### – 2 . 2 support action on rare diseases including creation of european reference networks , information and registries based on the common criteria for accreditation ; ### – 2 . 2 support action on rare diseases including information and registries based on the common criteria for accreditation ;


### exchange best practices on key health issues such as smoking prevention , abuse of alcohol and obesity ; ### exchange best practices on key health issues such as smoking prevention , the use of drugs , including ethnobotanical substances , abuse of alcohol and obesity ;


### – 3 . 2 supporting the prevention of chronic diseases including cancer , by sharing knowledge and best practice and developing joint activities ; ### – 3 . 2 supporting the prevention of chronic diseases including cardiovascular diseases , hepatitis b and c and cancer , by sharing knowledge and best practice and developing joint activities ;


### no later then mid - 2018 , an evaluation report shall be established by the commission on the achievement of the objectives of all the measures , the efficiency of the use of resources and its european added value , in view of a decision on the renewal , modification or suspension of the measures . the evaluation shall additionally address the scope for simplification , its internal and external coherence , the continued relevance of all objectives , as well as the contribution of the measures to the union priorities of smart , sustainable and inclusive growth . it shall take into account evaluation results on the long - term impact of the predecessor programme . ### no later then mid - 2018 , an evaluation report shall be established by the commission and presented to the european parliament on the achievement of the objectives of all the measures , the efficiency of the use of resources and its european added value , in view of a decision on the renewal , modification or suspension of the measures . the evaluation shall additionally address the scope for simplification , its internal and external coherence , the continued relevance of all objectives , as well as the contribution of the measures to the union priorities of smart , sustainable and inclusive growth . it shall take into account evaluation results on the long - term impact of the predecessor programme .


### 2 . health innovation and e - health : increasing the interoperability of patient registers and other e - health solutions ; support european cooperation on e - health , notably on registries and uptake by health professionals . this will serve the european voluntary network on e - health set up by the directive 2011 / 24 / eu of the european parliament and of the council . ### 2 . health innovation and e - health : increasing the interoperability of patient registers and other e - health solutions such as the internet of things ; support european cooperation on e - health , notably on registries and uptake by health professionals . this will serve the european voluntary network on e - health set up by the directive 2011 / 24 / eu of the european parliament and of the council .


### 3 . health workforce : develop effective health workforce forecasting and planning in terms of numbers , scope of practice and skills , monitor mobility and migration of health professionals , establish efficient recruitment and retention strategies and capacity development . ### 3 . health workforce : develop effective health workforce forecasting and planning in terms of numbers , scope of practice and skills including the ability to make use of new information systems and other advanced technologies , monitor mobility and migration of health professionals , establish efficient recruitment and retention strategies and capacity development .


### the agency , in collaboration with the member states , shall develop standard web - based structured forms for the reporting of suspected adverse reactions by health - care professionals and patients . ### the agency , in collaboration with the member states , shall develop standard web - based structured forms for the reporting of suspected adverse reactions by health - care professionals and patients . all citizens of the member states of the union shall have the option of submitting online declarations in their mother tongue . the agency shall also make available to the public any other means for patients to report undesirable effects , such as a dedicated telephone number or special email address .


### within 30 days of receipt of the report by the pharmacovigilance risk assessment advisory committee , the committee for medicinal products for human use shall consider the report and adopt an opinion on the maintenance , variation , suspension or revocation of the marketing authorisation concerned . ### within 30 days of adoption of the report , the european pharmacovigilance committee shall adopt an opinion on the maintenance , variation , suspension or revocation of the marketing authorisation concerned .


### the opinions and decisions referred to in paragraphs 3 to 5 of this article shall be made public by means of the european medicines safety web - portal referred to in article 26 . ### the assessment reports , opinions and decisions referred to in paragraphs 3 to 5 of this article shall be made public by means of the european medicines safety web - portal referred to in article 26 .


### ' criminal activity ' means any kind of criminal involvement in the commission of the following serious crimes : ### ' criminal activity ' means any kind of criminal involvement in the commission of serious offences , including at least :


### the following paragraphs 2a to 2d are inserted : ### the following paragraphs 2a to 2da are inserted :


### the following point is added : ### the following point – is added :


### a financial contribution to the eib to the provisioning and capital allocation for loans or guarantees to be issued by the eib on its own resources under the risk - sharing instrument for project bonds in the field of ten - t and ten - e . the union exposure to the risk sharing instrument , including management fees and other eligible costs , shall be strictly limited to the amount of the union contribution to the risk - sharing instrument for project bonds and there shall be no further liability on the general budget of the union . the residual risk inherent in all operations shall be borne by the eib . the detailed terms and conditions for implementing the risk - sharing instrument for project bonds , including its monitoring and control , shall be laid down in a delegation agreement between the commission and the eib . in 2012 and 2013 , an amount of up to eur 210 million , of which up to eur 200 million for transport projects and up to eur 10 million for energy projects , may be redeployed for the risk - sharing instrument for project bonds in accordance with the procedure referred to in article 15 from the ten - t and ten - e budget lines , respectively . the risk - sharing instrument for project bonds may reuse any revenues received within the investment period for new loans and guarantees . ### a financial contribution to the eib to the provisioning and capital allocation for loans or guarantees to be issued by the eib on its own resources under the risk - sharing instrument for project bonds in the field of ten - t and ten - e . the union exposure to the risk sharing instrument for project bonds , including management fees and other eligible costs , shall be strictly limited to the amount of the union contribution to the risk - sharing instrument for project bonds and there shall be no further liability on the general budget of the union . the residual risk inherent in all operations shall be borne by the eib . the detailed terms and conditions for implementing the risk - sharing instrument for project bonds , including its monitoring and control , shall be laid down in a delegation agreement between the commission and the eib , which shall be submitted to the european parliament and published in the official journal of the european union . in 2012 and 2013 , an amount of up to eur 210 million , of which up to eur 200 million for transport projects and up to eur 10 million for energy projects , may be redeployed for the risk - sharing instrument for project bonds in accordance with the procedure referred to in article 15 from the ten - t and ten - e budget lines , respectively . the risk - sharing instrument for project bonds may reuse any revenues received within the investment period for new loans and guarantees .


### under the european innovation partnership on active and healthy ageing established under the innovation union , ict solutions are expected to play an important role in meeting its goals of two additional healthy life years by 2020 as well as improving quality of life for citizens and improving efficiency of care systems in the union . its strategic implementation plan sets out priorities for accelerating and scaling up innovation in active and healthy ageing across the union , in three domains : prevention and health promotion , care and cure , and independent living and social inclusion . ### under the european innovation partnership on active and healthy ageing established under the innovation union , ict solutions are expected to play an important role in meeting its goals of two additional healthy life years by 2020 as well as improving quality of life for citizens without any discrimination on the basis of age , gender , ethnicity , disability , religious or sexual orientation and improving efficiency of care systems in the union . its strategic implementation plan sets out priorities for accelerating and scaling up innovation in active and healthy ageing across the union , in three domains : prevention and health promotion , care and cure , and independent living and social inclusion ; the age and gender mainstreaming is an indispensable method and instrument in policy - making in the relevant domains .


### the joint implementation of the aal programme requires an implementation structure . the participating states have agreed on the implementation structure for the aal programme and set up in 2007 the ambient assisted living association iasbl , an international non - profit organisation under belgian law . given that , according to the report on the interim evaluation , the existing governance structure of aal jp has proven to be efficient and of good quality , the aala should be used as implementation structure and should take the role as allocation and monitoring body of the aal programme . the aala should manage the union financial contribution and should ensure an efficient implementation of the aal programme . ### the joint implementation of the aal programme requires an implementation structure . the participating states have agreed on the implementation structure for the aal programme and set up in 2007 the ambient assisted living association iasbl , an international non - profit organisation under belgian law . given that , according to the report on the interim evaluation , the existing governance structure of aal jp has proven to be efficient and of good quality , the aala should be used as implementation structure and should take the role as allocation and monitoring body of the aal programme . the aala should manage the union financial contribution and should ensure an efficient implementation of the aal programme . differences between women and men in economic and social fields should be taken into account in designing and implementing the aal programme . attention should also be paid in ensuring a better participation of women in research and policy process .


### in order to protect the financial interests of the union , the commission should have the right to reduce , withhold or terminate the union financial contribution where the aal programme is implemented inadequately , partially or late , or the participating states do not contribute , or contribute partially or late , to the financing of the aal programme . those rights should be provided for in the delegation agreement to be concluded between the union and the aala . ### in order to protect the financial interests of the union , the commission should have the right through proportionate measures to recover , reduce , withhold or terminate the union financial contribution where the aal programme is implemented inadequately , partially or late , or the participating states do not contribute , or contribute partially or late , to the financing of the aal programme . those rights should be provided for in the delegation agreement to be concluded between the union and the aala .


### the maximum union financial contribution to the aal programme covering administrative costs and operational costs shall be eur 175 . 000 . 000 . the contribution shall be paid from appropriations in the general budget of the union allocated to the relevant parts of the specific programme implementing horizon 2020 framework programme , established by decision &#8230 ; . / 2013 / eu in accordance with article 58 and articles 60 and 61 of regulation no 966 / 2012 . ### the maximum union financial contribution to the aal programme covering administrative costs and operational costs shall be eur 153 . 125 . 000 . the contribution shall be paid from appropriations in the general budget of the union allocated to the relevant parts of the specific programme implementing horizon 2020 framework programme , established by decision &#8230 ; . / 2013 / eu in accordance with article 58 and articles 60 and 61 of regulation no 966 / 2012 .


### the union right to compensation for antitrust harm requires each member state to have procedural rules ensuring the effective exercise of that right . the need for effective procedural remedies also follows from the right to effective judicial protection as laid down in article 47 , first paragraph , of the charter of fundamental rights of the european union53 and in article 19 , second subparagraph of the treaty on european union . ______________ 53 oj c 326 , 26 . 10 . 2012 , p . 391 . ### the union right to compensation for antitrust harm requires each member state to have procedural rules ensuring the effective exercise of that right . the need for effective procedural remedies also follows from the right to effective judicial protection as laid down in article 47 , first paragraph , of the charter of fundamental rights of the european union53 and in article 19 , second subparagraph of the treaty on european union , pursuant to which member states shall provide remedies sufficient to ensure effective legal protection in the fields covered by union law . procedural rules under national law should not only comply with the principles of effectiveness and equivalence but should also be harmonised to the extent necessary to ensure legal certainty , a level playing field and minimum standards throughout the internal market . ______________ 53 oj c 326 , 26 . 10 . 2012 , p . 391 .


### undertakings established and operating in different member states are subject to procedural rules that significantly affect the extent to which they can be held liable for infringements of competition law . this uneven enforcement of the union right to compensation may result in a competitive advantage for some undertakings which have breached articles 101 or 102 of the treaty , and a disincentive to the exercise of the rights of establishment and provision of goods or services in those member states where the right to compensation is more effectively enforced . as such , the differences in the liability regimes applicable in the member states may negatively affect both competition and the proper functioning of the internal market . ### undertakings established and operating in different member states are subject to procedural rules that significantly affect the extent to which they can be held liable for infringements of competition law . this uneven enforcement of the union right to compensation may result in a competitive advantage for some undertakings which have breached articles 101 or 102 of the treaty , and a disincentive to the exercise of the rights of establishment and provision of goods or services in those member states where the right to compensation is more effectively enforced . therefore , as the differences in the liability regimes applicable in the member states may negatively affect both competition and the proper functioning of the internal market , it is appropriate to base the directive on the dual legal basis of articles 103 and 114 tfeu .


### it is therefore necessary to ensure a more level playing field for undertakings operating in the internal market and to improve the conditions for consumers to exercise the rights they derive from the internal market . it is also appropriate to increase legal certainty and to reduce the differences between the member states as to the national rules governing actions for damages for infringements of european competition law and , when applied in parallel to the latter , national competition law . an approximation of these rules will also help to prevent the emergence of wider differences between the member states’ rules governing actions for damages in competition cases . ### it is therefore necessary , bearing in mind also the often cross - border nature of large scale infringements of competition law , to ensure a more level playing field for undertakings operating in the internal market and to improve the conditions for consumers to exercise the rights they derive from the internal market . it is also appropriate to increase legal certainty and to reduce the differences between the member states as to the national rules governing actions for damages for infringements of european competition law and , when applied in parallel to the latter , national competition law . an approximation of these rules will also help to prevent the emergence of wider differences between the member states’ rules governing actions for damages in competition cases .


### while relevant evidence containing business secrets or otherwise confidential information should in principle be available in actions for damages , such confidential information needs to be appropriately protected . national courts should therefore have at their disposal a range of measures to protect such confidential information from being disclosed during the proceedings . these may include the possibility of hearings in private , restricting the circle of persons entitled to see the evidence , and instruction of experts to produce summaries of the information in an aggregated or otherwise non - confidential form . measures protecting business secrets and other confidential information should not practically impede the exercise of the right to compensation . ### while relevant evidence containing business secrets or otherwise confidential information should in principle be available in actions for damages , such confidential information needs to be appropriately protected . national courts should therefore have at their disposal a range of measures to protect such confidential information from being disclosed during the proceedings . these may include the possibility of blanking out sensitive parts of a document , hearings in camera , restricting the circle of persons entitled to see the evidence , and instruction of experts to produce summaries of the information in an aggregated or otherwise non - confidential form . measures protecting business secrets and other confidential information should , nevertheless , not impede the exercise of the right to compensation .


### the scope and cost of disclosure , especially for any third parties concerned ; ### the scope and cost of disclosure , especially for any third parties concerned and with view to prevent fishing expeditions ;


### member states shall ensure that the limitation period is suspended if a competition authority takes action for the purpose of the investigation or proceedings in respect of an infringement to which the action for damages relates . the suspension shall end at the earliest one year after the infringement decision has become final or the proceedings are otherwise terminated . ### member states shall ensure that the limitation period is suspended if a competition authority takes action for the purpose of the investigation or proceedings in respect of an infringement to which the action for damages relates . the suspension shall end at the earliest two years after the decision , through which the procedure concerning the infringement or alleged infringement has been closed , has become final .


### member states shall ensure that the limitation period for bringing an action for damages is suspended for the duration of the consensual dispute resolution process . the suspension of the limitation period shall apply only with regard to those parties that are or were involved in the consensual dispute resolution . ### member states shall ensure that when the parties voluntarily try to resolve their dispute through consensual dispute resolution the limitation period for bringing an action for damages is suspended for the duration of the consensual dispute resolution process . the suspension of the limitation period shall apply only with regard to those parties that are or were involved in the consensual dispute resolution .


### member states shall ensure that national courts seized of an action for damages may suspend proceedings where the parties to those proceedings are involved in consensual dispute resolution concerning the claim covered by that action for damages . ### member states shall ensure that national courts seized of an action for damages may suspend proceedings where the parties to those proceedings are involved in voluntary consensual dispute resolution concerning the claim covered by that action for damages .


### digital content is often supplied not in exchange for a price but in combination with separate paid goods or services , involving a non - monetary consideration such as giving access to personal data or free of charge in the context of a marketing strategy based on the expectation that the consumer will purchase additional or more sophisticated digital content products at a later stage . in view of this specific market structure and of the fact that defects of the digital content provided may harm the economic interests of consumers irrespective of the conditions under which it has been provided , the availability of the common european sales law should not depend on whether a price is paid for the specific digital content in question . ### digital content is often supplied not in exchange for a price but in combination with separate paid goods or services , involving a non - monetary consideration such as giving access to personal data or free of charge in the context of a marketing strategy based on the expectation that the consumer will purchase additional or more sophisticated digital content products at a later stage . in view of this specific market structure and of the fact that defects of the digital content provided may harm the economic interests of consumers irrespective of the conditions under which it has been provided , the availability of the common european sales law should not depend on whether a price is paid for the specific digital content in question . however , in such cases , the remedies of the buyer should be limited to damages . on the other hand , the buyer should be able to have recourse to the full range of remedies , except price reduction , even if he is not obliged to pay a price for the supply of digital content , provided that his counter - performance , such as the provision of personal data or other utility having commercial value for the supplier , equals the payment of the price , given that in such cases the digital content is not actually supplied for free .


### in order to enhance legal certainty by making the case - law of the court of justice of the european union and of national courts on the interpretation of the common european sales law or any other provision of this regulation accessible to the public , the commission should create a database comprising the final relevant decisions . with a view to making that task possible , the member states should ensure that such national judgments are quickly communicated to the commission . ### in order to enhance legal certainty by making the case - law of the court of justice of the european union and of national courts on the interpretation of the common european sales law or any other provision of this regulation accessible to the public , the commission should create a database comprising the final relevant decisions . with a view to making that task possible , the member states should ensure that such national judgments are quickly communicated to the commission . a database should be established which is easily accessible , fully systematised and easily searchable . in order to overcome problems relating to different approaches to judgments within the union and to enable the database to be operated efficiently and economically , judgments should be communicated on the basis of a standard judgment summary which should accompany the judgment . it should be succinct , thus rendering it easily accessible . it should be divided into five sections which should set out the main elements of the judgment communicated , i . e . the issue and the relevant common european sales law article , a brief summary of the facts , a short summary of the main arguments , the decision ; and the reasons for the decision , clearly stating the principle decided .


### ‘ trader’ means any natural or legal person who is acting for purposes relating to that person’s trade , business , craft , or profession ; ### ‘ trader’ means any natural person or any legal person , irrespective of whether privately or publicly owned , who is acting , including through any other natural or legal person acting in his name or on his behalf , for purposes relating to his trade , business , craft or profession in relation to contracts ;


### ‘ trader’ means any natural or legal person who is acting for purposes relating to that person ' s trade , business , craft , or profession ; ### ‘ trader’ means any natural person or any legal person , irrespective of whether privately or publicly owned , who is acting , including through any other person acting in his name or on his behalf , for purposes relating to his trade , business , craft or profession in relation to contracts ;


### ‘ trader’ means any natural or legal person who is acting for purposes relating to that person’s trade , business , craft , or profession ; ### ' trader ' means any natural person or any legal person , irrespective of whether privately or publicly owned , who is acting , including through any other natural or legal person acting in his name or on his behalf , for purposes relating to his trade , business , craft or profession in relation to contracts ;


### ‘ consumer’ means any natural person who is acting for purposes which are outside that person ' s trade , business , craft , or profession ; ### ' consumer ' means any natural person who is acting for purposes which are outside his trade , business , craft or profession ;


### ‘ related service’ means any service related to goods or digital content , such as installation , maintenance , repair or any other processing , provided by the seller of the goods or the supplier of the digital content under the sales contract , the contract for the supply of digital content or a separate related service contract which was concluded at the same time as the sales contract or the contract for the supply of digital content ; it excludes : ### ‘ related service’ means any service related to goods or digital content , such as installation , maintenance , repair , storage or any other processing , provided by the seller of the goods or the supplier of the digital content under the sales contract , the contract for the supply of digital content or a separate related service contract which was concluded at the same time as the sales contract or the contract for the supply of digital content ; it excludes :


### ‘ commercial guarantee’ means any undertaking by the trader or a producer to the consumer , in addition to legal obligations under article 106 in case of lack of conformity to reimburse the price paid or to replace or repair , or service goods or digital content in any way if they do not meet the specifications or any other requirements not related to conformity set out in the guarantee statement or in the relevant advertising available at the time of , or before the conclusion of the contract ; ### ' commercial guarantee ' means any undertaking by the trader or a producer to the consumer , in addition to his legal obligation relating to the guarantee of conformity , to reimburse the price paid or to replace , repair or service goods or digital contents in any way if they do not meet the specifications or any other requirements not related to conformity set out in the guarantee statement or in the relevant advertising available at the time of , or before the conclusion of the contract ;


### the common european sales law may be used for : ### the common european sales law may be used for distance contracts , including online contracts , which are :


### exclusion of mixed - purpose contracts and contracts linked to a consumer credit ### linked contracts and mixed purpose contracts


### the common european sales law may not be used for mixed - purpose contracts including any elements other than the sale of goods , the supply of digital content and the provision of related services within the meaning of article 5 . ### the common european sales law may also be used for cases where a contract governed by the common european sales law is linked to a contract other than a sales contract , a contract for the supply of digital content or a related service contract , or for cases where a contract includes any elements other than the sale of goods , the supply of digital content or the provision of related services within the meaning of article 5 provided those elements are divisible and their price can be apportioned .


### in relations between a trader and a consumer the agreement on the use of the common european sales law shall be valid only if the consumer ' s consent is given by an explicit statement which is separate from the statement indicating the agreement to conclude a contract . the trader shall provide the consumer with a confirmation of that agreement on a durable medium . ### in relations between a trader and a consumer the agreement on the use of the common european sales law shall be valid only if the consumer ' s consent is given by an explicit statement which is separate from the statement indicating the agreement to conclude a contract and if the requirements under article 9 are fulfilled . the trader shall provide the consumer with a confirmation of that agreement on a durable medium .


### in relations between a trader and a consumer the common european sales law may not be chosen partially , but only in its entirety . ### in relations between a trader and a consumer the common european sales law may not be chosen partially , but only in its entirety . in relations between traders , the common european sales law may be chosen partially , provided that exclusion of the respective provisions is not prohibited therein .


### the buyer’s remedies ### remedies


### . ### the service provider must obtain the express consent of the consumer before entrusting performance to another person pursuant to paragraph 1 .


### the buyer ' s remedies ### remedies


### breach of this duty may preclude the party in breach from exercising or relying on a right , remedy or defence which that party would otherwise have , or may make the party liable for any loss thereby caused to the other party . ### breach of this duty may preclude the party in breach from exercising or relying on a right , remedy or defence which that party would otherwise have , but does not give rise directly to remedies for non - performance of an obligation .


### in the case of non - performance of an obligation by the seller , the buyer may do any of the following : ### in the case of non - performance of the obligation to conform to the contract by the seller , the consumer may do any of the following :


### in the case of non - performance of an obligation by the seller , the buyer may do any of the following : ### in the case of non - performance of an obligation by the seller , the buyer may , where the specific requirements for the respective remedies are met , do any of the following :


### in the case of a non - performance of an obligation by the buyer , the seller may do any of the following : ### in the case of a non - performance of an obligation by the buyer , the seller may , where the specific requirements for the respective remedies are met , do any of the following :


### a recipient who has made use of goods must pay the other party the monetary value of that use for any period where : the recipient caused the ground for avoidance or termination ; the recipient , prior to the start of that period , was aware of the ground for avoidance or termination ; or having regard to the nature of the goods , the nature and amount of the use and the availability of remedies other than termination , it would be inequitable to allow the recipient the free use of the goods for that period . ### alternative 3 [ alternative amendment to amendments for article 106 and article 119 ] where a contract is avoided , a recipient who has made use of goods , the digital content or the fruits must pay the other party the monetary value of that use for any period where : the recipient caused the ground for avoidance ; or the recipient , prior to the start of that period , was aware of the ground for avoidance . 1a . where a contract is terminated , a recipient who has made use of goods , digital content or their fruits shall pay the other party the monetary value of that use . the recipient may deduct the cost of returning the goods , digital content or their fruits from the payment for use . 1b . the monetary value of the use is the amount the recipient saved by making use of the goods , the digital content or their fruits .


### this article applies in relation to the giving of notice for any purpose under the rules of the common european sales law and the contract . ' notice ' includes the communication of any statement which is intended to have legal effect or to convey information for a legal purpose . ### ' notice ' includes the communication of any statement which is intended to have legal effect or to convey information for a legal purpose .


### the contract terms . ### the terms on the basis of which the trader is prepared to conclude the contract .


### the trader must ensure that the contract terms referred to in point of paragraph 3 are made available in alphabetical or other intelligible characters and on a durable medium by means of any support which permits reading , recording of the information contained in the text and its reproduction in tangible form . ### without prejudice to any stricter requirements for a trader dealing with a consumer under section 1 , the trader must ensure that the terms referred to in point of paragraph 3 are made available in alphabetical or other intelligible characters and on a durable medium by means of any support which permits reading , recording of the information contained in the text and its reproduction in tangible form .


### the trader must acknowledge by electronic means and without undue delay the receipt of an offer or an acceptance sent by the other party . ### the trader must acknowledge by electronic means and without undue delay the receipt of an offer or an acceptance sent by the other party . such acknowledgement shall display the content of the offer or of the acceptance .


### a party which has failed to comply with any duty imposed by this chapter is liable for any loss caused to the other party by such failure . ### a party which has failed to comply with any duty imposed by this chapter is liable under chapter 16 for any loss caused to the other party by such failure .


### agreement is reached by acceptance of an offer . acceptance may be made explicitly or by other statements or conduct . ### agreement is reached by acceptance of an offer .


### it has sufficient content and certainty for there to be a contract . ### it has sufficient content and certainty for there to be a contract . in relations between a trader and a consumer , an offer shall only be considered to have sufficient content and certainty if it contains an object , a quantity or duration , and a price .


### a party who has the right to avoid a contract under this chapter or who had such a right before it was lost by the effect of time limits or confirmation is entitled , whether or not the contract is avoided , to damages from the other party for loss suffered as a result of the mistake , fraud , threats or unfair exploitation , provided that the other party knew or could be expected to have known of the relevant circumstances . ### a party who has the right to avoid a contract under this chapter or who had such a right before it was lost by the effect of time limits or confirmation is entitled , whether or not the contract is avoided , to damages under chapter 16 from the other party for loss suffered as a result of the mistake , fraud , threats or unfair exploitation , provided that the other party knew or could be expected to have known of the relevant circumstances .


### where one party intended an expression used in the contract to have a particular meaning , and at the time of the conclusion of the contract the other party was aware , or could be expected to have been aware , of that intention , the expression is to be interpreted in the way intended by the first party . ### where one party intended an expression used in the contract or equivalent conduct to have a particular meaning , and at the time of the conclusion of the contract the other party was aware , or could be expected to have been aware , of that intention , the expression or equivalent conduct is to be interpreted in the way intended by the first party .


### usages and practices do not bind the parties to the extent to which they conflict with contract terms which have been individually negotiated or any mandatory rules of the common european sales law . ### usages and practices do not bind the parties to the extent to which they conflict with the agreement of the parties or any mandatory rules of the common european sales law .


### any contract term implied under paragraph 1 is , as far as possible , to be such as to give effect to what the parties would probably have agreed , had they provided for the matter . ### any contract term implied under paragraph 1 is , as far as possible , to be such as to give effect to what the parties would probably have agreed .


### where the trader makes a statement before the contract is concluded , either to the other party or publicly , about the characteristics of what is to be supplied by that trader under the contract , the statement is incorporated as a term of the contract unless : the other party was aware , or could be expected to have been aware when the contract was concluded that the statement was incorrect or could not otherwise be relied on as such a term ; or the other party’s decision to conclude the contract could not have been influenced by the statement . ### where the trader makes a statement before the contract is concluded , either to the other party or publicly , about the characteristics of what is to be supplied by that trader under the contract , the statement is incorporated as a term of the contract unless the trader shows that : the statement had been corrected by the time of conclusion of the contract , the decision to buy the goods could not have been influenced by the statement concerned .


### where the trader makes a statement before the contract is concluded , either to the other party or publicly , about the characteristics of what is to be supplied by that trader under the contract , the statement is incorporated as a term of the contract unless : ### where the trader , or a person engaged in advertising or marketing for the trader , makes a statement before the contract is concluded , either to the other party or publicly , about the characteristics of what is to be supplied by that trader under the contract , the statement is incorporated as a term of the contract unless :


### where the other party is a consumer then , for the purposes of paragraph 1 , a public statement made by or on behalf of a producer or other person in earlier links of the chain of transactions leading to the contract is regarded as being made by the trader unless the trader , at the time of conclusion of the contract , did not know and could not be expected to have known of it . ### where the other party is a consumer then , for the purposes of paragraph 1 , a public statement made by or on behalf of a producer or other person in earlier links of the chain of transactions leading to the contract is regarded as being made by the trader unless the trader shows that , at the time of conclusion of the contract , he did not know and could not be expected to have known of it .


### the parties may not exclude the application of this article or derogate from or vary its effects . ### in relations between a trader and a consumer , the parties may not , to the detriment of the consumer , exclude the application of this article or derogate from or vary its effects .


### where a trader supplies contract terms which have not been individually negotiated with the consumer within the meaning of article 7 , it has a duty to ensure that they are drafted and communicated in plain , intelligible language . ### where a trader supplies contract terms which have not been individually negotiated with the consumer within the meaning of article 7 , it has a duty to ensure that they are drafted and communicated in plain , clear and intelligible language . where this is not the case , they are not binding for the consumer within the meaning of article 79 .


### it is of such a nature that its use grossly deviates from good commercial practice , contrary to good faith and fair dealing . ### it is of such a nature that its use grossly deviates from customary commercial practice , contrary to good faith and fair dealing .


### the party who is unable to perform has a duty to ensure that notice of the impediment and of its effect on the ability to perform reaches the other party without undue delay after the first party becomes , or could be expected to have become , aware of these circumstances . the other party is entitled to damages for any loss resulting from the breach of this duty . ### the party who is unable to perform has a duty to ensure that notice of the impediment and of its effect on the ability to perform reaches the other party without undue delay after the first party becomes , or could be expected to have become , aware of these circumstances . the other party is entitled to damages under chapter 16 for any loss resulting from the breach of this duty .


### the aggrieved party did not assume , and cannot reasonably be regarded as having assumed , the risk of that change of circumstances . ### the aggrieved party , relying on the change of circumstances , did not assume , and cannot reasonably be regarded as having assumed , the risk of that change of circumstances .


### where the time of delivery cannot be otherwise determined , the goods or the digital content must be delivered without undue delay after the conclusion of the contract . ### where the time of delivery cannot be otherwise determined , the goods or the digital content must be delivered within a reasonable time after the contract was concluded .


### possess such qualities and performance capabilities as the buyer may expect . when determining what the consumer may expect of the digital content regard is to be had to whether or not the digital content was supplied in exchange for the payment of a price . ### possess such qualities and performance capabilities as the buyer may expect in accordance with article 5 . when determining what the consumer may expect of the digital content regard is to be had to whether or not the digital content supplied in exchange for the payment of a price or any counter performance .


### in contracts between businesses , paragraph 2 does not apply where the buyer knew or could be expected to have known of the rights or claims based on intellectual property at the time of the conclusion of the contract . 4 . in contracts between a trader and a consumer , paragraph 2 does not apply where the consumer knew of the rights or claims based on intellectual property at the time of the conclusion of the contract . ### paragraph 2 does not apply where in contracts between traders , the buyer knew or could be expected to have known of the rights or claims based on intellectual property at the time of the conclusion of the contract ; in contracts between a trader and a consumer , where the consumer knew of the rights or claims based on intellectual property at the time of the conclusion of the contract .


### in a consumer sales contract , any lack of conformity which becomes apparent within six months of the time when risk passes to the buyer is presumed to have existed at that time unless this is incompatible with the nature of the goods or digital content or with the nature of the lack of conformity . ### in a consumer sales contract or digital services contract , any lack of conformity which becomes apparent within one year of the time when risk passes to the buyer is presumed to have existed at that time unless this is incompatible with the nature of the goods or digital content or with the nature of the lack of conformity .


### the seller has a reasonable period of time to effect cure . ### the seller has a reasonable period of time to effect cure . in contracts between a trader and a consumer , the reasonable period shall not exceed 30 days .


### the buyer is entitled to require performance of the seller ' s obligations . 2 . the performance which may be required includes the remedying free of charge of a performance which is not in conformity with the contract . ### the buyer is entitled to require performance of the seller ' s obligations , which includes the remedying , free of charge , of a performance which is not in conformity with the contract .


### a buyer who reduces the price cannot also recover damages for the loss thereby compensated but remains entitled to damages for any further loss suffered . ### a buyer who reduces the price cannot also recover damages under chapter 16 for the loss thereby compensated but remains entitled to damages for any further loss suffered .


### in a contract between traders the buyer is expected to examine the goods , or cause them to be examined , within as short a period as is reasonable not exceeding 14 days from the date of delivery of the goods , supply of digital content or provision of related services . ### in a contract between traders the buyer is expected to examine the goods or digital content , or cause them to be examined , within as short a period as is reasonable not exceeding 14 days from the date of delivery of the goods , supply of digital content or provision of related services .


### in a contract between traders the buyer may not rely on a lack of conformity if the buyer does not give notice to the seller within a reasonable time specifying the nature of the lack of conformity . ### in a contract between traders the buyer may not rely on a lack of conformity if the buyer does not give notice to the seller within a reasonable time specifying the nature of the lack of conformity . however , the buyer may still reduce the price or claim damages , except for loss of profit , if he has a reasonable excuse for his failure to give the required notice .


### point of paragraph 1 does not apply to contracts for the supply of digital content where the digital content is not supplied in exchange for the payment of a price . ### for contracts for the supply of digital content point of paragraph 1 does not apply to contracts for the supply of digital content where the digital content is not supplied in exchange for the payment of a price ; point of paragraph 1 does not apply where the digital content is not supplied on a tangible medium .


### where the seller accepts payment by a third party in circumstances not covered by paragraphs 1 or 2 the buyer is discharged from liability to the seller but the seller is liable to the buyer for any loss caused by that acceptance . ### where the seller accepts payment by a third party in circumstances not covered by paragraphs 1 or 2 the buyer is discharged from liability to the seller but the seller is liable to the buyer under chapter 16 for any loss caused by that acceptance .


### paragraph 1 is subject to articles 144 , 145 and 146 . ### if the goods or the digital content are placed at the buyer ' s disposal and the buyer is aware of this , the risk passes to the buyer at the time when the goods or digital content should have been taken over , unless the buyer was entitled to withhold taking of delivery pursuant to article 113 . if the goods or the digital content are placed at the buyer ' s disposal at a place other than a place of business of the seller , the risk passes when delivery is due and the buyer is aware of the fact that the goods or digital content are placed at the buyer ' s disposal at that place .


### to claim damages . ### to claim damages under chaper 16 .


### to claim interest on the price or damages . ### to claim interest on the price or damages under chapter 16 .


### where a contract is avoided or terminated by either party , each party is obliged to return what that party has received from the other party . ### where a contract or part of a contract is avoided or terminated by either party or is invalid or not binding for reasons other than avoidance or termination , each party is obliged to return what that party has received from the other party under the contract affected or part thereof .


### where what was received , including fruits where relevant , cannot be returned , or , in a case of digital content whether or not it was supplied on a tangible medium , the recipient must pay its monetary value . where the return is possible but would cause unreasonable effort or expense , the recipient may choose to pay the monetary value , provided that this would not harm the other party ' s proprietary interests . ### where what was received , including fruits where relevant , cannot be returned , the recipient must pay its monetary value . where the return is possible but would cause unreasonable effort or expense , the recipient may choose to pay the monetary value , provided that this would not harm the other party ' s proprietary interests .


### in the case of digital content which is not supplied in exchange for the payment of a price , no restitution will be made . ### where the digital content is not supplied in exchange for the payment of a price , but for a counter performance other than the payment of a price or without counter performance , and the digital content cannot be considered as returnable under article 172a , the recipient of the digital content shall not have to pay its monetary value .


### for the purposes of this chapter , a recipient is not obliged to pay for use of goods received or interest on money received in any circumstances other than those set out in paragraphs 1 and 2 . ### for the purposes of this chapter , a recipient is not obliged to pay for use of goods , digital content or their fruits or interest on money received in any circumstances other than those set out in paragraphs 1 , 1a and 2 .


### where a recipient has incurred expenditure on goods or digital content , the recipient is entitled to compensation to the extent that the expenditure benefited the other party provided that the expenditure was made when the recipient did not know and could not be expected to know of the ground for avoidance or termination . ### where a recipient has incurred expenditure on goods or digital content or their fruits , the recipient is entitled to compensation to the extent that the expenditure benefited the other party provided that the expenditure was made when the recipient did not know and could not be expected to know of the ground for avoidance or termination .


### a recipient who knew or could be expected to know of the ground for avoidance or termination is entitled to compensation only for expenditure that was necessary to protect the goods or the digital content from being lost or diminished in value , provided that the recipient had no opportunity to ask the other party for advice . ### a recipient who knew or could be expected to know of the ground for avoidance or termination is entitled to compensation only for expenditure that was necessary to protect the goods or the digital content , or their fruits , from being lost or diminished in value , provided that the recipient had no opportunity to ask the other party for advice .


### a right to enforce performance of an obligation , and any right ancillary to such a right , is subject to prescription by the expiry of a period of time in accordance with this chapter . ### a right to enforce performance of an obligation , and any right ancillary to such a right , including any remedy for non - performance except withholding performance , is subject to prescription by the expiry of a period of time in accordance with this chapter .


### mixed - purpose contracts ### contracts including the provision of related services


### the party , but for the mistake , would not have concluded the contract or would have done so only on fundamentally different contract terms and the other party knew or could be expected to have known this ; and ### the party , but for the mistake , would not have concluded the contract or would have done so only on fundamentally different contract terms


### caused the mistake ; ### caused the mistake ; or


### caused the contract to be concluded in mistake by failing to comply with any pre - contractual information duty under chapter 2 , sections 1 to 4 ; ### caused the contract to be concluded in mistake by failing to comply with any pre - contractual information duty under chapter 2 , sections 1 to 4 ; or


### in determining whether good faith and fair dealing require a party to disclose particular information , regard should be had to all the circumstances , including : ### in determining whether good faith and fair dealing require a party to disclose particular information , regard is to be had to all the circumstances , including :


### the apparent importance of the information to the other party ; and ### the likely importance of the information to the other party ; and


### the circumstances in which it was concluded , including the preliminary negotiations ; ### the circumstances in which it was concluded ;


### the conduct of the parties , even subsequent to the conclusion of the contract ; ### the conduct of the parties , prior , during and subsequent to the conclusion of the contract ;


### the interpretation which has already been given by the parties to expressions which are identical to or similar to those used in the contract ; ### the interpretation which the parties have previously given to expressions which are identical to or similar to those used in the contract ;


### preference for individually negotiated contract terms ### not individually negotiated contract terms


### allow a trader , where what has been ordered is unavailable , to supply an equivalent without having expressly informed the consumer of this possibility and of the fact that the trader must bear the cost of returning what the consumer has received under the contract if the consumer exercises a right to reject performance ; ### allow a trader , where what has been ordered is unavailable , to supply an equivalent without having expressly informed the consumer of this possibility and of the fact that the trader must bear the cost of returning what the consumer has received under the contract if the consumer exercises a right to reject performance , and without the consumer having expressly required this ;


### transfer the ownership of the goods , including the tangible medium on which the digital content is supplied ; ### transfer or undertake to transfer the ownership of the goods , including the tangible medium on which the digital content is supplied ;


### time when risk passes ### passing of risk in contracts between traders


### restitution on avoidance or termination ### restitution in case of avoidance , termination or invalidity


### payment for use and interest on money received ### payment for use and interest on money received and diminished value


### it is appropriate to clarify that for the purpose of verifying compliance with the target of 95gco2 / km , co2 emissions should continue to be measured in accordance with regulation no 715 / 2007 of the european parliament and of the council of 20 june 2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles and on access to vehicle repair and maintenance information and its implementing measures and innovative technologies . ### it is appropriate to clarify that for the purpose of verifying compliance with the target of 95gco2 / km , co2 emissions should continue to be measured in accordance with regulation no 715 / 2007 of the european parliament and of the council of 20 june 2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles and on access to vehicle repair and maintenance information and its implementing measures and innovative technologies . however , studies carried out by the commission have demonstrated that the test procedures used to measure co2 emissions under that regulation have not prevented an increased utilisation of flexibilities by manufacturers which have resulted in alleged co2 emissions reductions that are not attributed to technological improvements and cannot be achieved in real driving on the road . therefore , regulation no 715 / 2007 should be reviewed as a matter of urgency in order to ensure that test procedures reflect adequately the real co2 emissions behaviour of cars .


### in recognition of the disproportionate impacts on the smallest manufacturers resulting from compliance with specific emissions targets defined on the basis of the utility of the vehicle , high administrative burden of the derogation procedure and only marginal benefit in terms of avoided co2 from the vehicles sold by these manufacturers , producers responsible annually for less than 500 new passenger cars are excluded from the scope of the specific emissions target and the excess emissions premium . ### in recognition of the disproportionate impacts on the smallest manufacturers resulting from compliance with specific emissions targets defined on the basis of the utility parameter of the vehicle established by mass , the high administrative burden of the derogation procedure and only marginal benefit in terms of avoided co2 from the vehicles sold by these manufacturers , producers responsible annually for less than 500 new passenger cars are partially excluded from the scope of the specific emissions target and the excess emissions premium . the commission is required to propose alternative utility criteria for such vehicles , taking into account the ratio of engine power to useful work done by the vehicle as a whole .


### to enable the automotive industry to carry out long - term investments and innovation it is desirable to provide indications of how this regulation should be amended for the period beyond 2020 . these indications should be based on an assessment of the necessary rate of reduction in line with the union ' s long term climate goals and the implications for the development of cost effective co2 reducing technology for cars . it is therefore desirable for these aspects to be reviewed , the commission to make a report and if appropriate proposals made for targets beyond 2020 . ### to enable the automotive industry to carry out long - term investments and to introduce innovation it is desirable to provide indications of how this regulation should be amended for the period beyond 2020 . these indications should be based on an assessment of the conditions conducive to the necessary rate of reduction in line with the union’s long - term goals and the implications for the development of cost effective technology to reduce emissions of dust and harmful gases , as well as noise emissions , from cars . it is therefore desirable for these aspects to be reviewed , the commission to make a report and if appropriate proposals made for co2 targets beyond 2020 . the report should include an assessment of co2 emissions at all stages in the manufacturing process , as well as throughout the life of the vehicle and during scrapping and recycling .


### to enable the automotive industry to carry out long - term investments and innovation it is desirable to provide indications of how this regulation should be amended for the period beyond 2020 . these indications should be based on an assessment of the necessary rate of reduction in line with the union ' s long term climate goals and the implications for the development of cost effective co2 reducing technology for cars . it is therefore desirable for these aspects to be reviewed , the commission to make a report and if appropriate proposals made for targets beyond 2020 . ### to enable the automotive industry to carry out long - term investments and innovation it is desirable to provide indications for the period beyond 2020 . this should be done by setting a target for 2025 . the target should be based on the necessary rate of reduction to be in line with the union ' s long term climate goals and enhance the development of cost effective co2 reducing technology for cars . it is therefore desirable for the commission to make a report and propose targets for beyond 2020 .


### the regulation requires the commission to carry out an impact assessment in order to review the test procedures to reflect adequately the real co2 emissions behaviour of cars . this work is proceeding through the development of a world light duty test procedure in the framework of the united nations economic commission for europe but is not yet complete . in view of this , annex i to regulation no 443 / 2009 establishes emission limits for 2020 as measured according to regulation no 715 / 2007 and annex xii to regulation no 692 / 2008 . when the test procedures are amended , the limits set in annex i should be adjusted to ensure comparable stringency for manufacturers and classes of vehicles . ### the regulation requires the commission to carry out an impact assessment in order to review the test procedures to reflect adequately the real co2 emissions behaviour of cars . this work is proceeding through the development of a world light duty test procedure in the framework of the united nations economic commission for europe but is not yet complete . in view of this , and given that the existing test cycle does not sufficiently reflect the actual emissions of cars and vans on the road , the swift development of an improved test cycle is crucial . when the current test procedures , set out in annex i to regulation no 443 / 2009 , which establishes emission limits for 2020 as measured according to regulation no 715 / 2007 and annex xii to regulation no 692 / 2008 , are amended , the limits set in annex i should be adjusted to ensure comparable stringency for manufacturers and classes of vehicles .


### the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in order to supplement the rules on derogations from the specific emissions targets , to amend data requirements for the purpose of monitoring of co2 emissions and to adjust the formulae for calculating the specific co2 emissions in annex i to changes in the vehicle mass value and the regulatory test procedure for the measurement of specific co2 emissions referred to in regulation no 715 / 2007 . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council . ### the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in order to supplement the rules on derogations from the specific emissions targets , to amend data requirements for the purpose of monitoring of co2 emissions and to adjust the formulae for calculating the specific co2 emissions in annex i to regulation no 443 / 2009 to changes in the vehicle mass and footprint value and the regulatory test procedure for the measurement of specific co2 emissions referred to in regulation no 715 / 2007 . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council .


### the commission has assessed the availability of footprint data and its use as the utility parameter in the formulae in annex i . this data is available and its potential use has been assessed in the impact assessment , on the basis of that assessment it is concluded that the utility parameter used in the formula for 2020 should be mass . nevertheless , the lower cost and merits of a change to footprint as the utility parameter should be considered in the future review . ### the commission has assessed the availability of footprint data and its use as the utility parameter in the formulae in annex i to regulation no 443 / 2009 . this data is available and its potential use has been assessed in the impact assessment . on the basis of that assessment it is concluded that the utility parameter used in the formula for 2020 should be mass , since a change of utility parameter would not meet the objective of planning certainty as manufacturers have planned their compliance pathways to 2020 on the basis of continuation of the current parameter . nevertheless , the lower cost and merits of footprint would justify its use as the utility parameter from 2025 onwards . therefore , in order to ensure a smooth transition to a future shift from mass to footprint , it is appropriate to introduce a footprint - based formula , which may be used from 2016 onwards by manufacturers as an alternative to the mass - based formula .


### ' from 2020 onwards , this regulation sets a target of 95 g co2 / km as average emissions for the new car fleet as measured in accordance with regulation no 715 / 2007 and annex xii to regulation no 692 / 2008 and its implementing measures , and innovative technologies . ' ### ' from 2020 , the average co2 emission of 95 g co2 / km laid down in this regulation shall be measured with this regulation for the in accordance with regulation no 715 / 2007 and annex xii to regulation no 692 / 2008 and its implementing measures , and shall be attained by means of improvements in engine technology and innovative technologies . '


### the commission shall adopt detailed provisions for a procedure to approve the innovative technologies referred to in paragraph 1 by way of implementing acts . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 14 of this regulation . ### the commission shall adopt detailed provisions for a procedure to approve the innovative technologies or innovative technology package referred to in paragraph 1 by way of implementing acts . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 14 of this regulation .


### the power to adapt delegated acts referred to in the second subparagraph of article 8 , article 11 , the third subparagraph of article 13 and article 13 , shall be conferred on the commission for an indeterminate period from [ the date of entry into force of this regulation ] . ### the power to adapt delegated acts referred to in the second subparagraph of article 8 , article 11 , the third subparagraph of article 13 and article 13 , shall be conferred on the commission for a period of five years from [ the date of entry into force of this regulation ] . the commission shall submit a report in respect of the delegation of power at the latest nine months before the end of the five - year period . the delegation of power shall be automatically extended for periods of an identical duration , unless the european parliament or the council opposes such extension at the latest three months before the end of each period .


### m0 = the value adopted pursuant to article 13 ### m0 = the value adopted pursuant to article 13 , minus 81 kg


### the commission shall , by means of delegated acts , determine the characteristics of information and promotion messages . ### the commission shall , by means of delegated acts , determine the characteristics of information and promotion messages , as well as the target groups for information and promotion campaigns .


### one or more themes to be the subject of the measures selected ; ### one or more themes to be the subject of the measures selected for the promotion and information initiative , depending on its intended target group ;


### a report published on 25 february 2009 by a high - level group of experts chaired by j . de larosière , requested by the commission , concluded that the supervisory framework needed to be strengthened to reduce the risk and severity of future financial crises . it recommended far - reaching reforms to the structure of supervision of the financial sector in the community . that group of experts also concluded that a european system of financial supervisors should be created , comprising three european supervisory authorities , one for the insurance and occupational pensions sector , one for the banking sector and one for the securities sector , and the creation of a european systemic risk council . ### a report published on 25 february 2009 by a high - level group of experts chaired by j . de larosière , requested by the commission , concluded that the supervisory framework needed to be strengthened to reduce the risk and severity of future financial crises . it recommended reforms to the structure of supervision of the financial sector in the community . that group of experts also concluded that a european system of financial supervisors should be created , comprising three european supervisory authorities , one for the insurance and occupational pensions sector , one for the banking sector and one for the securities sector , and the creation of a european systemic risk council . the recommendations in the report represented the lowest level of change that the experts qualified as necessary to avoid a similar crisis to take place in the future .


### the commission in its communication of 4 march 2009 entitled ' driving european recovery ' proposed to bring forward draft legislation creating a european system of financial supervisors and a european systemic risk board , and in its communication of 27 may 2009 entitled ' european financial supervision ' provided more detail about the possible architecture of such a new supervisory framework . ### the commission in its communication of 4 march 2009 entitled ' driving european recovery ' proposed to bring forward draft legislation creating a european system of financial supervisors and a european systemic risk board , and in its communication of 27 may 2009 entitled ' european financial supervision ' provided more detail about the possible architecture of such a new supervisory framework . the communication does not take up all the recommendations made in the de larosière report .


### the community has reached the limits of what can be done with the present status of the committees of european supervisors , which remain advisory bodies to the commission . the community cannot remain in a situation where there is no mechanism to ensure that national supervisors arrive at the best possible supervisory decisions for cross - border institutions ; where there is insufficient cooperation and information exchange between national supervisory authorities ; where joint action by national authorities requires complicated arrangements to take account of the patchwork of regulatory and supervisory requirements ; where national solutions are most often the only feasible option in responding to european problems , where different interpretations of the same legal text exist . the european system of supervisors should be designed to overcome these deficiencies and provide a system that is in line with the objective of a stable and single community financial market for financial services , linking national supervisors into a strong community network . ### the community has reached the limits of what can be done with the present status of the committees of european supervisors , which remain advisory bodies to the commission . the union cannot remain in a situation where there is no mechanism to ensure that national supervisors arrive at the best possible supervisory decisions for cross - border institutions ; where there is insufficient cooperation and information exchange between national supervisory authorities ; where joint action by national authorities requires complicated arrangements to take account of the patchwork of regulatory and supervisory requirements ; where national solutions are most often the only feasible option in responding to european problems , where different interpretations of the same legal text exist . the european system of supervisors , to be renamed the european system of financial supervision , should be designed to overcome these deficiencies and provide a system that is in line with the objective of a stable and single union financial market for financial services , linking national supervisors into a strong union network .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european insurance and occupational pensions authority should be established , along with a european banking authority and a european securities and markets authority . ### the european system of financial supervision should be a network of national and union supervisory authorities , leaving day - to - day supervision of financial institutions at the national level and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . a european supervisory authority should be established , along with a european supervisory authority and a european supervisory authority as well as a european supervisory authority .


### the european supervisory authorities should replace the committee of european banking supervisors established by commission decision 2009 / 78 / ec , the committee of european insurance and occupational pensions supervisors established by commission decision 2009 / 79 / ec and the committee of european securities regulators established by commission decision 2009 / 77 / ec , and assume all of the tasks and competences of those committees . the scope of each authority ' s action should be clearly defined . where institutional reasons and the responsibilities assigned in the treaty so require , the commission should also be part of the network of supervisory activities . ### the european supervisory authority should replace the committee of european insurance and occupational pensions supervisors established by commission decision 2009 / 79 / ec and assume all of the tasks and competences of that committee . the scope of each authority ' s action should be clearly defined . where institutional reasons and the responsibilities assigned in the treaty so require , the commission should also be part of the network of supervisory activities .


### the court of justice of the european communities in its judgement of 2 may 2006 in case c - 217 / 04 has acknowledged that article 95 of the treaty relating to the adoption of measures for the approximation of legislation for the establishment and functioning of the internal market provides an appropriate legal basis for setting up a ' community body responsible for contributing to the implementation of a process of harmonisation ' , when the tasks conferred on such a body are closely related to the subject - matter of the acts approximating the national legislations . the purpose and tasks of the authority - assisting national supervisory authorities in the consistent interpretation and application of community rules and contributing to financial stability necessary for financial integration - are closely linked to the objectives of the community acquis concerning the internal market for financial services . the authority should therefore be established on the basis of article 95 of the treaty . ### the court of justice of the european communities in its judgement of 2 may 2006 in case c - 217 / 04 has acknowledged that article 95 of the treaty relating to the adoption of measures for the approximation of legislation for the establishment and functioning of the internal market provides an appropriate legal basis for setting up a ' community body responsible for contributing to the implementation of a process of harmonisation ' , when the tasks conferred on such a body are closely related to the subject - matter of the acts approximating the national legislations . the purpose and tasks of the authority - assisting national supervisory authorities in the consistent interpretation and application of union rules and contributing to financial stability necessary for financial integration - are closely linked to the objectives of the union acquis concerning the internal market for financial services . the authority should therefore be established on the basis of article 114 of the treaty .


### the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt on its own initiative implementing measures under comitology procedures at level 2 of the lamfalussy structure as laid out in the relevant community legislation . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the community acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities . ### the commission should endorse those draft technical standards in order to give them binding legal effect . it can choose to reject them in part or in whole if , for example , the draft technical standards were incompatible with european union law , do not respect the principle of proportionality or run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expeditious adoption process for those standards , the commission should be subject to a time limit when deciding when to endorse , partially endorse or reject them . the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt delegated acts in accordance with article 290 of the treaty . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the union acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities .


### ensuring the correct and full application of community law is a core prerequisite for the integrity , efficiency and orderly functioning of financial markets , the stability of the financial system , and for neutral conditions of competition for financial institutions in the community . a mechanism should therefore be established whereby the authority addresses instances of incorrect or insufficient application of community law . this mechanism should apply in areas where community legislation defines clear and unconditional obligations . ### ensuring the correct and full application of union law is a core prerequisite for the integrity , efficiency and orderly functioning of financial markets , the stability of the financial system , and for neutral conditions of competition for financial market participants in the union . a mechanism should therefore be established whereby the authority addresses instances of non - application of union law . this mechanism should apply in areas where union legislation defines clear and unconditional obligations .


### peer reviews are an efficient and effective tool for fostering consistency within the network of financial supervisors . the authority should therefore develop the methodological framework for such reviews and conduct them on a regular basis . reviews should focus not only on convergence of supervisory practices but also on the capacity of supervisors to achieve high quality supervisory outcomes as well as the independence of national supervisory authorities . ### peer reviews are an efficient and effective tool for fostering consistency within the network of financial supervisors . the authority should therefore develop the methodological framework for such reviews and conduct them on a regular basis . reviews should focus not only on convergence of supervisory practices but also on the capacity of supervisors to achieve high quality supervisory outcomes as well as the independence of national supervisory authorities . the outcome of peer reviews should be made public and best practices should be identified and also made public .


### in order to safeguard financial stability it is necessary to identify , at an early stage , trends , potential risks and vulnerabilities stemming from the micro - prudential level , across borders and across sectors . the authority should monitor and assess such developments in the area of its competence and , where necessary , inform the european parliament , the council , the commission , the other european supervisory authorities and the european systemic risk board on a regular and , as necessary , ad hoc basis . the authority should also coordinate community - wide stress tests to assess the resilience of financial institutions to adverse market developments , ensuring an as consistent as possible methodology is applied at the national level to such tests . ### in order to safeguard financial stability it is necessary to identify , at an early stage , trends , potential risks and vulnerabilities stemming from the micro - prudential level , across borders and across sectors . the authority should monitor and assess such developments in the area of its competence and , where necessary , inform the european parliament , the council , the commission , the other european supervisory authorities and the european systemic risk board on a regular and , as necessary , ad hoc basis . the authority should also initiate and coordinate union - wide stress tests to assess the resilience of financial institutions to adverse market developments , ensuring an as consistent as possible methodology is applied at the national level to such tests . in order to inform the discharge of its functions , the authority should undertake economic analysis of markets and the impact of potential market developments on them .


### in order to effectively carry out its duties , the authority should have the right to request all necessary information . to avoid duplication of reporting obligations for financial institutions , that information should normally be provided by the national supervisory authorities who are closest to financial markets and institutions . however , the authority should have the power to request information directly from financial institutions and other parties where a national supervisory authority does not or cannot provide such information in a timely fashion . member states ' authorities should be obliged to assist the authority in enforcing such direct requests . ### in order to effectively carry out its duties , the authority should have the right to request all necessary information . to avoid duplication of reporting obligations for financial market participants , that information should normally be provided by the competent authorities who are closest to financial markets and market participants , subject to the requirement that confidential information is not made available to bodies or authorities that are not entitled to it . however , the authority should have the power to request information directly from financial market participants and other parties where a competent authority does not or cannot provide such information in a timely fashion . member states ' authorities should be obliged to assist the authority in enforcing such direct requests .


### close cooperation between the authority and the european systemic risk board is essential to give full effectiveness to the functioning of the european systemic risk board and the follow - up to its warnings and recommendations . the authority should share any relevant information with the european systemic risk board . data related to individual undertakings should be provided only upon reasoned request . upon receipt of warnings or recommendations addressed by the european systemic risk board to the authority or a national supervisory authority , the authority should ensure follow - up . ### close cooperation between the authority and the european systemic risk board is essential to give full effectiveness to the functioning of the european systemic risk board and the follow - up to its warnings and recommendations . the authority and the european systemic risk board should share any relevant information . data related to individual undertakings should be provided only upon reasoned request . upon receipt of warnings or recommendations addressed by the european systemic risk board to the authority or a national supervisory authority , the authority should ensure follow - up , as appropriate .


### close cooperation between the authority and the european systemic risk board is essential to give full effectiveness to the functioning of the european systemic risk board and the follow - up to its warnings and recommendations . the authority should share any relevant information with the european systemic risk board . data related to individual undertakings should be provided only upon reasoned request . upon receipt of warnings or recommendations addressed by the european systemic risk board to the authority or a national supervisory authority , the authority should ensure follow - up . ### close cooperation between the authority and the european systemic risk board is essential to give full effectiveness to the functioning of the european systemic risk board and the follow - up to its warnings and recommendations . the authority should share any relevant information with the european systemic risk board . data related to individual undertakings should be provided only upon reasoned request and should be protected systematically and in accordance with union law . upon receipt of warnings or recommendations addressed by the european systemic risk board to the authority or a competent authority , the authority should take immediate action and ensure follow - up .


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , a insurance , reinsurance and occupational pension funds stakeholder group should be established for that purpose , representing in balanced proportions community insurance and reinsurance firms as well as occupational pension funds and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . before adopting draft technical standards , guidelines and recommendations the authority should carry out an impact assessment with a view to ensuring that the best practices for high - quality regulation are met . to provide effective external assistance , an insurance , reinsurance and occupational pension funds stakeholder group should be established , representing in appropriate proportions union insurance and reinsurance firms and insurance intermediaries as well as occupational pension funds , trade unions , academics and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or by eu legislation .


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


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , an insurance , reinsurance and occupational pension funds stakeholder group should be established for that purpose , representing in balanced proportions community insurance and reinsurance firms as well as occupational pension funds , their employees and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . before adopting draft technical standards , guidelines and recommendations the authority should carry out an impact assessment with a view to ensuring that the best practices for high - quality regulation are met . to provide effective external assistance , an insurance , reinsurance and occupational pension funds stakeholder group should be established , representing in balanced proportions union insurance and reinsurance firms and insurance intermediaries as well as occupational pension funds , trade unions , academics and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or by eu legislation .


### a board of supervisors composed of the heads of the relevant national supervisory authority in each member state , and chaired by the chairperson of the authority , should be the principal decision - making organ of the authority . representatives of the commission , the european systemic risk board and the other two european supervisory authorities should participate as observers . members of the board of supervisors should act independently and only in the community ' s interest . for acts of a general nature , including those related to the adoption of technical standards , guidelines and recommendations as well as budgetary matters , it is appropriate to apply the rules on qualified majority as laid down in the treaty , whereas for all other decisions simple majority of members should apply . cases concerning the settlement of disagreements between national supervisory authorities should be examined by a restricted panel . ### a board of supervisors composed of the heads of the relevant national supervisory authority in each member state , and chaired by the chairperson of the authority , should be the principal decision - making organ of the authority . representatives of the commission , the european systemic risk board , the european supervisory authority and the european supervisory authority should participate as observers . members of the board of supervisors should act independently and only in the union ' s interest . for acts of a general nature , including those related to the adoption of technical standards , guidelines and recommendations as well as budgetary matters , it is appropriate to apply the rules on qualified majority as laid down in article 16 of the treaty , whereas for all other decisions simple majority of members should apply . cases concerning the settlement of disagreements between national supervisory authorities should be examined by a restricted panel .


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


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