### in particular , the commission , when adopting such delegated acts shall amend , where necessary , the information items laid down in paragraph 1 of this article . ### in particular , the commission , when adopting such delegated acts shall supplement and update , where necessary , the information items laid down in paragraph 1 .


### the consumer has the opportunity to request for the decision to be reviewed manually . ### the consumer has the opportunity to request for the decision to be reviewed .


### home member states shall ensure that : ### member states shall ensure that :


### credit intermediaries shall be duly authorised to carry out the activities set out in article 3 by a competent authority as defined in article 4 in their home member state . such authorisation shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the professional requirements laid down in article 20 . ### credit intermediaries shall be duly authorised or registered with a competent authority as defined in article 4 in their home member state to carry out the activities set out in article 3 . such authorisation or registration shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the requirements laid down in articles 6 and 21 . what is later on provided for regarding authorisation , applies to registration .


### where a member state lays down such conditions , these shall not make the exercise of the right referred to in paragraph 1 excessively difficult or onerous for the consumer . ### member states shall ensure that the following provisions are complied with : where the credit agreement is funded by callable instruments negotiated in regulated markets , the consumer is entitled to repay the credit agreement at a value determined by market conditions for the callable instrument ; where the credit agreement relates to a loan with a fixed interest rate for part or all of the term of the agreement and is funded by long - term means , the consumer is be entitled to repay the credit agreement : free of charge after expiry of the fixed interest rate period ; or before expiry of the fixed interest rate period , in cases where the consumer has a special interest , upon payment of compensation to the creditor for potential costs directly linked to early repayment of the credit ; in credit agreements not referred to in points or , the consumer is entitled to repay the credit agreement within a period which is no longer than three months after giving notice to the creditor of his desire to do so . in the context of point , the existence of a consumer ' s special interest shall be recognised at least in situations involving involuntary loss of employment , need for mobility , serious illness or death . in the context of point , member states may maintain a statutory or contractual compensation for early repayment may exist but shall not be higher than 1 % of the outstanding debt .


### [ warning on the variability of the instalments ] ### [ warning on the variability of the instalments and different scenarios depending of the evolution on the interest rate ]


### the financial crisis has shown that irresponsible behaviour by market participants can undermine the foundations of the financial system , leading to a lack of confidence among all parties , in particular consumers , and potentially severe social and economic consequences . many consumers have lost confidence in the financial sector and borrowers have found their loans increasingly unaffordable , with defaults and forced sales rising . in view of the problems brought to light in the financial crisis and in the context of efforts to ensure an efficient and competitive internal market , the commission has proposed measures with regard to credit agreements relating to residential immovable property , including a reliable framework on credit intermediation , in the context of delivering responsible and reliable markets for the future and restoring consumer confidence . ### as the g20 has acknowledged , poor quality lending related to residential immovable property and the associated financial instruments were at the heart of the financial crisis . the crisis has shown how irresponsible behaviour by market participants can undermine the foundations of the financial system , leading to a lack of confidence among all parties , in particular consumers , and potentially severe social and economic consequences . many consumers have lost confidence in the financial sector and borrowers have found their loans increasingly unaffordable , with defaults and forced sales rising . in response to this , the g20 has committed to improving underwriting standards of loans related to residential immovable property and has commissioned expert advice from the financial stability board which in turn has recommended a number of principles and specific areas for improvement . in view of the problems brought to light in the financial crisis and in the context of efforts to ensure an efficient and competitive internal market that ensures financial stability and consumer protection , the commission has proposed measures with regard to credit agreements relating to residential immovable property , including a reliable framework on credit intermediation , in the context of delivering responsible and reliable markets for the future and restoring consumer confidence .


### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes a personalised recommendation on suitable credit agreements for that consumer ' s needs and financial situation and when it is being provided and when it is not . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , and on a close inspection of the consumer ' s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer ' s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . ### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes an expert personalised recommendation on suitable credit agreements for that consumer ' s needs and financial situation and when it is being provided and when it is not . it is therefore important to ensure that the service of advice is a distinct service which is separately remunerated in a manner transparent to the consumer . consumers should also be able to rely on the competence of the adviser . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances and should also have the necessary professional competence to provide expert advice . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , and on a close inspection of the consumer ' s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer ' s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . the act of making a binding offer to a consumer does not in itself constitute advice .


### an assessment of the need to extend its scope to small companies . ### an assessment of the need to extend its scope to small companies as borrowers ;


### member states shall ensure that the consumer has a statutory or contractual right to discharge his obligations under a credit agreement prior to the expiry of that agreement . in such cases , he shall be entitled to a reduction in the total cost of the credit , such a reduction consisting of the interest and the costs for the remaining duration of the contract . ### member states shall ensure that the consumer has a statutory or contractual right to discharge fully or partially his obligations under a credit agreement prior to the expiry of that agreement . in such cases , he shall be entitled to a reduction in the total cost of the credit , such a reduction consisting of the interest and the costs for the remaining duration of the contract .


### ' non - credit institution ' means any natural or legal person who grants or promises to grant credit within the meaning of article 2 in the course of his trade , business or profession and is not a credit institution . ### ' non - credit institution ' means any creditor that is not a credit institution .


### whether there is a possibility of early repayment and , where applicable , a description of the conditions attached to early repayment ; ### a description of the conditions attached to early repayment ;


### home member states shall ensure that the appropriate level of knowledge and competence is determined on the basis of recognised qualifications or experience . ### member states shall ensure that the appropriate level of knowledge and competence is determined on the basis of recognised qualifications or experience .


### the powers to adopt delegated acts referred to in articles 6 , 8 , 9 , 10 , 14 and 16 shall be conferred on the commission for an indeterminate period of time following the entry into force of this directive . 2 . as soon as it adopts a delegated act , the commission shall notify it simultaneously to the european parliament and to the council . 3 . the power to adopt delegated acts is conferred on the commission subject to the conditions laid down in articles 27 and 28 . ### the power to adopt delegated acts is conferred on the commission subject to the conditions laid down in this article . 2 . the powers to adopt delegated acts referred to in articles 6 , 8 , 9a , 10 , 12 , 16 , 18h and 18k shall be conferred on the commission for a period of four years from . . . * the commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the four - year period . the delegation of power shall be tacitly extended for periods of an identical duration , unless the european parliament or the council opposes such extension not later than three months before the end of each period . 3 . the delegation of power referred to in articles 6 , 8 , 9a , 10 , 12 , 16 , 18h , and 18k may be revoked at any time by the european parliament or by the council . a decision to revoke shall put an end to the delegation of the power specified in that decision . it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein . it shall not affect the validity of any delegated acts already in force . 4 . as soon as it adopts a delegated act , the commission shall notify it simultaneously to the european parliament and to the council . 5 . a delegated act adopted pursuant to articles 6 , 8 , 9a , 10 , 12 , 16 , 18h , and 18k shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of three months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by three months at the initiative of the european parliament or of the council . ______________ *oj please insert date of the date of entry into force of this directive .


### where there is more than one competent authority on its territory , a member state shall ensure that those authorities collaborate closely so that they can discharge their respective duties effectively . ### where there is more than one competent authority on its territory , a member state shall ensure that those authorities collaborate closely among themselves and with eba so that they can discharge their respective duties effectively .


### the standard information shall be easily legible or clearly audible as appropriate , depending on the medium used for advertising and marketing . ### the standard information shall be easily legible or clearly audible as appropriate , depending on the medium used for advertising and marketing . any information provided throughout the advertising must adhere to the displayed representative example . member states shall adopt criteria for defining a representative example .


### consultation of a credit database is a useful element in the assessment of creditworthiness . some member states require creditors to assess the creditworthiness of consumers on the basis of a consultation of the relevant database . creditors should also be able to consult the credit database over the lifetime of the loan in order to identify and assess the potential for default . in the event that such a potential is evident or objectively demonstrated , the creditor should contact the consumer to discuss the different options to avoid the possibility of default , such as a rescheduling of the loan . in any event , the creditor should not consider withdrawing the credit without having first explored all possible alternatives with the consumer to avoid default . pursuant to directive 95 / 46 / ec of the european parliament and of the council of 24 october 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data , consumers should be informed by creditors of the consultation of the credit database prior to its consultation , and should have the right to access the information held on them in such a credit database in order to , where necessary , rectify , erase or block the personal data concerning them processed therein where it is inaccurate or has been unlawfully processed . ### consultation of a credit database is a useful element in the assessment of creditworthiness . some member states require creditors to assess the creditworthiness of consumers on the basis of a consultation of the relevant database . creditors should also be able to consult the credit database over the lifetime of the loan in order to identify and assess the potential for default . pursuant to directive 95 / 46 / ec of the european parliament and of the council of 24 october 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data , consumers should be informed by creditors of the consultation of the credit database prior to its consultation , and should have the right to access the information held on them in such a credit database in order to , where necessary , rectify , erase or block the personal data concerning them processed therein where it is inaccurate or has been unlawfully processed .


### member states shall designate the competent authorities empowered to ensure implementation of this directive and shall ensure that they are granted all the powers necessary for the performance of their duties . ### member states shall designate the competent authorities empowered to ensure the national implementation and enforcement of this directive and shall ensure that they are granted all the powers necessary for the performance of their duties .


### an assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer ' s ability to repay over the lifetime of the loan including , but not limited to , the consumer ' s income , regular expenditures , credit score , past credit history , ability to handle interest rate adjustments , and other existing credit commitments . additional provisions may be necessary to further elaborate on the different elements that may be taken into consideration in a creditworthiness assessment . member states may issue guidance on the method and criteria to assess a consumer ' s creditworthiness , for example by setting limits on loan - to - value or loan - to - income ratios . ### an assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer ' s ability to repay over the lifetime of the loan including , but not limited to , the consumer ' s income , regular expenditures , ability to handle interest rate adjustments , and other existing credit commitments . member states may issue additional guidance on the method and criteria to assess a consumer ' s creditworthiness , for example by setting limits on loan - to - value or loan - to - income ratios in addition to the reference levels for such ratios which should be established to identify when stricter prudential or other supervisory measures are warranted .


### member states shall ensure that consumers provide creditors and , where applicable , credit intermediaries with complete and correct information on their financial situation and personal circumstances in the context of the credit application process . that information should be supported , when necessary , by documentary evidence from independently verifiable sources . ### member states shall ensure that creditors and , where applicable , credit intermediaries request relevant , complete and correct information on their financial situation and personal circumstances in the course of the credit application process . that information should be supported , when necessary , by documentary evidence from independently verifiable sources . the request has to be clear and easily understandable for consumers . the creditor and where applicable the credit intermediary shall provide the consumer with a documentation of the request and the consumers reply on paper or another durable medium when handing over the esis referred to in art 9 .


### for the purposes of this directive , ' advice ' constitutes a separate service from the granting of a credit . such a service can only be marketed as advice when the remuneration of the individual providing the service is transparent to the consumer . ### member states shall ensure that advice is provided as a separate service from the granting of a credit and that such a service can only be marketed as advice when : the natural or legal person providing the advice is an appropriately authorised creditor or credit intermediary ; the adviser has the appropriate professional competence ; and the remuneration for the service is transparent to the consumer and explicitly agreed with the consumer before the provision of the service .


### where a decision to reject an application for credit is based on data obtained through the consultation of a database or the lack of data therein , the creditor should inform the consumer thereof , of the name of the database consulted and of any other elements required by directive 95 / 46 / ec so as to enable the consumer to exercise his right to access and , where necessary , rectify , erase or block personal data concerning him and processed therein . where a decision to reject an application for credit is based on an automated decision or on systematic methods such as credit scoring systems , the creditor should inform the consumer thereof and explain the logic involved in the decision and of the arrangements enabling the consumer to request the automated decision to be reviewed manually . however , the creditor should not be required to give such information when to do so would be prohibited by other union legislation such as legislation on money laundering or the financing of terrorism . neither should such information be provided where to do so would be contrary to the objectives of public policy or public security such as the prevention , investigation , detection or prosecution of criminal offences . ### where a decision to reject an application for credit is based on data obtained through the consultation of a database or the lack of data therein , the creditor should inform the consumer thereof , of the name of the database consulted and of any other elements required by directive 95 / 46 / ec so as to enable the consumer to exercise his right to access and , where necessary , rectify , erase or block personal data concerning him and processed therein . however , the creditor should not be required to give such information when to do so would be prohibited by other union legislation such as legislation on money laundering or the financing of terrorism . neither should such information be provided where to do so would be contrary to the objectives of public policy or public security such as the prevention , investigation , detection or prosecution of criminal offences .


### in order to take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union . in particular , the commission should be empowered to adopt delegated acts to specify the details concerning the professional requirements applicable to creditors ' staff and credit intermediaries , the criteria used for assessing the creditworthiness of the consumer and in ensuring that credit products are not unsuitable for the consumer , and further harmonisation of key terms such as ‘ default’ the registration criteria and data processing conditions to be applied to credit databases . ### in order to ensure consistent harmonisation and take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the power to adopt acts in accordance with article 290 tfeu should be delegated to the commission , in particular to specify the details concerning the professional requirements applicable to creditors ' staff , credit intermediaries and valuers , further harmonisation of key terms such as ‘ default’ , the registration criteria and data processing conditions to be applied to credit databases , the characteristics of the emki and the procedure for assigning it , common principles for valuation standards and for defining independence , and the avoidance and management of conflicts of interest in valuation of residential immovable property . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing - up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council .


### an assessment of consumer satisfaction with the esis ; ### an assessment of compliance with the esis and consumer use , understanding and satisfaction thereof ;


### powers are delegated to the commission in accordance with article 26 and subject to the conditions of articles 27 and 28 , to amend the formula and the assumptions used to calculate the annual percentage rate of charge as set out in annex i . ### the commission shall be empowered to adopt delegated acts in accordance with article 26 , to update the formula and the assumptions used to calculate the annual percentage rate of charge as set out in annex i .


### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer . ### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure that consumers have a statutory right to early repayment ; nevertheless , the exercise of such a right should be subject to conditions depending on the nature and funding of the credit agreement . in order to ensure market efficiency , member states could also provide that , to preserve its indemnity , the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit while avoiding penalising the consumer . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer .


### credit intermediaries shall be duly authorised to carry out the activities set out in article 3 by a competent authority as defined in article 4 in their home member state . such authorisation shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the professional requirements laid down in article 20 . ### credit intermediaries shall be duly authorised or registered with a competent authority as defined in article 4 in their home member state to carry out the activities set out in article 3 . such authorisation or registration shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the requirements laid down in articles 6 and 21 . what is later on provided for regarding authorisation , applies to registration .


### member states shall ensure that the creditor or credit intermediary , upon request of the consumer , provides the consumer with a copy of the draft credit agreement free of charge . this provision shall not apply in cases where the creditor is unwilling , at the time of the request , to proceed to the conclusion of the credit agreement with the consumer . ### member states shall ensure that the creditor or credit intermediary provides the consumer with a written copy of the draft credit agreement free of charge . this provision shall not apply in cases where the creditor is unwilling , at the time of the request , to proceed to the conclusion of the credit agreement with the consumer .


### member states shall ensure that the consumer has a statutory or contractual right to discharge his obligations under a credit agreement prior to the expiry of that agreement . in such cases , he shall be entitled to a reduction in the total cost of the credit , such a reduction consisting of the interest and the costs for the remaining duration of the contract . ### member states shall ensure that the consumer has a statutory right to discharge his obligations under a credit agreement prior to the expiry of that agreement . in such cases , he shall be entitled to a reduction in the total loan cost , such a reduction consisting of the interest and the costs for the remaining duration of the contract .


### any additional information which the creditor or where applicable , the credit intermediary , may provide to the consumer shall be given in a separate document which may be annexed to the esis . ### any additional information , including legal warnings , which the creditor or where applicable , the credit intermediary , is required to provide to the consumer shall be provided in a separate document annexed to the esis .


### an examination of the necessity to introduce rights and obligations with regard to the post - contractual stage of credit agreements ; ### an examination of the necessity to introduce additional rights and obligations with regard to the post - contractual stage of credit agreements ;


### the natural persons within the management of creditors and credit intermediaries who are responsible for or have a role in the intermediation , advice or approval of the credit agreement , possess appropriate knowledge and competence in relation to credit agreements . ### the natural persons within the management or oversight of creditors and credit intermediaries who are responsible for or have a role in the product design , intermediation , advice or approval of the credit agreement , possess appropriate knowledge and competence in relation to credit agreements and the relevant market .


### the consumer may still need additional assistance in order to decide which credit agreement , within the range of products proposed , is the most appropriate for his needs and financial situation . creditors , and where the transaction is through a credit intermediary , credit intermediaries should provide such assistance in relation to the credit products which they offer to the consumer . the relevant information , as well as the essential characteristics of the products proposed , should therefore be explained to the consumer in a personalised manner so that the consumer can understand the effects which they may have on his economic situation . member states could determine when and to what extent such explanations are to be given to the consumer , taking into account the particular circumstances in which the credit is offered , the consumer ' s need for assistance and the nature of individual credit products . ### the consumer may still need additional assistance in order to decide which credit agreement , within the range of products proposed , is the most appropriate for his needs and financial situation . creditors , and where the transaction is through a credit intermediary , credit intermediaries should provide such explanations about the credit products which they offer to the consumer . the relevant information , as well as the essential characteristics of the products proposed , should therefore be explained to the consumer in a personalised manner so that the consumer can understand the effects which they may have on his economic situation . member states could determine when and to what extent such explanations are to be given to the consumer , taking into account the particular circumstances in which the credit is offered , the consumer ' s need for assistance and the nature of individual credit products . such explanations and the provision of personalised information should not necessarily constitute a personal recommendation .


### the purpose of this directive is to lay down a framework for certain aspects of the laws , regulations and administrative provisions of the member states concerning credit agreements relating to residential immovable property for consumers and concerning certain aspects of the prudential and supervisory requirements for credit intermediaries and creditors . ### this directive lays down a framework for certain aspects of the laws , regulations and administrative provisions of the member states concerning credit agreements relating to residential immovable property for consumers and for associated prudential and supervisory requirements .


### the creditor shall also list each of the costs by category , indicating their amount , to whom they are to be paid and at what moment . where the amount is not known , the creditor shall provide a possible range or an indication of how the amount will be calculated . ### the creditor shall also provide a disaggregated list of each of the costs , indicating their amount , to whom they are to be paid and at what moment . where the amount is not known , the creditor shall provide a possible range or an indication of how the amount will be calculated .


### at the same time , it is important take into consideration the specificities of credit agreements relating to residential immovable property which justify a differentiated approach . given the nature and the possible consequences of a credit agreement relating to residential immovable property for the consumer , advertising materials and personalised pre - contractual information should include specific risk warnings , for instance about the nature and implications of taking out a security . following what already existed as a voluntary approach by the industry concerning home loans , general pre - contractual information should be made available at all times in addition to the personalised pre - contractual information . furthermore , a differentiated approach is justifiable in order to take into consideration the lessons learnt from the financial crisis in order to ensure that loan origination takes place in a sound manner . in this respect , the provisions on the creditworthiness assessment should be strengthened in comparison to consumer credit , more precise information should be provided by credit intermediaries on their status and relationship with the creditors in order to disclose potential conflicts of interest , and all actors involved in the origination of credit agreements relating to residential immovable property should be adequately authorised , registered and supervised . ### at the same time , it is important to take into consideration the specificities of credit agreements relating to residential immovable property which justify a differentiated approach . given the nature and the possible consequences of a credit agreement relating to residential immovable property for the consumer , advertising materials and personalised pre - contractual information should include specific risk warnings , for instance about the nature and implications of taking out a security . following what already existed as a voluntary approach by the industry concerning home loans , general pre - contractual information should be made available at all times in addition to the personalised pre - contractual information . furthermore , a differentiated approach is justifiable in order to take into consideration the lessons learnt from the financial crisis in order to ensure that loan origination takes place in a sound manner . in this respect , the provisions on the creditworthiness assessment should be strengthened in comparison to consumer credit , more precise information should be provided by credit intermediaries on their status and relationship with the creditors in order to disclose potential conflicts of interest , aspects of the credit agreement and conduct of creditors after the credit agreement has been concluded should be regulated and all actors involved in the origination of credit agreements relating to residential immovable property should be adequately authorised , registered and supervised .


### member states shall require that , when granting , intermediating or advising on credit and , where appropriate , ancillary services to consumers , the creditor or the credit intermediary acts honestly , fairly and professionally in accordance with the best interests of the consumer . ### member states shall require that , when granting , intermediating or advising on credit and , where appropriate , ancillary services to consumers , the creditor or the credit intermediary acts honestly , fairly and professionally . when offering their products or implementing the contract the creditor or credit intermediaries shall act in the best interests of the consumer .


### an assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer ' s ability to repay over the lifetime of the loan including , but not limited to , the consumer ' s income , regular expenditures , credit score , past credit history , ability to handle interest rate adjustments , and other existing credit commitments . additional provisions may be necessary to further elaborate on the different elements that may be taken into consideration in a creditworthiness assessment . member states may issue guidance on the method and criteria to assess a consumer ' s creditworthiness , for example by setting limits on loan - to - value or loan - to - income ratios . ### an assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer ' s ability to repay over the lifetime of the loan including , but not limited to , the consumer ' s income , regular expenditures , ability to handle interest rate adjustments , and other existing credit commitments . member states may issue additional guidance on the method and criteria to assess a consumer ' s creditworthiness , for example by setting limits on loan - to - value or loan - to - income ratios in addition to the reference levels for such ratios which should be established to identify when stricter prudential or other supervisory measures are warranted .


### the powers to adopt delegated acts referred to in articles 6 , 8 , 9 , 10 , 14 and 16 shall be conferred on the commission for an indeterminate period of time following the entry into force of this directive . 2 . as soon as it adopts a delegated act , the commission shall notify it simultaneously to the european parliament and to the council . 3 . the power to adopt delegated acts is conferred on the commission subject to the conditions laid down in articles 27 and 28 . ### the power to adopt delegated acts is conferred on the commission subject to the conditions laid down in this article . 2 . the powers to adopt delegated acts referred to in articles 6 , 8 , 9a , 10 , 12 , 16 , 18h and 18k shall be conferred on the commission for a period of four years from . . . * the commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the four - year period . the delegation of power shall be tacitly extended for periods of an identical duration , unless the european parliament or the council opposes such extension not later than three months before the end of each period . 3 . the delegation of power referred to in articles 6 , 8 , 9a , 10 , 12 , 16 , 18h , and 18k may be revoked at any time by the european parliament or by the council . a decision to revoke shall put an end to the delegation of the power specified in that decision . it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein . it shall not affect the validity of any delegated acts already in force . 4 . as soon as it adopts a delegated act , the commission shall notify it simultaneously to the european parliament and to the council . 5 . a delegated act adopted pursuant to articles 6 , 8 , 9a , 10 , 12 , 16 , 18h , and 18k shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of three months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by three months at the initiative of the european parliament or of the council . ______________ *oj please insert date of the date of entry into force of this directive .


### in order to take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union . in particular , the commission should be empowered to adopt delegated acts to specify the details concerning the professional requirements applicable to creditors ' staff and credit intermediaries , the criteria used for assessing the creditworthiness of the consumer and in ensuring that credit products are not unsuitable for the consumer , and further harmonisation of key terms such as ‘ default’ the registration criteria and data processing conditions to be applied to credit databases . ### in order to ensure consistent harmonisation and take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the power to adopt acts in accordance with article 290 tfeu should be delegated to the commission , in particular to specify the details concerning the professional requirements applicable to creditors ' staff , credit intermediaries and valuers , further harmonisation of key terms such as ‘ default’ , the registration criteria and data processing conditions to be applied to credit databases , the characteristics of the emki and the procedure for assigning it , common principles for valuation standards and for defining independence , and the avoidance and management of conflicts of interest in valuation of residential immovable property . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing - up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council .


### an indicative example of the total cost of credit for the consumer and annual percentage rate of charge ; ### a representative example of the total cost of credit for the consumer and annual percentage rate of charge ;


### the european parliament and the council should have two months from the date of notification to object to a delegated act . at the initiative of the european parliament or the council , it should be possible to prolong that period by one month with regard to significant areas of concern . it should also be possible for the european parliament and the council to inform the other institutions of their intention not to raise objections . ### the european parliament and the council should have three months from the date of notification to object to a delegated act . at the initiative of the european parliament or the council , it should be possible to prolong that period by three months with regard to significant areas of concern . it should also be possible for the european parliament and the council to inform the other institutions of their intention not to raise objections .


### the financial crisis has shown that irresponsible behaviour by market participants can undermine the foundations of the financial system , leading to a lack of confidence among all parties , in particular consumers , and potentially severe social and economic consequences . many consumers have lost confidence in the financial sector and borrowers have found their loans increasingly unaffordable , with defaults and forced sales rising . in view of the problems brought to light in the financial crisis and in the context of efforts to ensure an efficient and competitive internal market , the commission has proposed measures with regard to credit agreements relating to residential immovable property , including a reliable framework on credit intermediation , in the context of delivering responsible and reliable markets for the future and restoring consumer confidence . ### as the g20 has acknowledged , poor quality lending related to residential immovable property and the associated financial instruments were at the heart of the financial crisis . the crisis has shown how irresponsible behaviour by market participants can undermine the foundations of the financial system , leading to a lack of confidence among all parties , in particular consumers , and potentially severe social and economic consequences . many consumers have lost confidence in the financial sector and borrowers have found their loans increasingly unaffordable , with defaults and forced sales rising . in response to this , the g20 has committed to improving underwriting standards of loans related to residential immovable property and has commissioned expert advice from the financial stability board which in turn has recommended a number of principles and specific areas for improvement . in view of the problems brought to light in the financial crisis and in the context of efforts to ensure an efficient and competitive internal market that ensures financial stability and consumer protection , the commission has proposed measures with regard to credit agreements relating to residential immovable property , including a reliable framework on credit intermediation , in the context of delivering responsible and reliable markets for the future and restoring consumer confidence .


### in order to facilitate the emergence of a smoothly functioning internal market with a high level of consumer protection in the area of credit agreements relating to residential immovable property , a harmonised union framework needs to be established in a number of areas . it is further necessary to establish harmonised standards in order to ensure that consumers looking for credit agreements relating to residential immovable property are able to do so confident in the knowledge that the institutions they interact with act in a professional and responsible manner . ### in order to facilitate the emergence of a smoothly functioning , transparent , efficient and competitive internal market in the area of credit agreements relating to residential immovable property , a harmonised union framework needs to be established in a number of areas . this framework should be achieved through consistent , flexible and fair mortgage credit agreements in a way which promotes sustainable lending and borrowing and hence achieves a high level of consumer protection . it is further necessary to establish harmonised standards in order to ensure that consumers looking for credit agreements relating to residential immovable property are able to do so confident in the knowledge that the institutions they interact with act in a professional and responsible manner . in some areas it is appropriate to have a high degree of harmonisation to facilitate the internal market . in other areas , given the significant differences between the residential immovable property markets , structures of loans available or customary and macro - economic contexts , it is appropriate to set up a union framework that allows some tailoring of standards to the local context .


### in the case of credit agreements containing clauses allowing variations in the borrowing rate and , where applicable , in the charges contained in the annual percentage rate of charge but unquantifiable at the time of calculation , the annual percentage rate of charge shall be calculated on the assumption that the borrowing rate and other charges will be calculated at the level set at the signature of the contract . ### in the case of credit agreements containing clauses allowing variations in the borrowing rate and , where applicable , in the charges contained in the annual percentage rate of charge but unquantifiable at the time of calculation , the annual percentage rate of charge shall be calculated on the assumption that the borrowing rate and other charges will be calculated at the level implied by the credit agreement at the signature of the contract .


### an assessment of consumer satisfaction with the esis ; ### an assessment of compliance with the esis and consumer use , understanding and satisfaction thereof ;


### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer . ### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure that consumers have a statutory right to early repayment ; nevertheless , the exercise of such a right should be subject to conditions depending on the nature and funding of the credit agreement . in order to ensure market efficiency , member states could also provide that , to preserve its indemnity , the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit while avoiding penalising the consumer . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer .


### member states shall ensure that the consumer has a statutory or contractual right to discharge his obligations under a credit agreement prior to the expiry of that agreement . in such cases , he shall be entitled to a reduction in the total cost of the credit , such a reduction consisting of the interest and the costs for the remaining duration of the contract . ### member states shall ensure that the consumer the right to discharge his obligations under a credit agreement prior to the expiry of that agreement . in the case of credit agreements with a fixed borrowing rate , member states may make the exercise of that right subject to the existence of a legitimate interest on the part of the consumer , in which connection the wish to pay a lower borrowing rate shall not in itself be deemed to constitute a legitimate interest .


### where the opening of an account is obligatory in order to obtain the credit , the costs of maintaining such an account , the costs of using a means of payment for both payment transactions and drawdowns on that account , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer , unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer . ### where the opening of a current account is obligatory as an ancillary service in order to obtain the credit , the costs of maintaining such an account , the costs of using a means of payment for both payment transactions and drawdowns on that account , and other costs relating to payment transactions shall be included in the total loan cost to the consumer , unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer .


### member states shall ensure that consumers provide creditors and , where applicable , credit intermediaries with complete and correct information on their financial situation and personal circumstances in the context of the credit application process . that information should be supported , when necessary , by documentary evidence from independently verifiable sources . ### member states shall ensure that consumers provide creditors and , where applicable , credit intermediaries with complete and correct information on their financial situation and personal circumstances in the course of the credit application process . that information should be supported , when necessary , by documentary evidence from independently verifiable sources .


### the natural persons within the management of creditors and credit intermediaries who are responsible for or have a role in the intermediation , advice or approval of the credit agreement , possess appropriate knowledge and competence in relation to credit agreements . ### the natural persons within the management or oversight of creditors and credit intermediaries who are responsible for or have a role in the product design , intermediation , advice or approval of the credit agreement , possess appropriate knowledge and competence in relation to credit agreements and the relevant market .


### credit intermediaries shall be duly authorised to carry out the activities set out in article 3 by a competent authority as defined in article 4 in their home member state . such authorisation shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the professional requirements laid down in article 20 . ### credit intermediaries shall be duly authorised or registered with a competent authority as defined in article 4 in their home member state to carry out the activities set out in article 3 . such authorisation or registration shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the requirements laid down in articles 6 and 21 . what is later on provided for regarding authorisation , applies to registration .


### the union seeks to promote , develop and consolidate the values of liberty , democracy , respect for human rights and fundamental freedoms , principles of equality and the rule of law on which it is founded through dialogue and cooperation with third countries . ### the union seeks to promote , develop and consolidate the values of liberty , democracy , respect for human rights and fundamental freedoms , respect for women’s rights and gender equality , principles of equality and the rule of law on which it is founded through dialogue and cooperation with third countries .


### union support provided under this regulation to each partner country shall be differentiated in form and amounts according to the partner country ' s commitment to reforms and its progress in implementing these reforms . such differentiation shall reflect the level of ambition of the country ' s partnership with the union , its progress in building deep and sustainable democracy , its progress in implementing agreed reform objectives , the country ' s needs and capacities , and the potential impact of union support . ### union support provided under this regulation to each partner country shall be differentiated in form and amounts according to the partner country ' s commitment to reforms and its progress in implementing these reforms . such differentiation shall reflect the level of ambition of the country ' s partnership with the union , its progress in building deep and sustainable democracy and in achieving equality between men and women , its progress in implementing agreed reform objectives , the country ' s needs and capacities , and the potential impact of union support .


### when in possession of inside information , using that information to acquire or dispose of financial instruments to which that information relates for one ' s own account or for the account of a third party . this also includes using inside information to cancel or amend an order concerning a financial instrument to which that information relates where that order was placed before entering into possession of that inside information ; or ### possessing inside information , and , while being aware of the nature of that information , using , that information directly or indirectly to acquire or dispose of , to recommend the acquisition or disposal of , or to induce another person to acquire or dispose of , financial instruments to which that information relates for one ' s own account or for the account of a third party . this also includes using inside information to cancel or amend an order concerning a financial instrument to which that information relates where that order was placed before entering into possession of that inside information and was effectively cancelled or amended ;


### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities , in part due to competition for public subsidies with established food crop based biofuel technologies . further incentives should be provided by increasing the weighting of advanced biofuels towards 10% target for transport set in directive 2009 / 28 / ec compared to conventional biofuels . in this context , only advanced biofuels with low estimated indirect land use change impacts and high overall greenhouse gas savings should be supported as part of the post 2020 renewable energy policy framework . ### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities . further incentives should be provided by increasing the weighting of advanced biofuels towards 10% target for transport set in directive 2009 / 28 / ec compared to conventional biofuels . establishing progressively more ambitious mandatory targets for advanced biofuels will send a clear signal of support for them at union level . in this context , advanced biofuels with estimated low indirect land use change impacts and high overall greenhouse gas savings should be especially supported as part of the post 2020 renewable energy policy framework .


### the list of feedstock set out in annex ix may be adapted to scientific and technical progress , in order to ensure a correct implementation of the accounting rules set out in this directive . the commission shall be empowered to adopt delegated acts in accordance with article 25 concerning the list of feedstock set out in annex ix ### the list of feedstock set out in annex ix may be adapted to scientific and technical progress , in order to ensure a correct implementation of the accounting rules set out in this directive . this review must take full account of the investments made by undertakings in compliance with the current legislation , and of their need to obtain a return on their investments . the commission shall be empowered to adopt delegated acts in accordance with article 25 concerning the list of feedstock set out in annex ix ' .


### the following annex ix is added : ‘ annex ix part a . feedstocks whose contribution towards the target referred to in article 3 shall be considered to be four times their energy content algae . biomass fraction of mixed municipal waste , but not separated household waste subject to recycling targets under article 11 of directive 2008 / 98 / ec of the european parliament and of the council of 19 november 2008 on waste and repealing certain directives . biomass fraction of industrial waste . straw . animal manure and sewage sludge . palm oil mill effluent and empty palm fruit bunches . tall oil pitch . crude glycerine . bagasse . grape marcs and wine lees . nut shells . husks . cobs bark , branches , leaves , saw dust and cutter shavings . part b . feedstocks whose contribution towards the target referred to in article 3 shall be considered to be twice their energy content used cooking oil . animal fats classified as category i and ii in accordance with ec / 1774 / 2002 laying down health rules concerning animal by - products not intended for human consumption . 16 non - food cellulosic material . ligno - cellulosic material except saw logs and veneer logs . __________________ 16 oj l 273 , 10 . 10 . 2002 , p . 1 . ### the following annex ix is added : ‘ annex ix the following biofuels shall be regarded as advanced biofuels : biological material in the case of which relevant alternative uses are associated with significant emissions of methane or nitrous oxide without usable energy being generated . ’


### annex ix part a . feedstocks whose contribution towards the target referred to in article 3 shall be considered to be four times their energy content algae . biomass fraction of mixed municipal waste , but not separated household waste subject to recycling targets under article 11 of directive 2008 / 98 / ec of the european parliament and of the council of 19 november 2008 on waste and repealing certain directives . biomass fraction of industrial waste . straw . animal manure and sewage sludge . palm oil mill effluent and empty palm fruit bunches . tall oil pitch . crude glycerine . bagasse . grape marcs and wine lees . nut shells . husks . cobs bark , branches , leaves , saw dust and cutter shavings . part b . feedstocks whose contribution towards the target referred to in article 3 shall be considered to be twice their energy content used cooking oil . animal fats classified as category i and ii in accordance with ec / 1774 / 2002 laying down health rules concerning animal by - products not intended for human consumption . non - food cellulosic material . ligno - cellulosic material except saw logs and veneer logs . ### annex ix list of advanced biofuels the biofuel coming from the following feedstocks will be considered advanced biofuels algae . biomass fraction of mixed municipal waste , but not separated household waste subject to recycling targets under article 11 of directive 2008 / 98 / ec of the european parliament and of the council of 19 november 2008 on waste and repealing certain directives . biomass fraction of industrial waste . straw . animal manure and sewage sludge . palm oil mill effluent and empty palm fruit bunches . tall oil pitch . crude glycerine . bagasse . grape marcs and wine lees . nut shells . husks . cobs bark , branches , leaves , saw dust and cutter shavings . used cooking oil . animal fats classified as category i and ii in accordance with ec / 1774 / 2002 laying down health rules concerning animal by - products not intended for human consumption . non - food cellulosic material . ligno - cellulosic material except saw logs and veneer logs .


### to prepare for the transition towards advanced biofuels and minimise the overall indirect land use change impacts in the period to 2020 , it is appropriate to limit the amount of biofuels and bioliquids obtained from food crops as set out in part a of annex viii to directive 2009 / 28 / ec and part a of annex v to directive 98 / 70 / ec that can be counted towards targets set out in directive 2009 / 28 / ec . without restricting the overall use of such biofuels , the share of biofuels and bioliquids produced from cereal and other starch rich crops , sugar and oil crops that can be counted towards the targets of directive 2009 / 28 / ec should be limited to the share of such biofuels and bioliquids consumed in 2011 . ### to prepare for the transition towards advanced biofuels and minimise the overall indirect land use change impacts in the period to 2020 , it is appropriate to limit the amount of biofuels and bioliquids obtained from food crops and other energy crops grown on land as set out in part a of annex viii to directive 2009 / 28 / ec and part a of annex v to directive 98 / 70 / ec that can be counted towards targets set out in directive 2009 / 28 / ec and directive 98 / 70 / ec . without restricting the overall use of such biofuels , the share of biofuels and bioliquids produced from cereal and other starch rich crops , sugar , oil crops and other energy crops grown on land that can be counted towards the targets of directive 2009 / 28 / ec and directive 98 / 70 / ec should be limited to the share of such biofuels and bioliquids consumed in 2011 . furthermore it is appropriate to establish mandatory targets for advanced biofuels to be phased in gradually from 2016 to 2020 , which will provide predictability and stability for investors .


### fuel suppliers shall by 31 march each year report to the authority designated by the member state , the biofuel production pathways , volumes , and the life cycle greenhouse gas emissions per unit of energy , including the estimated indirect land - use change emissions set out in annex v member states shall report these data to the commission . ### fuel suppliers shall by 31 march each year report to the authority designated by the member state , following procedures established with an eye to avoiding administrative burdens , the biofuel production pathways , volumes , and the life cycle greenhouse gas emissions per unit of energy , including the estimated indirect land - use change emissions set out in annex v . member states shall report these data to the commission


### to prepare for the transition towards advanced biofuels and minimise the overall indirect land use change impacts in the period to 2020 , it is appropriate to limit the amount of biofuels and bioliquids obtained from food crops as set out in part a of annex viii to directive 2009 / 28 / ec and part a of annex v to directive 98 / 70 / ec that can be counted towards targets set out in directive 2009 / 28 / ec . without restricting the overall use of such biofuels , the share of biofuels and bioliquids produced from cereal and other starch rich crops , sugar and oil crops that can be counted towards the targets of directive 2009 / 28 / ec should be limited to the share of such biofuels and bioliquids consumed in 2011 . ### to prepare for the transition towards advanced biofuels and minimise the overall indirect land use change impacts in the period to 2020 , it is appropriate to set binding targets for advanced biofuels , in which connection there is a need for clear , effective , predictable rules , which must not result in premature closing down of existing production infrastructure entailing severe losses of value to europe .


### to prepare for the transition towards advanced biofuels and minimise the overall indirect land use change impacts in the period to 2020 , it is appropriate to limit the amount of biofuels and bioliquids obtained from food crops as set out in part a of annex viii to directive 2009 / 28 / ec and part a of annex v to directive 98 / 70 / ec that can be counted towards targets set out in directive 2009 / 28 / ec . without restricting the overall use of such biofuels , the share of biofuels and bioliquids produced from cereal and other starch rich crops , sugar and oil crops that can be counted towards the targets of directive 2009 / 28 / ec should be limited to the share of such biofuels and bioliquids consumed in 2011 . ### to prepare for the transition towards advanced biofuels and minimise the overall indirect land use change impacts in the period to 2020 , it is appropriate to limit the amount of biofuels and bioliquids obtained from food crops and from dedicated energy crops as set out in part a of annex viii to directive 2009 / 28 / ec and part a of annex v to directive 98 / 70 / ec that can be counted towards targets set out in directive 2009 / 28 / ec and directive 98 / 70 / ec . the share of biofuels and bioliquids produced from cereal and other starch rich crops , sugar and oil crops as well as from dedicated energy crops that can be counted towards the targets of directive 2009 / 28 / ec and directive 98 / 70 / ec should be limited to the share of such biofuels and bioliquids consumed in 2011 . after 2020 the share of energy from biofuels produced on land shall be phased out


### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing estimated indirect land use change emissions factors into the appropriate sustainability criteria to be applied from 1st january 2021 and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3d of directive 2009 / 28 / ec . ### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing estimated indirect land use change emissions factors into the appropriate sustainability criteria to be applied from 1st january 2021 , an impact analysis on undertakings in the sector that have already made investments and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3d of directive 2009 / 28 / ec .


### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing estimated indirect land use change emissions factors into the appropriate sustainability criteria to be applied from 1st january 2021 and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3d of directive 2009 / 28 / ec . ### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing sustainability criteria to be applied for incentivizing biofuels from non - land using feedstocks under article 3d of directive 2009 / 28 / ec


### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing estimated indirect land use change emissions factors into the appropriate sustainability criteria to be applied from 1st january 2021 and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3d of directive 2009 / 28 / ec . ### the commission should organize further detailed and transparent research aimed at quantifications of indirect land use change and report the findings before 1 . july 2014 . the report should also be accompanied by a legislative proposal to introduce estimated indirect land use change emissions factors into the appropriate sustainability criteria in directives 98 / 70 / ec and 2009 / 28 / ec by december 31 , 2015 .


### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities , in part due to competition for public subsidies with established food crop based biofuel technologies . further incentives should be provided by increasing the weighting of advanced biofuels towards 10% target for transport set in directive 2009 / 28 / ec compared to conventional biofuels . in this context , only advanced biofuels with low estimated indirect land use change impacts and high overall greenhouse gas savings should be supported as part of the post 2020 renewable energy policy framework . ### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is justifiable to make maximum use of waste as a raw material , for which reason it is desirable to provide extra support for waste - based feedstocks , and consideration should be given to the possibility of including further wastes , and to the use of new technologies . it is appropriate , therefore , to encourage greater production of such advanced biofuels provided that this is accompanied by a comprehensive review of the feasibility of the 2020 targets and does not result in yet greater dependence of eu member states on foreign sources of energy carriers and raw materials .


### in order to ensure the long - term competitiveness of bio - based industrial sectors , and in line with the 2012 communication ‘ innovating for sustainable growth : a bioeconomy for europe’11 and the roadmap to a resource efficient europe12 , promoting integrated and diversified biorefineries across europe , enhanced incentives under directive 2009 / 28 / ec should be set in a way that gives preference to the use of biomass feedstocks that do not have a high economic value for other uses than biofuels . ### in order to ensure the long - term competitiveness of bio - based industrial sectors , and in line with the 2012 communication ‘ innovating for sustainable growth : a bioeconomy for europe’11 and the roadmap to a resource efficient europe12 , promoting integrated and diversified biorefineries across europe , enhanced incentives under directive 2009 / 28 / ec should be set in a way that gives preference to the use of biomass feedstocks that do not have a high economic value for other uses than biofuels and that use waste materials for energy purposes only in accordance with the waste hierarchy .


### the 5% limit set up in article 3d does not affect the member states ' freedom to arrange their own trajectory as to compliance with this prescribed share of conventional biofuels within the overall 10% target . as a consequence , the access to the market of the biofuels produced by the installations in operation before the end of 2013 remains fully open . therefore this amending directive does not affect the legitimate expectations of the operators of such installations . ### the 5% limit set up in article 3d does not affect the member states ' freedom to arrange their own trajectory as to compliance with this prescribed share of conventional biofuels within the overall 10% target . as a consequence , the access to the market of the biofuels produced by the installations in operation before the end of 2013 remains fully open . therefore this amending directive does not affect the legitimate expectations of the operators of such installations and does not compromise any investments already made .


### in order to ensure the long - term competitiveness of bio - based industrial sectors , and in line with the 2012 communication ‘ innovating for sustainable growth : a bioeconomy for europe’11 and the roadmap to a resource efficient europe12 , promoting integrated and diversified biorefineries across europe , enhanced incentives under directive 2009 / 28 / ec should be set in a way that gives preference to the use of biomass feedstocks that do not have a high economic value for other uses than biofuels . ### in order to ensure the long - term competitiveness of bio - based industrial sectors , and in line with the 2012 communication ‘ innovating for sustainable growth : a bioeconomy for europe’11 and the roadmap to a resource efficient europe12 , promoting integrated and diversified biorefineries across europe , enhanced incentives under directive 2009 / 28 / ec should be set in a way that gives preference to the use of biomass feedstocks that do not have a high economic value for other uses than biofuels that use waste materials for energy purposes only in accordance with the waste hierarchy , that do not compete for the use of land and water so to protect land and food rights and that do not reduce soil organic matter resulting in a negative environmental impact for the local ecosystem


### the commission , in liaison with the ecb , shall monitor the progress made in the implementation of the adjustment programme and inform every three months the efc or any subcommittee the latter may designate for that purpose . the member state concerned shall give the commission its full cooperation . it shall in particular provide to the commission all the information that the latter deems necessary for the monitoring of the programme . article 3 shall apply . ### the commission , in liaison with the ecb , shall monitor the progress made in the implementation of the adjustment programme and inform every three months the competent committee of the european parliament as well as the efc or any subcommittee the latter may designate for that purpose . the member state concerned shall give the commission its full cooperation . it shall in particular provide to the commission all the information that the latter deems necessary for the monitoring of the programme . article 3 shall apply .


### where it is concluded - on the basis of the assessment foreseen in paragraph 4 - that further measures are needed and the financial situation of the member state concerned has significant adverse effects on the financial stability of the euro area , the council , acting by qualified majority on a proposal from the commission , may recommend to the member state concerned to seek financial assistance and to prepare a macro - economic adjustment programme . the council may decide to make this recommendation public . ### where it is concluded - on the basis of the assessment foreseen in paragraph 4 - that further measures are needed and the financial situation of the member state concerned has significant adverse effects on the financial stability of the euro area , on a proposal from the commission , the council , acting by qualified majority and with the consent of the european parliament , may recommend to the efsf or to the esm to offer financial assistance , linked to appropriate conditionality , to the member state concerned . the council can only make this recommendation public insofar as financial assistance is granted .


### the monitoring provided for by article 6 of this regulation shall be deemed to replace the monitoring and assessment of the european semester for economic policy coordination provided for by article 2a of regulation no 1466 / 97 on the strengthening of the surveillance of budgetary positions and coordination of economic policies . ### the monitoring provided for by article 6 of this regulation shall replace the monitoring and assessment of the european semester for economic policy coordination provided for by article 2a of regulation no 1466 / 97 on the strengthening of the surveillance of budgetary positions and coordination of economic policies .


### the commission - in liaison with the ecb - shall examine with the member state concerned the changes that may be needed to its adjustment programme . the council , acting by a qualified majority on a proposal from the commission , shall decide on any change to be made to the adjustment programme . ### the commission - in liaison with the ecb and objectively taking into account the immediate and medium term consequences of the adjustment programme namely on growth and employment - shall examine with the member state concerned the changes that may be needed to its adjustment programme . the competent committee of the european parliament may invite the member state and the commission to discuss the need and conditions of such adjustments . the council , acting by qualified majority on a proposal from the commission , shall decide on any change to be made to the adjustment programme


### a member state wishing to obtain financial assistance from one or several other states , the efsf , the esm , the international monetary fund or another institution outside of the union framework shall immediately inform the council , the commission and the ecb of its intention . the efc , or any subcommittee the latter may designate for that purpose , shall hold a discussion on this envisaged request , after having received an assessment from the commission . ### a member state wishing to obtain financial assistance from one or several other states , the efsf , the esm , the international monetary fund or another institution outside of the union framework shall immediately inform the council , the commission , the european parliament and the ecb of its intention . the competent committee of the european parliament together with the efc , or any subcommittee the latter may designate for that purpose , shall hold a discussion on this envisaged request , after having received an assessment from the commission .


### the commission - in liaison with the ecb - shall examine with the member state concerned the changes that may be needed to its adjustment programme . the council , acting by a qualified majority on a proposal from the commission , shall decide on any change to be made to the adjustment programme . ### the commission - in liaison with the ecb - shall examine with the member state concerned the changes that may be needed to its adjustment programme . on a proposal from the commission , the council , acting by qualified majority and with the consent of the european parliament shall decide on any change to be made to the adjustment programme


### where financial assistance is sought from the efsf or the esm , the commission shall prepare – in liaison with the ecb and wherever possible , the imf - an analysis of the sustainability of the government debt of the member state concerned , including the member state ' s ability to repay the envisaged financial assistance , and forward it to the efc or to any subcommittee the latter may designate for that purpose . ### where financial assistance is sought from the efsf , the efsm or the esm , the commission shall prepare – in liaison with the ecb and where appropriate , the imf - an analysis of the sustainability of the government debt and the actual or potential financing needs of the member state concerned , including the member state ' s ability to repay the envisaged financial assistance , and send it to the efc


### the commission shall conduct , in liaison with the ecb , regular review missions in the member state under surveillance to verify the progresses made in the implementation of the measures mentioned in paragraph 1 , 2 and 3 . it shall communicate every quarter its findings to the economic and financial committee - or to any subcommittee the latter may designate for that purpose - and assess notably whether further measures are needed . these review missions shall replace the onsite monitoring foreseen in article 10a of regulation no 1467 / 97 . ### the commission shall conduct , in liaison with the ecb and the esas as necessary and , where appropriate , the imf , regular review missions in the member state under enhanced surveillance to verify the progresses made in the implementation of the measures mentioned in paragraph 1 , 2 and 3 . it shall communicate every quarter its findings to the economic and financial committee and assess notably whether further measures are needed . these review missions shall replace the onsite monitoring provided for in article 10a of regulation no 1467 / 97 .


### where it is concluded - on the basis of the assessment foreseen in paragraph 4 - that further measures are needed and the financial situation of the member state concerned has significant adverse effects on the financial stability of the euro area , the council , acting by qualified majority on a proposal from the commission , may recommend to the member state concerned to seek financial assistance and to prepare a macro - economic adjustment programme . the council may decide to make this recommendation public . ### where it is concluded - on the basis of the assessment foreseen in paragraph 4 - that further measures are needed and the financial and economic situation of the member state concerned has significant adverse effects on the proper functioning of the monetary union , the european council , acting by qualified majority on a proposal from the commission , may recommend to the efsf or to the esm to offer financial assistance , linked to appropriate conditionality , and to prepare a macro - economic adjustment programme . the council can only decide to make this recommendation public insofar as financial assistance is granted .


### the adjustment programme and the changes thereto provided for by article 6 of this regulation shall be deemed to replace the submission of stability programmes provided for by article 4 of council regulation no 1466 / 97 . ### the adjustment programme and the changes thereto provided for by article 6 of this regulation shall replace the submission of stability programmes provided for by article 4 of council regulation no 1466 / 97 .


### the council , acting by qualified majority on a proposal from the commission , shall approve the adjustment programme . ### the commission shall be empowered to adopt the adjustment programme under the delegated acts procedure .


### the council , acting by qualified majority on a proposal from the commission , shall approve the adjustment programme . ### on a proposal from the commission , the council , acting by qualified majority and with the consent of the european parliament , shall approve the adjustment programme .


### the commission shall decide to make a member state receiving a financial assistance on a precautionary basis from one or several other states , the efsf , the esm or any other international financial institution , such as the imf , subject to enhanced surveillance . the commission shall establish a list of the precautionary financial assistance instruments concerned and keep it updated to take into account possible changes in the financial support policy of the efsf , esm or of any other relevant international financial institution . ### the commission shall decide to make a member state receiving a financial assistance from one or several other states , the efsf , the esm or any other international financial institution , such as the imf , subject to enhanced surveillance . the commission shall establish a list of the financial assistance instruments concerned and keep it updated to take into account possible changes in the financial support policy of the efsf , esm or of any other relevant international financial institution .


### the unprecedented global crisis that has hit the world over the last three years has seriously damaged economic growth and financial stability and provoked a strong deterioration in the government deficit and debt position of the member states , leading a number of them to seek financial assistance outside the framework of the union . ### the unprecedented global crisis that has hit the world over the last three years has seriously damaged economic growth and financial stability and provoked a strong deterioration in the government deficit and debt position of the member states , leading a number of them to seek financial assistance .


### the adjustment programme provided for by article 6 of this regulation shall also be deemed to replace as appropriate the reports provided for by article 3 and article 5 of council regulation no 1467 / 97 ; ### the adjustment programme provided for by article 6 of this regulation shall also replace as appropriate the reports provided for by article 3 and article 5 of council regulation no 1467 / 97 ;


### the commission may decide to make a member state experiencing severe difficulties with regard to its financial stability subject to enhanced surveillance . the member state concerned shall be given the possibility to express its views beforehand . the commission shall decide every six months whether to prolong the enhanced surveillance . ### the commission may decide , following an in - depth review as provided for in article 5 of regulation no 1176 / 2011 where it concluded that a member state is experiencing or is threatened with severe difficulties with regard to its financial stability , to subject such member state to enhanced surveillance . the member state concerned shall be given the possibility to express its views beforehand . the commission shall inform the european parliament and the council of its decision and of the views expressed by the member state concerned . within one month of such communication , the european parliament , acting by a majority of its component members , or the council , by qualified majority , may decide to repeal that decision . the commission shall decide every six months whether to prolong the enhanced surveillance . the european parliament , acting by a majority of its component members or the council , by qualified majority , may decide to repeal that decision within one month .


### the monitoring provided for by article 6 of this regulation shall be deemed to replace the monitoring provided for by article 10 and article 10a of council regulation no 1467 / 97 and the monitoring underlying any decision provided for by article 4 and 6 of regulation no 1467 / 97 . ### the monitoring provided for by article 6 of this regulation shall replace the monitoring provided for by article 10 and article 10a of council regulation no 1467 / 97 and the monitoring underlying any decision provided for by article 4 and 6 of regulation no 1467 / 97 .


### a member state receiving financial assistance from one or several other states , the imf , the efsf or the esm shall prepare in agreement with the commission - acting in liaison with the ecb - a draft adjustment programme aimed at re - establishing a sound and sustainable economic and financial situation and restoring its capacity to finance itself fully on the financial markets . the draft adjustment programme shall take due account of the current recommendations addressed to the member state concerned under articles 121 , 126 and / or 148 of the treaty - and its actions to comply with them - while aiming at broadening , strengthening and deepening the required policy measures . ### a member state receiving financial assistance from one or several other states , the imf , the efsf or the esm shall present to the commission a macroeconomic adjustment programme which shall build on and substitute the economic partnership programme whenever it exists , aimed at re - establishing a sound and sustainable economic and financial situation and restoring its capacity to finance itself fully on the financial markets . where such an adjustment programme is required , financing shall be provided with adequate interest rates and adequate maturities of , where possible , no less than thirty years . the draft adjustment programme shall take due account of the current recommendations addressed to the member state concerned under articles 121 , 126 and / or 148 of the treaty - and its actions to comply with them .


### the commission shall decide to make a member state receiving a financial assistance on a precautionary basis from one or several other states , the efsf , the esm or any other international financial institution , such as the imf , subject to enhanced surveillance . the commission shall establish a list of the precautionary financial assistance instruments concerned and keep it updated to take into account possible changes in the financial support policy of the efsf , esm or of any other relevant international financial institution . ### the commission shall decide to make a member state receiving a financial assistance from one or several other states , the efsf , the esm or any other international financial institution , such as the imf , subject to enhanced surveillance . the council may , within 10 days of adoption of such a decision , repeal it by simple majority .