , such as the criteria set out in the voluntary european quality framework for social services of the european union ' s social protection committee . member states and / or public authorities remain free to provide these services themselves or to organise social services in a way that does not entail the conclusion of public contracts , for example through the mere financing of such services or by granting licences or authorisations to all economic operators meeting the conditions established beforehand by the contracting authority , without any limits or quotas , provided such a system ensures sufficient advertising and complies with the principles of transparency and non - discrimination . ### other categories of services continue by their very nature to have a limited cross - border dimension , namely what are known as services to the person , such as certain social , health and educational services . these services are provided within a particular context that varies widely amongst member states , due to different cultural traditions . by their very nature they are in general difficult to reconcile with internal market rules applying to public procurement . therefore , public authorities should prefer other ways of providing these services and must ensure high quality for the social services provided if they decide nevertheless to apply public procurement procedures . for a better protection of the quality of these services in public contracts , a specific regime should be established , with a higher threshold of eur 500 000 . services to the person with values below this threshold will typically not be of interest to providers from other member states , unless there are concrete indications to the contrary , such as union financing for trans - border projects . contracts for services to the person above this threshold should be subject to union - wide transparency . given the importance of the cultural context and the sensitivity of these services , member states should be given wide discretion to organise the choice of the service providers in the way they consider most appropriate . the essential role and wide discretion of national , regional and local authorities in providing , commissioning and organizing services of general interest is also in line with protocol 26 on services of general interest , article 14 of the treaty on the functioning of the european union and article 36 of the charter of fundamental rights . the rules of this directive take account of that imperative , imposing only observance of basic principles of transparency and equal treatment and making sure that contracting authorities apply specific quality criteria for the choice of service providers , such as the criteria set out in the voluntary european quality framework for social services of the european union ' s social protection committee , ensuring a high level of quality , safety and affordability , equal treatment and the promotion of universal access and of user rights . this means that principles such as quality , continuity , accessibility , availability and comprehensiveness of services , as well as democratic control and accountability are particularly important . member states and / or public authorities remain free to provide these services themselves , including vertical ' in - house ' provision or horizontal inter - municipal cooperation , or to organise social services in any other way that does not entail the conclusion of public contracts , for example through the mere financing of such services or by granting licences or authorisations to all economic operators meeting the conditions established beforehand by the contracting authority , without any limits or quotas , provided such a system ensures sufficient advertising and complies with the principles of transparency and non - discrimination . according to case law of the court , in particular the judgement in case c - 70 / 95 , contracting authorities may be allowed to reserve contracts to non - profit organisation , if such a restriction is provided for by national law and compatible with european law , if it is necessary and proportionate to attain certain societal goals of the national welfare system .


### compliance , at least in an equivalent manner , with obligations established by union legislation in the field of social and labour law or environmental law or of the international social and environmental law provisions listed in annex xi or , where not applicable , with other provisions ensuring an equivalent level of protection ; ### compliance with obligations established by union legislation in the field of environmental law or with obligations relating to social and employment conditions , such as health and safety at workplace including workers who endeavour to improve the health and safety at their workplace , social security and working conditions as set out by eu and national laws , regulations or administrative provisions , arbitration award , collective agreement and contracts , and international labour law provisions listed in annex xi , that apply in the place where the work , service or supply is performed ; these obligations shall also apply in cross - border situations , where workers from one member state provide services in another member state , or , where not applicable , with other provisions ensuring an equivalent level of protection ;


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


### paragraph 1 also applies where a controlled entity which is a contracting authority awards a contract to its controlling entity , or to another legal person controlled by the same contracting authority , provided that there is no private participation in the legal person being awarded the public contract . ### paragraph 1 also applies where a controlled entity which is a contracting authority awards a contract to its controlling entity or entities , or to another legal person controlled by the same contracting authority , provided that there is no private participation in the legal person being awarded the public contract , with the exception of legally enforced forms of private participation .


### contracting authorities may decide not to award a contract to the tenderer submitting the best tender where they have established that the tender does not comply , at least in an equivalent manner , with obligations established by union legislation in the field of social and labour law or environmental law or of the international social and environmental law provisions listed in annex xi . ### contracting authorities shall decide not to award a contract to the tenderer submitting the best tender where they have established that the tender does not comply , at least in an equivalent manner , with obligations established by union legislation in the field of environmental law or with obligations relating to social and employment conditions , such as health and safety at workplace , social security and working conditions as set out by eu and national laws , regulations or administrative provisions , arbitration award , collective agreement and contracts , and international labour law provisions listed in annex xi , that apply in the place where the work , service or supply is performed , including in the subcontracting chain .