### this directive should not apply to certain credit agreements that will eventually be repaid from the sale proceeds of an immovable property and whose primary objective is to facilitate consumption , such as equity release products or other equivalent specialised products . such credit agreements have specific characteristics which are beyond the scope of this directive . an assessment of the borrower ' s creditworthiness , for example , is irrelevant since the payments are made from the creditor to the borrower rather than the other way round . such a transaction would also require , amongst other things , substantially different pre - contractual information . furthermore , other products , such as home reversions , which have comparable functions to reverse mortgages or lifetime mortgages do not involve the provision of credit and so would remain outside the scope of this directive . however this directive should apply to those secured loans whose primary objective is to facilitate the purchase of an immovable property , including those loans that do not require the reimbursement of the capital or those whose purpose is to provide temporary financing between the sale of one immovable property and the purchase of another . ### this directive should not apply to certain credit agreements under which a sum of money is advanced to a consumer who has a proprietary right over a residential immovable property to enable access to equity in that property and that will eventually be repaid from the sale proceeds of the residential immovable property and whose primary objective is to facilitate consumption , such as equity release products or other equivalent specialised products . such credit agreements have specific characteristics which are beyond the scope of this directive . an assessment of the borrower’s creditworthiness , for example , is irrelevant since the payments are made from the creditor to the borrower rather than the other way round . such a transaction would also require , amongst other things , substantially different pre - contractual information . furthermore , other products , such as home reversions , which have comparable functions to reverse mortgages or lifetime mortgages do not involve the provision of credit and so would remain outside the scope of this directive . however this directive should apply to those secured loans whose primary objective is to facilitate the purchase of residential immovable property , including those loans with repayment structures that do not include the reimbursement of the capital or those whose purpose is to provide temporary financing between the sale of one residential immovable property and the purchase of another .


### for reasons of legal certainty , the union framework in the area of credit agreements relating to residential immovable property should be consistent with and complementary to other union acts , particularly in the areas of consumer protection and prudential supervision . essential definitions of terms such as ‘ consumer’ , ‘ creditor’ , ‘ credit intermediary’ , ‘ credit agreements’ and ‘ durable medium’ as well as key concepts used in standard information to designate the financial characteristics of the credit , such as the total cost of the credit to the consumer , the total amount payable by the consumer , the annual percentage rate of charge and the borrowing rate , should be in line with those in directive 2008 / 48 / ec so that the same terminology refers to the same type of facts irrespective of whether the credit is a consumer credit or a credit relating to residential immovable property . member states should therefore ensure in the transposition of this directive that there is a consistency of application and interpretation . ### for reasons of legal certainty , the union framework in the area of credit agreements relating to residential immovable property should be consistent with and complementary to other union acts , particularly in the areas of consumer protection and prudential supervision . essential definitions of terms such as ‘ consumer’ , ‘ creditor’ , ‘ credit intermediary’ , ‘ credit agreements’ and ‘ durable medium’ as well as key concepts used in standard information to designate the financial characteristics of the credit , such as the total cost of the credit to the consumer , the total amount payable by the consumer , the annual percentage rate of charge and the borrowing rate , should be in line with those in directive 2008 / 48 / ec so that the same terminology refers to the same type of facts irrespective of whether the credit is a consumer credit or a credit relating to residential immovable property . member states should therefore ensure in the transposition of this directive that there is an appropriate consistency of application and interpretation .


### in order to ensure a consistent framework for consumers in the area of credit as well as to minimise the administrative burden for creditors and credit intermediaries , the core framework of this directive should follow the structure of directive 2008 / 48 / ec , notably the notions that information included in advertising concerning credit agreements relating to residential immovable property should be provided to the consumer by means of a representative example , that detailed pre - contractual information should be given to him by means of a standardised information sheet , that the consumer should receive adequate explanations before the conclusion of the credit agreement and that creditors should assess the consumer ' s creditworthiness before the provision of a loan . similarly , non - discriminatory access for creditors to relevant credit databases should also be ensured in order to achieve a level playing field with the provisions as guaranteed by directive 2008 / 48 / ec . similarly to directive 2008 / 48 / ec , this directive should ensure the appropriate authorisation , registration and supervision of all creditors providing credit agreements relating to residential immovable property and should introduce requirements for the establishment of , and access to , out - of - court dispute resolution mechanisms . ### in order to ensure a consistent framework for consumers in the area of credit as well as to minimise the administrative burden for creditors and credit intermediaries , the framework of this directive should follow the structure of directive 2008 / 48 / ec to the largest possible extent , notably the notions that information included in advertising concerning credit agreements relating to residential immovable property should be provided to the consumer by means of a representative example , that detailed pre - contractual information should be given to him by means of a standardised information sheet , that the consumer should receive adequate explanations before the conclusion of the credit agreement and that creditors should assess the consumer ' s creditworthiness before the provision of a loan . similarly , non - discriminatory access for creditors to relevant credit databases should also be ensured in order to achieve a level playing field with the provisions as guaranteed by directive 2008 / 48 / ec . similarly to directive 2008 / 48 / ec , this directive should ensure the appropriate authorisation , registration and supervision of all creditors providing credit agreements relating to residential immovable property and should introduce requirements for the establishment of , and access to , out - of - court dispute resolution mechanisms .


### this directive should supplement directive 2002 / 65 / ec of the european parliament and of the council of 23 september 2002 concerning the distance marketing of consumer financial services and amending council directive 90 / 619 / eec and directives 97 / 7 / ec and 98 / 27 / ec which requires that the consumer be informed of the existence or absence of a right of withdrawal and foresees a right of withdrawal . however , while directive 2002 / 65 / ec foresees the possibility for the supplier to communicate pre - contractual information after the conclusion of the contract , this would be inappropriate for contracts for credit agreements relating to residential immovable property given the significance of the financial commitment for the consumer . furthermore , as foreseen in directive 85 / 577 / eec of 20 december 1985 to protect the consumer in respect of contracts negotiated away from business premises , consumers should have a right of withdrawal for credit agreements relating to residential immovable property concluded off - premises and should be informed about the existence of that right . ### this directive should supplement directive 2002 / 65 / ec of the european parliament and of the council of 23 september 2002 concerning the distance marketing of consumer financial services which requires that a consumer who concludes a contract at a distance be informed of the existence or absence of a right of withdrawal and foresees a right of withdrawal . however , while it is appropriate that directive 2002 / 65 regulates the specificities of distance contracts , it is necessary to ensure that the pre - contractual information communicated in such cases meets the requirements of this directive in relation to the specificities of loans related to residential immovable property . for example , while directive 2002 / 65 / ec foresees the possibility for the supplier to communicate pre - contractual information after the conclusion of the contract , this would be inappropriate for contracts for credit agreements relating to residential immovable property given the significance of the financial commitment for the consumer . furthermore , as foreseen in council directive 85 / 577 / eec of 20 december 1985 to protect the consumer in respect of contracts negotiated away from business premises , consumers should have a right of withdrawal for credit agreements relating to residential immovable property concluded off - premises and should be informed about the existence of that right .


### 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 .


### advertising tends to focus on one or several products in particular , while consumers should be able to make their decisions in full knowledge of the range of credit products on offer . in this respect , general information plays an important role in educating the consumer in the broad range of products and services available from a particular creditor or credit intermediary and the key features thereof . consumers should therefore be able at all times to access general information on the credit products available . they should further receive personalised information in good time prior to the conclusion of the credit agreement in order to enable them to compare and reflect on the characteristics of credit products . ### advertising tends to focus on one or several products in particular , while consumers should be able to make their decisions in full knowledge of the range of credit products on offer . in this respect , general information plays an important role in educating the consumer in the broad range of products and services available from a particular creditor or credit intermediary and the key features thereof . consumers should therefore be able at all times to access general information on the credit products available . they should further receive personalised information in good time prior to the conclusion of the credit agreement in order to enable them to compare , receive advice on , and reflect on the characteristics of 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 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 .


### 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 .


### 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 .


### credit intermediaries should be registered with the competent authority of the member state where they have their residence or their head office , provided that they have been authorised in accordance with strict professional requirements in relation to their competence , good repute , and professional indemnity cover . with a view to promoting consumer confidence in credit intermediaries , member states should ensure that authorised credit intermediaries are subject to ongoing and thorough supervision by their home member state competent authority . such requirements should apply at least at the level of the institution ; however , member states may clarify whether such requirements for authorisation and subsequent registration apply to individual employees within the credit intermediary . ### credit intermediaries should be registered with the competent authority of the member state where they have their residence or their head office , provided that they have been authorised in accordance with strict professional requirements in relation to their competence , good repute , and professional indemnity cover . with a view to promoting consumer confidence in credit intermediaries , member states should ensure that authorised credit intermediaries are subject to ongoing and thorough supervision by competent authorities . such requirements should apply at least at the level of the institution ; however , member states may clarify whether such requirements for authorisation and subsequent registration apply to individual employees within the credit intermediary .


### the efficient functioning of this directive will need to be reviewed , as will progress on the establishment of an internal market with a high level of consumer protection for credit agreements relating to residential immovable property . the commission should therefore review the directive five years after the deadline for its transposition . the review should include , among other things , an analysis of the evolution of the market for non - credit institutions providing credit agreements relating to residential immovable property and an assessment on the need for further measures , including a passport for such non - credit institutions , an examination of the necessity to introduce rights and obligations with regard to the post - contractual stage of credit agreements , and an assessment of whether an extension of the scope to include lending to small companies is warranted . ### the efficient functioning of this directive will need to be reviewed , as will progress on the establishment of an internal market with a high level of consumer protection for credit agreements relating to residential immovable property . the commission should therefore review the directive five years after the deadline for its transposition . the review should include , among other things , an analysis of the evolution of the market for non - credit institutions providing credit agreements relating to residential immovable property , and an impact assessment on the implications of early repayments and a possible cap on indemnity . an assessment on the need for further measures , including a passport for such non - credit institutions , an examination of the necessity to introduce rights and obligations with regard to the post - contractual stage of credit agreements , and an assessment of whether an extension of the scope to include lending to small companies is warranted .


### the efficient functioning of this directive will need to be reviewed , as will progress on the establishment of an internal market with a high level of consumer protection for credit agreements relating to residential immovable property . the commission should therefore review the directive five years after the deadline for its transposition . the review should include , among other things , an analysis of the evolution of the market for non - credit institutions providing credit agreements relating to residential immovable property and an assessment on the need for further measures , including a passport for such non - credit institutions , an examination of the necessity to introduce rights and obligations with regard to the post - contractual stage of credit agreements , and an assessment of whether an extension of the scope to include lending to small companies is warranted . ### the efficient functioning of this directive will need to be reviewed , as will progress on the establishment of an internal market with a high level of consumer protection for credit agreements relating to residential immovable property . the commission should therefore review the directive five years after the deadline for its transposition . the review should include , among other things , an analysis of the evolution of the market for non - credit institutions providing credit agreements relating to residential immovable property and an assessment on the need for further measures , including a passport for such non - credit institutions , an examination of the necessity to introduce further rights and obligations with regard to the post - contractual stage of credit agreements , an assessment of the impact of this directive on the market for other forms of credit including those which creditors or consumers may consider substitutable for those within its scope , an assessment of whether an extension of the scope to include lending to small companies is warranted . in addition , the commission should report on options to respond to the wider challenges of over - indebtedness considering all products , markets and actors involved in the credit supply chain including macro - economic aspects and structural measures to protect savers and address the problems related to highly leveraged institutions . where appropriate those assessments should be accompanied by legislative proposals .


### in accordance with point 34 of the interinstitutional agreement on better law - making , member states are encouraged to draw up , for themselves and in the interest of the union , their own tables illustrating , as far as possible , the correlation between this directive and the transposition measures , and to make them public , ### in accordance with point 34 of the interinstitutional agreement on better law - making , it is appropriate that member states draw up , for themselves and in the interest of the union , their own tables illustrating the correlation between this directive and the transposition measures , and to make them public ,


### 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 .


### offers credit agreements within the meaning of article 2 to consumers ; ### offers credit agreements to consumers ;


### assists consumers by undertaking preparatory work in respect of credit agreements within the meaning of article 2 other than as referred to in point ; ### assists consumers by undertaking preparatory work in respect of credit agreements other than as referred to in point ;


### concludes credit agreements within the meaning of article 2 with consumers on behalf of the creditor . ### concludes credit agreements with consumers on behalf of the creditor ; or


### 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 and resources necessary for the efficient and effective performance of their duties .


### member states shall inform the commission of the designation of the competent authorities , indicating any division of the respective duties between different competent authorities . ### member states shall inform the commission and eba of the designation of the competent authorities , indicating any division of the respective duties between different competent authorities .


### pre - contractual information ### general information


### member states shall ensure that general information about credit agreements is made available by creditors or , where applicable , credit intermediaries at all times in a durable medium or in electronic form . ### member states shall ensure that general information about credit agreements is made available by creditors or , where applicable , credit intermediaries at all times in a durable medium or in electronic form and , in any case , is accessible in a web page or similar interface of the creditor or credit intermediary in a clearly audible or easily legible and printable manner .


### member states shall ensure that the creditor and , where applicable , the credit intermediary , without undue delay after the consumer has given the necessary information on his needs , financial situation and preferences in accordance with article 14 , provides the consumer with the personalised information needed to compare the credits available on the market , assess their implications and take an informed decision on whether to conclude a credit agreement . such information , on paper or on another durable medium , shall be provided by means of the european standardised information sheet , as set out in annex ii . ### member states shall ensure that the creditor and , where applicable , the credit intermediary provides the consumer for free with the personalised information needed to compare the credits available on the market , assess their implications and take an informed decision on whether to conclude a credit agreement in good time after the consumer has given the necessary information on his needs , financial situation and preferences in accordance with article 14 and before the consumer is bound by any credit agreement or offer . such information , on paper or on another durable medium , shall be provided by means of the european standardised information sheet , as set out in annex ii .


### 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 copy of the draft credit agreement in a durable medium 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 .


### the creditor and , where applicable , the credit intermediary shall be deemed to have fulfilled the requirements on information provision to the consumer prior to the conclusion of a distance contract as set out in article 3 of directive 2002 / 65 / ec where they have supplied the esis . ### the creditor and , where applicable , the credit intermediary shall be deemed to have fulfilled the requirements on information provision to the consumer prior to the conclusion of a distance contract as set out in article 3 of directive 2002 / 65 / ec only where they have at least supplied the esis .


### the register in which he has been included and the means for verifying that he has been registered ; ### the number of registration , the register in which it has been included and the means for verifying such a registration ;


### where he is acting as a tied credit intermediary he shall identify himself as such and , at the consumer ' s request , provide the names of the creditor for which he is acting ; ### where he is acting as a tied credit intermediary he shall identify himself as such and provide the names of the creditor for which he is acting ;


### credit intermediaries who are not tied shall , at the consumer ' s request , provide information on the variation in levels of commission payable by the different creditors providing the credit agreements being offered to the consumer . the consumer shall be informed that he has the right to request such information . ### credit intermediaries who are not tied shall provide information on the variation in levels of commission payable by the different creditors providing the credit agreements being offered to the consumer . the consumer shall be informed that he has the right to such information .


### 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 .


### member states shall ensure that , before the conclusion of the credit agreement , a thorough assessment of the consumer ' s creditworthiness is conducted by the creditor , based on criteria including the consumer ' s income , savings , debts and other financial commitments . that assessment shall be carried out on the basis of the necessary information , obtained by the creditor or , where applicable , credit intermediary from the consumer and from relevant internal or external sources and shall respect the requirements with regard to necessity and proportionality set out in article 6 of directive 95 / 46 / ec . member states shall ensure that creditors establish appropriate processes to assess the creditworthiness of the consumer . these processes shall be reviewed at regular intervals and up - to - date records of those processes shall be maintained . ### member states shall ensure that , before the conclusion of the credit agreement , a thorough assessment of the consumer ' s creditworthiness is conducted and appropriately verified by the creditor in order to ensure a reasonable capacity to service debt following the conclusion of the credit agreement . that assessment shall be carried out on the basis of the necessary information , obtained by the creditor or , where applicable , credit intermediary from the consumer and from relevant internal or external sources and shall respect the requirements with regard to necessity and proportionality set out in article 6 of directive 95 / 46 / ec . expert risk assessment shall not be replaced by quantitative parameters in automatic underwriting processes nor rely only on externally provided credit scores or on scores based only on credit history .


### early repayment ### sound performance of credit agreements


### please make sure that you are aware of all other taxes and costs associated with this loan . ### please note the following costs associated with this loan : [ notary fees ] [ registration fees ] [ valuation fees ] [ taxes applicable according to national legislation ] [ any other costs related to obligations associated to this loan according to national law ) ] [ fees for any other services contracted with the creditor ]


### where the interest rate is subject to revision and the amount of the instalment after each revision is unknown , the creditor may indicate in the repayment table the same instalment amount for the whole credit duration . in such a case , the creditor shall draw that fact to the attention of the borrower by visually differentiating the amounts which are known from the hypothetical ones . in addition , a clearly legible text shall explain for which periods the amounts represented in the table may vary and why . the creditor shall also include : where relevant , the applicable caps and floors ; an example of how the amount of the instalment would vary where the interest rate increases or decreases by 1 % or by a higher percentage , where this is more realistic given the magnitude of normal changes to the interest rate and where there is a cap , the instalment amount in the worst - case scenario . ### where the interest rate is subject to revision and the amount of the instalment after each revision is unknown , the creditor may indicate in the repayment table the same instalment amount for the whole credit duration . in such a case , the creditor shall draw that fact to the attention of the borrower by visually differentiating the amounts which are known from the hypothetical ones . in addition , a clearly legible text shall explain for which periods the amounts represented in the table may vary and why . the creditor shall also include : where relevant , the applicable caps and floors ; an example of how the amount of the instalment would vary where the interest rate increases or decreases by 1 % or by a higher percentage , where this is more realistic given the magnitude of normal changes to the interest rate ; and where there is a cap , the instalment amount in the worst - case scenario or , where there is no cap , an illustrative worst - case scenario which may be further specified by delegated act .


### 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 to carry out the activities set out in article 3 by a competent authority referred to 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 21 .


### member states shall ensure that a single information point is established to allow quick and easy public access to information from the national register , which shall be compiled electronically and kept constantly updated . this information point shall also provide the identification details of the competent authorities of each member state referred to in article 4 . ### member states shall ensure that a single information point is established to allow quick and easy public access to information from the national register of credit intermediaries , which shall be compiled electronically and kept constantly updated . this information point shall also provide the identification details of the competent authorities of each member state referred to in article 4 . member states shall provide eba with access to such a single information point and eba shall publish on its website references or hyperlinks to this information point .


### the authorisation of credit intermediaries by their home member state shall be effective for the entire territory of the union without a requirement for further authorisation by the competent authorities of the host member state . ### the authorisation of credit intermediaries by their home member state shall be effective for the entire territory of the union without a requirement for further authorisation by the competent authorities of the host member state or the local competent authorities .


### within a period of one month after being informed , those competent authorities shall notify the competent authorities of the host member state concerned of the intention of the credit intermediary and shall at the same time inform the credit intermediary concerned of that notification . ### within a period of one month after being informed , those competent authorities shall notify the competent authorities of the host member state concerned and eba of the intention of the credit intermediary and shall at the same time inform the credit intermediary concerned of that notification .


### competent authorities of different member states shall cooperate with each other whenever necessary for the purpose of carrying out their duties under this directive , making use of their powers whether set out in this directive or in national law . competent authorities shall render assistance to competent authorities of the other member states . in particular , they shall exchange information and cooperate in any investigation or supervisory activities . ### competent authorities of different member states shall cooperate with each other and with eba whenever necessary for the purpose of carrying out their duties under this directive , making use of their powers whether set out in this directive or in eu or national law . in particular , they shall exchange information and cooperate in any investigation or supervisory activities . competent authorities shall render assistance to competent authorities of the other member states .


### the competent authority of the host member state , after informing the competent authority of the home member state shall take all the appropriate measures needed in order to protect consumers and the proper functioning of the markets including by preventing the offending credit intermediaries from initiating any further transactions within their territories . the commission shall be informed of such measures without undue delay . ### the competent authority of the host member state , after informing the competent authority of the home member state shall take all the appropriate measures needed in order to protect consumers and the proper functioning of the markets including by preventing the offending credit intermediaries from initiating any further transactions within their territories . the commission and eba shall be informed of such measures without undue delay .


### 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 .


### expenditure on housing , except for energy efficiency and the use of renewable energy as set out in paragraph 1a , shall be eligible only for those member states that acceded to the european union on or after 1 may 2004 , where the following conditions are met : expenditure shall be programmed within one of the following frameworks : the framework of an integrated urban development approach for areas experiencing or threatened by physical deterioration and social exclusion ; the framework of an integrated approach for marginalised communities . the allocation to housing expenditure shall be either a maximum of 3 % of the erdf allocation to the operational programmes concerned or 2 % of the total erdf allocation . ### expenditure on housing , except for energy efficiency and the use of renewable energy as set out in paragraph 1a , shall be eligible , where the following conditions are met : expenditure shall be programmed within one of the following frameworks : the framework of an integrated urban development approach for areas experiencing or threatened by physical deterioration and social exclusion ; the framework of an integrated approach for marginalised communities . expenditure under point shall be eligible only for those member states that acceded to the european union on or after 1 may 2004 . the allocation to housing expenditure shall be either a maximum of 3 % of the erdf allocation to the operational programmes concerned or 2 % of the total erdf allocation .


### under the european neighbourhood policy , the union offers neighbourhood countries a privileged relationship , building upon a mutual commitment to and promotion of the values of democracy and human rights , the rule of law , good governance and the principles of market economy and sustainable development . ### under the european neighbourhood policy , the union offers neighbourhood countries a privileged relationship , building upon a mutual commitment to and promotion of the values of democracy and human rights , gender equality , the rule of law , good governance and the principles of market economy and sustainable development .


### the achievement of these objectives shall be measured using notably the relevant eu periodic reports on the implementation of the policy , and for paragraphs 2 , and , the relevant indicators established by international organisations and other relevant bodies ; for paragraphs 2 , and the uptake of the eu regulatory framework by the partner countries as relevant ; for paragraphs 2 and , the number of relevant agreements and cooperation actions . the indicators will include , among others , adequately monitored democratic elections , level of corruption , trade flows , indicators enabling measuring internal economic disparities , including employment levels . ### the achievement of these objectives shall be measured using notably the relevant eu periodic reports on the implementation of the policy , and for paragraphs 2 , , and , the relevant indicators established by international organisations and other relevant bodies ; for paragraphs 2 , and the uptake of the eu regulatory framework by the partner countries as relevant ; for paragraphs 2 and , the number of relevant agreements and cooperation actions . the indicators will include , among others , adequately monitored democratic elections , level of corruption , trade flows , indicators enabling measuring internal economic disparities , including employment levels .


### union support under this regulation shall , in principle , be established in partnership with the beneficiaries . the partnership shall involve as appropriate , national , regional and local authorities , other stakeholders , civil society , social partners and other non - state actors , in preparing , implementing and monitoring union support . ### union support under this regulation shall , in principle , be established in partnership with the beneficiaries . the partnership shall involve as appropriate , national , regional and local authorities , other stakeholders , civil society , social partners and other non - state actors , including representatives from women ' s organisations and youth organisations , in preparing , implementing and monitoring union support .


### in the event of crises or threats to democracy , the rule of law , human rights and fundamental freedoms , or of natural or man - made disasters , an ad hoc review of the programming documents may be conducted . such emergency review shall ensure that coherence between union support provided under this regulation and support provided under other union financial instruments is maintained . an emergency review may lead to the adoption of revised programming documents . where this is the case , the commission shall send the revised programming documents to the european parliament and to the council for information within one month of their adoption . ### in the event of crises or threats to democracy , the rule of law , human rights and fundamental freedoms , including women ' s rights , or of natural or man - made disasters , an ad hoc review of the programming documents may be conducted . such emergency review shall ensure that coherence between union support provided under this regulation and support provided under other union financial instruments is maintained . an emergency review may lead to the adoption of revised programming documents . where this is the case , the commission shall send the revised programming documents to the european parliament and to the council for information within one month of their adoption .


### without prejudice to the provisions on the suspension of aid in partnership and cooperation agreements and association agreements with partner countries and regions , where a partner country fails to observe the principles of democracy , the rule of law and respect for human rights and fundamental freedoms , the union shall invite the country concerned to hold consultations in view of finding a solution acceptable to both parties , except in cases of special urgency . where consultation with the country concerned does not lead to a solution acceptable to both parties , or if consultations are refused or in case of special urgency , the council may take appropriate measures in accordance with article 215 of the treaty on the functioning of the european union , which may include full or partial suspension of union support . ### without prejudice to the provisions on the suspension of aid in partnership and cooperation agreements and association agreements with partner countries and regions , where a partner country fails to observe the principles of democracy , the rule of law and respect for human rights and fundamental freedoms , including women’s rights , the union shall invite the country concerned to hold consultations in view of finding a solution acceptable to both parties , except in cases of special urgency . where consultation with the country concerned does not lead to a solution acceptable to both parties , or if consultations are refused or in case of special urgency , the council may take appropriate measures in accordance with article 215 of the treaty on the functioning of the european union , which may include full or partial suspension of union support .


### not all member states have provided for criminal sanctions for some forms of serious breaches of national legislation implementing directive 2003 / 6 / ec . these different approaches undermine the uniformity of conditions of operation in the internal market and may provide an incentive for persons to carry out market abuse in member states which do not provide for criminal sanctions for these offences . in addition , until now there has been no union - wide understanding on which conduct is considered to be such a serious breach . therefore , minimum rules concerning the definition of criminal offences committed by natural and legal persons and of sanctions should be set . common minimum rules would make it also possible to use more effective methods of investigation and effective cooperation within and between member states . convictions for market abuse offences under criminal law often result in extensive media coverage , which helps to deter potential offenders , as it draws public attention to the commitment of competent authorities to tackling market abuse . ### not all member states have provided for criminal sanctions for some forms of serious breaches of national legislation implementing directive 2003 / 6 / ec . these different approaches undermine the uniformity of conditions of operation in the internal market and may provide an incentive for persons to carry out market abuse in member states which do not provide for criminal sanctions for these offences . in addition , until now there has been no union - wide understanding on which conduct is considered to be such a serious breach . therefore , minimum rules concerning the definition of criminal offences committed by natural and legal persons and of sanctions should be set . common minimum rules would make it also possible to use more effective methods of investigation and effective cooperation within and between member states . in light of the aftermath of the financial crisis , it has been evident that market manipulation has a potential for widespread damage on the lives of millions of people . the absence of harmonised criminal sanctions is rightly seen by citizens as creating an environment of impunity where market manipulators can thrive , taking advantage of a borderless market while operating from jurisdiction that are not prosecuting them or have deficient penal frameworks in dealing with these matters . in turn , this creates reasons for an increased societal perception of corruption and the corresponding lack of trust in the rule of law and the legitimacy of institutions . in addition , the imposition of criminal sanctions for market abuse offences will have an increased deterrent effect on potential offenders .


### since the objective of this directive , namely to ensure the availability of criminal sanctions for the most serious market abuse offences across the union , cannot be sufficiently achieved by the member states and can therefore , by reason of the scale and effects of this directive , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty . in accordance with the principle of proportionality , as set out in that article , this directive does not go beyond what is necessary to achieve that objective . ### although at the moment limited statistics are available about the cross - border dimension of insider dealing and market manipulation , considering the integration of financial markets inside the union , it can be safely assumed that many of these offences are not limited to transactions in one member state only . against that background , the objective of this directive , namely to ensure the availability of criminal sanctions for the most serious market abuse offences across the union , cannot be sufficiently achieved by the member states and can therefore , by reason of the scale and effects of this directive , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty . in accordance with the principle of proportionality , as set out in that article , this directive does not go beyond what is necessary to achieve that objective .


### the commission should assess the implementation of this directive in the member states , also with a view to assessing a possible future need for introducing minimum harmonisation of the types and levels of criminal sanctions . ### the commission should assess the implementation of this directive in the member states , also with a view to assessing a possible future need for introducing minimum harmonisation of the types and levels of criminal sanctions . in particular , the commission should seek to obtain information on the cross - border nature of many of the transactions constituting an offence according to this directive , thus respecting the subsidiarity principle .


### disclosing inside information to any other person , unless such disclosure is made in the lawful course of the exercise of duties resulting from employment or profession . ### disclosing inside information to any other person while being aware of the nature of that information , unless such disclosure is made in the lawful course of the exercise of duties resulting from employment or profession ;


### member states shall take the necessary measures to ensure that inciting , aiding and abetting the criminal offences referred to in articles 3 and 4 are punishable as criminal offences . ### member states shall take the necessary measures to ensure that inciting , aiding and abetting and attempting to commit the criminal offences referred to in articles 3 and 4 are punishable as criminal offences .


### 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 .


### 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 no risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . after prior scientific assessment about their merits and their true sustainability , 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 which meet sustainability criteria , which do not compete with food for land , water or other resources and which have no 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


### article 19 of directive 2009 / 28 / ec and article 7d of directive 98 / 70 / ec include provisions for encouraging the cultivation of biofuels in severely degraded and heavily contaminated land as an interim measure for mitigating against indirect land - use change . these provisions are no longer adequate in their current form and need to be integrated in the approach laid out in this directive to ensure that overall actions for minimising emission from indirect land - use change remain coherent . ### article 19 of directive 2009 / 28 / ec and article 7d of directive 98 / 70 / ec include provisions for encouraging the cultivation of biofuels in severely degraded and heavily contaminated land as an interim measure for mitigating against indirect land - use change . these provisions are no longer adequate in their current form and need to be integrated in the approach laid out in this directive to ensure that overall actions for minimising emission from indirect land - use change remain coherent . support must nevertheless be provided for the use of degraded land to grow biofuels , where this does not cause any indirect land - use change .


### the commission shall be empowered to adopt delegated acts pursuant to article 10a concerning the adaptation to technical and scientific progress of annex v , including by the revision of the proposed crop group indirect land - use change values ; the introduction of new values at further levels of disaggregation ; the inclusion of additional values should new biofuel feedstocks come to market as appropriate , review the categories of which biofuels are assigned zero indirect land - use change emissions ; and the development of factors for feedstocks from non - food cellulosic and ligno - cellulosic materials . ### ' the commission shall report by 31 december 2014 , and every two years thereafter , on technical and scientific progress regarding the assessment of crop group indirect land - use change values . the report shall , if appropriate , be accompanied , by a proposal to adapt annex viii to the best available scientific evidence , to revise the proposed crop group indirect land - use change values ; the introduce new values at further levels of disaggregation ; to include additional values should new biofuel feedstocks come to market as appropriate ; and to develop factors for feedstocks from non - food cellulosic and ligno - cellulosic materials .


### 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 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 .


### the intensity of the economic and fiscal surveillance should be commensurate to the severity of the financial difficulties encountered and should take due account of the nature of the financial assistance received , which may range from a mere precautionary support based on eligibility conditions up to a full macro - economic adjustment programme involving strict policy conditionality . ### the intensity of the economic and fiscal surveillance should be commensurate to the severity of the financial difficulties encountered and should take due account of the nature of the financial assistance received , which may range from a mere precautionary support based on eligibility conditions up to a full macro - economic adjustment programme .


### a member state whose currency is the euro should be subject to enhanced surveillance when it is experiencing - or at risk of experiencing - severe financial disturbance , with a view to ensuring its swift return to a normal situation and to protecting the other euro area member states against possible negative spill over effects . this enhanced surveillance should include a wider access to the information needed for a close monitoring of the economic , fiscal and financial situation and a regular reporting to the economic and financial committee or to any sub - committee the latter may designate for that purpose . the same modalities of surveillance should apply to member states requesting precautionary assistance from the european financial stability facility , the european stability mechanism the international monetary fund or another international financial institution . ### a member state whose currency is the euro should be subject to enhanced surveillance when it is experiencing - or at risk of experiencing - severe financial disturbance , with a view to ensuring its swift return to a normal situation and to protecting the other euro area member states against possible negative spill over effects . this enhanced surveillance should be proportionate to the seriousness of the problems and graduated accordingly . it should include a wider access to the information needed for a close monitoring of the economic , fiscal and financial situation and a regular reporting to the competent committee of the european parliament as well as the economic and financial committee or to any sub - committee the latter may designate for that purpose . the same modalities of surveillance should apply to member states requesting precautionary assistance from the european financial stability facility , the european stability mechanism the international monetary fund or another international financial institution .


### the surveillance of the economic and fiscal situation should be strongly reinforced for member states under macro - economic adjustment programme . because of the comprehensive nature of the latter , the other processes of economic and fiscal surveillance should be suspended for the duration of the macro - economic adjustment programme , with a view to avoiding a duplication of reporting obligations . ### the surveillance of the economic and fiscal situation should be strongly reinforced for member states under macro - economic adjustment programme . because of the comprehensive nature of the latter , the other processes of economic and fiscal surveillance should be suspended for the duration of the macro - economic adjustment programme , with a view to avoiding a duplication of reporting obligations . however , when preparing the macroeconomic adjustment programme , all recommendations addressed to the member state in the latter procedures should be taken into account .


### 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 foreseen 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 assess every six months whether to maintain the enhanced surveillance .


### a member state under enhanced surveillance shall , in consultation and cooperation with the commission , acting in liaison with the european central bank , adopt measures aimed at addressing the sources or potential sources of difficulties . ### a member state under enhanced surveillance shall , in consultation and cooperation with the commission , acting in liaison with the european central bank where appropriate , adopt measures aimed at addressing the sources or potential sources of difficulties taking into account any recommendations addressed to them under regulations no 1466 / 97 , 1467 / 97 and 1176 / 2011 and in their national reform programmes and stability and convergence programmes .


### on a request from the commission , the member state under enhanced surveillance shall : ### on the basis of a request from the commission and with the timeframes there set out , the member state under enhanced surveillance shall , in accordance with article 2 :


### 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 .


### 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 relevant committee of the european parliament may invite representatives of the member state concerned to participate to an exchange of views ; ### the relevant committee of the european parliament may invite representatives of the member state concerned and the commission to participate to an exchange of views ;


### 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 wherever possible and 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 forward it to the euro working group , efc or to any subcommittee the latter may designate for that purpose , the relevant committee of the european parliament and the member state parliament . the assessment of the sustainability of the government debt shall be based on prudent macroeconomic and budgetary forecasts using the most up - to - date information and taking proper account of the outcome of the report referred to in point of article 3 as well as any supervisory task exercised according to point of article 3 and shall develop sensitivity analysis . the macroeconomic and budgetary forecasts shall assess the direct and indirect impact of various macroeconomic and financial shocks and adverse developments on the sustainability of government debt , including an estimation of the potential output and macroeconomic multiplier effects . the chosen baseline scenario shall be described with reasoning and shall be built on a balanced account of downside and upside risks . moreover , for all sub - sectors of general government of the respective member state relevant information on contingent liabilities with potentially large impacts on public budgets , including government guarantees , non - performing loans , and liabilities stemming from the operation of public corporations shall be published . likewise , information on the participation of general government in the capital of private and public corporations in respect of economically significant amounts of the respective member state shall also be published , as referred to in article 14 of the council directive 2011 / 85 / eu . the commission shall make public the methodology , the economic and econometric underlying models and assumptions , as well as any other relevant parameter underpinning the assessment of the sustainability of the government debt . the commission shall be empowered to adopt delegated acts in accordance with article 13a specifying the format of the assessment and the elements referred above in this paragraph .


### 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 or the esm , the commission shall prepare – in liaison with the ecb - an analysis of the sustainability of the government debt of the member state concerned , including the impact of any macro - financial adjustment programme on growth forecasts and therefore on 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 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 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 as part of an equivalent , commensurate effort within the euro area , and forward it to the efc or to any subcommittee the latter may designate for that purpose .


### 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 , 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 efc , the emco and the euro working group or any subcommittee the latter may designate for that purpose , as well as the parliament of the member state concerned and the relevant committee of the european parliament . 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 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 efc or any subcommittee the latter may designate for that purpose as well as the european parliament and the relevant parliamentary committee it designates 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 .


### if the monitoring referred to in paragraph 3 highlights significant deviations from the macro - economic adjustment programme , the council , acting by qualified majority on a proposal from the commission , may decide that the member state concerned does not comply with the policy requirements contained in the adjustment programme . ### if the monitoring referred to in paragraph 3 highlights significant deviations from the macro - economic adjustment programme , the council , acting by qualified majority on a proposal from the commission , may decide that the member state concerned does not comply with the policy requirements contained in the adjustment provided that the significant deviation is not mainly due to exogenous shocks or negative spill over effects out of the control of the concerned member state . in case of non compliance the council , acting by qualified majority on a proposal from the commission , shall decide on any change to be made to the macroeconomic adjustment programme . the commission proposal shall fully state the reasons of non compliance and the necessity and proportionality of the changes made to the macroeconomic adjustment programme .


### the relevant committee of the european parliament may invite representatives of the member state concerned to participate to an exchange of views on the progress made in the implementation of the adjustment programme . ### the relevant committee of the european parliament may invite representatives of the member state concerned and the commission to participate to an exchange of views on the progress made in the implementation of the adjustment programme .


### the implementation of regulation no xxx on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the member states in the euro area shall be suspended for the member states subject to a macro - economic adjustment programme approved by the council in accordance with article 6 of this regulation . this suspension shall be applicable for the duration of the macro - economic adjustment programme . ### the implementation of regulation no xxx on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the member states in the euro area shall be suspended for the member states subject to a macro - economic adjustment programme approved in accordance with article 6 of this regulation . this suspension shall be applicable for the duration of the macro - economic adjustment programme .


### the commission shall conduct , in liaison with the ecb , regular review missions in the member state under post programme surveillance to assess its economic , fiscal and financial situation . it shall communicate every semester its findings to the efc or to any subcommittee the latter may designate for that purpose and assess notably whether corrective measures are needed . ### the commission shall conduct , in liaison with the ecb , regular review missions in the member state under post programme surveillance to assess its economic , fiscal and financial situation . it shall communicate every semester its findings to the efc or to any subcommittee the latter may designate for that purpose and to the competent committee of the european parliament and assess notably whether corrective measures are needed .


### the reports should serve to facilitate governments of resource - rich countries in implementing the eiti principles and criteria and account to their citizens for payments such governments receive from undertakings active in the extractive industry or loggers of primary forests operating within their jurisdiction . the report should incorporate disclosures on a country and project basis , where a project is considered as the lowest level of operational reporting unit at which the undertaking prepares regular internal management reports , such as a concession , geographical basin , etc and where payments have been attributed to such projects . in the light of the overall objective of promoting good governance in these countries , the materiality of payments to be reported should be assessed in relation to the recipient government . various criteria on materiality could be envisaged such as payments of an absolute amount , or a percentage threshold and these can be defined through a delegated act . the reporting regime should be subject to a review and a report by the commission within five years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments including issues of competitiveness and energy security . the review should also take into account the experience of preparers and users of the payments information and consider whether it would be appropriate to include additional payment information such as effective tax rates and recipient details , such as bank account information . ### the reports should serve to facilitate governments ' accountability to their citizens for payments they receive from undertakings operating within their jurisdiction . the report should incorporate disclosures on a country by country basis . for undertakings active in the extractive industry or loggers of natural forest disclosure shall also be on a project basis , where a project is considered as equivalent to activities governed by a license , lease , concession or similar legal agreement . where any payment liabilities are incurred on a different basis , reporting shall be on that basis . in the light of the overall objective of promoting good governance all types of payment shall be reported where they are deemed to have a significant impact on a country ' s economy or society on a local , regional or national level and any threshold shall capture such impacts . rules shall be put in place to ensure that any thresholds cannot be circumvented . the reporting regime should be subject to a review and a report by the commission within two years of the entry into force of the directive . the review should take into account international developments , progress towards global standards in this area and report on the impacts of this legislation on third countries , in particular in achieving the objectives of enhanced transparency of payments to governments .


### ‘ government’ means any national , regional or local authority of a member state or of a third country . it includes a department , agency or undertaking controlled by that authority as laid down in article 23 to of this directive . ### ' government ' means any national , regional or local authority of a member state or of a third country that has granted the right of incorporation to , undertakes the regulation of , hosts a permanent establishment for taxation purposes of or receives any payment of the the type noted in article 38 from any constituent entity of an undertaking . it includes a department , agency or undertaking controlled by that authority as laid down in article 23 to of this directive .


### licence fees , rental fees , entry fees and other considerations for licences and / or concessions ; ### licence fees , rental fees , pipeline transit fees , entry fees and other considerations for licences and / or concessions ;


### where payments in kind are made to a government , they shall be reported in value or in volume . where they are reported in terms of value , supporting notes shall be provided to explain how their value has been determined . ### where payments in kind are made to a government , they shall be reported in value and in volume . where they are reported in terms of value , supporting notes shall be provided to explain how their value has been determined .


### the commission shall review and report on the implementation and effectiveness of this chapter , in particular as regards the scope of the reporting obligations and the modalities of the reporting on a project basis . the review should also take into account international developments and consider the effects on competitiveness and security of energy supply . it should be completed at the latest five years after the date of entry into force of this directive . the report shall be submitted to the european parliament and the council , together with a legislative proposal , if appropriate . ### the commission shall review and report on the implementation and effectiveness of this chapter , in particular as regards the scope of the reporting obligations and the modalities of the reporting on a project basis . the review should also take into account international developments , progress towards global standards in this area and report on the impact of this legislation on third countries , in particular in achieving the objectives of enhanced transparency of payments to governments . it should be completed at the latest two years after the date of entry into force of this directive . the report shall be submitted to the european parliament and the council , together with a legislative proposal , if appropriate .


### the application of various national policies creates inconsistencies and fragmentation of the internal market which hamper the roll - out of union - wide services and the completion of the internal market for wireless broadband communications . it could in particular create unequal conditions for access to such services , hamper competition between undertakings established in different member states and stifle investments in more advanced networks and technologies and the emergence of innovative services , thereby depriving citizens and businesses of ubiquitous integrated high - quality services and wireless broadband operators of increased efficiency gains from large - scale more integrated operations . therefore , action at union level regarding certain aspects of radio spectrum assignment should accompany the development of wide integrated coverage of advanced wireless broadband communications services throughout the union . at the same time , member states should retain the right to adopt measures to organise their radio spectrum for public order , public security purposes and defence . ### radio spectrum serves the public interest in a wide range of areas in the member states . in that connection , due account has to be taken of a host of specific national and regional characteristics . member states should therefore also retain the right to adopt measures to organise their radio spectrum which are required to carry out specific cultural and social tasks . alongside terrestrial broadcasting and the cultural and creative sectors , this also includes public order , public security and defence . in the event of disputes between member states regarding the use of spectrum , the commission shall play a supplementary coordinating role in support of the member states .


### coordination and consistency of rights of use for radio spectrum should be improved , at least for the bands which have been harmonised for wireless fixed , nomadic and mobile broadband communications . this includes the bands identified at itu level for international mobile telecommunications advanced systems , as well as bands used for radio local area networks such as 2 . 4 ghz and 5 ghz . it should also extend to bands that may be harmonised in the future for wireless broadband communications , as envisaged in article 3 of the rspp and in the rspg opinion on ' strategic challenges facing europe in addressing the growing radio spectrum demand for wireless broadband ' adopted on 13 june 2013 , such as , in the near future , the 700 mhz , 1 . 5 ghz and 3 . 8 - 4 . 2 ghz bands . ### coordination and consistency of rights of use for radio spectrum should be improved for the bands which have been harmonised for wireless fixed , nomadic and mobile broadband communications . this includes the bands identified at itu level for international mobile telecommunications advanced systems , as well as bands used for radio local area networks such as 2 . 4 ghz and 5 ghz . it should also extend to bands that may be harmonised in the future for wireless broadband communications under directive 2002 / 21 / ec .


### as regards the other main substantive conditions which may be attached to rights of use of radio spectrum for wireless broadband , the convergent application by individual member states of the regulatory principles and criteria set down in this regulation would be favoured by a coordination mechanism whereby the commission and the competent authorities of the other member states have an opportunity to comment in advance of the granting of rights of use by a given member state and whereby the commission has an opportunity , taking into account the views of the member states , to forestall implementation of any proposal which appears to be non - compliant with union law . ### as regards the other main substantive conditions which may be attached to rights of use of radio spectrum for wireless broadband , the convergent application by individual member states of the regulatory principles and criteria set down in this regulation would be favoured by a coordination mechanism whereby the commission and the competent authorities of the other member states have an opportunity to comment in advance of the granting of rights of use by a given member state .


### the internet has developed over the past decades as an open platform for innovation with low access barriers for end - users , content and application providers and internet service providers . the existing regulatory framework aims at promoting the ability of end - users to access and distribute information or run applications and services of their choice . recently , however , the report of the body of european regulators for electronic communications on traffic management practices published in may 2012 and a study , commissioned by the executive agency for consumers and health and published in december 2012 , on the functioning of the market of internet access and provision from a consumer perspective , showed that a significant number of end - users are affected by traffic management practices which block or slow down specific applications . these tendencies require clear rules at the union level to maintain the open internet and to avoid fragmentation of the single market resulting from individual member states ' measures . ### the internet has developed over the past decades as an open platform for innovation with low access barriers for end - users , content and application providers and internet service providers . the existing regulatory framework aims at promoting the ability of end - users to access and distribute information covering all content or run applications and services of their choice , thereby facilitating the transfer free of charge of data used for non - commercial purposes , irrespective of content . recently , however , the report of the body of european regulators for electronic communications on traffic management practices published in may 2012 and a study , commissioned by the executive agency for consumers and health and published in december 2012 , on the functioning of the market of internet access and provision from a consumer perspective , showed that a significant number of end - users are affected by traffic management practices which block or slow down specific applications .


### the freedom of end - users to access and distribute information and lawful content , run applications and use services of their choice is subject to the respect of union and compatible national law . this regulation defines the limits for any restrictions to this freedom by providers of electronic communications to the public but is without prejudice to other union legislation , including copyright rules and directive 2000 / 31 / ec . ### the right of end - users to access and distribute information and content , run applications and use services of their choice is subject to the respect of union and compatible national law .