# Official Journal C 395/29 S

| | ISSN 1977-091X |
| --- | --- |
| Official Journal
  of the European Union | C 395 |
| | |
| English edition | Information and Notices | Volume 6429 September 2021 |

ISSN 1977-091X

Official Journal

of the European Union

C 395

English edition

Information and Notices

Volume 6429 September 2021

---

| Contents | page |
| --- | --- |
| | |
| | EUROPEAN PARLIAMENT
  2020-2021 SESSIONSittings of 5 to 8 October 2020TEXTS ADOPTED | 1 |

Contents

page

EUROPEAN PARLIAMENT
  2020-2021 SESSIONSittings of 5 to 8 October 2020TEXTS ADOPTED

EUROPEAN PARLIAMENT

1

---

| | I   Resolutions, recommendations and opinions |
| --- | --- |
| | RESOLUTIONS |
| | European Parliament |
| | Wednesday 7 October 2020 |
| 2021/C 395/01 | European Parliament resolution of 7 October 2020 on the establishment of an EU Mechanism on Democracy, the Rule of Law and Fundamental Rights (2020/2072(INI)) | 2 |
| 2021/C 395/02 | European Parliament resolution of 7 October 2020 on the implementation of the common commercial policy — annual report 2018 (2019/2197(INI)) | 14 |
| | Thursday 8 October 2020 |
| 2021/C 395/03 | European Parliament resolution of 8 October 2020 on the draft Commission regulation amending the Annex to Regulation (EU) No 231/2012 laying down specifications for food additives listed in Annexes II and III to Regulation (EC) No 1333/2008 of the European Parliament and of the Council as regards specifications for titanium dioxide (E 171) (D066794/04 — 2020/2795(RPS)) | 28 |
| 2021/C 395/04 | European Parliament resolution of 8 October 2020 on the draft Commission regulation amending Regulation (EC) No 1881/2006 as regards maximum levels of acrylamide in certain foodstuffs for infants and young children (D067815/03 — 2020/2735(RPS)) | 32 |
| 2021/C 395/05 | European Parliament resolution of 8 October 2020 on the European Forest Strategy — The Way Forward (2019/2157(INI)) | 37 |
| 2021/C 395/06 | European Parliament resolution of 8 October 2020 on Eritrea, notably the case of Dawit Isaak (2020/2813(RSP)) | 50 |
| 2021/C 395/07 | European Parliament resolution of 8 October 2020 on the Foreign Agents Law in Nicaragua (2020/2814(RSP)) | 54 |
| 2021/C 395/08 | European Parliament resolution of 8 October 2020 on the situation of Ethiopian migrants in detention centres in Saudi Arabia (2020/2815(RSP)) | 58 |
| 2021/C 395/09 | European Parliament resolution of 8 October 2020 on the rule of law and fundamental rights in Bulgaria (2020/2793(RSP)) | 63 |
| 2021/C 395/10 | European Parliament resolution of 8 October 2020 with recommendations to the Commission on Digital Finance: emerging risks in crypto-assets — regulatory and supervisory challenges in the area of financial services, institutions and markets (2020/2034(INL)) | 72 |
| 2021/C 395/11 | European Parliament resolution of 8 October 2020 on further development of the Capital Markets Union (CMU): improving access to capital market finance, in particular by SMEs, and further enabling retail investor participation (2020/2036(INI)) | 89 |
| 2021/C 395/12 | European Parliament resolution of 8 October 2020 on the Youth Guarantee (2020/2764(RSP)) | 101 |

I   Resolutions, recommendations and opinions

RESOLUTIONS

European Parliament

Wednesday 7 October 2020

2021/C 395/01

European Parliament resolution of 7 October 2020 on the establishment of an EU Mechanism on Democracy, the Rule of Law and Fundamental Rights (2020/2072(INI))

2

2021/C 395/02

European Parliament resolution of 7 October 2020 on the implementation of the common commercial policy — annual report 2018 (2019/2197(INI))

14

Thursday 8 October 2020

2021/C 395/03

European Parliament resolution of 8 October 2020 on the draft Commission regulation amending the Annex to Regulation (EU) No 231/2012 laying down specifications for food additives listed in Annexes II and III to Regulation (EC) No 1333/2008 of the European Parliament and of the Council as regards specifications for titanium dioxide (E 171) (D066794/04 — 2020/2795(RPS))

28

2021/C 395/04

European Parliament resolution of 8 October 2020 on the draft Commission regulation amending Regulation (EC) No 1881/2006 as regards maximum levels of acrylamide in certain foodstuffs for infants and young children (D067815/03 — 2020/2735(RPS))

32

2021/C 395/05

European Parliament resolution of 8 October 2020 on the European Forest Strategy — The Way Forward (2019/2157(INI))

37

2021/C 395/06

European Parliament resolution of 8 October 2020 on Eritrea, notably the case of Dawit Isaak (2020/2813(RSP))

50

2021/C 395/07

European Parliament resolution of 8 October 2020 on the Foreign Agents Law in Nicaragua (2020/2814(RSP))

54

2021/C 395/08

European Parliament resolution of 8 October 2020 on the situation of Ethiopian migrants in detention centres in Saudi Arabia (2020/2815(RSP))

58

2021/C 395/09

European Parliament resolution of 8 October 2020 on the rule of law and fundamental rights in Bulgaria (2020/2793(RSP))

63

2021/C 395/10

European Parliament resolution of 8 October 2020 with recommendations to the Commission on Digital Finance: emerging risks in crypto-assets — regulatory and supervisory challenges in the area of financial services, institutions and markets (2020/2034(INL))

72

2021/C 395/11

European Parliament resolution of 8 October 2020 on further development of the Capital Markets Union (CMU): improving access to capital market finance, in particular by SMEs, and further enabling retail investor participation (2020/2036(INI))

89

2021/C 395/12

European Parliament resolution of 8 October 2020 on the Youth Guarantee (2020/2764(RSP))

101

---

| | II   Information |
| --- | --- |
| | INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES |
| | European Parliament |
| | Wednesday 7 October 2020 |
| 2021/C 395/13 | European Parliament decision of 7 October 2020 on the allocation of new responsibilities to Executive Vice-President of the Commission Valdis Dombrovskis (2020/2203(INS)) | 109 |

II   Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Parliament

Wednesday 7 October 2020

2021/C 395/13

European Parliament decision of 7 October 2020 on the allocation of new responsibilities to Executive Vice-President of the Commission Valdis Dombrovskis (2020/2203(INS))

109

---

| | III   Preparatory acts |
| --- | --- |
| | European Parliament |
| | Monday 5 October 2020 |
| 2021/C 395/14 | European Parliament legislative resolution of 5 October 2020 on the Council position at first reading with a view to the adoption of a directive of the European Parliament and of the Council amending Directive 2014/65/EU on markets in financial instruments (06799/1/2020 — C9-0291/2020 — 2018/0047(COD)) | 110 |
| 2021/C 395/15 | European Parliament legislative resolution of 5 October 2020 on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937 (06800/1/2020 — C9-0292/2020 — 2018/0048(COD)) | 111 |
| | Tuesday 6 October 2020 |
| 2021/C 395/16 | P9_TA(2020)0244Amending Regulation (EU) No 514/2014 of the European Parliament and the Council, as regards the decommitment procedure ***IEuropean Parliament legislative resolution of 6 October 2020 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 514/2014 of the European Parliament and the Council, as regards the decommitment procedure (COM(2020)0309 — C9-0202/2020 — 2020/0140(COD))P9_TC1-COD(2020)0140Position of the European Parliament adopted at first reading on 6 October 2020 with a view to the adoption of Regulation (EU) 2020/... of the European Parliament and of the Council amending Regulation (EU) No 514/2014 as regards the decommitment procedure | 112 |
| 2021/C 395/17 | European Parliament legislative resolution of 6 October 2020 on the proposal for a Council decision authorising France to apply a reduced rate of certain indirect taxes on traditional rum produced in Guadeloupe, French Guiana, Martinique and Réunion (COM(2020)0332 — C9-0217/2020 — 2020/0150(CNS)) | 113 |
| 2021/C 395/18 | European Parliament legislative resolution of 6 October 2020 on the proposal for a Council decision on the AIEM tax applicable in the Canary Islands (COM(2020)0355 — C9-0280/2020 — 2020/0163(CNS)) | 114 |
| 2021/C 395/19 | European Parliament legislative resolution of 6 October 2020 on the proposal for a Council decision amending the period of application of Decision No 940/2014/EU concerning the dock dues in the French outermost regions (COM(2020)0371 — C9-0281/2020 — 2020/0174(CNS)) | 115 |
| 2021/C 395/20 | European Parliament resolution of 6 October 2020 on the Council position on Draft amending budget No 7/2020 of the European Union for the financial year 2020 — Update of revenue (own resources) (10430/2020 — C9-0283/2020 — 2020/1999(BUD)) | 116 |
| | Wednesday 7 October 2020 |
| 2021/C 395/21 | European Parliament decision of 7 October 2020 on the appointment of Mairead McGuinness as a Member of the Commission (C9-0295/2020 — 2020/0803(NLE)) | 118 |
| | Thursday 8 October 2020 |
| 2021/C 395/22 | Amendments adopted by the European Parliament on 8 October 2020 on the proposal for a regulation of the European Parliament and of the Council establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law) (COM(2020)0080 — COM(2020)0563 — C9-0077/2020 — 2020/0036(COD)) | 119 |
| 2021/C 395/23 | P9_TA(2020)0254Equivalence of field inspections carried out in Ukraine on cereal seed-producing crops and on the equivalence of cereal seed produced in Ukraine ***IEuropean Parliament legislative resolution of 8 October 2020 on the proposal for a decision of the European Parliament and of the Council amending Council Decision 2003/17/EC as regards the equivalence of field inspections carried out in Ukraine on cereal seed-producing crops and on the equivalence of cereal seed produced in Ukraine (COM(2020)0137 — C9-0100/2020 — 2020/0053(COD))P9_TC1-COD(2020)0053Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Decision (EU) 2020/... of the European Parliament and of the Council amending Council Decision 2003/17/EC as regards the equivalence of field inspections carried out in Ukraine on cereal seed-producing crops and on the equivalence of cereal seed produced in Ukraine | 191 |
| 2021/C 395/24 | P9_TA(2020)0261Application of railway safety and interoperability rules within the Channel tunnel ***IEuropean Parliament legislative resolution of 8 October 2020 on the proposal for a regulation of the European Parliament and of the Council amending Directive (EU) 2016/798, as regards the application of railway safety and interoperability rules within the Channel Fixed Link (COM(2020)0623 — C9-0212/2020 — 2020/0161(COD))P9_TC1-COD(2020)0161Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Regulation (EU) 2020/... of the European Parliament and of the Council amending Directive (EU) 2016/798, as regards the application of railway safety and interoperability rules within the Channel Fixed Link | 192 |
| 2021/C 395/25 | P9_TA(2020)0262Decision empowering France to conclude an international agreement concerning the Channel tunnel ***IEuropean Parliament legislative resolution of 8 October 2020 on the proposal for a decision of the European Parliament and of the Council empowering France to negotiate an agreement supplementing its existing bilateral Treaty with the United Kingdom concerning the construction and operation by private concessionaires of a Channel Fixed Link (COM(2020)0622(COR1) — C9-0211/2020 — 2020/0160(COD))P9_TC1-COD(2020)0160Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Decision (EU) 2020/... of the European Parliament and of the Council empowering France to negotiate, sign and conclude an international agreement supplementing the Treaty between France and the United Kingdom of Great Britain and Northern Ireland concerning the Construction and Operation by Private Concessionaires of a Channel Fixed Link | 193 |
| 2021/C 395/26 | P9_TA(2020)0263Organic production: date of application and certain other dates ***IEuropean Parliament legislative resolution of 8 October 2020 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2018/848 on organic production as regards its date of application and certain other dates referred to in that Regulation (COM(2020)0483 — C9-0286/2020 — 2020/0231(COD))P9_TC1-COD(2020)0231Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Regulation (EU) 2020/... of the European Parliament and of the Council amending Regulation (EU) 2018/848 on organic production and labelling of organic products as regards its date of application and certain other dates referred to in that Regulation | 194 |

III   Preparatory acts

European Parliament

Monday 5 October 2020

2021/C 395/14

European Parliament legislative resolution of 5 October 2020 on the Council position at first reading with a view to the adoption of a directive of the European Parliament and of the Council amending Directive 2014/65/EU on markets in financial instruments (06799/1/2020 — C9-0291/2020 — 2018/0047(COD))

110

2021/C 395/15

European Parliament legislative resolution of 5 October 2020 on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937 (06800/1/2020 — C9-0292/2020 — 2018/0048(COD))

111

Tuesday 6 October 2020

2021/C 395/16

P9_TA(2020)0244Amending Regulation (EU) No 514/2014 of the European Parliament and the Council, as regards the decommitment procedure ***IEuropean Parliament legislative resolution of 6 October 2020 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 514/2014 of the European Parliament and the Council, as regards the decommitment procedure (COM(2020)0309 — C9-0202/2020 — 2020/0140(COD))P9_TC1-COD(2020)0140Position of the European Parliament adopted at first reading on 6 October 2020 with a view to the adoption of Regulation (EU) 2020/... of the European Parliament and of the Council amending Regulation (EU) No 514/2014 as regards the decommitment procedure

112

2021/C 395/17

European Parliament legislative resolution of 6 October 2020 on the proposal for a Council decision authorising France to apply a reduced rate of certain indirect taxes on traditional rum produced in Guadeloupe, French Guiana, Martinique and Réunion (COM(2020)0332 — C9-0217/2020 — 2020/0150(CNS))

113

2021/C 395/18

European Parliament legislative resolution of 6 October 2020 on the proposal for a Council decision on the AIEM tax applicable in the Canary Islands (COM(2020)0355 — C9-0280/2020 — 2020/0163(CNS))

114

2021/C 395/19

European Parliament legislative resolution of 6 October 2020 on the proposal for a Council decision amending the period of application of Decision No 940/2014/EU concerning the dock dues in the French outermost regions (COM(2020)0371 — C9-0281/2020 — 2020/0174(CNS))

115

2021/C 395/20

European Parliament resolution of 6 October 2020 on the Council position on Draft amending budget No 7/2020 of the European Union for the financial year 2020 — Update of revenue (own resources) (10430/2020 — C9-0283/2020 — 2020/1999(BUD))

116

Wednesday 7 October 2020

2021/C 395/21

European Parliament decision of 7 October 2020 on the appointment of Mairead McGuinness as a Member of the Commission (C9-0295/2020 — 2020/0803(NLE))

118

Thursday 8 October 2020

2021/C 395/22

Amendments adopted by the European Parliament on 8 October 2020 on the proposal for a regulation of the European Parliament and of the Council establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law) (COM(2020)0080 — COM(2020)0563 — C9-0077/2020 — 2020/0036(COD))

119

2021/C 395/23

P9_TA(2020)0254Equivalence of field inspections carried out in Ukraine on cereal seed-producing crops and on the equivalence of cereal seed produced in Ukraine ***IEuropean Parliament legislative resolution of 8 October 2020 on the proposal for a decision of the European Parliament and of the Council amending Council Decision 2003/17/EC as regards the equivalence of field inspections carried out in Ukraine on cereal seed-producing crops and on the equivalence of cereal seed produced in Ukraine (COM(2020)0137 — C9-0100/2020 — 2020/0053(COD))P9_TC1-COD(2020)0053Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Decision (EU) 2020/... of the European Parliament and of the Council amending Council Decision 2003/17/EC as regards the equivalence of field inspections carried out in Ukraine on cereal seed-producing crops and on the equivalence of cereal seed produced in Ukraine

191

2021/C 395/24

P9_TA(2020)0261Application of railway safety and interoperability rules within the Channel tunnel ***IEuropean Parliament legislative resolution of 8 October 2020 on the proposal for a regulation of the European Parliament and of the Council amending Directive (EU) 2016/798, as regards the application of railway safety and interoperability rules within the Channel Fixed Link (COM(2020)0623 — C9-0212/2020 — 2020/0161(COD))P9_TC1-COD(2020)0161Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Regulation (EU) 2020/... of the European Parliament and of the Council amending Directive (EU) 2016/798, as regards the application of railway safety and interoperability rules within the Channel Fixed Link

192

2021/C 395/25

P9_TA(2020)0262Decision empowering France to conclude an international agreement concerning the Channel tunnel ***IEuropean Parliament legislative resolution of 8 October 2020 on the proposal for a decision of the European Parliament and of the Council empowering France to negotiate an agreement supplementing its existing bilateral Treaty with the United Kingdom concerning the construction and operation by private concessionaires of a Channel Fixed Link (COM(2020)0622(COR1) — C9-0211/2020 — 2020/0160(COD))P9_TC1-COD(2020)0160Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Decision (EU) 2020/... of the European Parliament and of the Council empowering France to negotiate, sign and conclude an international agreement supplementing the Treaty between France and the United Kingdom of Great Britain and Northern Ireland concerning the Construction and Operation by Private Concessionaires of a Channel Fixed Link

193

2021/C 395/26

P9_TA(2020)0263Organic production: date of application and certain other dates ***IEuropean Parliament legislative resolution of 8 October 2020 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2018/848 on organic production as regards its date of application and certain other dates referred to in that Regulation (COM(2020)0483 — C9-0286/2020 — 2020/0231(COD))P9_TC1-COD(2020)0231Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Regulation (EU) 2020/... of the European Parliament and of the Council amending Regulation (EU) 2018/848 on organic production and labelling of organic products as regards its date of application and certain other dates referred to in that Regulation

194

---

| Key to symbols used






  - | Consultation procedure |
| --- | --- |
| *** | Consent procedure |
| ***I | Ordinary legislative procedure: first reading |
| ***II | Ordinary legislative procedure: second reading |
| ***III | Ordinary legislative procedure: third reading |

Key to symbols used

*

Consultation procedure

***

Consent procedure

***I

Ordinary legislative procedure: first reading

***II

Ordinary legislative procedure: second reading

***III

Ordinary legislative procedure: third reading

(The type of procedure depends on the legal basis proposed by the draft act.)

Amendments by Parliament:

New text is highlighted in
  bold italics
  . Deletions are indicated using either the ▌symbol or strikeout. Replacements are indicated by highlighting the new text in
  bold italics
  and by deleting or striking out the text that has been replaced.

bold italics

bold italics

| EN | |
| --- | --- |

EN

---

29.9.2021

| 29.9.2021 | EN | Official Journal of the European Union | C 395/1 |
| --- | --- | --- | --- |

EN

Official Journal of the European Union

C 395/1

---

EUROPEAN PARLIAMENT

2020-2021 SESSION

Sittings of 5 to 8 October 2020

TEXTS ADOPTED

---

I Resolutions, recommendations and opinions

RESOLUTIONS

European Parliament

Wednesday 7 October 2020

| 29.9.2021 | EN | Official Journal of the European Union | C 395/2 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/2

---

P9_TA(2020)0251

The establishment of an EU Mechanism on Democracy, the Rule of Law and Fundamental Rights

European Parliament resolution of 7 October 2020 on the establishment of an EU Mechanism on Democracy, the Rule of Law and Fundamental Rights (2020/2072(INI))

(2021/C 395/01)

The European Parliament,

| — | having regard to Article 295 of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 295 of the Treaty on the Functioning of the European Union,

| — | having regard, in particular, to Article 2, Article 3(1), the second subparagraph of Article 3(3), Article 4(3) and Articles 5, 6, 7 and 11 of the Treaty on European Union, |
| --- | --- |

—

having regard, in particular, to Article 2, Article 3(1), the second subparagraph of Article 3(3), Article 4(3) and Articles 5, 6, 7 and 11 of the Treaty on European Union,

| — | having regard to the articles of the Treaty on the Functioning of the European Union relating to the respect for, and the protection and promotion of, democracy, the rule of law and fundamental rights in the Union, including Articles 70, 258, 259, 260, 263 and 265 thereof, |
| --- | --- |

—

having regard to the articles of the Treaty on the Functioning of the European Union relating to the respect for, and the protection and promotion of, democracy, the rule of law and fundamental rights in the Union, including Articles 70, 258, 259, 260, 263 and 265 thereof,

| — | having regard to Protocol No 1 on the role of national parliaments in the European Union and Protocol No 2 on the application of the principles of subsidiarity and proportionality, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Protocol No 1 on the role of national parliaments in the European Union and Protocol No 2 on the application of the principles of subsidiarity and proportionality, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union,

| — | having regard to the Charter of Fundamental Rights of the European Union, |
| --- | --- |

—

having regard to the Charter of Fundamental Rights of the European Union,

| — | having regard to the case law of the Court of Justice of the European Union, |
| --- | --- |

—

having regard to the case law of the Court of Justice of the European Union,

| — | having regard to the Copenhagen criteria and the body of Union rules that a candidate country must fulfil if it wishes to join the Union (the acquis), |
| --- | --- |

—

having regard to the Copenhagen criteria and the body of Union rules that a candidate country must fulfil if it wishes to join the Union (the acquis),

| — | having regard to the Universal Declaration of Human Rights, |
| --- | --- |

—

having regard to the Universal Declaration of Human Rights,

| — | having regard to the United Nations instruments on the protection of human rights and fundamental freedoms and the recommendations and reports of the United Nations Universal Periodic Review, as well as the case law of the United Nations treaty bodies and the special procedures of the Human Rights Council, |
| --- | --- |

—

having regard to the United Nations instruments on the protection of human rights and fundamental freedoms and the recommendations and reports of the United Nations Universal Periodic Review, as well as the case law of the United Nations treaty bodies and the special procedures of the Human Rights Council,

| — | having regard to the United Nations Declaration on Human Rights Defenders of 8 March 1999, |
| --- | --- |

—

having regard to the United Nations Declaration on Human Rights Defenders of 8 March 1999,

| — | having regard to the recommendations and reports of the Office for Democratic Institutions and Human Rights, the High Commissioner on National Minorities, the Representative on Freedom of the Media and other bodies of the Organization for Security and Co-operation in Europe, |
| --- | --- |

—

having regard to the recommendations and reports of the Office for Democratic Institutions and Human Rights, the High Commissioner on National Minorities, the Representative on Freedom of the Media and other bodies of the Organization for Security and Co-operation in Europe,

| — | having regard to the European Convention for the Protection of Human Rights and Fundamental Freedoms, the European Social Charter, the case law of the European Court of Human Rights and the European Committee of Social Rights, and the conventions, recommendations, resolutions and reports of the Parliamentary Assembly, the Committee of Ministers, the Human Rights Commissioner, the European Commission Against Racism and Intolerance, the Steering Committee on Anti-Discrimination, Diversity and Inclusion, the Venice Commission and other bodies of the Council of Europe, |
| --- | --- |

—

having regard to the European Convention for the Protection of Human Rights and Fundamental Freedoms, the European Social Charter, the case law of the European Court of Human Rights and the European Committee of Social Rights, and the conventions, recommendations, resolutions and reports of the Parliamentary Assembly, the Committee of Ministers, the Human Rights Commissioner, the European Commission Against Racism and Intolerance, the Steering Committee on Anti-Discrimination, Diversity and Inclusion, the Venice Commission and other bodies of the Council of Europe,

| — | having regard to the Memorandum of Understanding between the Council of Europe and the European Union of 23 May 2007, |
| --- | --- |

—

having regard to the Memorandum of Understanding between the Council of Europe and the European Union of 23 May 2007,

| — | having regard to the United Nations Convention against Corruption, |
| --- | --- |

—

having regard to the United Nations Convention against Corruption,

| — | having regard to the agreement establishing the Group of States against Corruption, |
| --- | --- |

—

having regard to the agreement establishing the Group of States against Corruption,

| — | having regard to the Rule of Law Checklist adopted by the Venice Commission at its 106th Plenary Session on 18 March 2016, |
| --- | --- |

—

having regard to the Rule of Law Checklist adopted by the Venice Commission at its 106th Plenary Session on 18 March 2016,

| — | having regard to the Council of Europe’s toolkit for Member States ‘Respecting democracy, rule of law and human rights in the framework of the COVID-19 sanitary crisis’ of 7 April 2020, |
| --- | --- |

—

having regard to the Council of Europe’s toolkit for Member States ‘Respecting democracy, rule of law and human rights in the framework of the COVID-19 sanitary crisis’ of 7 April 2020,

| — | having regard to the 2020 Annual Report by the partner organisations to the Council of Europe Platform to Promote the Protection of Journalism and Safety of Journalists, |
| --- | --- |

—

having regard to the 2020 Annual Report by the partner organisations to the Council of Europe Platform to Promote the Protection of Journalism and Safety of Journalists,

| — | having regard to the Commission communication of 17 July 2019 entitled ‘Strengthening the rule of law within the Union — A blueprint for action’ (COM(2019)0343), |
| --- | --- |

—

having regard to the Commission communication of 17 July 2019 entitled ‘Strengthening the rule of law within the Union — A blueprint for action’ (COM(2019)0343),

| — | having regard to the Commission communication of 29 January 2020 containing the Commission Work Programme 2020 (COM(2020)0037) and the adjusted Commission Work Programme of 27 May 2020 (COM(2020)0440), |
| --- | --- |

—

having regard to the Commission communication of 29 January 2020 containing the Commission Work Programme 2020 (COM(2020)0037) and the adjusted Commission Work Programme of 27 May 2020 (COM(2020)0440),

| — | having regard to the EU Justice Scoreboard 2020, |
| --- | --- |

—

having regard to the EU Justice Scoreboard 2020,

| — | having regard to the European Economic and Social Committee Opinion of 19 June 2019 entitled ‘Further strengthening the Rule of Law within the Union. State of play and possible next steps’, which proposed the establishment of an annual Forum on Fundamental Rights and the Rule of Law, |
| --- | --- |

—

having regard to the European Economic and Social Committee Opinion of 19 June 2019 entitled ‘Further strengthening the Rule of Law within the Union. State of play and possible next steps’, which proposed the establishment of an annual Forum on Fundamental Rights and the Rule of Law,

| — | having regard to the report of the European Economic and Social Committee’s Group on Fundamental Rights and the Rule of Law of June 2020 entitled ‘National developments from a civil society perspective, 2018-2019’, |
| --- | --- |

—

having regard to the report of the European Economic and Social Committee’s Group on Fundamental Rights and the Rule of Law of June 2020 entitled ‘National developments from a civil society perspective, 2018-2019’,

| — | having regard to the report of the European Union Agency for Fundamental Rights entitled ‘Challenges facing civil society organisations working on human rights in the EU’, published on 17 January 2018, and to its other reports and data, |
| --- | --- |

—

having regard to the report of the European Union Agency for Fundamental Rights entitled ‘Challenges facing civil society organisations working on human rights in the EU’, published on 17 January 2018, and to its other reports and data,

| — | having regard to the report of the European Institute for Gender Equality entitled ‘Beijing + 25: the fifth review of the implementation of the Beijing Platform for Action in the EU Member States’, published on 5 March 2020, |
| --- | --- |

—

having regard to the report of the European Institute for Gender Equality entitled ‘Beijing + 25: the fifth review of the implementation of the Beijing Platform for Action in the EU Member States’, published on 5 March 2020,

| — | having regard to the conclusions of the Council of the European Union and the Member States meeting within the Council on ensuring respect for the rule of law of 16 December 2014, |
| --- | --- |

—

having regard to the conclusions of the Council of the European Union and the Member States meeting within the Council on ensuring respect for the rule of law of 16 December 2014,

| — | having regard to its resolution of 25 October 2016 with recommendations to the Commission on the establishment of an EU mechanism on democracy, the rule of law and fundamental rights (1), |
| --- | --- |

—

having regard to its resolution of 25 October 2016 with recommendations to the Commission on the establishment of an EU mechanism on democracy, the rule of law and fundamental rights (1),

| — | having regards to its resolution of 19 April 2018 on the need to establish a European Values Instrument to support civil society organisations which promote fundamental values within the European Union at local and national level (2), |
| --- | --- |

—

having regards to its resolution of 19 April 2018 on the need to establish a European Values Instrument to support civil society organisations which promote fundamental values within the European Union at local and national level (2),

| — | having regard to its legislative resolution of 17 April 2019 on the proposal for a regulation of the European Parliament and of the Council establishing the Rights and Values programme (3), |
| --- | --- |

—

having regard to its legislative resolution of 17 April 2019 on the proposal for a regulation of the European Parliament and of the Council establishing the Rights and Values programme (3),

| — | having regard to its resolution of 14 November 2018 on the need for a comprehensive EU mechanism for the protection of democracy, the rule of law and fundamental rights (4), |
| --- | --- |

—

having regard to its resolution of 14 November 2018 on the need for a comprehensive EU mechanism for the protection of democracy, the rule of law and fundamental rights (4),

| — | having regard to its resolution of 16 January 2019 on the situation of fundamental rights in the European Union in 2017 (5), |
| --- | --- |

—

having regard to its resolution of 16 January 2019 on the situation of fundamental rights in the European Union in 2017 (5),

| — | having regard to its resolution of 13 February 2019 on experiencing backlash in women’s rights and gender equality in the EU (6), |
| --- | --- |

—

having regard to its resolution of 13 February 2019 on experiencing backlash in women’s rights and gender equality in the EU (6),

| — | having regard to its resolution of 28 March 2019 on the situation of rule of law and fight against corruption in the EU, specifically in Malta and Slovakia (7), |
| --- | --- |

—

having regard to its resolution of 28 March 2019 on the situation of rule of law and fight against corruption in the EU, specifically in Malta and Slovakia (7),

| — | having regard to its resolution of 18 December 2019 on public discrimination and hate speech against LGBTI people, including LGBTI free zones (8), |
| --- | --- |

—

having regard to its resolution of 18 December 2019 on public discrimination and hate speech against LGBTI people, including LGBTI free zones (8),

| — | having regard to its resolution of 15 January 2020 on human rights and democracy in the world and the European Union’s policy on the matter — annual report 2018 (9), |
| --- | --- |

—

having regard to its resolution of 15 January 2020 on human rights and democracy in the world and the European Union’s policy on the matter — annual report 2018 (9),

| — | having regard to its resolution of 16 January 2020 on ongoing hearings under Article 7(1) of the TEU regarding Poland and Hungary (10), |
| --- | --- |

—

having regard to its resolution of 16 January 2020 on ongoing hearings under Article 7(1) of the TEU regarding Poland and Hungary (10),

| — | having regard to its resolution of 17 April 2020 on EU coordinated action to combat the Covid-19 pandemic and its consequences (11), |
| --- | --- |

—

having regard to its resolution of 17 April 2020 on EU coordinated action to combat the Covid-19 pandemic and its consequences (11),

| — | having regard to the joint civil society organisation recommendations entitled ‘From blueprint to footprint: Safeguarding media freedom and pluralism through the European Rule of Law Mechanism’ of April 2020, |
| --- | --- |

—

having regard to the joint civil society organisation recommendations entitled ‘From blueprint to footprint: Safeguarding media freedom and pluralism through the European Rule of Law Mechanism’ of April 2020,

| — | having regard to the report of the European Network of National Human Rights Institutions entitled ‘The Rule of Law in the European Union’ of 11 May 2020, |
| --- | --- |

—

having regard to the report of the European Network of National Human Rights Institutions entitled ‘The Rule of Law in the European Union’ of 11 May 2020,

| — | having regard to the Human Rights and Democracy Network Working Group on EU Internal Human Rights Policy’s submission of 4 May 2020 to the European Commission in the framework of the stakeholder consultation for the Rule of Law Report, |
| --- | --- |

—

having regard to the Human Rights and Democracy Network Working Group on EU Internal Human Rights Policy’s submission of 4 May 2020 to the European Commission in the framework of the stakeholder consultation for the Rule of Law Report,

| — | having regard to its European added value assessment accompanying the legislative initiative report on an EU mechanism on democracy, the rule of law and fundamental rights of October 2016, |
| --- | --- |

—

having regard to its European added value assessment accompanying the legislative initiative report on an EU mechanism on democracy, the rule of law and fundamental rights of October 2016,

| — | having regard to the Parliament’s Preliminary Assessment on the European added value of an EU mechanism on democracy, rule of law and fundamental rights of April 2020, |
| --- | --- |

—

having regard to the Parliament’s Preliminary Assessment on the European added value of an EU mechanism on democracy, rule of law and fundamental rights of April 2020,

| — | having regard to Rules 46, 54 and 148 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 46, 54 and 148 of its Rules of Procedure,

| — | having regard to the opinions of the Committee on Legal Affairs and the Committee on Constitutional Affairs, |
| --- | --- |

—

having regard to the opinions of the Committee on Legal Affairs and the Committee on Constitutional Affairs,

| — | having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs (A9-0170/2020), |
| --- | --- |

—

having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs (A9-0170/2020),

| A. | whereas the Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities, as set out in Article 2 of the Treaty on European Union (TEU); whereas those values are values which are common to the Member States and to which all Member States have freely subscribed; whereas democracy, the rule of law and fundamental rights are mutually reinforcing values; |
| --- | --- |

A.

whereas the Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities, as set out in Article 2 of the Treaty on European Union (TEU); whereas those values are values which are common to the Member States and to which all Member States have freely subscribed; whereas democracy, the rule of law and fundamental rights are mutually reinforcing values;

| B. | whereas the Union has codified in its accession criteria that Union membership requires that a candidate country has achieved stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; points out, however, that the Union lacks effective tools to enforce those criteria once a country has become part of the Union; |
| --- | --- |

B.

whereas the Union has codified in its accession criteria that Union membership requires that a candidate country has achieved stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; points out, however, that the Union lacks effective tools to enforce those criteria once a country has become part of the Union;

| C. | whereas the preceding decade has seen brazen attacks against Union values in several Member States; whereas Parliament has addressed those worrying developments repeatedly in its resolutions since 2011, including the activation of Article 7 TEU in 2018; whereas Parliament has been calling since 2016 for a comprehensive, preventive and evidence-based monitoring in this field via an EU mechanism on democracy, the rule of law and fundamental rights; |
| --- | --- |

C.

whereas the preceding decade has seen brazen attacks against Union values in several Member States; whereas Parliament has addressed those worrying developments repeatedly in its resolutions since 2011, including the activation of Article 7 TEU in 2018; whereas Parliament has been calling since 2016 for a comprehensive, preventive and evidence-based monitoring in this field via an EU mechanism on democracy, the rule of law and fundamental rights;

| D. | whereas vulnerable groups such as women, persons with disabilities, Roma, LGBTI persons and elderly persons continue not having their rights fully respected in some Member States and are not fully protected from hate and discrimination, in breach of Union values as provided for in Article 2 TEU and of the right to non-discrimination provided for in Article 21 of the Charter of Fundamental Rights of the European Union (the Charter); whereas emergency measures taken in response to the COVID-19 pandemic have further strained fundamental rights and democratic checks and balances; |
| --- | --- |

D.

whereas vulnerable groups such as women, persons with disabilities, Roma, LGBTI persons and elderly persons continue not having their rights fully respected in some Member States and are not fully protected from hate and discrimination, in breach of Union values as provided for in Article 2 TEU and of the right to non-discrimination provided for in Article 21 of the Charter of Fundamental Rights of the European Union (the Charter); whereas emergency measures taken in response to the COVID-19 pandemic have further strained fundamental rights and democratic checks and balances;

| E. | whereas approximately 10 % of Union citizens belong to a national minority; whereas respecting the rights of minorities is an integral part of the values of the Union as set out in Article 2 TEU; whereas minorities contribute to the cultural and linguistic diversity of the Union; whereas there is currently no Union legal framework to guarantee and monitor minority rights; |
| --- | --- |

E.

whereas approximately 10 % of Union citizens belong to a national minority; whereas respecting the rights of minorities is an integral part of the values of the Union as set out in Article 2 TEU; whereas minorities contribute to the cultural and linguistic diversity of the Union; whereas there is currently no Union legal framework to guarantee and monitor minority rights;

| F. | whereas breaches of the values referred to in Article 2 TEU, without proper response and consequences at Union level, weaken the cohesion of the European project, the rights of all Union citizens and mutual trust among the Member States; |
| --- | --- |

F.

whereas breaches of the values referred to in Article 2 TEU, without proper response and consequences at Union level, weaken the cohesion of the European project, the rights of all Union citizens and mutual trust among the Member States;

| G. | whereas corruption poses a serious threat to democracy, the rule of law and the fair treatment of all citizens; |
| --- | --- |

G.

whereas corruption poses a serious threat to democracy, the rule of law and the fair treatment of all citizens;

| H. | whereas independent journalism and access to pluralistic information are key pillars of democracy; whereas the worrying state of media freedom and pluralism in the Union has not been addressed in a sufficiently vigorous manner; whereas civil society is essential for any democracy to thrive; whereas the shrinking space for civil society contributes to violations of democracy, the rule of law and fundamental rights; whereas Union institutions are to maintain an open, transparent and regular dialogue with representative associations and civil society at all levels; |
| --- | --- |

H.

whereas independent journalism and access to pluralistic information are key pillars of democracy; whereas the worrying state of media freedom and pluralism in the Union has not been addressed in a sufficiently vigorous manner; whereas civil society is essential for any democracy to thrive; whereas the shrinking space for civil society contributes to violations of democracy, the rule of law and fundamental rights; whereas Union institutions are to maintain an open, transparent and regular dialogue with representative associations and civil society at all levels;

| I. | whereas the independence, quality and efficiency of national justice systems are crucial for the achievement of effective justice; whereas the availability of legal aid and the level of court fees can have a major impact on access to justice; whereas the Charter has the same legal value as the Treaties; whereas, in accordance with the guidance of the Court of Justice of the European Union, the Charter is applied by Member States’ judicial authorities only when implementing legal acts of the Union, it is, however, important for the fostering of a common legal, judicial and rule of law culture that the rights as enshrined in the Charter be always taken into account; |
| --- | --- |

I.

whereas the independence, quality and efficiency of national justice systems are crucial for the achievement of effective justice; whereas the availability of legal aid and the level of court fees can have a major impact on access to justice; whereas the Charter has the same legal value as the Treaties; whereas, in accordance with the guidance of the Court of Justice of the European Union, the Charter is applied by Member States’ judicial authorities only when implementing legal acts of the Union, it is, however, important for the fostering of a common legal, judicial and rule of law culture that the rights as enshrined in the Charter be always taken into account;

| J. | whereas the Commission published its 2020 Rule of Law Report on 30 September 2020 (COM(2020)0580), to be followed by the renewed Strategy for the Implementation of the Charter of Fundamental Rights and the European Democracy Action Plan; |
| --- | --- |

J.

whereas the Commission published its 2020 Rule of Law Report on 30 September 2020 (COM(2020)0580), to be followed by the renewed Strategy for the Implementation of the Charter of Fundamental Rights and the European Democracy Action Plan;

| K. | whereas a regulation on the protection of the Union’s budget in case of generalised deficiencies as regards the rule of law in the Member States, once adopted, would become an indispensable tool in safeguarding the rule of law within the Union; |
| --- | --- |

K.

whereas a regulation on the protection of the Union’s budget in case of generalised deficiencies as regards the rule of law in the Member States, once adopted, would become an indispensable tool in safeguarding the rule of law within the Union;

| L. | whereas any monitoring mechanism must closely involve stakeholders active in the protection and promotion of democracy, the rule of law and fundamental rights, including civil society, the Council of Europe and United Nations bodies, the Organization for Security and Co-operation, the European Union Agency for Fundamental Rights, national human rights institutions, relevant authorities and professional associations supporting judiciaries in the independent delivery of justice; whereas, therefore, adequate Union funding is necessary for civil society, particularly through the Justice Programme and the Citizens, Equality, Rights and Values Programme; |
| --- | --- |

L.

whereas any monitoring mechanism must closely involve stakeholders active in the protection and promotion of democracy, the rule of law and fundamental rights, including civil society, the Council of Europe and United Nations bodies, the Organization for Security and Co-operation, the European Union Agency for Fundamental Rights, national human rights institutions, relevant authorities and professional associations supporting judiciaries in the independent delivery of justice; whereas, therefore, adequate Union funding is necessary for civil society, particularly through the Justice Programme and the Citizens, Equality, Rights and Values Programme;

| M. | whereas it is necessary to strengthen and streamline existing mechanisms and develop an effective mechanism to ensure that the principles and values enshrined in the Treaties are upheld throughout the Union; |
| --- | --- |

M.

whereas it is necessary to strengthen and streamline existing mechanisms and develop an effective mechanism to ensure that the principles and values enshrined in the Treaties are upheld throughout the Union;

| N. | whereas Parliament, the Commission and the Council (the ‘three institutions’) share political responsibility for upholding Union values, within the limits of the powers conferred on them by the Treaties; whereas an interinstitutional agreement based on Article 295 of the Treaty on the Functioning of the European Union (TFEU) would ensure the necessary arrangements to facilitate the cooperation of the three institutions in that regard; whereas, pursuant to Article 295 TFEU, any of the three institutions may propose such an agreement; |
| --- | --- |

N.

whereas Parliament, the Commission and the Council (the ‘three institutions’) share political responsibility for upholding Union values, within the limits of the powers conferred on them by the Treaties; whereas an interinstitutional agreement based on Article 295 of the Treaty on the Functioning of the European Union (TFEU) would ensure the necessary arrangements to facilitate the cooperation of the three institutions in that regard; whereas, pursuant to Article 295 TFEU, any of the three institutions may propose such an agreement;

| 1. | Emphasises the urgent need for the Union to develop a robust, comprehensive and positive agenda for effectively protecting and reinforcing democracy, the rule of law and fundamental rights for all its citizens; insists that the Union must remain a champion of freedom and justice in Europe and the world; |
| --- | --- |

1.

| 2. | Warns that the Union is facing an unprecedented and escalating crisis of its founding values, which threatens its long-term survival as a democratic peace project; is gravely concerned by the rise and entrenchment of autocratic and illiberal tendencies, further compounded by the COVID-19 pandemic and economic recession, as well as corruption, disinformation and state capture, in several Member States; underlines the dangers of this trend for the cohesion of the Union’s legal order, the protection of the fundamental rights of all its citizens, the functioning of its single market, the effectiveness of its common policies and its international credibility; |
| --- | --- |

2.

| 3. | Recalls that the Union remains structurally ill-equipped to tackle democratic, fundamental rights and rule of law violations and backsliding in the Member States; regrets the inability of the Council to make meaningful progress in enforcing Union values in ongoing Article 7 TEU procedures; notes that the Council’s failure to apply Article 7 TEU effectively is in fact enabling continued divergence from the values provided for in Article 2 TEU; notes with concern the disjointed nature of the Union’s toolkit in that field and calls for it to be streamlined and properly enforced; |
| --- | --- |

3.

| 4. | Welcomes the Commission’s work on its annual Rule of Law Report; welcomes the fact that corruption and media freedom is part of the annual assessment; notes, however, that it fails to encompass the areas of democracy and fundamental rights; particularly regrets that freedom of association and the shrinking space for civil society are not part of the annual assessment; underlines with concern that vulnerable groups, including women, persons with disabilities, Roma, LGBTI persons and elderly persons, continue not seeing their rights fully respected in some Member States and are not fully protected from hate and discrimination, in breach of Union values as provided for in Article 2 TEU; recalls that Parliament has repeatedly called for a monitoring mechanism to cover the full scope of Article 2 TEU; reiterates the need for a an objective and evidence-based monitoring mechanism enshrined in a legal act binding the three institutions to a transparent and regularised process, with clearly defined responsibilities, so that the protection and promotion of all Union values becomes a permanent and visible part of the Union agenda; |
| --- | --- |

4.

| 5. | Proposes the establishment of an EU mechanism on democracy, the rule of law and fundamental rights (the ‘Mechanism’), building on Parliament’s 2016 proposal and the Commission’s annual Rule of Law Report, to be governed by an interinstitutional agreement between the three institutions, consisting of an Annual Monitoring Cycle on Union values, covering all aspects of Article 2 TEU and applying equally, objectively and fairly to all Member States, while respecting the principles of subsidiarity and proportionality; |
| --- | --- |

5.

| 6. | Underlines that the Annual Monitoring Cycle must contain country-specific clear recommendations, with timelines and targets for implementation, to be followed up in subsequent annual or urgent reports; stresses that failure to implement the recommendations must be linked to concrete Union measures, including procedures under Article 7 TEU, infringement proceedings and budgetary conditionality once in force; points out that recommendations should not only be aimed at redressing violations but should also promote policies enabling citizens to benefit from Union rights and values; |
| --- | --- |

6.

| 7. | Points out that the Mechanism should consolidate and supersede existing instruments to avoid duplication, in particular the Commission’s annual Rule of Law Report, the Commission’s Rule of Law Framework, the Commission’s annual reporting on the application of the Charter, the Council’s Rule of Law Dialogue and the Cooperation and Verification Mechanism (CVM), while increasing complementarity and coherence with other available tools, including procedures under Article 7 TEU, infringement proceedings and budgetary conditionality once in force; considers that the three institutions should use the findings from the Annual Monitoring Cycle in their assessment for the purposes of triggering Article 7 TEU and of budgetary conditionality once in force; stresses that the roles and prerogatives of each of the three institutions must be respected; |
| --- | --- |

7.

| 8. | Underlines that judicial independence is integral to judicial decision making and is a requirement resulting from the principle of effective legal protection set out in Article 19 TEU; is worried that recent attacks on the rule of law have mainly consisted of attempts to jeopardise judicial independence and stresses that every national court is also a European court; urges the Commission to use all the instruments at its disposal against any attempt by governments of Member States to endanger the independence of national courts and to inform Parliament of any such situation in a timely manner; |
| --- | --- |

8.

| 9. | Recalls that the accession of the Union to the European Convention for the Protection of Human Rights and Fundamental Freedoms is a legal obligation provided for under Article 6(2) TEU; reiterates the need for a swift conclusion of the accession process in order to ensure a consistent framework for human rights protection throughout Europe and to further strengthen the protection of fundamental rights and freedoms within the Union; calls therefore on the Commission to step up efforts to fully implement the Treaties and conclude the accession process without undue delay; |
| --- | --- |

9.

| 10. | Recalls the indispensable role to be played by civil society, national human rights institutions, equality bodies and other relevant actors in all stages of the Annual Monitoring Cycle, from providing input to facilitating implementation and monitoring; underlines the need to provide human rights defenders and reporting actors with protection at both national and Union level, including against abuses of court actions where necessary, along with adequate funding at all levels; calls in that regard for the creation of a statute for European cross-border associations and non-profit organisations after a thorough impact assessment; stresses the contribution of whistleblowers to safeguarding the rule of law and fighting corruption; calls on the Commission to closely monitor the transposition and application of Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law (12); points out that the accreditation status of national human rights institutions and the space for civil society may themselves serve as indicators for assessment purposes; encourages national parliaments to hold public debates and adopt positions on the outcome of the monitoring cycle; highlights that training of justice professionals is essential for the proper implementation and application of Union law and thus for the strengthening of a common legal culture throughout the Union; considers that the upcoming European judicial training strategy must put additional focus on promoting the rule of law and judicial independence and include training on skills and non-legal issues to make judges better prepared to resist undue pressure; encourages the Commission and the Member States to further promote and facilitate the dialogue between courts and legal practitioners by fostering the regular exchange of information and best practices in order to strengthen and advance a Union area of justice based on democracy, the rule of law and fundamental rights; stresses the need to ensure adequate funding for the sectoral Justice Programme and Citizens, Equality, Rights and Values Programme in the upcoming Multiannual Financial Framework, as those programmes aim to protect and promote Union values and develop a Union area of justice based on the rule of law and to support civil society; |
| --- | --- |

10.

| 11. | Points to the complementarity that should exist between the EU Justice Scoreboard, which allows for a comparison between Member States’ judicial systems, and the Mechanism; notes that according to the 2020 EU Justice Scoreboard there are still significant differences among Member States regarding the number of pending cases and that the building up of backlogs has increased in some Member States, that not all Member States offer training on ICT skills aimed at adapting to digitalisation and facilitating access to justice, that legal aid has become less accessible in some Member States over the years and that gender equality has not yet been ensured in the judicial systems in most Member States; |
| --- | --- |

11.

| 12. | Reaffirms the role of Parliament, in accordance with Article 7 TEU, in monitoring compliance with Union values; reiterates the call for Parliament to be able to present its reasoned proposal to the Council and to attend Article 7 hearings when it is Parliament that initiated the procedure, respecting the prerogatives of each of the three institutions and the principle of sincere cooperation; calls on the Council to keep Parliament regularly informed and closely involved and to work in a transparent manner; believes that the Mechanism, underpinned by an interinstitutional agreement, will provide the necessary framework for better coordination; |
| --- | --- |

12.

| 13. | Is of the view that, in the long-term, strengthening the Union’s ability to promote and defend its constitutional core might require Treaty change; looks forward to the reflection and conclusions of the Conference on the Future of Europe in that regard; stresses that the effectiveness of the Article 7 TEU procedure should be enhanced by revising the majority necessary for action and reinforcing the sanctioning mechanism; invites the Conference on the Future of Europe to consider strengthening the role of the Court of Justice of the European Union in protecting the Union’s founding values; calls for a revision of Council Regulation (EC) No 168/2007 of 15 February 2007 establishing a European Union Agency for Fundamental Rights (13), following a thorough impact assessment, with a view to strengthening and enlarging its mandate to cover all the values referred to in Article 2 TEU; |
| --- | --- |

13.

| 14. | Strongly believes that addressing the crisis of Union values, including through the proposed Mechanism, is a precondition for re-establishing mutual trust among Member States, thus enabling the Union as a whole to sustain and further all common policies; |
| --- | --- |

14.

| 15. | Regrets that the European Council, in its conclusions of 21 July 2020, weakened the budgetary conditionality mechanism proposed by the Commission; reiterates its call to ensure that systemic breaches of the values referred to in Article 2 TEU are made incompatible with Union funding; stresses the need to employ reverse qualified majority for the protection of the Union’s budget, without which the effectiveness of the new budgetary conditionality mechanism would be under threat; demands that the application of budgetary conditionality be accompanied by measures aimed at mitigating any potential impact on individual beneficiaries of Union funding, including civil society organisations; underlines that the budgetary conditionality mechanism cannot be substituted by the proposed Annual Monitoring Cycle alone; urges the European Council to act on its promise made in the Sibiu Declaration of 9 May 2019 to protect democracy and the rule of law; |
| --- | --- |

15.

| 16. | Invites the Commission and the Council to enter without delay into negotiations with Parliament on an interinstitutional agreement in accordance with Article 295 TFEU; considers the proposal set out in the Annex hereto to constitute an appropriate basis for such negotiations; |
| --- | --- |

16.

| 17. | Instructs its President to forward this resolution and the accompanying proposal to the Commission and the Council. |
| --- | --- |

17.

---

(1)  OJ C 215, 19.6.2018, p. 162.

(2)  OJ C 390, 18.11.2019, p. 117.

(3)  Texts adopted, P8_TA(2019)0407.

(4)  Texts adopted, P8_TA(2018)0456.

(5)  Texts adopted, P8_TA(2019)0032.

(6)  Texts adopted, P8_TA(2019)0111.

(7)  Texts adopted, P8_TA(2019)0328.

(8)  Texts adopted, P9_TA(2019)0101.

(9)  Texts adopted, P9_TA(2020)0007.

(10)  Texts adopted, P9_TA(2020)0014.

(11)  Texts adopted, P9_TA(2020)0054.

(12)  OJ L 305, 26.11.2019, p. 17.

(13)  OJ L 53, 22.2.2007, p. 1.

---

ANNEX TO THE RESOLUTION:

Proposal for an Interinstitutional Agreement on Reinforcing Union Values

THE EUROPEAN PARLIAMENT, THE COUNCIL OF THE EUROPEAN UNION AND THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union and in particular Article 295 thereof,

Whereas:

| (1) | According to Article 2 of the Treaty on European Union (TEU), the Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities (‘Union values’). |
| --- | --- |

(1)

According to Article 2 of the Treaty on European Union (TEU), the Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities (‘Union values’).

| (2) | Pursuant to Article 49 TEU, respect for and commitment to promoting Union values is a fundamental condition of Union membership. In accordance with Article 7 TEU, the existence of a serious and persistent breach by a Member State of Union values can lead to the suspension of the voting rights of the representative of the government of that Member State in the Council. Respect for Union values forms the basis of a high level of confidence and mutual trust between Member States. |
| --- | --- |

(2)

Pursuant to Article 49 TEU, respect for and commitment to promoting Union values is a fundamental condition of Union membership. In accordance with Article 7 TEU, the existence of a serious and persistent breach by a Member State of Union values can lead to the suspension of the voting rights of the representative of the government of that Member State in the Council. Respect for Union values forms the basis of a high level of confidence and mutual trust between Member States.

| (3) | The European Parliament, the Council and the Commission (the ‘three institutions’) recognise the importance of respect for Union values. Respect for Union values is necessary for the good functioning of the Union and the achievement of its objectives as set out in Article 3 TEU. The three institutions are committed to mutual sincere cooperation with the aim of promoting and ensuring respect for Union values. |
| --- | --- |

(3)

The European Parliament, the Council and the Commission (the ‘three institutions’) recognise the importance of respect for Union values. Respect for Union values is necessary for the good functioning of the Union and the achievement of its objectives as set out in Article 3 TEU. The three institutions are committed to mutual sincere cooperation with the aim of promoting and ensuring respect for Union values.

| (4) | The three institutions recognise the need for streamlining and strengthening the effectiveness of existing tools designed to foster compliance with Union values. A comprehensive and evidence-based interinstitutional mechanism, respecting the principles of subsidiarity and proportionality, should therefore be established in order to improve coordination between the three institutions and consolidate initiatives taken previously. In accordance with the Conclusions of the Justice and Home Affairs Council of 6 and 7 June 2013, such a mechanism should operate in ‘a transparent manner, on the basis of evidence objectively compiled, compared and analysed and on the basis of equality of treatment as between all Member States’. |
| --- | --- |

(4)

The three institutions recognise the need for streamlining and strengthening the effectiveness of existing tools designed to foster compliance with Union values. A comprehensive and evidence-based interinstitutional mechanism, respecting the principles of subsidiarity and proportionality, should therefore be established in order to improve coordination between the three institutions and consolidate initiatives taken previously. In accordance with the Conclusions of the Justice and Home Affairs Council of 6 and 7 June 2013, such a mechanism should operate in ‘a transparent manner, on the basis of evidence objectively compiled, compared and analysed and on the basis of equality of treatment as between all Member States’.

| (5) | The three institutions agree that an Annual Monitoring Cycle on Union Values is necessary to reinforce the promotion and respect for Union values. The Annual Monitoring Cycle should be comprehensive, objective, impartial, evidence-based and applied equally and fairly to all Member States. The primary objective of the Annual Monitoring Cycle should be to prevent violations of and non-compliance with Union values and to highlight positive developments and exchange best practices, while providing a shared basis for other actions by the three institutions. The three institutions also agree to use this Interinstitutional Agreement to integrate existing instruments and initiatives relating to the promotion of and respect for Union values, in particular the Commission’s annual Rule of Law Report, the Council’s annual Rule of Law Dialogue and the Commission’s Rule of Law Framework, in order to avoid duplication and strengthen overall effectiveness. |
| --- | --- |

(5)

The three institutions agree that an Annual Monitoring Cycle on Union Values is necessary to reinforce the promotion and respect for Union values. The Annual Monitoring Cycle should be comprehensive, objective, impartial, evidence-based and applied equally and fairly to all Member States. The primary objective of the Annual Monitoring Cycle should be to prevent violations of and non-compliance with Union values and to highlight positive developments and exchange best practices, while providing a shared basis for other actions by the three institutions. The three institutions also agree to use this Interinstitutional Agreement to integrate existing instruments and initiatives relating to the promotion of and respect for Union values, in particular the Commission’s annual Rule of Law Report, the Council’s annual Rule of Law Dialogue and the Commission’s Rule of Law Framework, in order to avoid duplication and strengthen overall effectiveness.

| (6) | The Annual Monitoring Cycle should consist of a preparatory stage, the publication of an annual monitoring report on compliance with Union values including country-specific recommendations, and a follow-up stage including the implementation of recommendations. The Annual Monitoring Cycle should be conducted in a spirit of transparency and openness with the involvement of citizens and civil society and should be protected from disinformation. |
| --- | --- |

(6)

The Annual Monitoring Cycle should consist of a preparatory stage, the publication of an annual monitoring report on compliance with Union values including country-specific recommendations, and a follow-up stage including the implementation of recommendations. The Annual Monitoring Cycle should be conducted in a spirit of transparency and openness with the involvement of citizens and civil society and should be protected from disinformation.

| (7) | The three institutions share the view that the Annual Monitoring Cycle should replace Commission Decisions 2006/928/EC (1) and 2006/929/EC (2) and fulfil, inter alia, the objectives of those Decisions. This Interinstitutional Agreement is without prejudice to the 2005 Act of Accession, in particular Articles 37 and 38 thereof. |
| --- | --- |

(7)

The three institutions share the view that the Annual Monitoring Cycle should replace Commission Decisions 2006/928/EC (1) and 2006/929/EC (2) and fulfil, inter alia, the objectives of those Decisions. This Interinstitutional Agreement is without prejudice to the 2005 Act of Accession, in particular Articles 37 and 38 thereof.

| (8) | The Annual Monitoring Cycle should also be complementary to and coherent with other instruments relating to the promotion and strengthening of Union values. In particular, the three institutions commit to using the findings of the annual monitoring reports in their assessment of whether there is a clear risk of a serious breach or existence of a serious and persistent breach by a Member State of Union values in the context of Article 7 TEU. Similarly, the Commission has committed to using the findings of the annual monitoring report as part of its assessment of whether an infringement procedure should be launched and whether there are generalised deficiencies as regards the rule of law in the Member States, in accordance with Article 5 of Regulation (EU) 2020/xxxx of the European Parliament and of the Council (3). The three institutions agree that the annual monitoring reports should more generally guide their actions with respect to Union values. |
| --- | --- |

(8)

The Annual Monitoring Cycle should also be complementary to and coherent with other instruments relating to the promotion and strengthening of Union values. In particular, the three institutions commit to using the findings of the annual monitoring reports in their assessment of whether there is a clear risk of a serious breach or existence of a serious and persistent breach by a Member State of Union values in the context of Article 7 TEU. Similarly, the Commission has committed to using the findings of the annual monitoring report as part of its assessment of whether an infringement procedure should be launched and whether there are generalised deficiencies as regards the rule of law in the Member States, in accordance with Article 5 of Regulation (EU) 2020/xxxx of the European Parliament and of the Council (3). The three institutions agree that the annual monitoring reports should more generally guide their actions with respect to Union values.

| (9) | In accordance with Article 295 of the Treaty on the Functioning of the European Union (TFEU), this Interinstitutional Agreement lays down arrangements only for the facilitation of cooperation between the European Parliament, the Council and the Commission and, in accordance with Article 13(2) TEU, those institutions are to act within the limits of the powers conferred on them by the Treaties and in conformity with the procedures, conditions and objectives set out therein. This Interinstitutional Agreement is without prejudice to the prerogatives of the Court of Justice of the European Union in the authentic interpretation of Union law, |
| --- | --- |

(9)

In accordance with Article 295 of the Treaty on the Functioning of the European Union (TFEU), this Interinstitutional Agreement lays down arrangements only for the facilitation of cooperation between the European Parliament, the Council and the Commission and, in accordance with Article 13(2) TEU, those institutions are to act within the limits of the powers conferred on them by the Treaties and in conformity with the procedures, conditions and objectives set out therein. This Interinstitutional Agreement is without prejudice to the prerogatives of the Court of Justice of the European Union in the authentic interpretation of Union law,

HAVE AGREED AS FOLLOWS

I.   OBJECTIVES

| 1. | The three institutions hereby agree to promote and strengthen respect for Union values, in accordance with Article 2 TEU, through coordination and cooperation. |
| --- | --- |

1.

II.   ANNUAL MONITORING CYCLE

| 2. | The three institutions agree to organise in sincere and mutual cooperation an Annual Monitoring Cycle on Union Values, covering issues and best practices in all areas of Union values. The Annual Monitoring Cycle shall consist of a preparatory stage, the publication of an annual monitoring report on Union values (‘Annual Report’) including recommendations, and a follow-up stage. |
| --- | --- |

2.

| 3. | The three institutions agree to establish a permanent Interinstitutional Working Group on Union Values (‘Working Group’). The Working Group shall facilitate coordination and cooperation among the three institutions in the Annual Monitoring Cycle. The Working Group shall periodically inform the public about its work. |
| --- | --- |

3.

| 4. | A panel of independent experts shall advise the Working Group and the three institutions. In cooperation with the European Union Agency for Fundamental Rights, the panel of independent experts shall identify the main positive and negative developments in each Member State in an impartial manner and contribute to the development of a methodology for the Annual Report. The three institutions may consult the panel at any stage of the Annual Monitoring Cycle. |
| --- | --- |

4.

Preparatory stage

| 5. | On an annual basis, the Commission shall organise a targeted stakeholder consultation to collect information for the Annual Report. The stakeholder consultation shall take place in the first quarter of each year. The consultation shall be transparent and based on a clear and rigorous methodology adopted by the Working Group. The methodology shall, in any event, encompass in an appropriate form benchmarks such as those listed in the Annexes to Commission Decisions 2006/928/EC and 2006/929/EC. |
| --- | --- |

5.

| 6. | The stakeholder consultation shall give an opportunity to civil society organisations, national human rights institutions and equality bodies, professional associations and networks, bodies of the Council of Europe and other international organisations, Union institutions, bodies, offices and agencies and the Member States, including relevant national authorities, to contribute to the Annual Report. The Commission shall incorporate the information provided by stakeholders in the Annual Report. The Commission shall publish contributions to the consultation on its website prior to the publication of the Annual Report. |
| --- | --- |

6.

| 7. | The Commission shall draw on all information at its disposal when preparing the Annual Report on the basis of the methodology agreed by the Working Group. Of particular relevance in that regard are reports and data from the European Union Agency for Fundamental Rights and other Union bodies, offices and agencies, the Council of Europe, including the Venice Commission and the Group of States against Corruption, and other international organisations that produce relevant studies and assessments. Where the Annual Report as drafted by the Commission diverges from the findings of the panel of independent experts, the European Parliament and the Council may request the Commission to explain its reasons to the Working Group. |
| --- | --- |

7.

| 8. | Designated representatives of any of the three institutions, after coordinating within the Working Group, shall have the possibility to conduct fact-finding visits to the Member States for the purpose of obtaining additional information and clarification about the state of Union values in the Member States concerned. The Commission shall incorporate the findings in the Annual Report. |
| --- | --- |

8.

| 9. | The Commission shall regularly inform the Working Group of the progress made throughout the preparatory stage. |
| --- | --- |

9.

Annual Report and recommendations

| 10. | The Commission shall draft the Annual Report based on information gathered during the preparatory stage. The Annual Report should cover both positive and negative developments relating to Union values in the Member States. The Annual Report shall be impartial, based on objectively compiled evidence and respect equality of treatment between all Member States. The depth of reporting should reflect the gravity of the situation in question. The Annual Report shall include a section on infringement procedures concerning Union values. |
| --- | --- |

10.

| 11. | The Annual Report shall contain recommendations specific to each Member State with the aim of strengthening the protection and promotion of Union values. The recommendations shall specify concrete targets and timeframes for implementation and take due account of any concerns expressed in reasoned proposals adopted under Article 7(1) TEU. The recommendations shall take account of the diversity of Member States’ political and legal systems. Implementation of the recommendations shall be assessed in subsequent Annual Reports or urgent reports, as appropriate. |
| --- | --- |

11.

| 12. | The Annual Report including its recommendations shall be published in September each year. The publication date shall be coordinated among the three institutions in the Working Group. Prior to its publication, the Commission shall present the draft Annual Report to the Working Group. |
| --- | --- |

12.

Follow-up

| 13. | No later than two months from its publication date, the European Parliament and the Council shall discuss the content of the Annual Report. The discussions shall be made public. The Parliament and the Council shall adopt positions on the Annual Report by means of resolutions and conclusions. As part of the follow-up, the European Parliament and the Council shall assess and reflect on the extent to which previous recommendations have been implemented by the Member States, including implementation of relevant rulings of the Court of Justice of the European Union. The three institutions shall make use of their respective powers under the Treaties with a view to contributing to an effective follow-up. The three institutions shall endeavour to promote debate on the Annual Report in the Member States, in particular in national parliaments, in a timely manner. |
| --- | --- |

13.

| 14. | On the basis of the findings of the Annual Report, the Commission shall, either on its own initiative or upon request by the European Parliament or the Council, enter into a dialogue with one or several Member States, including relevant authorities, with the aim of facilitating implementation of the recommendations. The Commission shall regularly report on the progress of the dialogue to the European Parliament and to the Council. The Commission may, at any time, including at the request of the Member State concerned, provide technical assistance to the Member States through different activities. The European Parliament shall organise, in cooperation with national parliaments, an interparliamentary debate on the findings of the Annual Report. |
| --- | --- |

14.

| 15. | The three institutions should consider the findings of the Annual Report in the determination of funding priorities. In particular, the Commission should include targeted support for national actors contributing to the protection and promotion of Union values, such as civil society and media organisations, when establishing relevant annual work programmes for the disbursement of Union funds under both shared and direct management. |
| --- | --- |

15.

| 16. | Without prejudice to the powers of the Commission under Article 258 TFEU and Article 5 of Regulation (EU) 2020/xxxx and the right of one third of Member States, the European Parliament and the Commission to submit to the Council a reasoned proposal in accordance with Article 7(1) TEU, the three institutions agree that the Annual Reports should guide their actions concerning Union values. |
| --- | --- |

16.

| 17. | The European Parliament and the Council may request the Commission to develop additional guidelines and indicators to address relevant horizontal issues that emerge from the Annual Monitoring Cycle. |
| --- | --- |

17.

Urgent report

| 18. | Where the situation in one or several Member States portends imminent and serious damage to Union values, the Commission may, either on its own initiative or upon request by the European Parliament or the Council draft an urgent report on the situation. The Commission shall prepare the report in consultation with the Working Group. The Commission shall draft the urgent report without delay and make it public no later than two months following a request by the European Parliament or the Council. The findings of the urgent report shall be incorporated in the next Annual Report. The urgent report may specify recommendations aimed at addressing the imminent threat to Union values. |
| --- | --- |

18.

III.   COMPLEMENTARITY WITH OTHER INSTRUMENTS

| 19. | The three institutions acknowledge the complementary nature of the Annual Monitoring Cycle and other mechanisms for the protection and promotion of Union values, in particular the procedure laid down in Article 7 TEU, infringement procedures and Regulation (EU) 2020/xxxx. The three institutions commit to take account of the objectives of this Interinstitutional Agreement in Union policies. |
| --- | --- |

19.

| 20. | Where the Annual Report identifies systemic deficiencies with respect to one or several Union values, the three institutions commit to take appropriate action, without delay, within their respective powers as conferred on them by the Treaties. The three institutions agree that the findings of the Annual Report shall serve as a basis for deciding whether to activate the procedure provided for in Article 7 TEU and launching infringement procedures concerning the protection of Union values. The three institutions shall consider, inter alia, whether Union policies requiring a high level of mutual trust can be sustained in light of systemic deficiencies identified in the Annual Report. |
| --- | --- |

20.

| 21. | The Annual Monitoring Cycle established by this Agreement shall replace the mechanism for cooperation and verification of progress in Romania to address specific benchmarks in the areas of judicial reform and the fight against corruption established by Commission Decision 2006/928/EC and the mechanism for cooperation and verification of progress in Bulgaria to address specific benchmarks in the areas of judicial reform and the fight against corruption and organised crime established by Commission Decision 2006/929/EC and shall fulfil, inter alia, the objectives pursued by those Decisions. The Commission therefore undertakes to repeal those Decisions at an appropriate time. |
| --- | --- |

21.

Common arrangements for Article 7 TEU

| 22. | The three institutions agree to use the findings of the Annual Report in their assessment of whether there is a clear risk of a serious breach or existence of a serious and persistent breach by a Member State of Union values under Article 7 TEU. |
| --- | --- |

22.

| 23. | In order to strengthen the transparency and efficiency of the procedure laid down in Article 7 TEU, the three institutions agree to ensure that the institution initiating a proposal under Article 7(1) TEU shall be able to present the proposal in the Council and be fully informed and involved at all stages during the procedure. The three institutions agree to consult each other regularly in the Working Group regarding existing and potential procedures launched under Article 7 TEU. |
| --- | --- |

23.

| 24. | The three institutions agree to work out modalities aimed at enhancing the effectiveness of the procedure laid down in Article 7 TEU. Such new modalities may include a regularised schedule of hearings and state-of-play sessions, recommendations aimed at redressing concerns expressed in the reasoned proposal and timelines for implementation. |
| --- | --- |

24.

Common arrangements for budgetary conditionality

| 25. | The three institutions agree to use the findings of the Annual Report in their assessment of whether there are generalised deficiencies as regards the rule of law in the Member States, in accordance with Article 5 of Regulation (EU) 2020/xxxx, as well as in any other relevant assessment for the purposes of existing and future budgetary tools. Where the Annual Report identifies that a generalised deficiency as regards the rule of law in a Member State affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union, the Commission shall send a written notification to that Member State in accordance with Article 5(1) of Regulation (EU) 2020/xxxx. |
| --- | --- |

25.

IV.   FINAL PROVISIONS

| 26. | The three institutions shall take the necessary steps to ensure that they have the means and resources required for the proper implementation of this Interinstitutional Agreement. |
| --- | --- |

26.

| 27. | The three institutions shall monitor the implementation of this Interinstitutional Agreement jointly and continuously, at both the political level through regular discussions and the technical level in the Working Group. |
| --- | --- |

27.

| 28. | This Agreement shall enter into force on the day of its signature. |
| --- | --- |

28.

---

(1)  Commission Decision of 13 December 2006 establishing a mechanism for cooperation and verification of progress in Romania to address specific benchmarks in the areas of judicial reform and the fight against corruption (OJ L 354, 14.12.2006, p. 56).

(2)  Commission Decision of 13 December 2006 establishing a mechanism for cooperation and verification of progress in Bulgaria to address specific benchmarks in the areas of judicial reform and the fight against corruption and organised crime (OJ L 354, 14.12.2006, p. 58).

(3)  [instead of xxxx insert number of 2018/136(COD) in the text (also in points 16, 19 and 25) and the footnote and correct OJ reference in footnote] Regulation (EU) .../... of the European Parliament and of the Council on the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States OJ C ..., ..., p. ....

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/14 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/14

---

P9_TA(2020)0252

Implementation of the common commercial policy — annual report 2018

European Parliament resolution of 7 October 2020 on the implementation of the common commercial policy — annual report 2018 (2019/2197(INI))

(2021/C 395/02)

The European Parliament,

| — | having regard to the Commission’s report of 14 October 2019 on implementation of free trade agreements, 1 January 2018 — 31 December 2018 (COM(2019)0455), |
| --- | --- |

—

having regard to the Commission’s report of 14 October 2019 on implementation of free trade agreements, 1 January 2018 — 31 December 2018 (COM(2019)0455),

| — | having regard to the Commission Staff Working Document (SWD(2019)0370) of 14 October 2019, accompanying the Commission’s report on the implementation of free trade agreements, 1 January 2018 — 31 December 2018 (COM(2019)0455), |
| --- | --- |

—

having regard to the Commission Staff Working Document (SWD(2019)0370) of 14 October 2019, accompanying the Commission’s report on the implementation of free trade agreements, 1 January 2018 — 31 December 2018 (COM(2019)0455),

| — | having regard to the Commission document of 14 October 2015 entitled ‘Trade for all: Towards a more responsible trade and investment policy’ (COM(2015)0497), |
| --- | --- |

—

having regard to the Commission document of 14 October 2015 entitled ‘Trade for all: Towards a more responsible trade and investment policy’ (COM(2015)0497),

| — | having regard to the Commission communication of 29 January 2020 entitled ‘Commission Work Programme 2020: A Union that strives for more’ (COM(2020)0037), |
| --- | --- |

—

having regard to the Commission communication of 29 January 2020 entitled ‘Commission Work Programme 2020: A Union that strives for more’ (COM(2020)0037),

| — | having regard to the Political Guidelines for the European Commission 2019-2024 of 16 July 2019, |
| --- | --- |

—

having regard to the Political Guidelines for the European Commission 2019-2024 of 16 July 2019,

| — | having regard to its resolution of 30 May 2018 on the annual report on the implementation of the Common Commercial Policy (1), |
| --- | --- |

—

having regard to its resolution of 30 May 2018 on the annual report on the implementation of the Common Commercial Policy (1),

| — | having regard to the Commission communication of 11 December 2019 on the European Green Deal (COM(2019)0640), |
| --- | --- |

—

having regard to the Commission communication of 11 December 2019 on the European Green Deal (COM(2019)0640),

| — | having regard to the Joint Communication of 8 April 2020 on the global EU response to COVID-19 (JOIN(2020)0011), |
| --- | --- |

—

having regard to the Joint Communication of 8 April 2020 on the global EU response to COVID-19 (JOIN(2020)0011),

| — | having regard to its resolution of 29 November 2018 on WTO: the way forward (2), |
| --- | --- |

—

having regard to its resolution of 29 November 2018 on WTO: the way forward (2),

| — | having regard to the Joint Communication of 9 March 2020 entitled ‘Towards a comprehensive strategy with Africa’ (JOIN(2020)0004), |
| --- | --- |

—

having regard to the Joint Communication of 9 March 2020 entitled ‘Towards a comprehensive strategy with Africa’ (JOIN(2020)0004),

| — | having regard to the joint statement of 25 January 2019 by the World Trade Organisation (WTO) on electronic commerce, |
| --- | --- |

—

having regard to the joint statement of 25 January 2019 by the World Trade Organisation (WTO) on electronic commerce,

| — | having regard to the G20 Trade Ministers’ statements of 30 March and 14 May 2020, |
| --- | --- |

—

having regard to the G20 Trade Ministers’ statements of 30 March and 14 May 2020,

| — | having regard to the joint US-EU statement of 25 July 2018, |
| --- | --- |

—

having regard to the joint US-EU statement of 25 July 2018,

| — | having regard to the joint statement of 14 January 2020 of the Trilateral Meeting of the Trade Ministers of Japan, the United States and the European Union, |
| --- | --- |

—

having regard to the joint statement of 14 January 2020 of the Trilateral Meeting of the Trade Ministers of Japan, the United States and the European Union,

| — | having regard to the Commission Staff Working Document of 20 December 2019 on the protection and enforcement of intellectual property rights in third countries (SWD(2019)0452), |
| --- | --- |

—

having regard to the Commission Staff Working Document of 20 December 2019 on the protection and enforcement of intellectual property rights in third countries (SWD(2019)0452),

| — | having regard to the Commission’s annual report of 27 March 2019 on trade defence instruments (COM(2019)0158), |
| --- | --- |

—

having regard to the Commission’s annual report of 27 March 2019 on trade defence instruments (COM(2019)0158),

| — | having regard to the Special Eurobarometer published in November 2019 entitled ‘Europeans’ attitude on Trade and EU trade policy’, |
| --- | --- |

—

having regard to the Special Eurobarometer published in November 2019 entitled ‘Europeans’ attitude on Trade and EU trade policy’,

| — | having regard to the joint communication on ‘EU-China — A strategic outlook’ adopted by the Commission and the European External Action Service on 12 March 2019 (JOIN(2019)0005), |
| --- | --- |

—

having regard to the joint communication on ‘EU-China — A strategic outlook’ adopted by the Commission and the European External Action Service on 12 March 2019 (JOIN(2019)0005),

| — | having regard to the joint communication on ‘Connecting Europe and Asia — building blocks for an EU strategy’ adopted by the Commission and the European External Action Service on 19 September 2018 (JOIN(2018)0031), |
| --- | --- |

—

having regard to the joint communication on ‘Connecting Europe and Asia — building blocks for an EU strategy’ adopted by the Commission and the European External Action Service on 19 September 2018 (JOIN(2018)0031),

| — | having regard to the Commission’s report of 26 June 2019 on trade and investment barriers, |
| --- | --- |

—

having regard to the Commission’s report of 26 June 2019 on trade and investment barriers,

| — | having regard to its resolution of 18 May 2017 on the implementation of the free trade Agreement between the EU and the Republic of Korea (3), |
| --- | --- |

—

having regard to its resolution of 18 May 2017 on the implementation of the free trade Agreement between the EU and the Republic of Korea (3),

| — | having regard to its resolution of 5 July 2016 on a new forward-looking and innovative future strategy for trade and investment (4), |
| --- | --- |

—

having regard to its resolution of 5 July 2016 on a new forward-looking and innovative future strategy for trade and investment (4),

| — | having regard to the resolution adopted by the UN General Assembly on 25 September 2015 entitled ‘Transforming our world: the 2030 Agenda for Sustainable Development’, |
| --- | --- |

—

having regard to the resolution adopted by the UN General Assembly on 25 September 2015 entitled ‘Transforming our world: the 2030 Agenda for Sustainable Development’,

| — | having regard to its resolution of 5 July 2016 on social and economic standards, human rights and corporate responsibility (5), |
| --- | --- |

—

having regard to its resolution of 5 July 2016 on social and economic standards, human rights and corporate responsibility (5),

| — | having regard to Articles 2 and 21 of the Treaty on European Union (TEU) and to Chapter V, Title II of the Treaty on the Functioning of the European Union (TFEU), as well as to Article 218 TFEU, |
| --- | --- |

—

having regard to Articles 2 and 21 of the Treaty on European Union (TEU) and to Chapter V, Title II of the Treaty on the Functioning of the European Union (TFEU), as well as to Article 218 TFEU,

| — | having regard to its resolution of 9 June 2015 on the EU strategy for equality between women and men post 2015 (6), |
| --- | --- |

—

having regard to its resolution of 9 June 2015 on the EU strategy for equality between women and men post 2015 (6),

| — | having regard to its resolution of 13 March 2018 on gender equality in trade agreements (7), |
| --- | --- |

—

having regard to its resolution of 13 March 2018 on gender equality in trade agreements (7),

| — | having regard to the Commission’s gender equality strategy of March 2020, |
| --- | --- |

—

having regard to the Commission’s gender equality strategy of March 2020,

| — | having regard to the Commission’s report on the Generalised Scheme of Preferences covering the period 2018-2019 (8), |
| --- | --- |

—

having regard to the Commission’s report on the Generalised Scheme of Preferences covering the period 2018-2019 (8),

| — | having regard to the Commission communication of 22 November 2018 entitled ‘The Single Market in a changing world: A unique asset in need of renewed political commitment’ (COM(2018)0772), |
| --- | --- |

—

having regard to the Commission communication of 22 November 2018 entitled ‘The Single Market in a changing world: A unique asset in need of renewed political commitment’ (COM(2018)0772),

| — | having regard to Rule 54 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 54 of its Rules of Procedure,

| — | having regard to the opinion of the Committee on Development, |
| --- | --- |

—

having regard to the opinion of the Committee on Development,

| — | having regard to the report of the Committee on International Trade (A9-0160/2020), |
| --- | --- |

—

having regard to the report of the Committee on International Trade (A9-0160/2020),

| A. | whereas Parliament’s resolution of 30 May 2018 on the implementation of the Common Commercial Policy obtained wide support for its approach favouring a rules-based, value-based and predictable trade system; whereas new developments since 2018, notably the implementation of the EU-Canada trade agreement and most recently the effects of the COVID-19 pandemic on trade, make it necessary to undertake a thorough update of the previous report; |
| --- | --- |

A.

whereas Parliament’s resolution of 30 May 2018 on the implementation of the Common Commercial Policy obtained wide support for its approach favouring a rules-based, value-based and predictable trade system; whereas new developments since 2018, notably the implementation of the EU-Canada trade agreement and most recently the effects of the COVID-19 pandemic on trade, make it necessary to undertake a thorough update of the previous report;

| B. | whereas the EU is the world’s leading commercial power and largest trading bloc, acting as a major driver of economic prosperity; whereas it is also the largest trader of manufactured goods and services; whereas the latest indicators reveal that in 2019 EU exports of goods rose to EUR 2 132,3 billion, amounting to an increase of 3,5 % on the previous year; whereas despite the current global challenges the EU’s main trading partners are the US and China; whereas between 2007 and 2017 global GDP increased by more than 70 %; whereas if one compares the EU’s increase of 17 % to the figures for countries like the US (60 %), India (80 %) and China (315 %), it is clear that the EU is falling behind in global competitiveness; |
| --- | --- |

B.

whereas the EU is the world’s leading commercial power and largest trading bloc, acting as a major driver of economic prosperity; whereas it is also the largest trader of manufactured goods and services; whereas the latest indicators reveal that in 2019 EU exports of goods rose to EUR 2 132,3 billion, amounting to an increase of 3,5 % on the previous year; whereas despite the current global challenges the EU’s main trading partners are the US and China; whereas between 2007 and 2017 global GDP increased by more than 70 %; whereas if one compares the EU’s increase of 17 % to the figures for countries like the US (60 %), India (80 %) and China (315 %), it is clear that the EU is falling behind in global competitiveness;

| C. | whereas on 14 October 2019 the Commission published its third report on the implementation of EU free trade agreements (FTAs), which shows that in 2018 33 % of EU exports and 29 % of EU imports were traded with FTA partners; whereas in 2018 the EU had a trade surplus of EUR 84,6 billion with FTA partners compared to its overall trade deficit of EUR 24,6 billion; whereas according to a recent Commission report, exports to the EU from developing countries on the basis of special trade preferences (GSP) grew by 16,2 % between 2016 and 2018, with an increase in value from EUR 158 billion in 2016 to EUR 183,6 billion in 2018; whereas world trade is expected to fall by between 13 % and 32 % in 2020 due to the effects of COVID-19; whereas extra-EU27 exports of goods and services are expected to decline by 9,2 % and extra-EU27 imports by 8,8 %, while the IMF expects EU GDP to decrease by 7,5 %; |
| --- | --- |

C.

whereas on 14 October 2019 the Commission published its third report on the implementation of EU free trade agreements (FTAs), which shows that in 2018 33 % of EU exports and 29 % of EU imports were traded with FTA partners; whereas in 2018 the EU had a trade surplus of EUR 84,6 billion with FTA partners compared to its overall trade deficit of EUR 24,6 billion; whereas according to a recent Commission report, exports to the EU from developing countries on the basis of special trade preferences (GSP) grew by 16,2 % between 2016 and 2018, with an increase in value from EUR 158 billion in 2016 to EUR 183,6 billion in 2018; whereas world trade is expected to fall by between 13 % and 32 % in 2020 due to the effects of COVID-19; whereas extra-EU27 exports of goods and services are expected to decline by 9,2 % and extra-EU27 imports by 8,8 %, while the IMF expects EU GDP to decrease by 7,5 %;

| D. | whereas the common commercial policy is an exclusive competence of the Union implemented by the Commission, the Council and Parliament, which requires the Union to speak with one voice in trade matters with the Commission as its negotiator; whereas in 2015 the Commission adopted a communication entitled ‘Trade for All: Towards a more responsible trade and investment policy’; whereas the Commission has launched a trade policy review aiming at improving the trade toolbox following the COVID-19 crisis; |
| --- | --- |

D.

whereas the common commercial policy is an exclusive competence of the Union implemented by the Commission, the Council and Parliament, which requires the Union to speak with one voice in trade matters with the Commission as its negotiator; whereas in 2015 the Commission adopted a communication entitled ‘Trade for All: Towards a more responsible trade and investment policy’; whereas the Commission has launched a trade policy review aiming at improving the trade toolbox following the COVID-19 crisis;

| E. | whereas Article 207 of the Treaty on the Functioning of the EU and Article 21 of the Treaty on European Union stipulate that the common commercial policy shall be conducted in the context of the principles and objectives of the Union's external action, including the promotion of human rights, democracy, the rule of law and sustainable development; whereas in December 2019 the Commission adopted the European Green Deal, which provides that all EU actions and policies will have to contribute to its objectives; |
| --- | --- |

E.

whereas Article 207 of the Treaty on the Functioning of the EU and Article 21 of the Treaty on European Union stipulate that the common commercial policy shall be conducted in the context of the principles and objectives of the Union's external action, including the promotion of human rights, democracy, the rule of law and sustainable development; whereas in December 2019 the Commission adopted the European Green Deal, which provides that all EU actions and policies will have to contribute to its objectives;

| F. | whereas EU trade and investment policy also provides investors with market access and investment protection through legal certainty and a stable, predictable and properly regulated environment in which to conduct their economic activities; |
| --- | --- |

F.

whereas EU trade and investment policy also provides investors with market access and investment protection through legal certainty and a stable, predictable and properly regulated environment in which to conduct their economic activities;

| G. | whereas recent Eurobarometer figures show that around 60 % of EU citizens believe that they benefit from international trade; whereas part of public opinion is highly informed about trade policy and trade agreements; whereas half of those surveyed suggest that the priorities of EU trade policy should be to create jobs in the EU and to defend environmental and health standards; whereas the Commission and the Member States must continue to develop a proper communication strategy on trade policy and trade agreements, which aims to tackle fake news on trade and to transmit as much information as possible, while targeting specific stakeholders and raising economic operators’ awareness about trade agreements; |
| --- | --- |

G.

whereas recent Eurobarometer figures show that around 60 % of EU citizens believe that they benefit from international trade; whereas part of public opinion is highly informed about trade policy and trade agreements; whereas half of those surveyed suggest that the priorities of EU trade policy should be to create jobs in the EU and to defend environmental and health standards; whereas the Commission and the Member States must continue to develop a proper communication strategy on trade policy and trade agreements, which aims to tackle fake news on trade and to transmit as much information as possible, while targeting specific stakeholders and raising economic operators’ awareness about trade agreements;

| H. | whereas the common commercial policy, composed of trade agreements and legislative measures, should serve the objective of creating a stable, predictable and fair trading environment in which EU businesses can thrive and the interests of EU citizens are asserted, and should ensure that the EU continues to safeguard its existing social and regulatory model, while using trade policy to promote its values around the world; whereas the EU should step up its efforts to promote fair competition, ensuring a level playing field and addressing contemporary trade issues; whereas fulfilling these objectives requires a sound orientation of Union trade policy and full and efficient implementation and monitoring thereof, in a fairer and more transparent manner; whereas EU trade agreements should represent opportunities for growth through market access and the lifting of trade barriers; whereas it is of fundamental importance that negotiations are conducted in a spirit of mutual benefit, in order to tackle unfair trade practices and secure compliance with EU rules and standards; |
| --- | --- |

H.

whereas the common commercial policy, composed of trade agreements and legislative measures, should serve the objective of creating a stable, predictable and fair trading environment in which EU businesses can thrive and the interests of EU citizens are asserted, and should ensure that the EU continues to safeguard its existing social and regulatory model, while using trade policy to promote its values around the world; whereas the EU should step up its efforts to promote fair competition, ensuring a level playing field and addressing contemporary trade issues; whereas fulfilling these objectives requires a sound orientation of Union trade policy and full and efficient implementation and monitoring thereof, in a fairer and more transparent manner; whereas EU trade agreements should represent opportunities for growth through market access and the lifting of trade barriers; whereas it is of fundamental importance that negotiations are conducted in a spirit of mutual benefit, in order to tackle unfair trade practices and secure compliance with EU rules and standards;

| I. | whereas on 30 April 2020 the EU, together with 18 WTO members, formally notified the ‘Multi-party interim appeal arbitration arrangement’ (MPIA) to the WTO; whereas this notification marks the start of the application of the MPIA to disputes arising between the participating WTO members in view of the stalemate of the Appellate Body (AB); |
| --- | --- |

I.

whereas on 30 April 2020 the EU, together with 18 WTO members, formally notified the ‘Multi-party interim appeal arbitration arrangement’ (MPIA) to the WTO; whereas this notification marks the start of the application of the MPIA to disputes arising between the participating WTO members in view of the stalemate of the Appellate Body (AB);

| J. | whereas the COVID-19 outbreak has caused a multifaceted crisis with long-term consequences and has exposed the lack of resilience of the global value chains for certain key products, including medical equipment and devices; whereas the crisis has shown the need for more robust and resilient production chains, as well as the need to invest in strategic areas to increase the resilience of EU supply chains; whereas science-based reports point to growing risks of worldwide outbreaks of pandemics and of climate change-related phenomena impacting international relations; whereas G20 trade ministers have committed to mitigate the impacts of COVID-19 on international trade and investment by continuing to work together to deliver a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment, and by keeping our markets open to ensure the continued flow across borders of vital medical supplies and equipment, critical agricultural products, and other essential goods and services; |
| --- | --- |

J.

whereas the COVID-19 outbreak has caused a multifaceted crisis with long-term consequences and has exposed the lack of resilience of the global value chains for certain key products, including medical equipment and devices; whereas the crisis has shown the need for more robust and resilient production chains, as well as the need to invest in strategic areas to increase the resilience of EU supply chains; whereas science-based reports point to growing risks of worldwide outbreaks of pandemics and of climate change-related phenomena impacting international relations; whereas G20 trade ministers have committed to mitigate the impacts of COVID-19 on international trade and investment by continuing to work together to deliver a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment, and by keeping our markets open to ensure the continued flow across borders of vital medical supplies and equipment, critical agricultural products, and other essential goods and services;

| K. | whereas on 14 March 2020 the Commission adopted Implementing Regulation (EU) 2020/402 (9) under an urgency procedure to make the export of personal protective equipment (PPE) subject to export authorisation in line with Regulation (EU) 2015/479, as a temporary measure that serves to help the EU face the surge in demand and prepare its operational capacity to help out third countries; |
| --- | --- |

K.

whereas on 14 March 2020 the Commission adopted Implementing Regulation (EU) 2020/402 (9) under an urgency procedure to make the export of personal protective equipment (PPE) subject to export authorisation in line with Regulation (EU) 2015/479, as a temporary measure that serves to help the EU face the surge in demand and prepare its operational capacity to help out third countries;

| L. | whereas the EU has negotiated comprehensive agreements governing trade relations with nearly all of Latin America and the Caribbean, with the exception of Bolivia, Cuba and Venezuela; |
| --- | --- |

L.

whereas the EU has negotiated comprehensive agreements governing trade relations with nearly all of Latin America and the Caribbean, with the exception of Bolivia, Cuba and Venezuela;

| M. | whereas Parliament has stressed the need for a gender perspective in EU international trade policy in 2015 (10), and the need for gender equality in trade agreements in 2018 (11); whereas 36 million jobs in the EU, of which 13,7 million are occupied by women, depend on exports to outside the EU; whereas women are largely under-represented in extra-EU trade in the agricultural and manufacturing sectors; whereas only one in five exporting companies in the EU is led (i.e. owned and/or managed) by a woman and women account for 30 % or less of the total workforce in the export sector; |
| --- | --- |

M.

whereas Parliament has stressed the need for a gender perspective in EU international trade policy in 2015 (10), and the need for gender equality in trade agreements in 2018 (11); whereas 36 million jobs in the EU, of which 13,7 million are occupied by women, depend on exports to outside the EU; whereas women are largely under-represented in extra-EU trade in the agricultural and manufacturing sectors; whereas only one in five exporting companies in the EU is led (i.e. owned and/or managed) by a woman and women account for 30 % or less of the total workforce in the export sector;

| N. | whereas many countries impose tariffs on medical devices including patient monitors, diagnostic equipment and common medicines like antibiotics, painkillers, or insulin, and virtually all countries charge import tariffs on soap; whereas tariffs have been exacerbated by the decision of the US to impose additional duties on USD 370 billion worth of imports from China which include some aspects of PPE; |
| --- | --- |

N.

whereas many countries impose tariffs on medical devices including patient monitors, diagnostic equipment and common medicines like antibiotics, painkillers, or insulin, and virtually all countries charge import tariffs on soap; whereas tariffs have been exacerbated by the decision of the US to impose additional duties on USD 370 billion worth of imports from China which include some aspects of PPE;

| O. | whereas science-based reports point to growing risks of worldwide outbreaks of pandemics and of climate change-related phenomena impacting international relations, and conclude that our economic models have to be deeply reformed, notably in accordance with the Paris climate agreement; |
| --- | --- |

O.

whereas science-based reports point to growing risks of worldwide outbreaks of pandemics and of climate change-related phenomena impacting international relations, and conclude that our economic models have to be deeply reformed, notably in accordance with the Paris climate agreement;

Global context

| 1. | Notes that significant aspects of the global context have been shifting and have proven to be unpredictable, with tensions occurring in the last two years; reiterates its support for an open, free, rules-based, predictable and fair multilateral trading system that needs to be safeguarded and promoted; points out that despite the difficult global economic climate, the EU recorded a surplus of EUR 84,6 billion (in 2018) in trade in goods with its trade agreement partners, compared to its overall trade deficit with the rest of the world of about EUR 24,6 billion; recalls that over 36 million jobs are being supported by exports to outside the EU; |
| --- | --- |

1.

| 2. | Notes that since the Commission adopted its latest trade strategy in 2015, entitled ‘Trade for all’, the EU has concluded and started applying a number of new trade agreements, notably the EU-Canada Comprehensive Economic and Trade Agreement (CETA), the EU-Japan Economic Partnership Agreement (EPA) and the EU-Singapore and EU-Vietnam Free Trade Agreements (FTAs), |
| --- | --- |

2.

| 3. | Insists that the EU trade strategy must continue to promote the Union’s interests and values when contending with new challenges worldwide, increase the competitiveness of EU industry, and generate economic growth in line with the European Green Deal objectives; considers, therefore, that an ambitious multilateral, plurilateral and bilateral agenda, the conclusion of trade agreements that are fair and fruitful for both parties, ensuring a strict reciprocity and respecting Europe’s high norms and standards in sensitive sectors, human rights and their effective protection, the elimination of unjustified trade barriers, and the use of trade defence tools where necessary constitute the best way to make the EU more competitive in a globalised world; |
| --- | --- |

3.

| 4. | Stresses that our relationship with the two other trade superpowers, China and the US, which represent approximately 30 % of our trade exchanges, are key when it comes to driving EU trade policy; insists, however, that the EU should reinforce its relationships with other parts of the world, diversify and improve its trade relations with all partners, including developing countries and LDCs, and work towards a multipolar world order; underlines the need to avoid overdependence of the EU economy on supply chains of a few major trading partners; |
| --- | --- |

4.

| 5. | Stresses the need to enhance exchange of information between the Member States; calls for further exchange of good practices, between Member States and between Member States and the Commission, with a view to achieving synergies and improving outcomes; in this regard, also stresses the need to improve assessment strategies on agreements, and considers that the Commission should ensure a better impact assessment for each trade agreement, to be carried out in due time and conducted by independent bodies; |
| --- | --- |

5.

| 6. | Welcomes the increase of transparency in trade policy; welcomes the decision of the Council to publish the mandate on the negotiations of Economic Partnership Agreements with the ACP regions on 19 December 2019; expresses satisfaction with the recent efforts of the new Commission to inform Parliament more regularly about the state of play of ongoing negotiations, thus making the work of the Commission more transparent, such as making available detailed reports on the specialised committees set up under CETA and the agreement with South Korea; |
| --- | --- |

6.

| 7. | Stresses that the Commission and the Member States must work on a better communication strategy with regard to the benefits of EU trade policy and awareness-raising in order to effectively engage with society and stakeholders; recalls that roadmaps provide the opportunity for the Commission to communicate and explain the reasons behind a particular initiative and its objectives, as well as to engage with society and stakeholders and receive feedback; considers that the Commission should ensure the full transparency of roadmaps and other consultation activities in order to maximise their impact and guarantee the involvement of stakeholders; |
| --- | --- |

7.

| 8. | Regrets the serious impact of the COVID-19 virus and the consequent lockdown of economies as regards global trade, with both imports to and exports from the EU being reduced and value chains interrupted and halted as a result; highlights that the EU must learn from the current pandemic in order to reduce its vulnerability, especially for certain strategic sectors; believes that the EU and its Member States need to act swiftly to use trade policy as a tool to enable the recovery of the global economy and mitigate recession; is of the firm belief that the EU must improve its open strategic autonomy while ensuring rules-based trade in time of crisis, and must avoid measures that restrict and/or distort trade, and similarly challenge such measures from third countries, all of which should be specifically addressed in the Trade Policy Review; |
| --- | --- |

8.

| 9. | Calls for progressing on the current negotiations and in particular revamping negotiations for a swift conclusion of a plurilateral agreement on free circulation of medical equipment; strongly encourages all countries to join the WTO Pharmaceutical Tariff Elimination Agreement (Zero for Zero) and believes its scope should be extended to all pharmaceutical and medicinal products to ensure worldwide cross-border trade; calls on WTO members to make this topic a priority on the agenda of the next WTO Ministerial Meeting, considering trade agreements as a way to help companies diversify their sources; |
| --- | --- |

9.

| 10. | Stresses that the EU must ensure open trade flows and sustained global value chains, and must therefore refrain from export restrictions such as on PPE, for which the EU is depending on trade partners in third countries; urges those Member States which restrict the flow of critical goods on the internal market to immediately lift their export restrictions, and calls on the Commission to apply zero tolerance to such breaches of the rules of the single market; takes the view that the EU must carefully assess and identify critical sectors and societal vulnerabilities where the Union needs to secure its supply of products, and must seek effective and proportionate remedies in trade policy; |
| --- | --- |

10.

| 11. | Laments the economic losses due to the disruption of international trade and global value chains as a result of the COVID-19 pandemic, which may have a particularly severe impact on developing countries; calls on the Commission to ensure that its trade provisions with developing countries support access to medicines and medical equipment; |
| --- | --- |

11.

| 12. | Highlights the need to help rural and coastal producers to adapt to the crisis market conditions arising from the COVID-19 outbreak and devise swift coronavirus adaptation and resilience strategies so as to maintain subsistence income levels, while ensuring the sustainable management of agricultural, forest, marine and biodiversity-rich ecosystems; |
| --- | --- |

12.

WTO and plurilateral cooperation

| 13. | Stresses that this is a critical moment for promoting open, fair, balanced, sustainable, and values-based multilateralism and fostering the global trading system; deeply regrets the impasse of the WTO, which requires active steps and commitments from all WTO members; reiterates its commitment to defend the rules-based multilateral trading system; |
| --- | --- |

13.

| 14. | Underlines the primary political and economic importance of the multilateral system and calls on the international trading partners to work towards the achievement of a well-functioning dispute settlement system at the WTO and to carry forward an ambitious reform led by the EU; urges the Commission, in this respect, to negotiate new rules to fight trade-distorting phenomena relating to non-market policies and practices, state-owned enterprises (SOEs) and industrial subsidies, that lead to overcapacity, forced technology transfer policies and practices, and intellectual property theft; encourages WTO members to reach an ambitious and balanced agreement on the long-standing issue of fishery subsidies during the ministerial conference to be held in 2021, and to send out a clear signal that the WTO is still able to deliver on its negotiating function; |
| --- | --- |

14.

| 15. | Welcomes the multi-party interim appeal arbitration arrangement (MPIA), a new system that will allow the EU, together with other participating WTO members, to overcome the current paralysis of the WTO’s Appellate Body and will permit the participating members to preserve a functioning two-step dispute settlement system at the WTO should there be disputes between them; |
| --- | --- |

15.

| 16. | Notes the progress made during ongoing sectoral and plurilateral negotiations, notably on domestic regulation of services, e-commerce and investment facilitation; underlines that these sectoral negotiations are Joint Communication-based undertakings which should be conducted with a view to finding a cross-cutting consensus of all participants; |
| --- | --- |

16.

| 17. | Welcomes the progress made on negotiations for the Multilateral Investment Court (MIC); notes that the International Court System (ICS) is intended to be a stepping-stone towards the MIC; regrets the extremely slow progress of Member States in dismantling intra-EU bilateral investment treaties (BITs), and urges the Commission to take action where appropriate; |
| --- | --- |

17.

| 18. | Expresses its strong support for the trilateral cooperation under way between the EU, the US and Japan on limiting market-distorting practices worldwide; welcomes in this regard the joint statement of 14 January 2020 on industrial subsidies; |
| --- | --- |

18.

United States

| 19. | Deeply regrets the significant change of direction in US trade policy over the past three years, and is concerned at the increase in unilateral trade measures and the rise of protectionist measures, including recent decisions by the US Department of Commerce to launch further section 232 investigations; regrets the formal notification by the US on 4 November 2019 of its withdrawal from the Paris Agreement, and recalls that the EU’s common commercial policy should contribute to promoting the realisation of that agreement; stresses the importance of relaunching the EU-US talks to resolve pending problems, including disputes; stresses the importance of keeping agriculture outside the scope of the negotiations as well as ensuring proper monitoring and protection of the fisheries sector; |
| --- | --- |

19.

| 20. | Recalls that the EU should continue to work with the US as a partner with whom it has to find solutions to trade issues of common interest and also to threats and to trade frictions, including the extraterritorial application of laws adopted by the US which are contrary to international law; stresses that the EU should continue to engage in efforts to restore mutual trust and close trade relations while ensuring that European standards are respected; is of the view that a limited trade agreement with the US could be considered as an important stepping-stone; |
| --- | --- |

20.

| 21. | Invites the Commission to engage its US counterparts to find ways to de-escalate transatlantic trade tensions, including finding negotiated solutions with the US on the issue of civil aircraft subsidies, in particular with regard to the ongoing Airbus-Boeing dispute, and to reach a deal to end the illegal imposition of US steel and aluminium tariffs and illegal anti-subsidies and anti-dumping measures on agri-food products, including those on ripe olives; urges the Commission to increase its efforts for a coordinated and unified EU response; welcomes the negotiations between the EU and the US on mutual acceptance of the results of the conformity assessment; encourages the Commission to accelerate cooperation in other areas of joint interest, such as standards and other non-tariff barriers, in order to make trade easier, reduce bureaucratic obstacles and slash costs; |
| --- | --- |

21.

| 22. | Regrets that the current administration is considering withdrawing from the General Procurement Agreement; urges the administration to remain a party to that agreement; |
| --- | --- |

22.

China

| 23. | Notes that China represents a market of opportunities because of its size and growth, being the EU’s second biggest trading partner, but that there are many barriers for EU businesses when it comes to accessing and operating in that market, due to the state-led and state-subsidised nature of the Chinese economy, where state-owned businesses benefit from exclusive or dominant market access; condemns all types of discriminatory measures facing EU companies in China; considers that fair competition between EU and Chinese companies would lead to more opportunities and greater innovation, and calls on the Commission to constantly monitor the persistent acts of discrimination and work with the Chinese authorities in order to dismantle such acts and barriers; takes note of the withdrawal by China in May 2019 of its complaint at the WTO against the EU regarding the non-market economy treatment in anti-dumping; welcomes the outcome of the dispute settlement case between the EU and China which marks the end of China’s status as a market economy, in line with Parliament’s position of May 2016 (12); |
| --- | --- |

23.

| 24. | Welcomes the conclusion on 6 November 2019 of the negotiations for an EU-China Geographical Indications Agreement as a positive step towards improving the protection of EU GI products in China, and calls for its swift ratification, as well as for updated legislation and stronger enforcement; insists that this EU-China Geographical Indications Agreement must not be infringed upon by the US-China Phase 1 trade deal; calls on the Commission to monitor the situation of market access for European products during implementation of this agreement; notes that, according to the most recent report on the protection and enforcement of intellectual property rights (IPRs), more than 80 % of seizures of counterfeit and pirated goods concern goods originating from China, and that this was the case in both 2018 and 2019; calls on the Commission to explore further tools to address these issues and guarantee the full protection of IPRs; |
| --- | --- |

24.

| 25. | Encourages the Commission to conclude negotiations on an ambitious investment agreement with China, with an effective Trade and Sustainable Development (TSD) chapter, which removes all barriers to market openness in China; looks forward to the conclusion of the negotiations by the end of 2020 as agreed in the EU-China Summit in 2019; firmly believes, however, that the substance of the agreement should be prioritised over the speed of its conclusion; |
| --- | --- |

25.

| 26. | Is appalled by the report of the Australian Strategic Policy Institute released in February 2020, which shows evidence of exploitation of Uyghur workers in Chinese factories, including in factories belonging to EU companies’ value chains; is deeply concerned at the reported impacts of the Belt and Road Initiative on human rights in China and Pakistan; calls on the Commission to use all available means to end the exploitation of Uyghurs; calls on European companies to stop any form of implication in China’s human rights violations; insists that Uyghur forced labour must be excluded from the supply chains of products imported into the single market; |
| --- | --- |

26.

New partnership with Africa

| 27. | Welcomes the publication of the Joint Communication for a comprehensive EU-Africa Strategy; calls for the EU to engage more with African countries in order to create an effective and solid partnership, in line with the trade-related aspects of the Agenda 2063 African Development Strategy, that would promote sustainable economic development, growth and food security in the African continent; stresses that the figures of the recent report of 10 February 2020 on the General Scheme of Preferences (GSP) covering the period 2018-2019 show an increase in the utilisation rate of the preferences by the countries benefiting from the scheme; calls on the Commission to increase its technical and economic support via aid-for-trade measures between the EU and African countries as well as among African countries themselves; notes in this regard that aid-for-trade should be a key component in trade relations with Africa in the aftermath of the COVID-19 crisis; |
| --- | --- |

27.

| 28. | Welcomes the progress made towards implementing the African Continental Free Trade Area (ACFTA), which aims to create a single continental market for goods and services, with free movement of people and investment; welcomes the EU’s support in setting up the new African Union Trade Observatory; calls for continued EU support for ACFTA in line with the Africa-Europe Alliance for Sustainable Investments and Jobs; calls for proper enforcement and deepening of the existing Economic Partnership Agreements (EPAs) with the aim of boosting trade and investment; welcomes the entry into force of the ESA and SADC EPAs and the interim EPAs with Ghana and Côte d’Ivoire, and regrets the lack of progress in ratification of the remaining regional EPAs; expresses its support for the vision set out in the 2018 State of the Union address of a continent-to-continent trade agreement that should be an economic partnership between equals which would create mutual benefits and serve to further the Sustainable Development Goals (SDGs) and support the development of competitive local and regional value chains and resilient fiscal systems; |
| --- | --- |

28.

| 29. | Stresses, moreover, that it is important that EPAs are jointly monitored, with the support of local partners and civil society organisations; calls on the Commission to carry out an in-depth analysis of the current EPAs on matters such as local economies, labour markets, biodiversity loss, deforestation and land-grabbing, in order to determine whether changes are needed; |
| --- | --- |

29.

Developing countries

| 30. | Emphasises that trade can be an important tool for achieving the SDGs by helping to reduce poverty; to this end, highlights the need to focus on mutually beneficial FTAs, export diversification, value addition and micro-, small and medium-sized enterprises (MSMEs); points out that the EU is committed to a robust, effective and credible commercial policy which will form the basis of a fair, open, rule-based, multilateral and inclusive commercial system constituting a global level playing field in the interest of all countries, including developing ones, which is essential for the further integration of developing countries into global value chains; recalls that EU trade and development policy should contribute to regional integration and the incorporation and rise of developing countries within global value chains; |
| --- | --- |

30.

| 31. | Highlights that developing countries are the most affected by the phenomenon of tax evasion, which deprives states of billions of euros in public revenues every year; calls for the inclusion in trade agreements with developing countries of provisions to help combat illicit financial flows and tax evasion on the part of corporations and multinationals, with the aim of ensuring that taxes are paid where profits and real economic value are created and eliminating base erosion and profit-shifting; |
| --- | --- |

31.

Japan, Singapore and Vietnam

| 32. | Welcomes the entry into force of the EU-Japan FTA of 1 February 2019, and notes that, according to the first elements given after one year of implementation (13), EU exports to Japan went up by 6,6 % compared to the same period the year before; |
| --- | --- |

32.

| 33. | Welcomes the entry into force of the EU-Singapore trade agreement of 21 November 2019; welcomes the progress towards implementation of the EU-Vietnam agreement and calls for continued speedy progress, notably in the establishment of joint institutions and the ratification of outstanding core ILO conventions and commitments on human rights issues, urging the Commission to ensure their concrete enforcement in liaison with the EEAS; calls on the Member States to proceed with ratification of the EU-Vietnam Investment Protection Agreement (EVIPA) so that it can, together with the EU-Vietnam Free Trade Agreement (EVFTA), enter into force as soon as possible; notes that in 2018 the EU exported around EUR 13,8 billion worth of goods to Vietnam, and points out that the rules-based free trade agreements (FTAs) and investment protection agreements (IPAs) will ensure predictability and rule of law for investors, as well as positively increasing exports in both ways and creating stability and trust for SMEs; views these agreements as a step towards concluding an FTA with the entire Association of Southeast Asian Nations (ASEAN) region; |
| --- | --- |

33.

| 34. | Stresses that the above three agreements consolidate the strategic dynamic of the European Union in a key area of the world characterised by a rapid growth of population and incomes, with significant opportunities for our operators; considers furthermore that by its stronger presence the EU could create an alternative to Chinese domination in the area; |
| --- | --- |

34.

Latin America and the Caribbean

| 35. | Highlights the importance of strengthening mutually beneficial trade and political relations with Latin America; recalls that the European Union and Latin America maintain close cooperation based on their historical, cultural and economic ties, with the Latin America and the Caribbean (LAC) region representing the EU's fifth largest trade partner; believes that the EU's presence in the region is fundamental in terms of enhancing cooperation based on shared values, as well as being a vector for pursuing the EU's external action policy, notably in terms of strengthening the multilateral rules-based trade system; invites the Commission to clarify its intention concerning future trade and association agreements on the issue of the split of the text; |
| --- | --- |

35.

| 36. | Stresses the importance of the recently concluded modernisation of the EU-Mexico association agreement and the conclusion of the Mercosur association agreement, which both have the potential to deepen our strategic partnership with Latin America, to create additional opportunities in our trade relations with those countries, and to help diversify supply chains for the European economy; considers that the association agreement between the EU and Mercosur represents the largest ‘bloc to bloc’ deal of its kind and has the potential to create a mutually beneficial open market area encompassing approximately 800 million citizens; points out that this agreement, like all EU trade agreements, must ensure fair competition and guarantee that European production standards and methods are upheld; points out that the agreement contains a binding chapter on sustainable development that must be applied, implemented and fully assessed, as well as specific commitments on labour rights and environmental protection, including the implementation of the Paris climate agreement and the relevant implementing rules; emphasises that the EU-Mercosur agreement cannot be ratified as it stands; |
| --- | --- |

36.

| 37. | Is convinced that the modernisation of the association agreement with Chile will serve to further boost the EU's presence in the wider region and help promote an international trade agenda based on sustainable development, stronger protection for environmental and labour standards and respect for human rights; calls on the Commission to ensure that the ongoing negotiations deliver on these principles and that an agreement can be reached in a timely manner; |
| --- | --- |

37.

Ongoing FTA negotiations

| 38. | Calls for an ambitious agenda to be pursued when it comes to negotiating FTAs, in particular with Australia and New Zealand, Tunisia, Morocco and Indonesia and in line with the Green Deal, bearing in mind the sensitive nature of certain agricultural products such as beef, sheepmeat, dairy products and fruit; reiterates its call for the swift opening of investment negotiations with Taiwan, and invites the Commission to open a scoping exercise; |
| --- | --- |

38.

| 39. | Takes a pragmatic approach towards the issue of trade relations with UK, which should be comprehensive and ambitious, aiming at zero tariffs and zero quotas, and should be based on the principles regarding trade, investment and competitiveness that are set out in its recommendation of 18 June 2020 on the negotiations for a new partnership with the United Kingdom of Great Britain and Northern Ireland (14); notes that the Political Declaration of 17 October 2019, supported by the UK, states that the future economic partnership will be underpinned by provisions ensuring a level playing field for open and fair competition, especially if no agreement is reached before the end of 2020; points out that the EU Member States are net exporters to the UK and that finding a solution that satisfies both parties must be a priority aiming to ensure the respect and protection of the interests of EU exporters and investors; calls on the Commission to enhance competitiveness for EU companies and SMEs; |
| --- | --- |

39.

| 40. | Encourages the Commission to seize the momentum caused by the UK’s withdrawal to streamline our EU policies, cut red tape and enhance competitiveness for EU companies and SMEs; stresses that the FTA with the UK should aim to allow for the closest possible market access and trade facilitation, in order to minimise trade disruptions and ensure a level playing field; |
| --- | --- |

40.

Implementation of FTAs

| 41. | Acknowledges the outcome presented in the Commission’s report regarding the implementation of free trade agreements (FTAs), in particular with South Korea, Central America/Latin America, Canada and the Eastern partners; stresses that EU trade agreements have a clear track record of, in most cases, reaching their primary objective of creating significant opportunities for EU exporters on third-country trade markets; stresses, however, that Commission estimates point to an increased negative economic impact of trade and investment barriers as a result of the protectionist trend; asks the Commission to continue with carrying out ex post impact assessment, including on sustainability, of the impact of trade agreements on our economy; |
| --- | --- |

41.

| 42. | Encourages the Commission to continuously search for ways to enhance trade relations and further deepen economic integration with the Eastern Partnership countries, particularly in the case of the three associated countries; |
| --- | --- |

42.

| 43. | Recalls the positive developments concerning the EU-Canada trade agreement (CETA); notes that during its first full calendar year of implementation, bilateral trade in goods, including agri-food products, grew by 10,3 %, compared to the average of the previous three years; recalls that the EU’s trade surplus with Canada rose by 60 % and created additional opportunities for our exporters; also recalls that since the provisional entry into force of the agreement the two parties have created a solid partnership by accompanying the original text with important recommendations on trade, climate action and the Paris agreement, trade and gender, and SMEs, and considers this to be proof of the dynamic of a trade agreement in its implementation; invites the Commission to transmit to Parliament more recent data relating to exports by EU SMEs and the overall sustainability of the agreement; recalls the importance of strengthening implementation and follow-up of the TSD chapter; |
| --- | --- |

43.

| 44. | Reiterates its concern over the low preference utilisation rate on EU exports reported by some of the EU’s preferential partners, which denotes the limited benefits of the strategy of trade bilateralism for smaller economic operators; notes in particular a large divergence in utilisation of preferences on the Union’s exports to different trade partners and little divergence in utilisation of preferences on EU imports from different trade partners; calls on the Commission to further analyse preference utilisation and come up with new innovative tools and practical solutions; highlights the importance of flexible, streamlined and uncomplicated rules of origin in this regard; calls on the Commission, together with the Member States, to streamline work towards more effective trade promotion and communication strategies and to use the full potential of the EU Delegations around the world; |
| --- | --- |

44.

| 45. | Points out that the large number of trade and non-trade barriers and the current divergences in the level and quality of controls, customs procedures and sanctions policies at the EU’s points of entry into the Customs Union, often result in distortion of trade flows, which puts at risk the integrity of the single market; therefore urges the Commission to address this issue to ensure that companies can compete fairly on a level playing field; |
| --- | --- |

45.

| 46. | Underlines that the protection of geographical indications is one of the Union’s offensive points in trade agreement negotiations, and highlights the importance of the EU’s partners complying with the provisions concerned; calls on the Commission to secure greater compliance with those provisions in existing and future trade agreements; |
| --- | --- |

46.

| 47. | Calls on the Commission to specifically look into the cumulative effects of EU FTAs on trade diversion, for the EU as well as for its partner countries, and to compare the results to the individual impact assessments and to actual figures; |
| --- | --- |

47.

| 48. | Highlights the importance of involving the national parliaments, civil society and the private sector of all parties in trade negotiations in particular; calls for greater participation and consultation of social partners and civil society in the negotiation and implementation of trade agreements, notably within the remit of domestic advisory groups, whose monitoring role could be extended to all parts of trade agreements, and not limited solely to TSD chapters; |
| --- | --- |

48.

Trade and sustainable development

| 49. | Recalls its position expressed in its previous report on the implementation of the common commercial policy; underlines that the 15-point action plan of 27 February 2018 set out by the Commission’s services represents a good basis for reflection in order to improve TSD chapter implementation; points out that the new-generation agreements include human rights clauses and sustainable development chapters, to be implemented comprehensively and in their entirety in order to safeguard and promote the observance of human rights, the Union’s values and high labour, social and environmental standards; notes the evaluation of the sustainable development chapters included in the Commission report on implementation of FTAs, and calls for a timely implementation of existing TSD provisions; asks the Commission to develop a precise and specific methodology for monitoring and evaluating the implementation of these chapters, given that such an evaluation cannot be made on the basis of quantitative data only; calls on the Commission to present proposals on how to strengthen the enforcement of the sustainable development chapter in trade agreements; |
| --- | --- |

49.

| 50. | Takes note of the initiative launched by the Commission’s DG JUST for mandatory due diligence for companies, including its consideration in EU trade agreements, as well as a mechanism that ensures effective implementation; points out that the proposal on mandatory due diligence should ensure that these measures will not add an extra burden for European SMEs or lower their competitiveness; |
| --- | --- |

50.

| 51. | Reiterates its call on the Commission and the Member States to engage constructively in the negotiations for a legally binding UN treaty on transnational corporations and other business enterprises with respect to human rights, with the aim of ensuring access to justice for victims of human rights violations and enabling them to seek redress; |
| --- | --- |

51.

| 52. | Welcomes the Commission’s initiative for a European Green Deal, and underlines that it should be actively supported by an EU trade strategy that is ecologically, economically and socially balanced; welcomes the Commission’s commitment to make compliance with the Paris climate agreement an ‘essential clause’ in trade agreements; |
| --- | --- |

52.

| 53. | Observes that the current approach already contributes to addressing issues of non-compliance with obligations; however, calls on the Commission to be more attentive and to learn from its previous experience as seen in the establishment of a panel at the request of the EU under the EU-Korea FTA, following South Korea’s failure to ratify International Labour Organisation (ILO) conventions on workers’ rights, notably on freedom of association and collective bargaining; |
| --- | --- |

53.

| 54. | Recalls that the early efforts of the Commission and Parliament in the trade negotiations with Mexico and Vietnam successfully encouraged the ratification by both countries, respectively in November 2018 and June 2019, of ILO Convention 98 on the right to organise and collective bargaining; congratulates both countries for such an important step; calls on the Commission to monitor the progress made with respect to the implementation of other ILO conventions, and to set up without delay the interparliamentary committee as agreed under the EVFTA, paying special attention to the prohibition of child labour; deplores the fact that Vietnam has not ratified ILO Convention 87 on Freedom of Association; calls on the Commission to monitor the situation closely and to request consultations with the Vietnamese government should it fail to make continued and sustained efforts towards ratifying, as foreseen by the agreement; |
| --- | --- |

54.

| 55. | Recalls the need for an effective action plan to implement the goal of zero tolerance of child labour in FTAs, by building a strong partnership with NGOs and national authorities in order to develop strong social and economic alternatives for families and workers, in coherence with actions taken under the EU development policy; |
| --- | --- |

55.

| 56. | Believes that TSD chapters in trade agreements should be one of the drivers of the external dimension of the European Green Deal; underlines that any new carbon adjustment mechanism should be compatible with WTO rules as well as EU FTAs; stresses that EU companies should not be put at a competitive disadvantage; |
| --- | --- |

56.

| 57. | Notes that EU trade and investment policy should be used as leverage towards responsible management of supply chains, which includes ensuring that businesses uphold human rights, labour rights and environmental standards and that there is access to justice; takes note of the commitments from the Commission that it will present a legislative proposal by 2021; |
| --- | --- |

57.

| 58. | Calls on the Commission to ensure that human rights conditions linked to unilateral trade preferences such as GSP or GSP+ are effectively implemented and monitored; stresses that EU trade policy should help to combat illegal trade, deforestation and forest degradation; |
| --- | --- |

58.

| 59. | Considers that the trade dimension of the COP15 of the UN Convention on Biological Diversity should be fully taken into account; recalls its resolution of 16 January 2020 on the 15th meeting of the Conference of Parties (COP15) to the Convention on Biological Diversity, (15) calling on the Commission and the Member States to actively engage with third countries, particularly through their external action instruments, such as the Neighbourhood, Development and International Cooperation Instrument (NDICI), in order to promote and set targets for biodiversity protection, conservation and restoration measures and governance, in particular in all multilateral and trade agreements, as well as measures against non-compliance; consequently, calls on the Commission to include enforceable TSD chapters in all future trade agreements; |
| --- | --- |

59.

| 60. | Demands that beside the usual fundamental ILO conventions, the EU should urge its economic partners to ratify and implement Conventions 189 on domestic workers, 156 on workers with family responsibilities and 190 on violence and harassment; |
| --- | --- |

60.

Defending EU trade interests

| 61. | Recalls that the efforts to maintain rules-based trade must play a crucial role in our trade strategy, and in this context welcomes the adoption of the modernisation package of trade defence instruments in 2018, and the new foreign direct investment (FDI) screening mechanism; underlines that this screening mechanism aims at cooperation and potential restriction regarding foreign investments in strategic sectors with a view to protecting the Union and its Member States; calls on the Commission to ensure the effective enforcement of trade defence instruments (TDIs) so as to protect European industry from unfair market practices, and to evaluate and strengthen the safeguard instruments in order to make them more responsive to extraordinary circumstances and better adapted to reinforce European industry by effectively anticipating market disruptions from trade flow; stresses the need for strong screening and cooperation in the post COVID-19 context, in which some of the EU strategic sectors could be subjected to pressure; stresses, however, that the new FDI screening mechanism should never be used as a protectionist measure; welcomes the White Paper on foreign subsidies, and calls on the Commission to come forward with a legislative proposal as appropriate should current tools prove to be insufficient; |
| --- | --- |

61.

| 62. | Notes that there is currently a massive increase in steel imports from China and other third countries, which severely affects the European industry and endangers a large number of jobs; highlights that the review process of the current safeguard measures on imports of steel products needs to include reducing the existing quotas in accordance with the imported overcapacities, and to abolish the possibility of transferring unused quotas; |
| --- | --- |

62.

| 63. | Welcomes the announcement by the Commission of the appointment early in 2020 of a Chief Trade Enforcement Officer (CTEO) to monitor and improve compliance with the EU’s trade agreements; notes that rules under EU trade agreements should be properly enforced in order to ensure their effectiveness and address market distortions; underlines the need for this newly created post to focus on implementation and enforcement of our trade agreements, as well as on breaches of market access and trade and sustainable development commitments; is of the opinion that the CTEO should not only monitor and enforce environmental and labour protection obligations under the EU trade agreements with third countries, but also focus on implementation of all chapters of trade agreements in order to guarantee that these are used to their full potential; calls on the Commission to further clarify this role; |
| --- | --- |

63.

| 64. | Calls on the Council to ensure a rapid and swift agreement on the International Procurement Instrument, in order to provide legal security, reciprocity and a level playing field for EU operators; calls for the inclusion of a global catalogue of essential emergency healthcare products, to avoid future abuses by third-country providers in international trade during a global pandemic; notes that the Union’s public procurement markets are the most open in the world and that certain third countries have very limited access to such markets; stresses the importance of promoting reciprocity and mutual benefit in the area of access to markets and public procurement, to the benefit of EU companies; |
| --- | --- |

64.

| 65. | Emphasises the necessity of having in place adequate investment screening mechanisms in all Member States to protect against risks regarding security and public order; encourages Member States that do not yet have screening mechanisms to put in place temporary solutions, and invites the Commission to actively support such efforts; |
| --- | --- |

65.

| 66. | Underlines that foreign direct investment into the EU and the acquisition of healthcare and other key infrastructure by foreign investors has the potential to harm EU efforts to address the COVID-19 pandemic in Europe; welcomes in this regard the Commission’s communication on Guidance to the Member States ahead of the application of the FDI Screening Regulation; urges those Member States which have not yet established a screening mechanism to do so urgently; further calls on all Member States to use all available tools to ensure that effective mechanisms are in place to assess potential investment and acquisitions in relation to threats to critical health infrastructure in the EU, and to take mitigating or blocking measures as needed; |
| --- | --- |

66.

| 67. | Reiterates the need to level the playing field between European industries that implement ambitious climate, environmental, ecological and social standards, and those trade partners that do not pursue the same high standards; considers, therefore, that a WTO-compatible Carbon Border Adjustment Mechanism that enhances global climate action and protects European industries from unfair competition is urgently needed; |
| --- | --- |

67.

| 68. | Calls on EU leaders and the Commission to take bold decisions regarding the reform of the EU’s own resources system, including the introduction of a basket of new own resources; reaffirms its position, as set out in the interim report on the multiannual financial framework (MFF), regarding the list of potential candidates for new own resources: a common consolidated corporate tax base, digital services taxation, a financial transaction tax, income from the emissions trading scheme, a plastics contribution and a WTO-compatible carbon border adjustment mechanism (16); |
| --- | --- |

68.

| 69. | Is concerned at the continuous expansion of arbitration mechanisms between investors and states through investment agreements; recalls that such parallel judicial systems are designed to favour corporate interests and rights but not companies’ duties and responsibilities, and can put states’ policy space and legitimate right to regulate at risk; denounces the fact that law firms have begun promoting advice on how foreign investors could bring suits in arbitration as a result of COVID-related government measures; calls for a moratorium on all arbitration claims related to measures targeting health, economic, and social dimensions of the pandemic and its effects; |
| --- | --- |

69.

| 70. | Calls for a relaunch of negotiations for an Environmental Goods Agreement, and calls on the Commission to propose unilateral modifications of the tariffs applied on ‘green goods’ if these can be identified as contributing to reaching the targets of the European Green Deal; |
| --- | --- |

70.

| 71. | Calls for the external dimension of circular economy initiatives (17) to be scaled up in the EU’s relations with third countries through regulatory cooperation and dialogue; |
| --- | --- |

71.

Trade in services and digital trade

| 72. | Welcomes the ongoing plurilateral negotiations over key areas of trade in services, notably domestic regulation of services and investment facilitation; notes that having a commercial presence in a third country is the dominant mode of supply for trading services and for e-commerce; |
| --- | --- |

72.

| 73. | Stresses that the EU is by far the world’s biggest exporter of services and that services represent about 70 % of its GDP; highlights in particular the relative resilience of trade in services during the COVID-19 crisis, and underlines its role in the economic recovery in Europe; |
| --- | --- |

73.

| 74. | Underlines the need to facilitate international recovery efforts through open and fair trade, including digital trade, which necessitates a moratorium on customs duties on electronic transmissions; supports the WTO Joint Statement on Electronic Commerce advocating global rules in this field; calls for openness to a meaningful outcome to facilitate the flow of data across borders and address unjustified barriers to trade by electronic means, in full conformity with EU privacy and data protection law, including the General Data Protection Regulation (GDPR), and for use to be made of the flexibility offered by the negotiating directives; welcomes the fact that these negotiations bring together a very large number of WTO members, and calls for them to be kept as open and inclusive as possible; |
| --- | --- |

74.

SMEs

| 75. | Notes that SMEs account for approximately 30 % of the value of EU goods exports and more than 80 % of all EU enterprises exporting goods, and yet only 5 % of SMEs are active on the international front, meaning that a large majority depend on the vibrancy of the internal market; supports the idea that a specific chapter on SMEs should be part of all proposed FTAs, as is the case in the EU-Japan agreement and the modernised agreement with Mexico, and that SMEs should be included when revising existing FTAs; notes that trade barriers and bureaucracy are especially burdensome for SMEs; calls on the Commission to continue its efforts to support micro-, small and medium-sized enterprises (MSMEs), with specific focus on and measures for those which are women-led; calls on the EU and its Member States to pay particular attention to the special circumstances of women-led MSMEs when establishing export helpdesks, to take advantage of the possibilities created by FTAs, and to strengthen services, technologies and infrastructures (such as internet access) that are of particular importance for the economic empowerment of women and women-led MSMEs; |
| --- | --- |

75.

| 76. | Asks the Commission, in collaboration with Member States, business, and stakeholders, to facilitate the use and understanding of rules of origin for SMEs; reminds the Commission of its objective of launching in early 2020 a dedicated rules of origin self-assessment tool for SMEs on the Access2Market platform, to help companies assess whether a product can benefit from preferences under a given EU trade agreement, in order to facilitate SMEs’ utilisation of preferences under EU trade agreements, and so that SMEs ultimately enjoy the full benefits of trade agreements and access to foreign markets, via the provision of user-friendly, up-to-date and practical information on trade policy and in particular on FTAs; reiterates its call on the Commission to monitor the effects of its trade policy on SMEs, as they play a vital role in international trade, recalling that owing to their size and limited resources administrative costs and bureaucracy affect SMEs disproportionately; |
| --- | --- |

76.

Gender and trade

| 77. | Stresses the opportunity for EU free trade agreements to promote gender equality and strengthen the economic position of women in third countries, and calls on the Commission to combat the exploitation of women; calls on the Commission and the Council to propose negotiating a specific gender chapter in EU trade and investment agreements; supports the recommendations on gender and trade issued by the EU-Canada Joint Committee, setting out a platform that can promote understanding on how trade agreements can contribute to gender equality; |
| --- | --- |

77.

| 78. | Notes that the 26 sustainability impact assessments completed as of June 2017 did not include any specific statistics on trade and gender and that the 2018 implementation report does not provide any data either; insists on the need to start collecting gender- disaggregated data, and expects the next report to contain comprehensive data on the impact of FTAs in accordance with the commitment made by the Commission; flags in that respect the gender-based assessment carried out by Canada as a best practice worth implementing; |
| --- | --- |

78.

| 79. | Calls on the Commission to make sure that the composition of the Domestic Advisory Groups (DAGs) is gender-balanced and that a Trade and Gender committee is established under each FTA to identify shortcomings and that, as is the case with the Canada-Israel FTA, the dispute settlement mechanism applies to gender issues; |
| --- | --- |

79.

o

o o

| 80. | Instructs its President to forward this resolution to the Council, the Commission, the national parliaments of the Member States, the European Economic and Social Committee and the Committee of the Regions. |
| --- | --- |

80.

---

(1)  Texts adopted, P8_TA(2018)0230.

(2)  Texts adopted, P8_TA(2018)0477.

(3)  OJ C 307, 30.8.2018, p. 109.

(4)  OJ C 101, 16.3.2018, p. 30.

(5)  OJ C 101, 16.3.2018, p. 19.

(6)  OJ C 407, 4.11.2016, p. 2.

(7)  Texts adopted, P8_TA(2018)0066.

(8)  https://trade.ec.europa.eu/doclib/docs/2020/february/tradoc_158619.pdf

(9)  OJ L 771, 15.3.2020, p. 1.

(10)  European Parliament resolution of 9 June 2015 on the EU strategy for equality between women and men post 2015.

(11)  European Parliament resolution of 13 March 2018 on gender equality in EU trade agreements.

(12)  European Parliament resolution of 12 May 2016 on China’s market economy status (OJ C 76, 28.2.2018, p. 43).

(13)  https://ec.europa.eu/commission/presscorner/detail/en/ip_20_161

(14)  Texts adopted, P9_TA(2020)0152.

(15)  Texts adopted, P9_TA(2020)0015.

(16)  See European Parliament resolution of 15 May 2020 on the new multiannual financial framework, own resources and the recovery plan (Texts adopted, P9_TA(2020)0124).

(17)  https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52020DC0098&from=EN?

---

Thursday 8 October 2020

| 29.9.2021 | EN | Official Journal of the European Union | C 395/28 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/28

---

P9_TA(2020)0255

Objection to an implementing act: Specifications for titanium dioxide (E 171)

European Parliament resolution of 8 October 2020 on the draft Commission regulation amending the Annex to Regulation (EU) No 231/2012 laying down specifications for food additives listed in Annexes II and III to Regulation (EC) No 1333/2008 of the European Parliament and of the Council as regards specifications for titanium dioxide (E 171) (D066794/04 — 2020/2795(RPS))

(2021/C 395/03)

The European Parliament,

| — | having regard to the draft Commission regulation amending the Annex to Regulation (EU) No 231/2012 laying down specifications for food additives listed in Annexes II and III to Regulation (EC) No 1333/2008 of the European Parliament and of the Council as regards specifications for titanium dioxide (E 171) (D066794/04, |
| --- | --- |

—

having regard to the draft Commission regulation amending the Annex to Regulation (EU) No 231/2012 laying down specifications for food additives listed in Annexes II and III to Regulation (EC) No 1333/2008 of the European Parliament and of the Council as regards specifications for titanium dioxide (E 171) (D066794/04,

| — | having regard to Regulation (EC) No 1333/2008 of the European Parliament and of the Council of 16 December 2008 on food additives (1), and in particular Article 14 thereof, |
| --- | --- |

—

having regard to Regulation (EC) No 1333/2008 of the European Parliament and of the Council of 16 December 2008 on food additives (1), and in particular Article 14 thereof,

| — | having regard to Regulation (EC) No 1331/2008 of the European Parliament and of the Council of 16 December 2008 establishing a common authorisation procedure for food additives, food enzymes and food flavourings (2), and in particular Article 7(5) thereof, |
| --- | --- |

—

having regard to Regulation (EC) No 1331/2008 of the European Parliament and of the Council of 16 December 2008 establishing a common authorisation procedure for food additives, food enzymes and food flavourings (2), and in particular Article 7(5) thereof,

| — | having regard to the summary report delivered on 13 May 2019 by the Standing Committee on Plants, Animals, Food and Feed (3), |
| --- | --- |

—

having regard to the summary report delivered on 13 May 2019 by the Standing Committee on Plants, Animals, Food and Feed (3),

| — | having regard to the statement adopted by the European Food Safety Authority (EFSA) on 10 May 2019, and published on 12 June 2019 (4), |
| --- | --- |

—

having regard to the statement adopted by the European Food Safety Authority (EFSA) on 10 May 2019, and published on 12 June 2019 (4),

| — | having regard to Article 5a(3)(b) and Article 5a(5) of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (5), |
| --- | --- |

—

having regard to Article 5a(3)(b) and Article 5a(5) of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (5),

| — | having regard to Rule 112(2) and (3), and (4)(c) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 112(2) and (3), and (4)(c) of its Rules of Procedure,

| — | having regard to the motion for a resolution by the Committee on the Environment, Public Health and Food Safety, |
| --- | --- |

—

having regard to the motion for a resolution by the Committee on the Environment, Public Health and Food Safety,

| A. | whereas Regulation (EC) No 1333/2008 lays down rules on food additives used in foods with a view to ensuring the effective functioning of the internal market whilst ensuring a high level of protection of human health and a high level of consumer protection, including the protection of consumer interests and fair practices in food trade, taking into account, where appropriate, the protection of the environment; |
| --- | --- |

A.

whereas Regulation (EC) No 1333/2008 lays down rules on food additives used in foods with a view to ensuring the effective functioning of the internal market whilst ensuring a high level of protection of human health and a high level of consumer protection, including the protection of consumer interests and fair practices in food trade, taking into account, where appropriate, the protection of the environment;

| B. | whereas Regulation (EC) No 1331/2008 lays down a common procedure for the assessment and authorisation of food additives, inter alia, which contributes to the free movement of food within the Union and to a high level of protection of human health and to a high level of consumer protection, including the protection of consumer interests; |
| --- | --- |

B.

whereas Regulation (EC) No 1331/2008 lays down a common procedure for the assessment and authorisation of food additives, inter alia, which contributes to the free movement of food within the Union and to a high level of protection of human health and to a high level of consumer protection, including the protection of consumer interests;

Use of titanium dioxide (E 171) in food

| C. | whereas titanium dioxide (E 171) is a food additive partly made of nanoparticles and mainly found in food such as confectionery, cakes, desserts, ice-cream, biscuits, chocolate bars, bakery and pastry products; whereas its main function is to impart the white colour or opacity of products; |
| --- | --- |

C.

whereas titanium dioxide (E 171) is a food additive partly made of nanoparticles and mainly found in food such as confectionery, cakes, desserts, ice-cream, biscuits, chocolate bars, bakery and pastry products; whereas its main function is to impart the white colour or opacity of products;

| D. | whereas titanium dioxide (E 171) is mainly used in food products which are particularly popular with children, such as chewing gum, candies, chocolates, and ice cream, which raises concerns as to the potential high exposure of this vulnerable section of the population; |
| --- | --- |

D.

whereas titanium dioxide (E 171) is mainly used in food products which are particularly popular with children, such as chewing gum, candies, chocolates, and ice cream, which raises concerns as to the potential high exposure of this vulnerable section of the population;

Safety risk assessment

| E. | whereas the scientific opinion of 28 June 2016 by EFSA (6) on titanium dioxide (E 171) already pointed to a lack of data hindering the full risk assessment of the additive; whereas the uncertainties concerning the safety of titanium dioxide (E 171) partly result from manufacturers’ failure to provide the necessary data to conduct the risk assessment; |
| --- | --- |

E.

whereas the scientific opinion of 28 June 2016 by EFSA (6) on titanium dioxide (E 171) already pointed to a lack of data hindering the full risk assessment of the additive; whereas the uncertainties concerning the safety of titanium dioxide (E 171) partly result from manufacturers’ failure to provide the necessary data to conduct the risk assessment;

| F. | whereas a significant number of recent scientific publications (7) have questioned the safety of titanium dioxide (E 171) and highlighted potential risks related to its consumption; |
| --- | --- |

F.

whereas a significant number of recent scientific publications (7) have questioned the safety of titanium dioxide (E 171) and highlighted potential risks related to its consumption;

| G. | whereas the French Agency for Food, Environmental and Occupational Health and Safety’s (ANSES’s) opinion of 12 April 2019 (8) identified possible carcinogenic impacts of titanium dioxide (E 171), amongst other adverse effects, and concluded that scientific uncertainties concerning the safety of titanium dioxide (E 171) and data gaps remain, which means that any concerns over the potential toxicity of titanium dioxide (E 171) for consumers cannot be dispelled; whereas the Dutch Office for Risk Assessment and Research (BuRO) (9) has also highlighted data gaps and uncertainties; |
| --- | --- |

G.

whereas the French Agency for Food, Environmental and Occupational Health and Safety’s (ANSES’s) opinion of 12 April 2019 (8) identified possible carcinogenic impacts of titanium dioxide (E 171), amongst other adverse effects, and concluded that scientific uncertainties concerning the safety of titanium dioxide (E 171) and data gaps remain, which means that any concerns over the potential toxicity of titanium dioxide (E 171) for consumers cannot be dispelled; whereas the Dutch Office for Risk Assessment and Research (BuRO) (9) has also highlighted data gaps and uncertainties;

| H. | whereas EFSA’s latest statement on titanium dioxide (E 171) in food (10) refers to the ANSES opinion and also acknowledges a number of uncertainties in relation to the safety of its use; |
| --- | --- |

H.

whereas EFSA’s latest statement on titanium dioxide (E 171) in food (10) refers to the ANSES opinion and also acknowledges a number of uncertainties in relation to the safety of its use;

| I. | whereas 19 scientists from eight countries met in February 2016 at the International Agency for Research on Cancer (IARC), in Lyon, France, to reassess the carcinogenicity of titanium dioxide (E 171) and concluded that it should be classified as possibly carcinogenic to human beings (i.e. group 2B) (11); |
| --- | --- |

I.

whereas 19 scientists from eight countries met in February 2016 at the International Agency for Research on Cancer (IARC), in Lyon, France, to reassess the carcinogenicity of titanium dioxide (E 171) and concluded that it should be classified as possibly carcinogenic to human beings (i.e. group 2B) (11);

| J. | whereas the US National Institute for Occupational Safety and Health (NIOSH) has determined that exposure to ultrafine titanium dioxide (E 171) should be considered a potential occupational carcinogen (12); |
| --- | --- |

J.

whereas the US National Institute for Occupational Safety and Health (NIOSH) has determined that exposure to ultrafine titanium dioxide (E 171) should be considered a potential occupational carcinogen (12);

Risk management decisions

| K. | whereas, as a consequence of the ANSES opinion and the subsequent EFSA statement which could not dispel the concerns, the French Government adopted a decree preventing sales of food products containing titanium dioxide (E 171) as of 1 January 2020, as a precautionary measure to protect consumers’ health; |
| --- | --- |

K.

whereas, as a consequence of the ANSES opinion and the subsequent EFSA statement which could not dispel the concerns, the French Government adopted a decree preventing sales of food products containing titanium dioxide (E 171) as of 1 January 2020, as a precautionary measure to protect consumers’ health;

| L. | whereas, despite this background the Commission, instead of proposing to phase out the use of titanium dioxide (E 171) in food products, presented a draft regulation changing the definition and specifications of this food additive, which continues to allow titanium dioxide (E 171) to be legally placed, and maintained, on the market; |
| --- | --- |

L.

whereas, despite this background the Commission, instead of proposing to phase out the use of titanium dioxide (E 171) in food products, presented a draft regulation changing the definition and specifications of this food additive, which continues to allow titanium dioxide (E 171) to be legally placed, and maintained, on the market;

| M. | whereas any decision not to ban titanium dioxide (E 171) from the market disadvantages companies that have chosen to apply the precautionary principle and substituted or removed titanium dioxide (E 171) from their products; |
| --- | --- |

M.

whereas any decision not to ban titanium dioxide (E 171) from the market disadvantages companies that have chosen to apply the precautionary principle and substituted or removed titanium dioxide (E 171) from their products;

Precautionary principle and ‘other factors’

| N. | whereas Article 191(2) of the Treaty on the Functioning of the European Union (TFEU) sets out the precautionary principle as one of the fundamental principles of the Union; |
| --- | --- |

N.

whereas Article 191(2) of the Treaty on the Functioning of the European Union (TFEU) sets out the precautionary principle as one of the fundamental principles of the Union;

| O. | whereas Article 168(1) TFEU states that ‘a high level of human health protection shall be ensured in the definition and implementation of all Union policies and activities’; |
| --- | --- |

O.

whereas Article 168(1) TFEU states that ‘a high level of human health protection shall be ensured in the definition and implementation of all Union policies and activities’;

| P. | whereas more than 85 000 citizens across Europe have already signed a petition (13) to support the French ban on titanium dioxide (E 171) and have asked for the implementation of the precautionary principle in view of uncertainties in relation to food additives that serve no nutritional purpose and may present a risk for consumers; |
| --- | --- |

P.

whereas more than 85 000 citizens across Europe have already signed a petition (13) to support the French ban on titanium dioxide (E 171) and have asked for the implementation of the precautionary principle in view of uncertainties in relation to food additives that serve no nutritional purpose and may present a risk for consumers;

| Q. | whereas the approval of food additives may also take into account other factors relevant to the matter under consideration, including societal, economic, traditional, ethical and environmental factors, the precautionary principle and the feasibility of controls as referred to in Regulation (EC) No 1331/2008; |
| --- | --- |

Q.

whereas the approval of food additives may also take into account other factors relevant to the matter under consideration, including societal, economic, traditional, ethical and environmental factors, the precautionary principle and the feasibility of controls as referred to in Regulation (EC) No 1331/2008;

Authorisation conditions and alternatives

| R. | whereas Article 6 of Regulation (EC) No 1333/2008 provides that a food additive may only be authorised if its use is safe, technologically justified, and if its use does not mislead, but on the contrary benefits, the consumer; |
| --- | --- |

R.

whereas Article 6 of Regulation (EC) No 1333/2008 provides that a food additive may only be authorised if its use is safe, technologically justified, and if its use does not mislead, but on the contrary benefits, the consumer;

| S. | whereas titanium dioxide (E 171) is only used for aesthetic purposes and has no nutritional value, nor does it fulfil any beneficial technological function in food; |
| --- | --- |

S.

whereas titanium dioxide (E 171) is only used for aesthetic purposes and has no nutritional value, nor does it fulfil any beneficial technological function in food;

| T. | whereas there is no convincing technological need for the use of titanium dioxide (E 171), and many food manufacturers and retailers operating on the French market have successfully managed to remove titanium dioxide (E 171) from their products to comply with the French decree suspending the placing on the market of foodstuffs containing the additive (14); whereas some multinational companies have committed to remove titanium dioxide (E 171) from their food portfolio (15); |
| --- | --- |

T.

whereas there is no convincing technological need for the use of titanium dioxide (E 171), and many food manufacturers and retailers operating on the French market have successfully managed to remove titanium dioxide (E 171) from their products to comply with the French decree suspending the placing on the market of foodstuffs containing the additive (14); whereas some multinational companies have committed to remove titanium dioxide (E 171) from their food portfolio (15);

| U. | whereas most Member States have been struggling to enforce the requirement to label nanoparticles in food so far; whereas tests by consumer groups carried out in Spain, Belgium, Italy and Germany have found nanoparticles of titanium dioxide (E 171) in proportions greater than 50 %, without the additive being labelled as ‘nano’ (16), including in foodstuffs such as sweets, chewing-gums, and cakes frequently consumed by children and other vulnerable sections of the population; |
| --- | --- |

U.

whereas most Member States have been struggling to enforce the requirement to label nanoparticles in food so far; whereas tests by consumer groups carried out in Spain, Belgium, Italy and Germany have found nanoparticles of titanium dioxide (E 171) in proportions greater than 50 %, without the additive being labelled as ‘nano’ (16), including in foodstuffs such as sweets, chewing-gums, and cakes frequently consumed by children and other vulnerable sections of the population;

| 1. | Opposes adoption of the draft Commission regulation; |
| --- | --- |

1.

| 2. | Considers that the draft Commission regulation is not compatible with the aim and content of Regulations (EC) No 1333/2008 and (EC) No 1331/2008; |
| --- | --- |

2.

| 3. | Considers that continuing to allow titanium dioxide (E 171) to be placed and sold on the market as a food additive runs counter to the provisions of Article 6 of Regulation (EC) No 1333/2008 and may have adverse effects on the health of European consumers; |
| --- | --- |

3.

| 4. | Calls on the Commission to withdraw the draft regulation; |
| --- | --- |

4.

| 5. | Calls on the Commission to apply the precautionary principle and to remove titanium dioxide (E 171) from the Union list of permitted food additives; |
| --- | --- |

5.

| 6. | Instructs its President to forward this resolution to the Council and the Commission, and to the governments and parliaments of the Member States. |
| --- | --- |

6.

---

(1)  OJ L 354, 31.12.2008, p. 16.

(2)  OJ L 354, 31.12.2008, p. 1.

(3)  https://ec.europa.eu/food/sites/food/files/safety/docs/reg-com_toxic_20190513_sum.pdf

(4)  EFSA statement on the review of the risks related to the exposure to the food additive titanium dioxide (E 171) performed by the French Agency for Food, Environmental and Occupational Health and Safety (ANSES), EFSA Journal 2019;17(6):5714, https://www.efsa.europa.eu/en/efsajournal/pub/5714

(5)  OJ L 184, 17.7.1999, p. 23.

(6)  Re-evaluation of titanium dioxide (E 171) as a food additive, EFSA Journal 2016;14(9):4545, https://www.efsa.europa.eu/en/efsajournal/pub/4545

(7)  See Avicenn’s list of ‘Recent academic publications on adverse effects of E171 and/or TiO2 nanoparticles via oral exposure’ available at http://veillenanos.fr/wakka.php?wiki=RisQIngestionNpTiO2/download&file=20190911AvicennE171recentpublications.pdf; Skocaj, M., Filipic, M., Petkovic, J., and Novak, S., ‘Titanium dioxide in our everyday life; is it safe?’, Radiology and Oncology, 2011 Dec; 45(4): 227–247, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3423755/; and Pinget, G., et al, ‘Impact of the Food Additive Titanium Dioxide (E171) on Gut Microbiota-Host Interaction’, Frontiers in Nutrition, 14 May 2019, https://www.frontiersin.org/articles/10.3389/fnut.2019.00057/full

(8)  Opinion of the French Agency for Food, Environmental and Occupational Health and Safety (ANSES) on the risks associated with ingestion of the food additive E171, available at https://www.anses.fr/en/system/files/ERCA2019SA0036EN.pdf

(9)  https://www.nvwa.nl/documenten/consument/eten-drinken-roken/overige-voedselveiligheid/risicobeoordelingen/advies-van-buro-over-de-mogelijke-gezondheidseffecten-van-het-voedseladditief-titaniumdioxide-e171

(10)  EFSA statement on the review of the risks related to the exposure to the food additive titanium dioxide (E 171) performed by the French Agency for Food, Environmental and Occupational Health and Safety (ANSES); EFSA Journal 2019; 17(6):5714, https://efsa.onlinelibrary.wiley.com/doi/10.2903/j.efsa.2019.5714

(11)  ‘Carbon Black, Titanium Dioxide, and Talc’, IARC Monographs on the Evaluation of Carcinogenic Risks to Humans, Volume 93, https://publications.iarc.fr/Book-And-Report-Series/Iarc-Monographs-On-The-Identification-Of-Carcinogenic-Hazards-To-Humans/Carbon-Black-Titanium-Dioxide-And-Talc-2010

(12)  ‘Occupational Exposure to Titanium Dioxide’, Current Intelligence Bulletin 63, https://www.cdc.gov/niosh/docs/2011-160/pdfs/2011-160.pdf

(13)  https://you.wemove.eu/campaigns/support-the-french-ban-on-potentially-harmful-food-additive-e171

(14)  At least 340 foodstuffs which used to contain titanium dioxide (E 171) have been reformulated to become ‘E 171 free’ in a very short period of time, according to the (non-exhaustive) Online inventory by Agir pour l’Environnement, https://infonano.agirpourlenvironnement.org/liste-verte/. Smaller producers, who might arguably face greater technological hurdles than bigger operators, have been offered support from their professional organisations to get rid of titanium dioxide (E 171) in their products, according to a 2018 press release by the French Ministry of Economy and Finance, https://www.economie.gouv.fr/files/files/directions_services/dgccrf/presse/communique/2018/CP_Nanoparticules201804.pdf

(15)  https://www.centerforfoodsafety.org/press-releases/4550/top-candy-company-mars-commits-to-phasing-out-harmful-nanoparticles-from-food-products

(16)  Including Altroconsumo in Italy, OCU in Spain, Test-Achats in Belgium and UFC — Que Choisir in France.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/32 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/32

---

P9_TA(2020)0256

Objection to an implementing act: Maximum levels of acrylamide in certain foodstuffs for infants and young children

European Parliament resolution of 8 October 2020 on the draft Commission regulation amending Regulation (EC) No 1881/2006 as regards maximum levels of acrylamide in certain foodstuffs for infants and young children (D067815/03 — 2020/2735(RPS))

(2021/C 395/04)

The European Parliament,

| — | having regard to the draft Commission regulation amending Regulation (EC) No 1881/2006 as regards maximum levels of acrylamide in certain foodstuffs for infants and young children (D067815/03, |
| --- | --- |

—

having regard to the draft Commission regulation amending Regulation (EC) No 1881/2006 as regards maximum levels of acrylamide in certain foodstuffs for infants and young children (D067815/03,

| — | having regard to Council Regulation (EEC) No 315/93 of 8 February 1993 laying down Community procedures for contaminants in food (1), and in particular Article 2(3) thereof, |
| --- | --- |

—

having regard to Council Regulation (EEC) No 315/93 of 8 February 1993 laying down Community procedures for contaminants in food (1), and in particular Article 2(3) thereof,

| — | having regard to Commission Regulation (EU) 2017/2158 of 20 November 2017 establishing mitigation measures and benchmark levels for the reduction of the presence of acrylamide in food (2), |
| --- | --- |

—

having regard to Commission Regulation (EU) 2017/2158 of 20 November 2017 establishing mitigation measures and benchmark levels for the reduction of the presence of acrylamide in food (2),

| — | having regard to the scientific opinion on acrylamide in food adopted by the Panel on Contaminants in the Food Chain (CONTAM Panel) of the European Food Safety Authority (EFSA) on 30 April 2015, and published on 4 June 2015 (3), |
| --- | --- |

—

having regard to the scientific opinion on acrylamide in food adopted by the Panel on Contaminants in the Food Chain (CONTAM Panel) of the European Food Safety Authority (EFSA) on 30 April 2015, and published on 4 June 2015 (3),

| — | having regard to Article 5a(3)(b) of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (4), |
| --- | --- |

—

having regard to Article 5a(3)(b) of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (4),

| — | having regard to Rule 112(2) and (3), and (4)(c) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 112(2) and (3), and (4)(c) of its Rules of Procedure,

| — | having regard to the motion for a resolution of the Committee on the Environment, Public Health and Food Safety, |
| --- | --- |

—

having regard to the motion for a resolution of the Committee on the Environment, Public Health and Food Safety,

General

| A. | whereas acrylamide is a chemical compound present in food that is formed from the naturally present substances free asparagine and sugars during high temperature processing, such as frying, roasting and baking; |
| --- | --- |

A.

whereas acrylamide is a chemical compound present in food that is formed from the naturally present substances free asparagine and sugars during high temperature processing, such as frying, roasting and baking;

| B. | whereas consumers get exposed to acrylamide through industrially-produced food, such as crisps, bread, biscuits and coffee, but also from home cooking, e.g. when toasting bread or cooking fries; |
| --- | --- |

B.

whereas consumers get exposed to acrylamide through industrially-produced food, such as crisps, bread, biscuits and coffee, but also from home cooking, e.g. when toasting bread or cooking fries;

| C. | whereas infants, toddlers and other children are the most exposed age group with a view to their lower body weight and are therefore specifically vulnerable; whereas it is known that children have a higher metabolism because of the larger liver/body weight ratio making it more likely that glycidamide (the metabolite of acrylamide, which forms through biotransformation) can be formed at a higher rate in children, enhancing the possibility of toxicity of acrylamide in children (5); |
| --- | --- |

C.

whereas infants, toddlers and other children are the most exposed age group with a view to their lower body weight and are therefore specifically vulnerable; whereas it is known that children have a higher metabolism because of the larger liver/body weight ratio making it more likely that glycidamide (the metabolite of acrylamide, which forms through biotransformation) can be formed at a higher rate in children, enhancing the possibility of toxicity of acrylamide in children (5);

Safety concerns

| D. | whereas, according to the harmonised classification and labelling (CLP00) approved by the Union, acrylamide is toxic if swallowed, may cause genetic defects, may cause cancer, causes damage to organs through prolonged or repeated exposure, is harmful in contact with skin, causes serious eye irritation, is harmful if inhaled, is suspected of damaging fertility, causes skin irritation and may cause an allergic skin reaction; whereas additionally, the classification provided by companies to the European Chemicals Agency (ECHA) in REACH registrations identifies that this substance is suspected of damaging fertility or the unborn child (6); |
| --- | --- |

D.

whereas, according to the harmonised classification and labelling (CLP00) approved by the Union, acrylamide is toxic if swallowed, may cause genetic defects, may cause cancer, causes damage to organs through prolonged or repeated exposure, is harmful in contact with skin, causes serious eye irritation, is harmful if inhaled, is suspected of damaging fertility, causes skin irritation and may cause an allergic skin reaction; whereas additionally, the classification provided by companies to the European Chemicals Agency (ECHA) in REACH registrations identifies that this substance is suspected of damaging fertility or the unborn child (6);

| E. | whereas beyond that, degeneration of the peripheral nerve and nerve terminals in some brain areas related to the memory, learning and cognitive functions, was observed (7); |
| --- | --- |

E.

whereas beyond that, degeneration of the peripheral nerve and nerve terminals in some brain areas related to the memory, learning and cognitive functions, was observed (7);

| F. | whereas the CONTAM Panel’s scientific opinion of 30 April 2015 on acrylamide in food (8) identified, from all data available, four possible critical endpoints for acrylamide toxicity, i.e. neurotoxicity, effects on male reproduction, developmental toxicity, and carcinogenicity; whereas the CONTAM Panel also noted that acrylamide is a germ cell mutagen and that there are at present no established procedures for risk assessment using this endpoint; whereas the CONTAM Panel more specifically confirmed previous evaluations that acrylamide in food potentially increases the risk of developing cancer for consumers in all age groups; |
| --- | --- |

F.

whereas the CONTAM Panel’s scientific opinion of 30 April 2015 on acrylamide in food (8) identified, from all data available, four possible critical endpoints for acrylamide toxicity, i.e. neurotoxicity, effects on male reproduction, developmental toxicity, and carcinogenicity; whereas the CONTAM Panel also noted that acrylamide is a germ cell mutagen and that there are at present no established procedures for risk assessment using this endpoint; whereas the CONTAM Panel more specifically confirmed previous evaluations that acrylamide in food potentially increases the risk of developing cancer for consumers in all age groups;

| G. | whereas the toxicity of acrylamide had already been recognised in 2002 in a joint FAO/WHO report (9); whereas acrylamide has been classified as a ‘probable human carcinogen’ by the International Agency for Research on Cancer (IARC) (10), as ‘reasonably anticipated to be a human carcinogen’ by the US National Toxicology Program (NTP) (11), and as ‘likely to be carcinogenic to humans’ by the US Environmental Protection Agency (EPA) (12); |
| --- | --- |

G.

whereas the toxicity of acrylamide had already been recognised in 2002 in a joint FAO/WHO report (9); whereas acrylamide has been classified as a ‘probable human carcinogen’ by the International Agency for Research on Cancer (IARC) (10), as ‘reasonably anticipated to be a human carcinogen’ by the US National Toxicology Program (NTP) (11), and as ‘likely to be carcinogenic to humans’ by the US Environmental Protection Agency (EPA) (12);

| H. | whereas endocrine disrupting properties of acrylamide are discussed in several scientific studies (13) and urgently need examination; |
| --- | --- |

H.

whereas endocrine disrupting properties of acrylamide are discussed in several scientific studies (13) and urgently need examination;

Precautionary principle

| I. | whereas Article 191(2) of the Treaty on the Functioning of the European Union (TFEU) sets out the precautionary principle as one of the fundamental principles of the Union; |
| --- | --- |

I.

whereas Article 191(2) of the Treaty on the Functioning of the European Union (TFEU) sets out the precautionary principle as one of the fundamental principles of the Union;

| J. | whereas Article 168(1) TFEU states that ‘a high level of human health protection shall be ensured in the definition and implementation of all Union policies and activities’; |
| --- | --- |

J.

whereas Article 168(1) TFEU states that ‘a high level of human health protection shall be ensured in the definition and implementation of all Union policies and activities’;

Specific legal requirements

| K. | whereas Article 2(1) and (2) of Regulation (EEC) No 315/93 provide that food containing a contaminant in an amount which is unacceptable from the public health viewpoint and in particular at a toxicological level shall not be placed on the market, and that contaminant levels shall be kept as low as can reasonably be achieved by following good practices at all stages of food production; |
| --- | --- |

K.

whereas Article 2(1) and (2) of Regulation (EEC) No 315/93 provide that food containing a contaminant in an amount which is unacceptable from the public health viewpoint and in particular at a toxicological level shall not be placed on the market, and that contaminant levels shall be kept as low as can reasonably be achieved by following good practices at all stages of food production;

| L. | whereas Regulation (EU) 2017/2158 requires food business operators to apply mitigation measures and carry out certain activities to reduce the levels of acrylamide in certain foodstuffs with a view to ensuring that the levels of acrylamide in their products remain below ‘benchmark levels’, which are used to verify the effectiveness of the mitigation measures through sampling and analysis; |
| --- | --- |

L.

whereas Regulation (EU) 2017/2158 requires food business operators to apply mitigation measures and carry out certain activities to reduce the levels of acrylamide in certain foodstuffs with a view to ensuring that the levels of acrylamide in their products remain below ‘benchmark levels’, which are used to verify the effectiveness of the mitigation measures through sampling and analysis;

| M. | whereas the benchmark levels laid down in Regulation (EU) 2017/2158 have applied since April 2018, and are to be reviewed by the Commission every three years and the first time within three years following the entry into application of that Regulation, with the aim to set lower levels (14); |
| --- | --- |

M.

whereas the benchmark levels laid down in Regulation (EU) 2017/2158 have applied since April 2018, and are to be reviewed by the Commission every three years and the first time within three years following the entry into application of that Regulation, with the aim to set lower levels (14);

| N. | whereas benchmark levels are missing for several product categories, such as vegetable crisps, croquettes, or rice crackers, some of which have been proven to contain high levels of acrylamide; whereas Commission Recommendation (EU) 2019/1888 (15) lays down a non-exhaustive list of food categories that should be monitored regularly for the presence of acrylamide; |
| --- | --- |

N.

whereas benchmark levels are missing for several product categories, such as vegetable crisps, croquettes, or rice crackers, some of which have been proven to contain high levels of acrylamide; whereas Commission Recommendation (EU) 2019/1888 (15) lays down a non-exhaustive list of food categories that should be monitored regularly for the presence of acrylamide;

| O. | whereas, in accordance with Article 2(3) of Regulation (EEC) No 315/93, the Commission may where necessary establish the maximum tolerances for specific contaminants, in order to protect public health; whereas no maximum levels for acrylamide in food have yet been set; whereas Recital 15 of Regulation (EU) 2017/2158 indicates that complementary to the mitigation measures, the setting of maximum levels for acrylamide in certain foods should be considered; |
| --- | --- |

O.

whereas, in accordance with Article 2(3) of Regulation (EEC) No 315/93, the Commission may where necessary establish the maximum tolerances for specific contaminants, in order to protect public health; whereas no maximum levels for acrylamide in food have yet been set; whereas Recital 15 of Regulation (EU) 2017/2158 indicates that complementary to the mitigation measures, the setting of maximum levels for acrylamide in certain foods should be considered;

The draft Commission regulation

| P. | whereas the draft Commission regulation acknowledges the importance of levels of acrylamide in food being as low as reasonably achievable; |
| --- | --- |

P.

whereas the draft Commission regulation acknowledges the importance of levels of acrylamide in food being as low as reasonably achievable;

| Q. | whereas the draft Commission regulation proposes to set maximum levels for two very specific categories of food only, namely for ‘biscuits and rusks for infants and young children’ (150 μg/kg, which corresponds to the current benchmark level) and for ‘baby foods, processed cereal based foods for infants and young children excluding biscuits and rusks’ (50 μg/kg, which is even 10 μg/kg higher than the current benchmark level of 40 μg/kg); |
| --- | --- |

Q.

whereas the draft Commission regulation proposes to set maximum levels for two very specific categories of food only, namely for ‘biscuits and rusks for infants and young children’ (150 μg/kg, which corresponds to the current benchmark level) and for ‘baby foods, processed cereal based foods for infants and young children excluding biscuits and rusks’ (50 μg/kg, which is even 10 μg/kg higher than the current benchmark level of 40 μg/kg);

| R. | whereas the occurrence data the Commission based its draft regulation upon stems from the period from 2015 to 2018; whereas, if Regulation (EU) 2017/2158 is to have an effect on acrylamide levels in foods, it can be reasonably expected that food manufacturers should have at least reached by now the benchmark value established three years ago; |
| --- | --- |

R.

whereas the occurrence data the Commission based its draft regulation upon stems from the period from 2015 to 2018; whereas, if Regulation (EU) 2017/2158 is to have an effect on acrylamide levels in foods, it can be reasonably expected that food manufacturers should have at least reached by now the benchmark value established three years ago;

Market situation and assessment of the draft Commission regulation

| S. | whereas research carried out in autumn 2018 by ten consumer organisations across Europe (16) has shown that a range of products which do not fall under the two categories regulated in the draft Commission regulation, such as biscuits and wafers, are often consumed by children below three years of age; and some of these products are obviously marketed to children (i.e. packaging design with cartoon characters that appeal to children); whereas a similar situation can be supposed for products such as crackers or breakfast cereals; |
| --- | --- |

S.

whereas research carried out in autumn 2018 by ten consumer organisations across Europe (16) has shown that a range of products which do not fall under the two categories regulated in the draft Commission regulation, such as biscuits and wafers, are often consumed by children below three years of age; and some of these products are obviously marketed to children (i.e. packaging design with cartoon characters that appeal to children); whereas a similar situation can be supposed for products such as crackers or breakfast cereals;

| T. | whereas the benchmark level for ‘biscuits and wafers’ (350 μg/kg) and the benchmark level for ‘biscuits and rusks for infants and young children’ (150 μg/kg) differ significantly, without the parents being made aware of the difference in terms of the sought maximum acrylamide content; |
| --- | --- |

T.

whereas the benchmark level for ‘biscuits and wafers’ (350 μg/kg) and the benchmark level for ‘biscuits and rusks for infants and young children’ (150 μg/kg) differ significantly, without the parents being made aware of the difference in terms of the sought maximum acrylamide content;

| U. | whereas it was also found that for biscuits and wafers, a third of the products tested were at or above the benchmark level, and out of the biscuits and wafers identified as ‘frequently consumed by children under three’ close to two-thirds would not have passed the benchmark set for the category ‘biscuits and rusks for infants and young children’; |
| --- | --- |

U.

whereas it was also found that for biscuits and wafers, a third of the products tested were at or above the benchmark level, and out of the biscuits and wafers identified as ‘frequently consumed by children under three’ close to two-thirds would not have passed the benchmark set for the category ‘biscuits and rusks for infants and young children’;

| V. | whereas it is undisputed that the occurrence of acrylamide in food can be minimised by applying appropriate mitigation measures (17); whereas, across all food categories, it has been proven possible to produce products with a low acrylamide content (18); |
| --- | --- |

V.

whereas it is undisputed that the occurrence of acrylamide in food can be minimised by applying appropriate mitigation measures (17); whereas, across all food categories, it has been proven possible to produce products with a low acrylamide content (18);

| W. | whereas, with regard to the draft Commission regulation, both data from consumer research (19) in 2018 and occurrence data stemming from the EFSA database from the period 2015 to 2018 show that lower levels than the proposed 150 μg/kg and 50 μg/kg have been easily achieved by a very big majority of producers in both food categories; whereas it can be assumed that almost all products can meet those levels today; whereas stricter levels are therefore necessary in order to set an incentive for further reduction; |
| --- | --- |

W.

whereas, with regard to the draft Commission regulation, both data from consumer research (19) in 2018 and occurrence data stemming from the EFSA database from the period 2015 to 2018 show that lower levels than the proposed 150 μg/kg and 50 μg/kg have been easily achieved by a very big majority of producers in both food categories; whereas it can be assumed that almost all products can meet those levels today; whereas stricter levels are therefore necessary in order to set an incentive for further reduction;

| X. | whereas the setting of maximum levels clearly facilitates enforcement of rules regarding acrylamide by Member States; whereas maximum levels must still nevertheless be set in accordance with the ALARA (‘As Low As Reasonably Achievable’) principle as laid down in Article 2 of Regulation (EEC) No 315/93; |
| --- | --- |

X.

whereas the setting of maximum levels clearly facilitates enforcement of rules regarding acrylamide by Member States; whereas maximum levels must still nevertheless be set in accordance with the ALARA (‘As Low As Reasonably Achievable’) principle as laid down in Article 2 of Regulation (EEC) No 315/93;

| Y. | whereas, in conclusion, the levels proposed in the draft Commission regulation are already easily met by most products on the market, and lower levels have been proven to be achievable without the need for big efforts; |
| --- | --- |

Y.

whereas, in conclusion, the levels proposed in the draft Commission regulation are already easily met by most products on the market, and lower levels have been proven to be achievable without the need for big efforts;

Further considerations

| Z. | whereas more research could help to understand the reasons for the high variability of acrylamide levels within food categories and identify strategies aiming at minimising the formation of acrylamide; |
| --- | --- |

Z.

whereas more research could help to understand the reasons for the high variability of acrylamide levels within food categories and identify strategies aiming at minimising the formation of acrylamide;

| AA. | whereas monitoring of the effectiveness of the rules regarding acrylamide is crucial; whereas this implies that Member States carry out effective and frequent enough controls and collect data on acrylamide occurrence; |
| --- | --- |

AA.

whereas monitoring of the effectiveness of the rules regarding acrylamide is crucial; whereas this implies that Member States carry out effective and frequent enough controls and collect data on acrylamide occurrence;

| AB. | whereas public information campaigns can help raise consumers’ awareness of products with potentially higher acrylamide contents and inform them how to limit acrylamide exposure when cooking; |
| --- | --- |

AB.

whereas public information campaigns can help raise consumers’ awareness of products with potentially higher acrylamide contents and inform them how to limit acrylamide exposure when cooking;

| 1. | Opposes adoption of the draft Commission regulation; |
| --- | --- |

1.

| 2. | Considers that the draft Commission regulation is not compatible with the aim and content of Regulation (EEC) No 315/93; |
| --- | --- |

2.

| 3. | Considers that continuing to allow high levels of acrylamide in food may have adverse effects on the health of European consumers; therefore considers it of outermost importance to lower acrylamide levels in foods; |
| --- | --- |

3.

| 4. | Considers that the proposed maximum level for acrylamide in the food category of ‘baby foods, processed cereal based foods for infants and young children excluding biscuits and rusks’ should be set below, and certainly not above, the current benchmark level of 40 μg/kg; |
| --- | --- |

4.

| 5. | Considers that the proposed maximum level for acrylamide in the food category of ‘biscuits and rusks for infants and young children’ should be set clearly below the current benchmark level of 150 μg/kg; |
| --- | --- |

5.

| 6. | Asks the Commission to set strict maximum levels not only for the two product categories proposed in the draft Commission regulation, but also for other product categories, and most urgently for biscuits and rusks that do not fall under the specific category of ‘biscuits and rusks for infants and young children’; |
| --- | --- |

6.

| 7. | Is looking forward to the revision of benchmark levels by April 2021 with a view to lowering them; insists that benchmark levels must reflect the continuous reduction of the presence of acrylamide in food, and be oriented on the best performers, in order to incentivise additional efforts by manufacturers; |
| --- | --- |

7.

| 8. | Welcomes Commission Recommendation (EU) 2019/1888 of 7 November 2019 on the monitoring of the presence of acrylamide in certain foods; insists that benchmark levels (possibly to be followed by maximum levels) need to be set quickly for product categories that turn out to contain high levels of acrylamide; |
| --- | --- |

8.

| 9. | Asks the Commission and Member States to intensify research on the formation of acrylamide in foods with a view to identifying strategies aiming at minimising the formation of acrylamide; requests that the Commission and Member States stimulate research on possible endocrine disrupting properties of acrylamide and glycidamide; |
| --- | --- |

9.

| 10. | Calls upon Member States to step up their food control capacities with a view to monitoring the effectiveness of the rules regarding acrylamide and collect, publish and pass data on acrylamide occurrence to EFSA; |
| --- | --- |

10.

| 11. | Asks the Commission and Member States to inform the public about product categories with potentially higher acrylamide contents and about strategies on how to limit acrylamide exposure when cooking; |
| --- | --- |

11.

| 12. | Calls on the Commission to withdraw the draft regulation and submit a new one to the committee; |
| --- | --- |

12.

| 13. | Instructs its President to forward this resolution to the Council and the Commission, and to the governments and parliaments of the Member States. |
| --- | --- |

13.

---

(1)  OJ L 37, 13.2.1993, p. 1.

(2)  OJ L 304, 21.11.2017, p. 24.

(3)  EFSA Journal 2015; 13(6):4104, http://www.efsa.europa.eu/en/efsajournal/pub/4104

(4)  OJ L 184, 17.7.1999, p. 23.

(5)  See Erkekoğlu, P., Baydar, T., ‘Toxicity of acrylamide and evaluation of its exposure in baby foods’, Nutrition Research Reviews, Volume 23, Issue 2, December 2010, pp. 323-333, https://doi.org/10.1017/S0954422410000211

(6)  ECHA Substance Infocard for Acrylamide, https://echa.europa.eu/de/substance-information/-/substanceinfo/100.001.067?_disssubsinfo_WAR_disssubsinfoportlet_backURL=https%3A%2F%2Fecha.europa.eu%2Fhome%3Fp_p_id%3Ddisssimplesearchhomepage_WAR_disssearchportlet%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26p_p_col_id%3Dcolumn-1%26p_p_col_count%3D2%26_disssimplesearchhomepage_WAR_disssearchportlet_sessionCriteriaId%3D. See also ECHA Summary of Classification and Labelling, https://echa.europa.eu/de/information-on-chemicals/cl-inventory-database/-/discli/details/104230: carcinogenic 1B (presumed), mutagenic 1B (presumed), toxic for reproduction 2 (suspected), skin sensitising 1, and STOT 1 (specific target organ toxicity — affecting the nervous system with repeated exposure).

(7)  Summary and conclusions of the sixty-fourth meeting of the Joint FAO/WHO Expert Committee on Food Additives (JECFA), 8-17 February 2005, http://www.fao.org/3/a-at877e.pdf. See also Matoso, V., Bargi-Souza, P., Ivanski, F., Romano, M.A., Romano, R.M., ‘Acrylamide: A review about its toxic effects in the light of Developmental Origin of Health and Disease (DOHaD) concept’, Food Chemistry, 15 June 2019; 283:422-430, https://pubmed.ncbi.nlm.nih.gov/30722893/

(8)  EFSA Journal 2015;13(6):4104, http://www.efsa.europa.eu/en/efsajournal/pub/4104

(9)  Report of a Joint FAO/WHO Consultation, ‘Health Implications of Acrylamide in Food’, 25-27 June 2002 https://apps.who.int/iris/bitstream/handle/10665/42563/9241562188.pdf?sequence=1

(10)  https://publications.iarc.fr/Book-And-Report-Series/Iarc-Monographs-On-The-Identification-Of-Carcinogenic-Hazards-To-Humans/Some-Industrial-Chemicals-1994, ‘IARC Monographs on the Evaluation of Carcinogenic Risks to Humans’, Some Industrial Chemicals, IARC, Lyon, France, 1994. See also Zhivagui, M., Ng, A.W.T., Ardin, M., et al., ‘Experimental and pan-cancer genome analyses reveal widespread contribution of acrylamide exposure to carcinogenesis in humans’, Genome Research, 2019; 29(4):521-531, https://www.iarc.fr/wp-content/uploads/2019/03/pr267_E.pdf

(11)  Report on Carcinogens, Acrylamide, National Toxicology Program, Department of Health and Human Services, Fourteenth Edition 2016, https://ntp.niehs.nih.gov/ntp/roc/content/profiles/acrylamide.pdf

(12)  Toxicological review of Acrylamide (CAS No. 79-06-1), March 2010, U.S. Environmental Protection Agency, Washington, DC, https://nepis.epa.gov/Exe/ZyPDF.cgi/P1006QL0.PDF?Dockey=P1006QL0.PDF

(13)  Matoso, V., Bargi-Souza, P., Ivanski, F., Roman, M.A., Romana, R.M., ‘Acrylamide: A review about its toxic effects in the light of Developmental Origin of Health and Disease (DOHaD) concept’, Food Chemistry 283 (2019) 422-430, https://www2.unicentro.br/ppgvet/files/2019/11/3-Acrylamide-A-review-about-its-toxic-effects-in-the-light-of-Developmental-Origin-of-Health-and-Disease-DOHaD-concept.pdf?x26325, Kassotis, C.D., et al., ‘Endocrine-Disrupting Activity of Hydraulic Fracturing Chemicals and Adverse Health Outcomes After Prenatal Exposure in Male Mice’, Endocrinology, December 2015, 156(12):4458–4473, https://academic.oup.com/endo/article/156/12/4458/2422671, Hamdy, S.M., Bakeer, H.M., Eskander, E.F., Sayed, O.N., ‘Effect of acrylamide on some hormones and endocrine tissues in male rats’, Human & Experimental Toxicology 2012, 31(5):, 483-91, https://journals.sagepub.com/doi/10.1177/0960327111417267

(14)  Article 5 and Recital 11 of Regulation (EU) 2017/2158.

(15)  Commission Recommendation (EU) 2019/1888 of 7 November 2019 on the monitoring of the presence of acrylamide in certain foods (OJ L 290, 11.11.2019, p. 31).

(16)  https://www.beuc.eu/publications/beuc-x-2019-010_more_efforts_needed_to_protect_consumers_from_acrylamide_in_food.pdf

(17)  See Regulation (EU) 2017/2158.

(18)  https://www.beuc.eu/publications/beuc-x-2019-010_more_efforts_needed_to_protect_consumers_from_acrylamide_in_food.pdf

(19)  https://www.beuc.eu/publications/beuc-x-2019-010_more_efforts_needed_to_protect_consumers_from_acrylamide_in_food.pdf

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/37 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/37

---

P9_TA(2020)0257

The European Forest Strategy — The Way Forward

European Parliament resolution of 8 October 2020 on the European Forest Strategy — The Way Forward (2019/2157(INI))

(2021/C 395/05)

The European Parliament,

| — | having regard to the Commission communication of 11 December 2019 on ‘The European Green Deal’ (COM(2019)0640), to the Commission communication of 20 May 2020 on the EU Biodiversity Strategy for 2030 (COM(2020)0380), and to its resolutions of 15 January 2020 on the European Green Deal (1) and 16 January 2020 on the 15th meeting of the Conference of Parties (COP15) to the Convention on Biological Diversity (2), |
| --- | --- |

—

having regard to the Commission communication of 11 December 2019 on ‘The European Green Deal’ (COM(2019)0640), to the Commission communication of 20 May 2020 on the EU Biodiversity Strategy for 2030 (COM(2020)0380), and to its resolutions of 15 January 2020 on the European Green Deal (1) and 16 January 2020 on the 15th meeting of the Conference of Parties (COP15) to the Convention on Biological Diversity (2),

| — | having regard to the New York Declaration on Forests, ratified on 23 June 2014 by the European Union, |
| --- | --- |

—

having regard to the New York Declaration on Forests, ratified on 23 June 2014 by the European Union,

| — | having regard to the Commission report to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 7 December 2018 entitled ‘Progress in the implementation of the EU forest strategy — “A new EU Forest Strategy: for forests and the forest-based sector”’ (COM(2018)0811), |
| --- | --- |

—

having regard to the Commission report to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 7 December 2018 entitled ‘Progress in the implementation of the EU forest strategy — “A new EU Forest Strategy: for forests and the forest-based sector”’ (COM(2018)0811),

| — | having regard to its resolution of 28 April 2015 on “A new EU Forest Strategy: for forests and the forest-based sector” (3), |
| --- | --- |

—

having regard to its resolution of 28 April 2015 on “A new EU Forest Strategy: for forests and the forest-based sector” (3),

| — | having regard to the Commission communication to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 23 July 2019 entitled “Stepping up EU Action to Protect and Restore the World’s Forests” (COM(2019)0352), |
| --- | --- |

—

having regard to the Commission communication to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 23 July 2019 entitled “Stepping up EU Action to Protect and Restore the World’s Forests” (COM(2019)0352),

| — | having regard to the Council conclusions of 15 April 2019 on the progress on the implementation of the EU Forest Strategy and on a new strategic framework for forests (08609/2019), |
| --- | --- |

—

having regard to the Council conclusions of 15 April 2019 on the progress on the implementation of the EU Forest Strategy and on a new strategic framework for forests (08609/2019),

| — | having regard to Regulation (EU) No 1143/2014 of the European Parliament and the Council of 22 October 2014 on the prevention and management of the introduction and spread of invasive alien species (4) and the consecutive Implementing regulations with updates of the List of invasive species, among which also tree species, |
| --- | --- |

—

having regard to Regulation (EU) No 1143/2014 of the European Parliament and the Council of 22 October 2014 on the prevention and management of the introduction and spread of invasive alien species (4) and the consecutive Implementing regulations with updates of the List of invasive species, among which also tree species,

| — | having regard to the opinion of the European Economic and Social Committee of 30 October 2019 on the report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 7 December 2018 entitled “Progress in the implementation of the EU Forest Strategy — “A new EU Forest Strategy: for forests and the forest sector”’, |
| --- | --- |

—

having regard to the opinion of the European Economic and Social Committee of 30 October 2019 on the report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 7 December 2018 entitled “Progress in the implementation of the EU Forest Strategy — “A new EU Forest Strategy: for forests and the forest sector”’,

| — | having regard to the Global Assessment on Biodiversity and Ecosystem Services published by the Intergovernmental Science Policy Platform on Biodiversity and Ecosystem Services (IBPES) on 31 May 2019, |
| --- | --- |

—

having regard to the Global Assessment on Biodiversity and Ecosystem Services published by the Intergovernmental Science Policy Platform on Biodiversity and Ecosystem Services (IBPES) on 31 May 2019,

| — | having regard to the report of the European Environment Agency on “The European environment — state and outlook 2020: knowledge for transition to a sustainable Europe”, published on 4 December 2019, |
| --- | --- |

—

having regard to the report of the European Environment Agency on “The European environment — state and outlook 2020: knowledge for transition to a sustainable Europe”, published on 4 December 2019,

| — | having regard to the opinion of the Committee of the Regions of 11 April 2019 on the implementation of the EU Forest Strategy, |
| --- | --- |

—

having regard to the opinion of the Committee of the Regions of 11 April 2019 on the implementation of the EU Forest Strategy,

| — | having regard to the Mid-Term Review of the Biodiversity Strategy to 2020, |
| --- | --- |

—

having regard to the Mid-Term Review of the Biodiversity Strategy to 2020,

| — | having regard to the updated EU Bioeconomy Strategy, |
| --- | --- |

—

having regard to the updated EU Bioeconomy Strategy,

| — | having regard to the 2050 Climate Strategy, |
| --- | --- |

—

having regard to the 2050 Climate Strategy,

| — | having regard to the Council conclusions of 29 November 2019 on the updated EU Bioeconomy Strategy (5), |
| --- | --- |

—

having regard to the Council conclusions of 29 November 2019 on the updated EU Bioeconomy Strategy (5),

| — | having regard to the Commission communication of 28 November 2018 entitled “A Clean Planet for All: a European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy” (COM(2018)0773), |
| --- | --- |

—

having regard to the Commission communication of 28 November 2018 entitled “A Clean Planet for All: a European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy” (COM(2018)0773),

| — | having regard to the opinion of the Committee of the Regions of 16 May 2018 on the mid-term review of the EU Forest Strategy (6), |
| --- | --- |

—

having regard to the opinion of the Committee of the Regions of 16 May 2018 on the mid-term review of the EU Forest Strategy (6),

| — | having regard to the Europe 2020 strategy, including the Innovation Union and Resource-Efficient Europe initiatives, |
| --- | --- |

—

having regard to the Europe 2020 strategy, including the Innovation Union and Resource-Efficient Europe initiatives,

| — | having regard to Rule 54 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 54 of its Rules of Procedure,

| — | having regard to the opinions of the Committee on the Environment, Public Health and Food Safety and the Committee on Industry, Research and Energy, |
| --- | --- |

—

having regard to the opinions of the Committee on the Environment, Public Health and Food Safety and the Committee on Industry, Research and Energy,

| — | having regard to the report of the Committee on Agriculture and Rural Development (A9-0154/2020), |
| --- | --- |

—

having regard to the report of the Committee on Agriculture and Rural Development (A9-0154/2020),

| — | having regard to the responsibilities of the EU Member States under the Convention on Biological Diversity (CBD), the United Nations Framework Convention on Climate Change (UNFCC) and the United Nations Convention to Combat Desertification (UNCCD), |
| --- | --- |

—

having regard to the responsibilities of the EU Member States under the Convention on Biological Diversity (CBD), the United Nations Framework Convention on Climate Change (UNFCC) and the United Nations Convention to Combat Desertification (UNCCD),

| A. | whereas the EU’s internal and international commitments to, for example, the European Green Deal, the UN Sustainable Development Goals (SDGs), the Kyoto Protocol, the Paris Agreement and the creation of a zero-emission society, will be impossible to achieve without the climate benefits and other ecosystem services provided by forests and the forest-based sector; |
| --- | --- |

A.

whereas the EU’s internal and international commitments to, for example, the European Green Deal, the UN Sustainable Development Goals (SDGs), the Kyoto Protocol, the Paris Agreement and the creation of a zero-emission society, will be impossible to achieve without the climate benefits and other ecosystem services provided by forests and the forest-based sector;

| B. | whereas the Treaty on the Functioning of the European Union makes no reference to a common EU forest policy, and responsibility for forests lies with the Member States; whereas, however, the EU has a history of contributing, through its policies and guidelines, including Article 4 TFEU as regards energy, environment and agriculture, to sustainable forest management (SFM) and the Member States” decisions on forests; |
| --- | --- |

B.

whereas the Treaty on the Functioning of the European Union makes no reference to a common EU forest policy, and responsibility for forests lies with the Member States; whereas, however, the EU has a history of contributing, through its policies and guidelines, including Article 4 TFEU as regards energy, environment and agriculture, to sustainable forest management (SFM) and the Member States” decisions on forests;

| C. | whereas forests and the entire forest-based value chain are fundamental to the further development of the circular bioeconomy, as they provide jobs, ensure economic welfare in rural and urban areas, deliver climate change mitigation and adaptation services, offer health-related benefits, protect the biodiversity and prospects of mountainous, island and rural regions and combat desertification; |
| --- | --- |

C.

whereas forests and the entire forest-based value chain are fundamental to the further development of the circular bioeconomy, as they provide jobs, ensure economic welfare in rural and urban areas, deliver climate change mitigation and adaptation services, offer health-related benefits, protect the biodiversity and prospects of mountainous, island and rural regions and combat desertification;

| D. | whereas properly funded high-quality research, innovation, collection of information, maintenance and development of databases, best practice and knowledge sharing are of the utmost importance for the future of the EU’s multifunctional forests and for the entire forest-based value-chain, in light of the increasing demands being placed upon them and the need to tackle the multiple opportunities and challenges facing society; |
| --- | --- |

D.

whereas properly funded high-quality research, innovation, collection of information, maintenance and development of databases, best practice and knowledge sharing are of the utmost importance for the future of the EU’s multifunctional forests and for the entire forest-based value-chain, in light of the increasing demands being placed upon them and the need to tackle the multiple opportunities and challenges facing society;

| E. | whereas forests are part of our natural heritage, which we must preserve and maintain, and whereas in order for this heritage to prosper and to be a source of biodiversity and an economic, tourism and social resource it is essential that it be well managed; |
| --- | --- |

E.

whereas forests are part of our natural heritage, which we must preserve and maintain, and whereas in order for this heritage to prosper and to be a source of biodiversity and an economic, tourism and social resource it is essential that it be well managed;

| F. | whereas the Rural Development Fund, in the framework of the CAP, has provided tools and resources to support the forestry sector and should continue to do in the post-2020 CAP, through a strong focus on SFM; |
| --- | --- |

F.

whereas the Rural Development Fund, in the framework of the CAP, has provided tools and resources to support the forestry sector and should continue to do in the post-2020 CAP, through a strong focus on SFM;

| G. | whereas there are 16 million private forest owners in the EU, who own about 60 % of the EU’s forests; whereas the average size of privately-owned forests is 13 ha, while about two-thirds of private forest owners own less than 3 ha of forest; |
| --- | --- |

G.

whereas there are 16 million private forest owners in the EU, who own about 60 % of the EU’s forests; whereas the average size of privately-owned forests is 13 ha, while about two-thirds of private forest owners own less than 3 ha of forest;

| H. | whereas sustainably managed forests are enormously important in guaranteeing jobs in rural areas, representing a benefit for human health while at the same time making a vital contribution to the environment and biodiversity; |
| --- | --- |

H.

whereas sustainably managed forests are enormously important in guaranteeing jobs in rural areas, representing a benefit for human health while at the same time making a vital contribution to the environment and biodiversity;

| I. | whereas climate change mitigation and adaptation measures in forests are interlinked inasmuch as aspects must be balanced and synergies between them encouraged, especially within Member States’ Adaptation Strategies and Plans; |
| --- | --- |

I.

whereas climate change mitigation and adaptation measures in forests are interlinked inasmuch as aspects must be balanced and synergies between them encouraged, especially within Member States’ Adaptation Strategies and Plans;

| J. | whereas European forests and their situations differ and therefore need to be handled differently, but always with a view to improving their economic, social and environmental functions; |
| --- | --- |

J.

whereas European forests and their situations differ and therefore need to be handled differently, but always with a view to improving their economic, social and environmental functions;

| K. | whereas outermost regions contain very rich reservoirs of biodiversity and it is fundamental to preserve them; |
| --- | --- |

K.

whereas outermost regions contain very rich reservoirs of biodiversity and it is fundamental to preserve them;

| L. | whereas biodiversity loss in forests has significant environmental, economic and social consequences; |
| --- | --- |

L.

whereas biodiversity loss in forests has significant environmental, economic and social consequences;

| M. | whereas soil quality plays a crucial role in the provision of ecosystem services such as water filtration and storage, and hence flood and drought protection, CO2 sequestration, biodiversity and the growth of biomass; whereas the improvement of soil quality, for instance in some regions by converting coniferous forest to permanent deciduous forest, is an economically challenging process that takes decades; |
| --- | --- |

M.

whereas soil quality plays a crucial role in the provision of ecosystem services such as water filtration and storage, and hence flood and drought protection, CO2 sequestration, biodiversity and the growth of biomass; whereas the improvement of soil quality, for instance in some regions by converting coniferous forest to permanent deciduous forest, is an economically challenging process that takes decades;

| N. | whereas the crucial role of SFM should be promoted to European society, which is increasingly disconnected from forests and forestry, underlining the multiple benefits forests provide from the economic, social and environmental, and cultural and historical viewpoints; |
| --- | --- |

N.

whereas the crucial role of SFM should be promoted to European society, which is increasingly disconnected from forests and forestry, underlining the multiple benefits forests provide from the economic, social and environmental, and cultural and historical viewpoints;

| O. | whereas, in addition to carbon sequestration, forests have a beneficial impact on the climate, the atmosphere, the preservation of biodiversity and river and waterway management, protect soil from erosion by water and wind, and possess other useful natural properties; |
| --- | --- |

O.

whereas, in addition to carbon sequestration, forests have a beneficial impact on the climate, the atmosphere, the preservation of biodiversity and river and waterway management, protect soil from erosion by water and wind, and possess other useful natural properties;

| P. | whereas almost 23 % of European forests are to be found in Natura 2000 sites, with the share in some Member States exceeding 50 %, and almost half of the natural habitats in Natura 2000 areas are forests; |
| --- | --- |

P.

whereas almost 23 % of European forests are to be found in Natura 2000 sites, with the share in some Member States exceeding 50 %, and almost half of the natural habitats in Natura 2000 areas are forests;

| Q. | whereas forests can both be sources of primary forest products such as wood, and provide valuable secondary products such as mushrooms, truffles, herbs, honey and berries, which are very important for economic activities in some regions of the Union; |
| --- | --- |

Q.

whereas forests can both be sources of primary forest products such as wood, and provide valuable secondary products such as mushrooms, truffles, herbs, honey and berries, which are very important for economic activities in some regions of the Union;

| R. | whereas European forests play an important role in improving the environment, developing the economy, meeting the Member States’ needs for wood products and enhancing the wellbeing of the population; |
| --- | --- |

R.

whereas European forests play an important role in improving the environment, developing the economy, meeting the Member States’ needs for wood products and enhancing the wellbeing of the population;

| S. | whereas agroforestry, defined as land use systems in which trees are grown in combination with agriculture on the same land unit, is a suite of land management systems which boost overall productivity, generate more biomass, maintain and restore soils, and provide a number of valuable ecosystem services; |
| --- | --- |

S.

whereas agroforestry, defined as land use systems in which trees are grown in combination with agriculture on the same land unit, is a suite of land management systems which boost overall productivity, generate more biomass, maintain and restore soils, and provide a number of valuable ecosystem services;

| T. | whereas the multifunctional role of forests, the considerable time they take to become established and the importance of ensuring a good diversity of species make sustainable use and the preservation and multiplication of forest resources an important European task; |
| --- | --- |

T.

whereas the multifunctional role of forests, the considerable time they take to become established and the importance of ensuring a good diversity of species make sustainable use and the preservation and multiplication of forest resources an important European task;

| U. | whereas socially and environmentally responsible hunting also plays an important role in forests and semi-forest regions, by controlling numbers of game or the spread of related diseases, such as African swine fever; |
| --- | --- |

U.

whereas socially and environmentally responsible hunting also plays an important role in forests and semi-forest regions, by controlling numbers of game or the spread of related diseases, such as African swine fever;

| V. | whereas forests play a crucial role in the fight against soil erosion and the desertification of landmasses; whereas studies show that trees in parks and city environment have a positive effect in terms of maintaining lower temperatures as compared to treeless areas; |
| --- | --- |

V.

whereas forests play a crucial role in the fight against soil erosion and the desertification of landmasses; whereas studies show that trees in parks and city environment have a positive effect in terms of maintaining lower temperatures as compared to treeless areas;

| W. | whereas in the current programming period (2014-2020) there are measures in the CAP targeted at helping economic actors in building capacities with regard to forestry management; |
| --- | --- |

W.

whereas in the current programming period (2014-2020) there are measures in the CAP targeted at helping economic actors in building capacities with regard to forestry management;

| X. | whereas some forestry regions have been massively invaded by pests and insects such as woodworm and various fungi; whereas natural populations of chestnut forests have been massively invaded by Cryphonectria parasitica, which causes a serious threat to the survival of these populations, but also in the long run threatens related human-led activities, such as the production and collection of chestnuts; |
| --- | --- |

X.

whereas some forestry regions have been massively invaded by pests and insects such as woodworm and various fungi; whereas natural populations of chestnut forests have been massively invaded by Cryphonectria parasitica, which causes a serious threat to the survival of these populations, but also in the long run threatens related human-led activities, such as the production and collection of chestnuts;

| Y. | whereas the data available on forests at EU level is incomplete and of varying quality, thus hampering the capacity of coordination at EU level concerning forest management; |
| --- | --- |

Y.

whereas the data available on forests at EU level is incomplete and of varying quality, thus hampering the capacity of coordination at EU level concerning forest management;

| Z. | whereas illegal logging is ongoing also in the EU; |
| --- | --- |

Z.

whereas illegal logging is ongoing also in the EU;

The past — revisiting recent implementation successes and challenges

| 1. | Welcomes the publication of the Commission report entitled ‘Progress in the implementation of the EU Forest Strategy — “A new EU Forest Strategy: for forests and the forest sector”’ (COM(2018)0811); |
| --- | --- |

1.

| 2. | Welcomes the actions taken by the Member States and the Commission to meet the objectives of the EU Forest Strategy and the involvement of the Standing Forestry Committee, the Civil Dialogue Group on Forestry and Cork, the Expert Group on Forest Fires, the Expert Group on Forest-based Industries and Sectorally-related Issues, and relevant stakeholders in the Forest Multiannual Implementation Plan (Forest MAP); |
| --- | --- |

2.

| 3. | Recognises that the Commission’s 2018 report on progress of the implementation of the current EU Forest Strategy states that the strategy has been useful as a coordination tool and that, generally speaking, the “eight plus one” priority areas of the strategy have been implemented with relatively few impediments, with the exception of major challenges to be addressed through biodiversity policy and ongoing challenges in the areas “What forests do we have and how are they changing?”, specifically concerning the public perception and information on the forestry sector, and “Fostering coordination and communication”, specifically concerning forest-related policies; |
| --- | --- |

3.

| 4. | Highlights the fact that a definition of SFM was internationally agreed as part of the pan-European FOREST EUROPE process; notes that the definition has been incorporated into national legislation and into the voluntary systems, such as forest certifications, that are in place in the Member States; |
| --- | --- |

4.

| 5. | Stresses that the promotion of SFM in the EU, as part of the EU Forest Strategy and the rural development measures implemented under the Common Agricultural Policy (CAP), has had a broadly positive impact on forests and forest conditions and on livelihoods in rural areas, as well as on the biodiversity of forests in the EU, and has enhanced the climate benefits offered by the forest-based sector; notes, however, that there is still a need to strengthen SFM in a balanced manner in order to ensure that forests’ ecological status improves, to enhance the health and resilience of ecosystems and ensure that they are better able to adapt to changing climate conditions, to reduce the risks and impacts of natural disturbances, and to safeguard opportunities for present and future generations to manage forests, for example in such a way that forest owners' and SMEs’ objectives are realised, and to improve the quality of existing forests and woodland; considers that the EU forest strategy should include adequate instruments in this regard; points out that the Member States are obliged to undertake SFM in exemplary fashion; considers that forest management models should incorporate environmental, societal and economic sustainability, which means that the stewardship and use of forests and forest lands are such that they maintain their biodiversity, productivity, regeneration capacity, vitality and potential to fulfil, now and in the future, relevant ecological, economic and social functions at local, national and global levels and do not cause damage to other ecosystems; stresses that acknowledging and safeguarding property rights is key to achieving a long-term commitment to SFM; notes that safeguarding and sustainably managing our forests is a core part of our general wellbeing, as they are a home for public-interest activities in the field of leisure and health as well as education, and recognises that SFM promotes the protection of European forest biodiversity; calls for the protection of primary forests with preserved structure, species richness and adequate area where such forests still persist; notes that there is no EU definition of old growth forests and calls on the Commission to introduce a definition, to be prepared in the Standing Forestry Committee, in the process of drafting the future EU Forest Strategy; stresses that there could be diverging views on the CO2 absorption capacities of different kinds of forests, and therefore believes the new EU forest strategy should promote sustainable forest management; regrets the unsustainable practices and illegal logging taking place in some Member States despite the EU Timber Regulation, and further calls on the Member States to do more to put an end to it, and also to improve or strengthen their national legislation where necessary; urges the Commission and the Member States to take urgent action on these issues, through close monitoring and through the enforcement of existing EU laws, and calls on the Commission to swiftly pursue infringement procedures when breaches occur, as well as to follow through on illegal logging cases through all competent bodies; calls on the Commission to finalise, without delay, the fitness check of EU rules against illegal logging; |
| --- | --- |

5.

| 6. | Concludes that the differences between Member States, as well as the differences between regions within Member States, have been an important factor in considering measures at EU level; |
| --- | --- |

6.

| 7. | Expresses its deep concern that in parts of the Union failure to implement existing EU legislation and suspicion of corruption have resulted in illegal logging and unsustainable forestry activities; calls on the Commission and the Member States to combat corruption and to fully implement the existing legislation; |
| --- | --- |

7.

The present — state of play of the EU’s forests

| 8. | Emphasises that the EU’s forests, together with those of its overseas territories and outermost regions, are multifunctional and characterised by great diversity in such aspects as ownership patterns, size, structure, biodiversity, resilience and challenges; points out that forests, in particular mixed forests, offer society a wide variety of ecosystem services including habitats for species, carbon sequestration, raw materials, renewable energy, improved air quality, clean water, groundwater recharge, erosion control and protection from drought, floods and avalanches, and provide ingredients for medicinal products, as well as being an important cultural and recreational amenity; whereas all this no longer seems to be completely safeguarded, as forest owners can no longer reinvest in forests as a result of the difficult economic situation caused by climate change and other contributing factors; notes that according to the latest estimates, only 26 % of forest species and 15 % of forest habitats demonstrated a favourable conservation status; calls on the Member States to ensure the safeguarding of ecosystems and, where necessary, to develop and enhance guidelines regarding non-timber forest products; |
| --- | --- |

8.

| 9. | Takes note of the progress made on valuing ecosystem services under the Mapping of Ecosystems and their Services (MAES) initiative; stresses, however, that there is currently no adequate remuneration for the provision of ecosystem services such as CO2 sequestration or fostering biodiversity or soil improvement, and that foresters who focus on converting their forests accordingly currently might be managing their forests at a loss despite the provision of substantial ecosystem services; calls on the Commission and the Member States to explore options to incentivise and remunerate climate, biodiversity and other ecosystem services appropriately in order to permit an economically viable forest conversion; |
| --- | --- |

9.

| 10. | Notes that over the past decades the EU's forest resources have been increasing in terms of forest cover and volume, and that currently forests and other wooded areas cover around 43 % of the surface of the EU, reaching at least 182 million hectares and comprising 5 % of the world’s total forests, thanks to afforestation and natural regeneration; notes that half of the Natura 2000 network is made up of forest areas (i.e. 37,5 million hectares) and that 23 % of all forests in Europe are within Natura 2000 sites, while some Member States have more than half of their territory covered by forests and are dependent on forestry; points out the importance of improving knowledge about Natura 2000 and its effects on biodiversity, forest management and other uses of land throughout the EU; notes that 60 % of EU forests are privately owned, with a high proportion of small-size forest holdings (less than 3 ha) and 40 % are publicly owned; points out that over 60 % of the productive forests in the EU, and over 20 % worldwide, are certified according to SFM voluntary standards; notes also that the share of the round wood stemming from certified forests processed by the wood-based industries globally is higher than 20 % and that this share is as high as 50 % in the EU; points out that the sector employs at least 500 000 people directly (7) and 2,6 million indirectly in the EU (8) and that maintenance of this level of employment as well as the sector’s long-term competitiveness require constant efforts to attract a skilled and trained workforce to the sector and ensure that workers have proper access to social and medical assistance; notes that these jobs are dependent on resilient and well-managed forest ecosystems in the long term; stresses the crucial role that forest owners play in the implementation of SFM and the important role that forests play in the creation of green jobs and in growth in rural areas; in addition, highlights that EU forest owners and managers have a long tradition and experience in management of multifunctional forests; calls on the Commission to include the need for support to forest owners, including financial support, in the new EU Forest Strategy; considers that such support should be made subject to the application of SFM, to ensure a continued investment in modern technologies and in environmental and climate measures that reinforce the multifunctional role played by forests, with a specific financial instrument for the management of areas in the Natura 2000 network and creating decent working conditions; believes that such financial support should be the result of a robust combination of financial instruments, national funding and private-sector financing; underscores the importance of averting a rural exodus and considers it essential to invest in ecosystems; welcomes afforestation and reforestation as suitable tools in enhancing forest cover, especially on abandoned land that is not suitable for food production, close to urban and peri-urban areas as well as in mountainous areas, where appropriate; encourages financially backed-up actions for using the harvested timber in proportion to the sustainable forestry stock and increasing forest cover and other wooded land where relevant, particularly in those Member States where forest cover is low, while encouraging in other Member States the preservation of forest cover in areas with accentuated ecological functions; notes that forests host a significant part of Europe’s terrestrial biodiversity; |
| --- | --- |

10.

| 11. | Observes that the area of forest in the Union is growing, inter alia as a result of afforestation, and that managed commercial forests not only bind carbon better than unmanaged forests but also reduce emissions and problems caused by deterioration of the condition of forests; notes that sustainable management of commercial forests has the very best impact on the climate, and that countries which manage their forests well should be rewarded for this; |
| --- | --- |

11.

| 12. | Recognises that long-term public and private investment in a reinforced SFM which places equal focus on the social, environmental and economic benefits of forests and on adequate funding and compensation mechanisms can help ensure forests’ resilience and adaptive capacity and help the forest sector to stay economically viable and environmentally sound, but can also contribute to achieving numerous EU goals, including the successful implementation of the European Green Deal and the transition to a circular bio-economy and the promotion of biodiversity; highlights also the need for other easily accessible, well-coordinated and relevant EU funding mechanisms, such as financial instruments or the support of the European Investment Bank in bolstering investment in forestry projects, targeting SFM and forest fire prevention and mitigation, as well as the structural funds and funds from the Horizon, Erasmus+ and LIFE+ programmes, which could provide essential support for investment and services for carbon storage and sequestration as part of the SFM, also ensuring consistency with the Green Deal; |
| --- | --- |

12.

| 13. | Acknowledges the crucial climate benefits of forests and the forest-based sector; reiterates the need to foster the environmental, economic and social aspects of forests and forest management in a balanced manner while strengthening the overall climate benefits stemming from forests and the forest-based value chain, namely fostered CO2 sequestration and carbon storage in wood products and material substitution; highlights the need to maintain, further promote and where possible increase CO2 sequestration in forests to a level which enables sustainable management of all forest functions, carbon storage in situ, including in agroforests, deadwood and forest soil and wood-based products by means of active SFM; points out that over 10 % of the EU’s greenhouse gas emissions are absorbed by forests; stresses the need to promote the use of wood as a sustainable construction material as it enables us to move towards a more sustainable economy; encourages the Commission to explore different market-based mechanisms in order to incentivise substitution of fossil fuels by renewable raw materials which offer climate benefits; stresses the crucial role of wood-based materials in substituting fossil-based alternatives and alternatives with a higher environmental footprint in industries such as construction, textiles, chemicals and packaging, and the need to fully take into account the climate and environmental benefits of this material substitution; further highlights the as yet under-used advantages offered by the replacement of single-use products, notably plastic products, by sustainable wood-based products; stresses that the circular use of wood-based products should also be increased in order to improve the use of our sustainable resources, promote resource efficiency, reduce waste and extend the carbon life cycle for the deployment of a sustainable and local circular bioeconomy; |
| --- | --- |

13.

| 14. | Welcomes, as regards the substitution of fossil-based raw materials and energy, the continuing work of promoting the most efficient use of wood following the ‘cascading principle’; calls on the Commission and the Member States to continue the implementation of sustainability criteria for biomass under the recast of the Renewable Energy Directive, and to make optimum use of the substitution effect by substituting CO2-intensive fossil-based materials and energy; notes, however, the importance of avoiding unnecessary market distortions for wood-based raw materials when it comes to supporting schemes for bioenergy; draws attention to the fact that a foreseeable increase in demand for wood and biomass must be accompanied by SFM; emphasises, in this respect, the need to increase funding for research into the substitution of fossil fuels and fossil-fuel materials; notes that leftovers at the end of the wood value chain can be favourably used as biomass in order to substitute fossil-based heat, but that where possible timber should be kept for uses with a longer life cycle in order to increase global carbon dioxide storage; |
| --- | --- |

14.

| 15. | Highlights the beneficial effects of forest shelterbelts, both for protecting farmland and for increasing agricultural output; strongly advocates methods to encourage farmers to develop forest shelterbelts; |
| --- | --- |

15.

| 16. | Stresses the key role that flowering trees and bushes in natural ecosystems play for the apiculture sector, and in assisting the natural process of pollination and enhancing the consolidation and protection of deteriorated and/or rough land; urges the inclusion of such trees and bushes in EU support programmes, taking regional characteristics into account; |
| --- | --- |

16.

| 17. | Regrets the fact that although forests in the EU are managed according to the commonly agreed principle of SFM and forest cover in the EU has been increasing over the past decades, a different approach to SFM has been developed in the context of the recently agreed Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (9); |
| --- | --- |

17.

| 18. | Underlines the importance of resilient and healthy forest ecosystems including fauna and flora, in order to maintain and enhance the delivery of the multiple ecosystem services that forests provide, such as biodiversity, clean air, water, healthy soil and wood and non-wood raw materials; highlights that voluntary tools and legislation in place, such as the EU Birds and Habitats directives, affect land management decisions and must be respected and implemented appropriately; |
| --- | --- |

18.

| 19. | Notes that farmers and forest owners are key actors in rural areas; welcomes the recognition of the role of forestry, agro-forestry and forest-based industries in the Rural Development Programme of the 2014-2020 CAP, and the improvements introduced through the Omnibus Regulation; encourages safeguarding this recognition in the CAP 2021-2027 and in the implementation of the European Green Deal; |
| --- | --- |

19.

| 20. | Highlights the suitability and viability of the two-step approach to verifying the sustainability of forest biomass, as agreed in the recast of the Renewable Energy Directive; notes that this should be achieved by continuing the halted development of non-end-use-specific sustainability criteria by the Standing Forestry Committee and the Commission; |
| --- | --- |

20.

| 21. | Recognises the role of forests as regards provision of recreational values and forest-related activities such as harvesting of non-wood forest products, e.g. mushrooms and soft fruit; takes note of the opportunities for enhancing biomass removals in terms of forest fire prevention via grazing, but also notes that wildlife grazing has a negative impact on seedlings and therefore points to the need for sustainable management of grazing fauna; |
| --- | --- |

21.

The future — the crucial role played by the post-2020 EU Forest Strategy and the European Green Deal in meeting the goals of the Paris Agreement and the UN 2030 Agenda for Sustainable Development

| 22. | Welcomes the recent publication of the Commission’s European Green Deal, and looks forward to the upcoming post-2020 EU Forest Strategy, which should be aligned with the European Green Deal and the EU Biodiversity Strategy; furthermore considers that stepping up the circular bio-economy is an essential approach to achieving a low-carbon society in the implementation of the Green Deal; points out the importance of further enhancing the potential of forests in order to reach the objectives of the European Green Deal, and of the development of the circular bio-economy while guaranteeing other ecosystem services including biodiversity; |
| --- | --- |

22.

| 23. | Welcomes the Commission’s 2020 Work Programme, and especially the acknowledgment of the new EU Forest Strategy’s contribution to the 26th session of the Conference of the Parties (COP26) of the UN Framework Convention on Climate Change; stresses, in this regard, that in future, forests should not be considered as the only type of CO2 sink as that would give other sectors less of an incentive to minimise their emissions; highlights, in addition, the need for concrete and effective actions in climate adaptation strategies and plans, incorporating the synergies between mitigation and adaptation, which will be crucial to lessening the detrimental impacts of climate change on disturbances such as forest fires and their negative effects on the rural economy, biodiversity and provision of ecosystems services; underlines the need for more resources and development of science-based fire management to tackle the effects of climate change in forests; notes that in order to preserve forests’ biodiversity and functionality, together with the need for mitigation of and adaptation to climate change and as also recognised in the Land Use, Land Use Change and Forestry (LULUCF) Regulation, deadwood in the forest constitutes microhabitats on which numbers of species are dependent; |
| --- | --- |

23.

| 24. | Reiterates that forests and the forest-based sector significantly contribute to the development of local, circular bio-based economies in the EU; emphasises the crucial role of forests, the forest-based sector and the bio-economy in achieving the goals of the European Green Deal and climate neutrality by 2050; stresses that in 2015 the bio-economy represented a market estimated to be worth over EUR 2,3 trillion, providing 20 million jobs and accounting for 8,2 % of total employment in the EU; notes that every euro invested in bio-economy research and innovation under Horizon 2020 will generate about EUR 10 in added value; points out that achieving the EU’s goals for environment, climate and biodiversity will never be possible without forests that are multifunctional, healthy and sustainably managed applying a long-term perspective, together with viable forest-based industries; stresses that under some circumstances there are trade-offs between protecting the climate and protecting biodiversity in the bio-economy sector and particularly in forestry, which plays a central role in the transition towards a climate-neutral economy; expresses its concern that this trade-off has not been sufficiently addressed in recent policy discussions; points out the need to develop a coherent approach to bring together biodiversity protection and climate protection in a thriving forest-based sector and bio-economy; stresses the importance of developing and ensuring a market-based bio-economy in the EU, e.g. by incentivising innovation and development of new bio-based products with a supply chain making effective use of the biomass materials; considers that the EU should encourage the use of timber, harvested wood products or forest biomass in order to stimulate sustainable production and jobs; calls on the Commission and the Member States to encourage the return of materials of biological origin, including wood waste, to the value chain, by encouraging eco-design, further boosting recycling and promoting the use of secondary raw materials comprising wood for products before their potential incineration at the end of their life; |
| --- | --- |

24.

| 25. | Stresses the need to give full and real political support to the forestry sector and stresses, in this regard, that an ambitious, independent and self-standing EU Forest Strategy is needed for the post-2020 period in parallel with other relevant sectoral strategies; notes that since agroforestry can have both agricultural and forestry characteristics, the EU Forest Strategy needs to be coordinated with the Farm to Fork strategy; calls for a new EU Forest Strategy that builds on the holistic approach to SFM, taking into account all of the economic, social and environmental aspects of the forest-based value chain, and ensuring the continuity of the multifunctional and multidimensional role played by forests; stresses that an EU Forest Strategy that is coordinated, balanced, coherent and better integrated with the relevant EU legislation related to forests, the forest-based sector, including the people who directly or indirectly work and live in the forest and the forestry sector, and the multiple services they provide, needs to be developed, given the growing number of national and EU policies directly or indirectly affecting forests and their management in the EU; |
| --- | --- |

25.

| 26. | Calls on the Commission to make every effort to ensure, in the implementation of the Regional Development Fund, that, in particular, initiatives aimed at putting a stop to biodiversity loss in forests, promoting mixed and native species planting and improving forest management are fostered, and that projects are implemented and funding is targeted; |
| --- | --- |

26.

| 27. | Takes the view that the EU Forest Strategy should act as a bridge between national forest and agroforest policies and EU objectives relating to forests and agroforests, recognising both the need to respect national competence and the need to contribute to wider EU objectives, while coherently addressing the specificities of both private and publicly owned forests; calls for action to ensure long-term stability and predictability for the forestry sector and the whole bio-economy; |
| --- | --- |

27.

| 28. | Stresses the importance of evidence-based decision-making with regard to EU policies relating to forests and to the forest-based sector and its value chains; calls for consistency of ambition of all forest-related aspects of the European Green Deal and the Biodiversity Strategy with the post-2020 EU Forest Strategy, particularly with a view to ensuring that SFM has a positive impact on society, including connectivity and representativeness of forest ecosystems and ensuring long-term and stable benefits for the climate and the environment, while also contributing to the achievement of the SDGs; highlights that any possible EU guidelines related to SFM should be developed in the framework of the post-2020 EU Forest Strategy; |
| --- | --- |

28.

| 29. | Highlights the need to take into consideration the links between the forest-based sector and other sectors, such as agriculture, and their coordination within the circular bio-economy, as well as the importance of digitalisation and investing in education, research and innovation and biodiversity preservation, which can positively contribute to further solutions for climate change mitigation and adaptation and job creation; notes that forests are an integral part of sustainable development; |
| --- | --- |

29.

| 30. | Stresses the importance to rural society of agroforestry systems, which are very low- density and barely economically viable, taking into account that annual income is complemented by other activities, such as livestock farming, tourism and hunting, which need to receive enough financing to prevent desertification and overexploitation; |
| --- | --- |

30.

| 31. | Stresses that due to climate change and the effects of human activity, natural disturbances such as fires, droughts, floods, storms, pest infestations, diseases and erosion are already occurring today and will occur more frequently and intensely in the future, causing damage to forests in the EU, and that this will call for risk and crisis management tailored to each scenario; emphasises, in this context, the need to develop a robust post-2020 EU Forest Strategy, as well as risk management measures, such as reinforcing the European disaster resilience and early warning tools, with a view to being better prepared and better preventing such events, increasing forests’ resilience and making them more climate-resistant, for example by strengthening the implementation of sustainable and active forest management and through research and innovation, which will make it possible to optimise the adaptability of our forests; recalls that according to the European Environmental Agency the main sources of pressure on forests in the EU include expanding urban areas and climate change; stresses also the need to offer better support mechanisms as well as financial resources and instruments for forest owners to apply prevention measures as well as restoration of affected areas, such as reforesting deteriorated land that is not suitable for agriculture, also having recourse to special disaster funds, including through extraordinary intervention, such as the European Union Solidarity Fund; calls for the need to ensure coherence between the EU Forest Strategy and the European Civil Protection Mechanism; calls on the Commission and the Member States to set up an emergency mechanism, and believes it is essential to include support for silvopasture (forest grazing) within the agroforestry measures and to encourage Member States to implement it in the next Rural Development (RD) programme; underlines the need for more resources and development of science-based fire management and risk-informed decision-making, taking into account the socio-economic, climate and environmental roots of forest fires; calls for the introduction of a response component for climate change-related common challenges; |
| --- | --- |

31.

| 32. | Calls on the Member States to design initiatives for preserving and where necessary establishing high conservation value (HCV) forests, with the necessary mechanisms and instruments for incentivising and, where applicable, compensating forest owners, so that knowledge and science can advance vis-à-vis these forests, alongside the preservation of natural habitats; |
| --- | --- |

32.

| 33. | Recognises the role of biodiversity in ensuring that forest ecosystems remain healthy and resilient; highlights the importance of the Natura 2000 sites, which offer the possibility to provide society with multiple ecosystem services, including raw materials; notes, however, that technical advice and fresh sufficient financial resources are needed to manage such areas; stresses that economic losses caused by protection measures should be fairly compensated; highlights the importance of the pragmatic integration of nature conservation into SFM, without necessarily enlarging the protected areas and avoiding additional administrative and financial burdens; supports the establishment of networks created on the basis of Member States-driven initiatives to this end; calls on the state or regional actors to negotiate the repopulation of riverside forests, where relevant, with specialised stakeholders, with the aim of creating biodiverse habitats, after the creation of which ecological services, such as absorption of harmful substances which circulate through groundwaters, will be developed; stresses the results of the evaluation study of the impact of the CAP indicating where CAP instruments and measures have the potential to be more significant contributors to biodiversity goals, and encourages the exploration of ways to improve the existing tools; also encourages further research into the relationship between biodiversity and resilience; |
| --- | --- |

33.

| 34. | Observes that nearly 25 % of the total area of forest in the EU belongs to the Natura 2000 network; |
| --- | --- |

34.

| 35. | Notes that the negotiations conducted by the United Nations Economic Commission for Europe and supported by the Food and Agriculture Organisation foundered on the issue of a legally binding, pan-European agreement on forests, given that the Russian Federation withdrew from the negotiating process; continues, however, to support robust instruments to boost SFM at pan-European and global level; |
| --- | --- |

35.

| 36. | Highlights that a growing number of EU policies address forests from different directions; encourages the completion of the ongoing process established by the current EU Forest Strategy to develop a non-end-use-driven sustainability approach with the close involvement of the Standing Forestry Committee and the Member States, building on the two-step approach of the recast Renewable Energy Directive; believes that the two-step approach could be used in other policies aiming to ensure the sustainability criteria of forest biomass and the cross-sectorial coherence of EU policies and reward ecosystem-related achievements, in particular the socially significant climate-related achievements of forests; at the same time, acknowledges that forestry in the EU already operates to the highest sustainability standards; notes that the sustainability approach for forest biomass must take account of the need for competitiveness of wood as compared with other raw materials; highlights the importance and encourages the use of market- developed tools, such as the forest certification systems in place, as suitable means of proof to verify the sustainability of forest resources; |
| --- | --- |

36.

| 37. | Stresses the crucial importance of forest and agroforestry measures under the CAP and other forestry measures, as well as ensuring fair and competitive market conditions within the EU, for the successful development of a sustainable circular bio-economy, while implementing the EU Forest Strategy; recalls the need for continuity and for explicit and improved forestry and agroforestry measures under the 2021-2027 CAP; points out that further cuts in the CAP budget would have a negative effect on investment in SFM and on achieving EU forest sector objectives; considers that SFM should have a visible place in the new CAP strategic plans; emphasises the need for a reduction of administrative burdens in the EU forestry measures and in state aid generally, for example in order to boost woody vegetation promotion and preservation linked to landscape features and policies associated with Pillar I and II payments, and by allowing block exemptions making it possible to react promptly to challenges to forests; is worried at the same time that horizontal Rural Development Programme (RDP) measures such as ‘Young farmer’ do not include forestry activities, at least in some Member States; |
| --- | --- |

37.

| 38. | Highlights the benefits of the association between grazing and forest management, namely fire risk decrease and reduced costs of forest maintenance; considers that research and knowledge transfer to practitioners in this regard are crucial; highlights the value of traditional extensive agroforestry systems and the ecosystem services they deliver; calls on the Commission to coordinate the EU Forest Strategy with the Farm to Fork Strategy so as to achieve these goals and to promote EU-wide specialised training programmes, in order to make farmers aware of the benefits and the practice of integrating woody vegetation with agriculture; takes note of the low uptake of the numerous measures within the 2014-2020 RD Regulation designed to support the deliberate integration of woody vegetation with farming; recognizes the capacity of agroforestry to boost overall biomass productivity in specific areas, and underlines that mixed ecosystems produce more biomass and absorb more atmospheric carbon; |
| --- | --- |

38.

| 39. | Stresses that the Union should allocate sufficient funding to measures for the forest-based sector, corresponding to the new expectations of that sector, including investment in the development of forest areas and in improving the viability of forests, maintaining networks of forest roads, forestry technology, innovation, and processing and taking into use forestry products; |
| --- | --- |

39.

| 40. | Calls on the Member States to align their various strategies and plans for forestry management so that the respective targets can be followed and corrected accordingly in due course, instead of creating administrative mosaics which then threaten achieving the goals set in their strategic documents; |
| --- | --- |

40.

| 41. | Regrets the omission in the CAP proposal for the 2021-2027 programming period regarding agroforestry; considers it fundamental that the next CAP regulation should recognise the benefits of agroforestry and continue promoting and supporting the establishment, regeneration, renovation and maintenance of agroforestry systems; calls on the Commission to promote the uptake of agroforestry support measures by Member States in their Strategic Plans; |
| --- | --- |

41.

| 42. | Welcomes the initiative announced by the Commission on the ‘Farm Carbon Forest’, aiming to reward farmers who commit themselves in projects intended to reduce CO2 emissions or to increase CO2 storage in order to contribute to the objective of ‘zero carbon’ in 2050, in the context of the new Green Deal; |
| --- | --- |

42.

| 43. | Underlines the essential role of high-level research and innovation in fostering the contribution of forests, agroforestry and the forest-based sector to overcoming the challenges of our time; stresses the importance of the EU’s post-2020 research and innovation programmes, recognises the role of the Standing Committee on Agricultural Research, and notes that research and technology have come a long way since the EU Forest Strategy was introduced in 2013; stresses the importance of encouraging further research into, inter alia, forest ecosystems, biodiversity, sustainable substitution of fossil-based raw materials and energies, carbon storage, wood-based products and sustainable forest management practices; calls for the continued funding of research into soils and their role in forests’ climate change resilience and adaptation, biodiversity protection and enhancement, as well as the provision of other ecosystem services and substitution effects, and for gathering data on innovative methods of protecting and building resilience of forests; notes with concern that the data on primary forests remain incomplete; stresses that more research and funding would make a positive contribution to climate change mitigation, safeguarding forest ecosystems and boosting biodiversity, sustainable economic growth and employment, especially in rural areas; takes note of the Commission’s recommendation that a strong capitalisation of innovation along the value chain would help to support the forest-based sector’s competitiveness; welcomes in this regard the EIB’s new climate ambition to fund projects that can boost opportunities for the forest-based sector, which plays an important role in the substitution of fossil-based materials and energies; commends the forest-related research and innovation already undertaken, especially under the Horizon 2020 and LIFE+ programmes; applauds those cases where the results contribute to the development of the sustainable bio-economy, seeking a balance between different aspects of SFM and underlining the multifunctional role of forests; calls on the Commission to invest in, and where necessary, intensify research on finding a solution to the spread of pests and diseases in forests; |
| --- | --- |

43.

| 44. | Calls on the Commission to take initiatives, in concert with manufacturers of forestry machinery, to improve the environmental design of that machinery in order to reconcile a high level of protection for workers with minimum impact on the soil and water in forests; |
| --- | --- |

44.

| 45. | Is concerned that the total surface area of forest has greatly diminished globally since the 1990s; highlights the fact that global deforestation and forest degradation are serious problems; emphasises that the EU Forest Strategy should exert an influence in the global political context and include the EU’s external objectives and action on promoting SFM worldwide, both bilaterally and through multilateral forest-related processes, placing the emphasis on measures to stop deforestation worldwide including supporting legal, sustainable and deforestation-free production and supply chains which do not result in human rights violations, and to ensure the sustainable management of forest resources; points out that policy initiatives should be developed to tackle issues outside the EU, with a focus on the tropics, while taking into account the different degrees of ambition as regards to environmental policy in different tropical countries, and the drivers of unsustainable practices in forests from outside the sector; stresses the need to implement traceability measures for imports and encourages the Commission and the Member States to foster cooperation with third countries so as to consolidate higher standards of sustainability; stresses the need to foster the implementation of the EU Timber Regulation and the FLEGT (Forest Law Enforcement, Governance and Trade) action plan in order to allow better prevention of the entry of illegally-felled or sourced wood, which constitutes unfair competition for the European forestry sector and on the EU market; reiterates the need for certification systems and for the inclusion of specific provisions of SFM in trade agreements; calls for a coherent and systematic interpretation of the EUTR due diligence system; |
| --- | --- |

45.

| 46. | Stresses the importance of education and a skilled, well-trained workforce when it comes to the successful implementation of sustainable forest management in practice; calls on the Commission and the Member States to continue to implement measures and to use existing European instruments such as the European Agricultural Fund for Rural Development (EAFRD), the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the European training programmes (ET2020) to support generation renewal and to compensate for the skilled workforce shortage in the sector; |
| --- | --- |

46.

| 47. | Calls for the importing of illegally acquired timber to be included in trade agreements, with sanctions to be imposed in the event of infringements; |
| --- | --- |

47.

| 48. | Calls on the Member States and the wood industry to make substantial contributions to ensure that as many areas are reforested as are deforested; |
| --- | --- |

48.

| 49. | Stresses the need to further develop the EU-wide Forest Information System for Europe (FISE), taking into account existing systems, under the shared responsibility of all the relevant Commission Directorates-General working on different topics covered by FISE; believes that the coordination of this instrument should be undertaken by the EU Forest Strategy; stresses the importance of providing real-time, comparative, science-based and balanced information on European forest resources while monitoring whether forests and natural reserves are well managed and preserved if required, and while aiming at forecasting the impact of natural disturbances resulting from climate change and their consequences, with environmental and socio-economic indicators for the development of any forest-related EU policy; notes that national forest inventories represent a comprehensive monitoring tool for assessing forestry stocks and take into account regional considerations; calls for the EU to create a monitoring network for European forests to collect information at local level, linked to Copernicus earth observation programmes; |
| --- | --- |

49.

| 50. | Welcomes the trend toward digitalisation in the sector and calls on the Commission to consider the implementation of an EU-wide digital wood-traceability mechanism for data gathering, consistent transparency, ensuring a level playing field, and reducing uncompetitive behaviour and deliberate wrongful action in the wood trade, within and outside the EU, through a verification system; further takes the view that such a verification system would improve compliance, limiting and combating financial fraud, while hampering cartel practices and dismantling illegal logging logistical operations and movements; further encourages exchanges of good practices with Member States which have already implemented such reforms at national level; |
| --- | --- |

50.

| 51. | Underlines that the Member States have competence and a central role in the preparation and implementation of the post-2020 EU Forest Strategy; calls on the Commission’s Standing Forestry Committee (SFC) to support Member States in this task; stresses the importance of the exchange of information and the parallel involvement of relevant stakeholders, such as forest owners and managers, in the Civil Dialogue Group on Forestry and Cork, and of maintaining its regular meetings and increasing coordination and synergies with the SFC; urges the Commission to involve Parliament in the implementation of the EU Forest Strategy at least on an annual basis; calls for the strengthening of the role of the SFC in order to ensure coordination among relevant stakeholders and policies at EU level; in addition, stresses that local and regional authorities have a key role to play in strengthening the sustainable use of forests and, in particular, the rural economy; highlights the importance of strengthened cooperation between Member States in order to enhance the benefits of the new EU Forest Strategy; furthermore, calls on the Commission and its Directorates-General with forest-related competences to work strategically to ensure coherence in any forestry-related work and enhance the sustainable management of forests; |
| --- | --- |

51.

| 52. | Urges the Member States to prioritise continuing high-quality vocational training in eco-construction and timber-related trades, and to provide the necessary public expenditure and investment in the field in order to anticipate the future needs of the EU’s timber industry; |
| --- | --- |

52.

| 53. | Recalls the pledge of the Commission concerning zero tolerance of non-compliance; stresses that a number of infringement cases currently open against Member States address irreplaceable values of European forest ecosystems, and urges the Commission to swiftly act in these cases; |
| --- | --- |

53.

| 54. | Urges the Commission, in coordination with the Member States’ labour inspection services, to verify that the machinery placed on the market and used by the timber industry complies with Directive 2006/42/EC on machinery and that it is equipped with a sawdust extraction and collection system; |
| --- | --- |

54.

| 55. | Is convinced that the EU Forest Strategy should promote and support the sharing of best practices as regards the implementation of SFM, vocational training for forest workers and managers, results in the forest sector and improved cooperation among Member States regarding cross-border actions and information sharing, in order to ensure the growth of healthy European forests; furthermore, stresses the need for improved communication regarding the importance of sustainable management of forest areas, together with the possibility of extending, implementing and coordinating information campaigns on the multifunctional nature of forests and the many economic, social and environmental benefits provided by forest management at all relevant levels of the EU, in order to make all citizens aware of the richness of this heritage and of the need to manage, maintain and sustainably use our resources to avoid any conflicts in society; |
| --- | --- |

55.

| 56. | Encourages the Member States to urge their respective forestry stakeholders to reach out to a broader segment of the population through educational tools and programmes, both for students and for people of other age groups, stressing the importance of forests both for human-led activities and for preserving biodiversity and varied ecosystems; |
| --- | --- |

56.

| 57. | Notes that digitalisation and sustainable technologies play a key role in providing added value in the further development of the forest-based sector; calls on the Commission and the Member States to encourage knowledge and technology transfer and sharing of best practices, on, for example, sustainable and active forest management; |
| --- | --- |

57.

ο

ο ο

| 58. | Instructs its President to forward this resolution to the Council and the Commission. |
| --- | --- |

58.

---

(1)  Texts adopted, P9_TA(2020)0005.

(2)  Texts adopted, P9_TA(2020)0015.

(3)  OJ C 346, 21.9.2016, p. 17.

(4)  OJ L 317, 4.11.2014, p. 35.

(5)  https://ec.europa.eu/knowledge4policy/publication/council-conclusions-updated-eu-bioeconomy-strategy-29-november-2019_en

(6)  OJ C 361, 5.10.2018, p. 5.

(7)  Eurostat database on forestry, available at: https://ec.europa.eu/eurostat/web/forestry/data/database.

(8)  European Parliament fact sheet of May 2019 on the European Union and forests.

(9)  OJ L 198, 22.6.2020, p. 13.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/50 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/50

---

P9_TA(2020)0258

Eritrea, the case of Dawit Isaak

European Parliament resolution of 8 October 2020 on Eritrea, notably the case of Dawit Isaak (2020/2813(RSP))

(2021/C 395/06)

The European Parliament,

| — | having regard to its previous resolutions on Eritrea, in particular that of 6 July 2017 (1), |
| --- | --- |

—

having regard to its previous resolutions on Eritrea, in particular that of 6 July 2017 (1),

| — | having regard to the report of 11 May 2020 of the UN Special Rapporteur on the situation of human rights in Eritrea, |
| --- | --- |

—

having regard to the report of 11 May 2020 of the UN Special Rapporteur on the situation of human rights in Eritrea,

| — | having regard to the statement of 30 June 2020 by the UN Special Rapporteur on the situation of human rights in Eritrea, delivered at the 44th session of the Human Rights Council, |
| --- | --- |

—

having regard to the statement of 30 June 2020 by the UN Special Rapporteur on the situation of human rights in Eritrea, delivered at the 44th session of the Human Rights Council,

| — | having regard to the UN Human Rights Council resolutions on the situation of human rights in Eritrea, |
| --- | --- |

—

having regard to the UN Human Rights Council resolutions on the situation of human rights in Eritrea,

| — | having regard to UN Security Council resolution 2444 of 14 November 2018, terminating with immediate effect all UN sanctions against Eritrea (arms embargo, asset freezes and travel bans), |
| --- | --- |

—

having regard to UN Security Council resolution 2444 of 14 November 2018, terminating with immediate effect all UN sanctions against Eritrea (arms embargo, asset freezes and travel bans),

| — | having regard to Council Decision (CFSP) 2018/1944 of 10 December 2018 repealing Decision 2010/127/CFSP concerning restrictive measures against Eritrea (2), |
| --- | --- |

—

having regard to Council Decision (CFSP) 2018/1944 of 10 December 2018 repealing Decision 2010/127/CFSP concerning restrictive measures against Eritrea (2),

| — | having regard to Case 428/12 (2012) filed to the African Commission on Human and Peoples’ Rights on behalf of Dawit Isaak and other political prisoners, |
| --- | --- |

—

having regard to Case 428/12 (2012) filed to the African Commission on Human and Peoples’ Rights on behalf of Dawit Isaak and other political prisoners,

| — | having regard to the Final Declaration of the 66th session of the African Commission on Human and Peoples’ Rights of 22 May 2017, |
| --- | --- |

—

having regard to the Final Declaration of the 66th session of the African Commission on Human and Peoples’ Rights of 22 May 2017,

| — | having regard to the UN Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, |
| --- | --- |

—

having regard to the UN Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment,

| — | having regard to the Constitution of Eritrea, adopted in 1997, which guarantees civil liberties, including freedom of religion, |
| --- | --- |

—

having regard to the Constitution of Eritrea, adopted in 1997, which guarantees civil liberties, including freedom of religion,

| — | having regard to the African Charter on Human and Peoples’ Rights, |
| --- | --- |

—

having regard to the African Charter on Human and Peoples’ Rights,

| — | having regard to the International Covenant on Civil and Political Rights (ICCPR) of 1966, |
| --- | --- |

—

having regard to the International Covenant on Civil and Political Rights (ICCPR) of 1966,

| — | having regard to the ACP-EU Partnership Agreement (the Cotonou Agreement) (3), as revised in 2005 and 2010, to which Eritrea is a signatory, |
| --- | --- |

—

having regard to the ACP-EU Partnership Agreement (the Cotonou Agreement) (3), as revised in 2005 and 2010, to which Eritrea is a signatory,

| — | having regard to Rules 144(5) and 132(4) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 144(5) and 132(4) of its Rules of Procedure,

| A. | whereas Dawit Isaak, a dual citizen of Eritrea and Sweden, and therefore a citizen of the European Union, a journalist and co-owner of Eritrea’s first independent newspaper, the widely distributed Setit, was arrested by the Eritrean authorities on 23 September 2001, along with 21 other persons; whereas the Eritrean Government accuses Dawit Isaak of being a ‘traitor’, although he has never been charged or brought to trial; whereas Dawit Isaak had returned from Sweden following Eritrea’s independence in 1992 to assist with the solidification of the country’s fledgling democracy; |
| --- | --- |

A.

whereas Dawit Isaak, a dual citizen of Eritrea and Sweden, and therefore a citizen of the European Union, a journalist and co-owner of Eritrea’s first independent newspaper, the widely distributed Setit, was arrested by the Eritrean authorities on 23 September 2001, along with 21 other persons; whereas the Eritrean Government accuses Dawit Isaak of being a ‘traitor’, although he has never been charged or brought to trial; whereas Dawit Isaak had returned from Sweden following Eritrea’s independence in 1992 to assist with the solidification of the country’s fledgling democracy;

| B. | whereas the imprisonments occurred after the publishing of an open letter condemning the regime and calling on President Isaias Afwerki to make democratic reforms; whereas on the day of the arrests, the government announced a ban on all independent media; whereas the detainees have not been charged with a crime; |
| --- | --- |

B.

whereas the imprisonments occurred after the publishing of an open letter condemning the regime and calling on President Isaias Afwerki to make democratic reforms; whereas on the day of the arrests, the government announced a ban on all independent media; whereas the detainees have not been charged with a crime;

| C. | whereas Dawit Isaak was released from custody on 19 November 2005 after significant interventions on his behalf by the Government of Sweden, among others; whereas he was re-arrested two days later while on his way to hospital, with the Eritrean authorities claiming that he had only been temporarily released in order to undergo medical treatment; whereas since then, Dawit Isaak has been held incommunicado by the Eritrean authorities, who refuse to disclose his exact location or details of his health and well-being; |
| --- | --- |

C.

whereas Dawit Isaak was released from custody on 19 November 2005 after significant interventions on his behalf by the Government of Sweden, among others; whereas he was re-arrested two days later while on his way to hospital, with the Eritrean authorities claiming that he had only been temporarily released in order to undergo medical treatment; whereas since then, Dawit Isaak has been held incommunicado by the Eritrean authorities, who refuse to disclose his exact location or details of his health and well-being;

| D. | whereas in December 2008, there were unconfirmed reports that Dawit Isaak was transferred to a maximum security prison in Embatkala, and that shortly after, on 11 January 2009, he was admitted to an air force hospital in Asmara, believed to be seriously ill; whereas the nature and extent of his illness remain unknown and the Government of Eritrea refuses to confirm his hospitalisation; |
| --- | --- |

D.

whereas in December 2008, there were unconfirmed reports that Dawit Isaak was transferred to a maximum security prison in Embatkala, and that shortly after, on 11 January 2009, he was admitted to an air force hospital in Asmara, believed to be seriously ill; whereas the nature and extent of his illness remain unknown and the Government of Eritrea refuses to confirm his hospitalisation;

| E. | whereas Dawit Isaak’s family, including his three children, have faced huge distress and uncertainty since his disappearance, having little knowledge of their loved one’s well-being, whereabouts or future prospects; whereas Dawit Isaak’s daughter, Betlehem Isaak, continues to advocate for her father’s release; whereas Betlehem Isaak confirmed in 2020 that her father was alive; |
| --- | --- |

E.

whereas Dawit Isaak’s family, including his three children, have faced huge distress and uncertainty since his disappearance, having little knowledge of their loved one’s well-being, whereabouts or future prospects; whereas Dawit Isaak’s daughter, Betlehem Isaak, continues to advocate for her father’s release; whereas Betlehem Isaak confirmed in 2020 that her father was alive;

| F. | whereas the African Commission on Human and Peoples’ Rights ruled that journalists arrested in Eritrea in September 2001, including Dawit Isaak, were being held in arbitrary and unlawful detention, and urged the Eritrean authorities to release them or at least to hold a fair trial; |
| --- | --- |

F.

whereas the African Commission on Human and Peoples’ Rights ruled that journalists arrested in Eritrea in September 2001, including Dawit Isaak, were being held in arbitrary and unlawful detention, and urged the Eritrean authorities to release them or at least to hold a fair trial;

| G. | whereas the situation in Eritrea’s overcrowded and unsanitary detention centres amounts to cruel and inhuman treatment; whereas these conditions put detainees at increased risk of transmission of COVID-19; whereas access to healthcare, food and sanitation is extremely limited or lacking entirely, leaving detainees reliant on visitors for basic supplies; whereas prison lockdowns aimed at combating the pandemic have contributed to further malnutrition and corresponding mental and physical ailments; whereas many more prisoners are being held in shipping containers, where they are subjected to extremely harsh temperature conditions; |
| --- | --- |

G.

whereas the situation in Eritrea’s overcrowded and unsanitary detention centres amounts to cruel and inhuman treatment; whereas these conditions put detainees at increased risk of transmission of COVID-19; whereas access to healthcare, food and sanitation is extremely limited or lacking entirely, leaving detainees reliant on visitors for basic supplies; whereas prison lockdowns aimed at combating the pandemic have contributed to further malnutrition and corresponding mental and physical ailments; whereas many more prisoners are being held in shipping containers, where they are subjected to extremely harsh temperature conditions;

| H. | whereas, since gaining independence, Eritrea under Isaias Afwerki has systematically jailed thousands of people for their political views or their work as journalists, or for practising their religion; whereas enforced disappearances take place on a structural basis; whereas detainees are typically subjected to arbitrary and unlawful arrests and detentions without charge and are denied access to lawyers or family visits; |
| --- | --- |

H.

whereas, since gaining independence, Eritrea under Isaias Afwerki has systematically jailed thousands of people for their political views or their work as journalists, or for practising their religion; whereas enforced disappearances take place on a structural basis; whereas detainees are typically subjected to arbitrary and unlawful arrests and detentions without charge and are denied access to lawyers or family visits;

| I. | whereas Eritrea is ranked 182nd out of 189 countries in the Human Development Index for 2019, according to the 2019 Human Development Report of the UN Development Programme; whereas the Reporters Without Borders World Press Freedom Index ranks Eritrea 178th out of 180 in 2020; whereas the Committee to Protect Journalists ranked Eritrea the world’s most censored country in 2019; |
| --- | --- |

I.

whereas Eritrea is ranked 182nd out of 189 countries in the Human Development Index for 2019, according to the 2019 Human Development Report of the UN Development Programme; whereas the Reporters Without Borders World Press Freedom Index ranks Eritrea 178th out of 180 in 2020; whereas the Committee to Protect Journalists ranked Eritrea the world’s most censored country in 2019;

| J. | whereas the report of the UN Commission of inquiry on human rights in Eritrea, published on 9 May 2016, noted that crimes against humanity had been committed in a widespread and systematic manner in detention centres, military training camps and other places across the country over the past 25 years; |
| --- | --- |

J.

whereas the report of the UN Commission of inquiry on human rights in Eritrea, published on 9 May 2016, noted that crimes against humanity had been committed in a widespread and systematic manner in detention centres, military training camps and other places across the country over the past 25 years;

| K. | whereas according to the report of the UN Special Rapporteur on the situation of human rights in Eritrea of 16 May 2019, ‘the positive momentum for peace and security in the region has raised expectations in Eritrea and in the international community that the Government of Eritrea will implement political and institutional reforms’, however, ‘the Eritrean authorities have not yet engaged in a process of domestic reforms and the human rights situation remains unchanged’; whereas the UN Special Rapporteur has been denied access to Eritrea to conduct in-country visits since 2009; |
| --- | --- |

K.

whereas according to the report of the UN Special Rapporteur on the situation of human rights in Eritrea of 16 May 2019, ‘the positive momentum for peace and security in the region has raised expectations in Eritrea and in the international community that the Government of Eritrea will implement political and institutional reforms’, however, ‘the Eritrean authorities have not yet engaged in a process of domestic reforms and the human rights situation remains unchanged’; whereas the UN Special Rapporteur has been denied access to Eritrea to conduct in-country visits since 2009;

| L. | whereas in May 2019, the Eritrean authorities carried out a crackdown on non-recognised Christian congregations and seized Catholic-affiliated schools and health facilities, thus negatively affecting the health and education rights of the population; |
| --- | --- |

L.

whereas in May 2019, the Eritrean authorities carried out a crackdown on non-recognised Christian congregations and seized Catholic-affiliated schools and health facilities, thus negatively affecting the health and education rights of the population;

| M. | whereas the President of Eritrea continues to refuse to hold elections and to implement the country’s constitution, in spite of the fact that it was ratified in 1997 and that Eritrea’s electoral law was ratified in 2002; whereas the interim legislature has not met since 2002 and the judiciary is controlled by the government; |
| --- | --- |

M.

whereas the President of Eritrea continues to refuse to hold elections and to implement the country’s constitution, in spite of the fact that it was ratified in 1997 and that Eritrea’s electoral law was ratified in 2002; whereas the interim legislature has not met since 2002 and the judiciary is controlled by the government;

| N. | whereas recent developments in regional peace and security were expected to lead to the introduction of reforms to national service and to the demobilisation of conscripts in Eritrea; whereas to date, there have been no official announcements of a reduction in the duration of national service or of any demobilisation plans; whereas national service continues to be involuntary in nature and of an open-ended duration; whereas national service places many citizens, including women and girls, in a situation of slavery, where their whole life is under the control of others and where they suffer, inter alia, physical, sexual and verbal abuses and may be forced to work as domestic servants; |
| --- | --- |

N.

whereas recent developments in regional peace and security were expected to lead to the introduction of reforms to national service and to the demobilisation of conscripts in Eritrea; whereas to date, there have been no official announcements of a reduction in the duration of national service or of any demobilisation plans; whereas national service continues to be involuntary in nature and of an open-ended duration; whereas national service places many citizens, including women and girls, in a situation of slavery, where their whole life is under the control of others and where they suffer, inter alia, physical, sexual and verbal abuses and may be forced to work as domestic servants;

| O. | whereas in July 2018, Eritrea and Ethiopia signed an historic peace agreement ending twenty years of conflict; whereas the July 2018 peace agreement opened new prospects for the country’s socio-economic development, linked with the advancement of regional economic integration in the Horn of Africa; |
| --- | --- |

O.

whereas in July 2018, Eritrea and Ethiopia signed an historic peace agreement ending twenty years of conflict; whereas the July 2018 peace agreement opened new prospects for the country’s socio-economic development, linked with the advancement of regional economic integration in the Horn of Africa;

| P. | whereas following the peace agreement between Eritrea and Ethiopia, the EU changed its approach towards Eritrea based on ‘principles of engagement’, which had previously allowed neither political dialogue nor EU development cooperation with Eritrea, to the so-called ‘dual track’ approach; |
| --- | --- |

P.

whereas following the peace agreement between Eritrea and Ethiopia, the EU changed its approach towards Eritrea based on ‘principles of engagement’, which had previously allowed neither political dialogue nor EU development cooperation with Eritrea, to the so-called ‘dual track’ approach;

| Q. | whereas, the EU’s partnership with Eritrea is governed by the Cotonou Agreement, and whereas parties to this agreement are bound to respect and implement its terms, in particular respect for human rights, democracy and the rule of law; |
| --- | --- |

Q.

whereas, the EU’s partnership with Eritrea is governed by the Cotonou Agreement, and whereas parties to this agreement are bound to respect and implement its terms, in particular respect for human rights, democracy and the rule of law;

| R. | whereas despite gross and systematic violations by Eritrea of the essential and fundamental elements of the Cotonou Agreement regarding human rights, the EU never initiated consultations as provided for in Article 96 thereof, despite Parliament’s calls to do so; |
| --- | --- |

R.

whereas despite gross and systematic violations by Eritrea of the essential and fundamental elements of the Cotonou Agreement regarding human rights, the EU never initiated consultations as provided for in Article 96 thereof, despite Parliament’s calls to do so;

| S. | whereas the EU is a significant donor to Eritrea in terms of development assistance; whereas following the 2018 peace agreement between Eritrea and Ethiopia, a new Development Cooperation Strategy for 2019-2020 was agreed upon by the EU and Eritrea, under which the EU allocated EUR 180 million; |
| --- | --- |

S.

whereas the EU is a significant donor to Eritrea in terms of development assistance; whereas following the 2018 peace agreement between Eritrea and Ethiopia, a new Development Cooperation Strategy for 2019-2020 was agreed upon by the EU and Eritrea, under which the EU allocated EUR 180 million;

| T. | whereas the autocratic government attempts to control the Eritrean diaspora by means of a 2 % expat income tax and by spying on the diaspora and targeting relatives who remain in Eritrea; |
| --- | --- |

T.

whereas the autocratic government attempts to control the Eritrean diaspora by means of a 2 % expat income tax and by spying on the diaspora and targeting relatives who remain in Eritrea;

| 1. | Demands that all prisoners of conscience in Eritrea be immediately and unconditionally released, notably EU citizen Dawit Isaak and the other journalists detained since September 2001; demands immediate information regarding Dawit Isaak’s whereabouts and well-being; urges the Eritrean authorities to provide him with access to representatives of the EU, the Member States and Sweden in order to establish his healthcare needs and any other necessary support; |
| --- | --- |

1.

| 2. | Condemns in the strongest terms Eritrea’s systematic, widespread and gross human rights violations; calls on the Eritrean Government to put an end to detention of the opposition, journalists, religious leaders and innocent civilians; |
| --- | --- |

2.

| 3. | Appeals to the African Union, as a partner of the EU with an explicit commitment to the universal values of democracy and human rights, to step up its activity in relation to the regrettable situation in Eritrea and to work together with the EU to secure the release of Dawit Isaak and other political prisoners; |
| --- | --- |

3.

| 4. | Demands that, given the current COVID-19 health crisis, the poor sanitary conditions in Eritrean prisons and the high risk of infection for detainees, adequate food, water, and medical care be promptly provided; expresses concern that the COVID-19 pandemic is exacerbating the situation of famine and malnutrition that exists in parts of the country and is contributing to food shortages; |
| --- | --- |

4.

| 5. | Demands that the Eritrean Government provide proof of life and detailed information on the fate and whereabouts of all those deprived of physical liberty; calls for fair trials for those accused, the immediate and unconditional release of any prisoners not charged with any crimes, and the abolition of torture and other degrading treatment such as restrictions on food, water and medical care; reminds the Eritrean Government of its obligation to address all human rights violations, including by investigating extrajudicial killings and enforced disappearances as well as the capital punishment, which should be abolished in line with the recommendations presented in the UN Human Rights Council Annual Report 2020; |
| --- | --- |

5.

| 6. | Deplores the fact that Eritrea provides no space for independent human rights defenders, members of the political opposition or independent journalists; calls, therefore, on the Eritrean Government to open civic space for independent civil society organisations and allow the creation of other political parties in the country; reminds Eritrea of its obligations under ILO conventions, with particular regard to the right of civil society organisations and trade unions to organise, peacefully demonstrate, participate in public affairs and campaign for better workers’ rights; |
| --- | --- |

6.

| 7. | Demands that the Eritrean Government desist from using its citizens as forced labour through indefinite national service and put an end to the compulsory practice of all children undertaking their final year of schooling in a military training camp; |
| --- | --- |

7.

| 8. | Calls on the Commission to ascertain whether the conditionality of EU aid is respected and to ensure that no financing for projects in Eritrea, particularly those that are carried out using national service labour, benefits the Eritrean Government; deplores, in this regard, the fact that the Commission continues to finance the ‘Roads Project’, and calls on it to strictly respond to the needs of the Eritrean people for development, democracy, human rights, good governance, security and freedom of speech, press and assembly, and to evaluate tangible outcomes regarding human rights that have resulted from the EU-Eritrea strategy and the so-called ‘dual track approach’; |
| --- | --- |

8.

| 9. | Calls for the immediate implementation of Eritrea’s 1997 Constitution, which was drafted in full consultation with all stakeholders and civil society and duly adopted; |
| --- | --- |

9.

| 10. | Condemns the use by the Eritrean Government of the extraterritorial ‘diaspora tax’; urges the government to respect freedom of movement and to end the ‘guilt-by-association’ policies that target the family members of those who evade national service, seek to flee Eritrea or fail to pay the 2 % income tax imposed by the government on Eritrean expatriates, including EU citizens; |
| --- | --- |

10.

| 11. | Calls on Eritrea to lift the ban on independent media and to allow the creation of political parties, as a central tool for promoting democracy in the country; calls for human rights organisations to be allowed to freely operate within the country; |
| --- | --- |

11.

| 12. | Demands that the Eritrean authorities put an end to detention of the opposition, journalists, religious leaders, civil society representatives and innocent civilians; urges Eritrea to fully respect and protect freedom of religion and to stop its ongoing persecutions on the basis of faith; |
| --- | --- |

12.

| 13. | Reiterates its urgent request for a global EU human rights mechanism, the so-called European Magnitsky Act; calls on the Council to adopt this mechanism through a decision relating to the Union’s strategic interests and objectives under Article 22(1) of the Treaty on European Union; |
| --- | --- |

13.

| 14. | Demands that Eritrea fully respect and immediately enact the UN Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment and fully uphold its obligations under the International Covenant on Civil and Political Rights and the African Charter on Human and Peoples’ Rights, both of which prohibit torture; |
| --- | --- |

14.

| 15. | Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the African Union, the President of Eritrea, the UN Human Rights Council, and the ACP-EU Joint Parliamentary Assembly. |
| --- | --- |

15.

---

(1)  OJ C 334, 19.9.2018, p. 140.

(2)  OJ L 314, 11.12.2018, p. 60.

(3)  OJ L 317, 15.12.2000, p. 3.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/54 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/54

---

P9_TA(2020)0259

The ‘Foreign Agents’ Law in Nicaragua

European Parliament resolution of 8 October 2020 on the ‘Foreign Agents’ Law in Nicaragua (2020/2814(RSP))

(2021/C 395/07)

The European Parliament,

| — | having regard to its previous resolutions on Nicaragua, in particular those of 31 May 2018 (1), 14 March 2019 (2) and 19 December 2019 (3), |
| --- | --- |

—

having regard to its previous resolutions on Nicaragua, in particular those of 31 May 2018 (1), 14 March 2019 (2) and 19 December 2019 (3),

| — | having regard to the Agreement of 29 June 2012 establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (4), |
| --- | --- |

—

having regard to the Agreement of 29 June 2012 establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (4),

| — | having regard to the EU country strategy paper and multiannual indicative programme 2014-2020 on Nicaragua, |
| --- | --- |

—

having regard to the EU country strategy paper and multiannual indicative programme 2014-2020 on Nicaragua,

| — | having regard to the Council conclusions on Nicaragua, |
| --- | --- |

—

having regard to the Council conclusions on Nicaragua,

| — | having regard to Council Regulation (EU) 2019/1716 of 14 October 2019 establishing a framework for targeted sanctions in Nicaragua (5), and Council Implementing Regulation (EU) 2020/606 of 4 May 2020 adding six Nicaraguan officials on the list of targeted sanctions, including asset freezes and travel bans (6), |
| --- | --- |

—

having regard to Council Regulation (EU) 2019/1716 of 14 October 2019 establishing a framework for targeted sanctions in Nicaragua (5), and Council Implementing Regulation (EU) 2020/606 of 4 May 2020 adding six Nicaraguan officials on the list of targeted sanctions, including asset freezes and travel bans (6),

| — | having regard to the declarations by the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy (VP/HR) on behalf of the European Union on Nicaragua, in particular those of 20 November 2019 and 4 May 2020, |
| --- | --- |

—

having regard to the declarations by the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy (VP/HR) on behalf of the European Union on Nicaragua, in particular those of 20 November 2019 and 4 May 2020,

| — | having regard to the statement by the UN High Commissioner for Human Rights Michelle Bachelet at the 45th Session of the Human Rights Council of 14 September 2020, and the UN Human Rights Council report of 19 June 2020 on Nicaragua, |
| --- | --- |

—

having regard to the statement by the UN High Commissioner for Human Rights Michelle Bachelet at the 45th Session of the Human Rights Council of 14 September 2020, and the UN Human Rights Council report of 19 June 2020 on Nicaragua,

| — | having regard to the newsletters published by the Special Monitoring Mechanism for Nicaragua (MESENI) established by the Inter-American Commission on Human Rights, |
| --- | --- |

—

having regard to the newsletters published by the Special Monitoring Mechanism for Nicaragua (MESENI) established by the Inter-American Commission on Human Rights,

| — | having regard to the International Covenant on Civil and Political Rights (ICCPR) of 1966, |
| --- | --- |

—

having regard to the International Covenant on Civil and Political Rights (ICCPR) of 1966,

| — | having regard to the Universal Declaration of Human Rights of 1948, |
| --- | --- |

—

having regard to the Universal Declaration of Human Rights of 1948,

| — | having regard to the EU Guidelines on Human Rights Defenders and those on Freedom of Expression Online and Offline, |
| --- | --- |

—

having regard to the EU Guidelines on Human Rights Defenders and those on Freedom of Expression Online and Offline,

| — | having regard to the Nicaraguan Constitution, |
| --- | --- |

—

having regard to the Nicaraguan Constitution,

| — | having regard to Rule 144(5) and 132(4) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 144(5) and 132(4) of its Rules of Procedure,

| A. | whereas on 22 September 2020, the Nicaraguan National Assembly members of the Alianza Frente Sandinista de Liberación Nacional (Sandinista National Liberal Front), the ruling party, presented a proposal for a Law for Regulation of Foreign Agents, modelled on Russia’s 2012 law on foreign agents, which, if adopted, will oblige every person, organisation or institution, including media outlets and non-governmental organisations that receive funds from abroad, to be registered with the Ministry of the Interior (Migob) and to submit to financial monitoring by the Financial Analysis Unit (UAF); |
| --- | --- |

A.

whereas on 22 September 2020, the Nicaraguan National Assembly members of the Alianza Frente Sandinista de Liberación Nacional (Sandinista National Liberal Front), the ruling party, presented a proposal for a Law for Regulation of Foreign Agents, modelled on Russia’s 2012 law on foreign agents, which, if adopted, will oblige every person, organisation or institution, including media outlets and non-governmental organisations that receive funds from abroad, to be registered with the Ministry of the Interior (Migob) and to submit to financial monitoring by the Financial Analysis Unit (UAF);

| B. | whereas any person or entity registered with the Ministry of the Interior as a ‘foreign agent’ would be subject to close surveillance and would have to ‘refrain from intervening in domestic political affairs or matters’ as stated in Article 12, thereby restricting their civil and political rights, and allowing them to be persecuted, harassed and criminally prosecuted; whereas, if adopted, this law would negatively affect the right to equal political and public participation, including of the opposition, thus further distorting the political system in Nicaragua; whereas this can lead to grave situations of unlawful criminalisation of civil society organisations, activists and human rights defenders; |
| --- | --- |

B.

whereas any person or entity registered with the Ministry of the Interior as a ‘foreign agent’ would be subject to close surveillance and would have to ‘refrain from intervening in domestic political affairs or matters’ as stated in Article 12, thereby restricting their civil and political rights, and allowing them to be persecuted, harassed and criminally prosecuted; whereas, if adopted, this law would negatively affect the right to equal political and public participation, including of the opposition, thus further distorting the political system in Nicaragua; whereas this can lead to grave situations of unlawful criminalisation of civil society organisations, activists and human rights defenders;

| C. | whereas the Law for Regulation of Foreign Agents, if approved, would be used as an instrument of repression against people and human rights organisations that receive resources from international cooperation in Nicaragua; whereas the adoption of this law could directly impact EU cooperation in the country and individuals linked to European interests; |
| --- | --- |

C.

whereas the Law for Regulation of Foreign Agents, if approved, would be used as an instrument of repression against people and human rights organisations that receive resources from international cooperation in Nicaragua; whereas the adoption of this law could directly impact EU cooperation in the country and individuals linked to European interests;

| D. | whereas several members of the ruling party of the National Assembly have also proposed a special law on cybercrime that seeks to censor digital media, as well as a new law on hate crimes that would reform the criminal code so as to permit the imposition of life imprisonment for political dissent, without any clear definition of what conduct would lead to such a harsh sentence, and which could be used to punish those who speak out against the government’s repressive policies; |
| --- | --- |

D.

whereas several members of the ruling party of the National Assembly have also proposed a special law on cybercrime that seeks to censor digital media, as well as a new law on hate crimes that would reform the criminal code so as to permit the imposition of life imprisonment for political dissent, without any clear definition of what conduct would lead to such a harsh sentence, and which could be used to punish those who speak out against the government’s repressive policies;

| E. | whereas these proposed laws clearly intend to limit fundamental freedoms such as the freedom of expression both online and offline, the freedom of association, and religious freedom, to further restrict the civil space for Nicaraguan citizens and to exercise totalitarian control over Nicaragua’s citizens, media outlets and civil society and human rights organisations, without any checks and balances and with large margins of discretion in their implementation through the monitoring of all their activities, with an emphasis on the political, labour and economic spheres; whereas these laws, if adopted, would violate a series of rights and fundamental freedoms enshrined in the Nicaraguan Constitution, which are all recognised in the international agreements, covenants and treaties to which Nicaragua is a party; |
| --- | --- |

E.

whereas these proposed laws clearly intend to limit fundamental freedoms such as the freedom of expression both online and offline, the freedom of association, and religious freedom, to further restrict the civil space for Nicaraguan citizens and to exercise totalitarian control over Nicaragua’s citizens, media outlets and civil society and human rights organisations, without any checks and balances and with large margins of discretion in their implementation through the monitoring of all their activities, with an emphasis on the political, labour and economic spheres; whereas these laws, if adopted, would violate a series of rights and fundamental freedoms enshrined in the Nicaraguan Constitution, which are all recognised in the international agreements, covenants and treaties to which Nicaragua is a party;

| F. | whereas these initiatives are the latest examples of such violations and corroborate a wider pattern of repression and violations of human rights and fundamental freedoms; whereas civil society figures, environmental activists, journalists, political opposition figures, members of religious communities, notably the Catholic Church, students, former political prisoners, and their families all continue to be targeted by the security forces and pro-government armed groups through arrests, criminalisation, excessive force, raids on their homes, police harassment, sexual assaults and increasing violence and intimidation faced by women activists, death threats, vandalism, public slander, and online smear campaigns; |
| --- | --- |

F.

whereas these initiatives are the latest examples of such violations and corroborate a wider pattern of repression and violations of human rights and fundamental freedoms; whereas civil society figures, environmental activists, journalists, political opposition figures, members of religious communities, notably the Catholic Church, students, former political prisoners, and their families all continue to be targeted by the security forces and pro-government armed groups through arrests, criminalisation, excessive force, raids on their homes, police harassment, sexual assaults and increasing violence and intimidation faced by women activists, death threats, vandalism, public slander, and online smear campaigns;

| G. | whereas, as stated by the UN High Commissioner for Human Rights Michelle Bachelet, ‘there has been no progress in the human rights situation and no sign that the government is constructively addressing the tensions and structural problems that triggered the socio-political crisis in April 2018’; whereas civil society organisations report that 94 persons perceived as opponents of the government are still being arbitrarily detained, mostly on trumped-up charges for unrelated offences; |
| --- | --- |

G.

whereas, as stated by the UN High Commissioner for Human Rights Michelle Bachelet, ‘there has been no progress in the human rights situation and no sign that the government is constructively addressing the tensions and structural problems that triggered the socio-political crisis in April 2018’; whereas civil society organisations report that 94 persons perceived as opponents of the government are still being arbitrarily detained, mostly on trumped-up charges for unrelated offences;

| 1. | Condemns the attempts to adopt the unconstitutional ‘Law for Regulation of Foreign Agents’, the ‘Special Law of Cyber Crime’ and the ‘Law Against Hate Crimes’, and calls on the national assembly to reject these laws, as well as any other law that would limit the fundamental freedoms of the Nicaraguan people; stresses that, if approved, these laws will provide Daniel Ortega’s government with a new repressive tool for silencing not only its critics, but any individual or organisation that receives foreign funding, which will lead to an increase in the number of victims of such repression and which will further aggravate the broader climate of intimidation and threat, leading to unacceptable human rights breaches in Nicaragua; |
| --- | --- |

1.

| 2. | Expresses its solidarity with the Nicaraguan people and condemns all the repressive actions of the Nicaraguan Government, in particular the deaths caused; condemns the repression of civil society activists, political opposition figures, students, journalists, indigenous groups, members of religious communities, notably the Catholic Church, and human rights defenders; calls for the immediate release of all political prisoners who have been arbitrarily detained, for all charges against them to be dropped and for fundamental legal safeguards to be respected; |
| --- | --- |

2.

| 3. | Urges the Nicaraguan Government to stop criminalising independent voices and to halt any aim to control and restrict the work of civil society and human rights organisations, political opposition figures, media outlets and journalists; urges the Nicaraguan Government to return confiscated property to news outlets, restore their licences to operate and restore the legal personality of non-governmental organisations; calls for full cooperation with international organisations and for them to be able to return to the country, including the Inter-American Commission on Human Rights, the Office of the UN High Commissioner for Human Rights, MESENI and the Organization of American States’ (OAS’s) International Group of Independent Experts; welcomes the UN Human Rights Council resolution of June 2020 mandating enhanced monitoring by the Office of the UN High Commissioner for Human Rights on the situation in Nicaragua, and the EU’s support for its adoption; |
| --- | --- |

3.

| 4. | Stresses that any limitations on the enjoyment of the rights to freedom of opinion and expression, both online and offline, the freedom of peaceful assembly and association, and the right to defend human rights are incompatible with Nicaragua’s Constitution and its international obligations under human rights agreements; |
| --- | --- |

4.

| 5. | Rejects the improper use of institutions and laws by Nicaragua’s authoritarian government with the intention of criminalising civil society organisations and political opponents for political and illegal purposes; in this respect, calls on the Government of Nicaragua to abide in their entirety by the commitments made in the March 2019 agreements with the opposition groups and the Civic Alliance, now encompassed in the National Coalition, with a view to reaching a democratic, peaceful and negotiated solution to the political crisis in Nicaragua; |
| --- | --- |

5.

| 6. | Reminds the Nicaraguan Government that free, credible, inclusive and transparent elections can only happen if there is no repression, and restoration of the rule of law and the respect of the constitutional rights of all Nicaraguan people materialise, including the right to freedom of expression, assembly, belief and peaceful protest; calls on the Nicaraguan Government to come to an agreement through democratic peaceful and negotiated means with the opposition groups, including the National Coalition, on electoral and institutional reforms necessary to guarantee credible, inclusive, transparent elections, currently scheduled for November 2021, all in accordance with international standards, by also implementing the recommendations of the 2011 EU Electoral Observation Mission, and of the OAS; believes, to that end, that the elections must be observed by duly accredited national and international observers; |
| --- | --- |

6.

| 7. | Expresses its dire concern over recent reports by Nicaraguan organisations that the authorities have ordered the national police to commit human rights violations and that they are being assisted in this repression by pro-government civilian groups and the ruling party’s territorial organisations, some of which are armed and organised as paramilitary groups; calls for the disarmament by the government of these paramilitary groups and calls for those responsible for violations of human rights and for undermining democracy and the rule of law to be held accountable, and also calls for a review of the controversial amnesty law, which could preclude the prosecution of those responsible for grave violations of human rights; |
| --- | --- |

7.

| 8. | In view of continued grave abuses and violations of human rights, if the proposed ‘Law for Regulation of Foreign Agents’, the ‘Special Law of Cyber Crime’, and the ‘Law Against Hate Crimes’ are adopted, if the government of Nicaragua continues lacking willingness to launch a national dialogue for a proper electoral reform, and the repression of civil society and the democratic opposition in Nicaragua continues, requests that the Council quickly enlarge the list of individuals and entities to be sanctioned, including the President and Vice-President, taking special care not to harm the Nicaraguan people; reiterates its urgent request for a global EU human rights mechanism; calls on the Council to adopt this mechanism through a decision relating to the Union’s strategic interests and objectives under Article 22(1) of the Treaty on European Union; |
| --- | --- |

8.

| 9. | Calls for a Parliament delegation to be sent to Nicaragua as soon as possible in order to resume monitoring of the situation in the country, and urges the Nicaraguan authorities to allow it unhindered entry into the country and access to all interlocutors and facilities; |
| --- | --- |

9.

| 10. | Recalls its call, in its resolution of 14 March 2019, for the immediate extradition of Alessio Casimirri, who continues to live in Managua under the protection of the Nicaraguan Government, to Italy, where he must serve six definitive life sentences for his proven involvement in the kidnapping and killing of former Prime Minister and leader of the Christian Democracy party Aldo Moro and the murder of his guards on 16 March 1978 in Rome; |
| --- | --- |

10.

| 11. | Calls on the European External Action Service, together with the EU Special Representative for Human Rights, to continue and step up its material and technical support to human rights defenders and independent media outlets in Nicaragua; calls on the Delegation of the European Union to Nicaragua and the Member States with diplomatic missions on the ground to fully implement the EU Guidelines on Human Rights Defenders; |
| --- | --- |

11.

| 12. | Recalls that, in the light of the Association Agreement between the EU and Central America, Nicaragua must respect and consolidate the principles of the rule of law, democracy and human rights, and reiterates its demand that, in the light of the current circumstances, the democratic clause of the Association Agreement be triggered; |
| --- | --- |

12.

| 13. | Stresses that EU assistance to civil society organisations should be maintained and strengthened to alleviate the impact of COVID-19; |
| --- | --- |

13.

| 14. | Instructs its President to forward this resolution to the Council, the Commission, the governments and parliaments of the Member States, the Secretary-General of the Organization of American States, the Euro-Latin American Parliamentary Assembly, the Central American Parliament, the Lima Group, and the Government and Parliament of the Republic of Nicaragua. |
| --- | --- |

14.

---

(1)  OJ C 76, 9.3.2020, p. 164.

(2)  Texts adopted, P8_TA(2019)0219.

(3)  Texts adopted, P9_TA(2019)0111.

(4)  OJ L 346, 15.12.2012, p. 3.

(5)  OJ L 262, 15.10.2019, p. 1.

(6)  OJ L 139 I , 4.5.2020, p. 1.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/58 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/58

---

P9_TA(2020)0260

The situation of Ethiopian migrants in detention centres in Saudi Arabia

European Parliament resolution of 8 October 2020 on the situation of Ethiopian migrants in detention centres in Saudi Arabia (2020/2815(RSP))

(2021/C 395/08)

The European Parliament,

| — | having regard to its previous resolutions on Saudi Arabia, in particular those of 11 March 2014 on Saudi Arabia, its relations with the EU and its role in the Middle East and North Africa (1), of 12 February 2015 on the case of Raif Badawi (2), of 8 October 2015 on the case of Ali Mohammed al-Nimr (3), of 31 May 2018 on the situation of women’s rights defenders in Saudi Arabia (4), and of 25 October 2018 on the killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul (5), as well as those of 25 February 2016 on the humanitarian situation in Yemen (6) and of 30 November 2017 (7) and 4 October 2018 (8) on the situation in Yemen, |
| --- | --- |

—

having regard to its previous resolutions on Saudi Arabia, in particular those of 11 March 2014 on Saudi Arabia, its relations with the EU and its role in the Middle East and North Africa (1), of 12 February 2015 on the case of Raif Badawi (2), of 8 October 2015 on the case of Ali Mohammed al-Nimr (3), of 31 May 2018 on the situation of women’s rights defenders in Saudi Arabia (4), and of 25 October 2018 on the killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul (5), as well as those of 25 February 2016 on the humanitarian situation in Yemen (6) and of 30 November 2017 (7) and 4 October 2018 (8) on the situation in Yemen,

| — | having regard to its resolution of 3 May 2018 on the protection of children in migration (2018/2666(RSP)) (9), |
| --- | --- |

—

having regard to its resolution of 3 May 2018 on the protection of children in migration (2018/2666(RSP)) (9),

| — | having regard to its resolution of 5 April 2017 on addressing refugee and migrant movements: the role of EU External Action (2015/2342(INI)) (10), |
| --- | --- |

—

having regard to its resolution of 5 April 2017 on addressing refugee and migrant movements: the role of EU External Action (2015/2342(INI)) (10),

| — | having regard to the statement by the International Organization for Migration (IOM) of 15 September 2020 entitled ‘Urgent Action Needed to Address Conditions in Detention in Kingdom of Saudi Arabia: IOM Director General’, |
| --- | --- |

—

having regard to the statement by the International Organization for Migration (IOM) of 15 September 2020 entitled ‘Urgent Action Needed to Address Conditions in Detention in Kingdom of Saudi Arabia: IOM Director General’,

| — | having regard to the United Nations General Assembly Resolution of 19 December 2018 entitled ‘Global Compact for Safe, Orderly and Regular Migration’, |
| --- | --- |

—

having regard to the United Nations General Assembly Resolution of 19 December 2018 entitled ‘Global Compact for Safe, Orderly and Regular Migration’,

| — | having regard to the UN Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families, |
| --- | --- |

—

having regard to the UN Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families,

| — | having regard to Rule 144(5) and 132(4) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 144(5) and 132(4) of its Rules of Procedure,

| A. | whereas since April 2020, according to Human Rights Watch reports, around 30 000 Ethiopian migrants, including pregnant women and children, are being arbitrarily detained in Saudi Arabia under horrific conditions after having been forcibly expelled from northern Yemen by Houthi authorities; whereas many of these migrants reportedly crossed the border under crossfire from Saudi and Houthi forces; whereas a reported 2 000 migrants who remain stranded on the Yemeni side of the border under dire conditions exacerbated by the outbreak of COVID-19 are fully deprived of access to basic needs; |
| --- | --- |

A.

whereas since April 2020, according to Human Rights Watch reports, around 30 000 Ethiopian migrants, including pregnant women and children, are being arbitrarily detained in Saudi Arabia under horrific conditions after having been forcibly expelled from northern Yemen by Houthi authorities; whereas many of these migrants reportedly crossed the border under crossfire from Saudi and Houthi forces; whereas a reported 2 000 migrants who remain stranded on the Yemeni side of the border under dire conditions exacerbated by the outbreak of COVID-19 are fully deprived of access to basic needs;

| B. | whereas migrant workers were violently apprehended by Saudi forces and detained in the Al-Dayer detention centre, before being transferred to ten other detention centres, notably the Shmeisi Prison between the cities of Jeddah and Mecca, and the Jizan Central Prison, which allegedly hosts thousands of Ethiopian detainees; whereas according to Ethiopian consular authorities, they lack sufficient food and water, adequate sanitation and healthcare, and gunshot wounds have not been treated; whereas several deaths, including of children, have been reported and several detainees have attempted to take their own lives; whereas those who have attempted to challenge guards about their conditions were reportedly severely tortured by the Saudi security forces; |
| --- | --- |

B.

whereas migrant workers were violently apprehended by Saudi forces and detained in the Al-Dayer detention centre, before being transferred to ten other detention centres, notably the Shmeisi Prison between the cities of Jeddah and Mecca, and the Jizan Central Prison, which allegedly hosts thousands of Ethiopian detainees; whereas according to Ethiopian consular authorities, they lack sufficient food and water, adequate sanitation and healthcare, and gunshot wounds have not been treated; whereas several deaths, including of children, have been reported and several detainees have attempted to take their own lives; whereas those who have attempted to challenge guards about their conditions were reportedly severely tortured by the Saudi security forces;

| C. | whereas migrant workers, including from African and Asian countries, make up an estimated 20 % of the population of Saudi Arabia and have played an essential role in the economies of Saudi Arabia and other countries in the region, mostly occupying low paid and often physically arduous jobs; whereas their exploitation and abuse as low-paid workers with little or no access to rights have been well documented in numerous reports by the UN and other international organisations; |
| --- | --- |

C.

whereas migrant workers, including from African and Asian countries, make up an estimated 20 % of the population of Saudi Arabia and have played an essential role in the economies of Saudi Arabia and other countries in the region, mostly occupying low paid and often physically arduous jobs; whereas their exploitation and abuse as low-paid workers with little or no access to rights have been well documented in numerous reports by the UN and other international organisations;

| D. | whereas under the Kafala system, an abusive visa sponsorship system referred to by human rights organisations as modern-day slavery, migrant workers are unable to enter or exit the country or change employment without their sponsor’s consent, lack legal protection, and are frequently unpaid or underpaid; whereas Saudi Arabia is reported to be considering abolishing the Kafala system; |
| --- | --- |

D.

whereas under the Kafala system, an abusive visa sponsorship system referred to by human rights organisations as modern-day slavery, migrant workers are unable to enter or exit the country or change employment without their sponsor’s consent, lack legal protection, and are frequently unpaid or underpaid; whereas Saudi Arabia is reported to be considering abolishing the Kafala system;

| E. | whereas, as a result of the ongoing COVID-19 pandemic, the pressure has been increasing on vulnerable groups, in particular migrant workers, inside Saudi Arabia and in other countries in the region, which has led to an increased level of discrimination and hostility towards them; whereas migrants are often stigmatised as having allegedly transmitted the COVID-19 virus, resulting in them often losing their jobs and putting them in very perilous situations without any housing or salary and hence very few means to regularise their status or finance a possible return to their home country on their own; |
| --- | --- |

E.

whereas, as a result of the ongoing COVID-19 pandemic, the pressure has been increasing on vulnerable groups, in particular migrant workers, inside Saudi Arabia and in other countries in the region, which has led to an increased level of discrimination and hostility towards them; whereas migrants are often stigmatised as having allegedly transmitted the COVID-19 virus, resulting in them often losing their jobs and putting them in very perilous situations without any housing or salary and hence very few means to regularise their status or finance a possible return to their home country on their own;

| F. | whereas in November 2017, Saudi Arabia launched a campaign targeting migrants accused of violating residential, border security and labour regulations and laws; whereas in September 2019, the authorities announced that the campaign had netted over 3,8 million arrests and had referred over 962 000 individuals for deportation; whereas about 380 000 Ethiopians were deported from Saudi Arabia to Ethiopia between May 2017 and April 2020, according to the IOM; |
| --- | --- |

F.

whereas in November 2017, Saudi Arabia launched a campaign targeting migrants accused of violating residential, border security and labour regulations and laws; whereas in September 2019, the authorities announced that the campaign had netted over 3,8 million arrests and had referred over 962 000 individuals for deportation; whereas about 380 000 Ethiopians were deported from Saudi Arabia to Ethiopia between May 2017 and April 2020, according to the IOM;

| G. | whereas the Ethiopian Government is aware of the appalling conditions under which their citizens are being held in Saudi Arabia; whereas remittances from Ethiopians abroad form an important part of the Ethiopian economy and are fundamental for many families; |
| --- | --- |

G.

whereas the Ethiopian Government is aware of the appalling conditions under which their citizens are being held in Saudi Arabia; whereas remittances from Ethiopians abroad form an important part of the Ethiopian economy and are fundamental for many families;

| H. | whereas no effective investigation has been conducted by the Saudi authorities despite them claiming that they would investigate the matter in early September 2020; whereas detention conditions have worsened, as detainees have since been beaten and stripped of their mobile phones; |
| --- | --- |

H.

whereas no effective investigation has been conducted by the Saudi authorities despite them claiming that they would investigate the matter in early September 2020; whereas detention conditions have worsened, as detainees have since been beaten and stripped of their mobile phones;

| I. | whereas the ill-treatment of migrants fits into a broader pattern of widespread human rights abuses in Saudi Arabia; whereas the Saudi authorities have used the restrictions imposed by the need to fight COVID-19 as a cover to further violate the human rights of political prisoners, such as women’s rights defender Loujain al-Hathloul, and dissenting members of the ruling family, such as Princess Basmah bimt Saud and Prince Salman bin Abdulaziz bin Salman, by keeping them in arbitrary and incommunicado detention; whereas the arrests of these and other political activists are part of a severe crackdown on dissent by the Saudi authorities, which includes the murder of the journalist Jamal Khashoggi in the Saudi consulate in Istanbul in 2018, for which there is still no proper accountability; |
| --- | --- |

I.

whereas the ill-treatment of migrants fits into a broader pattern of widespread human rights abuses in Saudi Arabia; whereas the Saudi authorities have used the restrictions imposed by the need to fight COVID-19 as a cover to further violate the human rights of political prisoners, such as women’s rights defender Loujain al-Hathloul, and dissenting members of the ruling family, such as Princess Basmah bimt Saud and Prince Salman bin Abdulaziz bin Salman, by keeping them in arbitrary and incommunicado detention; whereas the arrests of these and other political activists are part of a severe crackdown on dissent by the Saudi authorities, which includes the murder of the journalist Jamal Khashoggi in the Saudi consulate in Istanbul in 2018, for which there is still no proper accountability;

| J. | whereas, according to the UN Special Rapporteur on extrajudicial, summary or arbitrary executions, abuses are committed by the Saudi Arabian authorities through the use of electronic surveillance technology; whereas Saudi Arabia remains one of the top five executing countries in the world; |
| --- | --- |

J.

whereas, according to the UN Special Rapporteur on extrajudicial, summary or arbitrary executions, abuses are committed by the Saudi Arabian authorities through the use of electronic surveillance technology; whereas Saudi Arabia remains one of the top five executing countries in the world;

| K. | whereas the Kingdom of Saudi Arabia has one of the lowest levels of ratification of core international human rights treaties, and has not ratified the main instruments relevant to protection against arbitrary detention and immigration detention, including the International Covenant on Civil and Political Rights, the Optional Protocol to the Convention against Torture (which provides for national prevention mechanisms and detention monitoring visits), the Migrant Workers Convention, the Refugee Convention and the Convention on Statelessness; |
| --- | --- |

K.

whereas the Kingdom of Saudi Arabia has one of the lowest levels of ratification of core international human rights treaties, and has not ratified the main instruments relevant to protection against arbitrary detention and immigration detention, including the International Covenant on Civil and Political Rights, the Optional Protocol to the Convention against Torture (which provides for national prevention mechanisms and detention monitoring visits), the Migrant Workers Convention, the Refugee Convention and the Convention on Statelessness;

| L. | whereas at his meeting with the Minister of Foreign Affairs of Saudi Arabia, Faisal Bin Farhan Al Saud in Brussels on 29 September 2020, High Representative Josep Borrell reiterated the EU’s intention to intensify the dialogue on human rights; |
| --- | --- |

L.

whereas at his meeting with the Minister of Foreign Affairs of Saudi Arabia, Faisal Bin Farhan Al Saud in Brussels on 29 September 2020, High Representative Josep Borrell reiterated the EU’s intention to intensify the dialogue on human rights;

| 1. | Strongly condemns the ill-treatment of Ethiopian migrants and the violations of their human rights, notably in the detention centres in Saudi Arabia; calls on the Saudi authorities to immediately release all detainees, prioritising those in the most vulnerable situations, including women and children; |
| --- | --- |

1.

| 2. | Calls on the Saudi authorities to ensure that every person entering Saudi Arabia from Yemen is allowed to do so safely and is transferred to an appropriate reception centre that meets international standards regarding food, medical and health services, sanitary installations, personal hygiene, windows and light, clothing, floor space, temperature, ventilation and open-air exercise, as well as all necessary precautions to limit the transmission of COVID-19, tuberculosis and other illnesses; calls for attempts to find non-custodial alternatives to detention for migrants and refugees, and rejects in this sense any inhuman or degrading treatment of migrants; |
| --- | --- |

2.

| 3. | Urges Saudi Arabia to immediately end torture and other ill-treatment in detention, and to provide appropriate mental and physical care to all, with particular regard to rape survivors; recalls that, as clarified by the UN Committee on the Rights of the Child, children should never be detained for immigration purposes, and detention can never be justified as in a child’s best interests; calls on the Saudi authorities to urgently release children along with their family members, and to provide for safe non-custodial alternatives to detention to which humanitarian agencies can have regular access; |
| --- | --- |

3.

| 4. | Urges the Saudi authorities to conduct an independent and impartial investigation into all allegations of human rights violations, including firing on migrants at the border and unlawful killings, torture and other ill-treatment during detention, to hold all perpetrators to account in fair trials that meet international standards without recourse to the death penalty or corporal punishment, and to provide appropriate mental and physical care to those who have suffered under the appalling conditions; |
| --- | --- |

4.

| 5. | Urges the Saudi authorities to promptly allow independent international monitors, including the EU Special Representative for Human Rights, to enter the country, regularly monitor prison and detention facilities, carry out impartial investigations into allegations of torture and suspicious deaths in detention, and conduct private and regular visits with prisoners; |
| --- | --- |

5.

| 6. | Reiterates the call by the UN High Commissioner for Human Rights for the release of every person detained without sufficient legal basis, while ensuring adequate access to healthcare and creating conditions for the proper implementation of pandemic mitigation measures, including social distancing; |
| --- | --- |

6.

| 7. | Reminds the Saudi authorities once again of their international obligations under the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights and the UN Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment; |
| --- | --- |

7.

| 8. | Recognises that the economy of Saudi Arabia owes part of its wealth and prosperity to the roughly 13 million foreign workers and migrants inside the country, and therefore notes that the ongoing domestic modernisation process needs to include a reform of labour and immigration policies in order to provide adequate working conditions for foreign workers and to prevent their stigmatisation and exploitation; |
| --- | --- |

8.

| 9. | Calls on the Government of Saudi Arabia to work with the International Labour Organisation towards the full abolition of the Kafala system and to provide adequate legal safeguards to all migrant workers within the country, including through structural inspections of their labour conditions; is concerned about the particularly negative impact of the systemic discrimination of migrant women, and in particular migrant domestic workers who are more vulnerable to physical abuse, extremely long working hours and lack of freedom of movement, and who often suffer from their employers having control over them transferring jobs or exiting the country; calls on the Government of Saudi Arabia to ratify the fundamental ILO Conventions on Freedom of Association and Protection of the Right to Organise (No. 87) and on the Right to Organise and Collective Bargaining (No. 98); |
| --- | --- |

9.

| 10. | Demands guarantees that there will be no mass returns and that asylum applications will be examined on a case-by-case basis; |
| --- | --- |

10.

| 11. | Calls on the Government of Ethiopia to facilitate the voluntary, safe and dignified repatriation of all Ethiopian migrants as rapidly as possible, including by engaging with the IOM, prioritising women, children and vulnerable persons; demands that consular assistance and visits be made available to all detained nationals in Saudi Arabia, and encourages the Ethiopian Government to respond in a timely and effective manner to requests for support; |
| --- | --- |

11.

| 12. | Reiterates its support for the UN Global Compact for Safe, Orderly and Regular Migration, as it promotes standards that enable host countries to better protect the fundamental human rights of vulnerable groups, such as the Ethiopian economic migrants stranded in Saudi Arabia and Yemen; |
| --- | --- |

12.

| 13. | Acknowledges the fact that both Saudi Arabia and Ethiopia have a mutual interest in establishing a mechanism for cooperation on mobility that is intended to facilitate the complementarities of their labour markets, and recalls that the UN Global Compact for Safe, Orderly and Regular Migration provides advice and capacity building in this field; |
| --- | --- |

13.

| 14. | Expresses its concern about the increasing crackdown on human rights defenders in Saudi Arabia and the grossly unfair trials of migrants and members of the country’s Shi’a minority; notes the recent announcement that in most cases flogging as a form of punishment will be replaced with jail time; urges the Government of Saudi Arabia to impose an immediate moratorium on the death penalty and any form of corporal punishment, including amputation and flogging, with a view to their complete abolition; |
| --- | --- |

14.

| 15. | Calls on the EEAS and Member States to demand that Saudi Arabia immediately release all those wrongfully detained for exercising their basic rights, including women rights’ defenders, political activists and others; expresses concern regarding the situation of the wrongfully detained 2015 Sakharov Prize laureate, Raif Badawi, who was reportedly subject to an assassination attempt while in prison, and demands his immediate and unconditional release; |
| --- | --- |

15.

| 16. | Calls on the Kingdom of Saudi Arabia to refrain from any systemic discrimination against women, migrants, including migrant women, and minorities, including religious minorities; deplores the fact that, despite welcome reforms for women since 2019, discriminatory laws against women remain, including regarding their personal status, and the male guardianship system has yet to be fully abolished; |
| --- | --- |

16.

| 17. | Calls on the Saudi authorities to unconditionally release all women’s rights defenders, in particular campaigners for the Women to Drive Movement Loujain al-Hathloul and Fahad Albutairi, Samar Badawi, Nassima al-Sada, Nouf Abdulaziz and Maya’a al-Zahrani, and to drop all charges against them and against Iman al-Nafjan, Aziza al-Yousef, Amal al-Harbi, Ruqayyah al-Mharib, Shadan al-Anezi, Abir Namankni and Hatoon al-Fassi; strongly condemns all torture, sexual abuse and other forms of ill-treatment inflicted on them; requests an impartial investigation into the violation of their human rights and demands that all perpetrators be brought to justice; |
| --- | --- |

17.

| 18. | Calls on the Government of Saudi Arabia to amend Article 39 of the 1992 Basic Law and the Anti-Cyber Crime Law to guarantee the freedom of the press and of expression both offline and online; calls on the Government of Saudi Arabia to amend its Law on Associations in line with international law to allow for the establishment and operation of independent human rights organisations; |
| --- | --- |

18.

| 19. | Urges the Saudi authorities to allow the UN Special Rapporteur on the human rights of migrants and the UN Special Rapporteur on the situation of human rights defenders unfettered access to the country in line with their respective mandates; |
| --- | --- |

19.

| 20. | Calls on the EU delegation and the diplomatic missions of EU Member States in Saudi Arabia to urgently request permission to visit the migrant detention centres; insists that the promotion of human rights must be at the core of the EU’s external policy; |
| --- | --- |

20.

| 21. | Urges the VP/HR, the EEAS and the Member States, together with the EU Special Representative for Human Rights, to initiate the development of a common approach towards the effective implementation of the EU Guidelines on Human Rights Defenders in Saudi Arabia; calls, in this sense, on the VP/HR to identify specific benchmarks and practical aims prior to launching a human rights dialogue with Saudi Arabia; |
| --- | --- |

21.

| 22. | Calls on the Saudi authorities to ratify the International Covenant on Civil and Political Rights, to lift the reservations made to the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), to ratify the Optional Protocol to CEDAW, and to ratify the UN Convention on the protection of all migrant workers and members of their families, the Optional Protocol to the Convention against Torture, the 1951 Geneva Convention and the Convention on Statelessness; urges the Saudi authorities to extend a standing invitation to the visit of all Special Procedures of the UN Human Rights Council (HRC); calls for the establishment of a UN Special Rapporteur on Saudi Arabia, in line with the other HRC Special Procedures created for the most serious human rights situations worldwide; |
| --- | --- |

22.

| 23. | Reiterates its call for an end to exports to Saudi Arabia of surveillance technology and other equipment that can facilitate internal repression; |
| --- | --- |

23.

| 24. | Urges the Council once again to adopt the EU human rights sanctions mechanism as a decision relating to the Union’s strategic interests and objectives under Article 22(1) of the TEU and to ensure that, swiftly upon its adoption, EU-wide targeted sanctions are applied to those responsible for the murder of journalist Jamal Khashoggi; |
| --- | --- |

24.

| 25. | Urges the President of the European Council of Ministers, the President of the European Commission and the Member States to downgrade EU institutional and diplomatic representation at the upcoming G20 Leaders Summit, in order to avoid legitimising impunity for human rights violations and ongoing illegal and arbitrary detentions in Saudi Arabia; |
| --- | --- |

25.

| 26. | Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the European External Action Service, the UN Secretary General, the UN High Commissioner for Human Rights, the Government of Ethiopia, His Majesty King Salman bin Abdulaziz Al Saud, the Crown Prince Mohammad Bin Salman Al Saud, the Government of the Kingdom of Saudi Arabia, and the Secretary-General of the Centre for National Dialogue of the Kingdom of Saudi Arabia; calls for this resolution to be translated into Arabic. |
| --- | --- |

26.

---

(1)  OJ C 378, 9.11.2017, p. 64.

(2)  OJ C 310, 25.8.2016, p. 29.

(3)  OJ C 349, 17.10.2017, p. 34.

(4)  OJ C 76, 9.3.2020, p. 142.

(5)  OJ C 345, 16.10.2020, p. 67.

(6)  OJ C 35, 31.1.2018, p. 142.

(7)  OJ C 356, 4.10.2018, p. 104.

(8)  OJ C 11, 13.1.2020, p. 44.

(9)  OJ C 41, 6.2.2020, p. 41.

(10)  OJ C 298, 23.8.2018, p. 39.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/63 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/63

---

P9_TA(2020)0264

The rule of law and fundamental rights in Bulgaria

European Parliament resolution of 8 October 2020 on the rule of law and fundamental rights in Bulgaria (2020/2793(RSP))

(2021/C 395/09)

The European Parliament,

| — | having regard to Articles 2, 3, 4, 6, 7, 9 and 10 of the Treaty on European Union (TEU) and Article 20 of the Treaty on the Functioning of the European Union (TFEU), |
| --- | --- |

—

having regard to Articles 2, 3, 4, 6, 7, 9 and 10 of the Treaty on European Union (TEU) and Article 20 of the Treaty on the Functioning of the European Union (TFEU),

| — | having regard to the Charter of Fundamental Rights of the European Union, |
| --- | --- |

—

having regard to the Charter of Fundamental Rights of the European Union,

| — | having regard to the European Convention on Human Rights (ECHR) and the case law of the European Court of Human Rights, |
| --- | --- |

—

having regard to the European Convention on Human Rights (ECHR) and the case law of the European Court of Human Rights,

| — | having regard to the Commission Decision of 13 December 2006 establishing a mechanism for cooperation and verification of progress in Bulgaria (CVM) to address specific benchmarks in the areas of judicial reform and the fight against corruption and organised crime (1), to the corresponding annual reports for the period 2007-2019 and to the Commission report of 22 October 2019 on progress in Bulgaria under the CVM (COM(2019)0498), |
| --- | --- |

—

having regard to the Commission Decision of 13 December 2006 establishing a mechanism for cooperation and verification of progress in Bulgaria (CVM) to address specific benchmarks in the areas of judicial reform and the fight against corruption and organised crime (1), to the corresponding annual reports for the period 2007-2019 and to the Commission report of 22 October 2019 on progress in Bulgaria under the CVM (COM(2019)0498),

| — | having regard to the European Semester Country Specific Recommendations on Bulgaria published on 20 May 2020 (COM(2020)0502), |
| --- | --- |

—

having regard to the European Semester Country Specific Recommendations on Bulgaria published on 20 May 2020 (COM(2020)0502),

| — | having regard to the judgment of the European Court of Human Rights of 5 November 2009 in the case of Kolevi v. Bulgaria (2), |
| --- | --- |

—

having regard to the judgment of the European Court of Human Rights of 5 November 2009 in the case of Kolevi v. Bulgaria (2),

| — | having regard to the Commission’s 2019 Annual Management and Performance Report for the EU Budget, |
| --- | --- |

—

having regard to the Commission’s 2019 Annual Management and Performance Report for the EU Budget,

| — | having regard to the judgment of the European Court of Human Rights of 1 July 2014 in the case of Dimitrov and others v. Bulgaria (3), |
| --- | --- |

—

having regard to the judgment of the European Court of Human Rights of 1 July 2014 in the case of Dimitrov and others v. Bulgaria (3),

| — | having regard to the European Anti-Fraud Office (OLAF) report for 2019, |
| --- | --- |

—

having regard to the European Anti-Fraud Office (OLAF) report for 2019,

| — | having regard to the opinion of the Venice Commission of 9 December 2019 on draft amendments to Bulgaria’s Criminal Procedure Code and the Judicial System Act, concerning criminal investigations against top magistrates, |
| --- | --- |

—

having regard to the opinion of the Venice Commission of 9 December 2019 on draft amendments to Bulgaria’s Criminal Procedure Code and the Judicial System Act, concerning criminal investigations against top magistrates,

| — | having regard to the European Court of Auditors Special Report No 06/2019 entitled ‘Tackling fraud in EU cohesion spending: managing authorities need to strengthen detection, response and coordination’, |
| --- | --- |

—

having regard to the European Court of Auditors Special Report No 06/2019 entitled ‘Tackling fraud in EU cohesion spending: managing authorities need to strengthen detection, response and coordination’,

| — | having regard to the opinion of the Venice Commission of 9 October 2017 on Bulgaria’s Judicial System Act, |
| --- | --- |

—

having regard to the opinion of the Venice Commission of 9 October 2017 on Bulgaria’s Judicial System Act,

| — | having regard to the joint opinion of the Venice Commission and the OSCE Office for Democratic Institutions and Human Rights (ODIHR) of 19 June 2017 on amendments to Bulgaria’s Electoral Code, |
| --- | --- |

—

having regard to the joint opinion of the Venice Commission and the OSCE Office for Democratic Institutions and Human Rights (ODIHR) of 19 June 2017 on amendments to Bulgaria’s Electoral Code,

| — | having regard to the opinion of the Venice Commission of 23 October 2015 on the draft act to amend and supplement the Constitution (in the field of the judiciary) of the Republic of Bulgaria, |
| --- | --- |

—

having regard to the opinion of the Venice Commission of 23 October 2015 on the draft act to amend and supplement the Constitution (in the field of the judiciary) of the Republic of Bulgaria,

| — | having regard to the decision of the Council of Europe’s Committee of Ministers of 3 September 2020 regarding the execution of the judgments of the European Court of Human Rights in the S.Z. v. Bulgaria and Kolevi v. Bulgaria cases, |
| --- | --- |

—

having regard to the decision of the Council of Europe’s Committee of Ministers of 3 September 2020 regarding the execution of the judgments of the European Court of Human Rights in the S.Z. v. Bulgaria and Kolevi v. Bulgaria cases,

| — | having regard to the annual report for 2020 by the partner organisations to the Council of Europe Platform to Promote the Protection of Journalism and Safety of Journalists, |
| --- | --- |

—

having regard to the annual report for 2020 by the partner organisations to the Council of Europe Platform to Promote the Protection of Journalism and Safety of Journalists,

| — | having regard to Council of Europe Parliamentary Assembly Resolution 2296 (2019) of 27 June 2019 on the post-monitoring dialogue with Bulgaria, |
| --- | --- |

—

having regard to Council of Europe Parliamentary Assembly Resolution 2296 (2019) of 27 June 2019 on the post-monitoring dialogue with Bulgaria,

| — | having regard to the Council of Europe Action against Economic Crime and Corruption, |
| --- | --- |

—

having regard to the Council of Europe Action against Economic Crime and Corruption,

| — | having regard to the second compliance report on Bulgaria of 6 December 2019 by the Council of Europe’s Group of States against Corruption (GRECO), |
| --- | --- |

—

having regard to the second compliance report on Bulgaria of 6 December 2019 by the Council of Europe’s Group of States against Corruption (GRECO),

| — | having regard to the statement of the Council of Europe’s Commissioner for Human Rights of 3 September 2020 regarding police violence against journalists in Bulgaria and to her report following her visit to Bulgaria from 25 to 29 November 2019, |
| --- | --- |

—

having regard to the statement of the Council of Europe’s Commissioner for Human Rights of 3 September 2020 regarding police violence against journalists in Bulgaria and to her report following her visit to Bulgaria from 25 to 29 November 2019,

| — | having regard to the statement of the OSCE Representative on Freedom of the Media of 18 March 2020 on the brutal attack on the Bulgarian journalist Slavi Angelov, |
| --- | --- |

—

having regard to the statement of the OSCE Representative on Freedom of the Media of 18 March 2020 on the brutal attack on the Bulgarian journalist Slavi Angelov,

| — | having regard to the statement of the President of the Conference of INGOs of the Council of Europe of 9 July 2020 on the proposed amendments to Bulgaria’s Non-Profit Legal Entities Act, |
| --- | --- |

—

having regard to the statement of the President of the Conference of INGOs of the Council of Europe of 9 July 2020 on the proposed amendments to Bulgaria’s Non-Profit Legal Entities Act,

| — | having regard to the joint statement of the UN Special Rapporteurs on racism and on minority issues of 13 May 2020, |
| --- | --- |

—

having regard to the joint statement of the UN Special Rapporteurs on racism and on minority issues of 13 May 2020,

| — | having regard to the statement of the UN Special Rapporteur on violence against women, its causes and consequences of 21 October 2019, |
| --- | --- |

—

having regard to the statement of the UN Special Rapporteur on violence against women, its causes and consequences of 21 October 2019,

| — | having regard to the recent concluding observations of the UN Treaty Bodies on Bulgaria, |
| --- | --- |

—

having regard to the recent concluding observations of the UN Treaty Bodies on Bulgaria,

| — | having regard to the proposal for a new constitution of the Republic of Bulgaria submitted on 17 August 2020, |
| --- | --- |

—

having regard to the proposal for a new constitution of the Republic of Bulgaria submitted on 17 August 2020,

| — | having regard to its resolution of 3 May 2018 on media pluralism and media freedom in the European Union (4), |
| --- | --- |

—

having regard to its resolution of 3 May 2018 on media pluralism and media freedom in the European Union (4),

| — | having regard to its debate on the rule of law and fundamental rights in Bulgaria of 5 October 2020, |
| --- | --- |

—

having regard to its debate on the rule of law and fundamental rights in Bulgaria of 5 October 2020,

| — | having regard to the discussion held in the Committee of Civil Liberties, Justice and Home Affairs on 10 September 2020 on the state of play of the CVM, |
| --- | --- |

—

having regard to the discussion held in the Committee of Civil Liberties, Justice and Home Affairs on 10 September 2020 on the state of play of the CVM,

| — | having regard to the exchanges of views carried out by the Democracy, Rule of Law and Fundamental Rights Monitoring Group since it was set up by the Committee on Civil Liberties, Justice and Home Affairs on 5 September 2019, in particular the exchange of views held on 28 August 2020 on the situation in Bulgaria, |
| --- | --- |

—

having regard to the exchanges of views carried out by the Democracy, Rule of Law and Fundamental Rights Monitoring Group since it was set up by the Committee on Civil Liberties, Justice and Home Affairs on 5 September 2019, in particular the exchange of views held on 28 August 2020 on the situation in Bulgaria,

| — | having regard to the Commission communication of 30 September 2020 entitled ‘2020 Rule of Law Report: The rule of law situation in the European Union’ (COM(2020)0580) and the accompanying document entitled ‘Country Chapter on the rule of law situation in Bulgaria’ (SWD(2020)0301), |
| --- | --- |

—

having regard to the Commission communication of 30 September 2020 entitled ‘2020 Rule of Law Report: The rule of law situation in the European Union’ (COM(2020)0580) and the accompanying document entitled ‘Country Chapter on the rule of law situation in Bulgaria’ (SWD(2020)0301),

| — | having regard to Rule 132(2) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 132(2) of its Rules of Procedure,

| A. | whereas the European Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities, and whereas these values are common to the Member States in a society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail (Article 2 of the TEU); |
| --- | --- |

A.

whereas the European Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities, and whereas these values are common to the Member States in a society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail (Article 2 of the TEU);

| B. | whereas the rule of law, respect for democracy, human rights and fundamental freedoms and the values and principles enshrined in the EU Treaties and international human rights instruments are obligations incumbent on the Union and its Member States and must be complied with; |
| --- | --- |

B.

whereas the rule of law, respect for democracy, human rights and fundamental freedoms and the values and principles enshrined in the EU Treaties and international human rights instruments are obligations incumbent on the Union and its Member States and must be complied with;

| C. | whereas Article 6(3) of the TEU affirms that fundamental rights, as guaranteed by the ECHR and as arising from the constitutional traditions common to the Member States, constitute general principles of Union law; |
| --- | --- |

C.

whereas Article 6(3) of the TEU affirms that fundamental rights, as guaranteed by the ECHR and as arising from the constitutional traditions common to the Member States, constitute general principles of Union law;

| D. | whereas the Charter of Fundamental Rights of the European Union and the principles enshrined therein are part of Union primary law; |
| --- | --- |

D.

whereas the Charter of Fundamental Rights of the European Union and the principles enshrined therein are part of Union primary law;

| E. | whereas freedom of expression and media freedom and pluralism are enshrined in Article 11 of the Charter of Fundamental Rights and Article 10 of the ECHR; |
| --- | --- |

E.

whereas freedom of expression and media freedom and pluralism are enshrined in Article 11 of the Charter of Fundamental Rights and Article 10 of the ECHR;

| F. | whereas the independence of the judiciary is an essential requirement of the democratic principle of separation of powers and is enshrined in Article 19(1) of the TEU, Article 47 of the Charter of Fundamental Rights and Article 6 of the ECHR; |
| --- | --- |

F.

whereas the independence of the judiciary is an essential requirement of the democratic principle of separation of powers and is enshrined in Article 19(1) of the TEU, Article 47 of the Charter of Fundamental Rights and Article 6 of the ECHR;

| G. | whereas the Union operates on the basis of the presumption of mutual trust that Member States act in conformity with democracy, the rule of law and fundamental rights, as enshrined in the ECHR and the Charter of Fundamental Rights; |
| --- | --- |

G.

whereas the Union operates on the basis of the presumption of mutual trust that Member States act in conformity with democracy, the rule of law and fundamental rights, as enshrined in the ECHR and the Charter of Fundamental Rights;

| H. | whereas the rule of law is one of the common values on which the Union is founded and a pre-condition for the effective functioning of the entire Union, and whereas the Commission, together with Parliament and the Council, is responsible under the Treaties for guaranteeing respect for the rule of law as a fundamental value of the Union and making sure that Union law, values and principles are respected; |
| --- | --- |

H.

whereas the rule of law is one of the common values on which the Union is founded and a pre-condition for the effective functioning of the entire Union, and whereas the Commission, together with Parliament and the Council, is responsible under the Treaties for guaranteeing respect for the rule of law as a fundamental value of the Union and making sure that Union law, values and principles are respected;

| I. | whereas the systematic refusal of one Member State to comply with the fundamental values of the European Union and the Treaties to which it has freely acceded affects and threatens the Union as a whole; whereas a lack of reaction to this kind of situation would undermine the credibility of the Union; |
| --- | --- |

I.

whereas the systematic refusal of one Member State to comply with the fundamental values of the European Union and the Treaties to which it has freely acceded affects and threatens the Union as a whole; whereas a lack of reaction to this kind of situation would undermine the credibility of the Union;

| J. | whereas the Venice Commission and the OSCE ODIHR have found that the Bulgarian electoral code hinders linguistic diversity and the voting rights of citizens living abroad (5); |
| --- | --- |

J.

whereas the Venice Commission and the OSCE ODIHR have found that the Bulgarian electoral code hinders linguistic diversity and the voting rights of citizens living abroad (5);

| K. | whereas a number of incidents have been reported in recent years concerning the use of hate speech against minorities, including by government ministers; whereas parliamentary immunity is systematically used to shield members of the Bulgarian National Assembly from accountability for hate speech (6); |
| --- | --- |

K.

whereas a number of incidents have been reported in recent years concerning the use of hate speech against minorities, including by government ministers; whereas parliamentary immunity is systematically used to shield members of the Bulgarian National Assembly from accountability for hate speech (6);

| L. | whereas in recent years, reports of the misuse of Union funds in Bulgaria have been proliferating and should be thoroughly investigated; whereas in recent months, Bulgarian citizens have witnessed a large number of high-level corruption allegations, some of which have directly involved the Prime Minister; whereas also in recent months, international media have repeatedly reported possible interconnections between criminal groups and public authorities in Bulgaria; |
| --- | --- |

L.

whereas in recent years, reports of the misuse of Union funds in Bulgaria have been proliferating and should be thoroughly investigated; whereas in recent months, Bulgarian citizens have witnessed a large number of high-level corruption allegations, some of which have directly involved the Prime Minister; whereas also in recent months, international media have repeatedly reported possible interconnections between criminal groups and public authorities in Bulgaria;

| M. | whereas the Prosecutor’s Office has pressed charges against the former Minister for the Environment and Water and the former Deputy Minister for the Environment and Water, and the former Deputy Minister for the Economy, who were all immediately dismissed by the government; |
| --- | --- |

M.

whereas the Prosecutor’s Office has pressed charges against the former Minister for the Environment and Water and the former Deputy Minister for the Environment and Water, and the former Deputy Minister for the Economy, who were all immediately dismissed by the government;

| N. | whereas these revelations have led to large demonstrations and civil society protests which have run uninterrupted for more than three months, and have seen Bulgarians call for justice, respect for the rule of law, and an independent judiciary, and protest against the erosion of democracy and endemic corruption; whereas the protesters’ demands included the resignation of the government and the Prosecutor General, as well as immediate parliamentary elections; whereas these protests have allegedly been met with disproportionate violence from the law enforcement authorities; |
| --- | --- |

N.

whereas these revelations have led to large demonstrations and civil society protests which have run uninterrupted for more than three months, and have seen Bulgarians call for justice, respect for the rule of law, and an independent judiciary, and protest against the erosion of democracy and endemic corruption; whereas the protesters’ demands included the resignation of the government and the Prosecutor General, as well as immediate parliamentary elections; whereas these protests have allegedly been met with disproportionate violence from the law enforcement authorities;

| O. | whereas the right to protest is a fundamental right that cannot be subject to prohibition or control measures in a general and absolute way, and can only be restricted by legitimate, proportionate and necessary police measures, in exceptional circumstances; whereas no demonstration should be considered unprotected by this right; whereas priority must be given by law enforcement authorities to voluntary dispersal without the use of force; whereas freedom of assembly goes hand in hand with freedom of expression, stating that everyone has the right to freedom of expression, which includes the freedom to hold opinions and to receive and impart information and ideas without interference by public authorities and regardless of frontiers; |
| --- | --- |

O.

whereas the right to protest is a fundamental right that cannot be subject to prohibition or control measures in a general and absolute way, and can only be restricted by legitimate, proportionate and necessary police measures, in exceptional circumstances; whereas no demonstration should be considered unprotected by this right; whereas priority must be given by law enforcement authorities to voluntary dispersal without the use of force; whereas freedom of assembly goes hand in hand with freedom of expression, stating that everyone has the right to freedom of expression, which includes the freedom to hold opinions and to receive and impart information and ideas without interference by public authorities and regardless of frontiers;

| P. | whereas the Minister of Interior, the Minister of Finance, the Minister of Economy and the Minister of Tourism resigned on 15 July 2020 and the Minister of Justice resigned on 26 August 2020; |
| --- | --- |

P.

whereas the Minister of Interior, the Minister of Finance, the Minister of Economy and the Minister of Tourism resigned on 15 July 2020 and the Minister of Justice resigned on 26 August 2020;

| Q. | whereas the Prime Minister has announced that he will resign at the moment the National Assembly decides to hold elections to the Grand National Assembly (7); |
| --- | --- |

Q.

whereas the Prime Minister has announced that he will resign at the moment the National Assembly decides to hold elections to the Grand National Assembly (7);

| R. | whereas serious concerns over the fight against corruption in Bulgaria persist; whereas this threatens to undermine citizens’ trust in public institutions; |
| --- | --- |

R.

whereas serious concerns over the fight against corruption in Bulgaria persist; whereas this threatens to undermine citizens’ trust in public institutions;

| S. | whereas according to a special Eurobarometer survey on EU citizens’ attitudes towards corruption published in June 2020, 80 % of the Bulgarians interviewed considered corruption to be widespread in their country and 51 % considered that corruption had increased in the previous three years; |
| --- | --- |

S.

whereas according to a special Eurobarometer survey on EU citizens’ attitudes towards corruption published in June 2020, 80 % of the Bulgarians interviewed considered corruption to be widespread in their country and 51 % considered that corruption had increased in the previous three years;

| T. | whereas according to the 2020 World Justice Project Rule of Law Index, Bulgaria is placed 53rd out of 128 countries and, in the Union context, ranks last but one; whereas according to the Transparency International Corruption Perceptions Index 2019, published at the beginning of this year, Bulgaria is at the bottom of the list from the Union region countries, and ranks 74th worldwide; |
| --- | --- |

T.

whereas according to the 2020 World Justice Project Rule of Law Index, Bulgaria is placed 53rd out of 128 countries and, in the Union context, ranks last but one; whereas according to the Transparency International Corruption Perceptions Index 2019, published at the beginning of this year, Bulgaria is at the bottom of the list from the Union region countries, and ranks 74th worldwide;

| U. | whereas a vibrant civil society and pluralistic media play a vital role in promoting an open and pluralistic society and public participation in the democratic process, and in strengthening the accountability of governments; whereas media freedom in Bulgaria has been deteriorating, as evidenced by the country’s ranking in the reports published by Reporters Without Borders; whereas in the 2020 World Press Freedom Index, published in late April 2020, Bulgaria ranks 111th in the world, and last among EU Member States for the third year running; whereas the Council of Europe Platform to Promote the Protection of Journalism and Safety of Journalists contains three Level 1 alerts warning of severe and damaging violations against media freedom, on which a reply from the Bulgarian authorities is still pending; expresses its concern over the influence of third countries in the media landscape as part of a larger strategy to spread anti-EU propaganda and disinformation; |
| --- | --- |

U.

whereas a vibrant civil society and pluralistic media play a vital role in promoting an open and pluralistic society and public participation in the democratic process, and in strengthening the accountability of governments; whereas media freedom in Bulgaria has been deteriorating, as evidenced by the country’s ranking in the reports published by Reporters Without Borders; whereas in the 2020 World Press Freedom Index, published in late April 2020, Bulgaria ranks 111th in the world, and last among EU Member States for the third year running; whereas the Council of Europe Platform to Promote the Protection of Journalism and Safety of Journalists contains three Level 1 alerts warning of severe and damaging violations against media freedom, on which a reply from the Bulgarian authorities is still pending; expresses its concern over the influence of third countries in the media landscape as part of a larger strategy to spread anti-EU propaganda and disinformation;

| V. | whereas Bulgaria still has many institutional deficiencies, especially as far as the independence of the judiciary is concerned, flaws which have been acknowledged by the Commission over the years in its reports under the Cooperation and Verification Mechanism (CVM); whereas, however, in the last CVM report published on 22 October 2019, the Commission found that the progress Bulgaria had demonstrated under the CVM was sufficient to live up to the commitments it made upon its accession to the Union, and therefore recommended that the supervision mechanism be lifted; whereas once it has taken the observations of Parliament and the Council into account, the Commission still has to take a final decision as regards the lifting of the CVM; whereas a letter from President Sassoli expressed support for the lifting of the CVM, but stressed the need to implement and enforce the commitments and reforms, and highlighted the situation of the independence of the judiciary, corruption and media freedom; |
| --- | --- |

V.

whereas Bulgaria still has many institutional deficiencies, especially as far as the independence of the judiciary is concerned, flaws which have been acknowledged by the Commission over the years in its reports under the Cooperation and Verification Mechanism (CVM); whereas, however, in the last CVM report published on 22 October 2019, the Commission found that the progress Bulgaria had demonstrated under the CVM was sufficient to live up to the commitments it made upon its accession to the Union, and therefore recommended that the supervision mechanism be lifted; whereas once it has taken the observations of Parliament and the Council into account, the Commission still has to take a final decision as regards the lifting of the CVM; whereas a letter from President Sassoli expressed support for the lifting of the CVM, but stressed the need to implement and enforce the commitments and reforms, and highlighted the situation of the independence of the judiciary, corruption and media freedom;

| W. | whereas the new comprehensive mechanism for democracy, the rule of law and fundamental rights, as advocated by Parliament, with its annual monitoring cycle which would apply equally to all Member States, should cover all the values enshrined in Article 2 of the TEU and should ultimately replace the CVMs for Romania and Bulgaria; |
| --- | --- |

W.

whereas the new comprehensive mechanism for democracy, the rule of law and fundamental rights, as advocated by Parliament, with its annual monitoring cycle which would apply equally to all Member States, should cover all the values enshrined in Article 2 of the TEU and should ultimately replace the CVMs for Romania and Bulgaria;

| X. | whereas the recently published 2020 Rule of Law Report acknowledges that challenges remain for Bulgaria regarding the independence of the prosecution system with regard to the executive and points to the failure to complete an effective accountability regime for the Prosecutor General; whereas the report also mentions concerns about the effectiveness of the investigation, prosecution and adjudication of corruption cases in Bulgaria; whereas in the area of media freedom, the report highlights several concerns, from the effectiveness of the national media authorities in Bulgaria to the lack of transparency of media ownership, as well as threats and attacks against journalists; |
| --- | --- |

X.

whereas the recently published 2020 Rule of Law Report acknowledges that challenges remain for Bulgaria regarding the independence of the prosecution system with regard to the executive and points to the failure to complete an effective accountability regime for the Prosecutor General; whereas the report also mentions concerns about the effectiveness of the investigation, prosecution and adjudication of corruption cases in Bulgaria; whereas in the area of media freedom, the report highlights several concerns, from the effectiveness of the national media authorities in Bulgaria to the lack of transparency of media ownership, as well as threats and attacks against journalists;

| 1. | Deeply regrets the fact that the developments in Bulgaria have led to a significant deterioration in respect for the principles of rule of law, democracy and fundamental rights, including the independence of the judiciary, separation of powers, the fight against corruption and freedom of the media; expresses its solidarity with the people of Bulgaria in their legitimate demands and aspirations for justice, transparency, accountability and democracy; |
| --- | --- |

1.

| 2. | Stresses that it is fundamentally important to guarantee that the values listed in Article 2 of the TEU are upheld in full, and that fundamental rights as laid down in the Charter of Fundamental Rights are guaranteed; calls on the Bulgarian authorities to ensure full and unconditional respect for those values and rights; |
| --- | --- |

2.

| 3. | Takes note of the proposal to convene the Grand National Assembly in order to adopt a new constitution; stresses that any constitutional reform should be subject to thorough and inclusive debate and based on proper consultations with all stakeholders, notably civil society, and adopted with the broadest possible consensus; takes note of the letter sent by the President of the National Assembly to the President of the Venice Commission on 18 September 2020 submitting an official request for the provision of expert support and the issuance of an opinion by the Venice Commission on the draft new constitution of the Republic of Bulgaria; calls on the Bulgarian authorities to proactively seek evaluation by the Venice Commission and other relevant international organisation bodies on the measures at stake before their final approval; |
| --- | --- |

3.

| 4. | Takes note of the adoption at second reading of amendments to the Bulgarian Electoral Code; notes with concern that the Bulgarian Parliament is currently in the process of adopting a new electoral law, while ordinary parliamentary elections have to take place in no later than seven months’ time; calls on the Bulgarian authorities to ensure full compliance of the electoral legislation with all the recommendations of the Venice Commission and the OSCE ODIHR, in particular as regards stability of the fundamental elements of electoral law, which should not be open to amendment less than one year before an election; |
| --- | --- |

4.

| 5. | Is deeply convinced that the Bulgarian Parliament should play a pivotal role in ensuring accountability of the executive and is one of the necessary checks and balances to uphold the rule of law; is concerned by the governing majority’s practice of hastily passing legislation, often without proper debate or stakeholder consultation; takes notes of the very low level of public trust in the Bulgarian Parliament (8); regrets the recent restrictions imposed on journalists on the premises of the National Assembly, which limit their access to parliamentarians and thus the possibilities for media scrutiny over the work of the legislature; |
| --- | --- |

5.

| 6. | Is deeply concerned by the fact that some systemic issues in the judiciary system identified by the European Court of Human Rights and the Venice Commission remain unresolved, in particular as regards the provisions relating to the Supreme Judicial Council and the Prosecutor General, notably the absence of any effective mechanisms for accountability or functioning checks and balances on their work; insists that the Bulgarian authorities fully comply with the case law of the European Court of Human Rights and the recommendations of the Venice Commission and GRECO pertaining to the judiciary, in particular as regards the Supreme Judicial Council and the status of the Prosecutor General, in order to ensure the independence of the judiciary; notes that the Commission report of 22 October 2019 on progress in Bulgaria under the CVM mentions that a broad debate has taken place in the media, with some stakeholders voicing concerns regarding the nomination procedure and main candidate for the Prosecutor General, and that street protests were organised by civil society organisations; |
| --- | --- |

6.

| 7. | Is concerned about the continuous lack of high-level corruption investigations yielding any tangible results; notes that corruption, inefficiency, and a lack of accountability continue to be pervasive problems in the judiciary and that public trust in the judicial system remains low because of the perception that magistrates are susceptible to political pressure and render unequal justice; notes the increased number of investigations into high-level corruption, including cases with cross-border aspects, opened against high-ranking officials and persons of high public interest; notes with concern the discrepancies between the decisions of lower and upper instance courts, which also contribute to the lack of final and effective convictions; points out the necessity of conducting serious, independent and active investigations and achieving results in the areas of anti-corruption, organised crime and money laundering, and of thoroughly looking into the allegations of high-level corruption following the audio recordings that emerged in the summer of 2020 and in relation to the Apartment-gate and Guesthouse-gate scandals, the tanker affair, the Rosenets seaside estate case and the scandal surrounding the alleged illegal transfer of money from the Bulgarian Development Bank, all of which — taken together — suggest deep and systemic weaknesses in rule of law and anti-corruption measures in Bulgaria; expresses concern, moreover, at less high-profile examples of rule of law shortcomings in Bulgaria, such as the treatment of apartment owners at Sunset Resort, Pomorie; welcomes the establishment of a new unified anti-corruption agency in Bulgaria; calls on the Bulgarian authorities to ensure that the agency is able to manage the broad remit of its responsibilities effectively, including the prevention, investigation and forfeiture of illegal assets; |
| --- | --- |

7.

| 8. | Expresses deep concern at the serious deterioration of media freedom in Bulgaria over the past decade; calls on the Bulgarian authorities to foster a favourable environment for freedom of expression, in particular by increasing transparency of media ownership and preventing the excessive concentration of ownership of media and of distribution networks, including through the proper application of the existing legislative framework, as well as by repealing criminal provisions against defamation offences; underlines the need to make the composition and mandate of the Council for Electronic Media more independent and effective; is concerned about the reports of the continued practice of influencing the media through the preferential allocation of Union funds to government-friendly media; |
| --- | --- |

8.

| 9. | Notes that the protection of journalists is in the vital interest of society; calls on the Bulgarian authorities to ensure the protection of journalists at all times and thus safeguard their independence; strongly condemns the instances where government-critical journalists have become the target of smear campaigns and calls on the Bulgarian authorities to curtail these undemocratic practices; deplores incidents of violence against reporters and the destruction of their technical equipment; urges the Bulgarian authorities to launch a comprehensive investigation into all cases of violence against journalists covering the protests; calls on the Bulgarian authorities to ensure that police officers and other officials respect press freedom and allow journalists and media professionals to cover demonstrations safely; stresses that violence at the hands of state agents is contrary to the duty of the Member States to uphold press freedom and to protect the safety of journalists (9); |
| --- | --- |

9.

| 10. | Calls on the Bulgarian authorities to fully and comprehensively address all alerts submitted on the Council of Europe Platform to Promote the Protection of Journalism and Safety of Journalists, and to fully adhere to the recommendations of the Council of Europe Commissioner for Human Rights, in order to ensure a safe environment for journalists in Bulgaria; |
| --- | --- |

10.

| 11. | Expresses its unequivocal support for the people of Bulgaria in their legitimate demands and aspirations for justice, transparency, accountability and democracy; firmly believes that peaceful demonstrations are a fundamental right in every democratic country and supports the right of people to protest peacefully; condemns any form of violence against peaceful demonstrations; underlines that freedom of expression and freedom of information must be respected at all times; highlights that the use of violence and disproportionate force is unacceptable; expresses particular dismay at the allegations of the use of force against women and children, including children with disabilities; is concerned by the unlawful and excessive audits conducted into private businesses that have publicly expressed their support for the protests; condemns the violent and disproportionate intervention by the police during the protests in July, August and September 2020; calls on the Bulgarian authorities to ensure a full, transparent, impartial and effective investigation into the actions of the police; |
| --- | --- |

11.

| 12. | Condemns the inhumane conditions in Bulgarian prisons found by the European Court of Human Rights, including the existence of overcrowding, poor sanitary and material conditions, limited possibilities for out-of-cell activities, inadequate medical care and the prolonged application of restrictive penitentiary regimes (10); |
| --- | --- |

12.

| 13. | Expresses deep concern at the fact that following over 45 judgments against Bulgaria by the European Court of Human Rights, the Bulgarian authorities have failed to comply with their obligation to carry out effective investigations; considers that these recurrent shortcomings have revealed the existence of a systemic problem (11); highlights that according to the Council of Europe’s 2019 annual report on the supervision of the execution of judgments and decisions of the European Court of Human Rights, there are 79 leading judgments against Bulgaria that are pending implementation; |
| --- | --- |

13.

| 14. | Is concerned that in spite of the several EU directives on procedural rights for suspects and accused persons, as set out in the 2009 roadmap, procedural rights are not being sufficiently upheld in Bulgaria; believes that this has a profound impact on fundamental rights (12); |
| --- | --- |

14.

| 15. | Condemns all instances of hate speech, discrimination and hostility against people of Romani origin, women, LGBTI people and persons belonging to other minority groups, which remains an issue of acute concern; calls on the authorities to respond vigorously to incidents of hate speech, including by high-level politicians, to enhance legal protection against discrimination and hate crimes, and to investigate and prosecute such crimes effectively; welcomes the judicial ban of the annual neo-Nazi ‘Lukov March’ and the opening of an investigation into the organisation behind it — the ‘BNU’; calls on the Bulgarian Government to enhance cooperation with international and local human rights monitors and to take all the necessary measures to safeguard the rights of minorities effectively, in particular the rights to freedom of expression and freedom of association, including through implementation of the relevant judgments of the European Court of Human Rights (13); calls on Bulgarian authorities and officials to firmly condemn all acts of violence and hate speech against minorities; |
| --- | --- |

15.

| 16. | Deplores the climate of hostility against people of Romani origin in some populated communities, particularly against those who had to leave their homes following rallies targeting their communities in several localities; deplores the mobbing and violent evictions of Roma people in the Voyvodinovo area; calls on the authorities to urgently address the situation of the persons affected; believes that resolute measures to improve the general housing situation of people of Romani origin should continue; believes that it is necessary to fully eradicate the educational segregation of children of Romani origin; calls on the authorities to put a stop to hate speech and racial discrimination against people from the Romani minority in the response to COVID-19, and to halt police operations targeting Romani neighbourhoods during the pandemic; |
| --- | --- |

16.

| 17. | Takes note of the ruling of the Constitutional Court of 27 July 2018 regarding the incompliance of the Istanbul Convention with the Constitution of Bulgaria; regrets the fact that this decision prevents Bulgaria from ratifying the Convention; is deeply concerned by the persistent negative and misrepresentative public discourse regarding the Convention, which has been shaped by a widespread disinformation and smear campaign following negative coverage on the topic by several media outlets with alleged links to government and opposition parties, made all the more worrisome by the participation of politicians and political parties represented in the Bulgarian Parliament; is concerned that the persistent negative attitude towards the Convention further contributes to the stigmatisation of vulnerable groups at risk of gender-based violence, whose situation has been particularly exacerbated by the COVID-19 and lockdown measures throughout Europe, including Bulgaria, and further emboldens and inculcates a feeling of impunity among the perpetrators of gender-based crimes; regrets the fact that recent changes to the Criminal Code which introduced stricter penalties for gender-based violence have proven insufficient to address the complexity of the issue and above all to prevent it; calls on the Bulgarian authorities, therefore, to enhance the prevention and fight against domestic violence, to do what is necessary to allow for the ratification of the Istanbul Convention, and to introduce as many elements from the Convention which are in line with its constitutional order while seeking a broader solution for the remaining elements, as well as increasing the number of shelters and other social services needed to provide support for the victims of domestic violence; |
| --- | --- |

17.

| 18. | Considers it necessary to eliminate discrimination against persons on the basis of their sexual orientation or gender identity, both in law and in practice in all spheres; calls on the Bulgarian authorities to amend the Protection against Discrimination Act to explicitly include gender identity as grounds for discrimination; calls on the Bulgarian authorities to amend the current Criminal Code to encompass hate crimes and hate speech on grounds of sexual orientation, gender identity and expression, and sex characteristics; calls on the Bulgarian authorities to implement the relevant case law of the Court of Justice and the European Court of Human Rights and, in that context, to address the situation of same-sex spouses and parents with a view to ensuring their enjoyment of the right to non-discrimination in law and in fact, and to establish an appropriate legal framework that provides equal rights for all couples; |
| --- | --- |

18.

| 19. | Is concerned that persons who may be in need of international protection have been prevented from entering Bulgarian territory or expelled, at times with force, without the opportunity to apply for asylum or an individualised assessment (14); is particularly concerned about the troubling deportation of members of the Turkish opposition, in violation of international treaties and despite valid court orders issued by competent Bulgarian courts (15); calls on the Bulgarian authorities to ensure full compliance of asylum legislation and practice with the asylum acquis and the Charter of Fundamental Rights; calls on the Commission to deal with the infringement procedure against Bulgaria as a matter of priority; |
| --- | --- |

19.

| 20. | Expresses deep concerns about the proposed amendments to the Non-Profit Legal Entities Act, which would create a very hostile environment for those civil society organisations with public benefit status that are in receipt of foreign funding, and risk conflicting with the principle of freedom of association and the right to privacy (16); urges the Bulgarian authorities to consider thoroughly the established case law of the European Court of Justice in this regard; |
| --- | --- |

20.

| 21. | Notes that certain progress has been made by Bulgaria under the CVM; calls on the Bulgarian Government to cooperate with the Commission, in accordance with the principle of sincere cooperation as set out in the TEU, in continued implementation of its commitments; calls on the Bulgarian authorities to refrain from conducting any unilateral reforms which would put respect for the rule of law at risk, in particular the independence of the judiciary and the separation of powers; notes that the Commission has indicated that it will not yet lift the CVM for Bulgaria; calls on the Commission to continue to monitor the reform of the judiciary and the fight against corruption in Bulgaria in the framework of the CVM, for as long as a fully functioning mechanism to monitor respect for democracy, the rule of law and fundamental rights, applicable equally to all Member States, is not yet in place; calls on the Commission, furthermore, to also make use of other tools available where appropriate, including infringement procedures, the Rule of Law Framework and budgetary tools, once available; |
| --- | --- |

21.

| 22. | Welcomes the publication of the first EU Annual Rule of Law Report to cover all Member States; notes the concerns identified by the Commission in a number of areas regarding Bulgaria; calls on the Bulgarian authorities to act swiftly in order to address these concerns; |
| --- | --- |

22.

| 23. | Highlights the need for the Bulgarian Government, in cooperation with the Commission, to ensure stricter control on the way Union funds are spent and to immediately address concerns that taxpayers’ money is being used for the enrichment of circles associated with the ruling party; |
| --- | --- |

23.

| 24. | Welcomes Bulgaria’s accession to the European Public Prosecutor’s Office (EPPO) and is confident that its participation in the EPPO will in itself constitute a stricter control on the correct use of EU funds in this regard; |
| --- | --- |

24.

| 25. | Reiterates its position on the proposal for a regulation of the European Parliament and of the Council on the protection of the Union’s budget in case of generalised deficiencies as regards the rule of law in the Member States (17), including the need to safeguard the rights of beneficiaries, and calls on the Council to start interinstitutional negotiations as soon as possible; |
| --- | --- |

25.

| 26. | Calls on the Bulgarian authorities to investigate the revelations contained in the FinCEN files, which showed that three Bulgarian banks were involved in processing payments identified as being at high risk of money laundering and linked to financing of organised crime and terrorism; takes the view that Bulgaria needs to take decisive action to improve the supervision of the banking sector and step up anti-money laundering measures, including through strengthening the institutions investigating these issues; underlines that the FinCEN files revealed the deficiencies of the global system and its vulnerability to abuse by criminals and the corrupt, and highlighted the urgent need to improve banking supervision worldwide and to adopt better mechanisms to deal with cross-border transactions; calls on the Commission and the Member States to accelerate work in this area, including through the establishment of a European supervisory authority, which Parliament has called for already; |
| --- | --- |

26.

| 27. | Instructs its President to forward this resolution to the Commission, the Council, the governments and parliaments of the Member States, the Council of Europe, the Organization for Security and Co-operation in Europe and the United Nations. |
| --- | --- |

27.

---

(1)  OJ L 354, 14.12.2006, p. 58.

(2)  Judgment of the European Court of Human Rights of 5 November 2009, Kolevi v. Bulgaria (application No 1108/02).

(3)  Judgment of the European Court of Human Rights of 1 July 2014, Dimitrov and others v. Bulgaria (application No 77938/11).

(4)  OJ C 41, 6.2.2020, p. 64.

(5)  Venice Commission and OSCE ODIHR joint opinion on amendments to the Electoral Code in Bulgaria, 19 June 2017, CDL-AD(2017)016.

(6)  Commissioner for Human Rights of the Council of Europe, report following her visit to Bulgaria from 25 to 29 November 2019, 31 March 2020, p. 33 and p. 38.

(7)  https://government.bg/bg/prestsentar/novini/obrashtenie-na-ministar-predsedatelya-boyko-borisov

(8)  https://www.gallup-international.bg/43810/public-opinion-political-situation/

(9)  Commissioner for Human Rights of the Council of Europe, statement entitled ‘Bulgaria must investigate police violence against journalists’, Strasbourg, 3 September 2020.

(10)  See the judgments of 27 January 2015, Neshkov and others v. Bulgaria (application Nos 36925/10, 21487/12, 72893/12, 73196/12, 77718/12 and 9717/13); 12 May 2017, Simeonovi v. Bulgaria (application No 21980/04); 21 January 2016, Boris Kostadinov v. Bulgaria (application No 61701/11); 29 June 2017, Dimcho Dimov v. Bulgaria (No 2) (application No 77248/12); 17 November 2015, Dimitrov and Ridov v. Bulgaria (application No 34846/08) and 5 October 2017, Kormev v. Bulgaria (application No 39014/12).

(11)  See European Court of Human Rights judgment of 3 March 2015, S.Z. v. Bulgaria (application No 29263/12).

(12)  See the latest periodic visit reports of the European Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment.

(13)  Judgments of 19 January 2006, The United Macedonian Organisation Ilinden and others v. Bulgaria (application No 59491/00); 18 October 2011, The United Macedonian Organisation Ilinden and others v. Bulgaria (No 2) (application No 34960/04); 11 January 2018, The United Macedonian Organisation Ilinden and others v. Bulgaria (No 3) (application No 29496/16) and 11 January 2018, Yordan Ivanov and others v. Bulgaria (application No 70502/13).

(14)  UN Human Rights Committee, Concluding observations on the fourth periodic report of Bulgaria, 15 November 2018, paragraphs 29 and 30.

(15)  European Court of Human Rights, pending application, Abdullah Büyük v. Bulgaria (application No 23843/17); United States Department of State, Bureau of Democracy, Human Rights and Labor, Bulgaria 2016 Human Rights Report, p. 16.

(16)  Council of Europe, statement by the President of the Conference of INGOs, ‘The proposed amendments to the Non-Profit Legal Entities Act in Bulgaria give rise for concern’, 9 July 2020.

(17)  Texts adopted, P8_TA(2019)0349.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/72 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/72

---

P9_TA(2020)0265

Digital Finance: emerging risks in crypto-assets — regulatory and supervisory challenges in the area of financial services, institutions and markets

European Parliament resolution of 8 October 2020 with recommendations to the Commission on Digital Finance: emerging risks in crypto-assets — regulatory and supervisory challenges in the area of financial services, institutions and markets (2020/2034(INL))

(2021/C 395/10)

The European Parliament,

| — | having regard to Article 225 of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 225 of the Treaty on the Functioning of the European Union,

| — | having regard to Articles 7 and 8 of the Charter of Fundamental Rights of the European Union, |
| --- | --- |

—

having regard to Articles 7 and 8 of the Charter of Fundamental Rights of the European Union,

| — | having regard to Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data and repealing Directive 95/46/EC (General Data Protection Regulation) (1), |
| --- | --- |

—

having regard to Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data and repealing Directive 95/46/EC (General Data Protection Regulation) (1),

| — | having regard to Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (2), |
| --- | --- |

—

having regard to Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (2),

| — | having regard to Directive (EU) 2015/849 of the European Parliament and the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (3), |
| --- | --- |

—

having regard to Directive (EU) 2015/849 of the European Parliament and the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (3),

| — | having regard to the Communication from the Commission of 19 February 2020 entitled ‘A European Strategy for Data’ (COM(2020)0066), |
| --- | --- |

—

having regard to the Communication from the Commission of 19 February 2020 entitled ‘A European Strategy for Data’ (COM(2020)0066),

| — | having regard to the Communication from the Commission of 8 March 2018 entitled ‘FinTech Action plan: For a more competitive and innovative European financial sector’ (COM(2018)0109), |
| --- | --- |

—

having regard to the Communication from the Commission of 8 March 2018 entitled ‘FinTech Action plan: For a more competitive and innovative European financial sector’ (COM(2018)0109),

| — | having regard to the Commission and High Representative of the Union for Foreign Affairs and Security policy’s Joint Communication of 6 April 2016 entitled ‘Joint Framework on countering hybrid threats — a European Union response’ (JOIN(2016)0018), |
| --- | --- |

—

having regard to the Commission and High Representative of the Union for Foreign Affairs and Security policy’s Joint Communication of 6 April 2016 entitled ‘Joint Framework on countering hybrid threats — a European Union response’ (JOIN(2016)0018),

| — | having regard to the White Paper of the Commission of 19 February 2020 entitled ‘Artificial Intelligence — A European approach to excellence and trust’ (COM(2020)0065), |
| --- | --- |

—

having regard to the White Paper of the Commission of 19 February 2020 entitled ‘Artificial Intelligence — A European approach to excellence and trust’ (COM(2020)0065),

| — | having regard to the answer given by Vice-President Dombrovskis on behalf of the Commission to the Question E-001130/2017, |
| --- | --- |

—

having regard to the answer given by Vice-President Dombrovskis on behalf of the Commission to the Question E-001130/2017,

| — | having regard to the Final report of the Directorate-General for Financial Stability, Financial Services and Capital Markets Union of the Commission of October 2019 entitled ‘Governance for a DLT/ Blockchain enabled European electronic Access Point (EEAP)’ (4), |
| --- | --- |

—

having regard to the Final report of the Directorate-General for Financial Stability, Financial Services and Capital Markets Union of the Commission of October 2019 entitled ‘Governance for a DLT/ Blockchain enabled European electronic Access Point (EEAP)’ (4),

| — | having regard to the study of the Commission on the application of the Interchange Fee Regulation (5), |
| --- | --- |

—

having regard to the study of the Commission on the application of the Interchange Fee Regulation (5),

| — | having regard to the public consultation of the Commission of 17 February 2020 on the ‘Review of the regulatory framework for investment firms and market operators’, |
| --- | --- |

—

having regard to the public consultation of the Commission of 17 February 2020 on the ‘Review of the regulatory framework for investment firms and market operators’,

| — | having regard to the Final Report of the High Level Forum on the Capital Markets Union of the Commission of 10 June 2020 entitled ‘A New Vision for Europe’s Capital Markets’ (6), |
| --- | --- |

—

having regard to the Final Report of the High Level Forum on the Capital Markets Union of the Commission of 10 June 2020 entitled ‘A New Vision for Europe’s Capital Markets’ (6),

| — | having regard to the Final report of the Commission’s Expert Group on Regulatory Obstacles to Financial Innovation: 30 recommendations on regulation, innovation and finance of 13 December 2019, |
| --- | --- |

—

having regard to the Final report of the Commission’s Expert Group on Regulatory Obstacles to Financial Innovation: 30 recommendations on regulation, innovation and finance of 13 December 2019,

| — | having regard to the Joint Advice of the European Supervisory Authorities to the European Commission on the need for legislative improvements relating to ICT risk management requirements in the EU financial sector of 10 April 2019, |
| --- | --- |

—

having regard to the Joint Advice of the European Supervisory Authorities to the European Commission on the need for legislative improvements relating to ICT risk management requirements in the EU financial sector of 10 April 2019,

| — | having regard to the Joint Advice of the European Supervisory Authorities to the European Commission on the costs and benefits of developing a coherent cyber resilience testing framework for significant market participants and infrastructures within the whole EU financial sector of 10 April 2019, |
| --- | --- |

—

having regard to the Joint Advice of the European Supervisory Authorities to the European Commission on the costs and benefits of developing a coherent cyber resilience testing framework for significant market participants and infrastructures within the whole EU financial sector of 10 April 2019,

| — | having regard to the joint report of the European Supervisory Authorities entitled ‘FinTech: Regulatory sandboxes and innovation hubs’ of 7 January 2019 (7), |
| --- | --- |

—

having regard to the joint report of the European Supervisory Authorities entitled ‘FinTech: Regulatory sandboxes and innovation hubs’ of 7 January 2019 (7),

| — | having regard to the European Banking Authorities’ Guidelines on ICT and security risk management of 29 November 2019, |
| --- | --- |

—

having regard to the European Banking Authorities’ Guidelines on ICT and security risk management of 29 November 2019,

| — | having regard to the European Banking Authority Report with advice for the European Commission on crypto-assets of 9 January 2019, |
| --- | --- |

—

having regard to the European Banking Authority Report with advice for the European Commission on crypto-assets of 9 January 2019,

| — | having regard to the advice of the European Securities and Markets Authority to the Commission on Initial Coin Offerings and Crypto-Assets of 9 January 2019, |
| --- | --- |

—

having regard to the advice of the European Securities and Markets Authority to the Commission on Initial Coin Offerings and Crypto-Assets of 9 January 2019,

| — | having regard to the European Commission’s Consultation Paper on an EU framework for markets in crypto-assets of December 2019, |
| --- | --- |

—

having regard to the European Commission’s Consultation Paper on an EU framework for markets in crypto-assets of December 2019,

| — | having regard to its legislative resolution of 27 March 2019 on the proposal for a regulation of the European Parliament and of the Council on European Crowdfunding Service Providers (ECSP) for Business (8), |
| --- | --- |

—

having regard to its legislative resolution of 27 March 2019 on the proposal for a regulation of the European Parliament and of the Council on European Crowdfunding Service Providers (ECSP) for Business (8),

| — | having regard to its resolution of 3 October 2018 on distributed ledger technologies and blockchains: building trust with disintermediation (9), |
| --- | --- |

—

having regard to its resolution of 3 October 2018 on distributed ledger technologies and blockchains: building trust with disintermediation (9),

| — | having regard to its resolution of 17 May 2017 on FinTech: the influence of technology on the future of the financial sector (10), |
| --- | --- |

—

having regard to its resolution of 17 May 2017 on FinTech: the influence of technology on the future of the financial sector (10),

| — | having regard to its resolution of 16 February 2017 with recommendations to the Commission on Civil Law Rules on Robotics (11), |
| --- | --- |

—

having regard to its resolution of 16 February 2017 with recommendations to the Commission on Civil Law Rules on Robotics (11),

| — | having regard to the study requested by the European Parliament's Committee on Economic and Monetary Affairs entitled ‘Crypto-assets: Key developments, regulatory concerns and responses’ of April 2020, |
| --- | --- |

—

having regard to the study requested by the European Parliament's Committee on Economic and Monetary Affairs entitled ‘Crypto-assets: Key developments, regulatory concerns and responses’ of April 2020,

| — | having regard to the study requested by the European Parliament's Committee on Internal Market and Consumer Protection ‘Consumer Protection: Aspects of Financial Services’ of February 2014, |
| --- | --- |

—

having regard to the study requested by the European Parliament's Committee on Internal Market and Consumer Protection ‘Consumer Protection: Aspects of Financial Services’ of February 2014,

| — | having regard to the report of the European Central Bank on implications of digitalization in retail payments for the Eurosystem’s catalyst role of July 2019, |
| --- | --- |

—

having regard to the report of the European Central Bank on implications of digitalization in retail payments for the Eurosystem’s catalyst role of July 2019,

| — | having regard to Benoît Coeure’s keynote speech ‘FinTech for the People’ of 31 January 2019, |
| --- | --- |

—

having regard to Benoît Coeure’s keynote speech ‘FinTech for the People’ of 31 January 2019,

| — | having regard to Yves Mersch’s keynote speech ‘Lending and payment systems in upheaval: the FinTech challenge’ of 26 February 2019, at the 3rd Annual Conference on FinTech and Digital Innovation, |
| --- | --- |

—

having regard to Yves Mersch’s keynote speech ‘Lending and payment systems in upheaval: the FinTech challenge’ of 26 February 2019, at the 3rd Annual Conference on FinTech and Digital Innovation,

| — | having regard to the report by the Financial Stability Board ‘Decentralized financial technologies: Report on financial stability, regulatory and governance implications’ of 6 June 2019, |
| --- | --- |

—

having regard to the report by the Financial Stability Board ‘Decentralized financial technologies: Report on financial stability, regulatory and governance implications’ of 6 June 2019,

| — | having regard to the report by the Financial Stability Board on ‘FinTech and market structure in financial services: Market developments and potential financial stability implications’ of 14 February 2019, |
| --- | --- |

—

having regard to the report by the Financial Stability Board on ‘FinTech and market structure in financial services: Market developments and potential financial stability implications’ of 14 February 2019,

| — | having regard to the report by the Financial Stability Board ‘Crypto-assets: Report to the G20 on work by the FSB and standard-setting bodies’ of 16 July 2018, |
| --- | --- |

—

having regard to the report by the Financial Stability Board ‘Crypto-assets: Report to the G20 on work by the FSB and standard-setting bodies’ of 16 July 2018,

| — | having regard to the report by the Financial Stability Board on ‘Financial Stability Implications from FinTech, Supervisory and Regulatory Issues that Merit Authorities’ Attention of 27 June 2017, |
| --- | --- |

—

having regard to the report by the Financial Stability Board on ‘Financial Stability Implications from FinTech, Supervisory and Regulatory Issues that Merit Authorities’ Attention of 27 June 2017,

| — | having regard to the consultative document by the Financial Stability Board ‘Addressing the regulatory, supervisory and oversight challenges raised by “global stablecoin” arrangements’ of 14 April 2020, |
| --- | --- |

—

having regard to the consultative document by the Financial Stability Board ‘Addressing the regulatory, supervisory and oversight challenges raised by “global stablecoin” arrangements’ of 14 April 2020,

| — | having regard to the investigation of the G7 Working Group on Stablecoins on the impact of global stablecoins of October 2019, |
| --- | --- |

—

having regard to the investigation of the G7 Working Group on Stablecoins on the impact of global stablecoins of October 2019,

| — | having regard to the Financial Action Task Force’s ‘Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers’ of June 2019, |
| --- | --- |

—

having regard to the Financial Action Task Force’s ‘Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers’ of June 2019,

| — | having regard to the Financial Action Task Force’s Recommendations as updated in June 2019, in particular Recommendation 16 on wire transfers, |
| --- | --- |

—

having regard to the Financial Action Task Force’s Recommendations as updated in June 2019, in particular Recommendation 16 on wire transfers,

| — | having regard to the analysis of the Bank for International Settlements ‘Policy responses to FinTech: a cross-country overview’ of January 2020, |
| --- | --- |

—

having regard to the analysis of the Bank for International Settlements ‘Policy responses to FinTech: a cross-country overview’ of January 2020,

| — | having regard to Fernando Restoy’s intervention ‘Regulating FinTech: what is going on, and where are the challenges?’ of 16 October 2019, at the ASBA-BID-FELABAN XVI Banking public-private sector regional policy dialogue, |
| --- | --- |

—

having regard to Fernando Restoy’s intervention ‘Regulating FinTech: what is going on, and where are the challenges?’ of 16 October 2019, at the ASBA-BID-FELABAN XVI Banking public-private sector regional policy dialogue,

| — | having regard to Rules 47 and 54 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 47 and 54 of its Rules of Procedure,

| — | having regard to the report of the Committee on Economic and Monetary Affairs (A9-0161/2020), |
| --- | --- |

—

having regard to the report of the Committee on Economic and Monetary Affairs (A9-0161/2020),

| A. | whereas digital finance is a consistently evolving area of the financial sector which deserves ongoing monitoring and consideration both on an industry and regulatory level; |
| --- | --- |

A.

whereas digital finance is a consistently evolving area of the financial sector which deserves ongoing monitoring and consideration both on an industry and regulatory level;

| B. | whereas the Union's internal market is characterised by open competition and aims to create a level playing field through a harmonised regulatory framework, reliance on international standards, supervisory convergence and supervisory cooperation; whereas the Union’s digital finance strategy should therefore be based on the same principles; |
| --- | --- |

B.

whereas the Union's internal market is characterised by open competition and aims to create a level playing field through a harmonised regulatory framework, reliance on international standards, supervisory convergence and supervisory cooperation; whereas the Union’s digital finance strategy should therefore be based on the same principles;

| C. | whereas there is a need for a balanced approach in regulating FinTechs in encouraging innovation and ensuring a high degree of investor protection and financial stability; |
| --- | --- |

C.

whereas there is a need for a balanced approach in regulating FinTechs in encouraging innovation and ensuring a high degree of investor protection and financial stability;

| D. | whereas the term ‘crypto-assets’ is used to refer to a wide variety of digital assets, including but not limited to virtual currencies and tokens, but sometimes excluding certain forms of stablecoins or certain tokens such as security tokens; |
| --- | --- |

D.

whereas the term ‘crypto-assets’ is used to refer to a wide variety of digital assets, including but not limited to virtual currencies and tokens, but sometimes excluding certain forms of stablecoins or certain tokens such as security tokens;

| E. | whereas the two most common components of crypto-assets adopted are (i) the private nature of the entitlement regarding the underlying asset, claim or right, and (ii) the use of cryptography and distributed ledger technology (DLT) or similar technology to underpin exchanges of the asset and its inherent or perceived value; |
| --- | --- |

E.

whereas the two most common components of crypto-assets adopted are (i) the private nature of the entitlement regarding the underlying asset, claim or right, and (ii) the use of cryptography and distributed ledger technology (DLT) or similar technology to underpin exchanges of the asset and its inherent or perceived value;

| F. | whereas, at present, crypto-assets are neither issued nor guaranteed by a central bank or public authority in the Union, and can have a variety of uses, including as a means of exchange, for investment purposes, and in order to access a good or service; |
| --- | --- |

F.

whereas, at present, crypto-assets are neither issued nor guaranteed by a central bank or public authority in the Union, and can have a variety of uses, including as a means of exchange, for investment purposes, and in order to access a good or service;

| G. | whereas stablecoins exhibit similar features to crypto-assets and do not take the form of any specific currency, but rely on a set of tools which aim to minimise fluctuations of their price as denominated in a currency; whereas some crypto-assets, including stablecoins and their associated technologies, have the potential to increase efficiencies, competition and transparency and to bring substantial opportunities and benefits to society, since some of them could lead to cheaper and faster payments and offer new funding sources for small and medium-sized enterprises (SMEs); whereas the set of tools aiming to minimise price fluctuations has not been tested in situations where significant numbers of transactions are being carried out with stablecoins; |
| --- | --- |

G.

whereas stablecoins exhibit similar features to crypto-assets and do not take the form of any specific currency, but rely on a set of tools which aim to minimise fluctuations of their price as denominated in a currency; whereas some crypto-assets, including stablecoins and their associated technologies, have the potential to increase efficiencies, competition and transparency and to bring substantial opportunities and benefits to society, since some of them could lead to cheaper and faster payments and offer new funding sources for small and medium-sized enterprises (SMEs); whereas the set of tools aiming to minimise price fluctuations has not been tested in situations where significant numbers of transactions are being carried out with stablecoins;

| H. | whereas public debate about privately launched stablecoins may be related to certain shortcomings of the Union's payments landscape; |
| --- | --- |

H.

whereas public debate about privately launched stablecoins may be related to certain shortcomings of the Union's payments landscape;

| I. | whereas stablecoins might become a widely used means of payment, which should trigger appropriate regulatory and supervisory action; |
| --- | --- |

I.

whereas stablecoins might become a widely used means of payment, which should trigger appropriate regulatory and supervisory action;

| J. | whereas a Central Bank Digital Currency (CBDC) is based on the concept of a stable asset, is sovereign in nature and therefore distinct to crypto-assets; whereas the People’s Bank of China is trialling a central bank digital currency, the Digital Currency Electronic Payment (DCEP); highlights that the potential global use of the DCEP could have implications for international trade and consumer protection; |
| --- | --- |

J.

whereas a Central Bank Digital Currency (CBDC) is based on the concept of a stable asset, is sovereign in nature and therefore distinct to crypto-assets; whereas the People’s Bank of China is trialling a central bank digital currency, the Digital Currency Electronic Payment (DCEP); highlights that the potential global use of the DCEP could have implications for international trade and consumer protection;

| K. | whereas possible initiatives for implementing CBDCs are under consideration, both within the Union and on a global level; |
| --- | --- |

K.

whereas possible initiatives for implementing CBDCs are under consideration, both within the Union and on a global level;

| L. | whereas digital finance has a strong cross-border element, which goes beyond the Union level and therefore international cooperation and standard-setting as well as an efficient and effective Union supervision in this field is essential; |
| --- | --- |

L.

whereas digital finance has a strong cross-border element, which goes beyond the Union level and therefore international cooperation and standard-setting as well as an efficient and effective Union supervision in this field is essential;

| M. | whereas the development of digital finance tools can have a strong capital flows element which attracts cross-border investments; stresses that therefore digital finance can contribute to Union competitiveness on global markets; |
| --- | --- |

M.

whereas the development of digital finance tools can have a strong capital flows element which attracts cross-border investments; stresses that therefore digital finance can contribute to Union competitiveness on global markets;

| N. | whereas, according to market data (12), as of June 2020, over 5,600 crypto-assets exist globally, with a total market capitalisation exceeding USD 260 billion (13), 65 % of which is made up of Bitcoin alone; |
| --- | --- |

N.

whereas, according to market data (12), as of June 2020, over 5,600 crypto-assets exist globally, with a total market capitalisation exceeding USD 260 billion (13), 65 % of which is made up of Bitcoin alone;

| O. | whereas, according to market data, stablecoins have reached a total market capitalisation of EUR 10 billion in June 2020 from 1,5 billion in January 2018 and, despite their still limited reach compared to other cryptocurrencies, have the potential to rapidly reach a global scale and a wide mass user base, especially if adopted by BigTech companies exploiting their networks; |
| --- | --- |

O.

whereas, according to market data, stablecoins have reached a total market capitalisation of EUR 10 billion in June 2020 from 1,5 billion in January 2018 and, despite their still limited reach compared to other cryptocurrencies, have the potential to rapidly reach a global scale and a wide mass user base, especially if adopted by BigTech companies exploiting their networks;

| P. | whereas experts of the European Central Bank (ECB) noted in their publication of 2019 (14), that even though crypto-assets are highly speculative, they do not represent an immediate threat to financial stability; whereas that view has been shared by both the European Securities and Markets Authority (ESMA) (15) and the European Banking Authority (EBA) (16); whereas the International Monetary Fund (IMF), in its 2018 global financial stability report, and the Financial Stability Board (FSB), in its July 2018 report, reached the same conclusions, although in the FSB’s opinion the situation should still be monitored, given how quickly changes occur on these markets; |
| --- | --- |

P.

whereas experts of the European Central Bank (ECB) noted in their publication of 2019 (14), that even though crypto-assets are highly speculative, they do not represent an immediate threat to financial stability; whereas that view has been shared by both the European Securities and Markets Authority (ESMA) (15) and the European Banking Authority (EBA) (16); whereas the International Monetary Fund (IMF), in its 2018 global financial stability report, and the Financial Stability Board (FSB), in its July 2018 report, reached the same conclusions, although in the FSB’s opinion the situation should still be monitored, given how quickly changes occur on these markets;

| Q. | whereas, as pointed out in the EBA report, financial institutions are currently engaging in relatively limited crypto-assets related activities, but their interest is likely to grow particularly in the context of the increasing use of DLT-based solutions; whereas such activities include holding or gaining exposure to crypto-assets, underwriting initial coin offerings (ICOs), or offering services in relation to crypto-assets such as providing custody wallet or exchanges; whereas the current prudential rules are not well suited to capturing the high volatility and high risks of crypto-assets; |
| --- | --- |

Q.

whereas, as pointed out in the EBA report, financial institutions are currently engaging in relatively limited crypto-assets related activities, but their interest is likely to grow particularly in the context of the increasing use of DLT-based solutions; whereas such activities include holding or gaining exposure to crypto-assets, underwriting initial coin offerings (ICOs), or offering services in relation to crypto-assets such as providing custody wallet or exchanges; whereas the current prudential rules are not well suited to capturing the high volatility and high risks of crypto-assets;

| R. | whereas recent research suggests that crypto-assets are mainly used as a speculative investment, rather than as a means of payment for goods or services offered by a legal merchant; whereas the ESAs have highlighted that crypto-assets which do not qualify as financial instruments within the scope of Union financial regulation pose specific risks, namely in terms of investor and consumer protection as well as to market integrity; whereas crypto-assets may increase the risks of money laundering, fraudulent practices, tax evasion and external attacks; |
| --- | --- |

R.

whereas recent research suggests that crypto-assets are mainly used as a speculative investment, rather than as a means of payment for goods or services offered by a legal merchant; whereas the ESAs have highlighted that crypto-assets which do not qualify as financial instruments within the scope of Union financial regulation pose specific risks, namely in terms of investor and consumer protection as well as to market integrity; whereas crypto-assets may increase the risks of money laundering, fraudulent practices, tax evasion and external attacks;

| S. | whereas the adoption of new technologies can make a significant contribution to allowing financial services companies to meet their ongoing supervisory and compliance obligations; |
| --- | --- |

S.

whereas the adoption of new technologies can make a significant contribution to allowing financial services companies to meet their ongoing supervisory and compliance obligations;

| T. | whereas within the range of crypto-assets which qualify as financial instruments under Union law, their classification as such relies on the national competent authorities applying the national implementation of Union law, which creates discrepancies in the supervisory and regulatory approach, harming consistency and a level playing field in the Union; whereas such classification and integration within the Union legislative framework is not without difficulties, since different crypto-assets present different features, which may change over time; |
| --- | --- |

T.

whereas within the range of crypto-assets which qualify as financial instruments under Union law, their classification as such relies on the national competent authorities applying the national implementation of Union law, which creates discrepancies in the supervisory and regulatory approach, harming consistency and a level playing field in the Union; whereas such classification and integration within the Union legislative framework is not without difficulties, since different crypto-assets present different features, which may change over time;

| U. | whereas ICOs could provide an alternative source of funding for innovative businesses and start-ups at the early phase of their development, but they also expose investors to high risks of losses due to their highly speculative nature and vulnerability to fraud; whereas the Bank for International Settlements’ Annual Economic Report 2018 found that at least 22,5 % of ICOs have turned out to be fraudulent Ponzi schemes; |
| --- | --- |

U.

whereas ICOs could provide an alternative source of funding for innovative businesses and start-ups at the early phase of their development, but they also expose investors to high risks of losses due to their highly speculative nature and vulnerability to fraud; whereas the Bank for International Settlements’ Annual Economic Report 2018 found that at least 22,5 % of ICOs have turned out to be fraudulent Ponzi schemes;

| V. | whereas crypto-assets have the potential to reduce transactions costs in a safe manner in an increasingly digitally surveyed world if subject to a stringent, fit for purpose and risk-based regulatory regime; |
| --- | --- |

V.

whereas crypto-assets have the potential to reduce transactions costs in a safe manner in an increasingly digitally surveyed world if subject to a stringent, fit for purpose and risk-based regulatory regime;

| W. | whereas digital finance can contribute in a number of ways to tackling the economic effects of the COVID-19 outbreak as regards consequences for citizens, SMEs and other businesses and financial services; whereas the COVID-19 outbreak has, to a varying extent across Member States, demonstrated the potential that digital finance offers to both consumers and the economy; |
| --- | --- |

W.

whereas digital finance can contribute in a number of ways to tackling the economic effects of the COVID-19 outbreak as regards consequences for citizens, SMEs and other businesses and financial services; whereas the COVID-19 outbreak has, to a varying extent across Member States, demonstrated the potential that digital finance offers to both consumers and the economy;

| X. | whereas large technology firms and global digital platforms are increasingly offering financial services; whereas those large operators in the digital sector benefit from competitive advantages such as economies of scale, vast cross-border user networks, easy access to financing and the ability to harvest large swaths of data provided by users through data processing technologies such as ‘big data analytics’, which generate tremendous added value in a variety of ways; whereas the presence of ‘BigTech’ firms in the FinTech markets has the potential to harm fair competition and innovation; |
| --- | --- |

X.

whereas large technology firms and global digital platforms are increasingly offering financial services; whereas those large operators in the digital sector benefit from competitive advantages such as economies of scale, vast cross-border user networks, easy access to financing and the ability to harvest large swaths of data provided by users through data processing technologies such as ‘big data analytics’, which generate tremendous added value in a variety of ways; whereas the presence of ‘BigTech’ firms in the FinTech markets has the potential to harm fair competition and innovation;

| Y. | whereas recently discovered fraudulent activity related to firms in the FinTech industry highlights the need for a holistic perspective of the risks for consumer and investor protection associated with failures in financial reporting, fraud and insolvency procedures; |
| --- | --- |

Y.

whereas recently discovered fraudulent activity related to firms in the FinTech industry highlights the need for a holistic perspective of the risks for consumer and investor protection associated with failures in financial reporting, fraud and insolvency procedures;

| Z. | whereas the share of non-cash-based payments has increased significantly over the past years; whereas an improved framework for cashless transactions should not undermine the ability to use cash as a means of payment; |
| --- | --- |

Z.

whereas the share of non-cash-based payments has increased significantly over the past years; whereas an improved framework for cashless transactions should not undermine the ability to use cash as a means of payment;

| AA. | whereas the financial sector is the largest user of information and communications technology (ICT) in the world, accounting for about a fifth of all ICT expenditure; |
| --- | --- |

AA.

whereas the financial sector is the largest user of information and communications technology (ICT) in the world, accounting for about a fifth of all ICT expenditure;

| AB. | whereas the application of new technologies in the financial sector may create new risks that need to be regulated and monitored in order to safeguard financial stability, the integrity of the internal market and consumer protection; |
| --- | --- |

AB.

whereas the application of new technologies in the financial sector may create new risks that need to be regulated and monitored in order to safeguard financial stability, the integrity of the internal market and consumer protection;

| AC. | whereas the increased use of artificial intelligence in financial services will lead to a need for stronger operational resilience and the appropriate corresponding supervision as well as data protection as provided by Union law; |
| --- | --- |

AC.

whereas the increased use of artificial intelligence in financial services will lead to a need for stronger operational resilience and the appropriate corresponding supervision as well as data protection as provided by Union law;

| AD. | whereas new operational problems, particularly ICT and security risks, can generate systemic risks for the financial sector; such new risks should be addressed by appropriate measures, as pointed out by the European Systemic Risk Board (17); |
| --- | --- |

AD.

whereas new operational problems, particularly ICT and security risks, can generate systemic risks for the financial sector; such new risks should be addressed by appropriate measures, as pointed out by the European Systemic Risk Board (17);

| AE. | whereas the current EU rulebook for financial services takes a piecemeal approach to the issue of operational risk provisions; |
| --- | --- |

AE.

whereas the current EU rulebook for financial services takes a piecemeal approach to the issue of operational risk provisions;

| AF. | whereas the ICT and security risks faced by the financial sector, and its level of integration at the Union level, warrant specific and more advanced actions that build on but go beyond Directive (EU) 2016/1148 of the European Parliament and of the Council of 6 July 2016 concerning measures for a high common level of security of network and information systems across the Union (18); |
| --- | --- |

AF.

whereas the ICT and security risks faced by the financial sector, and its level of integration at the Union level, warrant specific and more advanced actions that build on but go beyond Directive (EU) 2016/1148 of the European Parliament and of the Council of 6 July 2016 concerning measures for a high common level of security of network and information systems across the Union (18);

| AG. | whereas cyber resilience is an integral part of the work on the operational resilience of financial institutions carried out by authorities on a global level; |
| --- | --- |

AG.

whereas cyber resilience is an integral part of the work on the operational resilience of financial institutions carried out by authorities on a global level;

| AH. | whereas a functioning, sustainable and resilient Union financial market should have strong allocative efficiency of capital and risk and the widest financial inclusion of citizens within financial services; |
| --- | --- |

AH.

whereas a functioning, sustainable and resilient Union financial market should have strong allocative efficiency of capital and risk and the widest financial inclusion of citizens within financial services;

| AI. | whereas the use of cloud computing services can offer significant advantages regarding operational resilience and efficiency for financial services providers compared to legacy on-site solution, but comes with additional challenges in relation to security of data and processes, business continuity in case of outages and general vulnerability in relation to cyber crimes; |
| --- | --- |

AI.

whereas the use of cloud computing services can offer significant advantages regarding operational resilience and efficiency for financial services providers compared to legacy on-site solution, but comes with additional challenges in relation to security of data and processes, business continuity in case of outages and general vulnerability in relation to cyber crimes;

| AJ. | whereas a level playing field between financial services firms and technology firms is needed to ensure all firms compete on equal footing, following the principle of ‘same risk, same activity, same regulation’; |
| --- | --- |

AJ.

whereas a level playing field between financial services firms and technology firms is needed to ensure all firms compete on equal footing, following the principle of ‘same risk, same activity, same regulation’;

| AK. | whereas the introduction of digital financial services should neither lead to regulatory arbitrage, nor to lower customer protection, reduced safety or financial stability risks; |
| --- | --- |

AK.

whereas the introduction of digital financial services should neither lead to regulatory arbitrage, nor to lower customer protection, reduced safety or financial stability risks;

| AL. | whereas many large Union financial institutions rely on third-country providers for cloud computing services; |
| --- | --- |

AL.

whereas many large Union financial institutions rely on third-country providers for cloud computing services;

| AM. | whereas the European Data Protection Board has an important role to play in helping companies understand their GDPR compliance obligations; |
| --- | --- |

AM.

whereas the European Data Protection Board has an important role to play in helping companies understand their GDPR compliance obligations;

| AN. | whereas crypto-assets do not have usually a known originator and they do not create financial claim to an underlying asset, contrary to stablecoins, security tokens and commodity tokens that all have a known originator; |
| --- | --- |

AN.

whereas crypto-assets do not have usually a known originator and they do not create financial claim to an underlying asset, contrary to stablecoins, security tokens and commodity tokens that all have a known originator;

| AO. | whereas although the tokens issued by entrepreneurs in the form of claims to a cash-flow, an equity claim or a future product/service claim, can be classified in alternative ways, their classification in Union law should give regulatory predictability and homogeneity in the European markets; whereas a technologically relevant and functional regulation of the tokens should take into account potential hybrid designs and provide definitions that maximise consumer and investor protection, increase legal certainty and leverage the strong potential of these instruments in funding risky entrepreneurial projects; whereas the underlying economic function of the tokens is a significant indicator for their classification; |
| --- | --- |

AO.

whereas although the tokens issued by entrepreneurs in the form of claims to a cash-flow, an equity claim or a future product/service claim, can be classified in alternative ways, their classification in Union law should give regulatory predictability and homogeneity in the European markets; whereas a technologically relevant and functional regulation of the tokens should take into account potential hybrid designs and provide definitions that maximise consumer and investor protection, increase legal certainty and leverage the strong potential of these instruments in funding risky entrepreneurial projects; whereas the underlying economic function of the tokens is a significant indicator for their classification;

| AP. | whereas the Financial Action Task Force (FATF) adopted a broad definition of virtual currency and recommended incorporating within the scope of the anti-money laundering/combating the financing of terrorism (AML/CFT) obligations any natural or legal person who conducts activities including exchange between crypto-assets, transfer of crypto-assets and participation in and provision of financial services related to initial coin offerings; |
| --- | --- |

AP.

whereas the Financial Action Task Force (FATF) adopted a broad definition of virtual currency and recommended incorporating within the scope of the anti-money laundering/combating the financing of terrorism (AML/CFT) obligations any natural or legal person who conducts activities including exchange between crypto-assets, transfer of crypto-assets and participation in and provision of financial services related to initial coin offerings;

| AQ. | whereas money laundering is a critical danger which must be prevented in the area of digital finance; whereas even if digital finance may improve financial inclusion, a comprehensive regime of know your customer (KYC) and AML compliance, as provided by Union law, should still be in place; whereas although crypto-assets can be used for illegal activities, their regulatory status as means of payment, instead of means of exchange, can improve the monitoring and prevention of financial crime; |
| --- | --- |

AQ.

whereas money laundering is a critical danger which must be prevented in the area of digital finance; whereas even if digital finance may improve financial inclusion, a comprehensive regime of know your customer (KYC) and AML compliance, as provided by Union law, should still be in place; whereas although crypto-assets can be used for illegal activities, their regulatory status as means of payment, instead of means of exchange, can improve the monitoring and prevention of financial crime;

| AR. | whereas increased connectivity, the Internet of Things and the interaction of humans and machines can create better financial service experiences but also entail new risks regarding the privacy and protection of personal data, quality of the interaction, the operational risk management and cyber-security challenges; |
| --- | --- |

AR.

whereas increased connectivity, the Internet of Things and the interaction of humans and machines can create better financial service experiences but also entail new risks regarding the privacy and protection of personal data, quality of the interaction, the operational risk management and cyber-security challenges;

Recommendations:

General Considerations

| 1. | Welcomes the adoption by the Commission of the Digital Finance Package including two legislative proposals on crypto-assets and operational resilience; considers that the Commission proposal on crypto-assets, as well as on operational and cyber resilience, are timely, useful and necessary due to recent developments in Union and global markets and represent a crucial step towards bringing legal clarity and developing a new regulatory regime; regrets, however, that the Commission did not properly address the problems related to money laundering, terrorism financing and criminal activity associated with crypto-assets, which remain largely unresolved; requests that the Commission take urgent actions in these areas following the recommendations set out in the Annex hereto; |
| --- | --- |

1.

| 2. | Considers that digital finance, which plays a key role in developing financial activities, will be integral to the success of the Capital Markets Union (CMU) through increasing financing options for companies and citizens, as well as investment options, and encourages the Commission to consider how to empower innovators and therefore harness the benefits of digital finance in driving forward capital market integration and retail investor participation in the Union and elevating its magnitude globally; |
| --- | --- |

2.

| 3. | Emphasises the increased importance of monitoring and reviewing measures relating to the regulation of digital finance, particularly bearing in mind the increasing relevance of the sector as the world deals with the COVID-19 pandemic; further highlights the need to address the specific risks that digital finance poses at regulatory and supervisory level through an appropriate legislative framework and consumer protection provisions; |
| --- | --- |

3.

| 4. | Highlights the importance for the Commission to closely align its work with international fora and regulatory bodies in developing international standards given the cross-jurisdictional nature of digital finance, without prejudice to the Union’s prerogative to adopt regulatory and supervisory provisions relevant to the Union’s circumstances; recalls in particular the need to ensure interoperability of the Union’s regulatory framework with internationally agreed principles; |
| --- | --- |

4.

| 5. | Notes that the development of many technologies related to digital finance is still in its infancy; emphasises that any new legislative measures must therefore be subject to a thorough and future-facing assessment of risks and benefits to consumers and financial stability; calls on the Commission to deploy a proportionate, risk-based, cross-sectorial holistic and outcome focused approach to its work on digital finance; |
| --- | --- |

5.

| 6. | Calls on the Commission to draw upon the knowledge and experience derived from the European Forum for Innovation Facilitators to act as first mover in order to create a favourable and sustainable environment for European FinTech hubs and firms, as well as the established financial industry using digital finance, to scale up, attract foreign investment and increase the Union’s presence in global markets; |
| --- | --- |

6.

| 7. | Considers in this respect that digital finance should be considered as an essential and effective tool for European SMEs, with the ability to provide real-time and rapid solutions adapted to their financing needs; believes that digital finance has the potential to help close the SME financing gap; |
| --- | --- |

7.

| 8. | Stresses that any measures taken at Union level should ensure that market participants, from small to large, have the regulatory space to innovate and that any new or updated legislation and supervision in the area of digital finance should reflect the following principles:






  (a) | the same activities and services and their associated similar risks should be subject to the same rules; |
| --- | --- | --- |

8.

(a)

the same activities and services and their associated similar risks should be subject to the same rules;

| (b) | proportionality and technology neutrality; |
| --- | --- |

(b)

proportionality and technology neutrality;

| (c) | an approach based on risk, transparency and accountability; |
| --- | --- |

(c)

an approach based on risk, transparency and accountability;

| (d) | respect for the fundamental rights, specifically the protection of privacy and personal data, as guaranteed by Articles 7 and 8 of the Charter of Fundamental Rights of the European Union; |
| --- | --- |

(d)

respect for the fundamental rights, specifically the protection of privacy and personal data, as guaranteed by Articles 7 and 8 of the Charter of Fundamental Rights of the European Union;

| (e) | high levels of consumer and investor protection; |
| --- | --- |

(e)

high levels of consumer and investor protection;

| (f) | a level playing field; |
| --- | --- |

(f)

a level playing field;

| (g) | an innovation-friendly approach; |
| --- | --- |

(g)

an innovation-friendly approach;

| 9. | Points out that any new or updated measures adopted at Union level should take into account the rapid developments in the expanding markets of crypto-assets and ICOs; emphasises that a level playing field must be ensured across the internal market, avoiding forum shopping and regulatory arbitrage; cautions that such measures should not stifle opportunities for businesses, particularly SMEs, to grow and should offer a sustainable ecosystem for digital finance to develop within the internal market, while ensuring financial stability, market integrity and investor and consumer protection; |
| --- | --- |

9.

| 10. | Points out that regulatory sandboxes and innovation hubs have the potential to be useful tools for digital finance companies to test out innovative financial products, financial services or business models in a controlled environment, and to allow competent authorities to gain a better understanding of such activities and develop regulatory expertise in emerging technologies, thereby facilitating dialogue between companies and regulators; highlights however that they may also pose significant risks to consumer and investor protection and enable financial fraud, while creating risks of supervisory fragmentation and regulatory arbitrage; |
| --- | --- |

10.

| 11. | Underlines that any sandbox, including a pan-European sandbox, should seek to strike a balance between the objectives of fostering innovation and financial stability, investor and consumer protection, while taking into account the size, systemic significance and cross-border activity of the firms involved; calls on the Commission to establish a common Union framework for a pan-European sandbox for digital financial services, as it would provide additional benefits for financial innovation and stability, and reduced supervisory fragmentation; |
| --- | --- |

11.

| 12. | Highlights the importance of the triangle of trust, identity verification and data in order to ensure that operators, investors, consumers and supervisors are able to have confidence in digital finance; |
| --- | --- |

12.

| 13. | Considers it appropriate to further analyse initiatives for implementing CBDCs both within the Union and on a global level; invites the ECB to consider undertaking a comprehensive impact assessment with a view to presenting perspective options on CBDCs, including an analysis of the opportunities and risks of the establishment of a digital euro; believes this assessment should also consider the role of underlying technologies; further calls on the Union supervisory authorities to promote further research in this field, and calls on the Commission and the ECB to engage in dialogue at the international level, assessing potential benefits and implications of broader use of CBDCs globally; |
| --- | --- |

13.

| 14. | Believes that parameters and principles for the impact assessment and subsequent analysis should rely on the role of CBDCs in supplementing the decline in cash use, ensuring trust in the financial system, providing for greater financial inclusion and access to a public means of payment, while guaranteeing financial and monetary stability; |
| --- | --- |

14.

| 15. | Stresses the need for stronger regulatory and supervisory convergence, with the aim of developing a common Union framework; highlights the crucial role of the European Supervisory Authorities (ESAs) in facilitating this; calls for a structured dialogue between the ESAs and national competent authorities (NCA) which should focus on current supervisory challenges and convergence of practices towards seamless supervision on all levels, namely with regards to digital finance, anti-money laundering, protection of privacy and data protection and cyber-security challenges and opportunities; considers that this structured dialogue should focus, in the field of digital finance, on reducing arbitrage and supervisory competition, and other existing obstacles to cross-border operations; |
| --- | --- |

15.

| 16. | Proposes a single European supervisor, to work in close cooperation with other ESAs and NCAs, based on a common rulebook and product intervention powers for oversight, in the following areas of crypto-asset related activities: providers engaged in exchange services between virtual currencies and fiat currencies as well as wallet providers, and all other Virtual Asset Service Providers covered by FATF standards; at the same time, notes that accountability of that European supervisor needs to be ensured, and a judicial review process for the European supervisor’s actions needs to be provided; notes, in this respect, the Commission's proposal of 24 September 2020 for a Regulation on Markets in Crypto-assets; highlights that the single supervisor, in cooperation with other relevant Union level supervisory authorities, should have oversight of crypto-asset related activities with a significant cross-border element in the Union and should develop appropriate internal structures to ensure efficient and effective Union level supervision of crypto-assets; |
| --- | --- |

16.

| 17. | Express its agreement with the ECB’s position on the importance of physical money as legal tender; stresses that progress in the field of virtual currencies and digital payments must not lead to restrictions on retail cash payments or to the abolition of cash; |
| --- | --- |

17.

| 18. | Highlights its concerns about the environmental impact of crypto-mining; stresses the need for solutions aimed at mitigating the ecological footprint of mainstream crypto-assets; calls on the Commission to take this into account in any forthcoming regulatory initiative, having in mind the EU’s commitment to the Sustainable Development Goals and to the necessary transition to a climate-neutral society by 2050 at the latest; |
| --- | --- |

18.

Defining a Framework for Crypto-Assets

| 19. | Considers that developing a comprehensive pan-European taxonomy for new products such as crypto-assets is a necessary step towards fostering a common understanding, facilitating collaboration across jurisdictions and providing greater legal certainty for market participants operating cross border; recommends taking into account existing national regulatory and supervisory frameworks; notes the importance of international cooperation and global initiatives as regards a Union framework for crypto-assets, bearing in mind in particular their borderless nature; |
| --- | --- |

19.

| 20. | Considers that developing an open-ended taxonomy template at Union level may be more appropriate taking into account that this is an evolving market segment and such a taxonomy should serve as a basis for appropriate legislative or regulatory actions; believes, however, that there is no ‘one size fits all’ solution when it comes to legal qualification of crypto-assets and therefore a framework which allows for monitoring and adaption by supervisors is important; |
| --- | --- |

20.

| 21. | Emphasises that consumer-focused start-ups are often building innovative financial services to the benefit of Union citizens and companies, and that any legislative framework should be designed with a view to empowering further innovation and consumer choice in financial services; |
| --- | --- |

21.

| 22. | Notes that in the absence of a common EU regulatory approach for crypto-assets, Member States have already started adopting unilateral legislative and supervisory actions and face increasing pressure to act due to consumer protection concerns; points out that divergent interpretations and an uncoordinated approach across Member States can lead to market fragmentation, increase legal uncertainty, undermine the level playing field and provide opportunities for regulatory arbitrage; |
| --- | --- |

22.

| 23. | Believes, therefore, that any further categorisation should be balanced and flexible in order to adapt to evolving business models and risks and to give space for innovation and competitiveness in the sector while, at the same time, ensuring that risks can be identified and mitigated at an early stage; |
| --- | --- |

23.

| 24. | Further stresses that clarification of guidance on the applicable regulatory and prudential processes is needed in order to provide regulatory certainty and outline adequate supervision and prudential treatment of crypto-assets; subscribes to the view of the Basel committee and EBA that banks acquiring crypto-assets should apply a conservative prudential treatment of crypto-assets, particularly those that are high risk; |
| --- | --- |

24.

| 25. | Considers that regulated financial institutions, in particular credit institutions, payment institutions and pension funds, shall be subject to specific maximum exposure limits in light of the potential risks to consumer and investor protection and to financial stability associated with high levels of crypto-assets activity; shares furthermore the view that strong due diligence, robust governance and risk management, full disclosure of any exposure and a solid dialogue with the supervisors are all of paramount importance; believes the forthcoming revision of the capital requirements framework should include amendments in this respect; |
| --- | --- |

25.

| 26. | Considers that all agents and participants engaging in crypto-assets related activity should be subject to the standards of the existing financial regulatory framework, as applicable; underlines further the need to establish legal provisions and mechanisms to ensure that the regulatory standards for crypto-assets related activities, in particular regarding consumer protection and AML/CFT, are also enforced when such activities or services are provided or operated from outside the Union; underlines furthermore that specific rules on market transparency and integrity at least equivalent to those of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (19) (MiFID II) for all issuers or sponsors of crypto-assets, establishing stringent rules regarding information to potential clients, which should be clear and not misleading, as well as suitability assessments requirements; |
| --- | --- |

26.

| 27. | Considers that some crypto-assets, those used largely in illegal channels, should not be legitimised by bringing them under the existing regulatory regime; highlights that any unwanted legitimisation would risk consumer protection and undermine market integrity; calls on the Commission, therefore, to establish stringent rules regarding warnings to potential clients and to make sure that competent authorities are attributed the necessary intervention powers to restrict or prohibit operations and activities in those crypto-assets that are predominantly used for illegal purposes; |
| --- | --- |

27.

| 28. | Stresses that risks related to holdings and exposures to crypto-assets should be fully integrated in the supervisory review and evaluation process once the taxonomy is available; highlights in this regard the need for adequate and standardised disclosure requirements of any material exposures or services related to crypto-assets; |
| --- | --- |

28.

| 29. | Points out that addressing regulatory gaps in existing Union law through targeted changes will be necessary, as will creating bespoke regulatory regimes for new and evolving crypto-asset activities, such as ICOs or initial exchange offerings (IEOs); notes that certain types of crypto-assets could fit into the existing regulatory framework, such as, for example, ‘transferable securities’ as defined by MiFID II; believes that those crypto-assets which could fall under MiFID II should be treated in the same manner as other transferable securities falling under that regime, and as such would not require a bespoke legislative framework, but rather targeted changes to the relevant MiFID II provisions; |
| --- | --- |

29.

| 30. | Stresses the necessity of regulating certain crypto-assets which would not fall under MiFID II provisions in a harmonised manner at the Union level; |
| --- | --- |

30.

| 31. | Notes that stablecoins represent a unique category of crypto-asset; points out that, at this stage, the use of stablecoins is not yet prominent within the Union; highlights, however, that their widespread adoption could pose significant threats to financial stability and transmission of monetary policy as well as democratic control; welcomes therefore the adoption by the Commission of a legislative framework that, inter alia, aims to ensure that there is a stable conversion rate between stablecoins and fiat currencies and that the respective stablecoin is re-convertible into fiat currency at par value at any time; stresses the need, however, for all issuers of stablecoins to be legally obliged to grant the holder a direct claim and to redeem the stablecoins at par value into fiat currency at any time and to put in place adequate mechanisms for safeguarding and segregating the stabilisation reserves to this end. |
| --- | --- |

31.

| 32. | Highlights that ICOs and IEOs have the potential to increase access to funding for SMEs, innovative start-ups and scale-ups, can accelerate technology transfer, and can be an essential part of the CMU; notes, however, that various supervisory authorities have issued warnings regarding ICOs due to their lack of transparency and disclosure requirements, which have the potential to cause risks to investors and consumers; |
| --- | --- |

32.

| 33. | Calls on the Commission, therefore, to assess the advantages of proposing a legislative framework for ICOs and IEOs with the aim of increasing transparency, legal certainty, investor and consumer protection, and reduce risks stemming from asymmetric information, fraudulent behaviour and illegal activities; insists that supervision and monitoring of this framework be coordinated at the Union level; |
| --- | --- |

33.

| 34. | Highlights that a common Union framework on crypto-assets should help safeguard a high level of consumer and investor protection, market integrity and financial stability, enforce the application of AML provisions, such as KYC obligations with regards to agents engaged in crypto-assets related transactions, with exemptions only for occasional transactions below a minimum threshold, and improve oversight of the underlying technology so as to ensure that authorities investigating crime are able to identify the ultimate beneficiaries of payment transactions reliably and with limited effort; |
| --- | --- |

34.

| 35. | Is concerned about the findings of a recent research (20) demonstrating that half of the crypto-assets transactions is linked to illegal activities, like the buying or selling of illegal goods or services, money laundering and, payments in ransomware attacks; highlights recent findings which suggests that 76 billion dollars of illegal activity per year involves Bitcoins; |
| --- | --- |

35.

| 36. | Reiterates the need to effectively address the AML/CTF risks arising from cross-border activities and new technologies, in particular those posed by crypto-assets; |
| --- | --- |

36.

| 37. | Underlines that existing gaps in the AML framework for crypto-assets such as in the application of the KYC principle, lead to an uneven playing field between different types of financial activity; considers that AML/CTF provisions for providers of services related to crypto-assets should be enforced also for foreign providers offering their services in the Union; highlights that a comprehensive definition of ‘virtual assets’ is needed to better reflect the nature and function of crypto-assets for the purpose of AML/CTF; points out that the definition of terrorist financing shall also be updated to ensure that crypto-assets are adequately covered; |
| --- | --- |

37.

| 38. | Notes the update of the existing Recommendation 16 of the FATF regarding the Traveling Rule for the Virtual Asset Service Providers (VASPs) and calls on the Commission to explore its implications for the crypto-exchange and e-wallet providers within the framework of the Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (21); |
| --- | --- |

38.

| 39. | Calls further on the Commission to expand the scope of obliged entities under the AML/CTF framework, in line with the recommendations of the FATF and ESMA, to ensure that all activities involving crypto-assets, with regards to providers of virtual-to-virtual exchanges, other categories of wallet providers and ICOs, are subject to the same AML/CTF obligations; |
| --- | --- |

39.

| 40. | Takes the view that the proliferation of digital finance should leave no-one behind and that the availability of digital finance solutions for consumers and non-professional investors must go hand in hand with greater efforts to ensure transparency, public awareness and access to information; calls on the Commission and Member States to invest in programmes to enhance digital and financial literacy; |
| --- | --- |

40.

| 41. | Notes that the introduction of any central bank developed digital currency goes along with significant challenges and risks (e.g. financial stability risks, deposit protection, implications for transmission of monetary policy, implication on credit intermediation, substitution of other means of payments, crowding out of private market participants etc.) that could easily outweigh the perceived benefits of CBDCs; |
| --- | --- |

41.

| 42. | Notes that some of the perceived shortcomings of the European payment system, could be remedied with gradual improvements of the existing regime such as an increased roll-out of cost-efficient instant payments; |
| --- | --- |

42.

A common approach to cyber resilience of the financial sector

| 43. | Points out that with the increasing digitalisation of financial services, as well as outsourcing to external IT solution or maintenance providers, such as cloud providers, can help in particular start-ups to innovate and have access to technology that they would otherwise not have; cautions, however, that the exposure of financial institutions and markets to disruption caused by internal failures, external attacks or as a consequence of financial distress is becoming more pronounced and therefore operational risks need to be thoroughly assessed in light of this evolving landscape; considers that the guiding objectives of any proposed legislation in this regard should therefore be security, resiliency and efficiency; |
| --- | --- |

43.

| 44. | Takes note of the fact that while the total costs of cyber incidents are notoriously hard to establish, industry estimates range from USD 45 billion to USD 654 billion for the global economy in 2018; |
| --- | --- |

44.

| 45. | Highlights that the financial sector has traditionally been a key target for cybercriminals looking for financial gain; |
| --- | --- |

45.

| 46. | Is concerned by the ESRB analysis which shows that it is indeed conceivable that a cyber-incident could evolve into a systemic cyber crisis that threatens financial stability (22); |
| --- | --- |

46.

| 47. | Points out that some sectoral pieces of Union financial services legislation already contain specific requirements in relation to information security management, while this is not the case for other areas of Union financial services legislation; recalls that supervisory authorities have issued consumer warnings regarding ICOs, as the lack of appropriate transparency and disclosure requirements can cause potential and serious risks for investors; |
| --- | --- |

47.

| 48. | Calls on the Commission to propose legislative changes in the area of ICT and cyber security requirements for the Union financial sector, taking into account international standards, in order to address any inconsistencies, gaps and loopholes that are found to exist in relevant law; in this regard, calls on the Commission to consider the need to have a supervisory overview of ICT providers, noting the concentration and contagion risks that can be posed by heavy reliance on a small number of ICT and cloud computing providers by the financial services sector; |
| --- | --- |

48.

| 49. | Considers that these changes should focus on four key areas:






  (a) | modernisation of ICT governance and risk management, and compliance with international standards; |
| --- | --- | --- |

49.

(a)

modernisation of ICT governance and risk management, and compliance with international standards;

| (b) | alignment of reporting rules as regards ICT incidents; |
| --- | --- |

(b)

alignment of reporting rules as regards ICT incidents;

| (c) | a common framework for penetration and operational resilience testing across all financial sectors; |
| --- | --- |

(c)

a common framework for penetration and operational resilience testing across all financial sectors;

| (d) | oversight and minimum standards for critical ICT third-party providers; |
| --- | --- |

(d)

oversight and minimum standards for critical ICT third-party providers;

| 50. | Stresses the need for further information sharing, in particular on incidents, and enhanced coordination between relevant regulatory and supervisory authorities, taking into account that building resilience and preparedness to deal with large scale cyber and operational incidents requires effective cooperation not only cross-border but also across various sectors; takes the view that this should be done by granting certain powers to supervisors to supervise more effectively the activities provided by third parties, namely enhanced inspection rights, audit rights and sanctioning rights; |
| --- | --- |

50.

| 51. | Calls on the Commission to enhance cooperation at international fora in order to facilitate the development of international standards as regards cloud computing and outsourcing; further calls for an analysis on the need for Union-specific measures in order to bring oversight of cloud computing and outsourcing into line with the level of oversight of legacy systems; points out that there is also a need for international standards to be developed in these areas; takes the view that, while responsibility for compliance lies with financial operators, the oversight of critical third party providers should be aimed towards monitoring concentration risk, financial stability risks and ensuring cooperation between relevant authorities; takes the view that this should be done by granting certain powers to supervisors to supervise more effectively the activities provided by third parties, namely enhanced inspection rights, audit rights and sanctioning rights; |
| --- | --- |

51.

| 52. | Stresses that the resilience of the financial system requires a strong technological framework for the supervision of advanced technological applications in financial services; underscores the need for a concrete strategy that enhances the use of regulatory technology (RegTech) and supervisory technology (SupTech); |
| --- | --- |

52.

| 53. | Calls on the Commission and supervisors to put in pace non-legislative actions to bolster the operational preparedness in the financial sector to deal with large-scale cyber and operational incidents, through joint exercises, operational protocols (‘playbooks’), secure collaboration tools and investments in reinforcements of critical infrastructures and European redundancy capacities; highlights the need for supervisors to have in-house expertise and adequate resources to carry out such exercises and supervisory actions; |
| --- | --- |

53.

| 54. | Calls on the Commission to assess and monitor the risk of trading opportunities on the ‘black market’ emerging, and of money laundering, the financing of terrorism, tax fraud and evasion and other criminal activities; |
| --- | --- |

54.

Data

| 55. | Recalls that the collection and analysis of data play a central role for digital finance, and therefore highlights the need for consistent technology-neutral application of existing data legislation; highlights that artificial intelligence is one of the key technologies as regards enhancing the Union's competitiveness on a global level; |
| --- | --- |

55.

| 56. | Points out that the Union is the global standard setter as regards personal data protection; highlights that the transfer and use of personal and non-personal data in the financial services sector should be done in accordance with all relevant Union law and international agreements while allowing for the lawful and secure flow of data needed to scale up innovative finance initiatives; |
| --- | --- |

56.

| 57. | Stresses that the free flow of data within the Union is needed to scale up innovative finance; points out that cross-border data flows, including to and from third countries, must be monitored and governed under Union law on privacy and data protection; |
| --- | --- |

57.

| 58. | Requests, in this regard, that the Commission ensures that digital finance entities can access on an equitable basis relevant, reliable and useful data in accordance with the GDPR by creating more customer value, fostering the potential of digital finance and providing innovative FinTech businesses with opportunities to grow within the Union and beyond; highlights the importance of respecting competition rules in the internal market and of ensuring that the interests of consumers and innovation are not harmed; calls on the Commission to monitor the offering of financial services by ‘BigTech’ firms, and also how the competitive advantages inherent to these operators may distort competition in the market, harm the interests of consumers and innovation; |
| --- | --- |

58.

| 59. | Highlights the need for the Commission to strike a balance between ensuring data security and consumer protection with maintaining the consumer experience and service efficiency; |
| --- | --- |

59.

| 60. | Requests that the Commission consider, based on the existing Union standard under Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC (23), an infrastructure for digital onboarding and the use of digital financial identities, which would aim to harmonise the existing regulatory requirements across the Union insofar as necessary and facilitate their use to provide for less fragmented operations within the internal market and compliance with the relevant anti-money laundering provisions; highlights the importance and potential benefits of the use of digital financial identities across all sectors and Member States, while ensuring that they comply with data protection and privacy norms and by guaranteeing appropriate and proportionate measures to avoid data or identity incidents; |
| --- | --- |

60.

| 61. | Points out that for KYC processes legal requirements for retail onboarding by financial institutions are different in every Member State and therefore cross border onboarding with existing data sets are often not possible, which is also valid for onboarding of corporate clients and its related KYC/KYB (know your business) process; calls on the Commission to address this issue and foster the harmonisation of the KYC data required by Member States; |
| --- | --- |

61.

| 62. | Acknowledges that interoperability between digital entities on national and Union level is key in order to reach the desired market acceptance; |
| --- | --- |

62.

| 63. | Points out that customer data or ‘big data’, key for creating additional customer value and maintaining competitiveness, is being increasingly used by financial institutions; reiterates the conclusions and recommendations from its resolution of 14 March 2017 on fundamental rights implications of big data: recalls the legislative framework for processing of personal data provided by the GDPR and calls on all stakeholders to increase efforts to guarantee the enforcement of the rights therein; highlights, in particular, the principle regarding the individuals’ right of ownership and control over their data and the right to data portability; |
| --- | --- |

63.

| 64. | Considers that a self-sovereign identity based on DLT can be a key element in developing a range of new services and platforms for the digital single market, independent from data aggregators and avoiding intermediaries, while at the same time providing high security and data protection standards for individual EU citizens; |
| --- | --- |

64.

| 65. | Believes that the lack of accessible and reliable data and information regarding digital finance activities can be a detriment to growth, consumer protection, market integrity and financial stability as well as to the fight against money laundering and terrorism financing, tax evasion and tax avoidance; advocates for increased transparency and enhanced reporting of digital finance activity so as to reduce asymmetries and risks, in particular regarding incumbent big data operators that may draw disproportionate benefits from increased access to data; emphasises the importance of a level playing field as regards cross-border data access as is guaranteed by the GDPR concerning personal data; |
| --- | --- |

65.

| 66. | Points out that in this context standards play a key role in further promoting data management, sharing and exchange, including data interoperability and portability. It also requires a trustworthy and legally secure infrastructure as well as a sound legal framework with regard to data pooling and sharing that give businesses confidence in data cooperation on a cross-company or even cross-industry basis; |
| --- | --- |

66.

| 67. | Calls for effective oversight of ‘big data’ analytics in a way that addresses the opacity of models while ensuring that there is sufficient access to relevant and quality data; emphasises the need for greater accountability, explicability and transparency, with regards to algorithms, data processing and analytics, as essential tools to guarantee that the individual is appropriately informed about the processing of their personal data; |
| --- | --- |

67.

| 68. | Underlines the importance of open banking in improving the quality of payment services by the inclusion of new market participants that provide increased operational and price efficiency to the consumer; points out that a transition from open banking to open finance, i.e. the inclusion of financial services other than payments, is a strategic priority which has the potential to improve efficiency, reduce concentration risks and enhance financial inclusion; |
| --- | --- |

68.

| 69. | Considers that the requested proposal does not have financial implications; |
| --- | --- |

69.

o

o o

| 70. | Instructs its President to forward this resolution and the accompanying recommendations to the Commission and the Council, and to the parliaments and governments of the Member States. |
| --- | --- |

70.

---

(1)  OJ L 119, 4.5.2016, p. 1.

(2)  OJ L 337, 23.12.2015, p. 35.

(3)  OJ L 141, 5.6.2015, p. 73.

(4)  https://op.europa.eu/en/publication-detail/-/publication/98da7b74-38db-11ea-ba6e-01aa75ed71a1/language-en/format-PDF/source-113099411

(5)  https://ec.europa.eu/competition/publications/reports/kd0120161enn.pdf

(6)  https://ec.europa.eu/info/files/200610-cmu-high-level-forum-final-report_en

(7)  JC 2018 74.

(8)  Texts adopted, P8_TA(2019)0301.

(9)  OJ C 11, 13.1.2020, p. 7.

(10)  OJ C 307, 30.8.2018, p. 57.

(11)  OJ C 252, 18.7.2018, p. 239.

(12)  https://coinmarketcap.com

(13)  https://www.europarl.europa.eu/RegData/etudes/STUD/2020/648779/IPOL_STU(2020)648779_EN.pdf

(14)  https://www.ecb.europa.eu/pub/economic-bulletin/articles/2019/html/ecb.ebart201905_03~c83aeaa44c.en.html#toc4

(15)  ESMA Advice — Initial Coin Offerings and Crypto-Assets (https://www.esma.europa.eu/sites/default/files/library/esma50-157-1391_crypto_advice.pdf)

(16)  EBA Report with advice for the European Commission on crypto-assets (https://eba.europa.eu/sites/default/documents/files/documents/10180/2545547/67493daa-85a8-4429-aa91-e9a5ed880684/EBA%20Report%20on%20crypto%20assets.pdf)

(17)  https://www.esrb.europa.eu/news/pr/date/2020/html/esrb.pr200107~29129d5701.en.html

(18)  OJ L 194, 19.7.2016, p. 1.

(19)  OJ L 173, 12.6.2014, p. 349.

(20)  Electronically available via https://ssrn.com/abstract=3102645.

(21)  OJ L 141, 5.6.2015, p. 73.

(22)  ESRB publishes a report on systemic cyberattacks in February 2020 (https://www.esrb.europa.eu/news/pr/date/2020/html/esrb.pr200219~61abad5f20.en.html)

(23)  OJ L 257, 28.8.2014, p. 73.

---

ANNEX TO THE RESOLUTION:

RECOMMENDATIONS AS TO THE CONTENT OF THE PROPOSAL REQUESTED

A.   PRINCIPLES AND AIMS OF THE PROPOSAL

| 1. | To set the groundwork for a future-oriented approach to rules concerning digital finance in the Union; |
| --- | --- |

1.

| 2. | To ensure that digital finance can continue to be an innovative driver of growth and jobs across the single market; |
| --- | --- |

2.

| 3. | To foster a common understanding of the key issues concerning digital finance and encourage the harmonisation of relevant provisions, which will lead to enhanced cross border activity; |
| --- | --- |

3.

| 4. | To increase data sharing in accordance with Union principles in order to stimulate innovation. The aim should be to facilitate access to public data across the Union. This would not only benefit digital finance companies, but would also be to the benefit of a number of other Union policy areas and increase market transparency; |
| --- | --- |

4.

| 5. | To consider three areas for initial action of the Union, specifically developing a framework for crypto-assets, developing a framework for cyber and operational resilience, and also to work to harmonise the concept of digital onboarding within the single market. |
| --- | --- |

5.

B.   ACTION TO PROPOSE

| 1. | To put forward a legislative proposal for Crypto-Assets, which provides legal certainty for the treatment of Crypto-Assets while ensuring high standard of consumer and investor protection, market integrity and financial stability. Such a framework should consider an open-ended and comprehensive pan-Union taxonomy and aim to legislate according to the principle of the same rules applying according to the same activity and risks and principle of proportionality, thereby minimising regulatory arbitrage and ensuring a level playing field.
  Such a legislative proposal should:






  (a) | provide guidance on the applicable regulatory, supervisory and prudential processes and treatment of crypto-assets; adopt specific rules on market transparency and integrity at least equivalent to those of MiFID II for issuers or sponsors of crypto-assets; |
| --- | --- | --- |

1.

Such a legislative proposal should:

(a)

provide guidance on the applicable regulatory, supervisory and prudential processes and treatment of crypto-assets; adopt specific rules on market transparency and integrity at least equivalent to those of MiFID II for issuers or sponsors of crypto-assets;

| (b) | address the regulatory gaps in existing Union legislation as regards to crypto-assets, for example, classifying certain crypto-assets as ‘transferable securities’ under MiFID II to ensure they are treated in the same manner as other transferable securities; |
| --- | --- |

(b)

address the regulatory gaps in existing Union legislation as regards to crypto-assets, for example, classifying certain crypto-assets as ‘transferable securities’ under MiFID II to ensure they are treated in the same manner as other transferable securities;

| (c) | create a bespoke regulatory regime for new and evolving crypto-asset activities, such as ICOs or IEOs, and any crypto-assets which do not fall under the existing regulatory framework, ensuring that they are regulated in a harmonised manner on the Union level; |
| --- | --- |

(c)

create a bespoke regulatory regime for new and evolving crypto-asset activities, such as ICOs or IEOs, and any crypto-assets which do not fall under the existing regulatory framework, ensuring that they are regulated in a harmonised manner on the Union level;

| (d) | address the environmental impact of crypto-mining and the need for solutions aimed at mitigating the ecological footprint of mainstream crypto-assets; |
| --- | --- |

(d)

address the environmental impact of crypto-mining and the need for solutions aimed at mitigating the ecological footprint of mainstream crypto-assets;

| 2. | To move towards stronger regulatory and supervisory convergence, with the aim of developing a common Union framework; calls for a structured dialogue between the ESAs and national competent authorities which should focus on current supervisory challenges and convergence of practices towards seamless supervision on all levels in the area of digital finance; |
| --- | --- |

2.

| 3. | To develop a legislative framework for stablecoins, ensuring that they meet at least the standards of the Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (1), including a stable conversion rate, redeemable at par, with fiat currencies; |
| --- | --- |

3.

| 4. | Based on an assessment, put forward a proposal for a common Union framework for a pan-European sandbox for digital financial services; |
| --- | --- |

4.

| 5. | To strengthen the application of the AML/CTF framework as regards crypto-assets and close the existing loopholes through, in particular, the measures outlined in Paragraphs 33 — 38; |
| --- | --- |

5.

| 6. | Ensure that the proliferation of digital finance leaves no-one behind. Calls on the Commission and the Member States to take measures to enhance digital and financial literacy; |
| --- | --- |

6.

| 7. | To put forward a legislative proposal on cyber resilience, which ensures consistent standards of ICT and cyber security across the Union financial sector, taking into account international standards. Such a framework should be future-oriented and focus on modernising the current rules applicable concerning cyber resilience, while also closing any regulatory loopholes and gaps, which may put businesses, investors and consumers at risk; |
| --- | --- |

7.

| 8. | To appoint a single European supervisor for oversight and registration of all relevant crypto-assets related activities with a cross-border element in the Union, in cooperation with other Union level supervisors, based on a common rulebook; |
| --- | --- |

8.

| 9. | Calls on the Commission to consider undertaking a supervisory overview of ICT providers in the area of financial services which provide their services in the Union as outlined in paragraph 47; |
| --- | --- |

9.

| 10. | Calls on the Commission to propose legislative changes in the area of ICT and cyber security requirements for the Union financial sector. These changes should focus on the four key areas outlined in paragraph 48; |
| --- | --- |

10.

| 11. | To work to develop Union standards in the area of cloud computing and outsourcing, while simultaneously working with international partners to develop international standards, as outlined in paragraph 50; |
| --- | --- |

11.

Data

| 12. | To propose a framework for digital onboarding. Such a framework should comply with relevant Union legislation such as Anti-Money Laundering provisions, data protection and privacy norms and aim to ensure a common understanding of digital financial identities across the single market, while fostering the harmonisation of cross-border onboarding; |
| --- | --- |

12.

| 13. | To work to enhance accountability, explicability and transparency with regards to algorithms, data processing and analytics as outlined in paragraph 66. |
| --- | --- |

13.

---

(1)  OJ L 267, 10.10.2009, p. 7.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/89 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/89

---

P9_TA(2020)0266

Further development of the Capital Markets Union (CMU): improving access to capital market finance, in particular by SMEs, and further enabling retail investor participation

European Parliament resolution of 8 October 2020 on further development of the Capital Markets Union (CMU): improving access to capital market finance, in particular by SMEs, and further enabling retail investor participation (2020/2036(INI))

(2021/C 395/11)

The European Parliament,

| — | having regard to the report of the Next CMU High-Level Group of October 2019, |
| --- | --- |

—

having regard to the report of the Next CMU High-Level Group of October 2019,

| — | having regard to the report of the High-Level Forum on the Capital Markets Union of 10 June 2020, |
| --- | --- |

—

having regard to the report of the High-Level Forum on the Capital Markets Union of 10 June 2020,

| — | having regard to the Commission communication of 10 March 2020 entitled ‘An SME Strategy for a sustainable and digital Europe’ (COM(2020)0103), |
| --- | --- |

—

having regard to the Commission communication of 10 March 2020 entitled ‘An SME Strategy for a sustainable and digital Europe’ (COM(2020)0103),

| — | having regard to the Commission communication of 9 July 2020 entitled ‘Getting ready for changes. Communication on readiness at the end of the transition period between the European Union and the United Kingdom’ (COM(2020)0324), |
| --- | --- |

—

having regard to the Commission communication of 9 July 2020 entitled ‘Getting ready for changes. Communication on readiness at the end of the transition period between the European Union and the United Kingdom’ (COM(2020)0324),

| — | having regard to the Commission communication of 8 March 2018 entitled ‘FinTech Action plan: For a more competitive and innovative European financial sector’ (COM(2018)0109), |
| --- | --- |

—

having regard to the Commission communication of 8 March 2018 entitled ‘FinTech Action plan: For a more competitive and innovative European financial sector’ (COM(2018)0109),

| — | having regard to the Capital Markets Recovery Package proposed by the Commission on 24 July 2020, |
| --- | --- |

—

having regard to the Capital Markets Recovery Package proposed by the Commission on 24 July 2020,

| — | having regard to its resolution of 9 July 2015 on ‘Building a Capital Markets Union’ (1), |
| --- | --- |

—

having regard to its resolution of 9 July 2015 on ‘Building a Capital Markets Union’ (1),

| — | having regard to its resolution of 19 January 2016 on ‘Stocktaking and challenges of the EU Financial Services Regulation: impact and the way forward towards a more efficient and effective EU framework for Financial Regulation and a Capital Markets Union’ (2), |
| --- | --- |

—

having regard to its resolution of 19 January 2016 on ‘Stocktaking and challenges of the EU Financial Services Regulation: impact and the way forward towards a more efficient and effective EU framework for Financial Regulation and a Capital Markets Union’ (2),

| — | having regard to the results of the regular ECB Survey on the Access to Finance of Enterprises, |
| --- | --- |

—

having regard to the results of the regular ECB Survey on the Access to Finance of Enterprises,

| — | having regard to the Commission’s Summer 2020 Economic Forecast, |
| --- | --- |

—

having regard to the Commission’s Summer 2020 Economic Forecast,

| — | having regard to Rule 54 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 54 of its Rules of Procedure,

| — | having regard to the report of the Committee on Economic and Monetary Affairs (A9-0155/2020), |
| --- | --- |

—

having regard to the report of the Committee on Economic and Monetary Affairs (A9-0155/2020),

| A. | whereas all actions taken to create a Capital Markets Union (CMU) should have as their core objective improving the range of more attractive, stable and sustainable financing options offered to companies and citizens, while safeguarding economic stability, minimising financial risk and adequately protecting the interests of retail investors, pensioners and consumers, in order to incentivise financial participation and turn savers into investors; whereas access to equity financing for SMEs, entrepreneurs and the social economy has become even more crucial with a view to the COVID-19 recovery; |
| --- | --- |

A.

whereas all actions taken to create a Capital Markets Union (CMU) should have as their core objective improving the range of more attractive, stable and sustainable financing options offered to companies and citizens, while safeguarding economic stability, minimising financial risk and adequately protecting the interests of retail investors, pensioners and consumers, in order to incentivise financial participation and turn savers into investors; whereas access to equity financing for SMEs, entrepreneurs and the social economy has become even more crucial with a view to the COVID-19 recovery;

| B. | whereas the EU's internal market is characterised by open competition, a regulatory framework, reliance on international standards and supervisory cooperation; whereas the CMU strategy should therefore be based on the same principles; |
| --- | --- |

B.

whereas the EU's internal market is characterised by open competition, a regulatory framework, reliance on international standards and supervisory cooperation; whereas the CMU strategy should therefore be based on the same principles;

| C. | whereas the level of financing required for the recovery of the EU economy creates an imperative need to invest wisely and sustainably for the future generations; whereas the CMU should be a key contributor to the transition towards a sustainable, competitive and resilient economy complementing public investment, in line with the EU Green Deal; whereas a framework to facilitate sustainable investment is currently being developed; whereas this framework forms an integral part of the EU’s efforts, under the CMU, to connect finance with the needs of the economy and the Union’s sustainable development agenda; |
| --- | --- |

C.

whereas the level of financing required for the recovery of the EU economy creates an imperative need to invest wisely and sustainably for the future generations; whereas the CMU should be a key contributor to the transition towards a sustainable, competitive and resilient economy complementing public investment, in line with the EU Green Deal; whereas a framework to facilitate sustainable investment is currently being developed; whereas this framework forms an integral part of the EU’s efforts, under the CMU, to connect finance with the needs of the economy and the Union’s sustainable development agenda;

| D. | whereas EU capital markets could serve the economy and the much-needed economic recovery best when they are transparent, competitive, resilient, centrally cleared and supported by fair regulation; |
| --- | --- |

D.

whereas EU capital markets could serve the economy and the much-needed economic recovery best when they are transparent, competitive, resilient, centrally cleared and supported by fair regulation;

| E. | whereas some investors have higher risk tolerance than others, and whereas not all businesses are in a position to access and benefit from capital market finance; |
| --- | --- |

E.

whereas some investors have higher risk tolerance than others, and whereas not all businesses are in a position to access and benefit from capital market finance;

| F. | whereas the creation of a euro area safe asset is crucial for the financial integration and the development of a CMU; whereas a safe asset in the EU is necessary for the creation of an integrated, deep and liquid European bond market as a central piece of the CMU, which could serve as a euro area pricing benchmark for the valuation of bonds, equities and other assets, and also as collateral across the euro area; |
| --- | --- |

F.

whereas the creation of a euro area safe asset is crucial for the financial integration and the development of a CMU; whereas a safe asset in the EU is necessary for the creation of an integrated, deep and liquid European bond market as a central piece of the CMU, which could serve as a euro area pricing benchmark for the valuation of bonds, equities and other assets, and also as collateral across the euro area;

| G. | whereas most actions taken so far to achieve the CMU are moving in the right direction even though multiple targets have not been reached, and the importance of bank lending as compared to equities has actually increased in recent years; whereas much work remains to be done in terms of the convergence, precision, effectiveness and simplification of the measures adopted; whereas an ambitious vision for the CMU project is essential to overcome national sensitivities and build the momentum to complete the CMU in order to make the EU an attractive market for foreign capital investment and to increase its competitiveness in global markets; |
| --- | --- |

G.

whereas most actions taken so far to achieve the CMU are moving in the right direction even though multiple targets have not been reached, and the importance of bank lending as compared to equities has actually increased in recent years; whereas much work remains to be done in terms of the convergence, precision, effectiveness and simplification of the measures adopted; whereas an ambitious vision for the CMU project is essential to overcome national sensitivities and build the momentum to complete the CMU in order to make the EU an attractive market for foreign capital investment and to increase its competitiveness in global markets;

| H. | whereas the development of a CMU goes hand in hand with the deepening of the Economic and Monetary Union, and in particular with the completion of the Banking Union; whereas in its resolution of 19 June 2020 on ‘Banking Union — annual report 2019’ (3), Parliament urges the completion of the Banking Union through the creation of a fully implemented European Deposit Insurance Scheme; whereas the Banking Union will also remain incomplete as long as it lacks a credible backstop for the Single Resolution Fund; calls further for consideration of the need to establish and create a mechanism of fiscal stabilisation for the euro area as a whole; whereas the CMU must be complemented by counter-cyclical policy measures in order to ensure equal access to financing and to investment opportunities across the EU; |
| --- | --- |

H.

whereas the development of a CMU goes hand in hand with the deepening of the Economic and Monetary Union, and in particular with the completion of the Banking Union; whereas in its resolution of 19 June 2020 on ‘Banking Union — annual report 2019’ (3), Parliament urges the completion of the Banking Union through the creation of a fully implemented European Deposit Insurance Scheme; whereas the Banking Union will also remain incomplete as long as it lacks a credible backstop for the Single Resolution Fund; calls further for consideration of the need to establish and create a mechanism of fiscal stabilisation for the euro area as a whole; whereas the CMU must be complemented by counter-cyclical policy measures in order to ensure equal access to financing and to investment opportunities across the EU;

| I. | whereas financial regulations, in particular in banking and auditing, have recently been modified in response to COVID-19; whereas capital market financing is needed to increase the overall financing capacity and to reduce the reliance on bank lending in the EU; whereas a well-capitalised banking sector will continue to play an important role in financing businesses, especially SMEs; |
| --- | --- |

I.

whereas financial regulations, in particular in banking and auditing, have recently been modified in response to COVID-19; whereas capital market financing is needed to increase the overall financing capacity and to reduce the reliance on bank lending in the EU; whereas a well-capitalised banking sector will continue to play an important role in financing businesses, especially SMEs;

| J. | whereas the lack of a centralised mechanism with easily accessible, reliable, understandable and comparable public information is one of the reasons why companies struggle to find investors; whereas investors find it difficult to evaluate young and small firms with a short business record, thus hindering innovative openings, especially by young entrepreneurs; |
| --- | --- |

J.

whereas the lack of a centralised mechanism with easily accessible, reliable, understandable and comparable public information is one of the reasons why companies struggle to find investors; whereas investors find it difficult to evaluate young and small firms with a short business record, thus hindering innovative openings, especially by young entrepreneurs;

| K. | whereas a consensus has emerged from the experience with the Great Recession that the euro area’s institutional architecture is in need of reform to enhance its capacity to deal with large economic shocks; whereas in this respect the economic literature typically finds that higher shock absorption in the United States results mainly from more effective private risk sharing via credit and capital markets; |
| --- | --- |

K.

whereas a consensus has emerged from the experience with the Great Recession that the euro area’s institutional architecture is in need of reform to enhance its capacity to deal with large economic shocks; whereas in this respect the economic literature typically finds that higher shock absorption in the United States results mainly from more effective private risk sharing via credit and capital markets;

| L. | whereas SMEs accounted for 99,8 % of all enterprises in the EU-28 non-financial business sector (NFBS), generating 56,4 % of value added and 66,6 % of employment in the NFBS; whereas micro SMEs accounted for 93 % of the sector, small SMEs for 5,9 % and medium-sized SMEs for only 0,9 % (4); |
| --- | --- |

L.

whereas SMEs accounted for 99,8 % of all enterprises in the EU-28 non-financial business sector (NFBS), generating 56,4 % of value added and 66,6 % of employment in the NFBS; whereas micro SMEs accounted for 93 % of the sector, small SMEs for 5,9 % and medium-sized SMEs for only 0,9 % (4);

| M. | whereas the social and economic crisis resulting from COVID-19 and the lockdown measures will have a particularly negative impact on SMEs and could similarly affect retail savers; whereas the EU’s response to COVID-19 through the European Recovery Plan should provide a large injection of capital and be complemented by incentives to promote market-based financing and reduce the reliance on bank lending, in order to increase European enterprises’ access to finance and build a resilient EU economy, to preserve jobs and Members States’ productive capacity; |
| --- | --- |

M.

whereas the social and economic crisis resulting from COVID-19 and the lockdown measures will have a particularly negative impact on SMEs and could similarly affect retail savers; whereas the EU’s response to COVID-19 through the European Recovery Plan should provide a large injection of capital and be complemented by incentives to promote market-based financing and reduce the reliance on bank lending, in order to increase European enterprises’ access to finance and build a resilient EU economy, to preserve jobs and Members States’ productive capacity;

| N. | whereas the complexity of the scandal involving German payment service provider Wirecard, a DAX30 company that filed for insolvency on 24 June 2020, revealing deficiencies in the European regulatory framework, requires a careful assessment to determine what went wrong to allow a fraudulent behaviour on a huge scale to go unnoticed for so long; whereas adaptations to the European supervisory architecture for financial reporting, financial innovation, payments, and related areas including audit and Anti-Money Laundering/Countering Terrorism Financing, have once again been highlighted as being urgently needed in light of this latest scandal; |
| --- | --- |

N.

whereas the complexity of the scandal involving German payment service provider Wirecard, a DAX30 company that filed for insolvency on 24 June 2020, revealing deficiencies in the European regulatory framework, requires a careful assessment to determine what went wrong to allow a fraudulent behaviour on a huge scale to go unnoticed for so long; whereas adaptations to the European supervisory architecture for financial reporting, financial innovation, payments, and related areas including audit and Anti-Money Laundering/Countering Terrorism Financing, have once again been highlighted as being urgently needed in light of this latest scandal;

| O. | whereas the CMU needs to mobilise retail demand; whereas to achieve such an objective, retail investors have to experience a change in investment culture; whereas such a change will only happen when retail investors become convinced that investment in capital markets is desirable while being subject to risks that are acceptable and clearly defined; whereas the Commission should explore further opportunities to communicate the benefits of the CMU project, for example with a change of name reflecting the direct link between EU citizens' savings and investments in economic growth and post-COVID recovery, as suggested by the Next CMU High-Level Group; |
| --- | --- |

O.

whereas the CMU needs to mobilise retail demand; whereas to achieve such an objective, retail investors have to experience a change in investment culture; whereas such a change will only happen when retail investors become convinced that investment in capital markets is desirable while being subject to risks that are acceptable and clearly defined; whereas the Commission should explore further opportunities to communicate the benefits of the CMU project, for example with a change of name reflecting the direct link between EU citizens' savings and investments in economic growth and post-COVID recovery, as suggested by the Next CMU High-Level Group;

| P. | whereas, according to recent reports and consumer-focused surveys (5), most European retail investors have sustainability preferences and want to take into account environmental, social or governance factors and risks in their investment decisions, but are rarely offered compatible products; |
| --- | --- |

P.

whereas, according to recent reports and consumer-focused surveys (5), most European retail investors have sustainability preferences and want to take into account environmental, social or governance factors and risks in their investment decisions, but are rarely offered compatible products;

| Q. | whereas the market movements resulting from COVID-19 have acted as a real-life ‘stress test’ on the robustness of the whole financial ecosystem, and should be followed up with a detailed assessment of the benefits and shortcomings of the existing EU rulebook on financial stability and financial supervision; |
| --- | --- |

Q.

whereas the market movements resulting from COVID-19 have acted as a real-life ‘stress test’ on the robustness of the whole financial ecosystem, and should be followed up with a detailed assessment of the benefits and shortcomings of the existing EU rulebook on financial stability and financial supervision;

| R. | whereas the departure of the UK from the European Union brings structural changes to the EU financial system; whereas the EU capital markets post-Brexit will have a polycentric character, facing greater risk for fragmentation in the EU; underlines the importance of promoting policies and measures, including a robust approach to third-country access to the EU’s market and a dynamic monitoring system on equivalence regimes, that ensure the resilience, connectivity and competitiveness of the EU financial markets as well as their stability and a level playing field; whereas equivalence can only be granted if the regulatory and supervisory regime and standards of the relevant third country are deemed to fulfil the relevant requirements laid down in EU legislation in order to ensure a level playing field; |
| --- | --- |

R.

whereas the departure of the UK from the European Union brings structural changes to the EU financial system; whereas the EU capital markets post-Brexit will have a polycentric character, facing greater risk for fragmentation in the EU; underlines the importance of promoting policies and measures, including a robust approach to third-country access to the EU’s market and a dynamic monitoring system on equivalence regimes, that ensure the resilience, connectivity and competitiveness of the EU financial markets as well as their stability and a level playing field; whereas equivalence can only be granted if the regulatory and supervisory regime and standards of the relevant third country are deemed to fulfil the relevant requirements laid down in EU legislation in order to ensure a level playing field;

| S. | whereas Fintech has the potential to suit certain needs of SMEs and retail investors by allowing decentralised ways of operating and delivering efficiency improvements; |
| --- | --- |

S.

whereas Fintech has the potential to suit certain needs of SMEs and retail investors by allowing decentralised ways of operating and delivering efficiency improvements;

Financing business

| 1. | Takes note of the Commission communication of 24 September 2020 entitled ‘A Capital Markets Union for people and business — new action plan’ (COM(2020)0590); insists on the need to complete the CMU to contribute to the economic and social recovery after the COVID-19 pandemic; asks the Commission to make a stronger commitment to achieving real progress on issues such as supervision, taxation and insolvency laws, which still represent major obstacles to the true integration of EU capital markets; |
| --- | --- |

1.

| 2. | Calls for the removal of barriers and red tape, where appropriate, including the simplification and more proportional application of legislation where relevant and conducive to financial stability, in order to diversify funding sources for European companies, with a particular focus on SMEs, including start-ups and mid-caps, so as to promote their ability to access equity markets, and to access more diverse, longer-term and more competitive investment opportunities for retail and large investors; highlights the need to reduce the existing debt bias; points out that the current situation makes European companies and especially SMEs more fragile and vulnerable; calls for the introduction of an ‘SME test’ for impact assessments on each CMU initiative; |
| --- | --- |

2.

| 3. | Notes that the necessary measures to ensure that SMEs, including start-ups and mid-caps, find their way to financial markets include facilitating investment research, streamlining the definition of SMEs across relevant EU legislation, and easing issuance requirements; calls on the Member States to rebalance the debt-equity bias in taxation; supports the revision of the Markets in Financial Instruments Directive (MiFID II) regime for inducements to SME investment research; |
| --- | --- |

3.

| 4. | Calls on the Commission to draft a legislative proposal on ‘European Secured Notes’ (ESNs), as a new dual-recourse funding instrument for banks which could help improve access to financing for SMEs across the EU; recalls that ESNs could be targeted to specific objectives, such as supporting SMEs in the transition to a more competitive and sustainable economy and in channelling funding to the real economy; |
| --- | --- |

4.

| 5. | Calls on the Commission to strengthen the mandatory feedback given by banks when declining SME credit applications, as a more comprehensive feedback could give the opportunity to SMEs with declined requests to adapt their business approach and to learn; |
| --- | --- |

5.

| 6. | Calls for further integration and improvement of European capital markets to make them as attractive, competitive, and resilient as possible, especially also in the context of the withdrawal of the United Kingdom from the EU; |
| --- | --- |

6.

| 7. | Emphasises the fundamental importance of enhancing the euro area’s risk absorption capacity; |
| --- | --- |

7.

| 8. | Highlights that euro area countries can enhance their internal capacity to deal with macroeconomic shocks, in particular by effectively reducing vulnerabilities in their economies, banking sectors, and public finances; considers further that economic resilience needs to be improved via structural reforms that support potential growth and increase flexibility; |
| --- | --- |

8.

| 9. | Stresses that efficient and integrated financial markets are a core prerequisite for efficient private risk sharing in the euro area; considers that a genuine CMU could significantly help to diversify and reduce risk; |
| --- | --- |

9.

| 10. | Notes the decline of Initial Public Offering (IPO) markets in the EU, reflecting their limited attractiveness for, in particular, smaller companies; highlights in this regard that SMEs face disproportionate administrative burdens and compliance costs associated with listing requirements; takes the view that the efficiency and stability of financial markets should be improved and that the listing of companies should be facilitated; encourages the creation and prioritisation of a large, private and pan-European fund, an IPO Fund, to support SME funding; notes the need to ensure an attractive pre-IPO and post-IPO environment for SMEs; |
| --- | --- |

10.

| 11. | Welcomes the idea of the High Level Forum to establish a European Single Access Point (ESAP) to aggregate information about companies in the EU through the interconnection of existing national and EU registers and company databases, as a way to help companies, in particular in smaller Member States, to attract investors; stresses that companies should be able to control the availability of their data in the ESAP; calls on the Commission to submit a legislative proposal for a European Single Access Point for financial and non-financial information in respect of listed and unlisted EU companies, while also respecting the proportionality principle where appropriate; calls on the Commission to streamline the transparency requirements under the Non-Financial Reporting Directive (NFRD) with those under the Taxonomy Regulation and the Sustainable Finance Disclosure Regulation; |
| --- | --- |

11.

| 12. | Calls for consideration whether the treatment under the Capital Requirements Regulation (CRR) of minority interest of subsidiaries may discourage listing on the stock markets, having in mind financial stability concerns and any added value for the financing to the real economy; |
| --- | --- |

12.

| 13. | Calls for the acceleration of the development of EU venture capital (VC) and private equity markets under a common and transparent framework for European Venture Capital Funds (EuVECAs) (6), by increasing the availability of funding for VC investments and developing larger early and late stage VC funds, tax incentive schemes for VC and business angel investments, as well as active IPO markets for VC-backed companies; underlines that these tax incentive schemes should be designed so as to be economically and socially viable and responsible, and be subject to systematic monitoring and evaluation; |
| --- | --- |

13.

| 14. | Points out the necessity to increase transparency and reduce fragmentation within the European VC markets; stresses the need to boost the European Long-Term Investment Funds (ELTIFs), the EuVECAs and the European Social Entrepreneurship Funds (EuSEFs), in order to develop pan-European vehicles for private equity; supports the review of Regulation (EU) 2015/760 on European long-term investment funds (7), including analysis of possible targeted adjustments to related prudential calibrations in the banking and insurance regulatory frameworks while safeguarding financial stability, as a way to enable retail investors engaging in the long-term financing of unlisted companies, infrastructure projects and sustainable investments, in order to make use of the ELTIFs’ full potential; |
| --- | --- |

14.

| 15. | Calls for measures to revitalise securitisation markets in Europe by making them attractive for issuers and investors; asks the European Supervisory Authorities (ESAs) and the Commission to finalise all Regulatory Technical Standards; calls for the simplification and streamlining of regulatory requirements for disclosure, simple, transparent and standardised (STS) criteria, STS verification and the provision of simple and risk-sensitive parameters for the assessment of Significant Risk Transfer; |
| --- | --- |

15.

| 16. | Takes note of the proposals on securitisation presented on 24 July 2020 within the Capital Markets Recovery Package; requests the Commission to assess how targeted amendments to the Securitisation Regulation could free up financing capacity, so as to avoid a reduction of European bank lending while addressing financial stability concerns, given that the nature of some synthetic securitisation may create specific prudential and systemic risks; takes the view that such targeted assessment could include the realignment of the treatment of cash and balance-sheet synthetic securitisations and of regulatory capital and liquidity with that of covered bonds and loans, as well as a review of the disclosure and due diligence requirements for third-party securitisation, covered bonds, and simple, transparent and standardised (STS) securitisation; |
| --- | --- |

16.

| 17. | Calls on the Commission to assess the impact on financial stability of potential targeted measures, aligning and simplifying securities market legislation, to facilitate expeditious recovery after the COVID-19 crisis, to facilitate investment in the real economy, in particular in SMEs, and to allow newcomers and new products to enter the markets, preserving consumer protection and market integrity while encouraging cross-border equity investment and trade; furthermore, calls on the Commission to assess whether it is necessary to review the Markets in Financial Instruments Regulation (MiFIR), including the Share Trading Obligation (STO) and Derivative Trading Obligation (DTO), in order to eliminate potential frictions that can impact the ability of EU companies to raise capital at this time, especially in view of the end of the transition period between the EU and the UK; |
| --- | --- |

17.

| 18. | Regrets the underdevelopment of the EU market for crowdfunding as compared to other major economies; welcomes the new uniform set of criteria for EU-wide rules agreed in December 2019 (2018/0048(COD)) to help to resolve this situation and foster cross-border business funding; requests the European Securities and Market Authority (ESMA) and the Commission to closely monitor the implementation of the new rules in order to react and propose changes if no significant improvements are observed in crowdfunding as an alternative for financing SMEs; calls on the Commission and the Member States to actively inform SMEs of the alternative financing instruments available to them; |
| --- | --- |

18.

| 19. | Calls on the Commission to explore initiatives to incentivise employee share ownership, in order to promote the direct involvement of retail savers in the financing of the economy, and also as a tool to improve corporate governance and help develop an equity culture; |
| --- | --- |

19.

| 20. | Calls on the Commission to promote the direct involvement of retail savers in financing the economy, considering the possibility of return on investment for retail investors; |
| --- | --- |

20.

| 21. | Invites the Commission to review the settlement discipline regime under the Central securities depositories regulation (CSDR), in view of the COVID-19 crisis and Brexit; |
| --- | --- |

21.

Promoting long-term and cross-border investments and financial products

| 22. | Asks the Member States to amend their national tax frameworks in order to reduce tax obstacles to cross-border investments, including procedures for a cross-border refund to investors, including retail investors, of withholding tax on dividends where double taxation is at stake; takes the view that such procedures should be cleared transparently on a pan-European digital platform and should enable investors to determine returns on their investment in real time; calls on Member States to work closely with the OECD and its Tax Relief and Compliance Enhancement (TRACE) Project, to rebalance the equity-debt bias penalising the financing of innovation through private investment, and to incentivise long-term investment opportunities for investors in order to help EU citizens gain better returns on their long-term savings; |
| --- | --- |

22.

| 23. | Takes the view that amending national tax frameworks unilaterally within the EU to reduce tax obstacles to cross-border investments will further entrench the patchwork of tax rules that companies must comply with when operating cross-border, with numerous costs, and offer further possibilities for tax avoidance; reiterates its call on the Member States to agree on the adoption of the proposals concerning the Common Consolidated Corporate Tax Base (CCCTB) simultaneously, taking into consideration Parliament’s opinion, which already includes the concept of virtual permanent establishment and apportionment formulas; calls on the Member States to bridge their diverging positions on CCCTB, given the importance of this instrument for creating a framework that fosters certainty, prevents double taxation and reduces administrative costs, thereby enhancing cross-border investments; |
| --- | --- |

23.

| 24. | Highlights the importance of increasing legal certainty for cross-border investments by making national insolvency proceedings more efficient and effective, and by further harmonising rules on corporate governance, including a common definition of ‘shareholder’ to facilitate the exercise of shareholder rights and engagement with investee companies across the EU; highlights the importance of ensuring a sound legal protection framework for cross-border investments within the EU after the termination of intra-EU bilateral investment treaties; calls on the Commission to propose legislative initiatives and/or issue recommendations to Member States, as appropriate; |
| --- | --- |

24.

| 25. | Highlights the importance of financial market participants’ long-term equity investments for supporting independent European enterprises in the Union, strong and resilient strategic sectors, sustainable economic growth and prosperity for the benefit of EU citizens; |
| --- | --- |

25.

| 26. | Stresses the necessity of advancing further in the implementation and enforcement of a genuine single rulebook for financial services in the internal market, including in relation to common definitions and standards on sustainable finance; calls on the Commission and the ESAs to focus on the use of supervisory convergence tools and to enhance their effectiveness; |
| --- | --- |

26.

| 27. | Underlines the need to promote pension provision, particularly when it comes to second and third pillar pensions, given the massive demographic changes that the Union faces; welcomes the Pan-European Personal Pension (PEPP) product; notes that PEPP is a complementary and voluntary pension product in addition to national public pensions; recalls that tax treatment will be a key consideration for the take-up of future PEPPs; recalls the Commission recommendation of 26 June 2017 inviting Member States to ensure that PEPPs are subject to the same tax treatment as national pension products to become an option for savers; calls for a thorough, evidence-based evaluation of the PEPP market, also as regards the existence of a level playing field, before the next legislative review of the PEPP Regulation; |
| --- | --- |

27.

| 28. | Encourages the Member States to promote funded pension systems, as a way to deepen the pools of European capital available for long-term investment, and to improve market dynamics and the incentives to invest; believes that funded pensions should be revitalised and made more attractive; calls for actions to overcome the obstacles to the coexistence of public and private pension systems; encourages the participation of investors in long-term products with tax incentive policies designed to generate a beneficial economic and social impact and to promote a level playing field across providers and product types; |
| --- | --- |

28.

| 29. | Encourages the Commission to consider the introduction of an EU ‘de minimis’ or exemption regime for distribution to professional and/or semi-professional investors in the framework of the directive on Undertakings for Collective Investments in Transferable Securities (UCITS); |
| --- | --- |

29.

| 30. | Recalls that the Solvency II Directive requires a review by the end of 2020 and that the European Insurance and Occupational Pensions Authority (EIOPA) will provide technical advice to the Commission, including lessons learnt from the COVID-19 outbreak, in particular on the coverage of pandemic-related risks, after consultations with different stakeholders; requests the Commission and EIOPA to assess, on the basis of a targeted impact assessment, the potential benefits and prudential justification of adjusting capital requirements for investments in equity and private debt, in particular of SMEs, possibly also through the internal model approach, to ensure that capital requirements for insurers and pension funds do not discourage long-term investments; encourages the rapid phasing-out of national exemptions and the reduction of ‘gold-plating’ in the national implementation of Solvency II; |
| --- | --- |

30.

| 31. | Underlines the need to create and stimulate the availability of suitable sustainable assets; encourages the Commission to put forward a legislative initiative for an EU Green Bond Standard; calls for further discussions on the creation of a European safe asset, based on an evaluation to be performed by the Commission of the sovereign bond-backed securities (SBBS) proposal and possible developments, in order to strengthen the international role of the euro, stabilise financial markets and allow banks to diversify their portfolios; |
| --- | --- |

31.

| 32. | Stresses that adequate prudential rules providing a loss absorption capacity are fundamental to preserve financial stability, while a balance must be sought to ensure that the capacity of financial institutions to invest and lend to the real economy and the EU's global competitiveness are improved; calls on the Commission, in implementing the finalised Basel III standards, to pay due attention to risk weights applicable to banks' investments in equity, especially SMEs’ long-term equity; |
| --- | --- |

32.

| 33. | Stresses that the CMU should be consistent and coherent with the European Green Deal, and in particular with the Sustainable Europe Investment Plan and the EU taxonomy for sustainable activities; considers that the CMU should aim to direct investments towards environmentally friendly and competitive projects, thereby contributing to the EU's sustainable agenda; |
| --- | --- |

33.

Market architecture

| 34. | Stresses the need for efficient and effective cooperation between European and national supervisory authorities, in order to overcome their differences and to work together towards genuine supervisory convergence to promote a common European model of supervision and enforcement, guided by the European Securities and Market Authority (ESMA), so as to reduce the existing obstacles to cross-border financial operations; notes the importance of ESMA, EIOPA and the European Banking Authority (EBA) in this process, while also respecting the role of the National Competent Authorities (NCAs) as laid down in the recently agreed review of the European System of Financial Supervision (ESFS); recalls furthermore the need to reform the governance structure of the ESAs to make them more independent of national supervisors; |
| --- | --- |

34.

| 35. | Calls on the Commission, with a view to potential efficiency gains, to consider gradually granting ESMA direct supervisory powers, including direct oversight over certain market segments, such as EU Central Counterparties (CCPs) and Central Securities Depositories (CSDs), and the European Single Access Point, as well as greater product intervention powers; stresses also the need to appoint a single European supervisor, in cooperation with the relevant NCAs, on the basis of a common rulebook and product intervention powers for oversight on crypto-assets related activities with a significant cross-border element in the EU; |
| --- | --- |

35.

| 36. | Is concerned about the recent scandal involving the German FinTech company Wirecard; in this regard, asks the Commission and the EU competent authorities to assess to what extent this scandal can be attributed to deficiencies in the EU regulatory framework in the area of audit and supervision, and whether national and EU supervisors are sufficiently equipped to effectively supervise big cross-border financial institutions with complex business models that involve different third-country jurisdictions and multiple corporate layers; calls for the drawing of conclusions from this case in relation to the further development of the EU regulatory and supervisory framework, and in particular to the CMU action plan; believes these conclusions should address whether direct supervision at European level in specific areas could have prevented this failure, and whether an ambitious reform of the governance of the ESAs, with a stronger role in reducing the existing obstacles to cross-border financial operations, would be warranted; reiterates in particular its call on the Commission to look into ways of improving the functioning of the accounting sector, including through joint audits; |
| --- | --- |

36.

| 37. | Highlights EU-wide competition, choice and access to market infrastructures as fundamental principles for the diversity of trading mechanisms in the CMU, except where such access would endanger financial stability; notes with concern that over the past years an increasing share of trading flows has gone to trading venues with limited transparency requirements, and points out that such trading does not contribute meaningfully to price discovery; notes that levels of bilateral trading off-venue remain high; advocates a genuine shift towards competitive and on-exchange trading in European equity and derivatives markets, while ensuring a level playing field between different trading venues; |
| --- | --- |

37.

| 38. | Considers that well-funded civil society operators and consumers’ representatives in the field of financial services can offer invaluable insight and independent assessment to policymakers and regulators; |
| --- | --- |

38.

| 39. | Underlines the need, in order to reduce the fragmentation risk stemming from the application of national options and discretion, to progress on common European standards; |
| --- | --- |

39.

| 40. | Observes that the regulation of financial services is a very complex undertaking, existing at international, European and national level; encourages all relevant actors to address this complexity in order to ensure the proportionality of financial regulation, and to remove unnecessary administrative burdens; also notes that proportionality of financial regulation can sometimes lead to increased complexity, and calls on the Commission and the Member States to commit to significant efforts to streamline and harmonise existing and future rules, by phasing out national exemptions as appropriate and by preventing the ‘gold-plating’ of EU law at national level; highlights that regulations with clear timelines for transition and the phasing-out of existing regimes can build a smooth and steady path to regulatory convergence; |
| --- | --- |

40.

| 41. | Reiterates the call made in its resolution of 19 January 2016 on ‘Stocktaking and challenges of the EU Financial Services Regulation’, for the Commission to conduct, every five years and in cooperation with the ESAs, the Single Supervisory Mechanism (SSM) and the European Systemic Risk Board (ESRB), a comprehensive quantitative and qualitative assessment of the cumulative impact of EU financial services regulation on the financial markets and their participants at EU and Member State level, in order to identify shortcomings and loopholes, assess the performance, effectiveness and efficiency of the regulation of financial services, ensure that it is not impeding fair competition and the development of the economy, and report back to Parliament; regrets that no such assessment has been conducted thus far; |
| --- | --- |

41.

| 42. | Calls on the Commission to present a detailed roadmap to strengthen the robustness of the financial ecosystem, drawing lessons from the benefits and shortcomings of the existing EU rulebook on financial stability and financial supervision, as identified during the COVID-19 crisis; takes note of the recent recommendations from the ESRB, notably on liquidity risks arising from margin calls and liquidity risks in investment funds; |
| --- | --- |

42.

Retail investors

| 43. | Emphasises the fact that there is no sound market without a wide investor base; is concerned that retail investors’ engagement with financial markets remains low; states the need to increase the portfolio of suitable investment options for retail investors; calls for measures to promote retail investments in view of the demographic challenges faced by the EU, by increasing the participation of retail investors in capital markets through more attractive, transparent and appropriate personal pension products; calls for initiatives specifically targeting retail investors, including facilitating the development of independent web-based EU comparison tools, to help retail investors determine the most appropriate products in terms of risk, return on investment and value for their particular needs and preferences, and promoting incentives for competitive Environmental, Social and Governance (ESG) products and for products typically associated with better value for money; |
| --- | --- |

43.

| 44. | Regrets with concern that the consumer and investor protection provisions in several sectorial pieces of EU financial services legislation are poorly aligned, resulting in undue complexity for financial intermediaries and retail clients alike; calls on the Commission to adopt a more horizontal and harmonised approach to consumer and investor protection in EU financial services legislation, adapted to the green and digital transformation, in order to ensure effective and consistent levels of protection across all financial products and providers; |
| --- | --- |

44.

| 45. | Underlines the importance of enhancing investor confidence in the capital markets, fostered by sound investor protection and supported by financially literate market participants; |
| --- | --- |

45.

| 46. | Stresses the need for a level playing field between financial services firms and digital technology firms, as long as a one-size-fits-all approach is not applied; emphasises that access to financial markets should be possible for all enterprises under the ‘same business, same rules’ principle; notes that this principle is particularly relevant in the FinTech and financial innovation areas, and that reciprocal access to financial data should be balanced with the need to have a level playing field across all providers and product types; |
| --- | --- |

46.

| 47. | Emphasises that the single market for retail financial services is very underdeveloped; notes that purchasing retail financial services products such as mortgage loans or insurance products on a cross-border basis is very uncommon and embedded with obstacles; considers that retail market participants should be easily able to take full advantage of the single market to access retail financial services products on a cross-border basis in order to secure more choice and better products; calls on the Commission to put in place a new Action Plan for retail financial services that sets out an ambitious strategy to remove obstacles for cross-border retail financial services, along with the elimination of unnecessary and excessive fees for such services; |
| --- | --- |

47.

| 48. | Calls for the improvement of the disclosure and comparability of key information and the elimination of misleading information in the legislation on Packaged Retail Insurance-based Investment Products (PRIIPs), issues which should be addressed in the next review; expects that Level 2 PRIIPs legislation on the Key Investor Document will respect the level 1 legislation, in particular on the provision of accurate, fair, clear and non-misleading pre-contractual information and on the methodologies related to the performance scenarios, as well as ensuring comparability among different investment products; notes the importance of ensuring both that past performance information is available to investors and that past performance cannot be used as an indicator to predict future returns; regrets the delays in the adoption of Level 2 PRIIPs legislation, which will overlap with the first review of PRIIPs and increase legal uncertainty and costs for stakeholders; insists that the forthcoming review should provide for disclosure documents which are standardised and machine-readable, thereby enabling comparability in a digital-friendly way; calls on the Commission and the ESAs to coordinate their proposals for their respective level 1 and level 2 changes in a way that guarantees a high degree of predictability for intermediaries and retail clients alike; |
| --- | --- |

48.

| 49. | Urges the Commission to clarify the differentiation between professional and retail investors on all levels of MiFID, making it possible to tailor the treatment of clients according to their knowledge and experience on the markets; takes the view that it is important to allow retail investors to be considered professional investors according to clear criteria, upon request; requests the Commission to consider if the introduction of a category of semi-professional investors would better respond to the reality of participation on the financial markets and, on the basis of its findings, assess whether the introduction of such a category would be needed or not; alternatively, requests the Commission to consider more flexibility in the client categorisation, namely through opt-out options for certain obligations and opt-in options for certain clients, or to make the existing criteria for professional investors more efficient; |
| --- | --- |

49.

| 50. | Has been made aware that the current reporting framework within MiFID II and the European Market Infrastructure Regulation (EMIR) is very costly and complex, hindering the effectiveness of the system; believes that a simplification thereof should be considered, taking full account of current experience, exploring streamlining across legislation, and ensuring that this in no way serves to undermine the aims set for MiFID II and EMIR and does not hinder the rules on market integrity, transparency, consumer protection and financial stability; |
| --- | --- |

50.

| 51. | Calls for amendments to legislation to ensure access to independent advice by financial intermediaries without undue promotion of the financial products manufactured ‘in-house’, and with a thorough assessment of products from a range of manufacturers, and to ensure a fair and transparent marketing of financial products; notes that ESMA has adopted a nuanced view on a potential ban on inducements, and calls on the Commission to explore alternative approaches, with similar effects on aligning interests across the entire distribution chain; agrees that the role of inducements in intermediation and distribution should be further examined to ensure that no conflicts of interest arise and that financial advice is fairly, transparently and adequately supplied to investors; |
| --- | --- |

51.

| 52. | Underlines that mystery shopping is an important supervisory tool which can considerably improve the consistency and effectiveness of consumer protection across the EU; invites ESMA to make full use of its new coordination powers by promoting EU-wide mystery shopping exercises to identify mis-selling practices and to ensure that any findings of non-compliance with consumer protection and business conduct rules are followed by appropriate enforcement actions; |
| --- | --- |

52.

| 53. | Proposes to the Commission that it look into the possibility of establishing an EU Individual Savings Account, as a complement to national regimes, that could overcome the fragmentation of national markets by operating in a uniform manner and across heterogeneous markets, ensuring portability and security of savings; |
| --- | --- |

53.

| 54. | Insists that retail investors will be an integral part of the sustainable finance agenda and the EU’s sustainable development agenda; calls on the Commission to ensure that the taxonomy label methodology is clear and understood by retail investors; |
| --- | --- |

54.

Financial education

| 55. | Notes that lack of financial literacy and lack of access to widespread public information about financial markets are among the factors that explain the lack of an equity culture in the EU; underlines that financial education is needed to enable consumers to know their rights and understand the risks associated with financial market participation, in order to accelerate retail investor engagement with the financial markets based on increased knowledge, trust and risk awareness; urges the Commission to launch and support programmes in Member States to foster financial and digital literacy using a range of instruments, including digital and social media, to engage with citizens and businesses, especially through public agencies created for that effect; calls on financial services providers to better facilitate retail investors’ participation in capital markets, and to support overcoming their savings bias by creating an equity culture, in accordance with their risk profile; |
| --- | --- |

55.

| 56. | Emphasises that financial education is a medium-term tool, whose effects are limited due to inevitable cognitive biases, the speed of change in financial markets and their sheer complexity; stresses that financial education cannot replace access to reliable and impartial professional financial advice; notes that employee share ownership programmes are among the most effective means of increasing financial awareness and literacy for adult EU citizens; |
| --- | --- |

56.

| 57. | Believes that a more informed and better-educated citizenship on financial issues is beneficial to democratic systems, contributes to the stability of financial systems, and promotes the transparency and duties of information of financial institutions; calls on the Commission to propose a review of the Council recommendation on ‘Key Competences on Lifelong Learning’, and to introduce financial literacy as a standalone key competence; also encourages financial institutions to develop and implement programmes that aim to expand financial literacy and capability, building opportunities for financial inclusion for all citizens; |
| --- | --- |

57.

| 58. | Urges the Member States, as well as, where appropriate, competent regional, local or other public authorities, to consider including or expanding financial literacy in all curricula from school to university, with evolving programmes that are adapted to the needs of pupils and students and curricula that are aimed at developing autonomy in financial matters; suggests that such programmes should at least include basic financial concepts such as compound interest, returns and annuities, and the distinction between bonds and shares; suggests the inclusion of financial literacy in the Programme for International Student Assessment (PISA) study; |
| --- | --- |

58.

Digitalisation and data

| 59. | Takes the view that the digitalisation of financial services can be a catalyst for the mobilisation of capital and could help overcome the fragmentation of the financial markets in the EU while reducing barriers and increasing supervisory efficiency; underlines that digitalisation should lead neither to regulatory arbitrage nor to lower customer protection, reduced safety or financial stability risks; emphasises that an EU framework with high standards of cybersecurity, including on the protection of privacy and on data protection, could be conducive to the CMU; observes that digital finance has a strong capital flow element which attracts cross-border investments; notes that such a EU framework should be primarily fit for the digital age and technology-neutral; |
| --- | --- |

59.

| 60. | Calls on the Commission to work towards the implementation of the Digital Finance Action Plan for better access to financial services offering wider choice and increasing efficiency of operations; |
| --- | --- |

60.

| 61. | Calls on the Commission to use the forthcoming reviews of financial services regulations to foster investor and shareholder engagement through digital tools; |
| --- | --- |

61.

| 62. | Emphasises the need for European markets to be able to compete globally; calls on the Commission to create a favourable environment for innovative and competitive EU financial products, with a global reach to attract foreign capital and investment and to promote the EU’s competitiveness in global markets, whilst maintaining high levels of prudential regulation and financial stability; reiterates the need for a more streamlined and codified representation of the EU in multilateral organisations and bodies, in line with Parliament’s resolution of 12 April 2016 on the EU role in the framework of international financial, monetary and regulatory institutions and bodies (8); |
| --- | --- |

62.

| 63. | Stresses that crypto-assets are becoming a non-traditional financing channel for SMEs, notably initial coin offerings that have the potential to fund innovative start-ups and scale-ups; insists in this regard that a clear and consistent guidance at EU level is needed on the applicability of existing regulatory and prudential processes to crypto-assets that qualify as financial instruments as far as EU legislation is concerned, in order to provide regulatory certainty and avoid a non-level playing field, forum shopping and regulatory arbitrage in the internal market; |
| --- | --- |

63.

| 64. | Notes that some oligopolistic structures have developed in the area of financial services, and also that some large technology companies have become important players in the financial services market; calls on the Commission to monitor and investigate how the competitive advantages inherent to these operators may distort competition in the market and harm the interests of consumers and innovation; stresses that no disincentives should be created to providing market data in the first place and that a comprehensive review on the cost and availability of market data for all market participants should be conducted; |
| --- | --- |

64.

| 65. | Highlights that ‘sandboxes’ may be an adequate tool to enhance the innovation and competitiveness of the financial services sector; underlines that any sandbox, including a pan-European ‘sandbox’, should seek to strike a balance between the objective of fostering innovation and financial stability and the protection of investors and consumers, while taking into account the size, systemic significance and cross-border activity of the firms concerned; requests that the Commission draw upon the experience gained from the European Forum for Innovation Facilitators (EFIF) to assess whether a common EU framework for a pan-European ‘sandbox’ for financial services would provide additional benefits for financial innovation; |
| --- | --- |

65.

| 66. | Calls for efforts focused on preserving a level playing field based on cross-border data access, and a high level of consumer data protection and privacy, making the EU a framework with high standards of cybersecurity which would be conducive to the CMU; |
| --- | --- |

66.

The EU’s role in global markets

| 67. | Points out that Europe competes for capital in a global market, and that, as a result, deeper, more integrated, well-regulated, stable, efficient and resilient European capital markets are critical to protecting Europe’s economic sovereignty, to encouraging the use of the euro in third countries, and to attracting foreign investors; believes that the exit of the UK from the EU makes this objective even more important and that it should be pursued according to transparent rules-based criteria and not case by case; |
| --- | --- |

67.

| 68. | Reiterates that EU legislation provides for the possibility of considering third-country rules as equivalent on the basis of a technical, proportional and risk-based analysis, and that such decisions should be taken through a delegated act; recalls that the EU can unilaterally withdraw any equivalence decision and that any divergence from EU regulatory standards should be closely monitored; calls on the Commission, in cooperation with the ESAs, and where relevant with NCAs, to establish a dynamic monitoring system on equivalence regimes, in the case of third-country regulatory and supervisory divergences which could entail potential risks for the EU in terms of financial stability, market transparency, market integrity, investor and consumer protection and the level playing field; highlights that the Commission should have emergency procedures in place to withdraw equivalence decisions in case of the need to act swiftly, bearing in mind the potential consequences of an emergency withdrawal of an equivalence decision; emphasises the need to ensure that EU supervisors have direct supervisory powers in case the activities of certain third-country firms recognised under the EU equivalence framework may impact financial stability, orderly markets or investor protection; |
| --- | --- |

68.

| 69. | Recalls the need to ensure interoperability of the EU’s regulatory framework with the internationally agreed principles of the Basel Committee on Banking Supervision and the Financial Stability Board; |
| --- | --- |

69.

| 70. | Calls for action to strengthen the international role and use of the euro, by completing the Economic and Monetary Union, the CMU and the Banking Union, supporting the development of euro-benchmarks for commodity markets, and reinforcing the role of the euro as a reference currency; |
| --- | --- |

70.

| 71. | Considers that a level playing field should be guaranteed in future relations with the United Kingdom after the transition period, thus promoting the stability of the EU’s financial markets. |
| --- | --- |

71.

| 72. | Encourages the EU financial sector to be prepared for the many technical challenges they will face in moving trades from London to the EU; recalls that the ECB, the ESRB, the ESAs and the Commission concluded that market participants would need at least 18 months to meaningfully reduce their exposure to UK CCPs; takes note, in this context, of the decision of the Commission to grant the UK equivalent status for 18 months in the event of a no-deal Brexit; recalls that equivalence decisions can be unilaterally withdrawn at any time by the Commission, in particular if third-country frameworks diverge and the conditions for equivalence are no longer fulfilled; |
| --- | --- |

72.

o

o o

| 73. | Instructs its President to forward this resolution to the Council, the Commission, the ESAs and the European Central Bank. |
| --- | --- |

73.

---

(1)  OJ C 265, 11.8.2017, p. 76.

(2)  OJ C 11, 12.1.2018, p. 24.

(3)  Texts adopted, P9_TA(2020)0165.

(4)  European Commission Annual Report on European SMEs 2018/2019.

(5)  See for example: https://2degrees-investing.org/wp-content/uploads/2020/03/A-Large-Majority-of-Retail-Clients-Want-to-Invest-Sustainably.pdf

(6)  Regulation (EU) No 345/2013 of the European Parliament and of the Council of 17 April 2013 on European venture capital funds (OJ L 115, 25.4.2013, p. 1).

(7)  OJ L 123, 19.5.2015, p. 98.

(8)  OJ C 58, 15.2.2018, p. 76.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/101 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/101

---

P9_TA(2020)0267

Reinforcing the Youth Guarantee

European Parliament resolution of 8 October 2020 on the Youth Guarantee (2020/2764(RSP))

(2021/C 395/12)

The European Parliament,

| — | having regard to Article 3 of the Treaty on European Union (TEU) and to Articles 145, 147 and 149 of the Treaty on the Functioning of the European Union (TFEU), |
| --- | --- |

—

having regard to Article 3 of the Treaty on European Union (TEU) and to Articles 145, 147 and 149 of the Treaty on the Functioning of the European Union (TFEU),

| — | having regard to the European Pillar of Social Rights (EPSR), proclaimed by Parliament, the Council and the Commission in November 2017, and in particular principle 4 thereof, ‘Active support to employment’, |
| --- | --- |

—

having regard to the European Pillar of Social Rights (EPSR), proclaimed by Parliament, the Council and the Commission in November 2017, and in particular principle 4 thereof, ‘Active support to employment’,

| — | having regard to the European Council conclusions of 17-21 July 2020, |
| --- | --- |

—

having regard to the European Council conclusions of 17-21 July 2020,

| — | having regard to Regulation (EU) No 1304/2013 of the European Parliament and of the Council of 17 December 2013 on the European Social Fund and repealing Council Regulation (EC) No 1081/2006 (1), |
| --- | --- |

—

having regard to Regulation (EU) No 1304/2013 of the European Parliament and of the Council of 17 December 2013 on the European Social Fund and repealing Council Regulation (EC) No 1081/2006 (1),

| — | having regard to Regulation (EU) 2015/779 of the European Parliament and of the Council of 20 May 2015 amending Regulation (EU) No 1304/2013, as regards an additional initial prefinancing amount paid to operational programmes supported by the Youth Employment Initiative (2), |
| --- | --- |

—

having regard to Regulation (EU) 2015/779 of the European Parliament and of the Council of 20 May 2015 amending Regulation (EU) No 1304/2013, as regards an additional initial prefinancing amount paid to operational programmes supported by the Youth Employment Initiative (2),

| — | having regard to Council Decision (EU) 2019/1181 of 8 July 2019 on guidelines for the employment policies of the Member States (3), |
| --- | --- |

—

having regard to Council Decision (EU) 2019/1181 of 8 July 2019 on guidelines for the employment policies of the Member States (3),

| — | having regard to Council Recommendation of 22 April 2013 on establishing a Youth Guarantee (4), |
| --- | --- |

—

having regard to Council Recommendation of 22 April 2013 on establishing a Youth Guarantee (4),

| — | having regard to European Court of Auditors (ECA) Special Reports No 3/2015 entitled ‘EU Youth Guarantee: first steps taken but implementation risks ahead’, No 17/2015 entitled ‘Commission’s support of youth action teams: redirection of ESF funding achieved, but insufficient focus on results’ and No 5/2017 entitled ‘Youth unemployment — have EU policies made a difference? An assessment of the Youth Guarantee and the Youth Employment Initiative’, |
| --- | --- |

—

having regard to European Court of Auditors (ECA) Special Reports No 3/2015 entitled ‘EU Youth Guarantee: first steps taken but implementation risks ahead’, No 17/2015 entitled ‘Commission’s support of youth action teams: redirection of ESF funding achieved, but insufficient focus on results’ and No 5/2017 entitled ‘Youth unemployment — have EU policies made a difference? An assessment of the Youth Guarantee and the Youth Employment Initiative’,

| — | having regard to International Labour Office (ILO) working paper No 4/2015 entitled ‘The Youth Guarantee programme in Europe: Features, implementation and challenges’ and to the 2015 Eurofound report entitled ‘Social inclusion of young people’, |
| --- | --- |

—

having regard to International Labour Office (ILO) working paper No 4/2015 entitled ‘The Youth Guarantee programme in Europe: Features, implementation and challenges’ and to the 2015 Eurofound report entitled ‘Social inclusion of young people’,

| — | having regard to the Commission communication of 1 July 2020 entitled ‘Youth employment support: a bridge to jobs for the next generation’ (COM(2020)0276), |
| --- | --- |

—

having regard to the Commission communication of 1 July 2020 entitled ‘Youth employment support: a bridge to jobs for the next generation’ (COM(2020)0276),

| — | having regard to the Commission proposal for a Council recommendation on ‘A bridge to jobs — Reinforcing the Youth Guarantee and replacing the Council Recommendation of 22 April 2013 on establishing a Youth Guarantee’ (COM(2020)0277) and to the accompanying Commission staff working document (SWD(2020)0124), |
| --- | --- |

—

having regard to the Commission proposal for a Council recommendation on ‘A bridge to jobs — Reinforcing the Youth Guarantee and replacing the Council Recommendation of 22 April 2013 on establishing a Youth Guarantee’ (COM(2020)0277) and to the accompanying Commission staff working document (SWD(2020)0124),

| — | having regard to the Commission communication of 22 May 2018 entitled ‘Engaging, connecting and empowering young people: a new EU Youth Strategy’(COM(2018)0269) and to the Council resolution of 15 November 2018 on the European Union Youth Strategy 2019-2027 (5), |
| --- | --- |

—

having regard to the Commission communication of 22 May 2018 entitled ‘Engaging, connecting and empowering young people: a new EU Youth Strategy’(COM(2018)0269) and to the Council resolution of 15 November 2018 on the European Union Youth Strategy 2019-2027 (5),

| — | having regard to the Commission communication of 4 October 2016 entitled ‘The Youth Guarantee and Youth Employment Initiative three years on’ (COM(2016)0646) and to the accompanying Commission staff working document (SWD(2016)0323), |
| --- | --- |

—

having regard to the Commission communication of 4 October 2016 entitled ‘The Youth Guarantee and Youth Employment Initiative three years on’ (COM(2016)0646) and to the accompanying Commission staff working document (SWD(2016)0323),

| — | having regard to its resolution of 23 July 2020 on the conclusions of the extraordinary European Council meeting of 17-21 July 2020 (6), |
| --- | --- |

—

having regard to its resolution of 23 July 2020 on the conclusions of the extraordinary European Council meeting of 17-21 July 2020 (6),

| — | having regard to its resolution of 18 January 2018 on the implementation of the Youth Employment Initiative in the Member States (7), |
| --- | --- |

—

having regard to its resolution of 18 January 2018 on the implementation of the Youth Employment Initiative in the Member States (7),

| — | having regard to its resolution of 24 October 2017 on control of spending and monitoring of EU Youth Guarantee schemes’ cost-effectiveness (8), |
| --- | --- |

—

having regard to its resolution of 24 October 2017 on control of spending and monitoring of EU Youth Guarantee schemes’ cost-effectiveness (8),

| — | having regard to its resolution of 16 January 2013 on a Youth Guarantee (9), |
| --- | --- |

—

having regard to its resolution of 16 January 2013 on a Youth Guarantee (9),

| — | having regard to the questions to the Council and the Commission on reinforcing the Youth Guarantee (O-000058/2020 — B9-0018/2020 and O-000059/2020 — B9-0019/2020), |
| --- | --- |

—

having regard to the questions to the Council and the Commission on reinforcing the Youth Guarantee (O-000058/2020 — B9-0018/2020 and O-000059/2020 — B9-0019/2020),

| — | having regard to Rules 136(5) and 132(2) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 136(5) and 132(2) of its Rules of Procedure,

| — | having regard to the motion for a resolution of the Committee on Employment and Social Affairs, |
| --- | --- |

—

having regard to the motion for a resolution of the Committee on Employment and Social Affairs,

| A. | whereas, since its establishment in 2013, the Youth Guarantee has created opportunities and has helped over 24 million young people to find employment or to participate in a continuing education, apprenticeship or traineeship programme; whereas, before the COVID-19 crisis, the youth unemployment rate (15-24) stood at 14,9 % on average compared with a peak of 24,4 % in 2013; whereas this rate is still more than twice as high as the overall unemployment rate (6,5 %); whereas the prevalence of non-standard work is very high among young people, with 43,8 % of young people in temporary work across the EU; whereas the average youth unemployment rate hides huge disparities between Member States, with the unemployment rate for the under-25s standing at 40,8 % in Spain (June 2020) and 33,6 % in Greece (April 2020); whereas too many young people are in precarious work, and too many have to leave their region or country to find a decent job; |
| --- | --- |

A.

whereas, since its establishment in 2013, the Youth Guarantee has created opportunities and has helped over 24 million young people to find employment or to participate in a continuing education, apprenticeship or traineeship programme; whereas, before the COVID-19 crisis, the youth unemployment rate (15-24) stood at 14,9 % on average compared with a peak of 24,4 % in 2013; whereas this rate is still more than twice as high as the overall unemployment rate (6,5 %); whereas the prevalence of non-standard work is very high among young people, with 43,8 % of young people in temporary work across the EU; whereas the average youth unemployment rate hides huge disparities between Member States, with the unemployment rate for the under-25s standing at 40,8 % in Spain (June 2020) and 33,6 % in Greece (April 2020); whereas too many young people are in precarious work, and too many have to leave their region or country to find a decent job;

| B. | whereas the Youth Guarantee is recognised to have provided an impetus for structural reforms in public employment services and education systems in the Member States; whereas, however, it experienced a rather slow and patchy implementation by the Member States in its early stages, and several flaws were highlighted by stakeholders and young people in its design and its functioning in practice; whereas in its Special Report No 5/2017, the European Court of Auditors criticised the limited progress of the Youth Guarantee, concluding that the contribution of the Youth Employment Initiative (YEI) to the achievement of the objectives of the Youth Guarantee in the five Member States visited was very limited at the time of the audit, and that more than three years after the adoption of the Council recommendation, the situation fell short of the initial expectations raised at the launch of the Youth Guarantee, which aimed to provide a good quality offer to all NEETs — young people not in employment, education or training — within four months; whereas the Commission and the Member States have progressively introduced adjustments and improved guidance for the programme, making the Youth Guarantee and the YEI essential tools for combating youth unemployment in the EU; |
| --- | --- |

B.

whereas the Youth Guarantee is recognised to have provided an impetus for structural reforms in public employment services and education systems in the Member States; whereas, however, it experienced a rather slow and patchy implementation by the Member States in its early stages, and several flaws were highlighted by stakeholders and young people in its design and its functioning in practice; whereas in its Special Report No 5/2017, the European Court of Auditors criticised the limited progress of the Youth Guarantee, concluding that the contribution of the Youth Employment Initiative (YEI) to the achievement of the objectives of the Youth Guarantee in the five Member States visited was very limited at the time of the audit, and that more than three years after the adoption of the Council recommendation, the situation fell short of the initial expectations raised at the launch of the Youth Guarantee, which aimed to provide a good quality offer to all NEETs — young people not in employment, education or training — within four months; whereas the Commission and the Member States have progressively introduced adjustments and improved guidance for the programme, making the Youth Guarantee and the YEI essential tools for combating youth unemployment in the EU;

| C. | whereas combating youth unemployment is a political priority shared by Parliament, the Commission and the Member States, and one that contributes to achieving the Union’s objective of sustainable growth and high-quality jobs, while also being in line with the EPSR; |
| --- | --- |

C.

whereas combating youth unemployment is a political priority shared by Parliament, the Commission and the Member States, and one that contributes to achieving the Union’s objective of sustainable growth and high-quality jobs, while also being in line with the EPSR;

| D. | whereas in sharing her political priorities, Commission President Ursula von der Leyen declared that she would turn the Youth Guarantee into a permanent instrument to fight youth unemployment and that it should have an increased budget and regular reporting to ensure that it delivers what it promises in every Member State; |
| --- | --- |

D.

whereas in sharing her political priorities, Commission President Ursula von der Leyen declared that she would turn the Youth Guarantee into a permanent instrument to fight youth unemployment and that it should have an increased budget and regular reporting to ensure that it delivers what it promises in every Member State;

| E. | whereas the COVID-19 pandemic has triggered an unprecedented economic and social crisis as a result of which unemployment rates in the EU are rising and millions of people risk losing their jobs; whereas as of June 2020 the youth unemployment rate stood at 16,8 % across the EU, a number that is still expected to continue rising sharply, considering that young people risk being hit the hardest, as was the case during the 2008 crisis; whereas high youth unemployment rates are detrimental to the individuals concerned, often leading to so-called ‘scarring effects’; whereas these detrimental effects will be experienced in particular among the increasing number of long-term unemployed young people and by society at large, and therefore require decisive and targeted policy efforts; whereas investing in the human capital of young Europeans will contribute to strengthening European economies and societies and to making them more inclusive and resilient; whereas a skilled, creative and innovative workforce is a prerequisite for a competitive Europe; |
| --- | --- |

E.

whereas the COVID-19 pandemic has triggered an unprecedented economic and social crisis as a result of which unemployment rates in the EU are rising and millions of people risk losing their jobs; whereas as of June 2020 the youth unemployment rate stood at 16,8 % across the EU, a number that is still expected to continue rising sharply, considering that young people risk being hit the hardest, as was the case during the 2008 crisis; whereas high youth unemployment rates are detrimental to the individuals concerned, often leading to so-called ‘scarring effects’; whereas these detrimental effects will be experienced in particular among the increasing number of long-term unemployed young people and by society at large, and therefore require decisive and targeted policy efforts; whereas investing in the human capital of young Europeans will contribute to strengthening European economies and societies and to making them more inclusive and resilient; whereas a skilled, creative and innovative workforce is a prerequisite for a competitive Europe;

| F. | whereas young people are disproportionately affected by an economic crisis (10); whereas countering the economic crisis created by the COVID-19 pandemic will be essential to avoid high youth unemployment rates; whereas one in six young people who were employed before the outbreak of the COVID-19 pandemic have lost their job or have been made redundant; whereas working hours among young people in employment have fallen by nearly a quarter and two in five young people reported a reduction in their income, with those in lower-income countries most affected in terms of both working hours and income; |
| --- | --- |

F.

whereas young people are disproportionately affected by an economic crisis (10); whereas countering the economic crisis created by the COVID-19 pandemic will be essential to avoid high youth unemployment rates; whereas one in six young people who were employed before the outbreak of the COVID-19 pandemic have lost their job or have been made redundant; whereas working hours among young people in employment have fallen by nearly a quarter and two in five young people reported a reduction in their income, with those in lower-income countries most affected in terms of both working hours and income;

| G. | whereas the lockdown measures have caused a sudden disruption to young people’s formal and informal education, traineeships, internships and apprenticeships, as well as jobs, affecting their income, earning potential and well-being, including their health, and in particular their mental health; whereas youth unemployment measures should address the multi-dimensional nature of the problem; |
| --- | --- |

G.

whereas the lockdown measures have caused a sudden disruption to young people’s formal and informal education, traineeships, internships and apprenticeships, as well as jobs, affecting their income, earning potential and well-being, including their health, and in particular their mental health; whereas youth unemployment measures should address the multi-dimensional nature of the problem;

| H. | whereas young people with disabilities have been hit particularly hard by the effects of the pandemic and are now at an even higher risk of socio-economic exclusion; whereas it is necessary to put in place targeted measures to support their integration into the labour market and to ensure their access to quality services while ensuring that they face no discrimination or barriers of any kind, including financial ones; |
| --- | --- |

H.

whereas young people with disabilities have been hit particularly hard by the effects of the pandemic and are now at an even higher risk of socio-economic exclusion; whereas it is necessary to put in place targeted measures to support their integration into the labour market and to ensure their access to quality services while ensuring that they face no discrimination or barriers of any kind, including financial ones;

| I. | whereas young people are more likely to be laid off due to the fact that they more often work in the informal economy, in non-standard forms of employment, with no or little social protection and do not have professional experience; |
| --- | --- |

I.

whereas young people are more likely to be laid off due to the fact that they more often work in the informal economy, in non-standard forms of employment, with no or little social protection and do not have professional experience;

| J. | whereas rates of non-standard work, such as platform or ‘gig’ work, are very high among young people, and non-standard work provides less job security and limited or no access to social protection, making young people more likely to be made unemployed during a crisis such as COVID-19 while restricting their access to social protection; |
| --- | --- |

J.

whereas rates of non-standard work, such as platform or ‘gig’ work, are very high among young people, and non-standard work provides less job security and limited or no access to social protection, making young people more likely to be made unemployed during a crisis such as COVID-19 while restricting their access to social protection;

| K. | whereas it is essential to underline the difference between unemployment and inactivity levels to better grasp the incidence of the crisis among young people, since an increase in the inactive population may also result in a statistical reduction in unemployment; whereas several Member States have recorded a higher increase in the inactive population than in unemployment, both due to the fact that during the crisis people have stopped looking for work and due to the introduction of public labour market measures such as short-time work schemes and the blocking of layoffs; |
| --- | --- |

K.

whereas it is essential to underline the difference between unemployment and inactivity levels to better grasp the incidence of the crisis among young people, since an increase in the inactive population may also result in a statistical reduction in unemployment; whereas several Member States have recorded a higher increase in the inactive population than in unemployment, both due to the fact that during the crisis people have stopped looking for work and due to the introduction of public labour market measures such as short-time work schemes and the blocking of layoffs;

| L. | whereas low-income and precarious contracts, bogus self-employment, lack of basic social protection and age-discriminatory practices are the employment conditions experienced by millions of young people; whereas the rate of inactive young people has increased in most Member States and whereas among NEETs the gender gap has also increased during this period; whereas many young people are shifting between employment and unemployment or inactivity or are trapped in precarious non-standard forms of employment; whereas young people are at a higher risk than others of losing their jobs to automation; |
| --- | --- |

L.

whereas low-income and precarious contracts, bogus self-employment, lack of basic social protection and age-discriminatory practices are the employment conditions experienced by millions of young people; whereas the rate of inactive young people has increased in most Member States and whereas among NEETs the gender gap has also increased during this period; whereas many young people are shifting between employment and unemployment or inactivity or are trapped in precarious non-standard forms of employment; whereas young people are at a higher risk than others of losing their jobs to automation;

| M. | whereas women, and young women in particular, suffer double discrimination, for being young and for being women, due to a worrying imbalance on the labour market; |
| --- | --- |

M.

whereas women, and young women in particular, suffer double discrimination, for being young and for being women, due to a worrying imbalance on the labour market;

| N. | whereas the pandemic could widen inequalities in society, including the digital divide, which remains a serious problem in the EU as a whole and in Member States; whereas the lack of proper access to broadband and adequate IT equipment for young people in general, and also in the context of remote schooling and telework, could lead to further inequalities, exclusion and discrimination; |
| --- | --- |

N.

whereas the pandemic could widen inequalities in society, including the digital divide, which remains a serious problem in the EU as a whole and in Member States; whereas the lack of proper access to broadband and adequate IT equipment for young people in general, and also in the context of remote schooling and telework, could lead to further inequalities, exclusion and discrimination;

| O. | whereas the previous crisis showed that if young people are not provided with quality traineeships and jobs — based on written agreements and decent working conditions, including a living wage, career counselling and guidance and further training — there will yet again be a high risk that they will be forced to accept precarious jobs, leave their country to find work, or enrol in education or training, even though they are looking for a real job; |
| --- | --- |

O.

whereas the previous crisis showed that if young people are not provided with quality traineeships and jobs — based on written agreements and decent working conditions, including a living wage, career counselling and guidance and further training — there will yet again be a high risk that they will be forced to accept precarious jobs, leave their country to find work, or enrol in education or training, even though they are looking for a real job;

| P. | whereas the low quality of Youth Guarantee offers is one of its most significant flaws; whereas traineeships provided under the Youth Guarantee must not only be paid but also be limited in length and number so that young people are not trapped in never-ending repeated traineeships and exploited as cheap or even free labour, and without social protection and pension rights; whereas studies show that the current generation of young people find their first real job in their early thirties; |
| --- | --- |

P.

whereas the low quality of Youth Guarantee offers is one of its most significant flaws; whereas traineeships provided under the Youth Guarantee must not only be paid but also be limited in length and number so that young people are not trapped in never-ending repeated traineeships and exploited as cheap or even free labour, and without social protection and pension rights; whereas studies show that the current generation of young people find their first real job in their early thirties;

| Q. | whereas the current generation of young people are highly skilled; whereas skilling, reskilling and upskilling are not the only answer to the lack of jobs for young people; whereas the creation of quality and sustainable jobs, on the other hand, is key to their stability; |
| --- | --- |

Q.

whereas the current generation of young people are highly skilled; whereas skilling, reskilling and upskilling are not the only answer to the lack of jobs for young people; whereas the creation of quality and sustainable jobs, on the other hand, is key to their stability;

| R. | whereas employment programmes can have an effect on unemployment but cannot be a substitute for wider efforts to encourage more flexible labour markets; whereas labour market obstacles have particularly harmful effects on young people, driving up unemployment rates and leaving new generations vulnerable; whereas research (11) has demonstrated the need for both active labour market policies and social protection schemes based on the at-risk-of-poverty threshold to avoid a situation where measures simply reshuffle employment opportunities as a zero-sum game between subgroups of vulnerable people; |
| --- | --- |

R.

whereas employment programmes can have an effect on unemployment but cannot be a substitute for wider efforts to encourage more flexible labour markets; whereas labour market obstacles have particularly harmful effects on young people, driving up unemployment rates and leaving new generations vulnerable; whereas research (11) has demonstrated the need for both active labour market policies and social protection schemes based on the at-risk-of-poverty threshold to avoid a situation where measures simply reshuffle employment opportunities as a zero-sum game between subgroups of vulnerable people;

| S. | whereas the 2019 guidelines for the employment policies of the Member States call on Member States to continue addressing youth unemployment and the issue of NEETs by preventing young people from leaving school early and by making structural improvements to the school-to-work transition, including through the full implementation of the Youth Guarantee; |
| --- | --- |

S.

whereas the 2019 guidelines for the employment policies of the Member States call on Member States to continue addressing youth unemployment and the issue of NEETs by preventing young people from leaving school early and by making structural improvements to the school-to-work transition, including through the full implementation of the Youth Guarantee;

| T. | whereas the proposal for a Council recommendation on reinforcing the Youth Guarantee builds on the experience and lessons learned from the implementation of the Youth Guarantee since 2013 and aims to reach out to an increased number of young people, the age bracket being widened to include all people under 30, supporting them in developing skills and gaining work experience within a modernised vocational education and training system; |
| --- | --- |

T.

whereas the proposal for a Council recommendation on reinforcing the Youth Guarantee builds on the experience and lessons learned from the implementation of the Youth Guarantee since 2013 and aims to reach out to an increased number of young people, the age bracket being widened to include all people under 30, supporting them in developing skills and gaining work experience within a modernised vocational education and training system;

| U. | whereas for the next programming period, 2021-2027, the Youth Guarantee will be financed through the European Social Fund Plus (ESF+), now encompassing the Youth Employment Initiative, which is the main funding programme of the Youth Guarantee; whereas Next Generation EU, through the Recovery and Resilience Facility and REACT-EU, will provide additional support for youth employment measures; whereas investments in education and training, which are aligned with the twin digital and green transitions, will be financed by the European Regional Development Fund; whereas Member States, upon request and following the fulfilment of predefined criteria, can obtain resources from the Technical Support Instrument to finance the preparation and implementation stages of structural reforms, among other measures, in the areas of education and training and labour market policies; |
| --- | --- |

U.

whereas for the next programming period, 2021-2027, the Youth Guarantee will be financed through the European Social Fund Plus (ESF+), now encompassing the Youth Employment Initiative, which is the main funding programme of the Youth Guarantee; whereas Next Generation EU, through the Recovery and Resilience Facility and REACT-EU, will provide additional support for youth employment measures; whereas investments in education and training, which are aligned with the twin digital and green transitions, will be financed by the European Regional Development Fund; whereas Member States, upon request and following the fulfilment of predefined criteria, can obtain resources from the Technical Support Instrument to finance the preparation and implementation stages of structural reforms, among other measures, in the areas of education and training and labour market policies;

| 1. | Welcomes the proposal for Council recommendation on reinforcing the Youth Guarantee and the Commission’s intention to introduce structural improvements based on the lessons learned from the 2008 financial crisis and the implementation of this instrument; recalls that a Council recommendation has no binding effect on Member States; points out that not all Member States have followed the Council recommendation, which has the effect of leaving young people behind; considers that it is time to make the Youth Guarantee binding instead of voluntary; calls on the Commission once more to propose a Youth Guarantee instrument that is binding for all Member States; |
| --- | --- |

1.

| 2. | Stresses that a multi-dimensional approach to fight youth unemployment, comprising active and passive labour market policies and effective access to social inclusion measures and to social, health and housing services for young people, is needed to ensure the quality and sustainability of these actions; |
| --- | --- |

2.

| 3. | Stresses that a reinforced Youth Guarantee should overcome the shortcomings of the previous approach, which was based on employability, and must be conceived as a path aimed at ensuring, within a reasonable time, quality and permanent jobs for all young people involved; reiterates that the Youth Guarantee should not institutionalise precarious work among young people, in particular through atypical status leading to extremely low wages, lack of social protection, lack of employment security, false self-employment and real salaried employment being replaced by precarious jobs; |
| --- | --- |

3.

| 4. | Welcomes the fact that the reinforced Youth Guarantee will cover a wider age bracket to include young people aged 15-29 and that a more individualised and targeted approach will be applied to both temporary NEETs and longer-term NEETs; also welcomes the efforts to make the Youth Guarantee more inclusive and to avoid any form of discrimination, including disadvantaged and vulnerable groups, racial and ethnic minorities, migrants and refugees, young people with disabilities and those living in remote, rural or disadvantaged urban areas or in overseas territories and island regions; expresses its concern about the imbalance in the labour market, in which women in general, and young women in particular, suffer double discrimination, for being young and for being women; underlines the need for the Commission to take into account the needs of young women when addressing the gender gap; |
| --- | --- |

4.

| 5. | Welcomes the inclusion of a gender dimension in the Youth Guarantee; notes, however, that the gender gap among NEETs has increased over recent years and that having a family remains an obstacle to the employment of young women; calls on the Member States to implement binding measures to avoid hiring discrimination on account of the candidate’s gender or family situation; |
| --- | --- |

5.

| 6. | Stresses that NEETs comprise various subgroups, such as young people with disabilities, homeless young people, young Roma, and young migrants and refugees, who have diverse needs that should be met with specifically tailored services, such as, in the case of persons with a disability, guaranteed reasonable accommodation and work income that is compatible with continued disability payments; in this context, highlights the importance of having accurate data and appropriate ways to identify these subgroups, and of adopting a differentiated approach vis-à-vis longer-term NEETs, who often come from a disadvantaged socio-economic background and face intersectional discrimination in education and employment, among other areas of life, and for whom effective outreach programmes should be launched; stresses that to reach these target groups, the Youth Guarantee should be embedded in a coherent set of social and welfare policies, such as access to social security, including unemployment benefits and minimum income, childcare, health services, adequate, affordable and accessible housing and psychological support, to ensure that all young people have access to the scheme; insists that any discrimination experienced by young people on any ground must be actively combated in Youth Guarantee schemes; |
| --- | --- |

6.

| 7. | Welcomes the recommendation to Member States to strengthen early warning systems with the aim of identifying young people at risk of becoming NEETs; is convinced that preventive actions, such as skills assessments and career and vocational guidance, which focus on helping early school leavers into employment or education before they become unemployed, if appropriately conducted, and the provision of inclusive and non-discriminatory mainstream education could lead to a reduction in the number of NEETs in the longer term; |
| --- | --- |

7.

| 8. | Supports the idea of assessing the skill set of all NEETs who register for the Youth Guarantee, in particular their digital skills, and the proposal to enhance digital, language and soft social skills with preparatory training and to facilitate upskilling and reskilling towards green skills, entrepreneurial skills and financial and career management skills through individualised career guidance and orientation; in this context, highlights the importance of informal and non-formal skills; also calls for the ownership of digital equipment and the state of connectivity of all NEETs to be assessed at the same time as when their digital skills are assessed; considers furthermore that young people who register for the Youth Guarantee schemes should be supported in developing social and transversal skills, allowing them to better manage transitions and to face a fast-changing labour market; believes that tailored training of this kind should aim at addressing skills mismatches in the labour market; believes that apprenticeships can play an important role in this regard as they prepare young people for jobs that are in high demand, and can thus contribute to their sustainable integration into the labour market; |
| --- | --- |

8.

| 9. | Urges Member States to ensure that young people who register for the Youth Guarantee schemes are proposed good-quality, varied and tailored job, training, apprenticeship or internship offers, including fair remuneration, and that employment offers are aligned with the relevant principles of the EPSR, ensuring the right to fair and equal treatment as regards working conditions, including ensuring a work environment adapted to the needs of persons with disabilities, access to social protection and training, and probation periods of a reasonable duration, as well as prohibiting abuse of atypical contracts; insists that under no circumstances should offers under the reinforced Youth Guarantee contribute to social dumping, wage dumping, in-work poverty or precariousness for young people; reiterates that internships could play a part in vocational training; recalls that internship contracts should take the form of written, legally binding agreements, specifying the tasks of the intern and including decent remuneration; considers that the objective of the Youth Guarantee must lead to employment and that internships should never lead to job replacement; |
| --- | --- |

9.

| 10. | Calls for a quality guarantee ensuring that people who finished their training and/or education during the COVID-19 crisis can (re-)do courses included in their traineeship and/or apprenticeship, even after having obtained their degree and/or finished their traineeship and/or apprenticeship, which might have had to be cancelled or shortened or might have fallen short in some other way while measures against COVID-19 were in place, in order to fill any gaps in their training; |
| --- | --- |

10.

| 11. | Insists on the need to outline in the Council recommendation clear and binding quality criteria and standards for offers, and calls on the Commission to develop a quality framework governing the Youth Guarantee; is convinced that such a framework would strengthen the programme and would make it a more effective tool for a successful transition to the labour market; calls on the Commission to review existing European instruments such as the Quality Framework for Traineeships and the European Framework for Quality and Effective Apprenticeships and to insert quality criteria for the offers made to young people, including the principle of fair remuneration for trainees and interns, access to social protection, sustainable employment and social rights; stresses that these criteria would ensure that the programme effectively helps young people to make the transition into stable, quality employment and helps to ensure gender-balanced opportunities for young people across sectors, opportunities that offer long-term security, social protection and equal and decent working conditions, and that do not contribute to the creation of precarious employment; calls on the Member States and the Commission to develop programmes supporting entrepreneurship, in particular in territories where there is a weak industrial base; |
| --- | --- |

11.

| 12. | Encourages the Commission and the Member States to disseminate good practices as regards social investment so as to foster a more inclusive society and rebalance economic and social progress; stresses the importance of both active labour market policies and social protection schemes in order to avoid a zero-sum game of reshuffling employment between various subgroups of vulnerable people and in particular NEETs; urges the Commission to conduct a study to examine the link between young people without social protection and precarious work; |
| --- | --- |

12.

| 13. | Strongly believes in the objective of improving the socio-economic conditions of young people with the proper implementation of the reinforced Youth Guarantee; reaffirms its position that remuneration should be commensurate with the work provided, the skills and experience of the individual in question and the need for interns, trainees and apprentices on the labour market outside educational curricula to be able to make ends meet; calls on the Commission and the Member States, in collaboration with Parliament, and while respecting the principle of subsidiarity, to propose possible ways forward for the introduction of a common legal instrument ensuring and enforcing fair remuneration for internships, traineeships and apprenticeships in the EU’s labour market; condemns the practice of unpaid internships, traineeships and apprenticeships, which constitutes a form of exploitation of young people’s work and a violation of their rights; |
| --- | --- |

13.

| 14. | Insists that the financing for the Youth Guarantee should be strengthened for the programming period 2021-2027, by means of an increased ESF+ and adequate thematic concentrations; highlights that the amended Commission proposal on ESF+ of 28 May 2020 includes a requirement that Member States with NEET rates above the EU average in 2019 must allocate at least 15 % of their ESF+ resources under shared management to targeted actions and structural reforms to support youth employment, vocational education and training, in particular in the context of implementing Youth Guarantee schemes; deplores the fact that that in its conclusions of 21 July 2020 the European Council significantly reduced this amount to 10 %, which is wholly contradictory to the Union’s ambition to invest in young people; |
| --- | --- |

14.

| 15. | Recalls its position at first reading adopted on 4 April 2019, which includes an additional requirement that all Member States, not only those with a NEET rate above the Union average, should invest at least 3 % of their ESF+ resources under shared management in tackling youth unemployment, in particular in the context of implementing Youth Guarantee schemes, during the programming period 2021-2027; |
| --- | --- |

15.

| 16. | Invites the Member States and the Commission to reflect on the fact that the NEET rate is the sole factor in decisions on the allocation of funds; considers that while this rate shows the number of people who are not in education, employment or training, it completely excludes large numbers of young people who are in involuntary part-time employment, have left the country to find a decent job, are doing undeclared work, or are working but still living in poverty; |
| --- | --- |

16.

| 17. | Urges Member States to undertake a strong commitment to fully implement the Youth Guarantee; highlights that Union financing complements national budgets and does not replace them; |
| --- | --- |

17.

| 18. | Recalls that a reinforced Youth Guarantee can play an important role in supporting Member States in investing, in the context of the European Green Deal, in the creation of employment opportunities in a climate-neutral, energy-efficient and circular economy and in having a skilled workforce for these jobs, ensuring that no young person, especially those belonging to disadvantaged groups, is left behind in the transition to a climate-neutral economy; |
| --- | --- |

18.

| 19. | Reiterates the need to increase the effective use of funding; expects that the streamlined programming and implementation rules under ESF+ would lead to a reduction in administrative costs for beneficiaries, including simplified reporting arrangements; expects Member States to diligently spend funds on youth programmes, which will facilitate youth employment; |
| --- | --- |

19.

| 20. | Stresses the importance of maximising potential synergies between the Youth Guarantee and other relevant EU funds and instruments, including the Recovery and Resilience Facility, the European Child Guarantee, Erasmus+, InvestEU, Horizon Europe and the Just Transition Fund, also in the context of REACT-EU and national recovery plans; in this context, calls on the Member States to prioritise support for the employment of young people in these plans and in their recovery and resilience plans, as well as in the context of REACT-EU; calls on the Member States to make use of SURE resources to support measures for young trainees and interns, such as income support and short-time work schemes; |
| --- | --- |

20.

| 21. | Insists that the Commission enhance its monitoring of the implementation of the Youth Guarantee and its reporting on the results, including monitoring of the beneficiaries under Youth Guarantee schemes and of the nature of the offers so as to ensure their compliance with a new framework of quality standards under the reinforced Youth Guarantee and the long-term insertion into employment of beneficiaries of Youth Guarantee schemes; |
| --- | --- |

21.

| 22. | Underlines that improved data collection is vital for the sustainable labour market integration of the beneficiaries and the efficient use of the Youth Guarantee; encourages the European Court of Auditors to produce follow-up reports on the implementation of Youth Guarantee schemes; in this context, considers it important that the Commission should conduct a study that looks into the link between young people in jobs without social protection and precarious work; |
| --- | --- |

22.

| 23. | Emphasises that the effective implementation of Youth Guarantee schemes and improved access to stable and sustainable jobs require stronger partnerships and efficient coordination between Youth Guarantee providers and relevant stakeholders, such as regional and local authorities, social partners (employers and trade unions), education and training institutions, youth workers, providers of solidarity and civic activities, chambers of commerce and chambers of crafts, youth organisations and other civil society organisations, including NGOs working with disadvantaged persons, especially when exchanging best practices between Member States; calls for the involvement of these stakeholders in the design, implementation and evaluation of Youth Guarantee schemes in order to ensure their effectiveness; urges the Member States to improve the participation of these partners, in particular youth organisations, at all stages of the management of Youth Guarantee schemes and associated EU funding instruments at European, national and local level; is of the opinion that partnerships should clearly outline structures and mechanisms for meaningful participation in decision-making, including the transparent sharing of information; |
| --- | --- |

23.

| 24. | Is convinced that well-targeted awareness raising campaigns in accessible formats — including for persons with disabilities — and youth-friendly communication channels could play a decisive role in reaching out to young people and youth organisations and raising the profile of the initiative, and that it could be particularly beneficial to target early school leavers; highlights that as much funding as possible should go directly to young people; stresses that effective outreach policies need adequate funding and staff capacity, in particular in public employment services (PES), which play a crucial role in effectively reaching out to NEETs but are still suffering the consequences of austerity measures introduced in the aftermath of the last financial crisis; in this context, urges the Member States to invest in their PES in order to provide sufficient human resources and financial support for staff training and equipment to this end; |
| --- | --- |

24.

| 25. | Calls on the Commission to explore the idea of an EU web portal specifically dedicated to traineeships and apprenticeships in the EU, bringing together all existing EU initiatives in a visible, accessible and user-friendly portal; considers that this portal should be adequately publicised through appropriate channels to target its audiences, with a view to putting it in the spotlight for young Europeans, educational institutes and companies throughout the EU; is of the opinion that the portal should steer young talent to where it is most required, point young people to specific needs in the labour market, promote access to linked learning opportunities, improve overall future employability within the EU and contribute to combating youth unemployment and bridging skills gaps; |
| --- | --- |

25.

| 26. | Instructs its President to forward this resolution to the Council and the Commission. |
| --- | --- |

26.

---

(1)  OJ L 347, 20.12.2013, p. 470.

(2)  OJ L 126, 21.5.2015, p. 1.

(3)  OJ L 185, 11.7.2019, p. 44.

(4)  OJ C 120, 26.4.2013, p. 1.

(5)  OJ C 456, 18.12.2018, p. 1.

(6)  Texts adopted, P9_TA(2020)0206.

(7)  OJ C 458, 19.12.2018, p. 57.

(8)  OJ C 346, 27.9.2018, p. 105.

(9)  OJ C 440, 30.12.2015, p. 67.

(10)  ‘The impact of the economic crisis on euro area labour markets’ in the European Central Bank Monthly Bulletin of October 2014, pp. 49-68.

(11)  Re-inVEST Europe (2019). Policy Brief ‘Towards more inclusive social protection and active labour market policies in the EU: a social investment perspective’.

---

II Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Parliament

Wednesday 7 October 2020

| 29.9.2021 | EN | Official Journal of the European Union | C 395/109 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/109

---

P9_TA(2020)0249

Approval of the allocation of new responsibilities of Executive Vice-President of the Commission Valdis Dombrovskis

European Parliament decision of 7 October 2020 on the allocation of new responsibilities to Executive Vice-President of the Commission Valdis Dombrovskis (2020/2203(INS))

(2021/C 395/13)

The European Parliament,

| — | having regard to Article 17(6) of the Treaty on European Union and Article 248 of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 17(6) of the Treaty on European Union and Article 248 of the Treaty on the Functioning of the European Union,

| — | having regard to Article 106a of the Treaty establishing the European Atomic Energy Community, |
| --- | --- |

—

having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,

| — | having regard to point 7 of the Framework Agreement on relations between the European Parliament and the European Commission (1), |
| --- | --- |

—

having regard to point 7 of the Framework Agreement on relations between the European Parliament and the European Commission (1),

| — | having regard to the letter of the President of the Commission of 14 September 2020, |
| --- | --- |

—

having regard to the letter of the President of the Commission of 14 September 2020,

| — | having regard to the hearing of Valdis Dombrovskis on 2 October 2020, led by the Committee on International Trade, with the association of the Committee on Foreign Affairs, the Committee on Development, the Committee on Budgets and the Committee on Economic and Monetary Affairs, and to the evaluation letter drawn up following that hearing, |
| --- | --- |

—

having regard to the hearing of Valdis Dombrovskis on 2 October 2020, led by the Committee on International Trade, with the association of the Committee on Foreign Affairs, the Committee on Development, the Committee on Budgets and the Committee on Economic and Monetary Affairs, and to the evaluation letter drawn up following that hearing,

| — | having regard to the examination by the Conference of Committee Chairs at its meeting on 5 October 2020, and to the examination by the Conference of Presidents at its meeting on 6 October 2020, |
| --- | --- |

—

having regard to the examination by the Conference of Committee Chairs at its meeting on 5 October 2020, and to the examination by the Conference of Presidents at its meeting on 6 October 2020,

| — | having regard to Rule 125 of, and Annex VII to, its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 125 of, and Annex VII to, its Rules of Procedure,

| 1. | Approves the allocation of new responsibilities to Executive Vice-President of the Commission Valdis Dombrovskis for the remainder of the Commission's term of office until 31 October 2024; |
| --- | --- |

1.

| 2. | Instructs its President to forward this decision to the Council, the Commission and the governments of the Member States. |
| --- | --- |

2.

---

(1)  OJ L 304, 20.11.2010, p. 47.

---

III Preparatory acts

European Parliament

Monday 5 October 2020

| 29.9.2021 | EN | Official Journal of the European Union | C 395/110 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/110

---

P9_TA(2020)0242

Markets in financial instruments ***II

European Parliament legislative resolution of 5 October 2020 on the Council position at first reading with a view to the adoption of a directive of the European Parliament and of the Council amending Directive 2014/65/EU on markets in financial instruments (06799/1/2020 — C9-0291/2020 — 2018/0047(COD))

(Ordinary legislative procedure: second reading)

(2021/C 395/14)

The European Parliament,

| — | having regard to the Council position at first reading (06799/1/2020 — C9-0291/2020), |
| --- | --- |

—

having regard to the Council position at first reading (06799/1/2020 — C9-0291/2020),

| — | having regard to the opinion of the European Economic and Social Committee of 11 July 2018 (1), |
| --- | --- |

—

having regard to the opinion of the European Economic and Social Committee of 11 July 2018 (1),

| — | having regard to its position at first reading (2) on the Commission proposal to Parliament and the Council (COM(2018)0099), |
| --- | --- |

—

having regard to its position at first reading (2) on the Commission proposal to Parliament and the Council (COM(2018)0099),

| — | having regard to Article 294(7) of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 294(7) of the Treaty on the Functioning of the European Union,

| — | having regard to the provisional agreement approved by the committee responsible under Rule 74(4) of its Rules of Procedure, |
| --- | --- |

—

having regard to the provisional agreement approved by the committee responsible under Rule 74(4) of its Rules of Procedure,

| — | having regard to Rule 67 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 67 of its Rules of Procedure,

| — | having regard to the recommendation for second reading of the Committee on Economic and Monetary Affairs (A9-0169/2020), |
| --- | --- |

—

having regard to the recommendation for second reading of the Committee on Economic and Monetary Affairs (A9-0169/2020),

| 1. | Approves the Council position at first reading; |
| --- | --- |

1.

| 2. | Notes that the act is adopted in accordance with the Council position; |
| --- | --- |

2.

| 3. | Instructs its President to sign the act with the President of the Council, in accordance with Article 297(1) of the Treaty on the Functioning of the European Union; |
| --- | --- |

3.

| 4. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

4.

---

(1)  OJ C 367, 10.10.2018, p. 65.

(2)  Texts adopted of 27.3.2019, P8_TA(2019)0302.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/111 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/111

---

P9_TA(2020)0243

European Crowdfunding Service Providers (ECSP) for Business ***II

European Parliament legislative resolution of 5 October 2020 on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937 (06800/1/2020 — C9-0292/2020 — 2018/0048(COD))

(Ordinary legislative procedure: second reading)

(2021/C 395/15)

The European Parliament,

| — | having regard to the Council position at first reading (06800/1/2020 — C9-0292/2020), |
| --- | --- |

—

having regard to the Council position at first reading (06800/1/2020 — C9-0292/2020),

| — | having regard to the opinion of the European Economic and Social Committee of 11 July 2018 (1), |
| --- | --- |

—

having regard to the opinion of the European Economic and Social Committee of 11 July 2018 (1),

| — | having regard to its position at first reading (2) on the Commission proposal to Parliament and the Council (COM(2018)0113), |
| --- | --- |

—

having regard to its position at first reading (2) on the Commission proposal to Parliament and the Council (COM(2018)0113),

| — | having regard to Article 294(7) of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 294(7) of the Treaty on the Functioning of the European Union,

| — | having regard to the provisional agreement approved by the committee responsible under Rule 74(4) of its Rules of Procedure, |
| --- | --- |

—

having regard to the provisional agreement approved by the committee responsible under Rule 74(4) of its Rules of Procedure,

| — | having regard to Rule 67 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 67 of its Rules of Procedure,

| — | having regard to the recommendation for second reading of the Committee on Economic and Monetary Affairs (A9-0168/2020), |
| --- | --- |

—

having regard to the recommendation for second reading of the Committee on Economic and Monetary Affairs (A9-0168/2020),

| 1. | Approves the Council position at first reading; |
| --- | --- |

1.

| 2. | Notes that the act is adopted in accordance with the Council position; |
| --- | --- |

2.

| 3. | Instructs its President to sign the act with the President of the Council, in accordance with Article 297(1) of the Treaty on the Functioning of the European Union; |
| --- | --- |

3.

| 4. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

4.

---

(1)  OJ C 367, 10.10.2018, p. 65.

(2)  Texts adopted of 27.3.2019, P8_TA(2019)0301.

---

Tuesday 6 October 2020

| 29.9.2021 | EN | Official Journal of the European Union | C 395/112 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/112

---

P9_TA(2020)0244

Amending Regulation (EU) No 514/2014 of the European Parliament and the Council, as regards the decommitment procedure ***I

European Parliament legislative resolution of 6 October 2020 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 514/2014 of the European Parliament and the Council, as regards the decommitment procedure (COM(2020)0309 — C9-0202/2020 — 2020/0140(COD))

(Ordinary legislative procedure: first reading)

(2021/C 395/16)

The European Parliament,

| — | having regard to the Commission proposal to Parliament and the Council (COM(2020)0309), |
| --- | --- |

—

having regard to the Commission proposal to Parliament and the Council (COM(2020)0309),

| — | having regard to Article 294(2) and Article 78(2), Article 79(2) and (4), Article 82(1), Article 84 and Article 87(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0202/2020), |
| --- | --- |

—

having regard to Article 294(2) and Article 78(2), Article 79(2) and (4), Article 82(1), Article 84 and Article 87(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0202/2020),

| — | having regard to Article 294(3) of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

| — | having regard to the undertaking given by the Council representative by letter of 22 September 2020 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to the undertaking given by the Council representative by letter of 22 September 2020 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

| — | having regard to Rules 59 and 52(1) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 59 and 52(1) of its Rules of Procedure,

| — | having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs (A9-0171/2020), |
| --- | --- |

—

having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs (A9-0171/2020),

| 1. | Adopts its position at first reading hereinafter set out; |
| --- | --- |

1.

| 2. | Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal; |
| --- | --- |

2.

| 3. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

3.

---

P9_TC1-COD(2020)0140

Position of the European Parliament adopted at first reading on 6 October 2020 with a view to the adoption of Regulation (EU) 2020/... of the European Parliament and of the Council amending Regulation (EU) No 514/2014 as regards the decommitment procedure

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2020/1543.)

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/113 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/113

---

P9_TA(2020)0245

Guadeloupe, French Guiana, Martinique and Réunion: indirect taxes on ‘traditional’ rum *

European Parliament legislative resolution of 6 October 2020 on the proposal for a Council decision authorising France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion (COM(2020)0332 — C9-0217/2020 — 2020/0150(CNS))

(Special legislative procedure — consultation)

(2021/C 395/17)

The European Parliament,

| — | having regard to the Commission proposal to the Council (COM(2020)0332), |
| --- | --- |

—

having regard to the Commission proposal to the Council (COM(2020)0332),

| — | having regard to Article 349 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C9-0217/2020), |
| --- | --- |

—

having regard to Article 349 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C9-0217/2020),

| — | having regard to Rule 82 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 82 of its Rules of Procedure,

| — | having regard to the report of the Committee on Regional Development (A9-0156/2020), |
| --- | --- |

—

having regard to the report of the Committee on Regional Development (A9-0156/2020),

| 1. | Approves the Commission proposal; |
| --- | --- |

1.

| 2. | Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament; |
| --- | --- |

2.

| 3. | Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament; |
| --- | --- |

3.

| 4. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

4.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/114 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/114

---

P9_TA(2020)0246

AIEM tax in the Canary Islands *

European Parliament legislative resolution of 6 October 2020 on the proposal for a Council decision on the AIEM tax applicable in the Canary Islands (COM(2020)0355 — C9-0280/2020 — 2020/0163(CNS))

(Special legislative procedure — consultation)

(2021/C 395/18)

The European Parliament,

| — | having regard to the Commission proposal to the Council (COM(2020)0355), |
| --- | --- |

—

having regard to the Commission proposal to the Council (COM(2020)0355),

| — | having regard to Article 349 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C9-0280/2020), |
| --- | --- |

—

having regard to Article 349 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C9-0280/2020),

| — | having regard to Rule 82 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 82 of its Rules of Procedure,

| — | having regard to the report of the Committee on Regional Development (A9-0157/2020), |
| --- | --- |

—

having regard to the report of the Committee on Regional Development (A9-0157/2020),

| 1. | Approves the Commission proposal; |
| --- | --- |

1.

| 2. | Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament; |
| --- | --- |

2.

| 3. | Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament; |
| --- | --- |

3.

| 4. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

4.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/115 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/115

---

P9_TA(2020)0247

Dock dues extension in the French outermost regions *

European Parliament legislative resolution of 6 October 2020 on the proposal for a Council decision amending the period of application of Decision No 940/2014/EU concerning the dock dues in the French outermost regions (COM(2020)0371 — C9-0281/2020 — 2020/0174(CNS))

(Special legislative procedure — consultation)

(2021/C 395/19)

The European Parliament,

| — | having regard to the Commission proposal to the Council (COM(2020)0371), |
| --- | --- |

—

having regard to the Commission proposal to the Council (COM(2020)0371),

| — | having regard to Article 349 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C9-0281/2020), |
| --- | --- |

—

having regard to Article 349 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C9-0281/2020),

| — | having regard to Rule 82 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 82 of its Rules of Procedure,

| — | having regard to the report of the Committee on Regional Development (A9-0159/2020), |
| --- | --- |

—

having regard to the report of the Committee on Regional Development (A9-0159/2020),

| 1. | Approves the Commission proposal; |
| --- | --- |

1.

| 2. | Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament; |
| --- | --- |

2.

| 3. | Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament; |
| --- | --- |

3.

| 4. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

4.

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/116 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/116

---

P9_TA(2020)0248

Draft amending budget No 7/2020: Update of revenue (own resources)

European Parliament resolution of 6 October 2020 on the Council position on Draft amending budget No 7/2020 of the European Union for the financial year 2020 — Update of revenue (own resources) (10430/2020 — C9-0283/2020 — 2020/1999(BUD))

(2021/C 395/20)

The European Parliament,

| — | having regard to Article 314 of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 314 of the Treaty on the Functioning of the European Union,

| — | having regard to Article 106a of the Treaty establishing the European Atomic Energy Community, |
| --- | --- |

—

having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,

| — | having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (1), and in particular Article 44 thereof, |
| --- | --- |

—

having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (1), and in particular Article 44 thereof,

| — | having regard to the general budget of the European Union for the financial year 2020, as definitively adopted on 27 November 2019 (2), |
| --- | --- |

—

having regard to the general budget of the European Union for the financial year 2020, as definitively adopted on 27 November 2019 (2),

| — | having regard to Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 (3), |
| --- | --- |

—

having regard to Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 (3),

| — | having regard to the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (4), |
| --- | --- |

—

having regard to the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (4),

| — | having regard to Council Decision 2014/335/EU, Euratom of 26 May 2014 on the system of own resources of the European Union (5), |
| --- | --- |

—

having regard to Council Decision 2014/335/EU, Euratom of 26 May 2014 on the system of own resources of the European Union (5),

| — | having regard to Draft amending budget No 7/2020, which the Commission adopted on 6 July 2020 (COM(2020)0424), |
| --- | --- |

—

having regard to Draft amending budget No 7/2020, which the Commission adopted on 6 July 2020 (COM(2020)0424),

| — | having regard to the position on Draft amending budget No 7/2020 which the Council adopted on 4 September 2020 and forwarded to Parliament on 7 September 2020 (10430/2020 — C9-0283/2020), |
| --- | --- |

—

having regard to the position on Draft amending budget No 7/2020 which the Council adopted on 4 September 2020 and forwarded to Parliament on 7 September 2020 (10430/2020 — C9-0283/2020),

| — | having regard to Rules 94 and 96 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 94 and 96 of its Rules of Procedure,

| — | having regard to the report of the Committee on Budgets (A9-0163/2020), |
| --- | --- |

—

having regard to the report of the Committee on Budgets (A9-0163/2020),

| A. | whereas the purpose of Draft amending budget No 7/2020 is to update the revenue side of the budget to take account of the latest developments, |
| --- | --- |

A.

whereas the purpose of Draft amending budget No 7/2020 is to update the revenue side of the budget to take account of the latest developments,

| B. | whereas the COVID-19 pandemic has drastically changed the outlook for the Union economy and the Commission spring 2020 forecast expects the Union economy to contract by a record 7,5 % this year, followed by a rebound of 6,1 % in 2021, not enough to fully make up for this year’s loss, and whereas the worsening economic situation is reflected in the own resources forecast for 2020, |
| --- | --- |

B.

whereas the COVID-19 pandemic has drastically changed the outlook for the Union economy and the Commission spring 2020 forecast expects the Union economy to contract by a record 7,5 % this year, followed by a rebound of 6,1 % in 2021, not enough to fully make up for this year’s loss, and whereas the worsening economic situation is reflected in the own resources forecast for 2020,

| C. | whereas two types of adjustments to the revenue side of the budget are required, namely an update of the estimates for Traditional Own Resources (TOR) as well as for the own resources based on the Value Added Tax (VAT) and Gross National Income (GNI) to take account of more recent economic forecasts, and an update of the UK correction, |
| --- | --- |

C.

whereas two types of adjustments to the revenue side of the budget are required, namely an update of the estimates for Traditional Own Resources (TOR) as well as for the own resources based on the Value Added Tax (VAT) and Gross National Income (GNI) to take account of more recent economic forecasts, and an update of the UK correction,

| D. | whereas the other revenue also needs to be updated to take into account finally cashed fines and penalty payments until June 2020 and negative exchange rate differences, |
| --- | --- |

D.

whereas the other revenue also needs to be updated to take into account finally cashed fines and penalty payments until June 2020 and negative exchange rate differences,

| 1. | Takes note of Draft amending budget No 7/2020 as submitted by the Commission, which is devoted to update the revenue side of the budget; |
| --- | --- |

1.

| 2. | Approves the Council position on Draft amending budget No 7/2020; |
| --- | --- |

2.

| 3. | Instructs its President to declare that Amending budget No 7/2020 has been definitively adopted and arrange for its publication in the Official Journal of the European Union; |
| --- | --- |

3.

| 4. | Instructs its President to forward this resolution to the Council, the Commission, the other institutions and bodies concerned and the national parliaments. |
| --- | --- |

4.

---

(1)  OJ L 193, 30.7.2018, p. 1.

(2)  OJ L 57, 27.2.2020.

(3)  OJ L 347, 20.12.2013, p. 884.

(4)  OJ C 373, 20.12.2013, p. 1.

(5)  OJ L 168, 7.6.2014, p. 105.

---

Wednesday 7 October 2020

| 29.9.2021 | EN | Official Journal of the European Union | C 395/118 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/118

---

P9_TA(2020)0250

Approval of the appointment of Mairead McGuinness as a Member of the European Commission

European Parliament decision of 7 October 2020 on the appointment of Mairead McGuinness as a Member of the Commission (C9-0295/2020 — 2020/0803(NLE))

(2021/C 395/21)

The European Parliament,

| — | having regard to Article 246, second paragraph, of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 246, second paragraph, of the Treaty on the Functioning of the European Union,

| — | having regard to Article 106a of the Treaty establishing the European Atomic Energy Community, |
| --- | --- |

—

having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,

| — | having regard to point 6 of the Framework Agreement on relations between the European Parliament and the European Commission (1), |
| --- | --- |

—

having regard to point 6 of the Framework Agreement on relations between the European Parliament and the European Commission (1),

| — | having regard to the resignation of Phil Hogan as a Member of the Commission, |
| --- | --- |

—

having regard to the resignation of Phil Hogan as a Member of the Commission,

| — | having regard to the Council's letter of 14 September 2020, whereby the Council consulted Parliament on a decision, to be taken by common accord with the President of the Commission, on the appointment of Mairead McGuinness as a Member of the Commission (C9-0295/2020), |
| --- | --- |

—

having regard to the Council's letter of 14 September 2020, whereby the Council consulted Parliament on a decision, to be taken by common accord with the President of the Commission, on the appointment of Mairead McGuinness as a Member of the Commission (C9-0295/2020),

| — | having regard to the letter of the President of the Commission of 14 September 2020, |
| --- | --- |

—

having regard to the letter of the President of the Commission of 14 September 2020,

| — | having regard to the hearing of Mairead McGuinness on 2 October 2020, led by the Committee on Economic and Monetary Affairs, and to the evaluation letter drawn up following that hearing, |
| --- | --- |

—

having regard to the hearing of Mairead McGuinness on 2 October 2020, led by the Committee on Economic and Monetary Affairs, and to the evaluation letter drawn up following that hearing,

| — | having regard to the examination by the Conference of Committee Chairs at its meeting on 5 October 2020, and the examination by the Conference of Presidents at its meeting on 6 October 2020, |
| --- | --- |

—

having regard to the examination by the Conference of Committee Chairs at its meeting on 5 October 2020, and the examination by the Conference of Presidents at its meeting on 6 October 2020,

| — | having regard to Rule 125 of, and Annex VII to, its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 125 of, and Annex VII to, its Rules of Procedure,

| 1. | Approves the appointment of Mairead McGuinness as a Member of the Commission for the remainder of the Commission’s term of office until 31 October 2024; |
| --- | --- |

1.

| 2. | Instructs its President to forward this decision to the Council, the Commission and the governments of the Member States. |
| --- | --- |

2.

---

(1)  OJ L 304, 20.11.2010, p. 47.

---

Thursday 8 October 2020

| 29.9.2021 | EN | Official Journal of the European Union | C 395/119 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/119

---

P9_TA(2020)0253

European Climate Law ***I

Amendments adopted by the European Parliament on 8 October 2020 on the proposal for a regulation of the European Parliament and of the Council establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law) (COM(2020)0080 — COM(2020)0563 — C9-0077/2020 — 2020/0036(COD)) (1)

(Ordinary legislative procedure: first reading)

(2021/C 395/22)

Amendment 1

Draft legislative resolution

Citation 5 a (new)

| Draft legislative resolution | Amendment |
| --- | --- |
| | — | having regard to the United Nations 2030 Agenda for Sustainable Development and to the Sustainable Development Goals (SDGs), including SDG 3 ‘Global Health and Well-Being’, |

Draft legislative resolution

Amendment

—

having regard to the United Nations 2030 Agenda for Sustainable Development and to the Sustainable Development Goals (SDGs), including SDG 3 ‘Global Health and Well-Being’,

Amendment 2

Draft legislative resolution

Citation 5 b (new)

| Draft legislative resolution | Amendment |
| --- | --- |
| | — | having regard to the dramatic consequences of air pollution on human health that causes, according to the European Environment Agency, 400 000 premature deaths per year, |

Draft legislative resolution

Amendment

—

having regard to the dramatic consequences of air pollution on human health that causes, according to the European Environment Agency, 400 000 premature deaths per year,

Amendment 3

Proposal for a regulation

Recital - 1 (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (-1) | The existential threat posed by climate change requires enhanced ambition and increased climate action by the Union and Member States. The Union is committed to stepping up efforts to tackle climate change and to delivering on the implementation of the 2015 Paris Agreement on climate change following the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’)

   (1a)

  on the basis of equity and best available science, taking its fair share of the global effort to limiting the global temperature increase to 1,5  oC above pre-industrial levels. |

Text proposed by the Commission

Amendment

(-1)

The existential threat posed by climate change requires enhanced ambition and increased climate action by the Union and Member States. The Union is committed to stepping up efforts to tackle climate change and to delivering on the implementation of the 2015 Paris Agreement on climate change following the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’)

   (1a)

  on the basis of equity and best available science, taking its fair share of the global effort to limiting the global temperature increase to 1,5  oC above pre-industrial levels.

Amendment 4

Proposal for a regulation

Recital 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| (1) | The Commission has, in its Communication of 11 December 2019 entitled ‘The European Green Deal’ (19), set out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy, where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. It also aims to protect, conserve and enhance the Union’s natural capital, and protect the health and well-being of citizens from environment-related risks and impacts.
  At the same time, this
  transition must be just and inclusive,
  leaving
  no one behind. |

Text proposed by the Commission

Amendment

(1)

The Commission has, in its Communication of 11 December 2019 entitled ‘The European Green Deal’ (19), set out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy, where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. It also aims to protect, conserve and enhance the Union’s natural capital, and protect the health and well-being of citizens from environment-related risks and impacts.
  At the same time, this
  transition must be just and inclusive,
  leaving
  no one behind.

| (1) | The Commission has, in its Communication of 11 December 2019 entitled ‘The European Green Deal’ (19) , set out a new
  sustainable
  growth strategy that aims to transform the Union into a 
  healthier,
  fair and prosperous society, with a modern,
  sustainable,
  resource-efficient and
  internationally
  competitive economy
  , and high-quality jobs
  , where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. It also aims to protect, conserve
  , restore
  and enhance the Union’s natural capital,
  marine and terrestrial ecosystems and biodiversity,
  and protect the health and well-being of citizens from environment-related risks and impacts.
  That
  transition must be
  based on the latest independent scientific evidence. At the same time, it must be socially
  just and inclusive,
  and be based on solidarity and collaborative effort at the Union level, ensuring that
  no one
  is left
  behind
  , while also aiming at creating economic growth, high-quality jobs, and a predictable environment for investment, and follow the ‘do no harm’ principle
  . |
| --- | --- |

(1)

The Commission has, in its Communication of 11 December 2019 entitled ‘The European Green Deal’ (19) , set out a new
  sustainable
  growth strategy that aims to transform the Union into a 
  healthier,
  fair and prosperous society, with a modern,
  sustainable,
  resource-efficient and
  internationally
  competitive economy
  , and high-quality jobs
  , where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. It also aims to protect, conserve
  , restore
  and enhance the Union’s natural capital,
  marine and terrestrial ecosystems and biodiversity,
  and protect the health and well-being of citizens from environment-related risks and impacts.
  That
  transition must be
  based on the latest independent scientific evidence. At the same time, it must be socially
  just and inclusive,
  and be based on solidarity and collaborative effort at the Union level, ensuring that
  no one
  is left
  behind
  , while also aiming at creating economic growth, high-quality jobs, and a predictable environment for investment, and follow the ‘do no harm’ principle
  .

Amendment 5

Proposal for a regulation

Recital 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| (2) | The Intergovernmental Panel on Climate Change’s (IPCC) Special Report on the impacts of global warming of 1,5  oC above pre-industrial levels and related global greenhouse gas emission pathways (20) provides a strong scientific basis for tackling climate change and illustrates the need to
  step up climate action
  . It confirms that greenhouse gas emissions need to be urgently reduced, and that climate change needs to be limited to 1,5  oC, in particular to reduce the likelihood of extreme weather events. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services’ (IPBES) 2019 Global Assessment Report (21) showed worldwide erosion of biodiversity, with climate change as the third most important driver of biodiversity loss (22). |

Text proposed by the Commission

Amendment

(2)

The Intergovernmental Panel on Climate Change’s (IPCC) Special Report on the impacts of global warming of 1,5  oC above pre-industrial levels and related global greenhouse gas emission pathways (20) provides a strong scientific basis for tackling climate change and illustrates the need to
  step up climate action
  . It confirms that greenhouse gas emissions need to be urgently reduced, and that climate change needs to be limited to 1,5  oC, in particular to reduce the likelihood of extreme weather events. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services’ (IPBES) 2019 Global Assessment Report (21) showed worldwide erosion of biodiversity, with climate change as the third most important driver of biodiversity loss (22).

| (2) | The Intergovernmental Panel on Climate Change’s (IPCC) Special Report on the impacts of global warming of 1,5  oC above pre-industrial levels and related global greenhouse gas emission pathways (20) provides a strong scientific basis for tackling climate change and illustrates the need to
  rapidly step up climate action and for a transition to a climate-neutral economy
  . It confirms that greenhouse gas emissions need to be urgently reduced, and that climate change needs to be limited to 1,5  oC, in particular to reduce the likelihood of extreme weather events
  and of reaching tipping points
  . The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services’ (IPBES) 2019 Global Assessment Report (21) showed worldwide erosion of biodiversity, with climate change as the third most important driver of biodiversity loss (22).
  It also showed that nature-based solutions are estimated to provide 37 % of climate change mitigation up to 2030. Climate change has a severe impact on marine and terrestrial ecosystems which act as essential sinks for anthropogenic carbon emissions with a gross absorption of about 60 % of global anthropogenic emissions per year. |
| --- | --- |

(2)

The Intergovernmental Panel on Climate Change’s (IPCC) Special Report on the impacts of global warming of 1,5  oC above pre-industrial levels and related global greenhouse gas emission pathways (20) provides a strong scientific basis for tackling climate change and illustrates the need to
  rapidly step up climate action and for a transition to a climate-neutral economy
  . It confirms that greenhouse gas emissions need to be urgently reduced, and that climate change needs to be limited to 1,5  oC, in particular to reduce the likelihood of extreme weather events
  and of reaching tipping points
  . The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services’ (IPBES) 2019 Global Assessment Report (21) showed worldwide erosion of biodiversity, with climate change as the third most important driver of biodiversity loss (22).
  It also showed that nature-based solutions are estimated to provide 37 % of climate change mitigation up to 2030. Climate change has a severe impact on marine and terrestrial ecosystems which act as essential sinks for anthropogenic carbon emissions with a gross absorption of about 60 % of global anthropogenic emissions per year.

Amendment 6

Proposal for a regulation

Recital 3

| Text proposed by the Commission | Amendment |
| --- | --- |
| (3) | A fixed long-term objective is crucial to contribute to economic and societal transformation, jobs, growth, and the achievement of the United Nations Sustainable Development Goals, as well as to
  move in a
  fair
  and
  cost-effective manner
  towards
  the temperature goal of the 2015 Paris Agreement on climate change following the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’). |

Text proposed by the Commission

Amendment

(3)

A fixed long-term objective is crucial to contribute to economic and societal transformation, jobs, growth, and the achievement of the United Nations Sustainable Development Goals, as well as to
  move in a
  fair
  and
  cost-effective manner
  towards
  the temperature goal of the 2015 Paris Agreement on climate change following the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’).

| (3) | A fixed long-term objective is crucial to contribute to
  a just
  economic and societal transformation,
  high-quality
  jobs,
  social welfare, sustainable
  growth, and the achievement of the United Nations Sustainable Development Goals, as well as to
  reach in a swift,
  fair
  , efficient,
  cost-effective
  , and socially just
   manner
  without leaving anyone behind
  the temperature goal of the 2015 Paris Agreement on climate change following the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’). |
| --- | --- |

(3)

A fixed long-term objective is crucial to contribute to
  a just
  economic and societal transformation,
  high-quality
  jobs,
  social welfare, sustainable
  growth, and the achievement of the United Nations Sustainable Development Goals, as well as to
  reach in a swift,
  fair
  , efficient,
  cost-effective
  , and socially just
   manner
  without leaving anyone behind
  the temperature goal of the 2015 Paris Agreement on climate change following the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’).

Amendment 7

Proposal for a regulation

Recital 3 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (3a) | Science has proved the interlinkage between health, environmental and climate crisis, notably linked to the consequences of climate change and the loss of biodiversity and ecosystems. Health and sanitary crises such as COVID-19 might multiply in the decades to come and require the Union, as a global player, to implement a global strategy aimed at preventing the development of such episodes, by addressing issues at their root, and promoting an integrated approach based on the sustainable development goals. |

Text proposed by the Commission

Amendment

(3a)

Science has proved the interlinkage between health, environmental and climate crisis, notably linked to the consequences of climate change and the loss of biodiversity and ecosystems. Health and sanitary crises such as COVID-19 might multiply in the decades to come and require the Union, as a global player, to implement a global strategy aimed at preventing the development of such episodes, by addressing issues at their root, and promoting an integrated approach based on the sustainable development goals.

Amendment 8

Proposal for a regulation

Recital 3 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (3b) | According to the WHO, climate change affects the social and environmental determinants of health — clean air, safe drinking water, sufficient food and secure shelter — and 250 000 additional deaths, from malnutrition, malaria, diarrhoea and heat stress, are expected every year between 2030 and 2050, with extremely high air temperatures contributing directly to deaths, particularly amongst the elderly and vulnerable individuals. Through flood, heatwaves, drought and fires, climate change has a considerable impact on human health, including undernutrition, cardiovascular and respiratory diseases, and vector-borne infections. |

Text proposed by the Commission

Amendment

(3b)

According to the WHO, climate change affects the social and environmental determinants of health — clean air, safe drinking water, sufficient food and secure shelter — and 250 000 additional deaths, from malnutrition, malaria, diarrhoea and heat stress, are expected every year between 2030 and 2050, with extremely high air temperatures contributing directly to deaths, particularly amongst the elderly and vulnerable individuals. Through flood, heatwaves, drought and fires, climate change has a considerable impact on human health, including undernutrition, cardiovascular and respiratory diseases, and vector-borne infections.

Amendment 9

Proposal for a regulation

Recital 3 c (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (3c) | The preamble to the Paris Agreement acknowledges the right to health as a key right. According to the United Nations Framework Convention on Climate Change, all Parties thereto are to employ appropriate methods, for example impacts assessments, formulated and determined nationally with a view to minimising adverse effects on the economy, on public health and on the quality of the environment, of projects or measures undertaken by them to mitigate or adapt climate change. |

Text proposed by the Commission

Amendment

(3c)

The preamble to the Paris Agreement acknowledges the right to health as a key right. According to the United Nations Framework Convention on Climate Change, all Parties thereto are to employ appropriate methods, for example impacts assessments, formulated and determined nationally with a view to minimising adverse effects on the economy, on public health and on the quality of the environment, of projects or measures undertaken by them to mitigate or adapt climate change.

Amendment 10

Proposal for a regulation

Recital 3 d (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (3d) | This Regulation contributes to protecting Union citizens’ inalienable rights to life and a safe environment, as recognised in the European Convention on Human Rights and the Charter of Fundamental Rights of the European Union, and requires the relevant Union institutions and Member States to take the measures necessary at Union or national level respectively to address the real and immediate risks, both to people’s lives and welfare and to the natural world on which they depend, posed by the global climate emergency. This Regulation should be people centred and should aim to protect the health and well-being of citizens from environment-related risks and impacts. |

Text proposed by the Commission

Amendment

(3d)

This Regulation contributes to protecting Union citizens’ inalienable rights to life and a safe environment, as recognised in the European Convention on Human Rights and the Charter of Fundamental Rights of the European Union, and requires the relevant Union institutions and Member States to take the measures necessary at Union or national level respectively to address the real and immediate risks, both to people’s lives and welfare and to the natural world on which they depend, posed by the global climate emergency. This Regulation should be people centred and should aim to protect the health and well-being of citizens from environment-related risks and impacts.

Amendment 153

Proposal for a regulation

Recital 3 e (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (3e) | Climate protection should be an opportunity for the European economy and should help securing its industry leadership in global innovation. Sustainable production innovations can promote European industrial strength in key market segments and thus protect and create jobs. In order to achieve the legally binding 2030 target for climate and the 2050 climate-neutrality objective by reducing these emissions to net zero by 2050 at the latest, the Commission should facilitate sector-specific ‘Climate Partnerships’ at Union level by bringing together key stakeholders (e.g. from the industry, NGOs, research institutes, SMEs, trade unions and employers' organisations). The Climate Partnerships should work as a sector-specific dialogue and facilitate a sharing of best practices by European ‘decarbonising first movers’ and work as the central consulting body to the Commission when adopting its future climate-related legislative proposals. |

Text proposed by the Commission

Amendment

(3e)

Climate protection should be an opportunity for the European economy and should help securing its industry leadership in global innovation. Sustainable production innovations can promote European industrial strength in key market segments and thus protect and create jobs. In order to achieve the legally binding 2030 target for climate and the 2050 climate-neutrality objective by reducing these emissions to net zero by 2050 at the latest, the Commission should facilitate sector-specific ‘Climate Partnerships’ at Union level by bringing together key stakeholders (e.g. from the industry, NGOs, research institutes, SMEs, trade unions and employers' organisations). The Climate Partnerships should work as a sector-specific dialogue and facilitate a sharing of best practices by European ‘decarbonising first movers’ and work as the central consulting body to the Commission when adopting its future climate-related legislative proposals.

Amendment 11

Proposal for a regulation

Recital 4

| Text proposed by the Commission | Amendment |
| --- | --- |
| (4) | The Paris Agreement sets out a long-term goal to
  keep
  the global temperature increase
  to well below 2 oC above pre-industrial levels and to pursue efforts to keep it
  to 1,5  oC above pre-industrial levels (23),
  and stresses the importance of adapting
  to the adverse impacts of climate change (24) and making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development (25). |

Text proposed by the Commission

Amendment

(4)

The Paris Agreement sets out a long-term goal to
  keep
  the global temperature increase
  to well below 2 oC above pre-industrial levels and to pursue efforts to keep it
  to 1,5  oC above pre-industrial levels (23),
  and stresses the importance of adapting
  to the adverse impacts of climate change (24) and making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development (25).

| (4) | The Paris Agreement sets out a long-term goal to
  pursue efforts to limit
  the global temperature increase to 1,5  oC above pre-industrial levels (23),
  to increase the ability to adapt
  to the adverse impacts of climate change (24) and
  to make
  finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development (25).
  As the overall framework for the Union’s contribution to the Paris Agreement, this Regulation should ensure that both the Union and Member States fully contribute to the achievement of those three goals of the Paris Agreement. |
| --- | --- |

(4)

The Paris Agreement sets out a long-term goal to
  pursue efforts to limit
  the global temperature increase to 1,5  oC above pre-industrial levels (23),
  to increase the ability to adapt
  to the adverse impacts of climate change (24) and
  to make
  finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development (25).
  As the overall framework for the Union’s contribution to the Paris Agreement, this Regulation should ensure that both the Union and Member States fully contribute to the achievement of those three goals of the Paris Agreement.

Amendment 12

Proposal for a regulation

Recital 5

| Text proposed by the Commission | Amendment |
| --- | --- |
| (5) | The Union’s and the Member States’ climate action aims to protect people and the planet, welfare, prosperity, health, food systems, the integrity of eco-systems and biodiversity against the threat of climate change, in the context of the 2030 agenda for sustainable development and in pursuit of the objectives of the Paris Agreement, and to maximize prosperity within the planetary boundaries and to increase resilience and reduce vulnerability of society to climate change. |

Text proposed by the Commission

Amendment

(5)

The Union’s and the Member States’ climate action aims to protect people and the planet, welfare, prosperity, health, food systems, the integrity of eco-systems and biodiversity against the threat of climate change, in the context of the 2030 agenda for sustainable development and in pursuit of the objectives of the Paris Agreement, and to maximize prosperity within the planetary boundaries and to increase resilience and reduce vulnerability of society to climate change.

| (5) | The Union’s and the Member States’ climate action aims to protect people and the planet, welfare, prosperity
  , the economy
  , health, food systems, the integrity of eco-systems and biodiversity against the threat of climate change, in the context of the 2030 agenda for sustainable development and in pursuit of the objectives of the Paris Agreement, and to maximize prosperity within the planetary boundaries and to increase resilience and reduce vulnerability of society to climate change.
  In this light, the Union and Member States’ actions should be guided by the precautionary principle, the polluter pays principle, the energy efficiency first principle and the ‘do no harm’ principle. |
| --- | --- |

(5)

The Union’s and the Member States’ climate action aims to protect people and the planet, welfare, prosperity
  , the economy
  , health, food systems, the integrity of eco-systems and biodiversity against the threat of climate change, in the context of the 2030 agenda for sustainable development and in pursuit of the objectives of the Paris Agreement, and to maximize prosperity within the planetary boundaries and to increase resilience and reduce vulnerability of society to climate change.
  In this light, the Union and Member States’ actions should be guided by the precautionary principle, the polluter pays principle, the energy efficiency first principle and the ‘do no harm’ principle.

Amendment 13

Proposal for a regulation

Recital 5 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (5a) | Driven by the regulatory framework put in place by the Union and efforts taken by the European industries, Union greenhouse gas emissions were reduced by 23 % between 1990 and 2018, while the economy grew by 61 % over the same period, showing that it is possible to decouple economic growth from greenhouse gas emissions. |

Text proposed by the Commission

Amendment

(5a)

Driven by the regulatory framework put in place by the Union and efforts taken by the European industries, Union greenhouse gas emissions were reduced by 23 % between 1990 and 2018, while the economy grew by 61 % over the same period, showing that it is possible to decouple economic growth from greenhouse gas emissions.

Amendment 14

Proposal for a regulation

Recital 6

| Text proposed by the Commission | Amendment |
| --- | --- |
| (6) | Achieving climate neutrality
  should require a contribution from
  all economic sectors. In light of the importance of energy production and consumption on greenhouse gas emissions, the transition to a sustainable, affordable and secure energy system relying on a well-functioning internal energy market is essential. The digital transformation, technological innovation,
  and
  research and development are also important drivers for achieving the climate-neutrality objective. |

Text proposed by the Commission

Amendment

(6)

Achieving climate neutrality
  should require a contribution from
  all economic sectors. In light of the importance of energy production and consumption on greenhouse gas emissions, the transition to a sustainable, affordable and secure energy system relying on a well-functioning internal energy market is essential. The digital transformation, technological innovation,
  and
  research and development are also important drivers for achieving the climate-neutrality objective.

| (6) | Achieving climate neutrality
  requires
  all economic sectors
  , including aviation and maritime transport, to swiftly reduce their emissions to close to zero. The polluter pays principle should be a key factor in that regard
  . In light of the importance of energy production and consumption on greenhouse gas emissions, the transition to a 
  highly energy efficient and renewables-based
  sustainable, affordable and secure energy system,
  while reducing energy poverty
  , relying on a well-functioning internal energy market is essential.
  The contribution of the circular economy to climate neutrality should be expanded by improving resource efficiency and increasing the use of low-carbon materials while promoting waste prevention and recycling.
  The digital transformation, technological innovation and research and development,
  which will require additional funding,
  are also important drivers for achieving the climate-neutrality objective
  . The Union and Member States will need to adopt ambitious and coherent regulatory frameworks to ensure the contribution of all sectors of the economy to the Union climate objectives. |
| --- | --- |

(6)

Achieving climate neutrality
  requires
  all economic sectors
  , including aviation and maritime transport, to swiftly reduce their emissions to close to zero. The polluter pays principle should be a key factor in that regard
  . In light of the importance of energy production and consumption on greenhouse gas emissions, the transition to a 
  highly energy efficient and renewables-based
  sustainable, affordable and secure energy system,
  while reducing energy poverty
  , relying on a well-functioning internal energy market is essential.
  The contribution of the circular economy to climate neutrality should be expanded by improving resource efficiency and increasing the use of low-carbon materials while promoting waste prevention and recycling.
  The digital transformation, technological innovation and research and development,
  which will require additional funding,
  are also important drivers for achieving the climate-neutrality objective
  . The Union and Member States will need to adopt ambitious and coherent regulatory frameworks to ensure the contribution of all sectors of the economy to the Union climate objectives.

Amendment 15

Proposal for a regulation

Recital 6 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (6a) | Cumulative total anthropogenic greenhouse gas emissions over time and the corresponding concentration of greenhouse gases in the atmosphere are in particular relevant for the climate system and temperature increases. The IPCC Special report on Global Warming of 1,5  oC and its underlying scenario database provide the best available and most recent scientific evidence on the remaining global greenhouse gas budget to limit the global temperature increase in the 21st century to 1,5  oC above pre-industrial levels. In order to be consistent with Union commitments of pursuing efforts to limit the temperature increase to 1,5  oC above pre-industrial levels, it is necessary to establish a Union fair share of the remaining global greenhouse gas budget. The greenhouse gas budget is also an important tool to increase transparency and accountability of the Union’s climate policies. In its in-depth analysis in support of the Commission Communication of 28 November 2018 entitled ‘A Clean Planet for all — A European long-term strategic vision for a prosperous, modern, competitive and climate neutral economy’, the Commission indicates that a 1,5  oC compatible EU-28 carbon budget for 2018-2050 would amount to 48 Gt CO2. The Commission should establish an EU-27 net greenhouse gas budget, expressed in CO2 equivalent based on the latest scientific calculations used by the IPCC, which represents the Union’s fair share of the remaining global emissions, in line with the Paris Agreement objectives. The Union’s greenhouse gas budget should guide the establishment of the Union trajectory towards net-zero greenhouse gas emissions by 2050, in particular its future 2030 and 2040 greenhouse gas targets. |

Text proposed by the Commission

Amendment

(6a)

Cumulative total anthropogenic greenhouse gas emissions over time and the corresponding concentration of greenhouse gases in the atmosphere are in particular relevant for the climate system and temperature increases. The IPCC Special report on Global Warming of 1,5  oC and its underlying scenario database provide the best available and most recent scientific evidence on the remaining global greenhouse gas budget to limit the global temperature increase in the 21st century to 1,5  oC above pre-industrial levels. In order to be consistent with Union commitments of pursuing efforts to limit the temperature increase to 1,5  oC above pre-industrial levels, it is necessary to establish a Union fair share of the remaining global greenhouse gas budget. The greenhouse gas budget is also an important tool to increase transparency and accountability of the Union’s climate policies. In its in-depth analysis in support of the Commission Communication of 28 November 2018 entitled ‘A Clean Planet for all — A European long-term strategic vision for a prosperous, modern, competitive and climate neutral economy’, the Commission indicates that a 1,5  oC compatible EU-28 carbon budget for 2018-2050 would amount to 48 Gt CO2. The Commission should establish an EU-27 net greenhouse gas budget, expressed in CO2 equivalent based on the latest scientific calculations used by the IPCC, which represents the Union’s fair share of the remaining global emissions, in line with the Paris Agreement objectives. The Union’s greenhouse gas budget should guide the establishment of the Union trajectory towards net-zero greenhouse gas emissions by 2050, in particular its future 2030 and 2040 greenhouse gas targets.

Amendment 16

Proposal for a regulation

Recital 7

| Text proposed by the Commission | Amendment |
| --- | --- |
| (7) | The Union
  has been pursuing an ambitious policy on climate action and
  has put in place a regulatory framework to achieve its 2030 greenhouse gas emission reduction target. The legislation implementing this target consists, inter alia, of Directive 2003/87/EC of the European Parliament and of the Council (26), which establishes a system for greenhouse gas emission allowance trading within the Union, Regulation (EU) 2018/842 of the European Parliament and of the Council (27), which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council (28), which requires Member States to balance greenhouse gas emissions and removals from land use, land use change and forestry. |

Text proposed by the Commission

Amendment

(7)

The Union
  has been pursuing an ambitious policy on climate action and
  has put in place a regulatory framework to achieve its 2030 greenhouse gas emission reduction target. The legislation implementing this target consists, inter alia, of Directive 2003/87/EC of the European Parliament and of the Council (26), which establishes a system for greenhouse gas emission allowance trading within the Union, Regulation (EU) 2018/842 of the European Parliament and of the Council (27), which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council (28), which requires Member States to balance greenhouse gas emissions and removals from land use, land use change and forestry.

| (7) | The Union has put in place a regulatory framework to achieve its
  current
  2030 greenhouse gas emission reduction target
  adopted before the entry into force of the Paris Agreement
  . The legislation implementing this target consists, inter alia, of Directive 2003/87/EC of the European Parliament and of the Council (26), which establishes a system for greenhouse gas emission allowance trading within the Union, Regulation (EU) 2018/842 of the European Parliament and of the Council (27), which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council (28), which requires Member States to balance greenhouse gas emissions and removals from land use, land use change and forestry. |
| --- | --- |

(7)

The Union has put in place a regulatory framework to achieve its
  current
  2030 greenhouse gas emission reduction target
  adopted before the entry into force of the Paris Agreement
  . The legislation implementing this target consists, inter alia, of Directive 2003/87/EC of the European Parliament and of the Council (26), which establishes a system for greenhouse gas emission allowance trading within the Union, Regulation (EU) 2018/842 of the European Parliament and of the Council (27), which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council (28), which requires Member States to balance greenhouse gas emissions and removals from land use, land use change and forestry.

Amendment 17

Proposal for a regulation

Recital 7 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (7a) | The Emissions Trading System is a cornerstone of the Union’s climate policy and its key tool for reducing emissions in a cost effective way. |

Text proposed by the Commission

Amendment

(7a)

The Emissions Trading System is a cornerstone of the Union’s climate policy and its key tool for reducing emissions in a cost effective way.

Amendment 18

Proposal for a regulation

Recital 9

| Text proposed by the Commission | Amendment |
| --- | --- |
| (9) | The Union has, through the ‘Clean Energy for All Europeans’ package (29) been pursuing
  an ambitious
  decarbonisation agenda notably by constructing a robust Energy Union, which includes 2030 goals for energy efficiency and deployment of renewable energy in Directives 2012/27/EU (30) and (EU) 2018/2001 (31) of the European Parliament and of the Council, and by reinforcing relevant legislation, including Directive 2010/31/EU of the European Parliament and of the Council (32). |

Text proposed by the Commission

Amendment

(9)

The Union has, through the ‘Clean Energy for All Europeans’ package (29) been pursuing
  an ambitious
  decarbonisation agenda notably by constructing a robust Energy Union, which includes 2030 goals for energy efficiency and deployment of renewable energy in Directives 2012/27/EU (30) and (EU) 2018/2001 (31) of the European Parliament and of the Council, and by reinforcing relevant legislation, including Directive 2010/31/EU of the European Parliament and of the Council (32).

| (9) | The Union has, through the ‘Clean Energy for All Europeans’ package (29) been pursuing
  a
  decarbonisation agenda notably by constructing a robust Energy Union, which includes 2030 goals for energy efficiency and deployment of renewable energy in Directives 2012/27/EU (30) and (EU) 2018/2001 (31) of the European Parliament and of the Council, and by reinforcing relevant legislation, including Directive 2010/31/EU of the European Parliament and of the Council (32). |
| --- | --- |

(9)

The Union has, through the ‘Clean Energy for All Europeans’ package (29) been pursuing
  a
  decarbonisation agenda notably by constructing a robust Energy Union, which includes 2030 goals for energy efficiency and deployment of renewable energy in Directives 2012/27/EU (30) and (EU) 2018/2001 (31) of the European Parliament and of the Council, and by reinforcing relevant legislation, including Directive 2010/31/EU of the European Parliament and of the Council (32).

Amendment 19

Proposal for a regulation

Recital 9 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (9a) | The Commission has developed and adopted several legislative initiatives in the energy sector, in particular with regard to renewable energy, energy efficiency, including on the energy performance of buildings. Those initiatives form a package under the overarching theme of energy efficiency first and the Union's global leadership in renewables. Those initiatives should be taken into account in the national long-term progress in the work towards the 2050 climate neutrality target to ensure a highly energy efficient, renewables-based energy system and development of renewables within the Union. |

Text proposed by the Commission

Amendment

(9a)

The Commission has developed and adopted several legislative initiatives in the energy sector, in particular with regard to renewable energy, energy efficiency, including on the energy performance of buildings. Those initiatives form a package under the overarching theme of energy efficiency first and the Union's global leadership in renewables. Those initiatives should be taken into account in the national long-term progress in the work towards the 2050 climate neutrality target to ensure a highly energy efficient, renewables-based energy system and development of renewables within the Union.

Amendment 20

Proposal for a regulation

Recital 9 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (9b) | The clean energy transition will result in an energy system in which the primary energy supply will mostly come from renewable energy sources, which will significantly improve security of supply, reduce energy dependency and promote domestic jobs. |

Text proposed by the Commission

Amendment

(9b)

The clean energy transition will result in an energy system in which the primary energy supply will mostly come from renewable energy sources, which will significantly improve security of supply, reduce energy dependency and promote domestic jobs.

Amendment 21

Proposal for a regulation

Recital 9 c (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (9c) | The energy transition improves the energy efficiency and reduces the energy dependency of the Union and Member States. That structural change towards a more efficient economy based on renewable energy in all sectors will not only benefit the trade balance but also strengthen energy security and fight energy poverty. |

Text proposed by the Commission

Amendment

(9c)

The energy transition improves the energy efficiency and reduces the energy dependency of the Union and Member States. That structural change towards a more efficient economy based on renewable energy in all sectors will not only benefit the trade balance but also strengthen energy security and fight energy poverty.

Amendment 22

Proposal for a regulation

Recital 9 d (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (9d) | In order to ensure solidarity and enable an effective energy transition, Union climate policy has to design a clear pathway to reach climate neutrality by 2050. The Union should remain realistic about cost-efficiency and technical challenges and ensure that dispatchable sources of energy to balance peak and minimal demand points in energy system, such as hydrogen technologies, are available and affordable. |

Text proposed by the Commission

Amendment

(9d)

Amendment 23

Proposal for a regulation

Recital 9 e (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (9e) | Climate protection provides an opportunity for the Union economy to step up its action and reap the benefits of the first-mover advantage by leading in clean technologies. It could help securing its industry leadership in global innovation. Sustainable production innovations can promote industrial strength of the Union in key market segments and thus protect and create jobs. |

Text proposed by the Commission

Amendment

(9e)

Climate protection provides an opportunity for the Union economy to step up its action and reap the benefits of the first-mover advantage by leading in clean technologies. It could help securing its industry leadership in global innovation. Sustainable production innovations can promote industrial strength of the Union in key market segments and thus protect and create jobs.

Amendment 24

Proposal for a regulation

Recital 9 f (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (9f) | There is a need to set support for the necessary investments in new sustainable technologies that are essential to achieve the climate-neutrality objective. In that regard, it is important to respect technological neutrality while avoiding any lock-in effect. As stated in the Commission communication of 8 July 2020 entitled ‘A hydrogen strategy for a climate-neutral Europe’, hydrogen can also play a role in supporting the Union’s commitment to reach carbon neutrality by 2050 at the latest, especially in energy-intensive sectors. |

Text proposed by the Commission

Amendment

(9f)

There is a need to set support for the necessary investments in new sustainable technologies that are essential to achieve the climate-neutrality objective. In that regard, it is important to respect technological neutrality while avoiding any lock-in effect. As stated in the Commission communication of 8 July 2020 entitled ‘A hydrogen strategy for a climate-neutral Europe’, hydrogen can also play a role in supporting the Union’s commitment to reach carbon neutrality by 2050 at the latest, especially in energy-intensive sectors.

Amendment 154

Proposal for a regulation

Recital 9 g (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (9 g) | The Commission should intensify its efforts to build European Alliances, especially in the battery and hydrogen sectors, as they are of utmost importance. Coordinated at European level, they offer great opportunities for post-COVID-19 regional recovery processes and successful structural change. Statutory requirements should create a framework for innovations in climate-friendly mobility and energy generation. Those alliances should receive adequate support and funding should also be part of the future foreign and neighbourhood policy as well as of trade agreements. |

Text proposed by the Commission

Amendment

(9 g)

The Commission should intensify its efforts to build European Alliances, especially in the battery and hydrogen sectors, as they are of utmost importance. Coordinated at European level, they offer great opportunities for post-COVID-19 regional recovery processes and successful structural change. Statutory requirements should create a framework for innovations in climate-friendly mobility and energy generation. Those alliances should receive adequate support and funding should also be part of the future foreign and neighbourhood policy as well as of trade agreements.

Amendment 25

Proposal for a regulation

Recital 10

| Text proposed by the Commission | Amendment |
| --- | --- |
| (10) | The Union
  is
  a global leader in the transition towards climate neutrality, and is determined to help raise global ambition and to strengthen the global response to climate change, using all tools at its disposal, including climate diplomacy. |

Text proposed by the Commission

Amendment

(10)

The Union
  is
  a global leader in the transition towards climate neutrality, and is determined to help raise global ambition and to strengthen the global response to climate change, using all tools at its disposal, including climate diplomacy.

| (10) | The Union
  has both the responsibility and the means to continue being
  a global leader in the transition towards climate neutrality, and is determined to
  achieve it in a just, socially fair and inclusive way as well as
  help raise global ambition and to strengthen the global response to climate change, using all tools at its disposal, including climate diplomacy,
  trade, investment and industrial policies
  .
  The Union should reinforce its environmental diplomacy in all international fora relevant for reaching international climate goals, in line with the Paris Agreement. |
| --- | --- |

(10)

The Union
  has both the responsibility and the means to continue being
  a global leader in the transition towards climate neutrality, and is determined to
  achieve it in a just, socially fair and inclusive way as well as
  help raise global ambition and to strengthen the global response to climate change, using all tools at its disposal, including climate diplomacy,
  trade, investment and industrial policies
  .
  The Union should reinforce its environmental diplomacy in all international fora relevant for reaching international climate goals, in line with the Paris Agreement.

Amendment 26

Proposal for a regulation

Recital 11

| Text proposed by the Commission | Amendment |
| --- | --- |
| (11) | The European Parliament called for the necessary transition to a climate-neutral society by 2050 at the latest and for this to be made into a European success story (33) and has declared a climate and environment emergency (34). The European Council, in its Conclusions of 12 December 2019 (35), has agreed on the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement,
  while also
  recognising that it is necessary to put in place an enabling framework and that the transition will require significant public and private investment. The European Council also invited the Commission to prepare a proposal for the Union’s long-term strategy as early as possible in 2020 with a view to its adoption by the Council and its submission to the United Nations Framework Convention on Climate Change. |

Text proposed by the Commission

Amendment

(11)

The European Parliament called for the necessary transition to a climate-neutral society by 2050 at the latest and for this to be made into a European success story (33) and has declared a climate and environment emergency (34). The European Council, in its Conclusions of 12 December 2019 (35), has agreed on the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement,
  while also
  recognising that it is necessary to put in place an enabling framework and that the transition will require significant public and private investment. The European Council also invited the Commission to prepare a proposal for the Union’s long-term strategy as early as possible in 2020 with a view to its adoption by the Council and its submission to the United Nations Framework Convention on Climate Change.

| (11) | The European Parliament called
  on the Commission and Member States to increase climate action to facilitate
  the necessary transition to a climate-neutral society
  as soon as possible and
  by 2050 at the latest and for this to be made into a European success story (33) and has declared a climate and environment emergency (34).
  It also repeatedly called on the Union to increase its 2030 climate target, and for that increased target to be part of the European Climate Law

   (34a). The European Council, in its Conclusions of 12 December 2019 (35), has agreed on the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement,
  whilst being based on fairness, a just transition, and taking into consideration the different starting points of Member States, as well as
  recognising that it is necessary to put in place an enabling framework and that the transition will require significant public and private investment. The European Council also invited the Commission to prepare a proposal for the Union’s long-term strategy as early as possible in 2020 with a view to its adoption by the Council and its submission to the United Nations Framework Convention on Climate Change. |
| --- | --- |

(11)

The European Parliament called
  on the Commission and Member States to increase climate action to facilitate
  the necessary transition to a climate-neutral society
  as soon as possible and
  by 2050 at the latest and for this to be made into a European success story (33) and has declared a climate and environment emergency (34).
  It also repeatedly called on the Union to increase its 2030 climate target, and for that increased target to be part of the European Climate Law

   (34a). The European Council, in its Conclusions of 12 December 2019 (35), has agreed on the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement,
  whilst being based on fairness, a just transition, and taking into consideration the different starting points of Member States, as well as
  recognising that it is necessary to put in place an enabling framework and that the transition will require significant public and private investment. The European Council also invited the Commission to prepare a proposal for the Union’s long-term strategy as early as possible in 2020 with a view to its adoption by the Council and its submission to the United Nations Framework Convention on Climate Change.

Amendment 27

Proposal for a regulation

Recital 12

| Text proposed by the Commission | Amendment |
| --- | --- |
| (12) | The Union should aim to achieve a balance between anthropogenic economy-wide emissions and removals, through natural and technological solutions, of greenhouse gases domestically within the Union by 2050. The Union-wide 2050 climate-neutrality objective should be
  pursued
  by all Member States
  collectively,
  and the Member States, the European Parliament, the Council and the Commission should take the necessary measures to enable its achievement. Measures at Union level will constitute an important part of the measures needed to achieve the objective. |

Text proposed by the Commission

Amendment

(12)

The Union should aim to achieve a balance between anthropogenic economy-wide emissions and removals, through natural and technological solutions, of greenhouse gases domestically within the Union by 2050. The Union-wide 2050 climate-neutrality objective should be
  pursued
  by all Member States
  collectively,
  and the Member States, the European Parliament, the Council and the Commission should take the necessary measures to enable its achievement. Measures at Union level will constitute an important part of the measures needed to achieve the objective.

| (12) | The Union
  and Member States
  should aim to achieve a balance between anthropogenic economy-wide emissions and removals, through natural and technological solutions, of greenhouse gases domestically within the Union
  and at Member State level
  by 2050
  at the latest
  . The Union-wide 2050 climate-neutrality objective should be
  achieved
  by all Member States, and the Member States, the European Parliament, the Council and the Commission should take the necessary measures to enable its achievement. Measures at Union level will constitute an important part of the measures needed to achieve the objective.
  After 2050, the Union and all Member States should continue to reduce emissions to ensure that removals of greenhouse gases exceed anthropogenic emissions. |
| --- | --- |

(12)

The Union
  and Member States
  should aim to achieve a balance between anthropogenic economy-wide emissions and removals, through natural and technological solutions, of greenhouse gases domestically within the Union
  and at Member State level
  by 2050
  at the latest
  . The Union-wide 2050 climate-neutrality objective should be
  achieved
  by all Member States, and the Member States, the European Parliament, the Council and the Commission should take the necessary measures to enable its achievement. Measures at Union level will constitute an important part of the measures needed to achieve the objective.
  After 2050, the Union and all Member States should continue to reduce emissions to ensure that removals of greenhouse gases exceed anthropogenic emissions.

Amendment 28

Proposal for a regulation

Recital 12 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (12a) | Each Member State has the responsibility to individually achieve climate neutrality by 2050 at the latest. As a matter of justice and solidarity, and in order to assist the energy transformation of Member States with different starting points, sufficient Union support mechanisms and funding such as the Just Transition Fund provided for in Regulation (EU) .../... of the European Parliament and of the Council

   (1a)

  and other relevant funding mechanisms are needed. |

Text proposed by the Commission

Amendment

(12a)

Each Member State has the responsibility to individually achieve climate neutrality by 2050 at the latest. As a matter of justice and solidarity, and in order to assist the energy transformation of Member States with different starting points, sufficient Union support mechanisms and funding such as the Just Transition Fund provided for in Regulation (EU) .../... of the European Parliament and of the Council

   (1a)

  and other relevant funding mechanisms are needed.

Amendment 29

Proposal for a regulation

Recital 12 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (12b) | The preamble to the Paris Agreement recognises the importance of ensuring the integrity of all ecosystems, including oceans. The United Nations Framework Convention on Climate Change stresses that the Parties thereto shall promote sustainable management, and the conservation and enhancement of sinks and reservoirs of all greenhouse gases, including biomass, forests and oceans as well as other terrestrial, coastal and marine ecosystems. If the Paris agreement goals were to fail, the temperature could exceed the tipping point beyond which the ocean will no longer be able to absorb as much carbon and participate in climate mitigation. |

Text proposed by the Commission

Amendment

(12b)

The preamble to the Paris Agreement recognises the importance of ensuring the integrity of all ecosystems, including oceans. The United Nations Framework Convention on Climate Change stresses that the Parties thereto shall promote sustainable management, and the conservation and enhancement of sinks and reservoirs of all greenhouse gases, including biomass, forests and oceans as well as other terrestrial, coastal and marine ecosystems. If the Paris agreement goals were to fail, the temperature could exceed the tipping point beyond which the ocean will no longer be able to absorb as much carbon and participate in climate mitigation.

Amendment 30

Proposal for a regulation

Recital 12 c (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (12c) | Natural carbon sinks play an important role in the transition to a climate-neutral society. The Commission is exploring the development of a regulatory framework for the certification of carbon removals in accordance with its Circular Economy Action Plan and the Farm to Fork Strategy. The EU Biodiversity Strategy for 2030 and initiatives therein will play an important role in restoring degraded ecosystems, in particular those with the most potential to capture and store carbon and to prevent and reduce the impact of natural disasters. The restoration of ecosystems would assist in maintaining, managing and enhancing natural sinks and promote biodiversity while fighting climate change. |

Text proposed by the Commission

Amendment

(12c)

Natural carbon sinks play an important role in the transition to a climate-neutral society. The Commission is exploring the development of a regulatory framework for the certification of carbon removals in accordance with its Circular Economy Action Plan and the Farm to Fork Strategy. The EU Biodiversity Strategy for 2030 and initiatives therein will play an important role in restoring degraded ecosystems, in particular those with the most potential to capture and store carbon and to prevent and reduce the impact of natural disasters. The restoration of ecosystems would assist in maintaining, managing and enhancing natural sinks and promote biodiversity while fighting climate change.

Amendment 144

Proposal for a regulation

Recital 12 d (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (12d) | The Commission should explore the feasibility of introducing carbon-crediting schemes, including the certification of greenhouse gas removals through carbon sequestration in land use, soil and biomass in agriculture with a view to achieving the Union's climate neutrality target, as well as the feasibility of developing of a separate carbon removals market for land-based greenhouse gas sequestration. Such a framework should be based on best available science and on a system of assessment and approval by the Commission, while ensuring no negative impacts on the environment, in particular biodiversity, on public health or on social or economic objectives. The Commission should present the results of this assessment by 30 June 2021. |

Text proposed by the Commission

Amendment

(12d)

The Commission should explore the feasibility of introducing carbon-crediting schemes, including the certification of greenhouse gas removals through carbon sequestration in land use, soil and biomass in agriculture with a view to achieving the Union's climate neutrality target, as well as the feasibility of developing of a separate carbon removals market for land-based greenhouse gas sequestration. Such a framework should be based on best available science and on a system of assessment and approval by the Commission, while ensuring no negative impacts on the environment, in particular biodiversity, on public health or on social or economic objectives. The Commission should present the results of this assessment by 30 June 2021.

Amendment 31

Proposal for a regulation

Recital 12 e (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (12e) | In order to provide more clarity, a definition of natural and other carbon sinks should be presented by the Commission. |

Text proposed by the Commission

Amendment

(12e)

In order to provide more clarity, a definition of natural and other carbon sinks should be presented by the Commission.

Amendment 156

Proposal for a regulation

Recital 12 f (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (12f) | In its transition to climate neutrality, the Union should preserve the competitiveness of its industry, particularly its energy intensive industry, including by developing effective measures to tackle carbon leakage in a way compatible with WTO rules and to level the playing field between the Union and third countries to avoid unfair competition due to the non-implementation of climate policies consistent with the Paris Agreement. |

Text proposed by the Commission

Amendment

(12f)

In its transition to climate neutrality, the Union should preserve the competitiveness of its industry, particularly its energy intensive industry, including by developing effective measures to tackle carbon leakage in a way compatible with WTO rules and to level the playing field between the Union and third countries to avoid unfair competition due to the non-implementation of climate policies consistent with the Paris Agreement.

Amendment 33

Proposal for a regulation

Recital 13

| Text proposed by the Commission | Amendment |
| --- | --- |
| (13) | The Union should continue its climate action and international climate leadership after 2050, in order to protect people and the planet against the threat of dangerous climate change, in pursuit of the temperature goals set out in the Paris Agreement and following the scientific recommendations of the IPCC. |

Text proposed by the Commission

Amendment

(13)

The Union should continue its climate action and international climate leadership after 2050, in order to protect people and the planet against the threat of dangerous climate change, in pursuit of the temperature goals set out in the Paris Agreement and following the scientific recommendations of the IPCC.

| (13) | The Union should continue its climate action and international climate leadership after 2050
  , in particular by helping the most vulnerable populations, through its external action and development policy
  , in order to protect people and the planet against the threat of dangerous climate change, in pursuit of the temperature goals set out in the Paris Agreement and following the scientific recommendations of the IPCC,
  the United Nations Environment Programme (UNEP), IPBES and the European Climate Change Council (ECCC)
  . |
| --- | --- |

(13)

The Union should continue its climate action and international climate leadership after 2050
  , in particular by helping the most vulnerable populations, through its external action and development policy
  , in order to protect people and the planet against the threat of dangerous climate change, in pursuit of the temperature goals set out in the Paris Agreement and following the scientific recommendations of the IPCC,
  the United Nations Environment Programme (UNEP), IPBES and the European Climate Change Council (ECCC)
  .

Amendment 34

Proposal for a regulation

Recital 13 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (13a) | Ecosystems, people and economies in the Union will face major impacts from climate change if greenhouse gas emissions are not urgently mitigated or there is no adaptation to climate change. Adaptation to climate change would further minimise unavoidable impacts in a cost-effective manner, with considerable co-benefits from the use of nature-based solutions. |

Text proposed by the Commission

Amendment

(13a)

Ecosystems, people and economies in the Union will face major impacts from climate change if greenhouse gas emissions are not urgently mitigated or there is no adaptation to climate change. Adaptation to climate change would further minimise unavoidable impacts in a cost-effective manner, with considerable co-benefits from the use of nature-based solutions.

Amendment 35

Proposal for a regulation

Recital 13 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (13b) | The adverse effects of climate change can potentially exceed the adaptive capacities of Member States. Therefore, Member States and the Union should work together to avert, minimise and address loss and damage, as provided for in Article 8 of the Paris Agreement, including through the Warsaw International Mechanism. |

Text proposed by the Commission

Amendment

(13b)

Amendment 36

Proposal for a regulation

Recital 14

| Text proposed by the Commission | Amendment |
| --- | --- |
| (14) | Adaptation is a key component of the long-term global response to climate change. Therefore, Member States and the Union should enhance their adaptive capacity, strengthen resilience and reduce vulnerability to climate change, as provided for in Article 7 of the Paris Agreement, as well as maximise the co-benefits with other environmental policies and legislation. Member States should adopt comprehensive national adaptation strategies and plans. |

Text proposed by the Commission

Amendment

(14)

Adaptation is a key component of the long-term global response to climate change. Therefore, Member States and the Union should enhance their adaptive capacity, strengthen resilience and reduce vulnerability to climate change, as provided for in Article 7 of the Paris Agreement, as well as maximise the co-benefits with other environmental policies and legislation. Member States should adopt comprehensive national adaptation strategies and plans.

| (14) | Adaptation is a key component of the long-term global response to climate change. Therefore, Member States and the Union should enhance their adaptive capacity, strengthen resilience and reduce vulnerability to climate change, as provided for in Article 7 of the Paris Agreement, as well as maximise the co-benefits with other environmental policies and legislation. Member States should adopt comprehensive national adaptation strategies and plans
  and the Commission should help in the monitoring of progress on adaptation by developing indicators. |
| --- | --- |

(14)

Adaptation is a key component of the long-term global response to climate change. Therefore, Member States and the Union should enhance their adaptive capacity, strengthen resilience and reduce vulnerability to climate change, as provided for in Article 7 of the Paris Agreement, as well as maximise the co-benefits with other environmental policies and legislation. Member States should adopt comprehensive national adaptation strategies and plans
  and the Commission should help in the monitoring of progress on adaptation by developing indicators.

Amendment 37

Proposal for a regulation

Recital 14 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (14a) | When adopting their adaptation strategies and plans, Member States should pay special attention to the most impacted areas. In addition, it is essential to promote, conserve and restore biodiversity in order to tap its full potential for climate regulation and adaptation. Adaptation strategies and plans should therefore encourage nature-based solutions and ecosystem-based adaptation that contributes to restoring and preserving biodiversity, and take due account of the territorial specificities and local knowledge, as well as establish concrete measures to protect marine and coastal ecosystems. Furthermore, activities hindering ecosystem ability to adapt to climate change should be removed to ensure the resilience of biodiversity and ecosystem services. |

Text proposed by the Commission

Amendment

(14a)

When adopting their adaptation strategies and plans, Member States should pay special attention to the most impacted areas. In addition, it is essential to promote, conserve and restore biodiversity in order to tap its full potential for climate regulation and adaptation. Adaptation strategies and plans should therefore encourage nature-based solutions and ecosystem-based adaptation that contributes to restoring and preserving biodiversity, and take due account of the territorial specificities and local knowledge, as well as establish concrete measures to protect marine and coastal ecosystems. Furthermore, activities hindering ecosystem ability to adapt to climate change should be removed to ensure the resilience of biodiversity and ecosystem services.

Amendment 38

Proposal for a regulation

Recital 14 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (14b) | Adaptation strategies should also encourage a change of model in impacted areas, based on environmentally friendly and nature-based solutions. They should ensure sustainable livelihoods to ensure better living conditions, including sustainable and local agriculture, sustainable management of water, renewable energies, in line with the Sustainable Development Goals, in order to foster their resilience and the protection of their ecosystems. |

Text proposed by the Commission

Amendment

(14b)

Adaptation strategies should also encourage a change of model in impacted areas, based on environmentally friendly and nature-based solutions. They should ensure sustainable livelihoods to ensure better living conditions, including sustainable and local agriculture, sustainable management of water, renewable energies, in line with the Sustainable Development Goals, in order to foster their resilience and the protection of their ecosystems.

Amendment 39

Proposal for a regulation

Recital 15

| Text proposed by the Commission | Amendment |
| --- | --- |
| (15) | In taking the relevant measures at Union and national level to achieve the climate-neutrality objective, Member States and the European Parliament, the Council and the Commission should take into account the contribution of the transition to climate neutrality to the well-being of citizens, the prosperity of society and the competitiveness of the economy; energy and food security and affordability; fairness and solidarity across and within Member States considering their economic capability, national circumstances and the need for convergence over time; the need to make the transition just and socially fair; best available scientific evidence, in particular the findings reported by the IPCC; the need to integrate
  climate change related
  risks into investment and planning decisions; cost-effectiveness and technological neutrality in achieving greenhouse gas emissions reductions and removals and increasing resilience; progression over time in environmental integrity and level of ambition. |

Text proposed by the Commission

Amendment

(15)

In taking the relevant measures at Union and national level to achieve the climate-neutrality objective, Member States and the European Parliament, the Council and the Commission should take into account the contribution of the transition to climate neutrality to the well-being of citizens, the prosperity of society and the competitiveness of the economy; energy and food security and affordability; fairness and solidarity across and within Member States considering their economic capability, national circumstances and the need for convergence over time; the need to make the transition just and socially fair; best available scientific evidence, in particular the findings reported by the IPCC; the need to integrate
  climate change related
  risks into investment and planning decisions; cost-effectiveness and technological neutrality in achieving greenhouse gas emissions reductions and removals and increasing resilience; progression over time in environmental integrity and level of ambition.

| (15) | In taking the relevant measures at Union and national level to achieve the climate-neutrality objective, Member States and the European Parliament, the Council and the Commission should take into account the contribution of the transition to climate neutrality to
  the health, quality of life and
  well-being of citizens,
  social fairness,
  the prosperity of society and the competitiveness of the economy
  , including fair competition and a level playing field on a global level. Member States and the European Parliament, the Council and the Commission should also take into account any red tape or other legislative barriers that possibly hinder economic actors or the sectors from fulfilling the climate goals; the social, economic and environmental costs of inaction or insufficient action; the fact that women are disproportionately impacted by climate change and the need to strengthen gender equality; the need to promote sustainable ways of living; maximising energy and resource efficiency,
  energy and food security and affordability
  whilst particularly taking into account the need to combat energy poverty
  ; fairness and solidarity
  and a level playing field
  across and within Member States considering their economic capability
  and
  national circumstances
  and different starting points,
  and the need for convergence over time; the need to make the transition just and socially fair
  in accordance with 2015 International Labour Organization's guidelines for a just transition towards environmentally sustainable economies and societies for all
  ; best available scientific evidence, in particular the findings reported by the IPCC
  and the IPBES
  ; the need to integrate
  climate-change-related
  risks
  and climate change vulnerability and adaptation assessments
  into investment and planning decisions
  while ensuring that Union policies are climate proof
  ; cost-effectiveness and technological neutrality in achieving greenhouse gas emissions reductions and removals and increasing resilience
  on the basis of equity
  ;
  the need to manage, preserve and restore marine and terrestrial ecosystems and biodiversity; the current infrastructure status and possible needs for updating of and investments in Union infrastructure;
  progression over time in environmental integrity and level of ambition
  ; the capacity of the various stakeholders to invest in the transition in a socially viable manner; and the potential risk of carbon leakage and measures to prevent it. |
| --- | --- |

(15)

In taking the relevant measures at Union and national level to achieve the climate-neutrality objective, Member States and the European Parliament, the Council and the Commission should take into account the contribution of the transition to climate neutrality to
  the health, quality of life and
  well-being of citizens,
  social fairness,
  the prosperity of society and the competitiveness of the economy
  , including fair competition and a level playing field on a global level. Member States and the European Parliament, the Council and the Commission should also take into account any red tape or other legislative barriers that possibly hinder economic actors or the sectors from fulfilling the climate goals; the social, economic and environmental costs of inaction or insufficient action; the fact that women are disproportionately impacted by climate change and the need to strengthen gender equality; the need to promote sustainable ways of living; maximising energy and resource efficiency,
  energy and food security and affordability
  whilst particularly taking into account the need to combat energy poverty
  ; fairness and solidarity
  and a level playing field
  across and within Member States considering their economic capability
  and
  national circumstances
  and different starting points,
  and the need for convergence over time; the need to make the transition just and socially fair
  in accordance with 2015 International Labour Organization's guidelines for a just transition towards environmentally sustainable economies and societies for all
  ; best available scientific evidence, in particular the findings reported by the IPCC
  and the IPBES
  ; the need to integrate
  climate-change-related
  risks
  and climate change vulnerability and adaptation assessments
  into investment and planning decisions
  while ensuring that Union policies are climate proof
  ; cost-effectiveness and technological neutrality in achieving greenhouse gas emissions reductions and removals and increasing resilience
  on the basis of equity
  ;
  the need to manage, preserve and restore marine and terrestrial ecosystems and biodiversity; the current infrastructure status and possible needs for updating of and investments in Union infrastructure;
  progression over time in environmental integrity and level of ambition
  ; the capacity of the various stakeholders to invest in the transition in a socially viable manner; and the potential risk of carbon leakage and measures to prevent it.

Amendment 40

Proposal for a regulation

Recital 16

| Text proposed by the Commission | Amendment |
| --- | --- |
| (16) | The transition to climate neutrality requires
  changes
  across the entire policy spectrum and a collective effort of all sectors of the economy and society, as illustrated by the Commission in its Communication ‘The European Green Deal’. The European Council, in its Conclusions of 12 December 2019, stated that all relevant Union legislation and policies need to be consistent with, and contribute to, the fulfilment of the climate-neutrality objective while respecting a level playing field, and invited the Commission to examine whether this requires an adjustment of the existing rules. |

Text proposed by the Commission

Amendment

(16)

The transition to climate neutrality requires
  changes
  across the entire policy spectrum and a collective effort of all sectors of the economy and society, as illustrated by the Commission in its Communication ‘The European Green Deal’. The European Council, in its Conclusions of 12 December 2019, stated that all relevant Union legislation and policies need to be consistent with, and contribute to, the fulfilment of the climate-neutrality objective while respecting a level playing field, and invited the Commission to examine whether this requires an adjustment of the existing rules.

| (16) | The transition to climate neutrality requires
  a transformative change
  across the entire policy spectrum,
  ambitious and sustained financing
  and a collective effort of all sectors of the economy and society,
  including aviation and maritime transport
  , as illustrated by the Commission in its Communication ‘The European Green Deal’. The European Council, in its Conclusions of 12 December 2019, stated that all relevant Union legislation and policies need to be consistent with, and contribute to, the fulfilment of the climate-neutrality objective while respecting a level playing field, and invited the Commission to examine whether this requires an adjustment of the existing rules. |
| --- | --- |

(16)

The transition to climate neutrality requires
  a transformative change
  across the entire policy spectrum,
  ambitious and sustained financing
  and a collective effort of all sectors of the economy and society,
  including aviation and maritime transport
  , as illustrated by the Commission in its Communication ‘The European Green Deal’. The European Council, in its Conclusions of 12 December 2019, stated that all relevant Union legislation and policies need to be consistent with, and contribute to, the fulfilment of the climate-neutrality objective while respecting a level playing field, and invited the Commission to examine whether this requires an adjustment of the existing rules.

Amendment 41

Proposal for a regulation

Recital 16 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (16a) | All key sectors of the economy will have to work together to deliver on climate neutrality, namely energy, industry, transport, the heating and cooling and building sector, agriculture, waste and land use, land-use change and forestry. All sectors, whether or not covered by the system for greenhouse gas emission allowance trading within the Union (EU ETS) should undertake comparable efforts to deliver on the Union’s climate-neutrality objective. In order to provide predictability, confidence and involvement of all economic actors, including businesses, workers, investors and consumers, the Commission should establish guidance for the sectors of the economy that could contribute most to achieve the climate-neutrality objective. The guidance should contain indicative trajectories for greenhouse gases reduction in those sectors at Union level. That would provide them with the certainty to take the appropriate measures, to plan the necessary investments and therefore would assist in staying on the path of the transition. At the same time, it would also serve as a mechanism of sectors’ engagement into the pursuit of climate-neutrality solutions. |

Text proposed by the Commission

Amendment

(16a)

All key sectors of the economy will have to work together to deliver on climate neutrality, namely energy, industry, transport, the heating and cooling and building sector, agriculture, waste and land use, land-use change and forestry. All sectors, whether or not covered by the system for greenhouse gas emission allowance trading within the Union (EU ETS) should undertake comparable efforts to deliver on the Union’s climate-neutrality objective. In order to provide predictability, confidence and involvement of all economic actors, including businesses, workers, investors and consumers, the Commission should establish guidance for the sectors of the economy that could contribute most to achieve the climate-neutrality objective. The guidance should contain indicative trajectories for greenhouse gases reduction in those sectors at Union level. That would provide them with the certainty to take the appropriate measures, to plan the necessary investments and therefore would assist in staying on the path of the transition. At the same time, it would also serve as a mechanism of sectors’ engagement into the pursuit of climate-neutrality solutions.

Amendment 42

Proposal for a regulation

Recital 16 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (16b) | The transition to climate neutrality requires all sectors to do their part. The Union should continue its efforts to strengthen and promote the circular economy and further support renewable solutions and alternatives that can substitute fossil-fuel based products and materials. Further use of renewable products and material will have a large climate mitigation benefit and benefits many different sectors. |

Text proposed by the Commission

Amendment

(16b)

The transition to climate neutrality requires all sectors to do their part. The Union should continue its efforts to strengthen and promote the circular economy and further support renewable solutions and alternatives that can substitute fossil-fuel based products and materials. Further use of renewable products and material will have a large climate mitigation benefit and benefits many different sectors.

Amendment 43

Proposal for a regulation

Recital 16 c (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (16c) | Taking into account the risk of carbon leakage, the transition to and the continued work to maintain climate neutrality should be a true, green transition, lead to an actual decrease in emissions, and not create a false Union-based result, given that production and emissions have relocated outside the Union. To achieve that, Union policies should be designed to minimise the risk of carbon leakage and explore technological solutions. |

Text proposed by the Commission

Amendment

(16c)

Taking into account the risk of carbon leakage, the transition to and the continued work to maintain climate neutrality should be a true, green transition, lead to an actual decrease in emissions, and not create a false Union-based result, given that production and emissions have relocated outside the Union. To achieve that, Union policies should be designed to minimise the risk of carbon leakage and explore technological solutions.

Amendment 44

Proposal for a regulation

Recital 16 d (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (16d) | The transition towards climate neutrality must not exclude the agricultural sector, the only productive sector capable of storing carbon dioxide. Long-term storage is guaranteed in particular by forestry, long-duration pastures and multiannual crops in general. |

Text proposed by the Commission

Amendment

(16d)

The transition towards climate neutrality must not exclude the agricultural sector, the only productive sector capable of storing carbon dioxide. Long-term storage is guaranteed in particular by forestry, long-duration pastures and multiannual crops in general.

Amendment 45

Proposal for a regulation

Recital 16 e (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (16e) | In order to achieve climate neutrality, the special role of agriculture and forestry has to be taken into account, as only a vital and productive agriculture and forestry is able to supply the population with high-quality and safe food in sufficient quantities and at affordable prices, as well as with renewable raw materials for all purposes of the bio-economy. |

Text proposed by the Commission

Amendment

(16e)

In order to achieve climate neutrality, the special role of agriculture and forestry has to be taken into account, as only a vital and productive agriculture and forestry is able to supply the population with high-quality and safe food in sufficient quantities and at affordable prices, as well as with renewable raw materials for all purposes of the bio-economy.

Amendment 46

Proposal for a regulation

Recital 16 f (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (16f) | Forests play a crucial role in the transition to climate neutrality. Sustainable and close-to-nature forest management is crucial for continuous greenhouse gas absorption from the atmosphere and also allows to provide renewable and climate-friendly raw materials for wood products, which store carbon and can act as a substitute to fossil-based materials and fuels. The ‘triple role’ of forests (sink, storage and substitution) contributes to the reduction of carbon emissions release to the atmosphere, while ensuring that forests continue to grow and provide many other services. |

Text proposed by the Commission

Amendment

(16f)

Forests play a crucial role in the transition to climate neutrality. Sustainable and close-to-nature forest management is crucial for continuous greenhouse gas absorption from the atmosphere and also allows to provide renewable and climate-friendly raw materials for wood products, which store carbon and can act as a substitute to fossil-based materials and fuels. The ‘triple role’ of forests (sink, storage and substitution) contributes to the reduction of carbon emissions release to the atmosphere, while ensuring that forests continue to grow and provide many other services.

Amendment 47

Proposal for a regulation

Recital 16 g (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (16 g) | Union law should promote afforestation and sustainable forest management in Member States that do not have significant forest resources, by means of sharing best practice and industrial know-how. |

Text proposed by the Commission

Amendment

(16 g)

Union law should promote afforestation and sustainable forest management in Member States that do not have significant forest resources, by means of sharing best practice and industrial know-how.

Amendment 48

Proposal for a regulation

Recital 17

| Text proposed by the Commission | Amendment |
| --- | --- |
| (17) | As announced
  in its Communication ‘The European Green Deal’,
  the Commission assessed
  the Union’s 2030
  target for greenhouse gas emission reduction, in its Communication ‘Stepping up Europe’s 2030 climate ambition — Investing in a climate-neutral future for the benefit of our people’

   (9)

  , on the basis of a comprehensive impact assessment and taking into account its analysis of the integrated national energy and climate plans submitted to the Commission in accordance with Regulation (EU) 2018/1999 of the European Parliament and of the Council

   (10)

  . In light of the 2050
  climate-neutrality
  objective, by 2030 greenhouse gas emissions should be reduced and removals enhanced, so that net greenhouse gas emissions, that is emissions after deduction of removals, are reduced economy-wide and domestically by at least 55 % by 2030
  compared
  to
  1990 levels.
  This new 2030 Union climate target is a subsequent target for the purposes of point (11) of Article 2 of Regulation (EU) 2018/1999, and therefore replaces the 2030 Union-wide target for greenhouse gas emissions set out in that point. In addition
  , the Commission should, by 30 June 2021, assess how the
  relevant
  Union legislation implementing
  the 2030 climate
  target would need to be amended
  in order to achieve such net emission reductions
  . |

Text proposed by the Commission

Amendment

(17)

As announced
  in its Communication ‘The European Green Deal’,
  the Commission assessed
  the Union’s 2030
  target for greenhouse gas emission reduction, in its Communication ‘Stepping up Europe’s 2030 climate ambition — Investing in a climate-neutral future for the benefit of our people’

   (9)

  , on the basis of a comprehensive impact assessment and taking into account its analysis of the integrated national energy and climate plans submitted to the Commission in accordance with Regulation (EU) 2018/1999 of the European Parliament and of the Council

   (10)

  . In light of the 2050
  climate-neutrality
  objective, by 2030 greenhouse gas emissions should be reduced and removals enhanced, so that net greenhouse gas emissions, that is emissions after deduction of removals, are reduced economy-wide and domestically by at least 55 % by 2030
  compared
  to
  1990 levels.
  This new 2030 Union climate target is a subsequent target for the purposes of point (11) of Article 2 of Regulation (EU) 2018/1999, and therefore replaces the 2030 Union-wide target for greenhouse gas emissions set out in that point. In addition
  , the Commission should, by 30 June 2021, assess how the
  relevant
  Union legislation implementing
  the 2030 climate
  target would need to be amended
  in order to achieve such net emission reductions
  .

| (17) | The Commission,
  in its Communication ‘The European Green Deal’,
  announced its intention to assess and make proposals for increasing
  the Union’s
  greenhouse gas emission reduction target for
  2030
  to ensure its consistency with the climate-neutrality objective for 2050. In that Communication, the Commission underlined that all Union policies should contribute to the climate-neutrality objective and that all sectors should play their part. Given the Union goal of reaching
  climate neutrality
  by 2050 at the latest, it is essential that climate action is further strengthened and particularly that the Union 2030 climate target is raised to a reduction in emissions of 60 %
  compared
  with
  1990 levels.
  Consequently
  , the Commission should, by 30 June 2021, assess how the Union legislation implementing
  that higher
  target
  and other relevant Union legislation contributing to reducing greenhouse gas emissions and promoting the circular economy
  would need to be amended
  accordingly. |
| --- | --- |

(17)

The Commission,
  in its Communication ‘The European Green Deal’,
  announced its intention to assess and make proposals for increasing
  the Union’s
  greenhouse gas emission reduction target for
  2030
  to ensure its consistency with the climate-neutrality objective for 2050. In that Communication, the Commission underlined that all Union policies should contribute to the climate-neutrality objective and that all sectors should play their part. Given the Union goal of reaching
  climate neutrality
  by 2050 at the latest, it is essential that climate action is further strengthened and particularly that the Union 2030 climate target is raised to a reduction in emissions of 60 %
  compared
  with
  1990 levels.
  Consequently
  , the Commission should, by 30 June 2021, assess how the Union legislation implementing
  that higher
  target
  and other relevant Union legislation contributing to reducing greenhouse gas emissions and promoting the circular economy
  would need to be amended
  accordingly.

Amendment 49

Proposal for a regulation

Recital 17 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (17a) | To ensure that the Union and all Member States remain on track to reach the climate-neutrality objective, and to ensure the predictability and confidence for all economic actors, including businesses, workers and trade unions, investors and consumers, the Commission should explore options for setting a Union 2040 climate target and make legislative proposals to the European Parliament and the Council where appropriate. |

Text proposed by the Commission

Amendment

(17a)

To ensure that the Union and all Member States remain on track to reach the climate-neutrality objective, and to ensure the predictability and confidence for all economic actors, including businesses, workers and trade unions, investors and consumers, the Commission should explore options for setting a Union 2040 climate target and make legislative proposals to the European Parliament and the Council where appropriate.

Amendment 50

Proposal for a regulation

Recital 17 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (17b) | By 30 June 2021, the Commission should review and propose to revise where necessary all policy and instruments relevant to the achievement of the Union's 2030 climate target and to achieve the climate neutrality objective set out in Article 2(1). In that regard, the Union’s increased targets require the EU ETS to be fit for purpose. The Commission should therefore rapidly review Directive 2003/87/EC of the European Parliament and of the Council

   (1a)

  and strengthen the Innovation Fund thereunder to further create financial incentives for new technology, boosting growth, competitiveness, support for clean technologies, while ensuring that the strengthening of the Innovation Fund contributes to the process of a Just Transition. |

Text proposed by the Commission

Amendment

(17b)

By 30 June 2021, the Commission should review and propose to revise where necessary all policy and instruments relevant to the achievement of the Union's 2030 climate target and to achieve the climate neutrality objective set out in Article 2(1). In that regard, the Union’s increased targets require the EU ETS to be fit for purpose. The Commission should therefore rapidly review Directive 2003/87/EC of the European Parliament and of the Council

   (1a)

  and strengthen the Innovation Fund thereunder to further create financial incentives for new technology, boosting growth, competitiveness, support for clean technologies, while ensuring that the strengthening of the Innovation Fund contributes to the process of a Just Transition.

Amendment 51

Proposal for a regulation

Recital 17 c (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (17c) | To signal the importance and weight of climate policy and to give political actors the necessary information in the legislative process, the Commission should assess all future legislation through a new lens, in which climate and the consequences on climate are included, and determine the effect any proposed legislation will have on the climate and environment at the same level that it assesses legal basis, subsidiarity and proportionality. |

Text proposed by the Commission

Amendment

(17c)

To signal the importance and weight of climate policy and to give political actors the necessary information in the legislative process, the Commission should assess all future legislation through a new lens, in which climate and the consequences on climate are included, and determine the effect any proposed legislation will have on the climate and environment at the same level that it assesses legal basis, subsidiarity and proportionality.

Amendment 52

Proposal for a regulation

Recital 17 d (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (17d) | The Commission should further make sure that the industry is sufficiently enabled to undergo the significant transition towards climate neutrality and the highly ambitious targets for 2030 and 2040 through a thorough regulatory framework and financial resources commensurate with the challenges. That regulatory and financial framework should be regularly assessed, and adapted if needed, to prevent carbon leakage, industrial closures, job losses and unfair international competition. |

Text proposed by the Commission

Amendment

(17d)

The Commission should further make sure that the industry is sufficiently enabled to undergo the significant transition towards climate neutrality and the highly ambitious targets for 2030 and 2040 through a thorough regulatory framework and financial resources commensurate with the challenges. That regulatory and financial framework should be regularly assessed, and adapted if needed, to prevent carbon leakage, industrial closures, job losses and unfair international competition.

Amendment 53

Proposal for a regulation

Recital 17 e (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (17e) | The Commission should assess employment needs, including education and training requirements, the development of the economy and the establishment of a fair and just transition. |

Text proposed by the Commission

Amendment

(17e)

The Commission should assess employment needs, including education and training requirements, the development of the economy and the establishment of a fair and just transition.

Amendment 157

Proposal for a regulation

Recital 17 f (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (17f) | In order for the Union to reach the climate-neutrality objective by 2050 at the latest and the intermediate climate targets for 2030 and 2040, the Union institutions and all Member States should, as early as possible and by 2025 at the latest, have phased out all direct and indirect fossil subsidies. The phasing out of those subsidies should not impact on efforts to combat energy poverty and should take into account the bridging role of natural gas in the transition to a carbon-neutral economy. |

Text proposed by the Commission

Amendment

(17f)

In order for the Union to reach the climate-neutrality objective by 2050 at the latest and the intermediate climate targets for 2030 and 2040, the Union institutions and all Member States should, as early as possible and by 2025 at the latest, have phased out all direct and indirect fossil subsidies. The phasing out of those subsidies should not impact on efforts to combat energy poverty and should take into account the bridging role of natural gas in the transition to a carbon-neutral economy.

Amendment 55

Proposal for a regulation

Recital 18

| Text proposed by the Commission | Amendment |
| --- | --- |
| (18) | To ensure the Union and
  the
  Member States remain on track to achieve the
  climate-neutrality objective
  and progress on adaptation, the Commission should regularly assess progress. Should the collective progress made by Member States towards the achievement of the
  climate-neutrality objective
  or on adaptation be insufficient or Union measures inconsistent with
  the climate-neutrality objective
  or inadequate to enhance adaptive capacity, strengthen resilience or reduce vulnerability, the Commission should take the necessary measures in accordance with the Treaties. The Commission should also regularly assess relevant national measures, and issue recommendations where it finds that a Member State’s measures are inconsistent with the
  climate-neutrality objective
  or inadequate to enhance adaptive capacity, strengthen resilience and reduce vulnerability to climate change. |

Text proposed by the Commission

Amendment

(18)

To ensure the Union and
  the
  Member States remain on track to achieve the
  climate-neutrality objective
  and progress on adaptation, the Commission should regularly assess progress. Should the collective progress made by Member States towards the achievement of the
  climate-neutrality objective
  or on adaptation be insufficient or Union measures inconsistent with
  the climate-neutrality objective
  or inadequate to enhance adaptive capacity, strengthen resilience or reduce vulnerability, the Commission should take the necessary measures in accordance with the Treaties. The Commission should also regularly assess relevant national measures, and issue recommendations where it finds that a Member State’s measures are inconsistent with the
  climate-neutrality objective
  or inadequate to enhance adaptive capacity, strengthen resilience and reduce vulnerability to climate change.

| (18) | To ensure the Union and
  all
  Member States remain on track to achieve the
  Union climate objectives
  and progress on adaptation, the Commission should regularly assess progress. Should the
  progress made by each Member State and the
  collective progress made by Member States towards the achievement of the
  Union climate objectives
  or on adaptation be insufficient or
  any
  Union measures inconsistent with
  the Union climate objectives
  or inadequate to enhance adaptive capacity, strengthen resilience or reduce vulnerability, the Commission should take the necessary measures in accordance with the Treaties. The Commission should also regularly assess relevant national measures, and issue recommendations where it finds that a Member State’s measures are inconsistent with the
  Union climate objectives
  or inadequate to enhance adaptive capacity, strengthen resilience and reduce vulnerability to climate change.
  The Commission should make public that assessment and its results at the time of its adoption. |
| --- | --- |

(18)

To ensure the Union and
  all
  Member States remain on track to achieve the
  Union climate objectives
  and progress on adaptation, the Commission should regularly assess progress. Should the
  progress made by each Member State and the
  collective progress made by Member States towards the achievement of the
  Union climate objectives
  or on adaptation be insufficient or
  any
  Union measures inconsistent with
  the Union climate objectives
  or inadequate to enhance adaptive capacity, strengthen resilience or reduce vulnerability, the Commission should take the necessary measures in accordance with the Treaties. The Commission should also regularly assess relevant national measures, and issue recommendations where it finds that a Member State’s measures are inconsistent with the
  Union climate objectives
  or inadequate to enhance adaptive capacity, strengthen resilience and reduce vulnerability to climate change.
  The Commission should make public that assessment and its results at the time of its adoption.

Amendment 56

Proposal for a regulation

Recital 18 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (18a) | Reaching climate neutrality is only possible if all Member States share the burden and commit fully to transitioning to climate neutrality. Each Member State has an obligation to meet the interim and end targets and if the Commission considers that these obligations have not been met, the Commission should be empowered to take measures against Member States. The measures should be proportionate, appropriate and in accordance with the Treaties. |

Text proposed by the Commission

Amendment

(18a)

Reaching climate neutrality is only possible if all Member States share the burden and commit fully to transitioning to climate neutrality. Each Member State has an obligation to meet the interim and end targets and if the Commission considers that these obligations have not been met, the Commission should be empowered to take measures against Member States. The measures should be proportionate, appropriate and in accordance with the Treaties.

Amendment 57

Proposal for a regulation

Recital 18 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (18b) | Scientific expertise and the best available, up-to-date evidence, together with information on climate change that is both factual and transparent is imperative and needs to underpin the Union's climate action and efforts to reach climate neutrality by 2050 at the latest. National independent climate advisory bodies play an important role in informing the public and contributing to the policy debate around climate change in those Member States where they exist. Therefore, Member States that have not already done so, are encouraged to establish a national climate advisory body, consisting of scientists selected on the basis of their expertise in the climate change field and other disciplines relevant for the achievement of the objectives of this Regulation. In cooperation with these national climate advisory bodies, the Commission should set up an independent scientific advisory panel on climate change, the European Climate Change Council (ECCC), which should complement the work of the European Environment Agency (EEA), and the Union's existing research institutions and agencies. Its missions should avoid any overlapping with the mission of the IPCC at international level. The ECCC should be composed of a scientific committee, consisting of selected senior experts, and supported by a management board that meets twice a year. The purpose of the ECCC is to provide Union institutions annually with assessments of the consistency of the Union measures to reduce greenhouse gas emissions with the Union’s climate objectives and its international climate commitments. The ECCC should also assess actions and pathways to reduce greenhouse gas emissions and to identify carbon sequestration potential. |

Text proposed by the Commission

Amendment

(18b)

Scientific expertise and the best available, up-to-date evidence, together with information on climate change that is both factual and transparent is imperative and needs to underpin the Union's climate action and efforts to reach climate neutrality by 2050 at the latest. National independent climate advisory bodies play an important role in informing the public and contributing to the policy debate around climate change in those Member States where they exist. Therefore, Member States that have not already done so, are encouraged to establish a national climate advisory body, consisting of scientists selected on the basis of their expertise in the climate change field and other disciplines relevant for the achievement of the objectives of this Regulation. In cooperation with these national climate advisory bodies, the Commission should set up an independent scientific advisory panel on climate change, the European Climate Change Council (ECCC), which should complement the work of the European Environment Agency (EEA), and the Union's existing research institutions and agencies. Its missions should avoid any overlapping with the mission of the IPCC at international level. The ECCC should be composed of a scientific committee, consisting of selected senior experts, and supported by a management board that meets twice a year. The purpose of the ECCC is to provide Union institutions annually with assessments of the consistency of the Union measures to reduce greenhouse gas emissions with the Union’s climate objectives and its international climate commitments. The ECCC should also assess actions and pathways to reduce greenhouse gas emissions and to identify carbon sequestration potential.

Amendment 58

Proposal for a regulation

Recital 19

| Text proposed by the Commission | Amendment |
| --- | --- |
| (19) | The Commission should ensure a robust and objective assessment based on the most up to date scientific, technical and socio-economic findings, and representative of a broad range of independent expertise, and base its assessment on relevant information including information submitted and reported by Member States, reports of the European Environment Agency, best available scientific evidence, including the reports of the IPCC. Given that the Commission has committed to exploring how the EU taxonomy can be used in the context of the European Green Deal by the public sector, this should include information on environmentally sustainable investment, by the Union and Member States, consistent with Regulation (EU) 2020/... [Taxonomy Regulation] when such information becomes available. The Commission should use European statistics and data where available and seek expert scrutiny. The European Environment Agency should assist the Commission, as appropriate and in accordance with its annual work programme. |

Text proposed by the Commission

Amendment

(19)

The Commission should ensure a robust and objective assessment based on the most up to date scientific, technical and socio-economic findings, and representative of a broad range of independent expertise, and base its assessment on relevant information including information submitted and reported by Member States, reports of the European Environment Agency, best available scientific evidence, including the reports of the IPCC. Given that the Commission has committed to exploring how the EU taxonomy can be used in the context of the European Green Deal by the public sector, this should include information on environmentally sustainable investment, by the Union and Member States, consistent with Regulation (EU) 2020/... [Taxonomy Regulation] when such information becomes available. The Commission should use European statistics and data where available and seek expert scrutiny. The European Environment Agency should assist the Commission, as appropriate and in accordance with its annual work programme.

| (19) | The Commission should ensure a robust and objective assessment based on the most up to date scientific, technical and socio-economic findings, and representative of a broad range of independent expertise, and base its assessment on relevant information including information submitted and reported by Member States, reports of the European Environment Agency, best available scientific evidence, including the reports of the IPCC
  , UNEP, IPBES, ECCC and, where possible, Member States national independent climate advisory bodies
  . Given that the Commission has committed to exploring how the EU taxonomy can be used in the context of the European Green Deal by the public sector, this should include information on environmentally sustainable investment, by the Union and Member States, consistent with Regulation (EU) 2020/... [Taxonomy Regulation] when such information becomes available. The Commission should use European statistics and data where available and seek expert scrutiny. The European Environment Agency should assist the Commission, as appropriate and in accordance with its annual work programme. |
| --- | --- |

(19)

The Commission should ensure a robust and objective assessment based on the most up to date scientific, technical and socio-economic findings, and representative of a broad range of independent expertise, and base its assessment on relevant information including information submitted and reported by Member States, reports of the European Environment Agency, best available scientific evidence, including the reports of the IPCC
  , UNEP, IPBES, ECCC and, where possible, Member States national independent climate advisory bodies
  . Given that the Commission has committed to exploring how the EU taxonomy can be used in the context of the European Green Deal by the public sector, this should include information on environmentally sustainable investment, by the Union and Member States, consistent with Regulation (EU) 2020/... [Taxonomy Regulation] when such information becomes available. The Commission should use European statistics and data where available and seek expert scrutiny. The European Environment Agency should assist the Commission, as appropriate and in accordance with its annual work programme.

Amendment 59

Proposal for a regulation

Recital 20

| Text proposed by the Commission | Amendment |
| --- | --- |
| (20) | As citizens
  and
  communities have a powerful role to play in driving the transformation towards climate neutrality forward, strong public and social engagement on climate action should be facilitated. The Commission should therefore engage with all parts of society to enable and empower them to take action towards a climate-neutral and climate-resilient society, including through launching a European Climate Pact. |

Text proposed by the Commission

Amendment

(20)

As citizens
  and
  communities have a powerful role to play in driving the transformation towards climate neutrality forward, strong public and social engagement on climate action should be facilitated. The Commission should therefore engage with all parts of society to enable and empower them to take action towards a climate-neutral and climate-resilient society, including through launching a European Climate Pact.

| (20) | As citizens, communities
  and regions
  have a powerful role to play in driving the transformation towards climate neutrality forward, strong public and social engagement on climate action should be
  both encouraged and
  facilitated
  at local, regional and national level
  . The Commission
  and Member States
  should therefore engage with all parts of society
  in a fully transparent manner
  to enable and empower them to take action towards a 
  socially just, gender-balanced
  , climate-neutral and climate-resilient society, including through launching a European Climate Pact. |
| --- | --- |

(20)

As citizens, communities
  and regions
  have a powerful role to play in driving the transformation towards climate neutrality forward, strong public and social engagement on climate action should be
  both encouraged and
  facilitated
  at local, regional and national level
  . The Commission
  and Member States
  should therefore engage with all parts of society
  in a fully transparent manner
  to enable and empower them to take action towards a 
  socially just, gender-balanced
  , climate-neutral and climate-resilient society, including through launching a European Climate Pact.

Amendment 60

Proposal for a regulation

Recital 21

| Text proposed by the Commission | Amendment |
| --- | --- |
| (21) | In order to provide predictability and confidence for all economic actors, including businesses, workers, investors and consumers, to ensure that the transition towards climate neutrality is irreversible, to ensure gradual reduction over time and to assist in the assessment of the consistency of measures and progress with the climate-neutrality objective, 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 to set out
  a trajectory for achieving net zero greenhouse gas emissions in the Union by 2050
  . It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making37 . In particular, to ensure equal participation in the preparation of delegated acts,
  the European Parliament and the Council
  receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts
  . |

Text proposed by the Commission

Amendment

(21)

In order to provide predictability and confidence for all economic actors, including businesses, workers, investors and consumers, to ensure that the transition towards climate neutrality is irreversible, to ensure gradual reduction over time and to assist in the assessment of the consistency of measures and progress with the climate-neutrality objective, 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 to set out
  a trajectory for achieving net zero greenhouse gas emissions in the Union by 2050
  . It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making37 . In particular, to ensure equal participation in the preparation of delegated acts,
  the European Parliament and the Council
  receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts
  .

| (21) | In order to provide predictability and confidence for all economic actors, including businesses,
  SMEs
  , workers
  and trade unions
  , investors and consumers, to ensure that the transition towards climate neutrality is irreversible, to ensure gradual reduction over time and to assist in the assessment of the consistency of measures and progress with the climate-neutrality objective, the
  Commission should assess the options for establishing
  a trajectory for achieving net zero greenhouse gas emissions in the Union by 2050
  and should make legislative proposals to
  the European Parliament and
  to
  the Council
  if appropriate. |
| --- | --- |

(21)

In order to provide predictability and confidence for all economic actors, including businesses,
  SMEs
  , workers
  and trade unions
  , investors and consumers, to ensure that the transition towards climate neutrality is irreversible, to ensure gradual reduction over time and to assist in the assessment of the consistency of measures and progress with the climate-neutrality objective, the
  Commission should assess the options for establishing
  a trajectory for achieving net zero greenhouse gas emissions in the Union by 2050
  and should make legislative proposals to
  the European Parliament and
  to
  the Council
  if appropriate.

Amendment 61

Proposal for a regulation

Recital 22

| Text proposed by the Commission | Amendment |
| --- | --- |
| (22) | In line with the Commission’s commitment to the principles on Better Law-Making, coherence of the Union instruments as regards greenhouse gas emissions reductions should be sought. The system of measuring the progress towards the achievement of the
  climate-neutrality objective
  as well as the consistency of measures taken with that objective should build upon and be consistent with the governance framework laid down in Regulation (EU) 2018/1999. In particular, the system of reporting on a regular basis and the sequencing of the Commission’s assessment and actions on the basis of the reporting should be aligned to the requirements to submit information and provide reports by Member States laid down in Regulation (EU) 2018/1999. Regulation (EU) 2018/1999 should therefore be amended in order to include the climate-neutrality objective in the relevant provisions. |

Text proposed by the Commission

Amendment

(22)

In line with the Commission’s commitment to the principles on Better Law-Making, coherence of the Union instruments as regards greenhouse gas emissions reductions should be sought. The system of measuring the progress towards the achievement of the
  climate-neutrality objective
  as well as the consistency of measures taken with that objective should build upon and be consistent with the governance framework laid down in Regulation (EU) 2018/1999. In particular, the system of reporting on a regular basis and the sequencing of the Commission’s assessment and actions on the basis of the reporting should be aligned to the requirements to submit information and provide reports by Member States laid down in Regulation (EU) 2018/1999. Regulation (EU) 2018/1999 should therefore be amended in order to include the climate-neutrality objective in the relevant provisions.

| (22) | In line with the Commission’s commitment to the principles on Better Law-Making, coherence of the Union instruments as regards greenhouse gas emissions reductions should be sought. The system of measuring the progress towards the achievement of the
  Union climate objectives
  as well as the consistency of measures taken with that objective should build upon and be consistent with the governance framework laid down in Regulation (EU) 2018/1999. In particular, the system of reporting on a regular basis and the sequencing of the Commission’s assessment and actions on the basis of the reporting should be aligned to the requirements to submit information and provide reports by Member States laid down in Regulation (EU) 2018/1999. Regulation (EU) 2018/1999 should therefore be amended in order to include the climate-neutrality objective in the relevant provisions. |
| --- | --- |

(22)

In line with the Commission’s commitment to the principles on Better Law-Making, coherence of the Union instruments as regards greenhouse gas emissions reductions should be sought. The system of measuring the progress towards the achievement of the
  Union climate objectives
  as well as the consistency of measures taken with that objective should build upon and be consistent with the governance framework laid down in Regulation (EU) 2018/1999. In particular, the system of reporting on a regular basis and the sequencing of the Commission’s assessment and actions on the basis of the reporting should be aligned to the requirements to submit information and provide reports by Member States laid down in Regulation (EU) 2018/1999. Regulation (EU) 2018/1999 should therefore be amended in order to include the climate-neutrality objective in the relevant provisions.

Amendment 62

Proposal for a regulation

Recital 23

| Text proposed by the Commission | Amendment |
| --- | --- |
| (23) | Climate change is by definition a trans-boundary challenge and a coordinated action at Union level is needed to effectively supplement and reinforce national policies. Since the objectives of this Regulation, namely to achieve climate neutrality in the Union by 2050, cannot be sufficiently achieved by the Member States alone, but can rather, by reason of the scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives, |

Text proposed by the Commission

Amendment

(23)

Climate change is by definition a trans-boundary challenge and a coordinated action at Union level is needed to effectively supplement and reinforce national policies. Since the objectives of this Regulation, namely to achieve climate neutrality in the Union by 2050, cannot be sufficiently achieved by the Member States alone, but can rather, by reason of the scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives,

| (23) | Climate change is by definition a trans-boundary challenge and a coordinated action at Union level is needed to effectively supplement and reinforce national policies. Since the objectives of this Regulation, namely to achieve climate neutrality in the Union
  and in all Member States
  by 2050
  at the latest
  , cannot be sufficiently achieved by the Member States alone, but can rather, by reason of the scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives. |
| --- | --- |

(23)

Climate change is by definition a trans-boundary challenge and a coordinated action at Union level is needed to effectively supplement and reinforce national policies. Since the objectives of this Regulation, namely to achieve climate neutrality in the Union
  and in all Member States
  by 2050
  at the latest
  , cannot be sufficiently achieved by the Member States alone, but can rather, by reason of the scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives.

Amendment 63

Proposal for a regulation

Recital 23 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23a) | The Union is currently responsible for 10 % of the world’s emission of greenhouse gases. The climate-neutrality objective is limited to emissions from Union production. A coherent climate policy also involves controlling emissions from consumption and energy and resource imports. |

Text proposed by the Commission

Amendment

(23a)

The Union is currently responsible for 10 % of the world’s emission of greenhouse gases. The climate-neutrality objective is limited to emissions from Union production. A coherent climate policy also involves controlling emissions from consumption and energy and resource imports.

Amendment 64

Proposal for a regulation

Recital 23 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23b) | The climate footprint of the Union’s consumption is an essential tool to develop in order to improve the overall consistency of the Union’s climate objectives. |

Text proposed by the Commission

Amendment

(23b)

The climate footprint of the Union’s consumption is an essential tool to develop in order to improve the overall consistency of the Union’s climate objectives.

Amendment 65

Proposal for a regulation

Recital 23 c (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23c) | A Union climate policy that is fully efficient should address carbon leakage and develop the appropriate tools, such as a carbon border adjustment mechanism, to cope with it and protect Union standards and the frontrunners of Union industries. |

Text proposed by the Commission

Amendment

(23c)

A Union climate policy that is fully efficient should address carbon leakage and develop the appropriate tools, such as a carbon border adjustment mechanism, to cope with it and protect Union standards and the frontrunners of Union industries.

Amendment 66

Proposal for a regulation

Recital 23 d (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23d) | Imports of agricultural products and foodstuffs from third countries have risen continuously in recent years. That trend dictates that an assessment should be made as to which products imported from third countries are to be subject to requirements comparable to those applicable to Union farmers where the origins of these requirements lie within the objectives of Union policies to reduce the impact of climate change. The Commission should submit a report and communication on that topic to the European Parliament and the Council by 30 June 2021. |

Text proposed by the Commission

Amendment

(23d)

Imports of agricultural products and foodstuffs from third countries have risen continuously in recent years. That trend dictates that an assessment should be made as to which products imported from third countries are to be subject to requirements comparable to those applicable to Union farmers where the origins of these requirements lie within the objectives of Union policies to reduce the impact of climate change. The Commission should submit a report and communication on that topic to the European Parliament and the Council by 30 June 2021.

Amendment 67

Proposal for a regulation

Recital 23 e (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23e) | In its Communication ‘The European Green Deal’, the Commission highlighted the need to accelerate the shift to sustainable and smart mobility as a priority policy towards climate neutrality. To ensure the transition towards sustainable and smart mobility, the Commission has indicated that it will adopt a comprehensive strategy on sustainable and smart mobility in 2020 with ambitious measures aimed at significantly reducing CO2 and pollutant emissions across all modes of transport, including by boosting the uptake of clean vehicles and alternative fuels for road, maritime and aviation, increasing the share of more sustainable transport modes such as rail and inland waterways, and improving efficiency across the whole transport system, incentivising more sustainable consumer choices and low-emission practices, and investing in low- and zero-emissions solutions, including infrastructure. |

Text proposed by the Commission

Amendment

(23e)

In its Communication ‘The European Green Deal’, the Commission highlighted the need to accelerate the shift to sustainable and smart mobility as a priority policy towards climate neutrality. To ensure the transition towards sustainable and smart mobility, the Commission has indicated that it will adopt a comprehensive strategy on sustainable and smart mobility in 2020 with ambitious measures aimed at significantly reducing CO2 and pollutant emissions across all modes of transport, including by boosting the uptake of clean vehicles and alternative fuels for road, maritime and aviation, increasing the share of more sustainable transport modes such as rail and inland waterways, and improving efficiency across the whole transport system, incentivising more sustainable consumer choices and low-emission practices, and investing in low- and zero-emissions solutions, including infrastructure.

Amendment 68

Proposal for a regulation

Recital 23 f (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23f) | Transport infrastructure could play a key role in accelerating the transformation to sustainable and smart mobility by catering for a modal shift to more sustainable transport modes, in particular for freight transport. At the same time, climate-change events, such as rising water levels, extreme weather conditions, drought and rising temperatures, can result in infrastructure damages, operational disruptions, pressures on supply chain capacity and efficiency, and consequently have negative implication for European mobility. Therefore, the completion of the Trans European Transport Networks (TEN-T) core network by 2030 and the completion of the complementary TEN-T network by 2040 is of the utmost importance, while taking into account the obligations set out in Union law on addressing the greenhouse gas emissions of projects during their whole life cycle. Furthermore, the Commission should consider proposing a legislative framework to increase the risk-management, resilience and climate adaptation of transport infrastructure. |

Text proposed by the Commission

Amendment

(23f)

Transport infrastructure could play a key role in accelerating the transformation to sustainable and smart mobility by catering for a modal shift to more sustainable transport modes, in particular for freight transport. At the same time, climate-change events, such as rising water levels, extreme weather conditions, drought and rising temperatures, can result in infrastructure damages, operational disruptions, pressures on supply chain capacity and efficiency, and consequently have negative implication for European mobility. Therefore, the completion of the Trans European Transport Networks (TEN-T) core network by 2030 and the completion of the complementary TEN-T network by 2040 is of the utmost importance, while taking into account the obligations set out in Union law on addressing the greenhouse gas emissions of projects during their whole life cycle. Furthermore, the Commission should consider proposing a legislative framework to increase the risk-management, resilience and climate adaptation of transport infrastructure.

Amendment 69

Proposal for a regulation

Recital 23 g (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23 g) | The connectivity of the European railway network, in particular international connections, to make passenger transport by rail more attractive for medium- and long-distance travels and improvements to the capacity of railways and inland waterways for freight, should be at the core of the Union’s legislative action. |

Text proposed by the Commission

Amendment

(23 g)

The connectivity of the European railway network, in particular international connections, to make passenger transport by rail more attractive for medium- and long-distance travels and improvements to the capacity of railways and inland waterways for freight, should be at the core of the Union’s legislative action.

Amendment 70

Proposal for a regulation

Recital 23 h (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23h) | It is important to ensure that there are sufficient investments in developing appropriate infrastructure for zero-emission mobility, including intermodal platforms and reinforcing the role of the Connecting Europe Facility (CEF) in supporting the transition towards smart, sustainable and safe mobility in the Union. |

Text proposed by the Commission

Amendment

(23h)

It is important to ensure that there are sufficient investments in developing appropriate infrastructure for zero-emission mobility, including intermodal platforms and reinforcing the role of the Connecting Europe Facility (CEF) in supporting the transition towards smart, sustainable and safe mobility in the Union.

Amendment 71

Proposal for a regulation

Recital 23 i (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23i) | In line with the Union's effort to shift road transport to rail in order to put the most CO2-efficient mode of transport in the lead while considering the upcoming European Year of rail in 2021, a particular legislative emphasis should be put on creating a true Single European Railway Area by removing all administrative burdens and protectionist national laws by 2024. |

Text proposed by the Commission

Amendment

(23i)

In line with the Union's effort to shift road transport to rail in order to put the most CO2-efficient mode of transport in the lead while considering the upcoming European Year of rail in 2021, a particular legislative emphasis should be put on creating a true Single European Railway Area by removing all administrative burdens and protectionist national laws by 2024.

Amendment 72

Proposal for a regulation

Recital 23 j (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23j) | In order to the achieve the objective of climate neutrality by 2050, the Commission should also strengthen the specific legislation on CO2 emissions performance standards for cars, vans and trucks, provide specific measures to pave the way for the electrification of road transport, and take initiatives to ramp up the production and deployment of sustainable alternative fuels. |

Text proposed by the Commission

Amendment

(23j)

In order to the achieve the objective of climate neutrality by 2050, the Commission should also strengthen the specific legislation on CO2 emissions performance standards for cars, vans and trucks, provide specific measures to pave the way for the electrification of road transport, and take initiatives to ramp up the production and deployment of sustainable alternative fuels.

Amendment 73

Proposal for a regulation

Recital 23 k (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23k) | In its resolution of 28 November 2019 on the 2019 UN Climate Change Conference in Madrid, Spain (COP 25), the European Parliament noted that the current global targets and measures envisaged by the International Maritime Organisation and the International Civil Aviation Organisation, even if implemented in full, would fall short of the necessary emission reductions, and that significant further action at European and global level consistent with the economy-wide objective of net-zero greenhouse gas emissions is needed. |

Text proposed by the Commission

Amendment

(23k)

In its resolution of 28 November 2019 on the 2019 UN Climate Change Conference in Madrid, Spain (COP 25), the European Parliament noted that the current global targets and measures envisaged by the International Maritime Organisation and the International Civil Aviation Organisation, even if implemented in full, would fall short of the necessary emission reductions, and that significant further action at European and global level consistent with the economy-wide objective of net-zero greenhouse gas emissions is needed.

Amendment 158

Proposal for a regulation

Recital 23 l (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (23l) | The Commission should intensify its efforts towards a well-functioning internal energy market as it is an important component of the energy transition and will help to make it financially viable. The development of smart and digital electricity and gas networks should therefore be given top priority in the multiannual financial framework MFF. COVID-19 recovery programmes should also support the development of transnational energy grids. Effective and swift decision-making procedures are needed to support transnational grid developments, notably in future-oriented and hydrogen-compatible gas infrastructure. |

Text proposed by the Commission

Amendment

(23l)

The Commission should intensify its efforts towards a well-functioning internal energy market as it is an important component of the energy transition and will help to make it financially viable. The development of smart and digital electricity and gas networks should therefore be given top priority in the multiannual financial framework MFF. COVID-19 recovery programmes should also support the development of transnational energy grids. Effective and swift decision-making procedures are needed to support transnational grid developments, notably in future-oriented and hydrogen-compatible gas infrastructure.

Amendment 74

Proposal for a regulation

Article 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| Article 1 | Article 1 |
| Subject matter and scope | Subject matter and scope |
| This Regulation establishes a framework for the irreversible
  and gradual
  reduction of greenhouse gas emissions and enhancement of removals by natural or other sinks in the Union. | This Regulation establishes a framework for the irreversible,
  predictable and swift
  reduction of greenhouse gas emissions and enhancement of removals by natural or other sinks in the Union
  in line with the Union’s climate and environmental objectives
  . |
| This Regulation sets out a binding objective of climate neutrality in the Union by 2050 in pursuit of the long-term temperature goal set out in Article 2 of the Paris Agreement, and provides a framework for achieving progress in pursuit of the global adaptation goal established in Article 7 of the Paris Agreement.
  It also sets out a binding Union net greenhouse gas emission reduction target for 2030. | This Regulation sets out a binding objective of climate neutrality in the Union by 2050
  at the latest
  in pursuit of the long-term temperature goal set out in Article 2 of the Paris Agreement, and provides a framework for achieving progress in pursuit of the global adaptation goal established in Article 7 of the Paris Agreement. |
| This Regulation applies to anthropogenic emissions and removals by natural or other sinks of the greenhouse gases listed in Part 2 of Annex V to Regulation (EU) 2018/1999. | This Regulation applies to anthropogenic emissions and removals by natural or other sinks of the greenhouse gases listed in Part 2 of Annex V to Regulation (EU) 2018/1999. |

Text proposed by the Commission

Amendment

Article 1

Article 1

Subject matter and scope

Subject matter and scope

This Regulation establishes a framework for the irreversible
  and gradual
  reduction of greenhouse gas emissions and enhancement of removals by natural or other sinks in the Union.

This Regulation establishes a framework for the irreversible,
  predictable and swift
  reduction of greenhouse gas emissions and enhancement of removals by natural or other sinks in the Union
  in line with the Union’s climate and environmental objectives
  .

This Regulation sets out a binding objective of climate neutrality in the Union by 2050 in pursuit of the long-term temperature goal set out in Article 2 of the Paris Agreement, and provides a framework for achieving progress in pursuit of the global adaptation goal established in Article 7 of the Paris Agreement.
  It also sets out a binding Union net greenhouse gas emission reduction target for 2030.

This Regulation sets out a binding objective of climate neutrality in the Union by 2050
  at the latest
  in pursuit of the long-term temperature goal set out in Article 2 of the Paris Agreement, and provides a framework for achieving progress in pursuit of the global adaptation goal established in Article 7 of the Paris Agreement.

This Regulation applies to anthropogenic emissions and removals by natural or other sinks of the greenhouse gases listed in Part 2 of Annex V to Regulation (EU) 2018/1999.

This Regulation applies to anthropogenic emissions and removals by natural or other sinks of the greenhouse gases listed in Part 2 of Annex V to Regulation (EU) 2018/1999.

Amendments 75 and 159

Proposal for a regulation

Article 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| Article 2 | Article 2 |
| Climate-neutrality objective | Climate-neutrality objective |
| 1.   Union-wide emissions and removals of greenhouse gases regulated in Union law shall be balanced at the latest by 2050, thus reducing emissions
  to
  net zero by that date. | 1.   Union-wide
  anthropogenic
  emissions
  by sources
  and removals
  by sinks
  of greenhouse gases regulated in Union law shall be balanced
  in the Union
  at the latest by 2050, thus
  achieving
  net zero
  greenhouse gas emissions
  by that date.
  Each Member State shall achieve net zero greenhouse gas emissions by 2050 at the latest. |
| 2.   The relevant Union institutions and the Member States shall take the necessary measures at Union and national level respectively, to enable the collective achievement of the climate-neutrality objective set out in paragraph 1, taking into account the importance of promoting fairness
  and
  solidarity among Member States. | 2.   The relevant Union institutions and the Member States shall take the necessary measures
  based on the best available, up-to-date science and provide support
  at Union and
  at
  national
  , regional and local
  level respectively, to enable the achievement of the climate-neutrality objective
  in the Union and in all Member States as
  set out in paragraph 1, taking into account the importance of promoting fairness and solidarity
  and a just transition
  among Member States
  , social and economic cohesion, the protection of vulnerable Union citizens and the importance of managing, restoring, protecting and enhancing marine and terrestrial biodiversity, ecosystems and carbon sinks
  . |
| | 2a.
     
  As from 1 January 2051, removals of greenhouse gases by sinks shall exceed anthropogenic emissions in the Union and all Member States. |
| | 2b.
     
  By 31 May 2023, the Commission shall, following a detailed impact assessment and taking into account the greenhouse gas budget referred to in Article 3(2a), explore options for setting a Union 2040 target for greenhouse gas emissions reductions compared to 1990, and shall present legislative proposals, where appropriate, to the European Parliament and to the Council. |
| | When exploring options for the 2040 target for climate, the Commission shall consult with the ECCC and take into account the criteria set out in Article 3(3). |
| | 2c.
     
  No later than 12 months after the adoption of the 2040 target for climate, the Commission shall assess how all of the Union legislation relevant for the fulfilment of that target would need to be amended and shall consider taking the necessary measures, including the adoption of legislative proposals, in accordance with the Treaties. |
| | 2d.
     
  By December 2020, the Commission shall prepare a plan setting out the measures to be taken at Union level in order to ensure that the appropriate resources are mobilised to enable the necessary investments to achieve a climate-neutral Union economy. The plan shall review current compensation mechanisms for lower income Member States, taking into account increased burden associated with elevated climate ambitions, support from Recovery and Resilience facility, InvestEU programmes and the Just Transition Fund. |

Text proposed by the Commission

Amendment

Article 2

Article 2

Climate-neutrality objective

Climate-neutrality objective

1.   Union-wide emissions and removals of greenhouse gases regulated in Union law shall be balanced at the latest by 2050, thus reducing emissions
  to
  net zero by that date.

1.   Union-wide
  anthropogenic
  emissions
  by sources
  and removals
  by sinks
  of greenhouse gases regulated in Union law shall be balanced
  in the Union
  at the latest by 2050, thus
  achieving
  net zero
  greenhouse gas emissions
  by that date.
  Each Member State shall achieve net zero greenhouse gas emissions by 2050 at the latest.

2.   The relevant Union institutions and the Member States shall take the necessary measures at Union and national level respectively, to enable the collective achievement of the climate-neutrality objective set out in paragraph 1, taking into account the importance of promoting fairness
  and
  solidarity among Member States.

2.   The relevant Union institutions and the Member States shall take the necessary measures
  based on the best available, up-to-date science and provide support
  at Union and
  at
  national
  , regional and local
  level respectively, to enable the achievement of the climate-neutrality objective
  in the Union and in all Member States as
  set out in paragraph 1, taking into account the importance of promoting fairness and solidarity
  and a just transition
  among Member States
  , social and economic cohesion, the protection of vulnerable Union citizens and the importance of managing, restoring, protecting and enhancing marine and terrestrial biodiversity, ecosystems and carbon sinks
  .

2a.
     
  As from 1 January 2051, removals of greenhouse gases by sinks shall exceed anthropogenic emissions in the Union and all Member States.

2b.
     
  By 31 May 2023, the Commission shall, following a detailed impact assessment and taking into account the greenhouse gas budget referred to in Article 3(2a), explore options for setting a Union 2040 target for greenhouse gas emissions reductions compared to 1990, and shall present legislative proposals, where appropriate, to the European Parliament and to the Council.

When exploring options for the 2040 target for climate, the Commission shall consult with the ECCC and take into account the criteria set out in Article 3(3).

When exploring options for the 2040 target for climate, the Commission shall consult with the ECCC and take into account the criteria set out in Article 3(3).

2c.
     
  No later than 12 months after the adoption of the 2040 target for climate, the Commission shall assess how all of the Union legislation relevant for the fulfilment of that target would need to be amended and shall consider taking the necessary measures, including the adoption of legislative proposals, in accordance with the Treaties.

2d.
     
  By December 2020, the Commission shall prepare a plan setting out the measures to be taken at Union level in order to ensure that the appropriate resources are mobilised to enable the necessary investments to achieve a climate-neutral Union economy. The plan shall review current compensation mechanisms for lower income Member States, taking into account increased burden associated with elevated climate ambitions, support from Recovery and Resilience facility, InvestEU programmes and the Just Transition Fund.

Amendments 100, 148 and 150

Amendments 100, 148 and 150

Proposal for a regulation

Proposal for a regulation

Article 2 a

Article 2 a

| Text proposed by the Commission | Amendment |
| --- | --- |
| Article 2a | Article 2a |
| 2030 climate target

  1.   
  In order to reach the climate-neutrality objective set out in Article 2(1), the binding Union
  2030
  climate
  target shall be
  a
  reduction of
  net greenhouse gas emissions (emissions after deduction of removals) by at least 55 %
  compared to 1990
  levels by 2030
  . | 2030 climate target

  1.   
  The Union’s
  2030 target
  for climate
  shall be
  an emissions
  reduction of
  60 %
  compared to 1990. |
| 2.   By 30 June 2021, the Commission shall
  review relevant
  Union legislation in order to enable the achievement of the target
  set out
  in paragraph 1 of this Article and the climate-neutrality objective set out in Article 2(1) and
  consider taking
  the necessary measures, including the adoption of legislative proposals, in accordance with the Treaties. | 2.   By 30 June 2021, the Commission shall
  assess how all of the
  Union legislation
  relevant for the fulfilment of the Union’s 2030 target for climate and other relevant Union legislation promoting the circular economy and contributing to reduce greenhouse gas emissions would need to be amended
  in order to enable the achievement of the
  emission reductions
  target
  referred to
  in paragraph 1 of this Article and
  to achieve
  the climate-neutrality-objective set out in Article 2(1), and
  take
  the necessary measures, including the adoption of legislative proposals, in accordance with the Treaties.
  The Commission shall in particular evaluate the options for aligning emissions from all sectors, including aviation and maritime transport, with the 2030 target for climate and the 2050 climate-neutrality objective in order to reduce these emissions to net zero by 2050 at the latest and shall present legislative proposals, where appropriate, to the European Parliament and to the Council. The Commission shall mobilise adequate resources for all investments necessary to reach the targets referred to in this paragraph. |
| | 2a.
     
  The Commission shall base its proposals referred to in paragraph 2 on a comprehensive impact assessment covering environmental, economic and social effects, reflecting the post-COVID-19 economic situation and paying special attention to the sectoral reduction and removal potentials, and the impact of Brexit on Union emissions. The Commission shall assess the cumulative impact of amending the Union legislation implementing the Union’s 2030 target, as set out in paragraph 1, on different industry sectors. |
| | 2b.
     
  When making its proposals referred to in paragraph 2 for the revision of relevant 2030 climate and energy legislation, the Commission shall ensure a cost-efficient and fair balance between the ETS and the effort sharing sector, and between national targets in the effort sharing sector, and shall in any case not simply assume an additional effort for each Member State that corresponds to 15 % more ambition. The Commission shall assess the impacts of the introduction of more European measures that could complement existing measures, such as market-based measures that include a strong solidarity mechanism. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 2a

Article 2a

2030 climate target

1.   
  In order to reach the climate-neutrality objective set out in Article 2(1), the binding Union
  2030
  climate
  target shall be
  a
  reduction of
  net greenhouse gas emissions (emissions after deduction of removals) by at least 55 %
  compared to 1990
  levels by 2030
  .

2030 climate target

1.   
  The Union’s
  2030 target
  for climate
  shall be
  an emissions
  reduction of
  60 %
  compared to 1990.

2.   By 30 June 2021, the Commission shall
  review relevant
  Union legislation in order to enable the achievement of the target
  set out
  in paragraph 1 of this Article and the climate-neutrality objective set out in Article 2(1) and
  consider taking
  the necessary measures, including the adoption of legislative proposals, in accordance with the Treaties.

2.   By 30 June 2021, the Commission shall
  assess how all of the
  Union legislation
  relevant for the fulfilment of the Union’s 2030 target for climate and other relevant Union legislation promoting the circular economy and contributing to reduce greenhouse gas emissions would need to be amended
  in order to enable the achievement of the
  emission reductions
  target
  referred to
  in paragraph 1 of this Article and
  to achieve
  the climate-neutrality-objective set out in Article 2(1), and
  take
  the necessary measures, including the adoption of legislative proposals, in accordance with the Treaties.
  The Commission shall in particular evaluate the options for aligning emissions from all sectors, including aviation and maritime transport, with the 2030 target for climate and the 2050 climate-neutrality objective in order to reduce these emissions to net zero by 2050 at the latest and shall present legislative proposals, where appropriate, to the European Parliament and to the Council. The Commission shall mobilise adequate resources for all investments necessary to reach the targets referred to in this paragraph.

2a.
     
  The Commission shall base its proposals referred to in paragraph 2 on a comprehensive impact assessment covering environmental, economic and social effects, reflecting the post-COVID-19 economic situation and paying special attention to the sectoral reduction and removal potentials, and the impact of Brexit on Union emissions. The Commission shall assess the cumulative impact of amending the Union legislation implementing the Union’s 2030 target, as set out in paragraph 1, on different industry sectors.

2b.
     
  When making its proposals referred to in paragraph 2 for the revision of relevant 2030 climate and energy legislation, the Commission shall ensure a cost-efficient and fair balance between the ETS and the effort sharing sector, and between national targets in the effort sharing sector, and shall in any case not simply assume an additional effort for each Member State that corresponds to 15 % more ambition. The Commission shall assess the impacts of the introduction of more European measures that could complement existing measures, such as market-based measures that include a strong solidarity mechanism.

Amendment 76

Amendment 76

Proposal for a regulation

Proposal for a regulation

Article 2 b (new)

Article 2 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Article 2b |
| | Member State climate advisory bodies and European Climate Change Council |
| | 1.   
  By 30 June 2021, all Member States shall notify the Commission of their national independent climate advisory body, responsible for, but not limited to, providing scientific expert advice on national climate policy. If no such body exists, Member States shall be encouraged to establish such a body. |
| | To support the scientific independence and autonomy of the national independent climate advisory body, Member States shall be encouraged to take appropriate measures enabling the body to operate in a fully transparent manner with its findings being made publicly available and notify these measures to the Commission. |
| | 2.   
  By 30 June 2022, the Commission shall, in cooperation with these national climate advisory bodies, set up the European Climate Change Council (ECCC), as a permanent, independent, inter-disciplinary scientific advisory panel on climate change, which shall be guided by the latest scientific findings as expressed by the IPCC. The ECCC shall complement the work of the European Environment Agency (EEA), and the Union's existing research institutions and agencies. In order to avoid any duplication of work, the EEA shall serve as secretariat of the ECCC, while preserving the budgetary and administrative independence of the ECCC. |
| | 3.   
  Members of the ECCC shall serve for a term of five years, renewable once. The ECCC shall be composed of a scientific committee of maximum of 15 senior experts ensuring a full range of expertise required for the activities listed in paragraph 4. The scientific committee shall be independently responsible for drawing up the scientific advice of the ECCC. |
| | 4.   
  The activities of the scientific committee shall include: |
| | (a) | assessing the consistency of existing and proposed Union trajectories, greenhouse gas budget and climate targets against the Union’s and international climate commitments; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 2b

Article 2b

Member State climate advisory bodies and European Climate Change Council

Member State climate advisory bodies and European Climate Change Council

1.   
  By 30 June 2021, all Member States shall notify the Commission of their national independent climate advisory body, responsible for, but not limited to, providing scientific expert advice on national climate policy. If no such body exists, Member States shall be encouraged to establish such a body.

To support the scientific independence and autonomy of the national independent climate advisory body, Member States shall be encouraged to take appropriate measures enabling the body to operate in a fully transparent manner with its findings being made publicly available and notify these measures to the Commission.

To support the scientific independence and autonomy of the national independent climate advisory body, Member States shall be encouraged to take appropriate measures enabling the body to operate in a fully transparent manner with its findings being made publicly available and notify these measures to the Commission.

2.   
  By 30 June 2022, the Commission shall, in cooperation with these national climate advisory bodies, set up the European Climate Change Council (ECCC), as a permanent, independent, inter-disciplinary scientific advisory panel on climate change, which shall be guided by the latest scientific findings as expressed by the IPCC. The ECCC shall complement the work of the European Environment Agency (EEA), and the Union's existing research institutions and agencies. In order to avoid any duplication of work, the EEA shall serve as secretariat of the ECCC, while preserving the budgetary and administrative independence of the ECCC.

3.   
  Members of the ECCC shall serve for a term of five years, renewable once. The ECCC shall be composed of a scientific committee of maximum of 15 senior experts ensuring a full range of expertise required for the activities listed in paragraph 4. The scientific committee shall be independently responsible for drawing up the scientific advice of the ECCC.

4.   
  The activities of the scientific committee shall include:

(a)

assessing the consistency of existing and proposed Union trajectories, greenhouse gas budget and climate targets against the Union’s and international climate commitments;

assessing the consistency of existing and proposed Union trajectories, greenhouse gas budget and climate targets against the Union’s and international climate commitments;

| (b) | assessing the likelihood of staying within the Union greenhouse gas budget and achieving climate neutrality under existing and planned measures; |
| --- | --- |

(b)

assessing the likelihood of staying within the Union greenhouse gas budget and achieving climate neutrality under existing and planned measures;

assessing the likelihood of staying within the Union greenhouse gas budget and achieving climate neutrality under existing and planned measures;

| (c) | assessing the consistency of Union measures to reduce greenhouse gas emissions with the objectives set out in Article 2; |
| --- | --- |

(c)

assessing the consistency of Union measures to reduce greenhouse gas emissions with the objectives set out in Article 2;

assessing the consistency of Union measures to reduce greenhouse gas emissions with the objectives set out in Article 2;

| (d) | identifying actions and opportunities to reduce greenhouse gas emissions and increase the carbon sequestration potential; and |
| --- | --- |

(d)

identifying actions and opportunities to reduce greenhouse gas emissions and increase the carbon sequestration potential; and

identifying actions and opportunities to reduce greenhouse gas emissions and increase the carbon sequestration potential; and

| (e) | identifying consequences of inaction or insufficient action. |
| --- | --- |

(e)

identifying consequences of inaction or insufficient action.

identifying consequences of inaction or insufficient action.

5.   
  In carrying out the activities referred to in paragraph 4, the ECCC shall ensure the proper consultation of the national independent climate advisory bodies.

6.   
  A management board shall support the work of the scientific committee. The management board shall consist of one member from each national independent climate advisory body notified to the Commission as set out in paragraph 1, two representatives selected by the Commission, two representatives selected by the European Parliament, and the chair of the secretariat who shall be appointed by the EEA.

The management board shall meet two times a year and is responsible for the set-up and monitoring of the activities of the ECCC. The European Parliament and the Council shall appoint the management board by common accord, on the basis of a proposal by the Commission. The chair of the management board is elected among its members.

The management board shall meet two times a year and is responsible for the set-up and monitoring of the activities of the ECCC. The European Parliament and the Council shall appoint the management board by common accord, on the basis of a proposal by the Commission. The chair of the management board is elected among its members.

The responsibilities of the management board are:

The responsibilities of the management board are:

| (a) | adoption of the annual work programme on a proposal by the scientific committee, and ensuring its consistency with the mandate of the ECCC; |
| --- | --- |

(a)

adoption of the annual work programme on a proposal by the scientific committee, and ensuring its consistency with the mandate of the ECCC;

adoption of the annual work programme on a proposal by the scientific committee, and ensuring its consistency with the mandate of the ECCC;

| (b) | appointment of the members of the scientific committee, ensuring the composition of the scientific committee provides the range of expertise required for the activities of the work programme; |
| --- | --- |

(b)

appointment of the members of the scientific committee, ensuring the composition of the scientific committee provides the range of expertise required for the activities of the work programme;

appointment of the members of the scientific committee, ensuring the composition of the scientific committee provides the range of expertise required for the activities of the work programme;

| (c) | approval of the ECCC’s budget; and |
| --- | --- |

(c)

approval of the ECCC’s budget; and

approval of the ECCC’s budget; and

| (d) | coordination with national climate advisory bodies. |
| --- | --- |

(d)

coordination with national climate advisory bodies.

coordination with national climate advisory bodies.

7.   
  Members of the scientific committee shall be designated on a personal basis by the management board. The chair of the scientific committee is elected amongst its members. The scientific committee shall adopt by a two-thirds majority its rules for procedure which shall ensure its full scientific independence and autonomy.

Candidates for membership of the scientific committee shall be identified through an open evaluation process. The professional experience of applicants for the scientific committee meeting the eligibility requirements set out in the call shall be subject to a comparative evaluation based on the following selection criteria:

Candidates for membership of the scientific committee shall be identified through an open evaluation process. The professional experience of applicants for the scientific committee meeting the eligibility requirements set out in the call shall be subject to a comparative evaluation based on the following selection criteria:

| (a) | scientific excellence; |
| --- | --- |

(a)

scientific excellence;

scientific excellence;

| (b) | experience in carrying out scientific assessments and/or providing scientific advice in the fields of expertise; |
| --- | --- |

(b)

experience in carrying out scientific assessments and/or providing scientific advice in the fields of expertise;

experience in carrying out scientific assessments and/or providing scientific advice in the fields of expertise;

| (c) | broad expertise in the field of climate and environment sciences or other scientific fields relevant for the achievement of the Union's climate objectives; |
| --- | --- |

(c)

broad expertise in the field of climate and environment sciences or other scientific fields relevant for the achievement of the Union's climate objectives;

broad expertise in the field of climate and environment sciences or other scientific fields relevant for the achievement of the Union's climate objectives;

| (d) | experience in peer reviewing scientific work; |
| --- | --- |

(d)

experience in peer reviewing scientific work;

experience in peer reviewing scientific work;

| (e) | professional experience in an inter-disciplinary environment in an international context. |
| --- | --- |

(e)

professional experience in an inter-disciplinary environment in an international context.

professional experience in an inter-disciplinary environment in an international context.

The composition of the scientific committee shall ensure a balance of gender, disciplinary and sectoral expertise as well as regional distribution.

The composition of the scientific committee shall ensure a balance of gender, disciplinary and sectoral expertise as well as regional distribution.

8.   
  The ECCC shall, on an annual basis, report its findings under paragraph 4 to the Commission, the European Parliament and the Council. Where necessary the ECCC shall make recommendations to the Commission to ensure the achievement of the objectives of this Regulation. The ECCC shall ensure that it follows a fully transparent process and that its reports are made available to the public. The Commission shall consider the reports and any recommendations and issue a formal response to the ECCC three months after their reception, at the latest. The response to these reports and recommendations shall be made available to the public.

Amendments 77, 123 and 145

Amendments 77, 123 and 145

Proposal for a regulation

Proposal for a regulation

Article 3

Article 3

| Text proposed by the Commission | Amendment |
| --- | --- |
| Article 3 | Article 3 |
| Trajectory for achieving climate neutrality | Trajectory for achieving climate neutrality |
| 1.   The Commission
  is empowered to adopt delegated acts in accordance with Article 9 to supplement this Regulation by setting out
  a trajectory at Union level
  to achieve the climate-neutrality
  objective set out in Article 2(1)
  until 2050
  . At the latest within six months after each global stocktake referred to in Article 14 of the Paris Agreement,
  the Commission shall
  review the trajectory. | 1.   
  By 31 May 2023,
  the Commission
  shall assess the options for establishing an indicative
  trajectory at Union level
  to achieve the
  objective set out in Article 2(1)
  starting from the Union 2030 target for climate referred to in Article 2a(1) and taking into account the intermediate binding 2040 target for climate referred to in Article 2(2b) and shall make, if appropriate, a legislative proposal to this effect
  . |
| | 1a.
     
  Once the trajectory referred to in paragraph 1 is established, the Commission shall review the trajectory no later than
  six months after each global stocktake referred to in Article 14 of the Paris Agreement
  , starting with the global stocktake in 2028
  .
  The Commission shall make a legislative proposal to adjust the trajectory where it considers such an adjustment appropriate as a result of the review. |
| 2.   
  The
  trajectory
  shall start from the Union’s 2030 climate target set out in Article 2a(1). | 2.   
  When making legislative proposals for setting a
  trajectory
  in accordance with paragraph 1, the Commission shall take into account the Union greenhouse gas budget setting out the total remaining quantity of greenhouse gas emissions as CO2 equivalent that could be emitted until 2050 at the latest without putting at risk the Union’s commitments under the Paris Agreement.. |
| | 2a.
     
  The Commission shall set out the Union greenhouse gas budget in a report and shall submit this report to the Parliament and the Council by 31 December 2021. The Commission shall make that report and its underpinning methodology publicly available |
| 3.   When setting
  a
  trajectory in accordance with
  paragraph
  1, the Commission shall
  consider
  the following: | 3.   When
  making legislative proposals for
  setting
  or adjusting the
  trajectory in accordance with
  paragraphs
  1
  and 1a respectively
  , the Commission shall
  take into account
  the following
  criteria
  : |
| | (-a) | the best available and most recent scientific evidence, including the latest reports of the IPCC, IPBES, ECCC and, where possible, Member State independent climate advisory bodies; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 3

Article 3

Trajectory for achieving climate neutrality

Trajectory for achieving climate neutrality

1.   The Commission
  is empowered to adopt delegated acts in accordance with Article 9 to supplement this Regulation by setting out
  a trajectory at Union level
  to achieve the climate-neutrality
  objective set out in Article 2(1)
  until 2050
  . At the latest within six months after each global stocktake referred to in Article 14 of the Paris Agreement,
  the Commission shall
  review the trajectory.

1.   
  By 31 May 2023,
  the Commission
  shall assess the options for establishing an indicative
  trajectory at Union level
  to achieve the
  objective set out in Article 2(1)
  starting from the Union 2030 target for climate referred to in Article 2a(1) and taking into account the intermediate binding 2040 target for climate referred to in Article 2(2b) and shall make, if appropriate, a legislative proposal to this effect
  .

1a.
     
  Once the trajectory referred to in paragraph 1 is established, the Commission shall review the trajectory no later than
  six months after each global stocktake referred to in Article 14 of the Paris Agreement
  , starting with the global stocktake in 2028
  .
  The Commission shall make a legislative proposal to adjust the trajectory where it considers such an adjustment appropriate as a result of the review.

2.   
  The
  trajectory
  shall start from the Union’s 2030 climate target set out in Article 2a(1).

2.   
  When making legislative proposals for setting a
  trajectory
  in accordance with paragraph 1, the Commission shall take into account the Union greenhouse gas budget setting out the total remaining quantity of greenhouse gas emissions as CO2 equivalent that could be emitted until 2050 at the latest without putting at risk the Union’s commitments under the Paris Agreement..

2a.
     
  The Commission shall set out the Union greenhouse gas budget in a report and shall submit this report to the Parliament and the Council by 31 December 2021. The Commission shall make that report and its underpinning methodology publicly available

3.   When setting
  a
  trajectory in accordance with
  paragraph
  1, the Commission shall
  consider
  the following:

3.   When
  making legislative proposals for
  setting
  or adjusting the
  trajectory in accordance with
  paragraphs
  1
  and 1a respectively
  , the Commission shall
  take into account
  the following
  criteria
  :

(-a)

(-a)

the best available and most recent scientific evidence, including the latest reports of the IPCC, IPBES, ECCC and, where possible, Member State independent climate advisory bodies;

the best available and most recent scientific evidence, including the latest reports of the IPCC, IPBES, ECCC and, where possible, Member State independent climate advisory bodies;

| (-aa) | the social, economic and environmental costs of inaction or insufficient action; |
| --- | --- |

(-aa)

(-aa)

the social, economic and environmental costs of inaction or insufficient action;

the social, economic and environmental costs of inaction or insufficient action;

| (-ab) | the need to ensure a just and socially fair transition for all; |
| --- | --- |

(-ab)

(-ab)

the need to ensure a just and socially fair transition for all;

the need to ensure a just and socially fair transition for all;

| (a) | cost-effectiveness and economic efficiency; |
| --- | --- |

(a)

cost-effectiveness and economic efficiency;

cost-effectiveness and economic efficiency;

| (b) | competiveness of the Union’s economy; |
| --- | --- |

(b)

competiveness of the Union’s economy;

| (b) | competitiveness of the Union’s economy
  , in particular SMEs and sectors most exposed to carbon leakage
  ; |
| --- | --- |

(b)

competitiveness of the Union’s economy
  , in particular SMEs and sectors most exposed to carbon leakage
  ;

, in particular SMEs and sectors most exposed to carbon leakage

| (ba) | the carbon footprint of end products and consumption in the Union; |
| --- | --- |

(ba)

the carbon footprint of end products and consumption in the Union;

the carbon footprint of end products and consumption in the Union;

| (c) | best available
  technology |
| --- | --- |

(c)

best available
  technology

technology

| (c) | best available,
  cost effective, safe and scalable technologies, respecting the concept of technological neutrality and avoiding possible lock in effects; |
| --- | --- |

(c)

best available,
  cost effective, safe and scalable technologies, respecting the concept of technological neutrality and avoiding possible lock in effects;

cost effective, safe and scalable technologies, respecting the concept of technological neutrality and avoiding possible lock in effects;

| (d) | energy efficiency, energy affordability and security of supply; |
| --- | --- |

(d)

energy efficiency, energy affordability and security of supply;

| (d) | energy efficiency
  and the energy efficiency first principle,
  energy affordability,
  reduction of energy poverty
  and security of supply; |
| --- | --- |

(d)

energy efficiency
  and the energy efficiency first principle,
  energy affordability,
  reduction of energy poverty
  and security of supply;

and the energy efficiency first principle,

reduction of energy poverty

| (da) | the need to phase out fossil fuels and ensure their substitution by sustainably produced renewable energy, materials and products; |
| --- | --- |

(da)

the need to phase out fossil fuels and ensure their substitution by sustainably produced renewable energy, materials and products;

the need to phase out fossil fuels and ensure their substitution by sustainably produced renewable energy, materials and products;

| (e) | fairness and solidarity between and within Member States; |
| --- | --- |

(e)

fairness and solidarity between and within Member States;

| (e) | fairness and solidarity between and within Member States
  and regions
  ; |
| --- | --- |

(e)

fairness and solidarity between and within Member States
  and regions
  ;

and regions

| (f) | the need to ensure environmental effectiveness and progression over time; |
| --- | --- |

(f)

the need to ensure environmental effectiveness and progression over time;

| (f) | the need to ensure environmental effectiveness and progression over time; |
| --- | --- |

(f)

the need to ensure environmental effectiveness and progression over time;

| (fa) | the need to ensure environmental sustainability, including the need to tackle the biodiversity crisis while restoring degraded ecosystems and prevent irreversible damage to ecosystems to achieve the Union biodiversity targets
  ; |
| --- | --- |

(fa)

the need to ensure environmental sustainability, including the need to tackle the biodiversity crisis while restoring degraded ecosystems and prevent irreversible damage to ecosystems to achieve the Union biodiversity targets
  ;

the need to ensure environmental sustainability, including the need to tackle the biodiversity crisis while restoring degraded ecosystems and prevent irreversible damage to ecosystems to achieve the Union biodiversity targets

| (fb) | ensuring stable, long lasting and climate effective natural sinks over time; |
| --- | --- |

(fb)

ensuring stable, long lasting and climate effective natural sinks over time;

ensuring stable, long lasting and climate effective natural sinks over time;

| (g) | investment needs and opportunities. |
| --- | --- |

(g)

investment needs and opportunities.

| (g) | investment needs and opportunities
  for innovation consistent with Regulation (EU) 2020/... [Taxonomy Regulation] while taking into account the risk of stranded assets
  . |
| --- | --- |

(g)

investment needs and opportunities
  for innovation consistent with Regulation (EU) 2020/... [Taxonomy Regulation] while taking into account the risk of stranded assets
  .

for innovation consistent with Regulation (EU) 2020/... [Taxonomy Regulation] while taking into account the risk of stranded assets

| (h) | the need to ensure a just and socially fair transition; |
| --- | --- |

(h)

the need to ensure a just and socially fair transition;

the need to ensure a just and socially fair transition;

| (i) | international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the United Nations Framework Convention on Climate Change; |
| --- | --- |

(i)

international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the United Nations Framework Convention on Climate Change;

international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the United Nations Framework Convention on Climate Change;

| (j) | the best available and most recent scientific evidence, including the latest reports of the IPCC. |
| --- | --- |

(j)

the best available and most recent scientific evidence, including the latest reports of the IPCC.

the best available and most recent scientific evidence, including the latest reports of the IPCC.

3a.
     
  By ... [1 year after the entry into force of this Regulation] the Commission shall issue, following an in-depth dialogue with all relevant stakeholders within a relevant sector, a sectorial decarbonisation roadmap towards climate neutrality by 2050 at the latest for the sector concerned.

Amendments 78 and 146

Amendments 78 and 146

Proposal for a regulation

Proposal for a regulation

Article 4

Article 4

| Text proposed by the Commission | Amendment |
| --- | --- |
| Article 4 | Article 4 |
| Adaptation to climate change | Adaptation to climate change |
| | -1a.
     
  By 31 January 2021 and every 5 years thereafter, the Commission shall adopt an updated EU Strategy on adaptation to climate change. The updated EU Strategy shall aim to ensure that adaptation policies are prioritised, integrated and implemented in a consistent way across Union policies, international commitments, trade agreements and international partnerships. |
| 1.   The relevant Union institutions and the Member States shall ensure continuous progress in enhancing adaptive capacity, strengthening resilience and reducing vulnerability to climate change in accordance with Article 7 of the Paris Agreement. | 1.   The relevant Union institutions and the Member States
  shall endeavour to meet national and Union objectives for climate adaptation as set out in the EU Strategy on adaptation to climate change, and
  shall ensure continuous progress in enhancing adaptive capacity, strengthening resilience and reducing vulnerability to climate change
  , including for both marine and terrestrial ecosystems,
  in accordance with Article 7 of the Paris Agreement
  , and integrate adaptation into relevant socioeconomic and environmental policies and actions
  .
  They shall focus, in particular, on the most vulnerable and impacted populations and economic sectors, identify shortcomings in this regard in consultation with civil society, and implement remedies
  . |
| 2.   Member States shall
  develop
  and implement adaptation strategies and plans that include comprehensive risk management frameworks, based on robust climate and vulnerability baselines and progress assessments. | 2.   
  By 31 December 2021 and every 5 years thereafter,
  Member States shall
  adopt
  and implement adaptation strategies and plans
  at national and regional level
  that include comprehensive
  local
  risk management frameworks
  , taking into account local needs and specificities
  , based on robust climate and vulnerability baselines
  and indicators,
  and progress assessments
  , guided by the best available and up-to-date scientific evidence. Those strategies and plans shall include measures in line with the national and Union objectives on climate adaptation. In particular, those strategies shall take into consideration vulnerable and impacted groups, communities and ecosystems
  ,
  and shall include measures for the management, restoration and protection of marine and terrestrial ecosystems to enhance their resilience
  .
  In their strategies, Member States shall take into account the particular vulnerability of agriculture and food systems, food security, and promote nature-based solutions and ecosystem-based adaptation. |
| | 2a.
     
  The Commission shall ask beneficiaries of Union financial instruments, including projects supported by the European Investment Bank, to carry out a climate adaptation stress test for projects that are deemed particularly vulnerable to climate change impacts. By ... [six months after entry into force of this Regulation] the Commission shall adopt delegated acts to supplement this Regulation which set out the detailed criteria for the stress test, including the list of the sectors, projects and regions concerned, and the turnover threshold of the beneficiaries, while ensuring no excessive administrative burden. The Commission shall provide guidance to beneficiaries, based on the EU Strategy on adaptation to climate change and on data from the European Environment Agency on how to align an investment project with climate adaptation requirements. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 4

Article 4

Adaptation to climate change

Adaptation to climate change

-1a.
     
  By 31 January 2021 and every 5 years thereafter, the Commission shall adopt an updated EU Strategy on adaptation to climate change. The updated EU Strategy shall aim to ensure that adaptation policies are prioritised, integrated and implemented in a consistent way across Union policies, international commitments, trade agreements and international partnerships.

1.   The relevant Union institutions and the Member States shall ensure continuous progress in enhancing adaptive capacity, strengthening resilience and reducing vulnerability to climate change in accordance with Article 7 of the Paris Agreement.

1.   The relevant Union institutions and the Member States
  shall endeavour to meet national and Union objectives for climate adaptation as set out in the EU Strategy on adaptation to climate change, and
  shall ensure continuous progress in enhancing adaptive capacity, strengthening resilience and reducing vulnerability to climate change
  , including for both marine and terrestrial ecosystems,
  in accordance with Article 7 of the Paris Agreement
  , and integrate adaptation into relevant socioeconomic and environmental policies and actions
  .
  They shall focus, in particular, on the most vulnerable and impacted populations and economic sectors, identify shortcomings in this regard in consultation with civil society, and implement remedies
  .

2.   Member States shall
  develop
  and implement adaptation strategies and plans that include comprehensive risk management frameworks, based on robust climate and vulnerability baselines and progress assessments.

2.   
  By 31 December 2021 and every 5 years thereafter,
  Member States shall
  adopt
  and implement adaptation strategies and plans
  at national and regional level
  that include comprehensive
  local
  risk management frameworks
  , taking into account local needs and specificities
  , based on robust climate and vulnerability baselines
  and indicators,
  and progress assessments
  , guided by the best available and up-to-date scientific evidence. Those strategies and plans shall include measures in line with the national and Union objectives on climate adaptation. In particular, those strategies shall take into consideration vulnerable and impacted groups, communities and ecosystems
  ,
  and shall include measures for the management, restoration and protection of marine and terrestrial ecosystems to enhance their resilience
  .
  In their strategies, Member States shall take into account the particular vulnerability of agriculture and food systems, food security, and promote nature-based solutions and ecosystem-based adaptation.

2a.
     
  The Commission shall ask beneficiaries of Union financial instruments, including projects supported by the European Investment Bank, to carry out a climate adaptation stress test for projects that are deemed particularly vulnerable to climate change impacts. By ... [six months after entry into force of this Regulation] the Commission shall adopt delegated acts to supplement this Regulation which set out the detailed criteria for the stress test, including the list of the sectors, projects and regions concerned, and the turnover threshold of the beneficiaries, while ensuring no excessive administrative burden. The Commission shall provide guidance to beneficiaries, based on the EU Strategy on adaptation to climate change and on data from the European Environment Agency on how to align an investment project with climate adaptation requirements.

Amendment 161

Amendment 161

Proposal for a regulation

Proposal for a regulation

Article 4 a (new)

Article 4 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Article 4a |
| | Consistency of finance flows with a pathway towards a climate-neutral and resilient society |
| | 1.   
  The relevant Union institutions and Member States shall ensure continuous progress on making public and private finance flows consistent with a pathway towards a climate-neutral and resilient society in accordance with point c of Article 2(1) of the Paris Agreement, taking account of the Union climate objectives set out in Article 2 of this Regulation. |
| | 2.   
  By 1 June 2021 and in regular intervals thereafter the Commission shall, as part of the assessments referred to in Article 5, present a report to the European Parliament and the Council assessing how all relevant Union legislation, including the multiannual financial frameworks of the Union and all specific regulations relating to funds and instruments under the Union budget, would need to be amended, to include binding and enforceable provisions, to ensure the consistency of public and private finance flows with the Union climate objectives set out in Article 2 of this Regulation. That assessment shall be accompanied by legislative proposals, where appropriate. |
| | 3.   
  The Commission shall disclose annually which part of the Union’s expenditure complies with the taxonomy categories as set out in Regulation (EU) 2020/... [Taxonomy Regulation]. |
| | 4.   
  In light of reaching the Union climate objectives set out in Article 2, the Union institutions and all Member States shall phase out all direct and indirect fossil fuel subsidies, and mobilise sustainable investment accordingly. The phasing out of these subsidies shall not impact on efforts to combat energy poverty . |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 4a

Article 4a

Consistency of finance flows with a pathway towards a climate-neutral and resilient society

Consistency of finance flows with a pathway towards a climate-neutral and resilient society

1.   
  The relevant Union institutions and Member States shall ensure continuous progress on making public and private finance flows consistent with a pathway towards a climate-neutral and resilient society in accordance with point c of Article 2(1) of the Paris Agreement, taking account of the Union climate objectives set out in Article 2 of this Regulation.

2.   
  By 1 June 2021 and in regular intervals thereafter the Commission shall, as part of the assessments referred to in Article 5, present a report to the European Parliament and the Council assessing how all relevant Union legislation, including the multiannual financial frameworks of the Union and all specific regulations relating to funds and instruments under the Union budget, would need to be amended, to include binding and enforceable provisions, to ensure the consistency of public and private finance flows with the Union climate objectives set out in Article 2 of this Regulation. That assessment shall be accompanied by legislative proposals, where appropriate.

3.   
  The Commission shall disclose annually which part of the Union’s expenditure complies with the taxonomy categories as set out in Regulation (EU) 2020/... [Taxonomy Regulation].

4.   
  In light of reaching the Union climate objectives set out in Article 2, the Union institutions and all Member States shall phase out all direct and indirect fossil fuel subsidies, and mobilise sustainable investment accordingly. The phasing out of these subsidies shall not impact on efforts to combat energy poverty .

Amendment 80

Amendment 80

Proposal for a regulation

Proposal for a regulation

Article 5

Article 5

| Text proposed by the Commission | Amendment |
| --- | --- |
| Article 5 | Article 5 |
| Assessment of Union progress and measures | Assessment of Union progress and measures |
| 1.   By 30 September 2023, and every
  5
  years thereafter, the Commission shall assess, together with the assessment foreseen under Article 29(5) of Regulation (EU) 2018/1999: | 1.   By 30 September 2023, and every
  2
  years thereafter, the Commission shall assess, together with the assessment foreseen under Article 29(5) of Regulation (EU) 2018/1999: |
| (a) | the collective progress made by all Member States towards the achievement of the
  climate-neutrality objective
  set out in Article
  2(1)
  as expressed by the trajectory referred to in Article 3(1); |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 5

Article 5

Assessment of Union progress and measures

Assessment of Union progress and measures

1.   By 30 September 2023, and every
  5
  years thereafter, the Commission shall assess, together with the assessment foreseen under Article 29(5) of Regulation (EU) 2018/1999:

1.   By 30 September 2023, and every
  2
  years thereafter, the Commission shall assess, together with the assessment foreseen under Article 29(5) of Regulation (EU) 2018/1999:

(a)

the collective progress made by all Member States towards the achievement of the
  climate-neutrality objective
  set out in Article
  2(1)
  as expressed by the trajectory referred to in Article 3(1);

climate-neutrality objective

2(1)

| (a) | the progress made by each Member State and
  the collective progress made by all Member States towards the achievement of the
  Union climate objectives
  set out in Article
  2
  as expressed by the trajectory
  to be established as
  referred to in Article 3(1)
  ; where the trajectory is not available, the assessment shall be made on the basis of the criteria set out in Article 3(3) and the 2030 climate target; |
| --- | --- |

(a)

the progress made by each Member State and
  the collective progress made by all Member States towards the achievement of the
  Union climate objectives
  set out in Article
  2
  as expressed by the trajectory
  to be established as
  referred to in Article 3(1)
  ; where the trajectory is not available, the assessment shall be made on the basis of the criteria set out in Article 3(3) and the 2030 climate target;

the progress made by each Member State and

Union climate objectives

2

to be established as

; where the trajectory is not available, the assessment shall be made on the basis of the criteria set out in Article 3(3) and the 2030 climate target;

| (b) | the collective progress made by all Member States on adaptation as referred to in Article 4. |
| --- | --- |

(b)

the collective progress made by all Member States on adaptation as referred to in Article 4.

| (b) | the progress made by each Member State and
  the collective progress made by all Member States on adaptation as referred to in Article 4. |
| --- | --- |

(b)

the progress made by each Member State and
  the collective progress made by all Member States on adaptation as referred to in Article 4.

the progress made by each Member State and

The Commission shall submit
  the
  conclusions
  of that assessment
  , together with the State of the Energy Union Report prepared in the respective calendar year in accordance with Article 35 of Regulation (EU) 2018/1999, to the European Parliament and to the Council.

the

of that assessment

The Commission shall submit
  those assessments and their
  conclusions, together with the State of the Energy Union Report prepared in the respective calendar year in accordance with Article 35 of Regulation (EU) 2018/1999, to the European Parliament and to the Council,
  and shall make them publicly available.

those assessments and their

and shall make them publicly available.

2.   By 30 September 2023, and every
  5
  years thereafter, the Commission shall review:

2.   By 30 September 2023, and every
  2
  years thereafter, the Commission shall review:

| (a) | the consistency of Union measures with the
  climate-neutrality objective
  set out in Article
  2(1)
  as expressed by the trajectory referred to in Article 3(1); |
| --- | --- |

(a)

the consistency of Union measures with the
  climate-neutrality objective
  set out in Article
  2(1)
  as expressed by the trajectory referred to in Article 3(1);

climate-neutrality objective

2(1)

| (a) | the consistency of Union measures
  and policies, including sectoral legislation, the Union's external action and the Union's budget,
   with the
  Union climate objectives
  set out in Article
  2
  as expressed by the trajectory
  to be established as
  referred to in Article 3(1)
  ; where the trajectory is not available, the assessment shall be made on the basis of the criteria set out in Article 3(3) and the 2030 climate target
  ; |
| --- | --- |

(a)

the consistency of Union measures
  and policies, including sectoral legislation, the Union's external action and the Union's budget,
   with the
  Union climate objectives
  set out in Article
  2
  as expressed by the trajectory
  to be established as
  referred to in Article 3(1)
  ; where the trajectory is not available, the assessment shall be made on the basis of the criteria set out in Article 3(3) and the 2030 climate target
  ;

and policies, including sectoral legislation, the Union's external action and the Union's budget,

Union climate objectives

2

to be established as

; where the trajectory is not available, the assessment shall be made on the basis of the criteria set out in Article 3(3) and the 2030 climate target

| (b) | the adequacy of Union measures to ensure progress on adaptation as referred to in Article 4. |
| --- | --- |

(b)

the adequacy of Union measures to ensure progress on adaptation as referred to in Article 4.

| (b) | the adequacy of Union measures
  and policies, including sectoral legislation, the Union's external action and the Union's budget,
  to ensure progress on adaptation as referred to in Article 4. |
| --- | --- |

(b)

the adequacy of Union measures
  and policies, including sectoral legislation, the Union's external action and the Union's budget,
  to ensure progress on adaptation as referred to in Article 4.

and policies, including sectoral legislation, the Union's external action and the Union's budget,

3.   Where, based on the assessment referred to in paragraphs 1 and 2, the Commission finds that Union measures are inconsistent with the
  climate-neutrality objective
  set out in Article
  2(1)
  or inadequate to ensure progress on adaptation as referred to in Article 4, or that the progress towards either the
  climate-neutrality objective
  or on adaptation as referred to in Article 4 is insufficient, it shall take the necessary measures in accordance with the Treaties, at the same time as the review of the trajectory referred to in Article 3(
  1
  ).

3.   Where, based on the assessment referred to in paragraphs 1 and 2, the Commission finds that Union measures
  and policies
  are inconsistent with the
  Union climate objectives
  set out in Article
  2
  or inadequate to ensure progress on adaptation as referred to in Article 4, or that the progress towards either
  the Union climate objectives set out in Article 2
  or on adaptation as referred to in Article 4 is insufficient, it shall
  as soon as possible
  take the necessary measures in accordance with the Treaties
  for remedying this inconsistency, or at the latest
  at the same time as the review of the trajectory referred to in Article 3(
  1a
  ).

4.   The Commission shall assess any draft measure
  or
  legislative proposal
  in light of the climate-neutrality objective
  set out in Article
  2(1) as expressed by the trajectory referred to in Article 3(1)
  before adoption,
  and include this
  analysis in any impact assessment accompanying these measures or proposals, and make
  the result of
  that assessment public
  at the time of
  adoption.

4.   The Commission shall assess
  the consistency of
   any draft measure
  , including but not limited to any
  legislative
  and budgetary
  proposal
  , with the Union climate objectives
  set out in Article
  2 and align the draft measure with these objectives
  before adoption
  . That
  analysis
  shall be included
  in any impact assessment accompanying these measures or proposals.
  Once the trajectory referred to in Article 3(1) and the greenhouse gas budget referred to in Article 3(2a) are established, they shall underpin the assessment. The Commission shall
  make that assessment
  and its results directly accessible to the
  public
  as soon as the assessment is finalised and, in any event, before
  adoption
  of the associated measure or proposal
  .

4a.
     
  The Commission shall use the assessment referred to in paragraph 4 to promote the exchange of best practices and to identify actions to contribute to the achievement of the objectives of this Regulation.

Amendment 81

Amendment 81

Proposal for a regulation

Proposal for a regulation

Article 6

Article 6

| Text proposed by the Commission | Amendment |
| --- | --- |
| Article 6 | Article 6 |
| Assessment of national measures | Assessment of national measures |
| 1.   By 30 September 2023, and every
  5
  years, thereafter, the Commission shall assess: | 1.   By 30 September 2023, and every
  2
  years, thereafter, the Commission shall assess: |
| (a) | the consistency of national measures identified, on the basis of the National Energy and Climate Plans
  or the Biennial
  Progress Reports submitted in accordance with Regulation (EU) 2018/1999, as relevant for the achievement of the
  climate-neutrality objective
  set out in Article
  2(1)
  with
  that objective
  as expressed by the trajectory referred to in Article 3(1); |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 6

Article 6

Assessment of national measures

Assessment of national measures

1.   By 30 September 2023, and every
  5
  years, thereafter, the Commission shall assess:

1.   By 30 September 2023, and every
  2
  years, thereafter, the Commission shall assess:

(a)

the consistency of national measures identified, on the basis of the National Energy and Climate Plans
  or the Biennial
  Progress Reports submitted in accordance with Regulation (EU) 2018/1999, as relevant for the achievement of the
  climate-neutrality objective
  set out in Article
  2(1)
  with
  that objective
  as expressed by the trajectory referred to in Article 3(1);

or the Biennial

climate-neutrality objective

2(1)

that objective

| (a) | the consistency of national measures identified, on the basis of the National Energy and Climate Plans,
  national long-term strategies
  or Progress Reports submitted in accordance with Regulation (EU) 2018/1999, as relevant for the achievement of the
  Union climate objectives
  set out in Article
  2
  with
  these objectives
  as expressed by the trajectory
  to be established as
  referred to in Article 3(1)
  ; where the trajectory is not available, the assessment shall be made on the basis of the criteria set out in Article 3(3) and the 2030 climate target
  ; |
| --- | --- |

(a)

the consistency of national measures identified, on the basis of the National Energy and Climate Plans,
  national long-term strategies
  or Progress Reports submitted in accordance with Regulation (EU) 2018/1999, as relevant for the achievement of the
  Union climate objectives
  set out in Article
  2
  with
  these objectives
  as expressed by the trajectory
  to be established as
  referred to in Article 3(1)
  ; where the trajectory is not available, the assessment shall be made on the basis of the criteria set out in Article 3(3) and the 2030 climate target
  ;

national long-term strategies

Union climate objectives

2

these objectives

to be established as

; where the trajectory is not available, the assessment shall be made on the basis of the criteria set out in Article 3(3) and the 2030 climate target

| (b) | the adequacy of relevant national measures to ensure progress on adaptation as referred to in Article 4. |
| --- | --- |

(b)

the adequacy of relevant national measures to ensure progress on adaptation as referred to in Article 4.

| (b) | the adequacy
  and effectiveness
  of relevant national measures to ensure progress on adaptation as referred to in Article 4. |
| --- | --- |

(b)

the adequacy
  and effectiveness
  of relevant national measures to ensure progress on adaptation as referred to in Article 4.

and effectiveness

The Commission shall submit
  the
  conclusions
  of that assessment
  , together with the State of the Energy Union Report prepared in the respective calendar year in accordance with Article 35 of Regulation (EU) 2018/1999, to the European Parliament and to the Council.

the

of that assessment

The Commission shall submit
  those assessments and their
  conclusions, together with the State of the Energy Union Report prepared in the respective calendar year in accordance with Article 35 of Regulation (EU) 2018/1999, to the European Parliament and to the Council,
  and shall make them publicly available.

those assessments and their

and shall make them publicly available.

2.   Where the Commission finds, under due consideration of the collective progress assessed in accordance with Article 5(1), that a Member State’s measures are inconsistent with
  that objective
  as expressed by the trajectory referred to in Article 3(1) or inadequate to ensure progress on adaptation as referred to in Article 4, it
  may
  issue recommendations to that Member State. The Commission shall make such recommendations publicly available.

2.   Where the Commission finds, under due consideration of the
  progress made by each Member State and the
  collective progress assessed in accordance with Article 5(1), that a Member State’s measures are inconsistent with
  the Union climate objectives,
  as expressed by the trajectory referred to in Article 3(1)
  once the trajectory is established,
  or inadequate to ensure progress on adaptation as referred to in Article 4, it
  shall
  issue recommendations to that Member State. The Commission shall make such recommendations publicly available.

2b.
     
  The Commission shall include in the recommendation referred to in paragraph 2 of this Article proposals to ensure progress on adaptation as referred to in Article 4. Those proposals may include, as appropriate, potential additional technical, innovation- or know-how related, financial, or other necessary support.

3.   Where a recommendation is issued in accordance with paragraph 2, the following principles shall apply:

3.   Where a recommendation is issued in accordance with paragraph 2, the following principles shall apply:

| (a) | the Member State concerned shall take due account of the recommendation in a spirit of solidarity between Member States and the Union and between Member States; |
| --- | --- |

(a)

the Member State concerned shall take due account of the recommendation in a spirit of solidarity between Member States and the Union and between Member States;

| (a) | the Member State concerned shall
  , within six months of receipt of the recommendation, notify the Commission of the measures it intends to adopt in order to
  take due account of the recommendation, in a spirit of solidarity between Member States and the Union and between Member States
  , and pursuant to the principle of sincere cooperation
  ; |
| --- | --- |

(a)

the Member State concerned shall
  , within six months of receipt of the recommendation, notify the Commission of the measures it intends to adopt in order to
  take due account of the recommendation, in a spirit of solidarity between Member States and the Union and between Member States
  , and pursuant to the principle of sincere cooperation
  ;

, within six months of receipt of the recommendation, notify the Commission of the measures it intends to adopt in order to

, and pursuant to the principle of sincere cooperation

| (b) | the Member State concerned shall set out, in its first progress report submitted in accordance with Article 17 of Regulation (EU) 2018/1999, in the year following the year in which the recommendation was issued, how it has taken due account of the recommendation
  . If the Member State concerned decides not to address a recommendation or a substantial part thereof, that Member State shall provide the Commission its reasoning
  ; |
| --- | --- |

(b)

the Member State concerned shall set out, in its first progress report submitted in accordance with Article 17 of Regulation (EU) 2018/1999, in the year following the year in which the recommendation was issued, how it has taken due account of the recommendation
  . If the Member State concerned decides not to address a recommendation or a substantial part thereof, that Member State shall provide the Commission its reasoning
  ;

. If the Member State concerned decides not to address a recommendation or a substantial part thereof, that Member State shall provide the Commission its reasoning

| (b) | the Member State concerned shall set out,
  within 18 months of receipt of the recommendation
  how it has taken due account of the recommendation
  and the measures it has adopted in response
  ;
  this information shall be included in the progress report submitted in that year in accordance with Article 17 of Regulation (EU) 2018/1999; |
| --- | --- |

(b)

the Member State concerned shall set out,
  within 18 months of receipt of the recommendation
  how it has taken due account of the recommendation
  and the measures it has adopted in response
  ;
  this information shall be included in the progress report submitted in that year in accordance with Article 17 of Regulation (EU) 2018/1999;

within 18 months of receipt of the recommendation

and the measures it has adopted in response

this information shall be included in the progress report submitted in that year in accordance with Article 17 of Regulation (EU) 2018/1999;

| (c) | the recommendations should be complementary to the latest country-specific recommendations issued in the context of the European Semester. |
| --- | --- |

(c)

the recommendations should be complementary to the latest country-specific recommendations issued in the context of the European Semester.

| (c) | the recommendations should be complementary to the latest country-specific recommendations issued in the context of the European Semester. |
| --- | --- |

(c)

the recommendations should be complementary to the latest country-specific recommendations issued in the context of the European Semester.

3a.
     
  Within three months of submission of the progress report referred to in point (b) of paragraph 3, the Commission shall assess whether the measures adopted by the Member State concerned adequately address the issues raised in the recommendation. That assessment and its results shall be made public at the time of its adoption.

Amendment 82

Amendment 82

Proposal for a regulation

Proposal for a regulation

Article 7

Article 7

| Text proposed by the Commission | Amendment |
| --- | --- |
| Article 7 | Article 7 |
| Common provisions on Commission assessment | Common provisions on Commission assessment |
| 1.   In addition to the national measures referred to in Article 6(1)(a), the Commission shall base its assessment referred to in Articles 5 and 6 on at least the following: | 1.   In addition to the national measures referred to in Article 6(1)(a), the Commission shall base its assessment referred to in Articles 5 and 6 on at least the following: |
| (a) | information submitted and reported under Regulation (EU) 2018/1999; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 7

Article 7

Common provisions on Commission assessment

Common provisions on Commission assessment

1.   In addition to the national measures referred to in Article 6(1)(a), the Commission shall base its assessment referred to in Articles 5 and 6 on at least the following:

1.   In addition to the national measures referred to in Article 6(1)(a), the Commission shall base its assessment referred to in Articles 5 and 6 on at least the following:

(a)

information submitted and reported under Regulation (EU) 2018/1999;

| (a) | information submitted and reported under Regulation (EU) 2018/1999; |
| --- | --- |

(a)

information submitted and reported under Regulation (EU) 2018/1999;

| (b) | reports of the European Environment Agency (EEA); |
| --- | --- |

(b)

reports of the European Environment Agency (EEA);

| (b) | reports of the European Environment Agency (EEA)
  and the Joint Research Centre (JRC)
  ; |
| --- | --- |

(b)

reports of the European Environment Agency (EEA)
  and the Joint Research Centre (JRC)
  ;

and the Joint Research Centre (JRC)

| (c) | European statistics and data, including data on losses from adverse climate impacts, where available; and |
| --- | --- |

(c)

European statistics and data, including data on losses from adverse climate impacts, where available; and

| (c) | European
  and global
  statistics and data, including data on
  observed and projected
  losses from adverse climate impacts
  and estimates on the costs of inaction or delayed action
  , where available; and |
| --- | --- |

(c)

European
  and global
  statistics and data, including data on
  observed and projected
  losses from adverse climate impacts
  and estimates on the costs of inaction or delayed action
  , where available; and

and global

observed and projected

and estimates on the costs of inaction or delayed action

| (d) | best available scientific evidence, including the latest reports of the IPCC; and |
| --- | --- |

(d)

best available scientific evidence, including the latest reports of the IPCC; and

| (d) | best available
  and up-to-date
  scientific evidence, including the latest reports of the IPCC
  , UNEP, IPBES, ECCC and, where possible, Member States national independent climate advisory bodies
  ; and |
| --- | --- |

(d)

best available
  and up-to-date
  scientific evidence, including the latest reports of the IPCC
  , UNEP, IPBES, ECCC and, where possible, Member States national independent climate advisory bodies
  ; and

and up-to-date

, UNEP, IPBES, ECCC and, where possible, Member States national independent climate advisory bodies

| (e) | any supplementary information on environmentally sustainable investment, by the Union and Member States, including, when available, investment consistent with Regulation (EU) 2020/... [Taxonomy Regulation]. |
| --- | --- |

(e)

any supplementary information on environmentally sustainable investment, by the Union and Member States, including, when available, investment consistent with Regulation (EU) 2020/... [Taxonomy Regulation].

| (e) | any supplementary information on environmentally sustainable investment, by the Union and Member States, including, when available, investment consistent with Regulation (EU) 2020/... [Taxonomy Regulation]. |
| --- | --- |

(e)

any supplementary information on environmentally sustainable investment, by the Union and Member States, including, when available, investment consistent with Regulation (EU) 2020/... [Taxonomy Regulation].

2.   The EEA shall assist the Commission in the preparation of the assessment referred to in Articles 5 and 6, in accordance with its annual work programme.

2.   The EEA shall assist the Commission in the preparation of the assessment referred to in Articles 5 and 6, in accordance with its annual work programme.

Amendment 83

Amendment 83

Proposal for a regulation

Proposal for a regulation

Article 8

Article 8

| Text proposed by the Commission | Amendment |
| --- | --- |
| Article 8 | Article 8 |
| Public participation | Public participation
  and transparency |
| The Commission shall engage with all parts of society to enable and empower them to take action towards a climate-neutral and climate-resilient society. The Commission shall facilitate an inclusive
  and
  accessible process at all levels, including at national, regional and local level and with social partners, citizens and civil society, for the exchange of best practice and to identify actions to contribute to the achievement of the objectives of this Regulation. In addition, the Commission may also draw on the multilevel climate and energy dialogues as set up by Member States in accordance with Article 11 of Regulation (EU) 2018/1999. | 1.   The Commission
  and Member States
  shall engage with all parts of society
  , including local and regional governments,
  to enable and empower them to take action towards a 
  socially just,
  climate-neutral and climate-resilient society
  , including through the European Climate Pact set out in paragraph 2
  . The Commission
  and Member States
  shall facilitate an inclusive, accessible
  and transparent
  process at all levels, including at national, regional and local level and with social partners,
  academia
  , citizens and civil society, for the exchange of best practice and to identify actions to contribute to the achievement of the objectives of this Regulation. In addition, the Commission may also draw on the multilevel climate and energy dialogues as set up by Member States in accordance with Article 11 of Regulation (EU) 2018/1999. |
| | 2.   
  The Commission shall establish a European Climate Pact with the purpose of engaging citizens, social partners and stakeholders in the elaboration of Union-level climate policies and fostering dialogue and the diffusion of science-based information about climate change and its social and gender equality aspects, as well as sharing best practices for climate initiatives. |
| | 3.   
  Member States shall ensure, when taking measures to achieve the climate-neutrality objective set out in Article 2(1), that citizens, civil society and social partners are informed and consulted throughout the legislative process. In that regard, Member States shall operate in a transparent manner. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 8

Article 8

Public participation

Public participation
  and transparency

and transparency

The Commission shall engage with all parts of society to enable and empower them to take action towards a climate-neutral and climate-resilient society. The Commission shall facilitate an inclusive
  and
  accessible process at all levels, including at national, regional and local level and with social partners, citizens and civil society, for the exchange of best practice and to identify actions to contribute to the achievement of the objectives of this Regulation. In addition, the Commission may also draw on the multilevel climate and energy dialogues as set up by Member States in accordance with Article 11 of Regulation (EU) 2018/1999.

and

1.   The Commission
  and Member States
  shall engage with all parts of society
  , including local and regional governments,
  to enable and empower them to take action towards a 
  socially just,
  climate-neutral and climate-resilient society
  , including through the European Climate Pact set out in paragraph 2
  . The Commission
  and Member States
  shall facilitate an inclusive, accessible
  and transparent
  process at all levels, including at national, regional and local level and with social partners,
  academia
  , citizens and civil society, for the exchange of best practice and to identify actions to contribute to the achievement of the objectives of this Regulation. In addition, the Commission may also draw on the multilevel climate and energy dialogues as set up by Member States in accordance with Article 11 of Regulation (EU) 2018/1999.

2.   
  The Commission shall establish a European Climate Pact with the purpose of engaging citizens, social partners and stakeholders in the elaboration of Union-level climate policies and fostering dialogue and the diffusion of science-based information about climate change and its social and gender equality aspects, as well as sharing best practices for climate initiatives.

3.   
  Member States shall ensure, when taking measures to achieve the climate-neutrality objective set out in Article 2(1), that citizens, civil society and social partners are informed and consulted throughout the legislative process. In that regard, Member States shall operate in a transparent manner.

Amendment 143

Amendment 143

Proposal for a regulation

Proposal for a regulation

Article 8 a (new)

Article 8 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Article 8a




  The Union shall end protection of investments in fossil fuels in the context of the modernisation of the Energy Charter Treaty. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 8a

The Union shall end protection of investments in fossil fuels in the context of the modernisation of the Energy Charter Treaty.

Amendments 84 and 175/rev

Amendments 84 and 175/rev

Proposal for a regulation

Proposal for a regulation

Article 9

Article 9

| Text proposed by the Commission | Amendment |
| --- | --- |
| Article 9 | deleted |
| Exercise of the delegation | |
| 1.   
  The power to adopt delegated acts referred to in Article 3(1) is conferred on the Commission subject to the conditions laid down in this Article. | |
| 2.   
  The power to adopt delegated acts referred to in Article 3(1) shall be conferred on the Commission for an indeterminate period of time from ...[OP: date of entry into force of this Regulation]. | |
| 3.   
  The delegation of power referred to in Article 3(1) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. | |
| 4.   
  Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. | |
| 5.   
  As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. | |
| 6.   
  A delegated act adopted pursuant to Article 3 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. | |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 9

Article 9

deleted

deleted

Exercise of the delegation

Exercise of the delegation

1.   
  The power to adopt delegated acts referred to in Article 3(1) is conferred on the Commission subject to the conditions laid down in this Article.

2.   
  The power to adopt delegated acts referred to in Article 3(1) shall be conferred on the Commission for an indeterminate period of time from ...[OP: date of entry into force of this Regulation].

3.   
  The delegation of power referred to in Article 3(1) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.   
  Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5.   
  As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

6.   
  A delegated act adopted pursuant to Article 3 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Amendment 85

Amendment 85

Proposal for a regulation

Proposal for a regulation

Article 9 a (new)

Article 9 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Article 9a




  Review




  The Commission shall, six months after each global stocktake as referred to in Article 14 of the Paris Agreement, conduct a review of all elements of this Regulation, in the light of the best available and most recent scientific evidence, including the latest findings and recommendations of the IPCC and of the ECCC, international developments and efforts to limit the increase in temperature to 1,5  oC, and submit a report to the European Parliament and the Council, accompanied, if appropriate, by legislative proposals. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 9a

Review

The Commission shall, six months after each global stocktake as referred to in Article 14 of the Paris Agreement, conduct a review of all elements of this Regulation, in the light of the best available and most recent scientific evidence, including the latest findings and recommendations of the IPCC and of the ECCC, international developments and efforts to limit the increase in temperature to 1,5  oC, and submit a report to the European Parliament and the Council, accompanied, if appropriate, by legislative proposals.

Amendment 86

Amendment 86

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 1

Article 10 — paragraph 1 — point 1

Regulation (EU) 2018/1999

Article 1 — paragraph 1 — point a

| Text proposed by the Commission | Amendment |
| --- | --- |
| (a) | implement strategies and measures designed to meet the
  Union’s climate-neutrality objective
  as set out in Article 2 of Regulation .../... [Climate Law]
  , the objectives and targets of the Energy Union
  , and for the first ten-year period, from 2021 to 2030, in particular the Union’s 2030 targets for energy and climate; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(a)

implement strategies and measures designed to meet the
  Union’s climate-neutrality objective
  as set out in Article 2 of Regulation .../... [Climate Law]
  , the objectives and targets of the Energy Union
  , and for the first ten-year period, from 2021 to 2030, in particular the Union’s 2030 targets for energy and climate;

Union’s climate-neutrality objective

, the objectives and targets of the Energy Union

| (a) | implement strategies and measures designed to meet the
  objectives and targets of the Energy Union and the long-term Union greenhouse gas emissions commitments consistent with the Paris Agreement, in particular the Union climate objectives
  as set out in Article 2 of Regulation .../... [Climate Law], and for the first ten-year period, from 2021 to 2030, in particular the Union’s 2030 targets for energy and climate; |
| --- | --- |

(a)

implement strategies and measures designed to meet the
  objectives and targets of the Energy Union and the long-term Union greenhouse gas emissions commitments consistent with the Paris Agreement, in particular the Union climate objectives
  as set out in Article 2 of Regulation .../... [Climate Law], and for the first ten-year period, from 2021 to 2030, in particular the Union’s 2030 targets for energy and climate;

objectives and targets of the Energy Union and the long-term Union greenhouse gas emissions commitments consistent with the Paris Agreement, in particular the Union climate objectives

Amendment 87

Amendment 87

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 2 a (new)

Article 10 — paragraph 1 — point 2 a (new)

Regulation (EU) 2018/1999

Article 2 — point 11

| Present text | Amendment |
| --- | --- |
| | (2a) | in Article 2, point 11 is replaced by the following: |

Present text

Present text

Amendment

Amendment

(2a)

(2a)

in Article 2, point 11 is replaced by the following:

| (11) | ‘the Union's 2030 targets for energy and climate’ means the Union-wide binding target of
  at least 40 %
  domestic reduction in economy-wide greenhouse gas emissions
  as compared to 1990
  to be achieved by 2030, the Union-level binding target
  of at least 32 %
  for the share of renewable energy consumed in the Union in 2030, the Union-level headline target
  of at least 32,5  %
  for improving energy efficiency in 2030, and the 15 % electricity interconnection target for 2030
  or any subsequent targets in this regard agreed by the European Council or by the European Parliament and by the Council for 2030
  ; |
| --- | --- |

(11)

‘the Union's 2030 targets for energy and climate’ means the Union-wide binding target of
  at least 40 %
  domestic reduction in economy-wide greenhouse gas emissions
  as compared to 1990
  to be achieved by 2030, the Union-level binding target
  of at least 32 %
  for the share of renewable energy consumed in the Union in 2030, the Union-level headline target
  of at least 32,5  %
  for improving energy efficiency in 2030, and the 15 % electricity interconnection target for 2030
  or any subsequent targets in this regard agreed by the European Council or by the European Parliament and by the Council for 2030
  ;

at least 40 %

as compared to 1990

of at least 32 %

of at least 32,5  %

or any subsequent targets in this regard agreed by the European Council or by the European Parliament and by the Council for 2030

| | ‘(11) | “the Union's 2030 targets for energy and climate” means the Union-wide binding target of domestic reduction in economy-wide greenhouse gas emissions to be achieved by 2030
  pursuant to Article 2(3) of Regulation (EU) .../... [Climate Law]
  , the Union-level binding target for the share of renewable energy consumed in the Union in 2030
  pursuant to Article 3(1) of Directive (EU) 2018/2001
  , the Union-level headline target for improving energy efficiency in 2030
  pursuant to Article 1(1) of Directive 2012/27/EU
  , and the 15 % electricity interconnection target for 2030;’ |
| --- | --- | --- |

‘(11)

“the Union's 2030 targets for energy and climate” means the Union-wide binding target of domestic reduction in economy-wide greenhouse gas emissions to be achieved by 2030
  pursuant to Article 2(3) of Regulation (EU) .../... [Climate Law]
  , the Union-level binding target for the share of renewable energy consumed in the Union in 2030
  pursuant to Article 3(1) of Directive (EU) 2018/2001
  , the Union-level headline target for improving energy efficiency in 2030
  pursuant to Article 1(1) of Directive 2012/27/EU
  , and the 15 % electricity interconnection target for 2030;’

pursuant to Article 2(3) of Regulation (EU) .../... [Climate Law]

pursuant to Article 3(1) of Directive (EU) 2018/2001

pursuant to Article 1(1) of Directive 2012/27/EU

Amendment 88

Amendment 88

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 2 b (new)

Article 10 — paragraph 1 — point 2 b (new)

Regulation (EU) 2018/1999

Article 2 — point 62 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (2b) | in Article 2, the following point is added:









  ‘(62a) | “public concerned” means the public affected or likely to be affected by, or having an interest in, the environmental decision-making procedures referred to in Chapters 2 and 3; for the purposes of this definition, non-governmental organisations promoting environmental protection and meeting any requirements under national law shall be deemed to have an interest.’ |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(2b)

(2b)

in Article 2, the following point is added:

‘(62a)

‘(62a)

“public concerned” means the public affected or likely to be affected by, or having an interest in, the environmental decision-making procedures referred to in Chapters 2 and 3; for the purposes of this definition, non-governmental organisations promoting environmental protection and meeting any requirements under national law shall be deemed to have an interest.’

Amendment 89

Amendment 89

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 3

Article 10 — paragraph 1 — point 3

Regulation (EU) 2018/1999

Article 3 — paragraph 2 — point f

| Text proposed by the Commission | Amendment |
| --- | --- |
| ‘(f) | an assessment of the impacts of the planned policies and measures to meet the objectives referred to in point (b) of this paragraph, including their consistency with
  Union’s climate-neutrality objective
  set out in Article 2 of Regulation .../... [Climate Law], the long-term greenhouse gas emission reduction objectives under the Paris Agreement and the long-term strategies as referred to in Article 15;’ |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

‘(f)

an assessment of the impacts of the planned policies and measures to meet the objectives referred to in point (b) of this paragraph, including their consistency with
  Union’s climate-neutrality objective
  set out in Article 2 of Regulation .../... [Climate Law], the long-term greenhouse gas emission reduction objectives under the Paris Agreement and the long-term strategies as referred to in Article 15;’

Union’s climate-neutrality objective

| ‘(f) | an assessment of the impacts of the planned policies and measures to meet the objectives referred to in point (b) of this paragraph, including their consistency with
  Union climate objectives
  set out in Article 2 of Regulation .../... [Climate Law], the long-term greenhouse gas emission reduction objectives under the Paris Agreement and the long-term strategies as referred to in Article 15;’ |
| --- | --- |

‘(f)

an assessment of the impacts of the planned policies and measures to meet the objectives referred to in point (b) of this paragraph, including their consistency with
  Union climate objectives
  set out in Article 2 of Regulation .../... [Climate Law], the long-term greenhouse gas emission reduction objectives under the Paris Agreement and the long-term strategies as referred to in Article 15;’

Union climate objectives

Amendment 90

Amendment 90

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 3 a (new)

Article 10 — paragraph 1 — point 3 a (new)

Regulation (EU) 2018/1999

Article 4 –paragraph 1 — point a — point 1 — introductory part

| Present text | Amendment |
| --- | --- |
| | (3a) | in Article 4(1), the introductory part of point (a)(1) is replaced by the following: |

Present text

Present text

Amendment

Amendment

(3a)

(3a)

in Article 4(1), the introductory part of point (a)(1) is replaced by the following:

| (1) | with respect to greenhouse gas emissions and removals and with a view to contributing to the achievement of the
  economy wide
  Union
  greenhouse gas emission reduction target
  : |
| --- | --- |

(1)

with respect to greenhouse gas emissions and removals and with a view to contributing to the achievement of the
  economy wide
  Union
  greenhouse gas emission reduction target
  :

economy wide

greenhouse gas emission reduction target

| | ‘(1) | with respect to greenhouse gas emissions and removals and with a view to contributing to the achievement of the Union
  climate objectives set out in Article 2 of Regulation .../... [Climate Law];’ |
| --- | --- | --- |

‘(1)

with respect to greenhouse gas emissions and removals and with a view to contributing to the achievement of the Union
  climate objectives set out in Article 2 of Regulation .../... [Climate Law];’

Amendment 91

Amendment 91

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 4

Article 10 — paragraph 1 — point 4

Regulation (EU) 2018/1999

Article 8 — paragraph 2 — point e

| Text proposed by the Commission | Amendment |
| --- | --- |
| ‘(e) | the manner in which existing policies and measures and planned policies and measures contribute to the achievement of the
  Union’s climate-neutrality objective
  set out in Article 2 of Regulation .../... [Climate Law].;’ |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

‘(e)

the manner in which existing policies and measures and planned policies and measures contribute to the achievement of the
  Union’s climate-neutrality objective
  set out in Article 2 of Regulation .../... [Climate Law].;’

Union’s climate-neutrality objective

| ‘(e) | the manner in which existing policies and measures and planned policies and measures contribute to the achievement of the
  Union climate objectives
  set out in Article 2 of Regulation .../... [Climate Law].;’ |
| --- | --- |

‘(e)

the manner in which existing policies and measures and planned policies and measures contribute to the achievement of the
  Union climate objectives
  set out in Article 2 of Regulation .../... [Climate Law].;’

Union climate objectives

Amendment 92

Amendment 92

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 5 a (new)

Article 10 — paragraph 1 — point 5 a (new)

Regulation (EU) 2018/1999

Article 11 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (5a) | the following Article is inserted: |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(5a)

(5a)

the following Article is inserted:

‘Article 11a

‘Article 11a

Access to justice

Access to justice

1.   
  Member States shall ensure that, in accordance with their national laws, members of the public concerned who have a sufficient interest or who claim the impairment of a right where administrative procedural law of a Member State requires such a right to be a precondition have access to a review procedure before a court of law or other independent and impartial body established by law with a view to challenging the substantive or procedural legality of decisions, acts or omissions subject to Article 10 of Regulation (EU) 2018/1999.

2.   
  Member States shall determine the stage at which decisions, acts or omissions may be challenged.

3.   
  Member States shall determine what constitutes a sufficient interest and impairment of a right, consistent with the objective of giving the public concerned wide access to justice. To that end, non-governmental organisation covered by the definition in Article 2(62a) shall be deemed as having a sufficient interest or having rights capable of being impaired for the purpose of paragraph 1 of this Article.

4.   
  This Article shall not exclude the possibility of a preliminary review procedure before an administrative authority and shall not affect the requirement of exhaustion of administrative review procedures prior to recourse to judicial review procedures, where such a requirement exists under national law. Any such procedure shall be fair, equitable, timely and not prohibitively expensive.

5.   
  Member States shall ensure that practical information is made available to the public on access to administrative and judicial review procedures.’

Amendment 93

Amendment 93

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 5 b (new)

Article 10 — paragraph 1 — point 5 b (new)

Regulation (EU) 2018/1999

Article 15 — paragraph 1

| Present text | Amendment |
| --- | --- |
| | (5b) | in Article 15, paragraph 1 is replaced by the following: |

Present text

Present text

Amendment

Amendment

(5b)

(5b)

in Article 15, paragraph 1 is replaced by the following:

1.   By 1 January 2020, and subsequently by 1 January 2029 and every 10 years thereafter, each Member State shall prepare and submit to the Commission its long-term strategy with
  a perspective of at least
  30 years. Member States should, where necessary, update those strategies every five years.

| | ‘1.   By 1 January 2020, and subsequently by 1 January 2029 and every 10 years thereafter, each Member State shall prepare and submit to the Commission its long-term strategy
  with a 2050 and
  30 years
  perspective
  . Member States should, where necessary, update those strategies every five years.’; |
| --- | --- |

‘1.   By 1 January 2020, and subsequently by 1 January 2029 and every 10 years thereafter, each Member State shall prepare and submit to the Commission its long-term strategy
  with a 2050 and
  30 years
  perspective
  . Member States should, where necessary, update those strategies every five years.’;

Amendment 94

Amendment 94

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 6

Article 10 — paragraph 1 — point 6

Regulation (EU) 2018/1999

Article 15 — paragraph 3 — point c

| Text proposed by the Commission | Amendment |
| --- | --- |
| (c) | achieving long-term greenhouse gas emission reductions and enhancements of removals by sinks
  in all sectors in accordance with
  the Union’s
  climate-neutrality objective set out
  in Article 2 of Regulation .../... [Climate Law]; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(c)

achieving long-term greenhouse gas emission reductions and enhancements of removals by sinks
  in all sectors in accordance with
  the Union’s
  climate-neutrality objective set out
  in Article 2 of Regulation .../... [Climate Law];

in all sectors in accordance with

climate-neutrality objective set out

| (c) | achieving long-term greenhouse gas emission reductions
  in all sectors of the economy
  and enhancements of removals by sinks
  , in the context of the necessity, according to the Intergovernmental Panel on Climate Change (IPCC), to reduce
  the Union’s
  greenhouse gas emissions in a cost-effective manner and enhance removals by sinks in pursuit of the temperature goals in the Paris Agreement so as to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases within the Union at the latest by 2050 and achieve negative emissions thereafter as referred to
  in Article 2 of Regulation .../... [Climate Law]; |
| --- | --- |

(c)

achieving long-term greenhouse gas emission reductions
  in all sectors of the economy
  and enhancements of removals by sinks
  , in the context of the necessity, according to the Intergovernmental Panel on Climate Change (IPCC), to reduce
  the Union’s
  greenhouse gas emissions in a cost-effective manner and enhance removals by sinks in pursuit of the temperature goals in the Paris Agreement so as to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases within the Union at the latest by 2050 and achieve negative emissions thereafter as referred to
  in Article 2 of Regulation .../... [Climate Law];

in all sectors of the economy

, in the context of the necessity, according to the Intergovernmental Panel on Climate Change (IPCC), to reduce

greenhouse gas emissions in a cost-effective manner and enhance removals by sinks in pursuit of the temperature goals in the Paris Agreement so as to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases within the Union at the latest by 2050 and achieve negative emissions thereafter as referred to

Amendment 95

Amendment 95

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 7 — point a

Article 10 — paragraph 1 — point 7 — point a

Regulation (EU) 2018/1999

Annex I — Part I — section A — point 3.1.1. — point i

| Text proposed by the Commission | Amendment |
| --- | --- |
| ‘(i) | Policies and measures to achieve the target set under Regulation (EU) 2018/842 as referred in point 2.1.1 and policies and measures to comply with Regulation (EU) 2018/841, covering all key emitting sectors and sectors for the enhancement of removals, with an outlook to the
  climate-neutrality objective
  set out in Article 2 of Regulation .../... [Climate Law];’ |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

‘(i)

Policies and measures to achieve the target set under Regulation (EU) 2018/842 as referred in point 2.1.1 and policies and measures to comply with Regulation (EU) 2018/841, covering all key emitting sectors and sectors for the enhancement of removals, with an outlook to the
  climate-neutrality objective
  set out in Article 2 of Regulation .../... [Climate Law];’

climate-neutrality objective

| ‘(i) | Policies and measures to achieve the target set under Regulation (EU) 2018/842 as referred in point 2.1.1 and policies and measures to comply with Regulation (EU) 2018/841, covering all key emitting sectors and sectors for the enhancement of removals, with an outlook to the
  Union climate objectives
  set out in Article 2 of Regulation .../... [Climate Law];’ |
| --- | --- |

‘(i)

Policies and measures to achieve the target set under Regulation (EU) 2018/842 as referred in point 2.1.1 and policies and measures to comply with Regulation (EU) 2018/841, covering all key emitting sectors and sectors for the enhancement of removals, with an outlook to the
  Union climate objectives
  set out in Article 2 of Regulation .../... [Climate Law];’

Union climate objectives

Amendment 96

Amendment 96

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 7 — point b

Article 10 — paragraph 1 — point 7 — point b

Regulation (EU) 2018/1999

Annex I — Part I — section B — point 5.5.

| Text proposed by the Commission | Amendment |
| --- | --- |
| 5.5. | The contribution of planned policies and measures to the achievement of the
  Union’s climate-neutrality objective
  set out in Article 2 of Regulation .../... [Climate Law]; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

5.5.

The contribution of planned policies and measures to the achievement of the
  Union’s climate-neutrality objective
  set out in Article 2 of Regulation .../... [Climate Law];

Union’s climate-neutrality objective

| 5.5. | The contribution of planned policies and measures to the achievement of the
  Union climate objectives
  set out in Article 2 of Regulation .../... [Climate Law]; |
| --- | --- |

5.5.

The contribution of planned policies and measures to the achievement of the
  Union climate objectives
  set out in Article 2 of Regulation .../... [Climate Law];

Union climate objectives

Amendment 97

Amendment 97

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 7 a (new)

Article 10 — paragraph 1 — point 7 a (new)

Regulation (EU) 2018/1999

Annex IV — point 2.1.1.

| Present text | Amendment |
| --- | --- |
| | (7a) | in Annex IV, point 2.1.1. is replaced by the following: |

Present text

Present text

Amendment

Amendment

(7a)

(7a)

in Annex IV, point 2.1.1. is replaced by the following:

| 2.1.1. | Projected emission
  reductions and enhancement of removals by 2050 |
| --- | --- |

2.1.1.

Projected emission
  reductions and enhancement of removals by 2050

reductions and enhancement of removals by 2050

| | ‘2.1.1. | Projected
  cumulative
  emissions
  for the period 2021-2050, with a view to contributing to the achievement of the Union greenhouse gas budget referred to in Article 3(2a) of Regulation.../... [Climate Law];
  ’; |
| --- | --- | --- |

‘2.1.1.

Projected
  cumulative
  emissions
  for the period 2021-2050, with a view to contributing to the achievement of the Union greenhouse gas budget referred to in Article 3(2a) of Regulation.../... [Climate Law];
  ’;

Amendment 98

Amendment 98

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 — point 8

Article 10 — paragraph 1 — point 8

Regulation (EU) 2018/1999

Annex VI — point c — point viii

| Text proposed by the Commission | Amendment |
| --- | --- |
| ‘(viii) | an assessment of the contribution of the policy or measure to the achievement of the
  Union’s climate-neutrality objective
  set out in Article 2 of Regulation .../... [Climate Law] and to the achievement of the long-term strategy referred to in Article 15;.’ |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

‘(viii)

an assessment of the contribution of the policy or measure to the achievement of the
  Union’s climate-neutrality objective
  set out in Article 2 of Regulation .../... [Climate Law] and to the achievement of the long-term strategy referred to in Article 15;.’

Union’s climate-neutrality objective

| ‘(viii) | an assessment of the contribution of the policy or measure to the achievement of the
  Union climate objectives
  set out in Article 2 of Regulation .../... [Climate Law] and to the achievement of the long-term strategy referred to in Article 15;.’ |
| --- | --- |

‘(viii)

an assessment of the contribution of the policy or measure to the achievement of the
  Union climate objectives
  set out in Article 2 of Regulation .../... [Climate Law] and to the achievement of the long-term strategy referred to in Article 15;.’

Union climate objectives

Amendment 99

Amendment 99

Proposal for a regulation

Proposal for a regulation

Article 10 a (new)

Article 10 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Article 10a




  Amendments to Regulation (EU) 2018/842




  In Regulation (EU) 2018/842 of the European Parliament and of the Council

   (1a)

  , the following paragraphs are inserted into Article 5:






  ‘5a.
     
  In any transactions made under the provision referred to in Article 5(5), annual emissions allocation minimum price is set at EUR 100 for each tonne of CO2 equivalent.






  5b.
     
  Member States shall inform the Commission of any actions taken pursuant to this paragraph, and communicate, by 31 March 2025 their intention to use provisions referred to in Article 5(5).






  5c.
     
  At the latest by 30 June 2025, the Commission shall assess for all Member States the intention to use provisions referred to in Article 5(5), and make publicly available the budgetary impact of the use of such provisions.’. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 10a

Amendments to Regulation (EU) 2018/842

In Regulation (EU) 2018/842 of the European Parliament and of the Council

   (1a)

  , the following paragraphs are inserted into Article 5:

‘5a.
     
  In any transactions made under the provision referred to in Article 5(5), annual emissions allocation minimum price is set at EUR 100 for each tonne of CO2 equivalent.

5b.
     
  Member States shall inform the Commission of any actions taken pursuant to this paragraph, and communicate, by 31 March 2025 their intention to use provisions referred to in Article 5(5).

5c.
     
  At the latest by 30 June 2025, the Commission shall assess for all Member States the intention to use provisions referred to in Article 5(5), and make publicly available the budgetary impact of the use of such provisions.’.

---

(1)  The matter was referred back for interinstitutional negotiations to the committee responsible, pursuant to Rule 59(4), fourth subparagraph (A9-0162/2020).

1

(1a)  

  OJ L 282, 19.10.2016, p. 4.

1a

OJ L 282, 19.10.2016, p. 4.

(19)  Commission Communication — The European Green Deal, COM(2019) 640 final of 11 December 2019.

19

(19)  Commission Communication — The European Green Deal, COM(2019) 640 final of 11 December 2019.

19

(20)  IPCC, 2018: Global Warming of 1,5 oC. An IPCC Special Report on the impacts of global warming of 1,5 oC above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty [Masson-Delmotte, V., P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, P.R. Shukla, A. Pirani, W. Moufouma-Okia, C. Péan, R. Pidcock, S. Connors, J.B.R. Matthews, Y. Chen, X. Zhou, M.I. Gomis, E. Lonnoy, T. Maycock, M. Tignor, and T. Waterfield (eds.)].

20

o

o

(21)  IPBES 2019: Global Assessment on Biodiversity and Ecosystem Services.

21

(22)  European Environment Agency’s The European environment — state and outlook 2020 (Luxembourg: Publication Office of the EU, 2019).

22

(20)  IPCC, 2018: Global Warming of 1,5 oC. An IPCC Special Report on the impacts of global warming of 1,5 oC above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty [Masson-Delmotte, V., P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, P.R. Shukla, A. Pirani, W. Moufouma-Okia, C. Péan, R. Pidcock, S. Connors, J.B.R. Matthews, Y. Chen, X. Zhou, M.I. Gomis, E. Lonnoy, T. Maycock, M. Tignor, and T. Waterfield (eds.)].

20

o

o

(21)  IPBES 2019: Global Assessment on Biodiversity and Ecosystem Services

21

(22)  European Environment Agency’s The European environment — state and outlook 2020 (Luxembourg: Publication Office of the EU, 2019).

22

(23)  Article 2.1.a of the Paris Agreement.

23

(24)  Article 2.1.b of the Paris Agreement

24

(25)  Article 2.1.c of the Paris Agreement.

25

(23)  Article 2.1.a of the Paris Agreement.

23

(24)  Article 2.1.b of the Paris Agreement.

24

(25)  Article 2.1.c of the Paris Agreement.

25

(26)  Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

26

(27)  Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).

27

(28)  Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1).

28

(26)  Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

26

(27)  Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26).

27

(28)  Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1).

28

(29)  COM(2016) 860 final of 30 November 2016.

29

(30)  Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1)

30

(31)  Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).

31

(32)  Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (OJ L 153, 18.6.2010, p. 13).

32

(29)  COM(2016) 860 final of 30 November 2016.

29

(30)  Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1)

30

(31)  Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).

31

(32)  Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (OJ L 153, 18.6.2010, p. 13).

32

(33)  European Parliament resolution of 15 January 2020 on the European Green Deal (2019/2956(RSP)).

33

(34)  European Parliament resolution of 28 November 2019 on the climate and environment emergency (2019/2930(RSP)).

34

(35)  Conclusions adopted by the European Council at its meeting on 12 December 2019, EUCO 29/19, CO EUR 31, CONCL 9.

35

(33)  European Parliament resolution of 15 January 2020 on the European Green Deal (2019/2956(RSP)).

33

(34)  European Parliament resolution of 28 November 2019 on the climate and environment emergency (2019/2930(RSP)).

34

(34a)  
  European Parliament resolution of 28 November 2019 on the 2019 UN Climate Change Conference in Madrid, Spain (COP 25) (2019/2712(RSP)).

34a

European Parliament resolution of 28 November 2019 on the 2019 UN Climate Change Conference in Madrid, Spain (COP 25) (2019/2712(RSP)).

(35)  Conclusions adopted by the European Council at its meeting on 12 December 2019, EUCO 29/19, CO EUR 31, CONCL 9.

35

(1a)  
  Regulation (EU) .../... of the European Parliament and of the Council of ... establishing the Just Transition Fund (OJ ...).

1a

Regulation (EU) .../... of the European Parliament and of the Council of ... establishing the Just Transition Fund (OJ ...).

(9)  
  COM (2020) 562

9

COM (2020) 562

(10)  
  Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).

10

Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).

(1a)  
  Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

1a

Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

(1a)  
  Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 56, 19.6.2018, p. 26).

1a

Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 56, 19.6.2018, p. 26).

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/191 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/191

---

P9_TA(2020)0254

Equivalence of field inspections carried out in Ukraine on cereal seed-producing crops and on the equivalence of cereal seed produced in Ukraine ***I

European Parliament legislative resolution of 8 October 2020 on the proposal for a decision of the European Parliament and of the Council amending Council Decision 2003/17/EC as regards the equivalence of field inspections carried out in Ukraine on cereal seed-producing crops and on the equivalence of cereal seed produced in Ukraine (COM(2020)0137 — C9-0100/2020 — 2020/0053(COD))

(Ordinary legislative procedure: first reading)

(2021/C 395/23)

The European Parliament,

| — | having regard to the Commission proposal to Parliament and the Council (COM(2020)0137), |
| --- | --- |

—

having regard to the Commission proposal to Parliament and the Council (COM(2020)0137),

| — | having regard to Article 294(2) and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0100/2020), |
| --- | --- |

—

having regard to Article 294(2) and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0100/2020),

| — | having regard to Article 294(3) of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

| — | Having regard to the opinion of the European Economic and Social Committee of 18 September 2020 (1), |
| --- | --- |

—

Having regard to the opinion of the European Economic and Social Committee of 18 September 2020 (1),

| — | having regard to Rule 59 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 59 of its Rules of Procedure,

| — | having regard to the report of the Committee on Agriculture and Rural Development (A9-0164/2020), |
| --- | --- |

—

having regard to the report of the Committee on Agriculture and Rural Development (A9-0164/2020),

| 1. | Adopts its position at first reading hereinafter set out; |
| --- | --- |

1.

| 2. | Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal; |
| --- | --- |

2.

| 3. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

3.

---

(1)  Not yet published in the Official Journal.

---

P9_TC1-COD(2020)0053

Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Decision (EU) 2020/... of the European Parliament and of the Council amending Council Decision 2003/17/EC as regards the equivalence of field inspections carried out in Ukraine on cereal seed-producing crops and on the equivalence of cereal seed produced in Ukraine

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Decision (EU) 2020/1544.)

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/192 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/192

---

P9_TA(2020)0261

Application of railway safety and interoperability rules within the Channel tunnel ***I

European Parliament legislative resolution of 8 October 2020 on the proposal for a regulation of the European Parliament and of the Council amending Directive (EU) 2016/798, as regards the application of railway safety and interoperability rules within the Channel Fixed Link (COM(2020)0623 — C9-0212/2020 — 2020/0161(COD))

(Ordinary legislative procedure: first reading)

(2021/C 395/24)

The European Parliament,

| — | having regard to the Commission proposal to Parliament and the Council (COM(2020)0623), |
| --- | --- |

—

having regard to the Commission proposal to Parliament and the Council (COM(2020)0623),

| — | having regard to Article 294(2) and Article 91 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0212/2020), |
| --- | --- |

—

having regard to Article 294(2) and Article 91 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0212/2020),

| — | having regard to Article 294(3) of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

| — | having regard to the opinion of the European Economic and Social Committee of 16 September 2020 (1), |
| --- | --- |

—

having regard to the opinion of the European Economic and Social Committee of 16 September 2020 (1),

| — | after consulting the Committee of the Regions, |
| --- | --- |

—

after consulting the Committee of the Regions,

| — | having regard to the undertaking given by the Council representative by letter of 9 September 2020 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to the undertaking given by the Council representative by letter of 9 September 2020 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

| — | having regard to Rules 59 and 163 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 59 and 163 of its Rules of Procedure,

| 1. | Adopts its position at first reading hereinafter set out; |
| --- | --- |

1.

| 2. | Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal; |
| --- | --- |

2.

| 3. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

3.

---

(1)  Not yet published in the Official Journal.

---

P9_TC1-COD(2020)0161

Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Regulation (EU) 2020/... of the European Parliament and of the Council amending Directive (EU) 2016/798, as regards the application of railway safety and interoperability rules within the Channel Fixed Link

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2020/1530.)

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/193 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/193

---

P9_TA(2020)0262

Decision empowering France to conclude an international agreement concerning the Channel tunnel ***I

European Parliament legislative resolution of 8 October 2020 on the proposal for a decision of the European Parliament and of the Council empowering France to negotiate an agreement supplementing its existing bilateral Treaty with the United Kingdom concerning the construction and operation by private concessionaires of a Channel Fixed Link (COM(2020)0622(COR1) — C9-0211/2020 — 2020/0160(COD))

(Ordinary legislative procedure: first reading)

(2021/C 395/25)

The European Parliament,

| — | having regard to the Commission proposal to Parliament and the Council (COM(2020)0622(COR1)), |
| --- | --- |

—

having regard to the Commission proposal to Parliament and the Council (COM(2020)0622(COR1)),

| — | having regard to Article 294(2) and Articles 2(1) and 91 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0211/2020), |
| --- | --- |

—

having regard to Article 294(2) and Articles 2(1) and 91 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0211/2020),

| — | having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis, |
| --- | --- |

—

having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis,

| — | having regard to Article 294(3) of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

| — | having regard to the opinion of the European Economic and Social Committee of 16 September 2020 (1), |
| --- | --- |

—

having regard to the opinion of the European Economic and Social Committee of 16 September 2020 (1),

| — | after consulting the Committee of the Regions, |
| --- | --- |

—

after consulting the Committee of the Regions,

| — | having regard to the undertaking given by the Council representative by letter of 9 September 2020 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to the undertaking given by the Council representative by letter of 9 September 2020 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

| — | having regard to Rules 59, 40 and 163 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 59, 40 and 163 of its Rules of Procedure,

| 1. | Adopts its position at first reading hereinafter set out; |
| --- | --- |

1.

| 2. | Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal; |
| --- | --- |

2.

| 3. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

3.

---

(1)  Not yet published in the Official Journal.

---

P9_TC1-COD(2020)0160

Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Decision (EU) 2020/... of the European Parliament and of the Council empowering France to negotiate, sign and conclude an international agreement supplementing the Treaty between France and the United Kingdom of Great Britain and Northern Ireland concerning the Construction and Operation by Private Concessionaires of a Channel Fixed Link

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Decision (EU) 2020/1531.)

---

| 29.9.2021 | EN | Official Journal of the European Union | C 395/194 |
| --- | --- | --- | --- |

29.9.2021

EN

Official Journal of the European Union

C 395/194

---

P9_TA(2020)0263

Organic production: date of application and certain other dates ***I

European Parliament legislative resolution of 8 October 2020 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2018/848 on organic production as regards its date of application and certain other dates referred to in that Regulation (COM(2020)0483 — C9-0286/2020 — 2020/0231(COD))

(Ordinary legislative procedure: first reading)

(2021/C 395/26)

The European Parliament,

| — | having regard to the Commission proposal to Parliament and the Council (COM(2020)0483), |
| --- | --- |

—

having regard to the Commission proposal to Parliament and the Council (COM(2020)0483),

| — | having regard to Article 294(2) and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0286/2020), |
| --- | --- |

—

having regard to Article 294(2) and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0286/2020),

| — | having regard to Article 294(3) of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

| — | after consulting the European Economic and Social Committee, |
| --- | --- |

—

after consulting the European Economic and Social Committee,

| — | having regard to the undertaking given by the Council representative by letter of 28 September 2020 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to the undertaking given by the Council representative by letter of 28 September 2020 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

| — | having regard to Rules 59 and 163 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 59 and 163 of its Rules of Procedure,

| 1. | Adopts its position at first reading hereinafter set out; |
| --- | --- |

1.

| 2. | Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal; |
| --- | --- |

2.

| 3. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

3.

---

P9_TC1-COD(2020)0231

Position of the European Parliament adopted at first reading on 8 October 2020 with a view to the adoption of Regulation (EU) 2020/... of the European Parliament and of the Council amending Regulation (EU) 2018/848 on organic production and labelling of organic products as regards its date of application and certain other dates referred to in that Regulation

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2020/1693.)

---