# Official Journal C 353/27 S

| | ISSN 1977-091X |
| --- | --- |
| Official Journal
  of the European Union | C 353 |
| | |
| English edition | Information and Notices | Volume 5927 September 2016 |

ISSN 1977-091X

Official Journal

of the European Union

C 353

English edition

Information and Notices

Volume 5927 September 2016

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| Notice No | Contents | page |
| --- | --- | --- |
| | |
| | EUROPEAN PARLIAMENT
  2015-2016 SESSIONSittings of 18 to 21 May 2015
  The Minutes of this session have been published in
  OJ C 217, 16.6.2016 .TEXTS ADOPTEDSitting of 27 May 2015
  The Minutes of this session have been published in
  OJ C 237, 30.6.2016 .TEXTS ADOPTED | 1 |

Notice No

Contents

page

EUROPEAN PARLIAMENT
  2015-2016 SESSIONSittings of 18 to 21 May 2015
  The Minutes of this session have been published in
  OJ C 217, 16.6.2016 .TEXTS ADOPTEDSitting of 27 May 2015
  The Minutes of this session have been published in
  OJ C 237, 30.6.2016 .TEXTS ADOPTED

EUROPEAN PARLIAMENT

The Minutes of this session have been published in

OJ C 217, 16.6.2016

The Minutes of this session have been published in

OJ C 237, 30.6.2016

1

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| | I   Resolutions, recommendations and opinions |
| --- | --- |
| | RESOLUTIONS |
| | European Parliament |
| | Tuesday 19 May 2015 |
| 2016/C 353/01 | European Parliament resolution of 19 May 2015 on Financing for Development (2015/2044(INI)) | 2 |
| 2016/C 353/02 | European Parliament resolution of 19 May 2015 on safer healthcare in Europe: improving patient safety and fighting antimicrobial resistance (2014/2207(INI)) | 12 |
| 2016/C 353/03 | European Parliament resolution of 19 May 2015 on green growth opportunities for SMEs (2014/2209(INI)) | 27 |
| | Wednesday 20 May 2015 |
| 2016/C 353/04 | European Parliament resolution of 20 May 2015 on the Commission delegated directive of 30 January 2015 amending, for the purposes of adapting to technical progress, Annex III to Directive 2011/65/EU of the European Parliament and of the Council as regards an exemption for cadmium in illumination and display lighting applications (C(2015)00383 — 2015/2542(DEA)) | 35 |
| 2016/C 353/05 | European Parliament resolution of 20 May 2015 on the Commission delegated regulation of 20 February 2015 amending Regulation (EC) No 376/2008 as regards the obligation to present a licence for imports of ethyl alcohol of agricultural origin and repealing Regulation (EC) No 2336/2003 introducing certain detailed rules for applying Council Regulation (EC) No 670/2003 laying down specific measures concerning the market in ethyl alcohol of agricultural origin (C(2015)00861 — 2015/2580(DEA)) | 38 |
| 2016/C 353/06 | European Parliament resolution of 20 May 2015 on maternity leave (2015/2655(RSP)) | 39 |
| 2016/C 353/07 | European Parliament resolution of 20 May 2015 on the List of Issues adopted by the United Nations Committee on the Rights of Persons with Disabilities in relation to the initial report of the European Union (2015/2684(RSP)) | 41 |
| 2016/C 353/08 | European Parliament resolution of 20 May 2015 on the outbreak of Xylella fastidiosa affecting olive trees (2015/2652(RSP)) | 46 |
| | Thursday 21 May 2015 |
| 2016/C 353/09 | European Parliament resolution of 21 May 2015 on Zimbabwe, the case of human rights defender Itai Dzamara (2015/2710(RSP)) | 49 |
| 2016/C 353/10 | European Parliament resolution of 21 May 2015 on the plight of Rohingya refugees, including the mass graves in Thailand (2015/2711(RSP)) | 52 |
| 2016/C 353/11 | European Parliament resolution of 21 May 2015 on Swaziland, the case of human rights activists Thulani Maseko and Bheki Makhubu (2015/2712(RSP)) | 55 |
| 2016/C 353/12 | European Parliament resolution of 21 May 2015 on the implementation of the Common Security and Defence Policy (based on the Annual Report from the Council to the European Parliament on the Common Foreign and Security Policy) (2014/2220(INI)) | 59 |
| 2016/C 353/13 | European Parliament resolution of 21 May 2015 on financing the Common Security and Defence Policy (2014/2258(INI)) | 68 |
| 2016/C 353/14 | European Parliament resolution of 21 May 2015 on the impact of developments in European defence markets on the security and defence capabilities in Europe (2015/2037(INI)) | 74 |
| | OPINIONS |
| | European Parliament |
| | Wednesday 27 May 2015 |
| 2016/C 353/15 | European Parliament decision of 27 May 2015 on the opening of, and mandate for, interinstitutional negotiations on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1308/2013 and Regulation (EU) No 1306/2013 as regards the aid scheme for the supply of fruit and vegetables, bananas and milk in the educational establishments (COM(2014)0032 — C8-0025/2014 — 2014/0014(COD)) | 82 |

I   Resolutions, recommendations and opinions

RESOLUTIONS

European Parliament

Tuesday 19 May 2015

2016/C 353/01

European Parliament resolution of 19 May 2015 on Financing for Development (2015/2044(INI))

2

2016/C 353/02

European Parliament resolution of 19 May 2015 on safer healthcare in Europe: improving patient safety and fighting antimicrobial resistance (2014/2207(INI))

12

2016/C 353/03

European Parliament resolution of 19 May 2015 on green growth opportunities for SMEs (2014/2209(INI))

27

Wednesday 20 May 2015

2016/C 353/04

European Parliament resolution of 20 May 2015 on the Commission delegated directive of 30 January 2015 amending, for the purposes of adapting to technical progress, Annex III to Directive 2011/65/EU of the European Parliament and of the Council as regards an exemption for cadmium in illumination and display lighting applications (C(2015)00383 — 2015/2542(DEA))

35

2016/C 353/05

European Parliament resolution of 20 May 2015 on the Commission delegated regulation of 20 February 2015 amending Regulation (EC) No 376/2008 as regards the obligation to present a licence for imports of ethyl alcohol of agricultural origin and repealing Regulation (EC) No 2336/2003 introducing certain detailed rules for applying Council Regulation (EC) No 670/2003 laying down specific measures concerning the market in ethyl alcohol of agricultural origin (C(2015)00861 — 2015/2580(DEA))

38

2016/C 353/06

European Parliament resolution of 20 May 2015 on maternity leave (2015/2655(RSP))

39

2016/C 353/07

European Parliament resolution of 20 May 2015 on the List of Issues adopted by the United Nations Committee on the Rights of Persons with Disabilities in relation to the initial report of the European Union (2015/2684(RSP))

41

2016/C 353/08

European Parliament resolution of 20 May 2015 on the outbreak of Xylella fastidiosa affecting olive trees (2015/2652(RSP))

Xylella fastidiosa

46

Thursday 21 May 2015

2016/C 353/09

European Parliament resolution of 21 May 2015 on Zimbabwe, the case of human rights defender Itai Dzamara (2015/2710(RSP))

49

2016/C 353/10

European Parliament resolution of 21 May 2015 on the plight of Rohingya refugees, including the mass graves in Thailand (2015/2711(RSP))

52

2016/C 353/11

European Parliament resolution of 21 May 2015 on Swaziland, the case of human rights activists Thulani Maseko and Bheki Makhubu (2015/2712(RSP))

55

2016/C 353/12

European Parliament resolution of 21 May 2015 on the implementation of the Common Security and Defence Policy (based on the Annual Report from the Council to the European Parliament on the Common Foreign and Security Policy) (2014/2220(INI))

59

2016/C 353/13

European Parliament resolution of 21 May 2015 on financing the Common Security and Defence Policy (2014/2258(INI))

68

2016/C 353/14

European Parliament resolution of 21 May 2015 on the impact of developments in European defence markets on the security and defence capabilities in Europe (2015/2037(INI))

74

OPINIONS

European Parliament

Wednesday 27 May 2015

2016/C 353/15

European Parliament decision of 27 May 2015 on the opening of, and mandate for, interinstitutional negotiations on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1308/2013 and Regulation (EU) No 1306/2013 as regards the aid scheme for the supply of fruit and vegetables, bananas and milk in the educational establishments (COM(2014)0032 — C8-0025/2014 — 2014/0014(COD))

82

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| | II   Information |
| --- | --- |
| | INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES |
| | European Parliament |
| | Tuesday 19 May 2015 |
| 2016/C 353/16 | European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Viktor Uspaskich (2014/2203(IMM)) | 106 |
| 2016/C 353/17 | European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Jérôme Lavrilleux (2015/2014(IMM)) | 108 |
| 2016/C 353/18 | European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Janusz Korwin-Mikke (2015/2049(IMM)) | 110 |
| 2016/C 353/19 | European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Theodoros Zagorakis (II) (2015/2071(IMM)) | 112 |

II   Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Parliament

Tuesday 19 May 2015

2016/C 353/16

European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Viktor Uspaskich (2014/2203(IMM))

106

2016/C 353/17

European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Jérôme Lavrilleux (2015/2014(IMM))

108

2016/C 353/18

European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Janusz Korwin-Mikke (2015/2049(IMM))

110

2016/C 353/19

European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Theodoros Zagorakis (II) (2015/2071(IMM))

112

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| | III   Preparatory acts |
| --- | --- |
| | EUROPEAN PARLIAMENT |
| | Tuesday 19 May 2015 |
| 2016/C 353/20 | P8_TA(2015)0189Safeguard measures provided for in the Agreement with the Swiss Confederation ***IEuropean Parliament legislative resolution of 19 May 2015 on the proposal for a regulation of the European Parliament and of the Council on the safeguard measures provided for in the Agreement between the European Economic Community and the Swiss Confederation (codified text) (COM(2014)0305 — C8-0009/2014 — 2014/0158(COD))P8_TC1-COD(2014)0158Position of the European Parliament adopted at first reading on 19 May 2015 with a view to the adoption of Regulation (EU) 2015/... of the European Parliament and of the Council on the safeguard measures provided for in the Agreement between the European Economic Community and the Swiss Confederation (codification) | 114 |
| 2016/C 353/21 | European Parliament legislative resolution of 19 May 2015 on the draft Council decision on the conclusion, on behalf of the European Union, of the European Convention on the legal protection of services based on, or consisting of, conditional access (07597/1/2014 — C8-0286/2014 — 2010/0361(NLE)) | 115 |
| 2016/C 353/22 | Amendments adopted by the European Parliament on 19 May 2015 on the proposal for a regulation of the European Parliament and of the Council on indices used as benchmarks in financial instruments and financial contracts (COM(2013)0641 — C7-0301/2013 — 2013/0314(COD)) | 116 |
| | Wednesday 20 May 2015 |
| 2016/C 353/23 | European Parliament decision to raise no objections to the Commission delegated regulation of 27 April 2015 amending Annex I to Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (C(2015)02802 — 2015/2673(DEA)) | 168 |
| 2016/C 353/24 | European Parliament legislative resolution of 20 May 2015 on the draft Council decision on the conclusion, on behalf of the European Union and its Member States, of the Additional Protocol to the Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, of the other part, to take account of the accession of the Republic of Croatia to the European Union (07657/2015 — C8-0103/2015 — 2014/0236(NLE)) | 169 |
| 2016/C 353/25 | European Parliament legislative resolution of 20 May 2015 on the Council position at first reading with a view to the adoption of a directive of the European Parliament and of the Council 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 (05933/4/2015 — C8-0109/2015 — 2013/0025(COD)) | 170 |
| 2016/C 353/26 | European Parliament legislative resolution of 20 May 2015 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 information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (05932/2/2015 — C8-0108/2015 — 2013/0024(COD)) | 171 |
| 2016/C 353/27 | European Parliament legislative resolution of 20 May 2015 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 insolvency proceedings (recast) (16636/5/2014 — C8-0090/2015 — 2012/0360(COD)) | 172 |
| 2016/C 353/28 | Amendments adopted by the European Parliament on 20 May 2015 on the proposal for a regulation of the European Parliament and of the Council setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas (COM(2014)0111 — C7-0092/2014 — 2014/0059(COD)) | 173 |

III   Preparatory acts

EUROPEAN PARLIAMENT

Tuesday 19 May 2015

2016/C 353/20

P8_TA(2015)0189Safeguard measures provided for in the Agreement with the Swiss Confederation ***IEuropean Parliament legislative resolution of 19 May 2015 on the proposal for a regulation of the European Parliament and of the Council on the safeguard measures provided for in the Agreement between the European Economic Community and the Swiss Confederation (codified text) (COM(2014)0305 — C8-0009/2014 — 2014/0158(COD))P8_TC1-COD(2014)0158Position of the European Parliament adopted at first reading on 19 May 2015 with a view to the adoption of Regulation (EU) 2015/... of the European Parliament and of the Council on the safeguard measures provided for in the Agreement between the European Economic Community and the Swiss Confederation (codification)

114

2016/C 353/21

European Parliament legislative resolution of 19 May 2015 on the draft Council decision on the conclusion, on behalf of the European Union, of the European Convention on the legal protection of services based on, or consisting of, conditional access (07597/1/2014 — C8-0286/2014 — 2010/0361(NLE))

115

2016/C 353/22

Amendments adopted by the European Parliament on 19 May 2015 on the proposal for a regulation of the European Parliament and of the Council on indices used as benchmarks in financial instruments and financial contracts (COM(2013)0641 — C7-0301/2013 — 2013/0314(COD))

116

Wednesday 20 May 2015

2016/C 353/23

European Parliament decision to raise no objections to the Commission delegated regulation of 27 April 2015 amending Annex I to Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (C(2015)02802 — 2015/2673(DEA))

168

2016/C 353/24

European Parliament legislative resolution of 20 May 2015 on the draft Council decision on the conclusion, on behalf of the European Union and its Member States, of the Additional Protocol to the Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, of the other part, to take account of the accession of the Republic of Croatia to the European Union (07657/2015 — C8-0103/2015 — 2014/0236(NLE))

169

2016/C 353/25

European Parliament legislative resolution of 20 May 2015 on the Council position at first reading with a view to the adoption of a directive of the European Parliament and of the Council 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 (05933/4/2015 — C8-0109/2015 — 2013/0025(COD))

170

2016/C 353/26

European Parliament legislative resolution of 20 May 2015 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 information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (05932/2/2015 — C8-0108/2015 — 2013/0024(COD))

171

2016/C 353/27

European Parliament legislative resolution of 20 May 2015 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 insolvency proceedings (recast) (16636/5/2014 — C8-0090/2015 — 2012/0360(COD))

172

2016/C 353/28

Amendments adopted by the European Parliament on 20 May 2015 on the proposal for a regulation of the European Parliament and of the Council setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas (COM(2014)0111 — C7-0092/2014 — 2014/0059(COD))

173

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| 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 | |
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EN

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27.9.2016

| 27.9.2016 | EN | Official Journal of the European Union | C 353/1 |
| --- | --- | --- | --- |

EN

Official Journal of the European Union

C 353/1

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EUROPEAN PARLIAMENT

2015-2016 SESSION

Sittings of 18 to 21 May 2015

The Minutes of this session have been published in

  OJ C 217, 16.6.2016
  .

TEXTS ADOPTED

Sitting of 27 May 2015

The Minutes of this session have been published in

  OJ C 237, 30.6.2016
  .

TEXTS ADOPTED

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I Resolutions, recommendations and opinions

RESOLUTIONS

European Parliament

Tuesday 19 May 2015

| 27.9.2016 | EN | Official Journal of the European Union | C 353/2 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/2

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P8_TA(2015)0196

Financing for development

European Parliament resolution of 19 May 2015 on Financing for Development (2015/2044(INI))

(2016/C 353/01)

The European Parliament,

| — | having regard to the outcome documents of the First and Second International Conferences on Financing for Development, notably the Monterrey Consensus of 2002 and the Doha Declaration of 2008, |
| --- | --- |

—

having regard to the outcome documents of the First and Second International Conferences on Financing for Development, notably the Monterrey Consensus of 2002 and the Doha Declaration of 2008,

| — | having regard to the UN General Assembly resolutions 68/204 and 68/279 on the Third International Conference on Financing for Development, to be held in Addis Ababa (Ethiopia) from 13 to 16 July 2015, |
| --- | --- |

—

having regard to the UN General Assembly resolutions 68/204 and 68/279 on the Third International Conference on Financing for Development, to be held in Addis Ababa (Ethiopia) from 13 to 16 July 2015,

| — | having regard to the ‘Elements’ paper of 21 January 2015 presented by the Co-chairs of the Preparatory Process for the Third International Conference on Financing for Development, |
| --- | --- |

—

having regard to the ‘Elements’ paper of 21 January 2015 presented by the Co-chairs of the Preparatory Process for the Third International Conference on Financing for Development,

| — | having regard to the UN Secretary-General’s Synthesis Report of December 2014 on the Post-2015 Agenda, entitled ‘The Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the Planet’, |
| --- | --- |

—

having regard to the UN Secretary-General’s Synthesis Report of December 2014 on the Post-2015 Agenda, entitled ‘The Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the Planet’,

| — | having regard to the report of August 2014 by the Intergovernmental Committee of Experts on Sustainable Development Financing, |
| --- | --- |

—

having regard to the report of August 2014 by the Intergovernmental Committee of Experts on Sustainable Development Financing,

| — | having regard to the report of July 2014 by the UN Open Working Group on Sustainable Development Goals, |
| --- | --- |

—

having regard to the report of July 2014 by the UN Open Working Group on Sustainable Development Goals,

| — | having regard to the document ‘UNCTAD’s World Investment Report 2014 — Investing in the SDGs: An Action Plan’ (1), |
| --- | --- |

—

having regard to the document ‘UNCTAD’s World Investment Report 2014 — Investing in the SDGs: An Action Plan’ (1),

| — | having regard to the outcome document of the UN Conference on Sustainable Development (Rio+20) of June 2012, ‘The Future We Want’, |
| --- | --- |

—

having regard to the outcome document of the UN Conference on Sustainable Development (Rio+20) of June 2012, ‘The Future We Want’,

| — | having regard to the UN General Assembly Resolution ‘Towards the establishment of a multilateral legal framework for sovereign debt restructurings’ of September 2014, |
| --- | --- |

—

having regard to the UN General Assembly Resolution ‘Towards the establishment of a multilateral legal framework for sovereign debt restructurings’ of September 2014,

| — | having regard to the Commission communication of 5 February 2015 entitled ‘A Global Partnership for Poverty Eradication and Sustainable Development after 2015’ (COM(2015)0044), |
| --- | --- |

—

having regard to the Commission communication of 5 February 2015 entitled ‘A Global Partnership for Poverty Eradication and Sustainable Development after 2015’ (COM(2015)0044),

| — | having regard to the Commission communication of 2 June 2014 entitled ‘A decent life for all: From vision to collective action’ (COM(2014)0335), |
| --- | --- |

—

having regard to the Commission communication of 2 June 2014 entitled ‘A decent life for all: From vision to collective action’ (COM(2014)0335),

| — | having regard to the Commission communication of 16 July 2013 entitled ‘Beyond 2015: towards a comprehensive and integrated approach to financing poverty eradication and sustainable development’ (COM(2013)0531), |
| --- | --- |

—

having regard to the Commission communication of 16 July 2013 entitled ‘Beyond 2015: towards a comprehensive and integrated approach to financing poverty eradication and sustainable development’ (COM(2013)0531),

| — | having regard to the Commission communication of 27 February 2013 entitled ‘A decent life for all: Ending poverty and giving the world a sustainable future’ (COM(2013)0092), |
| --- | --- |

—

having regard to the Commission communication of 27 February 2013 entitled ‘A decent life for all: Ending poverty and giving the world a sustainable future’ (COM(2013)0092),

| — | having regard to the Foreign Affairs Council conclusions of 12 December 2013 on policy coherence for development, |
| --- | --- |

—

having regard to the Foreign Affairs Council conclusions of 12 December 2013 on policy coherence for development,

| — | having regard to the General Affairs Council conclusions of 16 December 2014 on a transformative post-2015 agenda (2), |
| --- | --- |

—

having regard to the General Affairs Council conclusions of 16 December 2014 on a transformative post-2015 agenda (2),

| — | having regard to the Foreign Affairs Council conclusions of 12 December 2013 on financing poverty eradication and sustainable development beyond 2015 (3), |
| --- | --- |

—

having regard to the Foreign Affairs Council conclusions of 12 December 2013 on financing poverty eradication and sustainable development beyond 2015 (3),

| — | having regard to the Foreign Affairs Council conclusions of 12 December 2014 on a stronger role of the private sector in development cooperation, |
| --- | --- |

—

having regard to the Foreign Affairs Council conclusions of 12 December 2014 on a stronger role of the private sector in development cooperation,

| — | having regard to the General Affairs Council conclusions of 25 June 2013 on the Overarching Post 2015 Agenda (4), |
| --- | --- |

—

having regard to the General Affairs Council conclusions of 25 June 2013 on the Overarching Post 2015 Agenda (4),

| — | having regard to its resolution of 25 November 2014 on the EU and the global development framework after 2015 (5), |
| --- | --- |

—

having regard to its resolution of 25 November 2014 on the EU and the global development framework after 2015 (5),

| — | having regard to its resolution of 23 September 2008 on the follow-up to the Monterrey Conference of 2002 on Financing for Development (6), |
| --- | --- |

—

having regard to its resolution of 23 September 2008 on the follow-up to the Monterrey Conference of 2002 on Financing for Development (6),

| — | having regard to its resolutions of 26 November 2014 on the 2014 UN Climate Change Conference — COP 20 in Lima, Peru (1-12 December 2014) (7); of 26 February 2014 on promoting development through responsible business practices, including the role of extractive industries in developing countries (8); of 8 October 2013 on ‘Corruption in the public and private sectors: the impact on human rights in third countries’ (9); of 21 May 2013 on ‘Fight against Tax Fraud, Tax Evasion and Tax Havens’ (10); and of 16 April 2013 on advancing development through trade (11), |
| --- | --- |

—

having regard to its resolutions of 26 November 2014 on the 2014 UN Climate Change Conference — COP 20 in Lima, Peru (1-12 December 2014) (7); of 26 February 2014 on promoting development through responsible business practices, including the role of extractive industries in developing countries (8); of 8 October 2013 on ‘Corruption in the public and private sectors: the impact on human rights in third countries’ (9); of 21 May 2013 on ‘Fight against Tax Fraud, Tax Evasion and Tax Havens’ (10); and of 16 April 2013 on advancing development through trade (11),

| — | having regard to Decision No 472/2014/EU of the European Parliament and of the Council of 16 April 2014 on the European Year for Development (2015) (12), |
| --- | --- |

—

having regard to Decision No 472/2014/EU of the European Parliament and of the Council of 16 April 2014 on the European Year for Development (2015) (12),

| — | having regard to Regulation (EU) No 233/2014 of the European Parliament and of the Council of 11 March 2014 establishing a financing instrument for development cooperation for the period 2014-2020, |
| --- | --- |

—

having regard to Regulation (EU) No 233/2014 of the European Parliament and of the Council of 11 March 2014 establishing a financing instrument for development cooperation for the period 2014-2020,

| — | having regard to Article 208 TFEU, which establishes eradication of poverty as the primary objective of EU development policy and the principle of policy coherence for development, |
| --- | --- |

—

having regard to Article 208 TFEU, which establishes eradication of poverty as the primary objective of EU development policy and the principle of policy coherence for development,

| — | having regard to Rule 52 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 52 of its Rules of Procedure,

| — | having regard to the report of the Committee on Development and the opinion of the Committee on Budgets (A8-0143/2015), |
| --- | --- |

—

having regard to the report of the Committee on Development and the opinion of the Committee on Budgets (A8-0143/2015),

| A. | whereas 2015 is a crucial year for global development efforts, with the adoption of the Sustainable Development Goals (SDGs) and an agreement on global climate action, both to be valid until 2030; |
| --- | --- |

A.

whereas 2015 is a crucial year for global development efforts, with the adoption of the Sustainable Development Goals (SDGs) and an agreement on global climate action, both to be valid until 2030;

| B. | whereas the Third International Conference on Financing for Development (FfD), which will be held in Addis Ababa, Ethiopia, from 13 to 16 July 2015, must create the necessary conditions for financing and implementing the post-2015 agenda, and whereas the success of that agenda will be determined by the level of ambition demonstrated at the conference; |
| --- | --- |

B.

whereas the Third International Conference on Financing for Development (FfD), which will be held in Addis Ababa, Ethiopia, from 13 to 16 July 2015, must create the necessary conditions for financing and implementing the post-2015 agenda, and whereas the success of that agenda will be determined by the level of ambition demonstrated at the conference;

| C. | whereas 1,5 billion people are still living in poverty with deprivation in health, education and living standards, notably in conflict-affected and fragile states; whereas this is not acceptable, given that sufficient resources exist in the world to progressively end this situation; |
| --- | --- |

C.

whereas 1,5 billion people are still living in poverty with deprivation in health, education and living standards, notably in conflict-affected and fragile states; whereas this is not acceptable, given that sufficient resources exist in the world to progressively end this situation;

| D. | whereas eradication of poverty and inequality can only be achieved through mobilisation of sufficient and appropriate resources for all, and the better targeting of marginalised groups, such as children, women, the elderly or persons with disabilities; whereas despite a significant reduction in extreme poverty, progress for children has been slower, making the need for investing in children — both through domestic resource mobilisation and international public financing — a key factor; |
| --- | --- |

D.

whereas eradication of poverty and inequality can only be achieved through mobilisation of sufficient and appropriate resources for all, and the better targeting of marginalised groups, such as children, women, the elderly or persons with disabilities; whereas despite a significant reduction in extreme poverty, progress for children has been slower, making the need for investing in children — both through domestic resource mobilisation and international public financing — a key factor;

| E. | whereas there can be no sustainable development without peace and security, as acknowledged by the 2005 European Consensus on Development; |
| --- | --- |

E.

whereas there can be no sustainable development without peace and security, as acknowledged by the 2005 European Consensus on Development;

| F. | whereas three-quarters of the world’s poorest people — an estimated 960 million — currently live in middle-income countries, and a new development paradigm therefore requires programmes targeted both on poor people and on poor countries; |
| --- | --- |

F.

whereas three-quarters of the world’s poorest people — an estimated 960 million — currently live in middle-income countries, and a new development paradigm therefore requires programmes targeted both on poor people and on poor countries;

| G. | whereas UNCTAD estimates the financing needs in developing countries for the emerging SDGs at about USD 3,9 trillion per year, with USD 2,5 trillion per year currently missing; whereas the costs of weak action will ultimately be much greater than the costs of decisive action for sustainable development; |
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G.

whereas UNCTAD estimates the financing needs in developing countries for the emerging SDGs at about USD 3,9 trillion per year, with USD 2,5 trillion per year currently missing; whereas the costs of weak action will ultimately be much greater than the costs of decisive action for sustainable development;

| H. | whereas the magnitude of the SDGs financing challenge demands a strong and global partnership and the use of all forms of financing (domestic, international, public, private and innovative sources) and non-financial means; whereas private financing can complement, but not substitute public funding; |
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H.

whereas the magnitude of the SDGs financing challenge demands a strong and global partnership and the use of all forms of financing (domestic, international, public, private and innovative sources) and non-financial means; whereas private financing can complement, but not substitute public funding;

| I. | whereas domestic resource mobilisation and Official Development Assistance (ODA) are non-substitutable anchors of development finance which must be strengthened; |
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I.

whereas domestic resource mobilisation and Official Development Assistance (ODA) are non-substitutable anchors of development finance which must be strengthened;

| J. | whereas developing countries’ potentials for domestic resource mobilisation are significant, but there are limits in the current situation to what countries can accomplish on their own; whereas tax resources remain low as a proportion of GDP in most developing countries and it is thus essential to promote well-balanced, fair and efficient tax systems based on the ability to pay of individual taxpayers and companies; whereas domestic resource mobilisation also requires a fair and transparent distribution of the benefits of natural resources; |
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J.

whereas developing countries’ potentials for domestic resource mobilisation are significant, but there are limits in the current situation to what countries can accomplish on their own; whereas tax resources remain low as a proportion of GDP in most developing countries and it is thus essential to promote well-balanced, fair and efficient tax systems based on the ability to pay of individual taxpayers and companies; whereas domestic resource mobilisation also requires a fair and transparent distribution of the benefits of natural resources;

| K. | whereas very few developed countries are fulfilling their commitment of providing 0,7 % of Gross National Income (GNI) as ODA, including 0,15-0,20 % of GNI to Least Developed Countries (LDCs); whereas the Member States which joined the EU in 2004 or later have committed to strive towards the target of 0,33 % of GNI, but none of them has yet reached this target; |
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K.

whereas very few developed countries are fulfilling their commitment of providing 0,7 % of Gross National Income (GNI) as ODA, including 0,15-0,20 % of GNI to Least Developed Countries (LDCs); whereas the Member States which joined the EU in 2004 or later have committed to strive towards the target of 0,33 % of GNI, but none of them has yet reached this target;

| L. | whereas many less developed countries are vulnerable, or have been made vulnerable, as a result of external events such as armed conflicts, epidemics such as Ebola, and natural disasters, and whereas they need greater support; |
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L.

whereas many less developed countries are vulnerable, or have been made vulnerable, as a result of external events such as armed conflicts, epidemics such as Ebola, and natural disasters, and whereas they need greater support;

| M. | whereas poverty reduction, economic growth and security depend to a large extent on the ability of a state to perform its sovereign functions to ensure the rule of law and to provide basic public services such as access to education and healthcare, while respecting the principle of ownership; whereas these countries need, in particular, greater support to introduce robust health systems; |
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M.

whereas poverty reduction, economic growth and security depend to a large extent on the ability of a state to perform its sovereign functions to ensure the rule of law and to provide basic public services such as access to education and healthcare, while respecting the principle of ownership; whereas these countries need, in particular, greater support to introduce robust health systems;

| N. | whereas the development agenda is becoming broader and it is therefore important to recognise and further incentivise the efforts that are being made above and beyond ODA; whereas despite challenging fiscal circumstances in many OECD countries, high levels of ODA were maintained and ODA reached an all-time high of USD 134,8 billion in 2013; whereas ODA can be a catalyst to attract private investment and the relevance of innovative financial instruments in this context should be noted; |
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N.

whereas the development agenda is becoming broader and it is therefore important to recognise and further incentivise the efforts that are being made above and beyond ODA; whereas despite challenging fiscal circumstances in many OECD countries, high levels of ODA were maintained and ODA reached an all-time high of USD 134,8 billion in 2013; whereas ODA can be a catalyst to attract private investment and the relevance of innovative financial instruments in this context should be noted;

| O. | whereas the private sector and Foreign Direct Investment (FDI), when properly regulated and linked to concrete improvements in the domestic economy, have an important potential to contribute to the achievement of the SDGs, as reflected in UNCTAD’s proposal for an Action Plan for SDG investment; |
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O.

whereas the private sector and Foreign Direct Investment (FDI), when properly regulated and linked to concrete improvements in the domestic economy, have an important potential to contribute to the achievement of the SDGs, as reflected in UNCTAD’s proposal for an Action Plan for SDG investment;

| P. | whereas private capital flow affects developing countries in many different ways, positive as well as negative; whereas financial flows to developing countries from private sources are significant but largely volatile, unevenly distributed and often associated with outflows such as profit repatriation, which since 2010, have exceeded new inflows of FDI; |
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P.

whereas private capital flow affects developing countries in many different ways, positive as well as negative; whereas financial flows to developing countries from private sources are significant but largely volatile, unevenly distributed and often associated with outflows such as profit repatriation, which since 2010, have exceeded new inflows of FDI;

| Q. | whereas civil society plays a key role in ensuring a universal and inclusive process, at both national and global level, and contributes to good governance and accountability; whereas development assistance and corruption are mutually incompatible; |
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Q.

whereas civil society plays a key role in ensuring a universal and inclusive process, at both national and global level, and contributes to good governance and accountability; whereas development assistance and corruption are mutually incompatible;

| R. | whereas it is important to promote the use of banking services in developing countries; |
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R.

whereas it is important to promote the use of banking services in developing countries;

| S. | whereas the EU and its Member States, as the largest donors of development aid, must lead the FfD process and help bring about a credible response to the development finance challenges, ensuring policy coherence for development within the post-2015 agenda; whereas other developed and emerging countries should follow the EU’s example; |
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S.

whereas the EU and its Member States, as the largest donors of development aid, must lead the FfD process and help bring about a credible response to the development finance challenges, ensuring policy coherence for development within the post-2015 agenda; whereas other developed and emerging countries should follow the EU’s example;

A global partnership

| 1. | Welcomes the Zero Draft of the Outcome Document of the Third Financing for Development Conference, and calls for the EU and its Member States to support it; |
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1.

Welcomes the Zero Draft of the Outcome Document of the Third Financing for Development Conference, and calls for the EU and its Member States to support it;

| 2. | Welcomes the UN Secretary-General’s Synthesis Report and its transformative, universal, holistic and integrated approach to an ambitious global partnership for new development goals and the associated financial framework, focused on poverty eradication, universality of human rights and gender equality; insists that without comprehensive and substantial means of implementation such an ambitious partnership will not be successful; |
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2.

Welcomes the UN Secretary-General’s Synthesis Report and its transformative, universal, holistic and integrated approach to an ambitious global partnership for new development goals and the associated financial framework, focused on poverty eradication, universality of human rights and gender equality; insists that without comprehensive and substantial means of implementation such an ambitious partnership will not be successful;

| 3. | Urges the EU to affirm its political leadership throughout the preparatory process towards the definition of a sustainable development framework, a renewed agreement on financing for development and other means of implementation, along the commitments and values stated in its founding Treaties; considers that the provision of EU development aid should not be conditioned by other partner donors; |
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3.

Urges the EU to affirm its political leadership throughout the preparatory process towards the definition of a sustainable development framework, a renewed agreement on financing for development and other means of implementation, along the commitments and values stated in its founding Treaties; considers that the provision of EU development aid should not be conditioned by other partner donors;

| 4. | Insists that the EU and its Member States should maintain their position as major donors of development aid while pushing for shared responsibility; calls on high-income countries, upper middle-income countries and emerging economies to take on significant commitments; |
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4.

Insists that the EU and its Member States should maintain their position as major donors of development aid while pushing for shared responsibility; calls on high-income countries, upper middle-income countries and emerging economies to take on significant commitments;

| 5. | Welcomes the recent Commission communication entitled ‘A Global Partnership for Poverty Eradication and Sustainable Development after 2015’, for its comprehensiveness, for its policy coherence focus and for confirming that the EU is committed to playing its full part in this global partnership; however, regrets a certain lack of commitment regarding the timeline for future financial targets; |
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5.

Welcomes the recent Commission communication entitled ‘A Global Partnership for Poverty Eradication and Sustainable Development after 2015’, for its comprehensiveness, for its policy coherence focus and for confirming that the EU is committed to playing its full part in this global partnership; however, regrets a certain lack of commitment regarding the timeline for future financial targets;

International public financing

| 6. | Stresses that ODA remains a key instrument for financing development; urges the EU and its Member States to re-commit without delay to the 0,7 % of GNI target for ODA, with 50 % of ODA and at least 0,2 % of GNI being reserved for LDCs, and to present, taking into account budgetary constraints, multiannual budget timetables for the scale-up to these levels by 2020; welcomes the EU’s firm stance on focusing efforts on the quantity and quality of development aid; calls on other developed partners and on emerging countries to scale up their development assistance, and on the Commission and the Member States to persuade public and private donors around the world to honour their financial promises and to make new commitments; stresses that all donors should ensure that ODA represents genuine transfers to developing countries; |
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6.

Stresses that ODA remains a key instrument for financing development; urges the EU and its Member States to re-commit without delay to the 0,7 % of GNI target for ODA, with 50 % of ODA and at least 0,2 % of GNI being reserved for LDCs, and to present, taking into account budgetary constraints, multiannual budget timetables for the scale-up to these levels by 2020; welcomes the EU’s firm stance on focusing efforts on the quantity and quality of development aid; calls on other developed partners and on emerging countries to scale up their development assistance, and on the Commission and the Member States to persuade public and private donors around the world to honour their financial promises and to make new commitments; stresses that all donors should ensure that ODA represents genuine transfers to developing countries;

| 7. | Stresses that the EU and other developed countries must honour their commitment to provide scaled-up, new and additional climate finance in order to reach by 2020 the goal of jointly mobilising USD 100 billion annually, from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources; deplores the lack of progress on the additionality of climate finance to ODA; calls for a joint international effort from developed and emerging countries to find new and additional climate finance for developing countries — though not at the expense of the development budget — in the agreement on Global Climate Action to be concluded at the Paris Conference to be held in December 2015; considers that the EU should propose intermediate steps on the path to full additionality; urges Member States to use revenues raised through carbon markets for climate action in developing countries; also calls on emerging economies to mobilise climate finance for developing countries; |
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7.

Stresses that the EU and other developed countries must honour their commitment to provide scaled-up, new and additional climate finance in order to reach by 2020 the goal of jointly mobilising USD 100 billion annually, from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources; deplores the lack of progress on the additionality of climate finance to ODA; calls for a joint international effort from developed and emerging countries to find new and additional climate finance for developing countries — though not at the expense of the development budget — in the agreement on Global Climate Action to be concluded at the Paris Conference to be held in December 2015; considers that the EU should propose intermediate steps on the path to full additionality; urges Member States to use revenues raised through carbon markets for climate action in developing countries; also calls on emerging economies to mobilise climate finance for developing countries;

| 8. | Supports innovative sources for additional development and climate finance, including financial transaction taxes, carbon taxes on international aviation and maritime transport, and automatic allocation of carbon market revenues; welcomes further European and international efforts to identify further additional sources; |
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8.

Supports innovative sources for additional development and climate finance, including financial transaction taxes, carbon taxes on international aviation and maritime transport, and automatic allocation of carbon market revenues; welcomes further European and international efforts to identify further additional sources;

| 9. | Emphasises that ODA should remain the standard measure of financial efforts made; supports the introduction of a complementary total official support for sustainable development (TOSSD) indicator provided it is made fully clear that this shall not in any way replace or reduce the importance of the ODA measure; |
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9.

Emphasises that ODA should remain the standard measure of financial efforts made; supports the introduction of a complementary total official support for sustainable development (TOSSD) indicator provided it is made fully clear that this shall not in any way replace or reduce the importance of the ODA measure;

| 10. | Notes that while most ODA is provided in the form of grants, concessional loans are also important but add to debt burdens and risk leading to a debt bubble, notably in sub-Saharan African and Caribbean countries which have limited revenues to service debt; calls, accordingly, on donors to give aid to LDCs in the form of grants; considers that concessional loans might not be suitable for investments in social sectors where profit generation is not sought; welcomes the agreement by the OECD Development Assistance Committee (OECD-DAC) to modernise the reporting of concessional loans by introducing a grant equivalent system for the purpose of calculating ODA figures; |
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10.

Notes that while most ODA is provided in the form of grants, concessional loans are also important but add to debt burdens and risk leading to a debt bubble, notably in sub-Saharan African and Caribbean countries which have limited revenues to service debt; calls, accordingly, on donors to give aid to LDCs in the form of grants; considers that concessional loans might not be suitable for investments in social sectors where profit generation is not sought; welcomes the agreement by the OECD Development Assistance Committee (OECD-DAC) to modernise the reporting of concessional loans by introducing a grant equivalent system for the purpose of calculating ODA figures;

| 11. | Points out that the EU is the world’s leading donor of development aid, accounting for almost 60 % of global official development aid; calls, nevertheless, on the Commission to provide clear and transparent data on the share of the overall budget dedicated to EU development aid so as to be able to assess the follow-up to the Monterrey Consensus by all European donors; also expresses its regret that the level of EU financial contributions to developing countries lacks visibility, and invites the Commission to develop appropriate and targeted communication and information tools to increase the visibility of EU development aid; |
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11.

Points out that the EU is the world’s leading donor of development aid, accounting for almost 60 % of global official development aid; calls, nevertheless, on the Commission to provide clear and transparent data on the share of the overall budget dedicated to EU development aid so as to be able to assess the follow-up to the Monterrey Consensus by all European donors; also expresses its regret that the level of EU financial contributions to developing countries lacks visibility, and invites the Commission to develop appropriate and targeted communication and information tools to increase the visibility of EU development aid;

| 12. | Calls on the EU to take account of long-term financial requirements by favouring and leading a more strategic, ambitious and universal approach in line with the SDGs; |
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12.

Calls on the EU to take account of long-term financial requirements by favouring and leading a more strategic, ambitious and universal approach in line with the SDGs;

| 13. | Recalls the EU budget’s contribution to financing for development, with EUR 19,7 billion for development cooperation and EUR 6,8 billion for humanitarian aid between 2014 and 2020, in addition to the EUR 2,2 billion emergency aid reserve; also points to the EUR 30,5 billion European Development Fund (EDF); advocates the budgetisation of the EDF, which would bring advantages such as increased transparency, visibility, efficiency and efficacy; welcomes the opportunity provided by the post-electoral mid-term review and the revision of the multiannual financial framework to take into account the increasing structural needs of humanitarian relief and the development needs of the poorest and most fragile countries; |
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13.

Recalls the EU budget’s contribution to financing for development, with EUR 19,7 billion for development cooperation and EUR 6,8 billion for humanitarian aid between 2014 and 2020, in addition to the EUR 2,2 billion emergency aid reserve; also points to the EUR 30,5 billion European Development Fund (EDF); advocates the budgetisation of the EDF, which would bring advantages such as increased transparency, visibility, efficiency and efficacy; welcomes the opportunity provided by the post-electoral mid-term review and the revision of the multiannual financial framework to take into account the increasing structural needs of humanitarian relief and the development needs of the poorest and most fragile countries;

| 14. | Notes that the 2015 budget dedicates EUR 2,4 billion in commitments (EUR 2,1 billion in payments) to development cooperation and EUR 928,8 million in commitments (EUR 918,8 million in payments) to humanitarian aid; supports the steps taken to reduce the backlog of unpaid bills, notably with a view to maintaining the financial viability of the most vulnerable partners, and stresses the importance of the principle of parity between commitments and payments with regard to humanitarian aid, as crises are happening more frequently and funds need to be disbursed quickly; |
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14.

Notes that the 2015 budget dedicates EUR 2,4 billion in commitments (EUR 2,1 billion in payments) to development cooperation and EUR 928,8 million in commitments (EUR 918,8 million in payments) to humanitarian aid; supports the steps taken to reduce the backlog of unpaid bills, notably with a view to maintaining the financial viability of the most vulnerable partners, and stresses the importance of the principle of parity between commitments and payments with regard to humanitarian aid, as crises are happening more frequently and funds need to be disbursed quickly;

| 15. | Calls on the EU to ensure that negotiations on the post-2015 global development agenda, financing for development and climate change have credible links with the new Sendai Framework for Disaster Risk Reduction 2015-2030 in order to build resilience and preparedness while achieving the global goal of leaving no one behind; |
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15.

Calls on the EU to ensure that negotiations on the post-2015 global development agenda, financing for development and climate change have credible links with the new Sendai Framework for Disaster Risk Reduction 2015-2030 in order to build resilience and preparedness while achieving the global goal of leaving no one behind;

| 16. | Recalls that development cooperation is a shared responsibility of the EU and its Member States and that it needs to be consistent with the concepts of complementarity and coordination; highlights the need to involve civil society and local authorities in the coordination process; |
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16.

Recalls that development cooperation is a shared responsibility of the EU and its Member States and that it needs to be consistent with the concepts of complementarity and coordination; highlights the need to involve civil society and local authorities in the coordination process;

| 17. | Calls on the EU and its Member States to promote an aid effectiveness agenda building on the commitments in the Busan Partnership for Effective Development Cooperation, reduction of aid fragmentation through pooled funding mechanism, and greater coordination between different aid delivery mechanisms and stakeholders; stresses that all development finance should be pro-poor, gender-sensitive, environmentally sound and climate-proof; |
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17.

Calls on the EU and its Member States to promote an aid effectiveness agenda building on the commitments in the Busan Partnership for Effective Development Cooperation, reduction of aid fragmentation through pooled funding mechanism, and greater coordination between different aid delivery mechanisms and stakeholders; stresses that all development finance should be pro-poor, gender-sensitive, environmentally sound and climate-proof;

| 18. | Recalls that according to the TFEU the reduction and eventual eradication of poverty is the EU’s primary objective in the development field, while the defence of human rights, gender equality, social cohesion and the fight against inequalities should remain at the core of development activities; |
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18.

Recalls that according to the TFEU the reduction and eventual eradication of poverty is the EU’s primary objective in the development field, while the defence of human rights, gender equality, social cohesion and the fight against inequalities should remain at the core of development activities;

| 19. | Emphasises the importance of setting clear priorities for expenditure, with a special focus on measures in the areas of health, education, energy, water supply and infrastructure; underlines the need for further efforts and improvements to be made in the area of aid effectiveness through a higher degree of coordination between the different aid mechanisms and donors; |
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19.

Emphasises the importance of setting clear priorities for expenditure, with a special focus on measures in the areas of health, education, energy, water supply and infrastructure; underlines the need for further efforts and improvements to be made in the area of aid effectiveness through a higher degree of coordination between the different aid mechanisms and donors;

| 20. | Underlines that ODA should prioritise basic social services for all and ‘public goods’ that are less effectively provided by the private sector, such as primary education, social safety nets, health care and infrastructure for sanitation, water supply and energy, so that developing countries can reach their full potential; stresses that accessibility should be a key criterion in international public financing to promote universal and inclusive services and infrastructures; |
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20.

Underlines that ODA should prioritise basic social services for all and ‘public goods’ that are less effectively provided by the private sector, such as primary education, social safety nets, health care and infrastructure for sanitation, water supply and energy, so that developing countries can reach their full potential; stresses that accessibility should be a key criterion in international public financing to promote universal and inclusive services and infrastructures;

| 21. | Stresses the need to ensure that the most vulnerable populations have access to development opportunities; recalls, in this respect, that channelling assistance only through governments risks resulting in insufficient funding for marginalised or vulnerable communities; |
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21.

Stresses the need to ensure that the most vulnerable populations have access to development opportunities; recalls, in this respect, that channelling assistance only through governments risks resulting in insufficient funding for marginalised or vulnerable communities;

| 22. | Highlights the importance of development banks mobilising additional funds for reducing the gap in infrastructure funding and access to credit in developing countries with monitoring and impact assessment mechanisms; |
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22.

Highlights the importance of development banks mobilising additional funds for reducing the gap in infrastructure funding and access to credit in developing countries with monitoring and impact assessment mechanisms;

| 23. | Underlines the absolute need for the EU to aim for the highest level of coordination in order to achieve coherence with other policy areas (environment, migration, international trade, human rights, agriculture, etc.) and to avoid duplication of work and inconsistencies in activities; recalls that, with the Lisbon Treaty (Article 208 TFEU), policy coherence for development became a treaty obligation; |
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23.

Underlines the absolute need for the EU to aim for the highest level of coordination in order to achieve coherence with other policy areas (environment, migration, international trade, human rights, agriculture, etc.) and to avoid duplication of work and inconsistencies in activities; recalls that, with the Lisbon Treaty (Article 208 TFEU), policy coherence for development became a treaty obligation;

Domestic resource mobilisation and international tax cooperation

| 24. | Stresses that domestic resource mobilisation is more predictable and sustainable than foreign assistance and must be a key source of financing; encourages efforts by developing countries to increase such mobilisation; emphasises the importance of improved collection of domestic taxes in developing countries and the need for robust, well-balanced, fair and efficient tax systems that are pro-poor, sensitive to the most vulnerable groups and respectful of international sustainable development commitments; calls for the removal of harmful subsidies in the areas of energy (in particular fossil fuels), fisheries and agriculture; |
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24.

Stresses that domestic resource mobilisation is more predictable and sustainable than foreign assistance and must be a key source of financing; encourages efforts by developing countries to increase such mobilisation; emphasises the importance of improved collection of domestic taxes in developing countries and the need for robust, well-balanced, fair and efficient tax systems that are pro-poor, sensitive to the most vulnerable groups and respectful of international sustainable development commitments; calls for the removal of harmful subsidies in the areas of energy (in particular fossil fuels), fisheries and agriculture;

| 25. | Asks the Commission to enhance its capacity-building assistance in the areas of tax administration, financial governance, public financial management, anti-corruption, the recovery of stolen assets and the fight against tax evasion and transfer mispricing; believes that the Union has a key role to play in this; recalls the importance of distribution of tax revenues from natural resources, especially through the creation of sovereign wealth funds; stresses the need to accelerate and scale up ongoing efforts to improve budgetary reporting, and calls for increased harmonisation of budgetary reporting practices across countries; |
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25.

Asks the Commission to enhance its capacity-building assistance in the areas of tax administration, financial governance, public financial management, anti-corruption, the recovery of stolen assets and the fight against tax evasion and transfer mispricing; believes that the Union has a key role to play in this; recalls the importance of distribution of tax revenues from natural resources, especially through the creation of sovereign wealth funds; stresses the need to accelerate and scale up ongoing efforts to improve budgetary reporting, and calls for increased harmonisation of budgetary reporting practices across countries;

| 26. | Calls on the EU and its Member States to actively crack down on tax havens, tax evasion and illicit financial flows, which dwarf development assistance and contribute to developing countries’ debts, to cooperate with developing countries in counteracting aggressive tax avoidance practices by certain transnational companies, and to seek ways to help developing countries withstand pressures to engage in tax competition, since this undermines the mobilisation of domestic resources for development; |
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26.

Calls on the EU and its Member States to actively crack down on tax havens, tax evasion and illicit financial flows, which dwarf development assistance and contribute to developing countries’ debts, to cooperate with developing countries in counteracting aggressive tax avoidance practices by certain transnational companies, and to seek ways to help developing countries withstand pressures to engage in tax competition, since this undermines the mobilisation of domestic resources for development;

| 27. | Supports the setting-up of an intergovernmental body for tax cooperation under the auspices of the UN; encourages the automatic exchange of information; calls for the creation of public registers of beneficial ownership and mandatory country-by-country reporting for transnational companies in all sectors and for ensuring a fair distribution of taxing rights while negotiating tax and investment treaties with developing countries; |
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27.

Supports the setting-up of an intergovernmental body for tax cooperation under the auspices of the UN; encourages the automatic exchange of information; calls for the creation of public registers of beneficial ownership and mandatory country-by-country reporting for transnational companies in all sectors and for ensuring a fair distribution of taxing rights while negotiating tax and investment treaties with developing countries;

| 28. | Considers that international corporate tax rules should include the principle that taxes should be paid where value is extracted or created; |
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28.

Considers that international corporate tax rules should include the principle that taxes should be paid where value is extracted or created;

| 29. | Stresses the decisive importance of good governance, human rights protection, the rule of law, institutional framework and regulatory instruments; especially supports investment in capacity-building, basic social services such as education and health (ensuring universal health coverage), including sexual and reproductive health and rights, nutrition, public services and social protection and the fight against poverty and inequality, including among children and in terms of gender; recognises the need for accessible infrastructures and selective public investments, as well as the sustainable use of natural resources, including by the extractive industries; |
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29.

Stresses the decisive importance of good governance, human rights protection, the rule of law, institutional framework and regulatory instruments; especially supports investment in capacity-building, basic social services such as education and health (ensuring universal health coverage), including sexual and reproductive health and rights, nutrition, public services and social protection and the fight against poverty and inequality, including among children and in terms of gender; recognises the need for accessible infrastructures and selective public investments, as well as the sustainable use of natural resources, including by the extractive industries;

| 30. | Stresses that financing for development must strengthen the resources available to promote equality between women and men, women’s rights and women’s empowerment; emphasises the specific role of women in society, and stresses that this should include the implementation of gender budgeting, targeted investments in key sectors such as health and education and steps to ensure that all development finance takes full account of the situation of women and girls; |
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30.

Stresses that financing for development must strengthen the resources available to promote equality between women and men, women’s rights and women’s empowerment; emphasises the specific role of women in society, and stresses that this should include the implementation of gender budgeting, targeted investments in key sectors such as health and education and steps to ensure that all development finance takes full account of the situation of women and girls;

| 31. | Calls for greater financing of research and development in science, technology and innovation in developing countries, while recognising that this financing should be both domestic and international; urges the promotion of research and development that can advance progress in tackling complex challenges and towards good management of global public goods, such as technology and innovation for health; notes the important role of micro, small and medium enterprises (MSMEs) in this context; calls for a review of intellectual property rights regimes introduced in developing countries through free trade agreements in order to identify any adverse impacts on public health, the environment or technology transfer; |
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31.

Calls for greater financing of research and development in science, technology and innovation in developing countries, while recognising that this financing should be both domestic and international; urges the promotion of research and development that can advance progress in tackling complex challenges and towards good management of global public goods, such as technology and innovation for health; notes the important role of micro, small and medium enterprises (MSMEs) in this context; calls for a review of intellectual property rights regimes introduced in developing countries through free trade agreements in order to identify any adverse impacts on public health, the environment or technology transfer;

Private sector and civil society

| 32. | Underlines the high importance of establishing favourable conditions for private enterprise and entrepreneurship in developing countries, especially for MSMEs, as they play a fundamental role as an engine for job creation and inclusive growth; calls in particular for further strengthening microfinance loan and guarantee systems; insists on the necessity of further developing local and regional banks and credit unions in order to significantly decrease excessive interest rates for market loans so as to better support community development at a local level (13); calls for alignment of the private sector with the SDGs through appropriate partnerships, financial instruments, incentives, an accountability framework and effective Corporate Social Responsibility (CSR); recalls the need to comply with agreed international standards such as the International Labour Organisation (ILO) standards and the UN Guiding Principles on Business and Human Rights; |
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32.

Underlines the high importance of establishing favourable conditions for private enterprise and entrepreneurship in developing countries, especially for MSMEs, as they play a fundamental role as an engine for job creation and inclusive growth; calls in particular for further strengthening microfinance loan and guarantee systems; insists on the necessity of further developing local and regional banks and credit unions in order to significantly decrease excessive interest rates for market loans so as to better support community development at a local level (13); calls for alignment of the private sector with the SDGs through appropriate partnerships, financial instruments, incentives, an accountability framework and effective Corporate Social Responsibility (CSR); recalls the need to comply with agreed international standards such as the International Labour Organisation (ILO) standards and the UN Guiding Principles on Business and Human Rights;

| 33. | Stresses the need to promote the provision to undertakings of instruments for information, training and advice platforms essential to their development; |
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33.

Stresses the need to promote the provision to undertakings of instruments for information, training and advice platforms essential to their development;

| 34. | Stresses that, in order to impart long-term impetus to the economy, it is essential to give young people and women access to credit to support start-ups; |
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34.

Stresses that, in order to impart long-term impetus to the economy, it is essential to give young people and women access to credit to support start-ups;

| 35. | Stresses the social cohesion role played by the collective entrepreneurship of producers’ associations in preventing ethnic and religious conflict; |
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35.

Stresses the social cohesion role played by the collective entrepreneurship of producers’ associations in preventing ethnic and religious conflict;

| 36. | Insists that the EU’s support for and cooperation with the private sector can and must contribute to reducing poverty and inequality and respect and promote human rights, environmental standards, climate commitments and social dialogue; calls for the establishment of a legally binding framework for companies, including transnational corporations with a grievance mechanism; |
| --- | --- |

36.

Insists that the EU’s support for and cooperation with the private sector can and must contribute to reducing poverty and inequality and respect and promote human rights, environmental standards, climate commitments and social dialogue; calls for the establishment of a legally binding framework for companies, including transnational corporations with a grievance mechanism;

| 37. | Calls for the EU to set up, together with developing countries, a regulatory framework, in line with UNCTAD’s comprehensive Investment Policy Framework for Sustainable Development, that stimulates more responsible, transparent and accountable investment, contributing to the development of a socially conscious private sector in developing countries; |
| --- | --- |

37.

Calls for the EU to set up, together with developing countries, a regulatory framework, in line with UNCTAD’s comprehensive Investment Policy Framework for Sustainable Development, that stimulates more responsible, transparent and accountable investment, contributing to the development of a socially conscious private sector in developing countries;

| 38. | Calls on the Commission to support increased access to finance for MSMEs and cooperatives in developing countries; underlines the importance of microfinance loan systems, especially for women; encourages further developing local and regional banks and credit unions; asks the Commission to encourage developing countries in setting up policies and legal frameworks conducive to the development of banking services; points to the need — at various levels, including among poor people, women and other vulnerable groups — for information and training on financial matters, the use of banking products and insurance, and relevant new technologies; |
| --- | --- |

38.

Calls on the Commission to support increased access to finance for MSMEs and cooperatives in developing countries; underlines the importance of microfinance loan systems, especially for women; encourages further developing local and regional banks and credit unions; asks the Commission to encourage developing countries in setting up policies and legal frameworks conducive to the development of banking services; points to the need — at various levels, including among poor people, women and other vulnerable groups — for information and training on financial matters, the use of banking products and insurance, and relevant new technologies;

| 39. | Recalls that public aid alone is far from sufficient to cover all investment needs in developing countries; therefore insists on the leverage role of blending and public-private partnerships (PPPs) as a means to enhance the impact of development assistance, to attract private finance and to support local businesses; stresses, however, that blended finance must not replace state responsibility for delivering on social needs and should be aligned with national development objectives and with development effectiveness principles; encourages PPPs in particular in the field of research related to the Innovative Medicines Initiative such as the Ebola+ programme; |
| --- | --- |

39.

Recalls that public aid alone is far from sufficient to cover all investment needs in developing countries; therefore insists on the leverage role of blending and public-private partnerships (PPPs) as a means to enhance the impact of development assistance, to attract private finance and to support local businesses; stresses, however, that blended finance must not replace state responsibility for delivering on social needs and should be aligned with national development objectives and with development effectiveness principles; encourages PPPs in particular in the field of research related to the Innovative Medicines Initiative such as the Ebola+ programme;

| 40. | Calls for the adoption of international standards and criteria and debt risk analysis for blending projects and PPPs that attract private finance and support local businesses, while respecting agreed ILO, WHO and international human rights standards; urges the Commission, in view of its wish to considerably extend the use of blending in the future, to implement the recommendations made in the European Court of Auditors Special Report on the use of blending, and to evaluate the mechanism of blending loans and grants, particularly in terms of development and financial additionality, transparency and accountability; calls on the EIB and other development finance institutions to prioritise investment in companies and funds that publicly disclose beneficial ownerships and apply country-by-country reporting; |
| --- | --- |

40.

Calls for the adoption of international standards and criteria and debt risk analysis for blending projects and PPPs that attract private finance and support local businesses, while respecting agreed ILO, WHO and international human rights standards; urges the Commission, in view of its wish to considerably extend the use of blending in the future, to implement the recommendations made in the European Court of Auditors Special Report on the use of blending, and to evaluate the mechanism of blending loans and grants, particularly in terms of development and financial additionality, transparency and accountability; calls on the EIB and other development finance institutions to prioritise investment in companies and funds that publicly disclose beneficial ownerships and apply country-by-country reporting;

| 41. | Supports increased market access for developing countries, especially LDCs, as it can strengthen the private sector and create incentives for reform; urges the Commission to ensure that trade and investment agreements, especially with developing countries, LDCs and fragile states, are aligned with the SDGs and promote human rights and regional integration; emphasises that such agreements should be subjected to SDG impact assessments; supports the Commission’s suggestion of updating its Aid for Trade Strategy in light of the outcomes of the post-2015 negotiations and to grant special and differential treatment to developing countries, LDCs and fragile states in trade agreements while respecting their policy space to take sovereign decisions in accordance with their national context and their populations’ needs; |
| --- | --- |

41.

Supports increased market access for developing countries, especially LDCs, as it can strengthen the private sector and create incentives for reform; urges the Commission to ensure that trade and investment agreements, especially with developing countries, LDCs and fragile states, are aligned with the SDGs and promote human rights and regional integration; emphasises that such agreements should be subjected to SDG impact assessments; supports the Commission’s suggestion of updating its Aid for Trade Strategy in light of the outcomes of the post-2015 negotiations and to grant special and differential treatment to developing countries, LDCs and fragile states in trade agreements while respecting their policy space to take sovereign decisions in accordance with their national context and their populations’ needs;

| 42. | Calls for action to boost the use and transparency of national public procurement systems in activities managed by the public sector and for the strengthening of competition authorities in developing countries; |
| --- | --- |

42.

Calls for action to boost the use and transparency of national public procurement systems in activities managed by the public sector and for the strengthening of competition authorities in developing countries;

| 43. | Highlights the positive contribution of migrants to the development of their countries of origin, and calls for more effective and innovative cooperation in migration policy between origin and destination countries; draws attention to the significant and growing financial flows represented by remittances from the diaspora and supports the creation of diaspora funds; calls for further efforts to bring down transfer costs to increase the impact on local development in origin countries; |
| --- | --- |

43.

Highlights the positive contribution of migrants to the development of their countries of origin, and calls for more effective and innovative cooperation in migration policy between origin and destination countries; draws attention to the significant and growing financial flows represented by remittances from the diaspora and supports the creation of diaspora funds; calls for further efforts to bring down transfer costs to increase the impact on local development in origin countries;

| 44. | Calls for increased participation of local authorities and civil society, including community-based NGOs, in discussions on development priorities, notably at the Addis Ababa conference, and for a more inclusive and accountable implementation of the post-2015 agenda; underlines the role of NGOs in the implementation of operations on the ground and the development of accountability, monitoring and review mechanisms; recognises that the role of local authorities in the implementation of the SDGs requires the allocation of the necessary means; calls for increased consultation of young people in the discussions on the post-2015 agenda, namely through innovative communication technologies; underlines the role of EU delegations as facilitators of such dialogues; |
| --- | --- |

44.

Calls for increased participation of local authorities and civil society, including community-based NGOs, in discussions on development priorities, notably at the Addis Ababa conference, and for a more inclusive and accountable implementation of the post-2015 agenda; underlines the role of NGOs in the implementation of operations on the ground and the development of accountability, monitoring and review mechanisms; recognises that the role of local authorities in the implementation of the SDGs requires the allocation of the necessary means; calls for increased consultation of young people in the discussions on the post-2015 agenda, namely through innovative communication technologies; underlines the role of EU delegations as facilitators of such dialogues;

Global governance

| 45. | Recalls the UN’s central role, in complementarity with other existing institutions and forums such as the OECD, in global economic governance and development; calls for equal and gender-balanced representation of all countries in multilateral institutions and other norm- and standard-setting bodies, including in international financial institutions; recalls that all international financial institutions should abide by basic transparency standards — as set out in the Transparency Charter for International Financial Institutions — and enact public disclosure policies; |
| --- | --- |

45.

Recalls the UN’s central role, in complementarity with other existing institutions and forums such as the OECD, in global economic governance and development; calls for equal and gender-balanced representation of all countries in multilateral institutions and other norm- and standard-setting bodies, including in international financial institutions; recalls that all international financial institutions should abide by basic transparency standards — as set out in the Transparency Charter for International Financial Institutions — and enact public disclosure policies;

| 46. | Insists that sustainable debt solutions, including standards for responsible lending and borrowing, must be facilitated through a multilateral legal framework for sovereign debt restructuring processes, with a view to alleviating the debt burden and avoiding unsustainable debt; asks the EU to engage constructively in the UN negotiations on this framework; urges the EU to push for the implementation of the UNCTAD principles of responsible sovereign debt transactions for both borrowers and lenders; |
| --- | --- |

46.

Insists that sustainable debt solutions, including standards for responsible lending and borrowing, must be facilitated through a multilateral legal framework for sovereign debt restructuring processes, with a view to alleviating the debt burden and avoiding unsustainable debt; asks the EU to engage constructively in the UN negotiations on this framework; urges the EU to push for the implementation of the UNCTAD principles of responsible sovereign debt transactions for both borrowers and lenders;

| 47. | Welcomes the international efforts to relieve the international debt obligations of Ebola-affected countries in order to help them face the economic crises caused by the epidemic; |
| --- | --- |

47.

Welcomes the international efforts to relieve the international debt obligations of Ebola-affected countries in order to help them face the economic crises caused by the epidemic;

| 48. | Calls for a review of international organisations’ programmes and instruments of financial assistance for development in order to align them with the new SDGs; urges notably, the European Investment Bank, the European Bank for Reconstruction and Development, the International Monetary Fund and the World Bank to establish the highest standards of responsible financing and to gear their resources more closely to the needs of developing countries, including through mutually effective pro-poor lending facilities; calls notably for an increase in the amounts available to the European Investment Bank, beyond its current mandate, in order to further increase its funding to low-income countries; |
| --- | --- |

48.

Calls for a review of international organisations’ programmes and instruments of financial assistance for development in order to align them with the new SDGs; urges notably, the European Investment Bank, the European Bank for Reconstruction and Development, the International Monetary Fund and the World Bank to establish the highest standards of responsible financing and to gear their resources more closely to the needs of developing countries, including through mutually effective pro-poor lending facilities; calls notably for an increase in the amounts available to the European Investment Bank, beyond its current mandate, in order to further increase its funding to low-income countries;

Monitoring, accountability and review

| 49. | Calls for an agreement at the Addis Ababa conference on a robust, transparent and accessible monitoring and accountability framework for effective tracking and follow-up of investment and progress as regards specific commitments and objectives; calls for an international initiative to improve the quality of statistics, data and information, including data disaggregated by income, gender, age, race, ethnicity and migratory status, disability, geographic location and other characteristics relevant in national contexts; asks all parties to ensure the transparent and efficient implementation of aid and financing, in particular by signing and effectively implementing the provisions of the UN Convention against Corruption and by committing to systematically publishing accurate, timely and comparable revenue and expenditure data as well as budget documents; notably, asks the Commission to further monitor and control its financing of aid programmes and projects and to take the appropriate measures in case of evidence of corruption and mismanagement; urges the Commission, equally, to upgrade its assistance in order to strengthen the judiciary and anti-corruption agencies in developing countries; |
| --- | --- |

49.

Calls for an agreement at the Addis Ababa conference on a robust, transparent and accessible monitoring and accountability framework for effective tracking and follow-up of investment and progress as regards specific commitments and objectives; calls for an international initiative to improve the quality of statistics, data and information, including data disaggregated by income, gender, age, race, ethnicity and migratory status, disability, geographic location and other characteristics relevant in national contexts; asks all parties to ensure the transparent and efficient implementation of aid and financing, in particular by signing and effectively implementing the provisions of the UN Convention against Corruption and by committing to systematically publishing accurate, timely and comparable revenue and expenditure data as well as budget documents; notably, asks the Commission to further monitor and control its financing of aid programmes and projects and to take the appropriate measures in case of evidence of corruption and mismanagement; urges the Commission, equally, to upgrade its assistance in order to strengthen the judiciary and anti-corruption agencies in developing countries;

| 50. | Calls for an international initiative to improve the quality of statistics, data and information in order to track spending, investment and progress on specific commitments and objectives; welcomes global efforts to ensure that data used in the implementation of the SDGs are sufficiently disaggregated for income, gender, age and other indicators, so that the impact of the policies can be effectively monitored; |
| --- | --- |

50.

Calls for an international initiative to improve the quality of statistics, data and information in order to track spending, investment and progress on specific commitments and objectives; welcomes global efforts to ensure that data used in the implementation of the SDGs are sufficiently disaggregated for income, gender, age and other indicators, so that the impact of the policies can be effectively monitored;

| 51. | Reiterates that, as a complement to GDP, a new set of other indicators is necessary in order to take account of new social and environmental challenges, and that this set should include in particular the Human Development Index, the Gini coefficient, a gender equality measure, the carbon footprint and the ecological footprint; |
| --- | --- |

51.

Reiterates that, as a complement to GDP, a new set of other indicators is necessary in order to take account of new social and environmental challenges, and that this set should include in particular the Human Development Index, the Gini coefficient, a gender equality measure, the carbon footprint and the ecological footprint;

o

o o

| 52. | Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the European Commission/High Representative of the European Union for Foreign Affairs and Security Policy, the Secretary-General of the United Nations, and the Co-Facilitators for the preparatory process of the Third International Conference on Financing for Development. |
| --- | --- |

52.

Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the European Commission/High Representative of the European Union for Foreign Affairs and Security Policy, the Secretary-General of the United Nations, and the Co-Facilitators for the preparatory process of the Third International Conference on Financing for Development.

---

(1)  http://unctad.org/en/publicationslibrary/wir2014_en.pdf

(2)  http://eu-un.europa.eu/articles/en/article_15873_en.htm

(3)  http://eu-un.europa.eu/articles/en/article_14363_en.htm

(4)  http://eu-un.europa.eu/articles/en/article_13692_en.htm

(5)  Texts adopted, P8_TA(2014)0059.

(6)  OJ C 8 E, 14.1.2010, p. 1.

(7)  Texts adopted, P8_TA(2014)0063.

(8)  Texts adopted, P7_TA(2014)0163.

(9)  Texts adopted, P7_TA(2013)0394.

(10)  Texts adopted, P7_TA(2013)0205.

(11)  Texts adopted, P7_TA(2013)0119.

(12)  OJ L 136, 9.5.2014, p. 1.

(13)  Report on Support for SMEs in Developing Countries Through Financial Intermediaries, Dalberg, November 2011, www.eib.org.

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| 27.9.2016 | EN | Official Journal of the European Union | C 353/12 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/12

---

P8_TA(2015)0197

Safer healthcare in Europe

European Parliament resolution of 19 May 2015 on safer healthcare in Europe: improving patient safety and fighting antimicrobial resistance (2014/2207(INI))

(2016/C 353/02)

The European Parliament,

| — | having regard to its position of 23 April 2009 on the proposal for a Council recommendation on patient safety, including the prevention and control of healthcare-associated infections (1), |
| --- | --- |

—

having regard to its position of 23 April 2009 on the proposal for a Council recommendation on patient safety, including the prevention and control of healthcare-associated infections (1),

| — | having regard to the Council recommendation of 9 June 2009 on patient safety, including the prevention and control of healthcare-associated infections (2), |
| --- | --- |

—

having regard to the Council recommendation of 9 June 2009 on patient safety, including the prevention and control of healthcare-associated infections (2),

| — | having regard to Directive 2011/24/EU of the European Parliament and of the Council of 9 March 2011 on the application of patients’ rights in cross-border healthcare, |
| --- | --- |

—

having regard to Directive 2011/24/EU of the European Parliament and of the Council of 9 March 2011 on the application of patients’ rights in cross-border healthcare,

| — | having regard to the Commission communication of 15 November 2011 entitled ‘Action plan against the rising threats from Antimicrobial Resistance’ (COM(2011)0748), |
| --- | --- |

—

having regard to the Commission communication of 15 November 2011 entitled ‘Action plan against the rising threats from Antimicrobial Resistance’ (COM(2011)0748),

| — | having regard to the Council conclusions of 22 June 2012 on ‘The impact of antimicrobial resistance in the human health sector and in the veterinary sector — a “One Health” perspective’, |
| --- | --- |

—

having regard to the Council conclusions of 22 June 2012 on ‘The impact of antimicrobial resistance in the human health sector and in the veterinary sector — a “One Health” perspective’,

| — | having regard to its resolution of 11 December 2012 on ‘The Microbial Challenge — Rising threats from Antimicrobial Resistance’ (3), |
| --- | --- |

—

having regard to its resolution of 11 December 2012 on ‘The Microbial Challenge — Rising threats from Antimicrobial Resistance’ (3),

| — | having regard to the reports of 13 November 2012 and 19 June 2014 from the Commission to the Council on the basis of Member States’ reports on the implementation of the Council recommendation (2009/C 151/01) on patient safety, including the prevention and control of healthcare-associated infections (COM(2012)0658 and COM(2014)0371), |
| --- | --- |

—

having regard to the reports of 13 November 2012 and 19 June 2014 from the Commission to the Council on the basis of Member States’ reports on the implementation of the Council recommendation (2009/C 151/01) on patient safety, including the prevention and control of healthcare-associated infections (COM(2012)0658 and COM(2014)0371),

| — | having regard to its resolution of 22 October 2013 on the report from the Commission to the Council on the basis of Member States’ reports on the implementation of the Council Recommendation (2009/C 151/01) on patient safety, including the prevention and control of healthcare-associated infections (4), |
| --- | --- |

—

having regard to its resolution of 22 October 2013 on the report from the Commission to the Council on the basis of Member States’ reports on the implementation of the Council Recommendation (2009/C 151/01) on patient safety, including the prevention and control of healthcare-associated infections (4),

| — | having regard to Decision No 1082/2013/EU of the European Parliament and the Council of 22 October 2013 on serious cross-border threats to health, |
| --- | --- |

—

having regard to Decision No 1082/2013/EU of the European Parliament and the Council of 22 October 2013 on serious cross-border threats to health,

| — | having regard to the Special Eurobarometer 411, ‘Patient safety and quality of care’, |
| --- | --- |

—

having regard to the Special Eurobarometer 411, ‘Patient safety and quality of care’,

| — | having regard to the Progress report on the Action plan against the rising threats from Antimicrobial Resistance (SANTE/10251/2015), |
| --- | --- |

—

having regard to the Progress report on the Action plan against the rising threats from Antimicrobial Resistance (SANTE/10251/2015),

| — | having regard to the proposal, of 10 September 2014, for a Regulation of the European Parliament and of the Council on veterinary medicinal products (2014/0257(COD)), |
| --- | --- |

—

having regard to the proposal, of 10 September 2014, for a Regulation of the European Parliament and of the Council on veterinary medicinal products (2014/0257(COD)),

| — | having regard to the ‘Conceptual framework for the international classification for patient safety’ drawn up by the World Health Organisation (WHO), |
| --- | --- |

—

having regard to the ‘Conceptual framework for the international classification for patient safety’ drawn up by the World Health Organisation (WHO),

| — | having regard to the Latvian Presidency’s efforts in addressing the issue of antimicrobial resistance, in particular with regard to tuberculosis and multi-drug resistant tuberculosis (MDR-TB), |
| --- | --- |

—

having regard to the Latvian Presidency’s efforts in addressing the issue of antimicrobial resistance, in particular with regard to tuberculosis and multi-drug resistant tuberculosis (MDR-TB),

| — | having regard to the Council conclusions of 1 December 2014 on patient safety and quality of care, including the prevention and control of healthcare- associated infections and microbial resistance, |
| --- | --- |

—

having regard to the Council conclusions of 1 December 2014 on patient safety and quality of care, including the prevention and control of healthcare- associated infections and microbial resistance,

| — | having regard to the first ECDC/EFSA/EMA joint report on the integrated analysis of the consumption of antimicrobial agents and occurrence of antimicrobial resistance in bacteria from humans and food-producing animals (Joint Interagency Antimicrobial Consumption and Resistance Analysis — JIACRA), |
| --- | --- |

—

having regard to the first ECDC/EFSA/EMA joint report on the integrated analysis of the consumption of antimicrobial agents and occurrence of antimicrobial resistance in bacteria from humans and food-producing animals (Joint Interagency Antimicrobial Consumption and Resistance Analysis — JIACRA),

| — | having regard to Rule 52 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 52 of its Rules of Procedure,

| — | having regard to the report of the Committee on the Environment, Public Health and Food Safety (A8-0142/2015), |
| --- | --- |

—

having regard to the report of the Committee on the Environment, Public Health and Food Safety (A8-0142/2015),

| A. | whereas the key to overall healthcare quality lies in patient safety, the essential elements of which are a healthcare culture and the management of adverse events; |
| --- | --- |

A.

whereas the key to overall healthcare quality lies in patient safety, the essential elements of which are a healthcare culture and the management of adverse events;

| B. | whereas the volume of data available on the prevalence and incidence of adverse events in Member State healthcare systems is at present limited, but is steadily growing, and whereas the latest available data date back to 2008; |
| --- | --- |

B.

whereas the volume of data available on the prevalence and incidence of adverse events in Member State healthcare systems is at present limited, but is steadily growing, and whereas the latest available data date back to 2008;

| C. | whereas it is estimated that between 8 % and 12 % of patients admitted to hospitals in the EU suffer from adverse events while receiving healthcare, and whereas nearly half of these events could be avoided; |
| --- | --- |

C.

whereas it is estimated that between 8 % and 12 % of patients admitted to hospitals in the EU suffer from adverse events while receiving healthcare, and whereas nearly half of these events could be avoided;

| D. | whereas the most common healthcare-related adverse events are healthcare-associated infections (HAIs), medication-related events and complications arising during or after surgical operations; |
| --- | --- |

D.

whereas the most common healthcare-related adverse events are healthcare-associated infections (HAIs), medication-related events and complications arising during or after surgical operations;

| E. | whereas patient safety and the quality of healthcare require decent working conditions and safety at work for healthcare professionals, and whereas, in particular, ensuring patient safety, prevention and control of HAIs and prevention of the spread of multidrug-resistant bacteria is very difficult in overcrowded and understaffed healthcare environments; |
| --- | --- |

E.

whereas patient safety and the quality of healthcare require decent working conditions and safety at work for healthcare professionals, and whereas, in particular, ensuring patient safety, prevention and control of HAIs and prevention of the spread of multidrug-resistant bacteria is very difficult in overcrowded and understaffed healthcare environments;

| F. | whereas the current economic crisis has placed increased pressure on Member State healthcare budgets, hence having an impact on patient safety, as many Member States, instead of properly addressing efficiency, have reduced budgets and staffing levels in their healthcare systems with rather harsh cuts; |
| --- | --- |

F.

whereas the current economic crisis has placed increased pressure on Member State healthcare budgets, hence having an impact on patient safety, as many Member States, instead of properly addressing efficiency, have reduced budgets and staffing levels in their healthcare systems with rather harsh cuts;

| G. | whereas the economic crisis has further deepened existing inequalities with regard to access to health services; |
| --- | --- |

G.

whereas the economic crisis has further deepened existing inequalities with regard to access to health services;

| H. | whereas continuous training of doctors and other healthcare professionals is crucial to avoid adverse events, including adverse drug events (ADEs), which are estimated to cost the EU healthcare systems some EUR 2,7 billion per year in care expenses and account for 1,1 % of all hospitalisations in the Union; |
| --- | --- |

H.

whereas continuous training of doctors and other healthcare professionals is crucial to avoid adverse events, including adverse drug events (ADEs), which are estimated to cost the EU healthcare systems some EUR 2,7 billion per year in care expenses and account for 1,1 % of all hospitalisations in the Union;

| I. | whereas patient-centred electronic health (e-Health) and home-care medical treatments have a high potential for improving the quality and efficiency of medical treatments while contributing to better healthcare performance; |
| --- | --- |

I.

whereas patient-centred electronic health (e-Health) and home-care medical treatments have a high potential for improving the quality and efficiency of medical treatments while contributing to better healthcare performance;

| J. | whereas a multidisciplinary approach increases the chances of positive outcomes of medical treatments; |
| --- | --- |

J.

whereas a multidisciplinary approach increases the chances of positive outcomes of medical treatments;

| K. | whereas patients, families and patient organisations play a key role in advocating for safer care, and their role should be promoted through patient empowerment and participation in the healthcare process and policy at all levels; |
| --- | --- |

K.

whereas patients, families and patient organisations play a key role in advocating for safer care, and their role should be promoted through patient empowerment and participation in the healthcare process and policy at all levels;

| L. | whereas home-care medical treatments can help patients psychologically and result in better healthcare performance; |
| --- | --- |

L.

whereas home-care medical treatments can help patients psychologically and result in better healthcare performance;

| M. | whereas it has been noted that less-informed people use antibiotics more frequently, while full knowledge of antibiotics could encourage people to consume them more responsibly; |
| --- | --- |

M.

whereas it has been noted that less-informed people use antibiotics more frequently, while full knowledge of antibiotics could encourage people to consume them more responsibly;

| N. | whereas 30 to 50 % of patients do not take the medicines prescribed for them by doctors or do not take them as directed by the doctor’s prescription; |
| --- | --- |

N.

whereas 30 to 50 % of patients do not take the medicines prescribed for them by doctors or do not take them as directed by the doctor’s prescription;

| O. | whereas conflicts of interest related to the pharmaceutical industry exist in hospitals and among general practitioners and also veterinarians; |
| --- | --- |

O.

whereas conflicts of interest related to the pharmaceutical industry exist in hospitals and among general practitioners and also veterinarians;

| P. | whereas HAIs are a major public health problem in the Member States (according to figures compiled by the European Centre for Disease Prevention and Control (ECDC), 1 in 20 hospital in-patients on average suffer from an HAI in the EU, that is to say, 4,1 million patients annually, and every year 37 000 people in the EU die as a result of an HAI, although 20 to 30 % of those infections are considered to be preventable by intensive hygiene and control programmes), and this places a heavy burden on limited health service budgets; |
| --- | --- |

P.

whereas HAIs are a major public health problem in the Member States (according to figures compiled by the European Centre for Disease Prevention and Control (ECDC), 1 in 20 hospital in-patients on average suffer from an HAI in the EU, that is to say, 4,1 million patients annually, and every year 37 000 people in the EU die as a result of an HAI, although 20 to 30 % of those infections are considered to be preventable by intensive hygiene and control programmes), and this places a heavy burden on limited health service budgets;

| Q. | whereas patients’ experiences and inputs often differ from those of health professionals and can be of great value in finding new ways to reduce and prevent HAIs; |
| --- | --- |

Q.

whereas patients’ experiences and inputs often differ from those of health professionals and can be of great value in finding new ways to reduce and prevent HAIs;

| R. | whereas HAIs caused by multidrug resistant bacteria are increasing; |
| --- | --- |

R.

whereas HAIs caused by multidrug resistant bacteria are increasing;

| S. | whereas antimicrobial resistance has increased worldwide for bacterial pathogens, leading to increasing prevalence of HAIs and treatment failures in human and animal infectious diseases at national, European and international levels; |
| --- | --- |

S.

whereas antimicrobial resistance has increased worldwide for bacterial pathogens, leading to increasing prevalence of HAIs and treatment failures in human and animal infectious diseases at national, European and international levels;

| T. | whereas it is estimated that globally 10 million people will die every year because of antimicrobial resistance by 2050; |
| --- | --- |

T.

whereas it is estimated that globally 10 million people will die every year because of antimicrobial resistance by 2050;

| U. | whereas resistance to antibiotics that are commonly used to treat causative bacteria is at least 25 % or more in several Member States; whereas there is a growing gap between antimicrobial resistance and the development of new antibiotics and their introduction into clinical practice, and this is linked to scientific, regulatory and economic challenges; |
| --- | --- |

U.

whereas resistance to antibiotics that are commonly used to treat causative bacteria is at least 25 % or more in several Member States; whereas there is a growing gap between antimicrobial resistance and the development of new antibiotics and their introduction into clinical practice, and this is linked to scientific, regulatory and economic challenges;

| V. | whereas the most recent studies show that, allowing for a few exceptions, antimicrobial resistance in hospitals has globally increased in the EU in recent years; |
| --- | --- |

V.

whereas the most recent studies show that, allowing for a few exceptions, antimicrobial resistance in hospitals has globally increased in the EU in recent years;

| W. | whereas the EU estimates that every year at least 25 000 people die of infections caused by resistant bacteria, costing public health systems an estimated EUR 1,5 billion, according to data from 2011 collected by the ECDC; |
| --- | --- |

W.

whereas the EU estimates that every year at least 25 000 people die of infections caused by resistant bacteria, costing public health systems an estimated EUR 1,5 billion, according to data from 2011 collected by the ECDC;

| X. | whereas the costs incurred by drug-resistant infections amount to an estimated EUR 1,5 billion annually, because of increases in healthcare expenditure costs and productivity losses; whereas patients who have caught resistant bacteria have to be isolated when treated in hospital, and this extra provision costs EUR 900 million and leads to 2,5 million extra bed days per year; |
| --- | --- |

X.

whereas the costs incurred by drug-resistant infections amount to an estimated EUR 1,5 billion annually, because of increases in healthcare expenditure costs and productivity losses; whereas patients who have caught resistant bacteria have to be isolated when treated in hospital, and this extra provision costs EUR 900 million and leads to 2,5 million extra bed days per year;

| Y. | whereas one of the main causes of the spread of antimicrobial resistance in hospitals is lack of compliance with generally accepted infection prevention and control practices; |
| --- | --- |

Y.

whereas one of the main causes of the spread of antimicrobial resistance in hospitals is lack of compliance with generally accepted infection prevention and control practices;

| Z. | whereas first line drugs’ effectiveness on bacterial pathogens is becoming increasingly limited by resistance and second or third line drugs are not always available and are often more toxic, more expensive and less effective than first line drugs; |
| --- | --- |

Z.

whereas first line drugs’ effectiveness on bacterial pathogens is becoming increasingly limited by resistance and second or third line drugs are not always available and are often more toxic, more expensive and less effective than first line drugs;

| AA. | whereas one of the main causes of antimicrobial resistance is the misuse of antimicrobials, including antibiotics, and in particular their systematic and excessive use; |
| --- | --- |

AA.

whereas one of the main causes of antimicrobial resistance is the misuse of antimicrobials, including antibiotics, and in particular their systematic and excessive use;

| AB. | whereas the high level of mobility between European healthcare systems and the increasingly cross-border nature of healthcare in Europe can promote the spread of resistant micro-organisms from one Member State to another; |
| --- | --- |

AB.

whereas the high level of mobility between European healthcare systems and the increasingly cross-border nature of healthcare in Europe can promote the spread of resistant micro-organisms from one Member State to another;

| AC. | whereas vaccination programmes are one effective tool in efforts to combat antibiotic resistance, because they can play a role in limiting the use of antibiotics and thereby the development of antimicrobial resistance; |
| --- | --- |

AC.

whereas vaccination programmes are one effective tool in efforts to combat antibiotic resistance, because they can play a role in limiting the use of antibiotics and thereby the development of antimicrobial resistance;

| AD. | whereas antibacterial research and development presents some unique challenges meaning that a long-term perspective is needed to develop the expertise and apply it in laboratories, and whereas it is regrettable that many researchers having such expertise have moved to other areas due to a lack of both private and public funding; |
| --- | --- |

AD.

whereas antibacterial research and development presents some unique challenges meaning that a long-term perspective is needed to develop the expertise and apply it in laboratories, and whereas it is regrettable that many researchers having such expertise have moved to other areas due to a lack of both private and public funding;

| AE. | whereas the failure to take basic personal hygiene precautions, both inside and outside hospitals, can cause pathogens — in particular antimicrobial-resistant ones — to spread; |
| --- | --- |

AE.

whereas the failure to take basic personal hygiene precautions, both inside and outside hospitals, can cause pathogens — in particular antimicrobial-resistant ones — to spread;

| AF. | whereas increasing scientific evidence shows that good hand hygiene in healthcare settings requires the use of methods to dry hands that do not facilitate microbial cross-contamination via airborne dissemination and aerosolisation; |
| --- | --- |

AF.

whereas increasing scientific evidence shows that good hand hygiene in healthcare settings requires the use of methods to dry hands that do not facilitate microbial cross-contamination via airborne dissemination and aerosolisation;

| AG. | whereas resistant bacteria can be found on medical devices even when the latter have been sterilised in accordance with the manufacturer’s instructions; |
| --- | --- |

AG.

whereas resistant bacteria can be found on medical devices even when the latter have been sterilised in accordance with the manufacturer’s instructions;

| AH. | whereas the use of antimicrobials in human and veterinary medicine contributes to a development of resistome in the environment which may serve as a source of resistance development in both humans and animals; whereas the same classes of antibiotics are used in both animal and human medicine and similar resistance mechanisms have emerged in both sectors; |
| --- | --- |

AH.

whereas the use of antimicrobials in human and veterinary medicine contributes to a development of resistome in the environment which may serve as a source of resistance development in both humans and animals; whereas the same classes of antibiotics are used in both animal and human medicine and similar resistance mechanisms have emerged in both sectors;

| AI. | whereas high-density farming may imply that antibiotics are improperly and routinely fed to livestock, poultry and fish on farms to promote faster growth and are also widely used for prophylaxis purposes, to prevent disease spreading owing to the cramped, confined and stressful conditions in which the animals are kept and which inhibit their immune systems, and to compensate for the unsanitary conditions in which they are raised; |
| --- | --- |

AI.

whereas high-density farming may imply that antibiotics are improperly and routinely fed to livestock, poultry and fish on farms to promote faster growth and are also widely used for prophylaxis purposes, to prevent disease spreading owing to the cramped, confined and stressful conditions in which the animals are kept and which inhibit their immune systems, and to compensate for the unsanitary conditions in which they are raised;

| AJ. | whereas the One Health concept, endorsed by the World Health Organisation (WHO) and the World Organisation for Animal Health (OIE), recognises that human health, animal health and ecosystems are interconnected; whereas, in particular, animals and animal-derived food can serve as a direct main source of resistant zoonotic pathogens; whereas, therefore the use of antibiotics in animals, particularly those intended for consumption and kept in high-density farming, can affect antibiotic resistance in humans; |
| --- | --- |

AJ.

whereas the One Health concept, endorsed by the World Health Organisation (WHO) and the World Organisation for Animal Health (OIE), recognises that human health, animal health and ecosystems are interconnected; whereas, in particular, animals and animal-derived food can serve as a direct main source of resistant zoonotic pathogens; whereas, therefore the use of antibiotics in animals, particularly those intended for consumption and kept in high-density farming, can affect antibiotic resistance in humans;

| AK. | whereas, in the light of the One Health concept, an approach whereby both human and veterinary medical professionals undertake initiatives to prevent resistant infections and reduce the use of antibiotics can prevent HAIs, both inside and outside hospitals; |
| --- | --- |

AK.

whereas, in the light of the One Health concept, an approach whereby both human and veterinary medical professionals undertake initiatives to prevent resistant infections and reduce the use of antibiotics can prevent HAIs, both inside and outside hospitals;

| AL. | whereas, according to the WHO, antimicrobials are used much more in livestock than they are in human beings in a number of EU Member States (5); |
| --- | --- |

AL.

whereas, according to the WHO, antimicrobials are used much more in livestock than they are in human beings in a number of EU Member States (5);

| AM. | whereas, according to European consumer associations, over 70 % of meat products tested in six EU Member States were found to be contaminated with antibiotic-resistant bacteria, while in a further eight such bacteria were present in 50 % of all samples (6); |
| --- | --- |

AM.

whereas, according to European consumer associations, over 70 % of meat products tested in six EU Member States were found to be contaminated with antibiotic-resistant bacteria, while in a further eight such bacteria were present in 50 % of all samples (6);

| AN. | whereas high levels of Campylobacter resistance to fluoroquinolones have been observed and most human Campylobacter infections come from the handling, preparation and consumption of chicken; whereas such high levels of resistance reduce the effective treatment options for human Campylobacter infections; |
| --- | --- |

AN.

whereas high levels of Campylobacter resistance to fluoroquinolones have been observed and most human Campylobacter infections come from the handling, preparation and consumption of chicken; whereas such high levels of resistance reduce the effective treatment options for human Campylobacter infections;

| AO. | whereas in the EU the sub-therapeutic use of antibiotics, which involves low doses of antibiotics being fed to livestock to promote their growth, has been banned since 2006; |
| --- | --- |

AO.

whereas in the EU the sub-therapeutic use of antibiotics, which involves low doses of antibiotics being fed to livestock to promote their growth, has been banned since 2006;

| AP. | whereas the vast majority of medicated feed for farmed animals contains antimicrobials; |
| --- | --- |

AP.

whereas the vast majority of medicated feed for farmed animals contains antimicrobials;

| AQ. | whereas the use of antimicrobials in pets is an additional risk factor for the development and transmission of antimicrobial resistance in human beings, and whereas the upward trends in antibiotic resistance encountered at veterinary clinics for pets run parallel to similar trends at hospitals; |
| --- | --- |

AQ.

whereas the use of antimicrobials in pets is an additional risk factor for the development and transmission of antimicrobial resistance in human beings, and whereas the upward trends in antibiotic resistance encountered at veterinary clinics for pets run parallel to similar trends at hospitals;

| AR. | whereas the risk of transmission of antimicrobial resistance from pets to human beings cannot be fully quantified, and whereas further research into this is needed; |
| --- | --- |

AR.

whereas the risk of transmission of antimicrobial resistance from pets to human beings cannot be fully quantified, and whereas further research into this is needed;

| AS. | whereas it is acknowledged that the current legislation on veterinary medicines does not provide sufficient tools to ensure that risks to human health arising from the use of antimicrobials in animals are adequately managed; |
| --- | --- |

AS.

whereas it is acknowledged that the current legislation on veterinary medicines does not provide sufficient tools to ensure that risks to human health arising from the use of antimicrobials in animals are adequately managed;

| AT. | whereas the issue of off-label use of antibiotics is a concern for animal medicine as well as human medicine; |
| --- | --- |

AT.

whereas the issue of off-label use of antibiotics is a concern for animal medicine as well as human medicine;

| AU. | whereas pharmaceutical companies tend to add new antibiotics within existing classes of antibiotics rather than discover and develop truly new antibacterial agents, and as a result, resistance to these new agents will emerge faster than for drugs with a truly new mechanism of action; |
| --- | --- |

AU.

whereas pharmaceutical companies tend to add new antibiotics within existing classes of antibiotics rather than discover and develop truly new antibacterial agents, and as a result, resistance to these new agents will emerge faster than for drugs with a truly new mechanism of action;

| AV. | whereas it is necessary to encourage pharmaceutical laboratories to develop new antibiotics by giving thought to the creation of incentives and alternative economic models to reward innovation; |
| --- | --- |

AV.

whereas it is necessary to encourage pharmaceutical laboratories to develop new antibiotics by giving thought to the creation of incentives and alternative economic models to reward innovation;

| AW. | whereas it is of paramount importance to encourage pharmaceutical companies to invest and to continue investing in the development of new antimicrobial agents, in particular those active against diseases for which antimicrobial resistance is a serious concern, in particular:






  — | diseases caused by prevalent multidrug-resistant Gram-negative bacteria (such as K. pneumoniae and Acinetobacter or E. coli), or by other multidrug-resistant bacteria like Staphylococcus aureus or tuberculosis; |
| --- | --- | --- |

AW.

whereas it is of paramount importance to encourage pharmaceutical companies to invest and to continue investing in the development of new antimicrobial agents, in particular those active against diseases for which antimicrobial resistance is a serious concern, in particular:

—

diseases caused by prevalent multidrug-resistant Gram-negative bacteria (such as K. pneumoniae and Acinetobacter or E. coli), or by other multidrug-resistant bacteria like Staphylococcus aureus or tuberculosis;

| — | other diseases caused by viruses (such as HIV), or by parasites (such as malaria); |
| --- | --- |

—

other diseases caused by viruses (such as HIV), or by parasites (such as malaria);

as well as developing other methods to fight HAIs without using antibiotics;

| AX. | whereas this can be achieved by addressing some of the key scientific, regulatory and economic challenges that have hampered the development of antimicrobials, and in particular by incentivising investment in research and development and focusing it on the greatest public health needs, while preserving the sustainability of national health systems; |
| --- | --- |

AX.

whereas this can be achieved by addressing some of the key scientific, regulatory and economic challenges that have hampered the development of antimicrobials, and in particular by incentivising investment in research and development and focusing it on the greatest public health needs, while preserving the sustainability of national health systems;

| AY. | whereas paragraph 2 of Article 4 of Directive 2001/18/EC sets a deadline for the use of genes conferring antibiotic resistance to transgenic plants; |
| --- | --- |

AY.

whereas paragraph 2 of Article 4 of Directive 2001/18/EC sets a deadline for the use of genes conferring antibiotic resistance to transgenic plants;

| AZ. | whereas product specialists should never perform therapeutic treatments, but should only support medical staff when and if required by the latter, for example to perform operations of assembling or disassembling specific instruments; |
| --- | --- |

AZ.

whereas product specialists should never perform therapeutic treatments, but should only support medical staff when and if required by the latter, for example to perform operations of assembling or disassembling specific instruments;

| BA. | whereas the provisions of Directive 2011/24/EU on patient mobility are being implemented throughout the EU, making it more pertinent that European patients should be informed on patient safety in the various Member States; |
| --- | --- |

BA.

whereas the provisions of Directive 2011/24/EU on patient mobility are being implemented throughout the EU, making it more pertinent that European patients should be informed on patient safety in the various Member States;

| BB. | whereas it is vital to ensure patients’ rights and public confidence in health services, by ensuring that Member States have systems in place to provide fair financial compensation in the case of negligence arising from faulty medical provision; |
| --- | --- |

BB.

whereas it is vital to ensure patients’ rights and public confidence in health services, by ensuring that Member States have systems in place to provide fair financial compensation in the case of negligence arising from faulty medical provision;

| BC. | whereas the internet is the biggest unregulated pharmaceuticals market in the world; whereas 62 % of pharmaceuticals bought online prove to be fake or non-compliant with standards; whereas a very large proportion of operators operating online do so illegally and the annual global turnover from the illegal online sale of prescription medicines is estimated at around USD 200 billion; |
| --- | --- |

BC.

whereas the internet is the biggest unregulated pharmaceuticals market in the world; whereas 62 % of pharmaceuticals bought online prove to be fake or non-compliant with standards; whereas a very large proportion of operators operating online do so illegally and the annual global turnover from the illegal online sale of prescription medicines is estimated at around USD 200 billion;

| BD. | whereas Article 168 of the Treaty on the Functioning of the European Union stipulates that Union action must complement national policies and must be directed towards improving public health, preventing physical and mental illness and diseases, and obviating sources of danger to physical and mental health; |
| --- | --- |

BD.

whereas Article 168 of the Treaty on the Functioning of the European Union stipulates that Union action must complement national policies and must be directed towards improving public health, preventing physical and mental illness and diseases, and obviating sources of danger to physical and mental health;

Implementation of the Council’s recommendations on patient safety

Feedback on the Commission’s second implementation report

| 1. | Recalls that the EU pharmaceutical legislation was put in place to protect patient safety; recalls its above-mentioned resolution of 22 October 2013 on the report from the Commission to the Council on the basis of Member States’ reports on the implementation on the Council Recommendation (2009/C 151/01) on patient safety, including the prevention and control of healthcare-associated infections; |
| --- | --- |

1.

Recalls that the EU pharmaceutical legislation was put in place to protect patient safety; recalls its above-mentioned resolution of 22 October 2013 on the report from the Commission to the Council on the basis of Member States’ reports on the implementation on the Council Recommendation (2009/C 151/01) on patient safety, including the prevention and control of healthcare-associated infections;

| 2. | Welcomes the improvement of the HAI surveillance system in the EU and the other recent measures put in place by certain Member States to improve general patient safety and reduce the incidence of HAIs, and more particularly the progress made by Member States in developing patient safety strategies and programmes, including patient safety in health legislation, and in developing reporting and learning systems; |
| --- | --- |

2.

Welcomes the improvement of the HAI surveillance system in the EU and the other recent measures put in place by certain Member States to improve general patient safety and reduce the incidence of HAIs, and more particularly the progress made by Member States in developing patient safety strategies and programmes, including patient safety in health legislation, and in developing reporting and learning systems;

| 3. | Notes, however, that the second implementation report still shows uneven progress among Member States on patient safety, and regrets the fact that some Member States have obviously slowed down implementation of the Council recommendations among others, possibly as a consequence of financial constraints resulting from the economic crisis; |
| --- | --- |

3.

Notes, however, that the second implementation report still shows uneven progress among Member States on patient safety, and regrets the fact that some Member States have obviously slowed down implementation of the Council recommendations among others, possibly as a consequence of financial constraints resulting from the economic crisis;

| 4. | Regrets that austerity measures have seen a reduction in the level of cleaning staff in hospitals and other healthcare settings across Europe, given the critical role cleaning staff have in ensuring high levels of hygiene; |
| --- | --- |

4.

Regrets that austerity measures have seen a reduction in the level of cleaning staff in hospitals and other healthcare settings across Europe, given the critical role cleaning staff have in ensuring high levels of hygiene;

| 5. | Calls on Member States to make sure, in this period of economic crisis, that patient safety is not affected by austerity measures and that healthcare systems remain adequately funded and, in particular, to avoid the most damaging of measures, such as short-term savings, which would lead to high costs in the medium to long term, and instead to concentrate on the further development of high-quality and high-efficiency healthcare systems; calls on Member States to ensure that there are a sufficient number of healthcare professionals trained or specialised in infection prevention and control, as well as hospital hygiene, with a view to a more patient-centred approach; |
| --- | --- |

5.

Calls on Member States to make sure, in this period of economic crisis, that patient safety is not affected by austerity measures and that healthcare systems remain adequately funded and, in particular, to avoid the most damaging of measures, such as short-term savings, which would lead to high costs in the medium to long term, and instead to concentrate on the further development of high-quality and high-efficiency healthcare systems; calls on Member States to ensure that there are a sufficient number of healthcare professionals trained or specialised in infection prevention and control, as well as hospital hygiene, with a view to a more patient-centred approach;

| 6. | Calls on Member States to set specific and ambitious quantitative targets for reducing the use of antibiotics; |
| --- | --- |

6.

Calls on Member States to set specific and ambitious quantitative targets for reducing the use of antibiotics;

| 7. | Welcomes the work of the EU Working Group on Patient Safety and Quality of Care, which brings together representatives from all 28 EU Member States, EFTA countries, international organisations and EU bodies, and assists in developing the EU’s patient safety and quality agenda; |
| --- | --- |

7.

Welcomes the work of the EU Working Group on Patient Safety and Quality of Care, which brings together representatives from all 28 EU Member States, EFTA countries, international organisations and EU bodies, and assists in developing the EU’s patient safety and quality agenda;

| 8. | Calls on the Commission to continue monitoring the implementation of the provisions on patient safety in the Member States, and where necessary to develop new guidelines accordingly; |
| --- | --- |

8.

Calls on the Commission to continue monitoring the implementation of the provisions on patient safety in the Member States, and where necessary to develop new guidelines accordingly;

Leads for improvements

| 9. | Welcomes the work cofinanced by the EU and performed by the OECD on comparable indicators to assess patient safety; calls on the Member States to implement such indicators with a view to assessing patient safety; |
| --- | --- |

9.

Welcomes the work cofinanced by the EU and performed by the OECD on comparable indicators to assess patient safety; calls on the Member States to implement such indicators with a view to assessing patient safety;

| 10. | Notes the importance of including patient safety in the education, on-the-job-training and continuing training of healthcare workers and health professionals in all Member States; |
| --- | --- |

10.

Notes the importance of including patient safety in the education, on-the-job-training and continuing training of healthcare workers and health professionals in all Member States;

| 11. | Highlights the potential benefits of eHealth in reducing adverse events by tracking information flows and improving the understanding of medical processes, as well as through digital prescriptions and alerts on drug interaction; calls on the Commission and the Member States to further explore the possibilities offered by eHealth in the area of patient safety, including the introduction of electronic patient records, and to step up the level of cooperation so as to share their experiences, knowledge and good practices in this sector; |
| --- | --- |

11.

Highlights the potential benefits of eHealth in reducing adverse events by tracking information flows and improving the understanding of medical processes, as well as through digital prescriptions and alerts on drug interaction; calls on the Commission and the Member States to further explore the possibilities offered by eHealth in the area of patient safety, including the introduction of electronic patient records, and to step up the level of cooperation so as to share their experiences, knowledge and good practices in this sector;

| 12. | Calls on the Commission and the Member States to assess the potential of mobile health (mhealth) in relation to efficiency of care, incidence of hospitalisation and the reduction of annual per capita healthcare costs; |
| --- | --- |

12.

Calls on the Commission and the Member States to assess the potential of mobile health (mhealth) in relation to efficiency of care, incidence of hospitalisation and the reduction of annual per capita healthcare costs;

| 13. | Notes that the use of antibiotics and the prevalence of antimicrobial resistance vary widely between Member States, and encourages Member States to apply best practices; |
| --- | --- |

13.

Notes that the use of antibiotics and the prevalence of antimicrobial resistance vary widely between Member States, and encourages Member States to apply best practices;

| 14. | Underlines the urgent need to promote veterinary research and innovation at EU and national level; |
| --- | --- |

14.

Underlines the urgent need to promote veterinary research and innovation at EU and national level;

| 15. | Urges the Member States to implement or develop the following measures:






  (a) | continue their efforts to improve patient safety by taking the necessary measures in order to fully implement the Council’s recommendations; |
| --- | --- | --- |

15.

Urges the Member States to implement or develop the following measures:

(a)

continue their efforts to improve patient safety by taking the necessary measures in order to fully implement the Council’s recommendations;

| (b) | regularly collect data, in accordance with standardised surveys, on the prevalence and incidence of adverse events in their own territory, and enhance early warning alert systems and coordinate exchanges of these data effectively; |
| --- | --- |

(b)

regularly collect data, in accordance with standardised surveys, on the prevalence and incidence of adverse events in their own territory, and enhance early warning alert systems and coordinate exchanges of these data effectively;

| (c) | ensure that health managers are appointed on the basis of merit and not of political affiliation; |
| --- | --- |

(c)

ensure that health managers are appointed on the basis of merit and not of political affiliation;

| (d) | ensure the continuous improvement and ongoing evaluation of working conditions for healthcare professionals with a view to improving patient safety; |
| --- | --- |

(d)

ensure the continuous improvement and ongoing evaluation of working conditions for healthcare professionals with a view to improving patient safety;

| (e) | ensure basic training of all healthcare personnel, even those who are not in direct contact with patients, in infection prevention and control before they start working in a hospital or other healthcare facility, and regularly afterwards; |
| --- | --- |

(e)

ensure basic training of all healthcare personnel, even those who are not in direct contact with patients, in infection prevention and control before they start working in a hospital or other healthcare facility, and regularly afterwards;

| (f) | ensure the appropriate and up-to-date training of doctors and other healthcare professionals, as well as the exchange of best practices, in order to keep pace with the latest technology in place and best hospital hygiene practices, and set up monitoring systems to verify that their competences are up-to-date, especially regarding the implementation of the WHO Surgical Safety Checklist; this would reduce the prevalence of medical errors (including HAIs) caused by partial knowledge and failure to keep up with new technological advances; |
| --- | --- |

(f)

ensure the appropriate and up-to-date training of doctors and other healthcare professionals, as well as the exchange of best practices, in order to keep pace with the latest technology in place and best hospital hygiene practices, and set up monitoring systems to verify that their competences are up-to-date, especially regarding the implementation of the WHO Surgical Safety Checklist; this would reduce the prevalence of medical errors (including HAIs) caused by partial knowledge and failure to keep up with new technological advances;

| (g) | ensure the adoption of a multidisciplinary approach in medical treatments; |
| --- | --- |

(g)

ensure the adoption of a multidisciplinary approach in medical treatments;

| (h) | ensure better coherence and continuity in patients’ progress through the system, focusing on transition between sectors and the transmission of information, for example from the hospital to the primary care sector; |
| --- | --- |

(h)

ensure better coherence and continuity in patients’ progress through the system, focusing on transition between sectors and the transmission of information, for example from the hospital to the primary care sector;

| (i) | lighten the burden on healthcare facilities by promoting care and medical treatment at home; |
| --- | --- |

(i)

lighten the burden on healthcare facilities by promoting care and medical treatment at home;

| (j) | ensure that medical professionals inform patients when a medicine is used off-label and provide patients with information on the potential risks in order to enable them to give informed consent; |
| --- | --- |

(j)

ensure that medical professionals inform patients when a medicine is used off-label and provide patients with information on the potential risks in order to enable them to give informed consent;

| (k) | exchange among themselves information on the best approach with regard to combating antibiotic resistance in order to implement the most effective approach throughout Europe; |
| --- | --- |

(k)

exchange among themselves information on the best approach with regard to combating antibiotic resistance in order to implement the most effective approach throughout Europe;

| (l) | ensure equal access to health services and medical treatment for patients in order to combat existing health inequalities; |
| --- | --- |

(l)

ensure equal access to health services and medical treatment for patients in order to combat existing health inequalities;

| (m) | promote information campaigns for patients concerning the risks of adverse events in the healthcare system and concerning possible preventive measures, starting with basic hygiene measures, and launch awareness-raising campaigns and health education courses in schools concerning the rational use not only of antibiotics but of all pharmaceuticals and the risks entailed by the rise of antibiotic resistance; these campaigns should address parents and carers responsible for young children as well as for elderly people, and should be followed by an assessment of their outcomes; |
| --- | --- |

(m)

promote information campaigns for patients concerning the risks of adverse events in the healthcare system and concerning possible preventive measures, starting with basic hygiene measures, and launch awareness-raising campaigns and health education courses in schools concerning the rational use not only of antibiotics but of all pharmaceuticals and the risks entailed by the rise of antibiotic resistance; these campaigns should address parents and carers responsible for young children as well as for elderly people, and should be followed by an assessment of their outcomes;

| (n) | emphasise the importance of prevention of HAIs in healthcare settings by means of containment of spread through patient and contact screening as well as infection control measures, and continue promoting good hygiene practices (like hand-washing); |
| --- | --- |

(n)

emphasise the importance of prevention of HAIs in healthcare settings by means of containment of spread through patient and contact screening as well as infection control measures, and continue promoting good hygiene practices (like hand-washing);

| (o) | step up hygiene precautions, making greater use of hygiene specialists to monitor all aspects of health and hygiene relating to healthcare facilities, patients and relations between patients and outside ‘guests’; |
| --- | --- |

(o)

step up hygiene precautions, making greater use of hygiene specialists to monitor all aspects of health and hygiene relating to healthcare facilities, patients and relations between patients and outside ‘guests’;

| (p) | actively and formally involve patients’ organisations and representatives at all stages and levels of policies and programme development; |
| --- | --- |

(p)

actively and formally involve patients’ organisations and representatives at all stages and levels of policies and programme development;

| (q) | develop EU guidance for patients’ involvement in patient safety strategies and actions in collaboration with stakeholders, particularly patient organisations; |
| --- | --- |

(q)

develop EU guidance for patients’ involvement in patient safety strategies and actions in collaboration with stakeholders, particularly patient organisations;

| (r) | provide them with appropriate support to carry out patient safety activities; |
| --- | --- |

(r)

provide them with appropriate support to carry out patient safety activities;

| 16. | Calls on Member States to investigate possible malpractice involved in the refurbishment and re-use of medical devices originally designed and labelled for single use; |
| --- | --- |

16.

Calls on Member States to investigate possible malpractice involved in the refurbishment and re-use of medical devices originally designed and labelled for single use;

| 17. | Urges Member States to improve awareness programmes for medical professionals, other healthcare workers, veterinary practitioners and the general public focusing on antibiotic use and prevention of infections; |
| --- | --- |

17.

Urges Member States to improve awareness programmes for medical professionals, other healthcare workers, veterinary practitioners and the general public focusing on antibiotic use and prevention of infections;

| 18. | Calls on the European Medicines Agency (EMA) to develop guidelines on the off-label/unlicensed use of medicines based on medical need, as well as to compile a list of off-label medicines in use despite licensed alternatives; |
| --- | --- |

18.

Calls on the European Medicines Agency (EMA) to develop guidelines on the off-label/unlicensed use of medicines based on medical need, as well as to compile a list of off-label medicines in use despite licensed alternatives;

| 19. | Calls on the Commission and the ECDC to develop guidelines for healthcare professionals, patients and their families on effective hand washing and drying and encouraging the use of hand drying methods that do not facilitate microbial cross-contamination via airborne dissemination and aerosolisation; |
| --- | --- |

19.

Calls on the Commission and the ECDC to develop guidelines for healthcare professionals, patients and their families on effective hand washing and drying and encouraging the use of hand drying methods that do not facilitate microbial cross-contamination via airborne dissemination and aerosolisation;

| 20. | Underlines the need for major improvements in communication and in education and training aimed at both veterinarians and farmers; |
| --- | --- |

20.

Underlines the need for major improvements in communication and in education and training aimed at both veterinarians and farmers;

| 21. | Urges the Commission once again to present, as soon as possible, a legislative proposal for the mandatory addition of the drug-fact-box to the package leaflet; the information provided by the drug-fact-box should be presented in a form that is clearly legible, prominent and clearly distinguishable from the rest of the text; this drug-fact-box should contain a short description of the necessary facts concerning the medicine in order to enable the patient to understand the utility and possible risks of the medicinal product and in order to apply the medicinal product safely and in the right way; this includes inter alia advice on how to use antibiotics in the right and proper way; |
| --- | --- |

21.

Urges the Commission once again to present, as soon as possible, a legislative proposal for the mandatory addition of the drug-fact-box to the package leaflet; the information provided by the drug-fact-box should be presented in a form that is clearly legible, prominent and clearly distinguishable from the rest of the text; this drug-fact-box should contain a short description of the necessary facts concerning the medicine in order to enable the patient to understand the utility and possible risks of the medicinal product and in order to apply the medicinal product safely and in the right way; this includes inter alia advice on how to use antibiotics in the right and proper way;

| 22. | Calls on the Commission and the Member States to promote the introduction of the European logo provided for by Implementing Regulation (EU) No 699/2014 in order to identify clearly online pharmacies which offer medicines for sale to the public remotely while safeguarding consumers against the purchase of fake medicines, which are often a health hazard; |
| --- | --- |

22.

Calls on the Commission and the Member States to promote the introduction of the European logo provided for by Implementing Regulation (EU) No 699/2014 in order to identify clearly online pharmacies which offer medicines for sale to the public remotely while safeguarding consumers against the purchase of fake medicines, which are often a health hazard;

| 23. | Points out that, on the basis of Decision No 1082/2013/EU on serious cross-border threats to health, Member States must provide the Commission with updates on the latest situation with regard to their preparedness and response planning at national level, and calls on Member States to submit the information concerned in accordance with the timetable established by that decision; |
| --- | --- |

23.

Points out that, on the basis of Decision No 1082/2013/EU on serious cross-border threats to health, Member States must provide the Commission with updates on the latest situation with regard to their preparedness and response planning at national level, and calls on Member States to submit the information concerned in accordance with the timetable established by that decision;

Reporting and accountability/liability issues

| 24. | Urges Member States to encourage regular information input from health professionals advising patients on how to minimise risks to their safety through contact with the healthcare system; |
| --- | --- |

24.

Urges Member States to encourage regular information input from health professionals advising patients on how to minimise risks to their safety through contact with the healthcare system;

| 25. | Encourages the Member States to set up independent bodies to liaise with professionals in order to ensure the raising of awareness and the dissemination of alerts regarding threats to patient safety; |
| --- | --- |

25.

Encourages the Member States to set up independent bodies to liaise with professionals in order to ensure the raising of awareness and the dissemination of alerts regarding threats to patient safety;

| 26. | Calls on the Member States to improve their reporting systems for adverse events and medical errors by developing measures that encourage accurate, blame-free and anonymous reporting by health professionals and patients, and to consider establishing an e-system which could facilitate and improve reporting by patients; |
| --- | --- |

26.

Calls on the Member States to improve their reporting systems for adverse events and medical errors by developing measures that encourage accurate, blame-free and anonymous reporting by health professionals and patients, and to consider establishing an e-system which could facilitate and improve reporting by patients;

| 27. | Calls on the Member States to adopt measures that would improve the quality — and not just the quantity — of reporting on adverse events, so that reporting contains robust information that would really improve patient safety, and to establish a system in which data could be easily retrieved and which would ensure comprehensive and systematic evaluation; |
| --- | --- |

27.

Calls on the Member States to adopt measures that would improve the quality — and not just the quantity — of reporting on adverse events, so that reporting contains robust information that would really improve patient safety, and to establish a system in which data could be easily retrieved and which would ensure comprehensive and systematic evaluation;

| 28. | Calls on the Commission to develop standardised surveys for collecting data on HAIs; |
| --- | --- |

28.

Calls on the Commission to develop standardised surveys for collecting data on HAIs;

| 29. | Calls on the Member States to be more rigorous in verifying and enforcing the ban on non-medical external staff performing medical treatment; |
| --- | --- |

29.

Calls on the Member States to be more rigorous in verifying and enforcing the ban on non-medical external staff performing medical treatment;

| 30. | Calls on Member States to inform patients about the risks and preventive measures relating to adverse events in healthcare, and about the complaint procedures and legal options available should an adverse event occur, via, for example, a patients’ rights representative; |
| --- | --- |

30.

Calls on Member States to inform patients about the risks and preventive measures relating to adverse events in healthcare, and about the complaint procedures and legal options available should an adverse event occur, via, for example, a patients’ rights representative;

| 31. | Calls on the Member States to take the necessary measures to avoid any conflict of interests affecting doctors and veterinarians in relation to prescription and sale of medicines; |
| --- | --- |

31.

Calls on the Member States to take the necessary measures to avoid any conflict of interests affecting doctors and veterinarians in relation to prescription and sale of medicines;

| 32. | Calls on the Member States to ensure that full information on existing mechanisms for complaint and redress is readily available to patients who have suffered an HAI or a medical error; |
| --- | --- |

32.

Calls on the Member States to ensure that full information on existing mechanisms for complaint and redress is readily available to patients who have suffered an HAI or a medical error;

| 33. | Invites the Commission to report on national practices of collective redress in HAI-related cases; |
| --- | --- |

33.

Invites the Commission to report on national practices of collective redress in HAI-related cases;

| 34. | Recognizes the value of citizens’ initiatives, such as the European Charter of Patients’ Rights based on the Charter of Fundamental Rights of the European Union, and the European Patients’ Rights Day, which has been organised every year on 18 April since 2007; invites the Commission and the Member States to support the European Patients’ Rights Day at local, national and EU level; |
| --- | --- |

34.

Recognizes the value of citizens’ initiatives, such as the European Charter of Patients’ Rights based on the Charter of Fundamental Rights of the European Union, and the European Patients’ Rights Day, which has been organised every year on 18 April since 2007; invites the Commission and the Member States to support the European Patients’ Rights Day at local, national and EU level;

Fighting antimicrobial resistance

State of play and promising solutions

| 35. | Welcomes the Commission’s work on antimicrobial resistance and on the prevention and control of HAIs, as well as the coordination and surveillance efforts of the ECDC, in particular in the framework of the European Antimicrobial Resistance Surveillance Network (EARS-Net), the European Surveillance of Antimicrobial Consumption Network (ESAC-Net) and the Healthcare-Associated Infections surveillance Network (HAI-Net); |
| --- | --- |

35.

Welcomes the Commission’s work on antimicrobial resistance and on the prevention and control of HAIs, as well as the coordination and surveillance efforts of the ECDC, in particular in the framework of the European Antimicrobial Resistance Surveillance Network (EARS-Net), the European Surveillance of Antimicrobial Consumption Network (ESAC-Net) and the Healthcare-Associated Infections surveillance Network (HAI-Net);

| 36. | Welcomes the joint work of coordination and surveillance on antimicrobial resistance of the ECDC, the EMA and the European Food Safety Authority (EFSA); |
| --- | --- |

36.

Welcomes the joint work of coordination and surveillance on antimicrobial resistance of the ECDC, the EMA and the European Food Safety Authority (EFSA);

| 37. | Notes with concern that between 2010 and 2013 the percentages of K. pneumoniae resistant to fluoroquinolones, third-generation cephalosporins and aminoglycosides, as well as combined resistance to all three antibiotic groups and resistance to carbapenems, a last-line group of antibiotics, significantly increased in many Member States and at EU level; also notes that during the same period resistance to third-generation cephalosporins also significantly increased in many Member States and at EU level for E. coli; further notes that in certain regions of Europe MDR-TB accounts for as many as 20 % of all new tuberculosis cases, while treatment outcomes for MDR-TB are alarmingly low; |
| --- | --- |

37.

Notes with concern that between 2010 and 2013 the percentages of K. pneumoniae resistant to fluoroquinolones, third-generation cephalosporins and aminoglycosides, as well as combined resistance to all three antibiotic groups and resistance to carbapenems, a last-line group of antibiotics, significantly increased in many Member States and at EU level; also notes that during the same period resistance to third-generation cephalosporins also significantly increased in many Member States and at EU level for E. coli; further notes that in certain regions of Europe MDR-TB accounts for as many as 20 % of all new tuberculosis cases, while treatment outcomes for MDR-TB are alarmingly low;

| 38. | Notes with concern that in countries with high levels of multi-drug resistance, including resistance to carbapenems, only a few therapeutic options are available, among these being polymyxins; emphasises that in those countries the presence of bacteria resistant to polymyxins is a major warning that options for the treatment of infected patients are becoming even more limited; |
| --- | --- |

38.

Notes with concern that in countries with high levels of multi-drug resistance, including resistance to carbapenems, only a few therapeutic options are available, among these being polymyxins; emphasises that in those countries the presence of bacteria resistant to polymyxins is a major warning that options for the treatment of infected patients are becoming even more limited;

| 39. | Notes that infections caused by antimicrobial resistant bacteria are very likely to entail costly prolonged hospital stays as well as the use of alternative and more expensive therapeutic treatments which will place an increased burden on the Member States’ healthcare systems; |
| --- | --- |

39.

Notes that infections caused by antimicrobial resistant bacteria are very likely to entail costly prolonged hospital stays as well as the use of alternative and more expensive therapeutic treatments which will place an increased burden on the Member States’ healthcare systems;

| 40. | Regrets that the past 25 years have witnessed both a lack of awareness of the importance of rational use of antimicrobial agents, and antibiotics in particular, and a stagnation in drug development in the field of antimicrobial medicines, due in particular to the emergence of scientific, economic and regulatory barriers; |
| --- | --- |

40.

Regrets that the past 25 years have witnessed both a lack of awareness of the importance of rational use of antimicrobial agents, and antibiotics in particular, and a stagnation in drug development in the field of antimicrobial medicines, due in particular to the emergence of scientific, economic and regulatory barriers;

| 41. | Notes that both Horizon 2020 and the EU Third Public Health Programme have placed emphasis on HAIs and antimicrobial resistance; |
| --- | --- |

41.

Notes that both Horizon 2020 and the EU Third Public Health Programme have placed emphasis on HAIs and antimicrobial resistance;

| 42. | Notes that some existing and effective antibiotics are not available in several Member States, resulting in inappropriate selection of drug therapy, and therefore calls on the Member States and the Commission to examine how to keep effective antibiotics on the market; |
| --- | --- |

42.

Notes that some existing and effective antibiotics are not available in several Member States, resulting in inappropriate selection of drug therapy, and therefore calls on the Member States and the Commission to examine how to keep effective antibiotics on the market;

| 43. | Points out that antibiotic resistance often holds up treatment with the right antibiotics and that, when they are given the wrong antibiotics or treatment starts too late, patients with serious infectious diseases suffer grave complications which in some cases can be fatal; |
| --- | --- |

43.

Points out that antibiotic resistance often holds up treatment with the right antibiotics and that, when they are given the wrong antibiotics or treatment starts too late, patients with serious infectious diseases suffer grave complications which in some cases can be fatal;

| 44. | Notes with great concern the high number of animals infected with bacteria that are resistant to antibiotics, and the risk of carry-over of these bacteria from infected meat to consumers; |
| --- | --- |

44.

Notes with great concern the high number of animals infected with bacteria that are resistant to antibiotics, and the risk of carry-over of these bacteria from infected meat to consumers;

| 45. | Notes with great concern the link between veterinary use of antimicrobials and the development of antimicrobial resistance in farmers, and the risk of this resistance being spread by hospital treatment; |
| --- | --- |

45.

Notes with great concern the link between veterinary use of antimicrobials and the development of antimicrobial resistance in farmers, and the risk of this resistance being spread by hospital treatment;

| 46. | Welcomes initiatives and actions taken by the Member States, animal health professionals and animal owners aimed at ensuring responsible use of antimicrobials in animals and reducing antimicrobial use in animal husbandry; |
| --- | --- |

46.

Welcomes initiatives and actions taken by the Member States, animal health professionals and animal owners aimed at ensuring responsible use of antimicrobials in animals and reducing antimicrobial use in animal husbandry;

| 47. | Considers research for new antimicrobial drugs to be of the utmost importance, and calls on the Commission to use the European Fund for Strategic Investments (EFSI) to stimulate research by, for instance, supporting existing structures such as the Innovative Medicines Initiatives (IMI); |
| --- | --- |

47.

Considers research for new antimicrobial drugs to be of the utmost importance, and calls on the Commission to use the European Fund for Strategic Investments (EFSI) to stimulate research by, for instance, supporting existing structures such as the Innovative Medicines Initiatives (IMI);

| 48. | Calls for greater attention to be focused on the development of new antimicrobial agents aimed at new targets; |
| --- | --- |

48.

Calls for greater attention to be focused on the development of new antimicrobial agents aimed at new targets;

| 49. | Welcomes and encourages further research into genuinely new antimicrobial drugs, in particular antibiotics with activity against prevalent multidrug-resistant Gram-negative bacteria and against diseases that are particularly prone to antimicrobial resistance, such as K. pneumoniae, Acinetobacter, E. coli, HIV, Staphylococcus aureus, tuberculosis and malaria; insists, however, that it is of primary importance to first of all ensure the responsible and sensible use of antimicrobials; welcomes and encourages further research into alternative methods aimed at fighting HAIs without using antibiotics and at combating MDR-TB; |
| --- | --- |

49.

Welcomes and encourages further research into genuinely new antimicrobial drugs, in particular antibiotics with activity against prevalent multidrug-resistant Gram-negative bacteria and against diseases that are particularly prone to antimicrobial resistance, such as K. pneumoniae, Acinetobacter, E. coli, HIV, Staphylococcus aureus, tuberculosis and malaria; insists, however, that it is of primary importance to first of all ensure the responsible and sensible use of antimicrobials; welcomes and encourages further research into alternative methods aimed at fighting HAIs without using antibiotics and at combating MDR-TB;

| 50. | Calls on the Commission and the Member States to accelerate research and development activities with a view to providing new tools to fight bacterial infections that are increasingly prevalent in Europe; |
| --- | --- |

50.

Calls on the Commission and the Member States to accelerate research and development activities with a view to providing new tools to fight bacterial infections that are increasingly prevalent in Europe;

| 51. | Calls on the Commission and the Member States to strengthen incentives for public and private sector cooperation to reinvigorate antibiotic development R&D; |
| --- | --- |

51.

Calls on the Commission and the Member States to strengthen incentives for public and private sector cooperation to reinvigorate antibiotic development R&D;

| 52. | Calls on the Member States to step up the level of cooperation with regard to patient safety and combating antimicrobial resistance, in order to limit and reduce the spread of resistant micro-organisms from one Member State to another; |
| --- | --- |

52.

Calls on the Member States to step up the level of cooperation with regard to patient safety and combating antimicrobial resistance, in order to limit and reduce the spread of resistant micro-organisms from one Member State to another;

| 53. | Calls on the Commission and the Member States to use ‘adaptive pathways’ schemes and other regulatory tools for earlier patient access to innovative antibacterials to treat resistant infections; |
| --- | --- |

53.

Calls on the Commission and the Member States to use ‘adaptive pathways’ schemes and other regulatory tools for earlier patient access to innovative antibacterials to treat resistant infections;

| 54. | Calls on the Commission and the Member States to make use of the ‘adaptive pathway’ programme of the European Medicines Agency and to use all the regulatory tools at their disposal to enable more rapid access to innovative antibacterial treatment for patients; |
| --- | --- |

54.

Calls on the Commission and the Member States to make use of the ‘adaptive pathway’ programme of the European Medicines Agency and to use all the regulatory tools at their disposal to enable more rapid access to innovative antibacterial treatment for patients;

| 55. | Highlights the need for patients to be at the centre of any health policy, and encourages health literacy and patient involvement in treatment decision-making; |
| --- | --- |

55.

Highlights the need for patients to be at the centre of any health policy, and encourages health literacy and patient involvement in treatment decision-making;

| 56. | Considers it of paramount importance that the Commission should ensure the continuation of the EU Action Plan on Antimicrobial Resistance post-2016, emphasising how to overcome the scientific, regulatory and economic challenges associated with antimicrobial resistance, while including the prevention and control of healthcare-associated infections; |
| --- | --- |

56.

Considers it of paramount importance that the Commission should ensure the continuation of the EU Action Plan on Antimicrobial Resistance post-2016, emphasising how to overcome the scientific, regulatory and economic challenges associated with antimicrobial resistance, while including the prevention and control of healthcare-associated infections;

Recommendations regarding antibiotic use in human medicine

| 57. | Recalls that self-medication with antibiotics should be strictly prohibited and stresses the necessity of enforcement of a ‘prescription only’ policy for antibacterials by the national competent authorities of the Member States; |
| --- | --- |

57.

Recalls that self-medication with antibiotics should be strictly prohibited and stresses the necessity of enforcement of a ‘prescription only’ policy for antibacterials by the national competent authorities of the Member States;

| 58. | Calls on the Member States to take suitable actions to ensure the responsible and sensible use in human medicine of all antimicrobial agents and in particular of antibiotics that are considered to be last-line treatment of bacterial infections in hospitals, bearing in mind that improper use of antibiotics for preventive purposes (including in hospitals) is one of the main contributory factors in the emergence of antibiotic resistance; |
| --- | --- |

58.

Calls on the Member States to take suitable actions to ensure the responsible and sensible use in human medicine of all antimicrobial agents and in particular of antibiotics that are considered to be last-line treatment of bacterial infections in hospitals, bearing in mind that improper use of antibiotics for preventive purposes (including in hospitals) is one of the main contributory factors in the emergence of antibiotic resistance;

| 59. | Calls on the Member States to promote access to high-quality drugs as well as adherence to full treatment circles for all patients, with specific support for the most vulnerable, as a way to prevent the development of resistance; |
| --- | --- |

59.

Calls on the Member States to promote access to high-quality drugs as well as adherence to full treatment circles for all patients, with specific support for the most vulnerable, as a way to prevent the development of resistance;

| 60. | Urges Member States also to conduct research into so-called ‘forgotten’ antibiotics so that the range of pharmaceuticals from which to choose can be enlarged; |
| --- | --- |

60.

Urges Member States also to conduct research into so-called ‘forgotten’ antibiotics so that the range of pharmaceuticals from which to choose can be enlarged;

| 61. | Calls on the Commission to engage in the work of the WHO in developing a new economic model in order to take into consideration public health concerns and needs; |
| --- | --- |

61.

Calls on the Commission to engage in the work of the WHO in developing a new economic model in order to take into consideration public health concerns and needs;

| 62. | Calls on the Member States and the Commission to start a reflection process to develop a new economic model, that de-links the volume of sales from the reward paid for a new antibiotic, which would reflect the societal value of a new antibiotic and allow for sufficient return on investment for the company, while the purchaser would gain the right to use the product and have full control over volumes; |
| --- | --- |

62.

Calls on the Member States and the Commission to start a reflection process to develop a new economic model, that de-links the volume of sales from the reward paid for a new antibiotic, which would reflect the societal value of a new antibiotic and allow for sufficient return on investment for the company, while the purchaser would gain the right to use the product and have full control over volumes;

| 63. | Urges the Member States to implement or develop the following measures:






  (a) | remind physicians of the paramount importance of ensuring that the prescription of antibiotics for treatment is appropriate and responsible; |
| --- | --- | --- |

63.

Urges the Member States to implement or develop the following measures:

(a)

remind physicians of the paramount importance of ensuring that the prescription of antibiotics for treatment is appropriate and responsible;

| (b) | ensure that, whenever possible, appropriate microbiological diagnosis is systematically performed before prescribing antibiotics, for instance by using new diagnostic tools that could allow point-of-care rapid diagnosis, and/or antibiograms, especially in the case of diseases which have a tendency to relapse, as well as work to abolish hurdles that prevent proper microbiological diagnosis, especially in the ambulant sector; |
| --- | --- |

(b)

ensure that, whenever possible, appropriate microbiological diagnosis is systematically performed before prescribing antibiotics, for instance by using new diagnostic tools that could allow point-of-care rapid diagnosis, and/or antibiograms, especially in the case of diseases which have a tendency to relapse, as well as work to abolish hurdles that prevent proper microbiological diagnosis, especially in the ambulant sector;

| (c) | regulate the prescription of antibiotics for treatment, and in particular strictly implement laws prohibiting the provision of antibiotics for treatments without prescription, so that an appropriate use of medicines is ensured, specifying the therapeutic objective and selecting the appropriate drug therapy; |
| --- | --- |

(c)

regulate the prescription of antibiotics for treatment, and in particular strictly implement laws prohibiting the provision of antibiotics for treatments without prescription, so that an appropriate use of medicines is ensured, specifying the therapeutic objective and selecting the appropriate drug therapy;

| (d) | implement responsible marketing practices avoiding conflicts of interest between producers and prescribers of medicine; |
| --- | --- |

(d)

implement responsible marketing practices avoiding conflicts of interest between producers and prescribers of medicine;

| (e) | encourage the development of new revenue models whereby economic returns for companies are de-linked from prescribed volumes of antibiotics, while encouraging pharmaceutical innovation and balancing it with the sustainability of health systems; |
| --- | --- |

(e)

encourage the development of new revenue models whereby economic returns for companies are de-linked from prescribed volumes of antibiotics, while encouraging pharmaceutical innovation and balancing it with the sustainability of health systems;

| (f) | regulate the sale and distribution of antibiotics so that patients can only obtain the specific quantity of antibiotics as prescribed by their doctors, because in some Member States rules still exist which authorise the sale of antibiotics in bigger package sizes than those intended for a specific treatment; |
| --- | --- |

(f)

regulate the sale and distribution of antibiotics so that patients can only obtain the specific quantity of antibiotics as prescribed by their doctors, because in some Member States rules still exist which authorise the sale of antibiotics in bigger package sizes than those intended for a specific treatment;

| (g) | ensure greater levels of patient adherence to and compliance with antibiotic and other appropriate treatments prescribed by medical professionals, and develop strategies aimed at increasing patient understanding of the importance of the responsible use of antibiotic treatments and the risks of increasing antimicrobial resistance; |
| --- | --- |

(g)

ensure greater levels of patient adherence to and compliance with antibiotic and other appropriate treatments prescribed by medical professionals, and develop strategies aimed at increasing patient understanding of the importance of the responsible use of antibiotic treatments and the risks of increasing antimicrobial resistance;

| (h) | monitor antibiotic resistance and the use of antibiotics in hospitals and ensure that antibiotics when used in hospitals are only used according to the correct indications, at the correct dose and for the shortest duration possible as recommended by evidence-based guidelines; |
| --- | --- |

(h)

monitor antibiotic resistance and the use of antibiotics in hospitals and ensure that antibiotics when used in hospitals are only used according to the correct indications, at the correct dose and for the shortest duration possible as recommended by evidence-based guidelines;

| (i) | intensify infection control, in particular from a cross-border perspective, and especially by carefully monitoring potential carriage of multidrug-resistant bacteria, through proper screening of patients transferred from a country/region/hospital known for its high prevalence of multidrug-resistant bacteria, and isolating positive patients in individual rooms or by implementing ‘cohort nursing’; |
| --- | --- |

(i)

intensify infection control, in particular from a cross-border perspective, and especially by carefully monitoring potential carriage of multidrug-resistant bacteria, through proper screening of patients transferred from a country/region/hospital known for its high prevalence of multidrug-resistant bacteria, and isolating positive patients in individual rooms or by implementing ‘cohort nursing’;

| (j) | develop a multi-stakeholder strategy on MDR-TB to encompass key aspects such as prevention, awareness-raising, diagnosis, appropriate treatment, and adherence and compliance to prescribed medication; |
| --- | --- |

(j)

develop a multi-stakeholder strategy on MDR-TB to encompass key aspects such as prevention, awareness-raising, diagnosis, appropriate treatment, and adherence and compliance to prescribed medication;

| (k) | improve safety standards, especially for medical devices that are resistant to sterilisation (e.g. endoscopes), and undertake careful monitoring to ensure that medical devices originally designed and CE-marked for single use, if regenerated, meet all safety standards in order to protect consumer health; |
| --- | --- |

(k)

improve safety standards, especially for medical devices that are resistant to sterilisation (e.g. endoscopes), and undertake careful monitoring to ensure that medical devices originally designed and CE-marked for single use, if regenerated, meet all safety standards in order to protect consumer health;

| (l) | launch awareness campaigns targeting a wide audience, including health education courses in schools on the rational use of antibiotics and the risks entailed by increasing antibiotic resistance and the importance of developing good personal hygiene practices; these campaigns should target the young and old, as well as parents and carers, and should be followed up by outcome assessments, keeping in mind the opportunities offered by e-health systems in this regard; |
| --- | --- |

(l)

launch awareness campaigns targeting a wide audience, including health education courses in schools on the rational use of antibiotics and the risks entailed by increasing antibiotic resistance and the importance of developing good personal hygiene practices; these campaigns should target the young and old, as well as parents and carers, and should be followed up by outcome assessments, keeping in mind the opportunities offered by e-health systems in this regard;

| (m) | increase public funding and create new academic positions to focus on exploring and validating new approaches for treating bacterial infections; |
| --- | --- |

(m)

increase public funding and create new academic positions to focus on exploring and validating new approaches for treating bacterial infections;

| (n) | increase, in particular, the incentives for research and development of new antimicrobials; |
| --- | --- |

(n)

increase, in particular, the incentives for research and development of new antimicrobials;

| (o) | invite the ECDC to carry out field missions to give Member States scientific and technical assistance and training on antimicrobial resistance as foreseen in Article 9 of the ECDC Regulation (Regulation (EC) No 851/2004); those Member States that have not yet done so, and especially those in which antimicrobial resistance is already high or is increasing alarmingly, are particularly urged to invite the ECDC to carry out such missions; |
| --- | --- |

(o)

invite the ECDC to carry out field missions to give Member States scientific and technical assistance and training on antimicrobial resistance as foreseen in Article 9 of the ECDC Regulation (Regulation (EC) No 851/2004); those Member States that have not yet done so, and especially those in which antimicrobial resistance is already high or is increasing alarmingly, are particularly urged to invite the ECDC to carry out such missions;

| (p) | make the records of hospitals and other healthcare facilities with regard to HAIs publicly available, so that patients can make informed choices; |
| --- | --- |

(p)

make the records of hospitals and other healthcare facilities with regard to HAIs publicly available, so that patients can make informed choices;

| 64. | Calls on the Commission to reflect on the consequences of the increased mobility provided for in Directive 2011/24/EU with regard to the enhanced antimicrobial resistance that could result from patients travelling throughout Europe for treatment; |
| --- | --- |

64.

Calls on the Commission to reflect on the consequences of the increased mobility provided for in Directive 2011/24/EU with regard to the enhanced antimicrobial resistance that could result from patients travelling throughout Europe for treatment;

Recommendations regarding antibiotic use in veterinary medicine in general and in husbandry in particular

| 65. | Expresses concern that the joint report by EFSA and ECDC on antimicrobial resistance shows that bacteria which most frequently cause food-borne infections such as Salmonella and Campylobacter have exhibited significant resistance to common antimicrobials; |
| --- | --- |

65.

Expresses concern that the joint report by EFSA and ECDC on antimicrobial resistance shows that bacteria which most frequently cause food-borne infections such as Salmonella and Campylobacter have exhibited significant resistance to common antimicrobials;

| 66. | Repeats its call made in its resolution of 27 October 2011 on the public health threat of antimicrobial resistance (7) for a phase-out of the prophylactic use of antibiotics in livestock farming, stressing that the livestock and intensive fish-farming sectors should focus on preventing disease through good hygiene, housing and animal husbandry, as well as strict bio-security measures, rather than the prophylactic use of antibiotics; |
| --- | --- |

66.

Repeats its call made in its resolution of 27 October 2011 on the public health threat of antimicrobial resistance (7) for a phase-out of the prophylactic use of antibiotics in livestock farming, stressing that the livestock and intensive fish-farming sectors should focus on preventing disease through good hygiene, housing and animal husbandry, as well as strict bio-security measures, rather than the prophylactic use of antibiotics;

| 67. | Calls on the Member States to introduce or develop the following measures:






  (a) | promote and foster the responsible and sensible use in veterinary medicine, including medicated feed, of all antimicrobial agents, by allowing their use only for treatment after veterinary diagnosis, with specific additional consideration to antibiotics that are on the WHO list of critically important antimicrobials for human medicine; |
| --- | --- | --- |

67.

Calls on the Member States to introduce or develop the following measures:

(a)

promote and foster the responsible and sensible use in veterinary medicine, including medicated feed, of all antimicrobial agents, by allowing their use only for treatment after veterinary diagnosis, with specific additional consideration to antibiotics that are on the WHO list of critically important antimicrobials for human medicine;

| (b) | introduce legal tools to restrict the use of antibiotics in animals if a significant risk to public health is identified; |
| --- | --- |

(b)

introduce legal tools to restrict the use of antibiotics in animals if a significant risk to public health is identified;

| (c) | implement tougher controls to limit the use of antibiotics in veterinary medicine; one of the ways to achieve this would be by restricting the right to prescribe antibiotics to professionally qualified veterinarians and by decoupling the veterinarians’ right to both prescribe and sell antibiotics so as to eliminate all economic incentives; |
| --- | --- |

(c)

implement tougher controls to limit the use of antibiotics in veterinary medicine; one of the ways to achieve this would be by restricting the right to prescribe antibiotics to professionally qualified veterinarians and by decoupling the veterinarians’ right to both prescribe and sell antibiotics so as to eliminate all economic incentives;

| (d) | launch awareness campaigns on the responsible use of antimicrobials for animals, including pets; |
| --- | --- |

(d)

launch awareness campaigns on the responsible use of antimicrobials for animals, including pets;

| (e) | reduce the need for antibiotics by improving animal health through biosecurity measures, disease prevention and good management practices, and establish strong and clearer methodologies and priorities in the fight against the development of antimicrobial resistance; |
| --- | --- |

(e)

reduce the need for antibiotics by improving animal health through biosecurity measures, disease prevention and good management practices, and establish strong and clearer methodologies and priorities in the fight against the development of antimicrobial resistance;

| (f) | ensure that livestock farming and aquaculture focus on disease prevention through good hygiene, housing and animal husbandry and on strict biosecurity measures, rather than the prophylactic use of antibiotics; it is known that sounder farm management and animal husbandry procedures can be achieved through a review of provisions on maximum animal density in livestock farming, as current herd sizes often prevent individual or smaller animal group treatment, thus incentivising prophylactic use of antimicrobials; |
| --- | --- |

(f)

ensure that livestock farming and aquaculture focus on disease prevention through good hygiene, housing and animal husbandry and on strict biosecurity measures, rather than the prophylactic use of antibiotics; it is known that sounder farm management and animal husbandry procedures can be achieved through a review of provisions on maximum animal density in livestock farming, as current herd sizes often prevent individual or smaller animal group treatment, thus incentivising prophylactic use of antimicrobials;

| (g) | restrict the use of antibiotics in intensively reared livestock and encourage organic or extensive models of livestock rearing; |
| --- | --- |

(g)

restrict the use of antibiotics in intensively reared livestock and encourage organic or extensive models of livestock rearing;

| (h) | reduce the use of antibiotics in animals by progressively eliminating their use for prophylactic purposes where antibiotics are administered to animals for disease prevention, and minimise the need for metaphylaxis, i.e. the mass medication of animals to cure sick specimens on farms whilst preventing infections in healthy animals; |
| --- | --- |

(h)

reduce the use of antibiotics in animals by progressively eliminating their use for prophylactic purposes where antibiotics are administered to animals for disease prevention, and minimise the need for metaphylaxis, i.e. the mass medication of animals to cure sick specimens on farms whilst preventing infections in healthy animals;

| (i) | develop and implement national strategies or action plans for countering AMR, which would include, inter alia:






  (i) | implementation of national guidelines on the animal antimicrobial treatment to ensure responsible use of antimicrobials based on specific evidence and conditions in the respective Member States; |
| --- | --- | --- |

(i)

develop and implement national strategies or action plans for countering AMR, which would include, inter alia:

(i)

implementation of national guidelines on the animal antimicrobial treatment to ensure responsible use of antimicrobials based on specific evidence and conditions in the respective Member States;

| (ii) | implementation of preventative animal health policies aimed at improving animal health status and reducing the need for use of antimicrobials in animal husbandry; |
| --- | --- |

(ii)

implementation of preventative animal health policies aimed at improving animal health status and reducing the need for use of antimicrobials in animal husbandry;

| (iii) | definition of the responsibilities of veterinarians in terms of animal health management and decision-making on the use of antimicrobials; |
| --- | --- |

(iii)

definition of the responsibilities of veterinarians in terms of animal health management and decision-making on the use of antimicrobials;

| (iv) | implementation of continuous training for animal health professionals and animal owners; |
| --- | --- |

(iv)

implementation of continuous training for animal health professionals and animal owners;

| (j) | confirm the prohibition of the use of antibiotics as growth promoters in livestock; |
| --- | --- |

(j)

confirm the prohibition of the use of antibiotics as growth promoters in livestock;

| 68. | Urges the Member States to regulate any conflicts of interest and financial incentives involving veterinarians who both sell and prescribe antibiotics; |
| --- | --- |

68.

Urges the Member States to regulate any conflicts of interest and financial incentives involving veterinarians who both sell and prescribe antibiotics;

| 69. | Calls on the European Medicines Agency to draw up a list of antibiotics used in animals for which a significant risk to public health has been identified; |
| --- | --- |

69.

Calls on the European Medicines Agency to draw up a list of antibiotics used in animals for which a significant risk to public health has been identified;

| 70. | Urges national authorities and the EMA to take or develop the following measures:






  (a) | reinforce the existing risk assessment of new veterinary antimicrobial substances by identifying the main potential risks to public health at a very early stage of authorisation; |
| --- | --- | --- |

70.

Urges national authorities and the EMA to take or develop the following measures:

(a)

reinforce the existing risk assessment of new veterinary antimicrobial substances by identifying the main potential risks to public health at a very early stage of authorisation;

| (b) | monitor the development of resistance in specific bacteria according to plans agreed between regulators and companies when a new antimicrobial substance is first approved in veterinary medicine; |
| --- | --- |

(b)

monitor the development of resistance in specific bacteria according to plans agreed between regulators and companies when a new antimicrobial substance is first approved in veterinary medicine;

| (c) | monitor changes in the use of antimicrobials in animals as part of the European Surveillance of Veterinary Antimicrobial Consumption (ESVAC) project (led by the EMA) for measuring the impact of the actions implemented; |
| --- | --- |

(c)

monitor changes in the use of antimicrobials in animals as part of the European Surveillance of Veterinary Antimicrobial Consumption (ESVAC) project (led by the EMA) for measuring the impact of the actions implemented;

| 71. | Calls on the co-legislator, when negotiating the proposal for a regulation on veterinary medicinal products (2014/0257(COD)), to follow a course of action that is in line with the One Health principle, and more particularly:






  — | to adopt provisions banning the off-label use in animals of antimicrobials authorised only in human medicine; |
| --- | --- | --- |

71.

Calls on the co-legislator, when negotiating the proposal for a regulation on veterinary medicinal products (2014/0257(COD)), to follow a course of action that is in line with the One Health principle, and more particularly:

—

to adopt provisions banning the off-label use in animals of antimicrobials authorised only in human medicine;

| — | to support mandatory recording of the quantities of all antimicrobials used in livestock farming, to be communicated to the competent national authorities and made public by them on an annual basis; |
| --- | --- |

—

to support mandatory recording of the quantities of all antimicrobials used in livestock farming, to be communicated to the competent national authorities and made public by them on an annual basis;

| — | to ensure that standards of quality, safety and efficacy of veterinary medicinal products are not lowered with the new legislation on such products and that those high standards are guaranteed throughout the veterinary medicinal product life-cycle; |
| --- | --- |

—

to ensure that standards of quality, safety and efficacy of veterinary medicinal products are not lowered with the new legislation on such products and that those high standards are guaranteed throughout the veterinary medicinal product life-cycle;

| — | to create an EU database with information on when, where, how and on which animals antimicrobials are used; |
| --- | --- |

—

to create an EU database with information on when, where, how and on which animals antimicrobials are used;

| — | to prohibit the on-line sale of antimicrobials; |
| --- | --- |

—

to prohibit the on-line sale of antimicrobials;

| 72. | Calls on the co-legislator, when negotiating the proposal for a regulation on the manufacture, placing on the market and use of medicated feed and repealing Council Directive 90/167/EEC (2014/0255(COD)) to ensure that it includes provisions aiming to substantially limit the use of medicated feed containing antimicrobials for food-producing animals, and in particular to strictly prohibit the preventive use of antimicrobials included in medicated feed; |
| --- | --- |

72.

Calls on the co-legislator, when negotiating the proposal for a regulation on the manufacture, placing on the market and use of medicated feed and repealing Council Directive 90/167/EEC (2014/0255(COD)) to ensure that it includes provisions aiming to substantially limit the use of medicated feed containing antimicrobials for food-producing animals, and in particular to strictly prohibit the preventive use of antimicrobials included in medicated feed;

| 73. | Calls on the Commission and the ECDC to carry out research into the potential direct or indirect damage arising from by the use of antimicrobials in pets, and to develop mitigation measures to reduce the risk of potential transmission of antimicrobial resistance from pets to people; |
| --- | --- |

73.

Calls on the Commission and the ECDC to carry out research into the potential direct or indirect damage arising from by the use of antimicrobials in pets, and to develop mitigation measures to reduce the risk of potential transmission of antimicrobial resistance from pets to people;

| 74. | Points out that some Member States have already successfully phased out prophylactic use at farm level; calls on the Commission, therefore, to come forward with legislation to phase out the prophylactic use of antibiotics; |
| --- | --- |

74.

Points out that some Member States have already successfully phased out prophylactic use at farm level; calls on the Commission, therefore, to come forward with legislation to phase out the prophylactic use of antibiotics;

Collaborative approaches within the European Union

| 75. | Calls on the Member States to cooperate on defining minimum patient safety standards and indicators for safety and quality of healthcare at the EU level, in consultation with all relevant stakeholders including patient organisations; |
| --- | --- |

75.

Calls on the Member States to cooperate on defining minimum patient safety standards and indicators for safety and quality of healthcare at the EU level, in consultation with all relevant stakeholders including patient organisations;

| 76. | Calls on the Commission and the Member States to further engage in a dialogue with all stakeholders and develop a coordinated, comprehensive and sustainable EU strategy for patient safety, as well as to put forward concrete solutions to be implemented at EU, national, regional, local and/or primary care levels; |
| --- | --- |

76.

Calls on the Commission and the Member States to further engage in a dialogue with all stakeholders and develop a coordinated, comprehensive and sustainable EU strategy for patient safety, as well as to put forward concrete solutions to be implemented at EU, national, regional, local and/or primary care levels;

| 77. | Calls on the Member States and the Commission to start a reflection process together with the WHO in order to develop a new economic model that de-links the volume of antibiotics sales from the reward paid for a new antibiotic, ensuring a fair return on investment for the companies while safeguarding the sustainability of national health systems; |
| --- | --- |

77.

Calls on the Member States and the Commission to start a reflection process together with the WHO in order to develop a new economic model that de-links the volume of antibiotics sales from the reward paid for a new antibiotic, ensuring a fair return on investment for the companies while safeguarding the sustainability of national health systems;

| 78. | Calls on the Commission, the Member States and the pharmaceutical industry to optimise EU partnerships between academia and the pharmaceutical industry, as exemplified by the Innovative Medicines Initiative (IMI); |
| --- | --- |

78.

Calls on the Commission, the Member States and the pharmaceutical industry to optimise EU partnerships between academia and the pharmaceutical industry, as exemplified by the Innovative Medicines Initiative (IMI);

| 79. | Encourages pharmaceutical companies, governments and academia to contribute with their best assets (infrastructure, compounds, ideas and financial resources) to ground-breaking fundamental research and pre-competitive joint projects; believes that the Innovative Medicine Initiative (IMI) should be given the flexibility to explore any new findings emerging from those projects; |
| --- | --- |

79.

Encourages pharmaceutical companies, governments and academia to contribute with their best assets (infrastructure, compounds, ideas and financial resources) to ground-breaking fundamental research and pre-competitive joint projects; believes that the Innovative Medicine Initiative (IMI) should be given the flexibility to explore any new findings emerging from those projects;

| 80. | Asks the Commission to consider a legislative framework to encourage the development of new antibiotic drugs, for example in the form of an instrument governing antibiotics for human use similar to that already proposed for antibiotics for animal use; |
| --- | --- |

80.

Asks the Commission to consider a legislative framework to encourage the development of new antibiotic drugs, for example in the form of an instrument governing antibiotics for human use similar to that already proposed for antibiotics for animal use;

| 81. | Encourages the further pursuit of private-public collaborations, such as the Innovative Medicine Initiative (IMI) programmes ‘New Drugs for Bad Bugs’, COMBACTE, TRANSLOCATION, Drive AB or ENABLE, in order to harness the power of collaboration; |
| --- | --- |

81.

Encourages the further pursuit of private-public collaborations, such as the Innovative Medicine Initiative (IMI) programmes ‘New Drugs for Bad Bugs’, COMBACTE, TRANSLOCATION, Drive AB or ENABLE, in order to harness the power of collaboration;

| 82. | Welcomes the Joint Programme Initiative on Antimicrobial Resistance, which allows Member States to agree on research needs so as to avoid duplication, and calls for an increase in funding for the development of new medicines as an alternative to antibiotics, in order to combat antimicrobial resistance; |
| --- | --- |

82.

Welcomes the Joint Programme Initiative on Antimicrobial Resistance, which allows Member States to agree on research needs so as to avoid duplication, and calls for an increase in funding for the development of new medicines as an alternative to antibiotics, in order to combat antimicrobial resistance;

| 83. | Encourages the EU to join the global innovation fund that has been proposed by the ‘Antibiotic Resistance Review’ conducted in the UK, with the aim of supporting ‘blue sky science’; |
| --- | --- |

83.

Encourages the EU to join the global innovation fund that has been proposed by the ‘Antibiotic Resistance Review’ conducted in the UK, with the aim of supporting ‘blue sky science’;

| 84. | Asks the Commission and the Member States to support easy-to-apply diagnostic tools in order to ensure greater availability of proper diagnosis before an antibiotic is prescribed or administered, especially in the ambulant sector; |
| --- | --- |

84.

Asks the Commission and the Member States to support easy-to-apply diagnostic tools in order to ensure greater availability of proper diagnosis before an antibiotic is prescribed or administered, especially in the ambulant sector;

| 85. | Encourages the EU to promote and take part in any global initiative aimed at improving ways of combating antibiotic resistance, and to support research in this field; |
| --- | --- |

85.

Encourages the EU to promote and take part in any global initiative aimed at improving ways of combating antibiotic resistance, and to support research in this field;

| 86. | Calls on the Commission to prepare, in collaboration with the Member States, recommendations on the food safety standards to be applied with respect to the presence of (multi)resistant pathogens and/or specified resistance determinants; |
| --- | --- |

86.

Calls on the Commission to prepare, in collaboration with the Member States, recommendations on the food safety standards to be applied with respect to the presence of (multi)resistant pathogens and/or specified resistance determinants;

| 87. | Stresses that antimicrobial resistance has become a serious problem that needs to be urgently tackled; calls on the Commission to consider proposing legislation on the prudent use of antibiotics if little or no progress has been made in the Member States within five years of the publication of these recommendations; |
| --- | --- |

87.

Stresses that antimicrobial resistance has become a serious problem that needs to be urgently tackled; calls on the Commission to consider proposing legislation on the prudent use of antibiotics if little or no progress has been made in the Member States within five years of the publication of these recommendations;

o

o o

| 88. | Instructs its President to forward this resolution to the Council, the Commission, the Committee of the Regions and the Member States. |
| --- | --- |

88.

Instructs its President to forward this resolution to the Council, the Commission, the Committee of the Regions and the Member States.

---

(1)  OJ C 184 E, 8.7.2010, p. 395.

(2)  OJ C 151, 3.7.2009, p. 1.

(3)  Texts adopted, P7_TA(2012)0483.

(4)  Texts adopted, P7_TA(2013)0435.

(5)  ‘Tackling antibiotic resistance from a food safety perspective in Europe, WHO Europe, 2011’.

(6)  ‘Antibiotic use in livestock: Time to act’ (position paper), BEUC (European Consumer Organisation).

(7)  OJ C 131 E, 8.5.2013, p. 116.

---

| 27.9.2016 | EN | Official Journal of the European Union | C 353/27 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/27

---

P8_TA(2015)0198

Green growth opportunities for SMEs

European Parliament resolution of 19 May 2015 on green growth opportunities for SMEs (2014/2209(INI))

(2016/C 353/03)

The European Parliament,

| — | having regard to its resolution of 5 February 2013 on improving access to finance for SMEs (1), |
| --- | --- |

—

having regard to its resolution of 5 February 2013 on improving access to finance for SMEs (1),

| — | having regard to its resolution of 15 January 2014 on reindustrialising Europe to promote competitiveness and sustainability (2), |
| --- | --- |

—

having regard to its resolution of 15 January 2014 on reindustrialising Europe to promote competitiveness and sustainability (2),

| — | having regard to its resolution of 27 November 2014 on the revision of the Commission’s impact assessment guidelines and the role of the SME test (3), |
| --- | --- |

—

having regard to its resolution of 27 November 2014 on the revision of the Commission’s impact assessment guidelines and the role of the SME test (3),

| — | having regard to the Commission Communication entitled ‘Think Small First’, A ‘Small Business Act’ for Europe (COM(2008)0394), |
| --- | --- |

—

having regard to the Commission Communication entitled ‘Think Small First’, A ‘Small Business Act’ for Europe (COM(2008)0394),

| — | having regard to the Commission Communication entitled Review of the ‘Small Business Act’ for Europe (COM(2011)0078), |
| --- | --- |

—

having regard to the Commission Communication entitled Review of the ‘Small Business Act’ for Europe (COM(2011)0078),

| — | having regard to the Commission Communication entitled ‘Resource Efficiency Opportunities in the Building Sector’ (COM(2014)0445), |
| --- | --- |

—

having regard to the Commission Communication entitled ‘Resource Efficiency Opportunities in the Building Sector’ (COM(2014)0445),

| — | having regard to the Eurobarometer Survey on SMEs, resource efficiency and green markets (Flash Eurobarometer 381), and the Eurobarometer Survey on the role of public support in the commercialisation of innovations (Flash Eurobarometer 394), |
| --- | --- |

—

having regard to the Eurobarometer Survey on SMEs, resource efficiency and green markets (Flash Eurobarometer 381), and the Eurobarometer Survey on the role of public support in the commercialisation of innovations (Flash Eurobarometer 394),

| — | having regard to the Committee of the Regions opinion (adopted during the 109th plenary session of 3-4 December 2014) on the Industrial Policy Package, |
| --- | --- |

—

having regard to the Committee of the Regions opinion (adopted during the 109th plenary session of 3-4 December 2014) on the Industrial Policy Package,

| — | having regard to the Commission Communication entitled ‘Green Action Plan For SMEs’ (COM(2014)0440), |
| --- | --- |

—

having regard to the Commission Communication entitled ‘Green Action Plan For SMEs’ (COM(2014)0440),

| — | having regard to the European Resource Efficiency Platform Manifesto and Policy Recommendations — March 2014, |
| --- | --- |

—

having regard to the European Resource Efficiency Platform Manifesto and Policy Recommendations — March 2014,

| — | having regard to the Commission Communication entitled ‘Towards a circular economy: a zero waste programme for Europe’ (COM(2014)0398), |
| --- | --- |

—

having regard to the Commission Communication entitled ‘Towards a circular economy: a zero waste programme for Europe’ (COM(2014)0398),

| — | having regard to the Commission Communication entitled ‘Innovation for a sustainable Future — The Eco-innovation Action Plan (Eco-AP)’ (COM(2011)0899), |
| --- | --- |

—

having regard to the Commission Communication entitled ‘Innovation for a sustainable Future — The Eco-innovation Action Plan (Eco-AP)’ (COM(2011)0899),

| — | having regard to Rule 52 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 52 of its Rules of Procedure,

| — | having regard to the report of the Committee on Industry, Research and Energy and the opinions of the Committee on Budgets and the Committee on Regional Development (A8-0135/2015), |
| --- | --- |

—

having regard to the report of the Committee on Industry, Research and Energy and the opinions of the Committee on Budgets and the Committee on Regional Development (A8-0135/2015),

| A. | whereas SMEs account for more than 98 % of Europe’s businesses and provide more than 67 % of total employment in the Union and 58 % of gross value added; whereas they constitute the backbone of the European Union’s economy and are the key drivers of European long-term economic growth and sustainable job creation opportunities within the 28 Member States; whereas employment in the environmental goods and services sector in the years 2007-2011 grew by 20 % in spite of the crisis and presents an opportunity for SMEs to increasingly generate economic activity and jobs, including in areas affected by depopulation and ageing; whereas they thus play an important role in the industrial ecosystem together with mid-cap and multinational companies; whereas nine out of ten SMEs are small businesses employing 10 people or less and these microenterprises account for 53 % of all jobs in Europe; |
| --- | --- |

A.

whereas SMEs account for more than 98 % of Europe’s businesses and provide more than 67 % of total employment in the Union and 58 % of gross value added; whereas they constitute the backbone of the European Union’s economy and are the key drivers of European long-term economic growth and sustainable job creation opportunities within the 28 Member States; whereas employment in the environmental goods and services sector in the years 2007-2011 grew by 20 % in spite of the crisis and presents an opportunity for SMEs to increasingly generate economic activity and jobs, including in areas affected by depopulation and ageing; whereas they thus play an important role in the industrial ecosystem together with mid-cap and multinational companies; whereas nine out of ten SMEs are small businesses employing 10 people or less and these microenterprises account for 53 % of all jobs in Europe;

| B. | whereas at the moment, the global market for environmental goods and services is estimated at EUR 1 000 billion per year, and it is estimated that this amount will double or even triple by 2020, creating tremendous opportunities for Europe’s SMEs and economic growth in general in the EU; whereas the European Union is a world leader in both the import and export of environmental goods; whereas services are inextricably linked to these goods, yet there are non-tariff barriers that remain for the environmental service providers; |
| --- | --- |

B.

whereas at the moment, the global market for environmental goods and services is estimated at EUR 1 000 billion per year, and it is estimated that this amount will double or even triple by 2020, creating tremendous opportunities for Europe’s SMEs and economic growth in general in the EU; whereas the European Union is a world leader in both the import and export of environmental goods; whereas services are inextricably linked to these goods, yet there are non-tariff barriers that remain for the environmental service providers;

| C. | whereas the European Union committed itself to reindustrialising Europe by investing in and supporting the principles of sustainability, competitiveness and innovation, in order to achieve a share of at least 20 % in industrial production as part of the EU Member States’ GDP until 2020; whereas the European Council has committed itself to reducing domestic greenhouse gas emissions by at least 40 %, increasing the share of renewable energy to at least 27 % and increasing energy efficiency by at least 27 % by 2030, with a view to raising this target to 30 %; whereas SMEs should play their role in fulfilling these targets, as 93 % (4) of them are already taking measures to become more resource efficient; whereas according to the Commission, better eco-design, waste prevention, recycling and reuse could bring net savings for EU businesses, estimated to represent up to EUR 600 billion, or 8 % of annual turnover, while also reducing total greenhouse gas emissions by 2-4 %; |
| --- | --- |

C.

whereas the European Union committed itself to reindustrialising Europe by investing in and supporting the principles of sustainability, competitiveness and innovation, in order to achieve a share of at least 20 % in industrial production as part of the EU Member States’ GDP until 2020; whereas the European Council has committed itself to reducing domestic greenhouse gas emissions by at least 40 %, increasing the share of renewable energy to at least 27 % and increasing energy efficiency by at least 27 % by 2030, with a view to raising this target to 30 %; whereas SMEs should play their role in fulfilling these targets, as 93 % (4) of them are already taking measures to become more resource efficient; whereas according to the Commission, better eco-design, waste prevention, recycling and reuse could bring net savings for EU businesses, estimated to represent up to EUR 600 billion, or 8 % of annual turnover, while also reducing total greenhouse gas emissions by 2-4 %;

| D. | whereas enabling SMEs to transform environmental challenges into economic opportunities while acting sustainably is one of the principles of the Small Business Act, but whereas there has been no significant policy progress and SMEs often face inconsistent policies when commencing business and implementing environmental standards; |
| --- | --- |

D.

whereas enabling SMEs to transform environmental challenges into economic opportunities while acting sustainably is one of the principles of the Small Business Act, but whereas there has been no significant policy progress and SMEs often face inconsistent policies when commencing business and implementing environmental standards;

| E. | whereas SME compliance with the growing number of environmental standards will be fostered by both the market and legislation; whereas the EU and the Member States should minimise the administrative burden in new and existing regulation, and should strive to avoid creating additional costs for enterprises in complying with such regulation; whereas new initiatives to reduce regulatory burdens on SMEs and other sectors have been proposed and should be implemented by the Commission and the Member States; |
| --- | --- |

E.

whereas SME compliance with the growing number of environmental standards will be fostered by both the market and legislation; whereas the EU and the Member States should minimise the administrative burden in new and existing regulation, and should strive to avoid creating additional costs for enterprises in complying with such regulation; whereas new initiatives to reduce regulatory burdens on SMEs and other sectors have been proposed and should be implemented by the Commission and the Member States;

| F. | whereas 90 % of EU enterprises are microenterprises; whereas despite recent efforts, SMEs and microenterprises continue to have difficulties with access to skills, information and finance, and to a sufficiently diversified choice of equity and debt instruments needed along the growth path of a company, and whereas EU programmes still fall short of significantly contributing to innovation; whereas application procedures for EU funding for SMEs are still too bureaucratic and therefore prohibitive for many SMEs; |
| --- | --- |

F.

whereas 90 % of EU enterprises are microenterprises; whereas despite recent efforts, SMEs and microenterprises continue to have difficulties with access to skills, information and finance, and to a sufficiently diversified choice of equity and debt instruments needed along the growth path of a company, and whereas EU programmes still fall short of significantly contributing to innovation; whereas application procedures for EU funding for SMEs are still too bureaucratic and therefore prohibitive for many SMEs;

| G. | whereas account must be taken of the potential of the EU budget, as an investment-driven budget, to facilitate European SMEs’ access to funding through the reduction of bureaucracy and through dedicated financial tools and the increase of funding for LEOs (local enterprise offices); whereas the development of user-friendly procedures for the various forms of support should be enhanced; |
| --- | --- |

G.

whereas account must be taken of the potential of the EU budget, as an investment-driven budget, to facilitate European SMEs’ access to funding through the reduction of bureaucracy and through dedicated financial tools and the increase of funding for LEOs (local enterprise offices); whereas the development of user-friendly procedures for the various forms of support should be enhanced;

| H. | whereas small companies gain proportionally more than large entities from actions to improve resource efficiency and should receive more policy attention; whereas the potential gross benefit of improving resource efficiency is 10-17 % of turnover, depending on the operating sector; |
| --- | --- |

H.

whereas small companies gain proportionally more than large entities from actions to improve resource efficiency and should receive more policy attention; whereas the potential gross benefit of improving resource efficiency is 10-17 % of turnover, depending on the operating sector;

| I. | whereas digital technologies are both an important tool for use by SMEs in reaping the benefits expected from optimal use of resources and a sector where new SMEs can readily emerge and develop; |
| --- | --- |

I.

whereas digital technologies are both an important tool for use by SMEs in reaping the benefits expected from optimal use of resources and a sector where new SMEs can readily emerge and develop;

| J. | whereas the focus is primarily on high-tech SMEs that directly deliver green innovations, but there is a need to support other companies in complying with environmental regulations, implementing green innovation measures and improving their environmental performance; whereas eco-innovation might be an idea for a new company, but also a measure to improve existing businesses within the framework of the green economy; |
| --- | --- |

J.

whereas the focus is primarily on high-tech SMEs that directly deliver green innovations, but there is a need to support other companies in complying with environmental regulations, implementing green innovation measures and improving their environmental performance; whereas eco-innovation might be an idea for a new company, but also a measure to improve existing businesses within the framework of the green economy;

| K. | whereas although there is no internationally agreed definition of green growth, there is consensus that it is a combination of economic growth and environmental sustainability; whereas enhancing skills and training is a key challenge for SMEs, which should receive particular attention, especially with regard to innovation and resource efficiency; whereas inadequate access to risk capital, in particular at the start-up stages, continues to be one of the main obstacles to the creation and development of growth-oriented businesses; |
| --- | --- |

K.

whereas although there is no internationally agreed definition of green growth, there is consensus that it is a combination of economic growth and environmental sustainability; whereas enhancing skills and training is a key challenge for SMEs, which should receive particular attention, especially with regard to innovation and resource efficiency; whereas inadequate access to risk capital, in particular at the start-up stages, continues to be one of the main obstacles to the creation and development of growth-oriented businesses;

| L. | whereas given that microenterprises generate thousands of jobs and as much as 53 % of employment across Europe, and as such require a different framework to work within, a consistent use of the definition of microenterprises is urgently required; whereas microenterprises face several major difficulties, such as barriers in procurement rules, excess regulatory burden and access to finance; |
| --- | --- |

L.

whereas given that microenterprises generate thousands of jobs and as much as 53 % of employment across Europe, and as such require a different framework to work within, a consistent use of the definition of microenterprises is urgently required; whereas microenterprises face several major difficulties, such as barriers in procurement rules, excess regulatory burden and access to finance;

General issues

| 1. | Supports the concept of green growth and circular economy and notes that the opportunities arising from it relate to various areas of significant importance such as renewable energy sources, and in particular the economically viable exploitation of wind, solar, hydro and geothermal energy, energy efficiency, resource efficiency, waste management, emission reduction, electrification and cradle to cradle; points out the considerable economic and employment potential these areas have for different sectors; notes that green growth should be part of a wider strategy of promoting job creation and economic growth among SMEs; |
| --- | --- |

1.

Supports the concept of green growth and circular economy and notes that the opportunities arising from it relate to various areas of significant importance such as renewable energy sources, and in particular the economically viable exploitation of wind, solar, hydro and geothermal energy, energy efficiency, resource efficiency, waste management, emission reduction, electrification and cradle to cradle; points out the considerable economic and employment potential these areas have for different sectors; notes that green growth should be part of a wider strategy of promoting job creation and economic growth among SMEs;

| 2. | Stresses that green growth should be put in a broad perspective, and should include efforts deployed throughout the whole value chain and across the entrepreneurial ecosystem, including efforts by industrial manufacturing players to reduce the ecological footprint of their products, production processes, business practices and services; recalls the recommendations of the European Resources Efficiency Platform highlighting that resource efficiency requires a dynamic regulatory framework that gives appropriate signals to producers and consumers to improve the performance of products throughout their life-cycle; calls on the Commission to establish a comprehensive policy framework, including concrete policy objectives and better integrating and streamlining existing policy tools to ensure opportunities and participation of SMEs in the green and circular economy; |
| --- | --- |

2.

Stresses that green growth should be put in a broad perspective, and should include efforts deployed throughout the whole value chain and across the entrepreneurial ecosystem, including efforts by industrial manufacturing players to reduce the ecological footprint of their products, production processes, business practices and services; recalls the recommendations of the European Resources Efficiency Platform highlighting that resource efficiency requires a dynamic regulatory framework that gives appropriate signals to producers and consumers to improve the performance of products throughout their life-cycle; calls on the Commission to establish a comprehensive policy framework, including concrete policy objectives and better integrating and streamlining existing policy tools to ensure opportunities and participation of SMEs in the green and circular economy;

| 3. | Highlights the fact that the global economy will need to provide for an ever growing population — 9 billion people by 2050 — and that our natural resources are limited and therefore should be used in a sustainable and very efficient way; points out new innovative, green and sustainable solutions to these challenges, such as new products, production processes, business practices and services, for instance by integrating innovative digital technologies, and a new supporting legal framework; |
| --- | --- |

3.

Highlights the fact that the global economy will need to provide for an ever growing population — 9 billion people by 2050 — and that our natural resources are limited and therefore should be used in a sustainable and very efficient way; points out new innovative, green and sustainable solutions to these challenges, such as new products, production processes, business practices and services, for instance by integrating innovative digital technologies, and a new supporting legal framework;

| 4. | Reminds the Commission and the Member States that SMEs across Europe are very heterogeneous, ranging from very traditional, family-run businesses to fast-growing enterprises, high-tech firms, microenterprises, social enterprises and start-ups, and that approaches to assisting them must be equally diverse; |
| --- | --- |

4.

Reminds the Commission and the Member States that SMEs across Europe are very heterogeneous, ranging from very traditional, family-run businesses to fast-growing enterprises, high-tech firms, microenterprises, social enterprises and start-ups, and that approaches to assisting them must be equally diverse;

| 5. | Believes that the EU needs to drastically change its entrepreneurial culture in order to contribute to economic growth by having more people starting up their own businesses and seeking more business opportunities, especially in green growth, and by accepting failure and risk-taking; emphasises the importance of putting this issue at the centre of policymaking; calls on Member States to cater for a softer landing after business failure in their relevant legal frameworks, in order to allow people to start up a new business soon after failure of a previous venture, especially in new and innovative sectors; calls on the Commission to alleviate the fear of failure through awareness campaigns and education; |
| --- | --- |

5.

Believes that the EU needs to drastically change its entrepreneurial culture in order to contribute to economic growth by having more people starting up their own businesses and seeking more business opportunities, especially in green growth, and by accepting failure and risk-taking; emphasises the importance of putting this issue at the centre of policymaking; calls on Member States to cater for a softer landing after business failure in their relevant legal frameworks, in order to allow people to start up a new business soon after failure of a previous venture, especially in new and innovative sectors; calls on the Commission to alleviate the fear of failure through awareness campaigns and education;

| 6. | Stresses the added value of the EU budget in helping SMEs, microenterprises, social enterprises and cooperatives to gain access to funding and international markets, in particular through the COSME programme and under Horizon 2020 and the European Structural and Investment Funds (ESIF); stresses the need for a clear and uniform EU-wide interpretation by national regulators and open public procurement rules; |
| --- | --- |

6.

Stresses the added value of the EU budget in helping SMEs, microenterprises, social enterprises and cooperatives to gain access to funding and international markets, in particular through the COSME programme and under Horizon 2020 and the European Structural and Investment Funds (ESIF); stresses the need for a clear and uniform EU-wide interpretation by national regulators and open public procurement rules;

| 7. | Notes that many European SMEs today compete internationally on solutions that include both products and so-called ‘green services’, such as construction, installation, repairs and management; notes that these services are central for the development, sale and export of green products; calls on the Commission to include green services in the ongoing negotiations on the Environmental Goods Agreement, as well as in bilateral trade agreements such as the TTIP, in order to reduce barriers for European SMEs and service providers wishing to go international; |
| --- | --- |

7.

Notes that many European SMEs today compete internationally on solutions that include both products and so-called ‘green services’, such as construction, installation, repairs and management; notes that these services are central for the development, sale and export of green products; calls on the Commission to include green services in the ongoing negotiations on the Environmental Goods Agreement, as well as in bilateral trade agreements such as the TTIP, in order to reduce barriers for European SMEs and service providers wishing to go international;

| 8. | Emphasises the importance of good governance, an independent judiciary, transparency and the rule of law across the EU for the creation of a business-friendly climate and a market with a level playing field for SMEs; |
| --- | --- |

8.

Emphasises the importance of good governance, an independent judiciary, transparency and the rule of law across the EU for the creation of a business-friendly climate and a market with a level playing field for SMEs;

Financing of green initiatives

| 9. | Points out that in the current circumstances where insufficient access to appropriate sources of risk capital, particularly in the early stages, continues to be one of the most significant constraints on the creation and development of growth-oriented firms, the Commission’s Action Plan on improving access to finance for SMEs places a lot of emphasis on venture capital as a possible mode of growth finance; underlines, nonetheless, that this kind of funding is adequate only for a small number of SMEs and that bank loans still constitute an important source of funding, and that alternatives should be developed by the private sector; notes in this context the importance of promoting alternative forms of lending to SMEs, such as credit unions; points out the potential financing opportunities that should be explored through the European Fund for Strategic Investments; |
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9.

Points out that in the current circumstances where insufficient access to appropriate sources of risk capital, particularly in the early stages, continues to be one of the most significant constraints on the creation and development of growth-oriented firms, the Commission’s Action Plan on improving access to finance for SMEs places a lot of emphasis on venture capital as a possible mode of growth finance; underlines, nonetheless, that this kind of funding is adequate only for a small number of SMEs and that bank loans still constitute an important source of funding, and that alternatives should be developed by the private sector; notes in this context the importance of promoting alternative forms of lending to SMEs, such as credit unions; points out the potential financing opportunities that should be explored through the European Fund for Strategic Investments;

| 10. | Encourages the Member States to incentivise foreign investors by removing language barriers; notes that accepting applications and providing data in English, in addition to the official language(s) of a Member State, is a step towards that end; |
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10.

Encourages the Member States to incentivise foreign investors by removing language barriers; notes that accepting applications and providing data in English, in addition to the official language(s) of a Member State, is a step towards that end;

| 11. | Stresses that there is no one-size-fits-all mode of finance and calls on the Commission to take into account the interests of SMEs in all existing and possible future programmes, instruments and initiatives, especially for new business models in the green economy, ranging across equity (such as business angels, crowd funding and multilateral trading facilities), quasi-equity (such as mezzanine finance) and debt instruments (such as small-ticket company bonds, guarantee facilities and platforms), and partnerships between banks and other operators involved in SME financing (accountancy professionals, business or SME associations or chambers of commerce), in order to support businesses in their start-up, growth and transfer phases, taking into account their size, turnover and financing needs; calls on the Member States and on local and regional authorities to ensure adequate incentives and to provide fiscal incentives for these funding models; stresses the importance of reviewing existing SME supporting instruments to include further green growth opportunities; |
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11.

Stresses that there is no one-size-fits-all mode of finance and calls on the Commission to take into account the interests of SMEs in all existing and possible future programmes, instruments and initiatives, especially for new business models in the green economy, ranging across equity (such as business angels, crowd funding and multilateral trading facilities), quasi-equity (such as mezzanine finance) and debt instruments (such as small-ticket company bonds, guarantee facilities and platforms), and partnerships between banks and other operators involved in SME financing (accountancy professionals, business or SME associations or chambers of commerce), in order to support businesses in their start-up, growth and transfer phases, taking into account their size, turnover and financing needs; calls on the Member States and on local and regional authorities to ensure adequate incentives and to provide fiscal incentives for these funding models; stresses the importance of reviewing existing SME supporting instruments to include further green growth opportunities;

| 12. | Highlights the need to ensure coordination and complementarity between financial instruments in the EU budget, in particular under the European Structural and Investment Funds (ESIF), the EU Programme for Employment and Social Innovation (EaSI) and the LIFE programme; |
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12.

Highlights the need to ensure coordination and complementarity between financial instruments in the EU budget, in particular under the European Structural and Investment Funds (ESIF), the EU Programme for Employment and Social Innovation (EaSI) and the LIFE programme;

| 13. | Calls on the Commission and the Member States to monitor the results achieved by SMEs that have accessed green innovation funding, in order to gauge the effectiveness of such funding; urges the Commission to lose no time in making the changes required for the funding to be more effective, should the results prove to be unsatisfactory; |
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13.

Calls on the Commission and the Member States to monitor the results achieved by SMEs that have accessed green innovation funding, in order to gauge the effectiveness of such funding; urges the Commission to lose no time in making the changes required for the funding to be more effective, should the results prove to be unsatisfactory;

| 14. | Notes that due to the highly technical nature of many green investment plans it is key to highlight the importance of standardised risk and return models and of developing new models for new challenges and sectors; |
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14.

Notes that due to the highly technical nature of many green investment plans it is key to highlight the importance of standardised risk and return models and of developing new models for new challenges and sectors;

| 15. | Recalls that SMEs can be expected to play an important role in the circular economy, providing sustainable, yet labour-intensive services such as repair, refurbishing and recycling; notes that the Commission, the Organisation for Economic Cooperation and Development (OECD), the International Monetary Fund (IMF), the International Labour Organisation (ILO), Parliament and the Eurogroup broadly support the principle of a tax shift from labour to natural resource use and consumption; requests that the Commission assess the impact of a tax shift from labour to natural resource use; |
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15.

Recalls that SMEs can be expected to play an important role in the circular economy, providing sustainable, yet labour-intensive services such as repair, refurbishing and recycling; notes that the Commission, the Organisation for Economic Cooperation and Development (OECD), the International Monetary Fund (IMF), the International Labour Organisation (ILO), Parliament and the Eurogroup broadly support the principle of a tax shift from labour to natural resource use and consumption; requests that the Commission assess the impact of a tax shift from labour to natural resource use;

| 16. | Emphasises that entrepreneurs, SMEs, business associations and support organisations should be more literate on financing possibilities for more performant technologies, or for contracting services such as consultancy, coaching and training on eco-design, resource management and green entrepreneurship and availability of green technologies, products and services that could be beneficial for their business; calls on Member States to enhance provision of services for SMEs in those areas and also emphasises the need for simple and accessible sources of information and databases for these products and services; reminds the Commission and the Member States that this information should be communicated in a way that corresponds best with the logic and working methods of SMEs; |
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16.

Emphasises that entrepreneurs, SMEs, business associations and support organisations should be more literate on financing possibilities for more performant technologies, or for contracting services such as consultancy, coaching and training on eco-design, resource management and green entrepreneurship and availability of green technologies, products and services that could be beneficial for their business; calls on Member States to enhance provision of services for SMEs in those areas and also emphasises the need for simple and accessible sources of information and databases for these products and services; reminds the Commission and the Member States that this information should be communicated in a way that corresponds best with the logic and working methods of SMEs;

| 17. | Notes that EU programmes do not significantly contribute to eco-innovation and the circular economy and that the Commission, therefore, needs to focus better funding from COSME and Horizon 2020 towards the development of eco-innovative solutions by and for SMEs and to support financing for the improvement of product design and processes performance, building on the successful experiences in the past MFF; considers, in particular, that the SME instrument under Horizon 2020 needs to be fully implemented; |
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17.

Notes that EU programmes do not significantly contribute to eco-innovation and the circular economy and that the Commission, therefore, needs to focus better funding from COSME and Horizon 2020 towards the development of eco-innovative solutions by and for SMEs and to support financing for the improvement of product design and processes performance, building on the successful experiences in the past MFF; considers, in particular, that the SME instrument under Horizon 2020 needs to be fully implemented;

| 18. | Calls on the Commission and the EIB to make sure that in the implementation phase of the ‘Investment Plan for Europe’ SMEs, including green and innovative ones, will be key beneficiaries of the support provided for under this proposal; insists that clear criteria, including European added value, must be developed to achieve this aim and that provision of advisory services on resource efficiency and eco-innovation for SMEs be strengthened; calls on the EIB and the Commission to ensure that all categories listed in the Commission recommendation concerning the definition of micro, small and medium-sized enterprises (C(2003)1422) sufficiently benefit; points to the importance of Horizon 2020 and COSME for the support of SMEs, and the need for full implementation of the SME instrument under Horizon 2020; |
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18.

Calls on the Commission and the EIB to make sure that in the implementation phase of the ‘Investment Plan for Europe’ SMEs, including green and innovative ones, will be key beneficiaries of the support provided for under this proposal; insists that clear criteria, including European added value, must be developed to achieve this aim and that provision of advisory services on resource efficiency and eco-innovation for SMEs be strengthened; calls on the EIB and the Commission to ensure that all categories listed in the Commission recommendation concerning the definition of micro, small and medium-sized enterprises (C(2003)1422) sufficiently benefit; points to the importance of Horizon 2020 and COSME for the support of SMEs, and the need for full implementation of the SME instrument under Horizon 2020;

| 19. | Considers that, in order to ensure complementarity of financial schemes for SMEs, it is essential to coordinate the measures taken under the Cohesion Policy and other programmes, such as the Horizon 2020 Programme, both nationally and regionally; stresses the importance of legislating in such a way as to allow SMEs to maintain their competitiveness; |
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19.

Considers that, in order to ensure complementarity of financial schemes for SMEs, it is essential to coordinate the measures taken under the Cohesion Policy and other programmes, such as the Horizon 2020 Programme, both nationally and regionally; stresses the importance of legislating in such a way as to allow SMEs to maintain their competitiveness;

| 20. | Calls on the Commission and the Member States to find a swift and lasting solution to the enormous backlog of payments related to regional policy and as regards the handling of ESIF assistance for the previous funding period, so as to ensure that SMEs as project partners will not, on account of payment delays, be deterred from taking part in support programmes and projects; |
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20.

Calls on the Commission and the Member States to find a swift and lasting solution to the enormous backlog of payments related to regional policy and as regards the handling of ESIF assistance for the previous funding period, so as to ensure that SMEs as project partners will not, on account of payment delays, be deterred from taking part in support programmes and projects;

Knowledge management

| 21. | Highlights the importance of actively pursuing collaboration across sectors, along value chains as well as geographical areas, which offers the potential to spark innovation and new growth opportunities through cross-fertilisation of ideas and innovative concepts; welcomes the Horizon 2020 action ‘Cluster facilitated projects for new industrial value chains’, to better unlock the innovation potential of SMEs, including the eco-innovative and resource-efficient solutions they offer; |
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21.

Highlights the importance of actively pursuing collaboration across sectors, along value chains as well as geographical areas, which offers the potential to spark innovation and new growth opportunities through cross-fertilisation of ideas and innovative concepts; welcomes the Horizon 2020 action ‘Cluster facilitated projects for new industrial value chains’, to better unlock the innovation potential of SMEs, including the eco-innovative and resource-efficient solutions they offer;

| 22. | Welcomes the establishment of a European Resource Efficiency Excellence Centre to advise and assist SMEs seeking to improve their resource efficiency performance; stresses the need to establish this centre as a strong network of partners across EU regions and to build on proven experiences in Member States; believes it should guide SMEs to European, national and regional programmes in this field of action, and provide access to expertise, networks and infrastructure; |
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22.

Welcomes the establishment of a European Resource Efficiency Excellence Centre to advise and assist SMEs seeking to improve their resource efficiency performance; stresses the need to establish this centre as a strong network of partners across EU regions and to build on proven experiences in Member States; believes it should guide SMEs to European, national and regional programmes in this field of action, and provide access to expertise, networks and infrastructure;

| 23. | Stresses the importance of knowledge transfers and multi-stakeholder knowledge sharing, including cross-border, through informal networks, especially for SMEs and microenterprises, to raise awareness of existing and new innovative techniques, best practices, ways to acquire proper financing, possible government support schemes and the relevant legislative frameworks entailing the least burdensome administration, and recalls that the existing national contact points for the EU funding programmes and the Enterprise Europe Network (EEN) have to be fully involved in the support of SMEs and proactively inform, coach and support SMEs in identifying financing possibilities at EU, national or regional level; supports the organisation of a European Resource Efficiency Campaign to inform SMEs about the benefits and opportunities offered by resource efficiency and how industrial synergies on recycling can be created; calls on the Commission and the EEN to cooperate on resource efficiency with industry associations, trade unions, SMEs, NGOs and academia, as well as regional initiatives; welcomes, in this regard, the Commission’s focus on symbioses and clusters and encourages the Commission to come forward with concrete initiatives to facilitate cross-sectoral cooperation and resource management; |
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23.

Stresses the importance of knowledge transfers and multi-stakeholder knowledge sharing, including cross-border, through informal networks, especially for SMEs and microenterprises, to raise awareness of existing and new innovative techniques, best practices, ways to acquire proper financing, possible government support schemes and the relevant legislative frameworks entailing the least burdensome administration, and recalls that the existing national contact points for the EU funding programmes and the Enterprise Europe Network (EEN) have to be fully involved in the support of SMEs and proactively inform, coach and support SMEs in identifying financing possibilities at EU, national or regional level; supports the organisation of a European Resource Efficiency Campaign to inform SMEs about the benefits and opportunities offered by resource efficiency and how industrial synergies on recycling can be created; calls on the Commission and the EEN to cooperate on resource efficiency with industry associations, trade unions, SMEs, NGOs and academia, as well as regional initiatives; welcomes, in this regard, the Commission’s focus on symbioses and clusters and encourages the Commission to come forward with concrete initiatives to facilitate cross-sectoral cooperation and resource management;

| 24. | Urges sector federations to play a more prominent role in providing appropriate information and advice on green technologies, funding possibilities and the relevant procedures; calls on the Commission and the Member States to fill the gap where this support is lacking and, in cooperation with sector federations and companies, to further investigate what opportunities exist and accelerate sustainable solutions, and invest in environmentally friendly technologies, resource efficiency and the recycling economy; notes the growing gap between the needs of SMEs and the skills of employees; notes that 26 % of employers in Europe face difficulties in finding employees who possess the right skills; |
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24.

Urges sector federations to play a more prominent role in providing appropriate information and advice on green technologies, funding possibilities and the relevant procedures; calls on the Commission and the Member States to fill the gap where this support is lacking and, in cooperation with sector federations and companies, to further investigate what opportunities exist and accelerate sustainable solutions, and invest in environmentally friendly technologies, resource efficiency and the recycling economy; notes the growing gap between the needs of SMEs and the skills of employees; notes that 26 % of employers in Europe face difficulties in finding employees who possess the right skills;

Research, development and innovation, and skills

| 25. | Stresses the need to be more effective in developing basic R&D, to fully involve SMEs in this process and to actively support further transformation of basic R&D outcomes into further technological advances; highlights the importance of the reindustrialisation of Europe given the importance of the manufacturing industry for R&D&I and thus the EU’s future competitive advantage; believes that non-technological, organisational, systems and public sector innovation should also be given sufficient attention, along with technology-driven solutions; |
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25.

Stresses the need to be more effective in developing basic R&D, to fully involve SMEs in this process and to actively support further transformation of basic R&D outcomes into further technological advances; highlights the importance of the reindustrialisation of Europe given the importance of the manufacturing industry for R&D&I and thus the EU’s future competitive advantage; believes that non-technological, organisational, systems and public sector innovation should also be given sufficient attention, along with technology-driven solutions;

| 26. | Highlights the importance of the commercialisation and valorisation by European companies of R&D output; calls on the Commission and the Member States to provide for a more stable regulatory framework and adequate financial schemes in order to enable economic initiative and entrepreneurship and to limit the time to market of new products, services and business practices, notably in the green economy; |
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26.

Highlights the importance of the commercialisation and valorisation by European companies of R&D output; calls on the Commission and the Member States to provide for a more stable regulatory framework and adequate financial schemes in order to enable economic initiative and entrepreneurship and to limit the time to market of new products, services and business practices, notably in the green economy;

| 27. | Stresses the potential for innovation and green growth which lies in new European space infrastructure; calls on the Commission to promote the use by SMEs of data derived from these infrastructures in business nurseries and incubators; calls on the Commission to institute a regime for SMEs which affords ready access to data from these infrastructures at the research, development and commercialisation stages; |
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27.

Stresses the potential for innovation and green growth which lies in new European space infrastructure; calls on the Commission to promote the use by SMEs of data derived from these infrastructures in business nurseries and incubators; calls on the Commission to institute a regime for SMEs which affords ready access to data from these infrastructures at the research, development and commercialisation stages;

| 28. | Notes that according to the May 2014 Innobarometer only 9 % of all companies say they have enjoyed public financial support for their R&D&I activities since January 2011; stresses the need to develop user friendly procedures for the various forms of support; |
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28.

Notes that according to the May 2014 Innobarometer only 9 % of all companies say they have enjoyed public financial support for their R&D&I activities since January 2011; stresses the need to develop user friendly procedures for the various forms of support;

| 29. | Notes the benefits which the unitary European patent confers on SMEs, particularly in the field of green technologies; calls on all Member States to join the unitary European patent system; calls on Member States to ratify without delay the Agreement on a Unified Patent Court, which is necessary for the application of the unitary European patent; calls on the Commission to propose a simplified procedure for use by SMEs in bringing an action for infringement before the Unified Patent Court; |
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29.

Notes the benefits which the unitary European patent confers on SMEs, particularly in the field of green technologies; calls on all Member States to join the unitary European patent system; calls on Member States to ratify without delay the Agreement on a Unified Patent Court, which is necessary for the application of the unitary European patent; calls on the Commission to propose a simplified procedure for use by SMEs in bringing an action for infringement before the Unified Patent Court;

| 30. | Calls for an improved policy framework for the circular economy, including adopting and implementing smart regulation, standards and codes of conduct which aim to internalise externalities, tackling resource-intensive products, creating a level playing field, rewarding front-runners and accelerating the transition towards a resource-efficient and sustainable economy; |
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30.

Calls for an improved policy framework for the circular economy, including adopting and implementing smart regulation, standards and codes of conduct which aim to internalise externalities, tackling resource-intensive products, creating a level playing field, rewarding front-runners and accelerating the transition towards a resource-efficient and sustainable economy;

| 31. | Calls on the Commission to include as part of the Circular Economy Package the extension of the eco-design instrument to include the resource efficiency dimension; believes that eco-design should address durability, reparability and recyclability of products, including standards for guaranteed minimum lifetime and disassembly; |
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31.

Calls on the Commission to include as part of the Circular Economy Package the extension of the eco-design instrument to include the resource efficiency dimension; believes that eco-design should address durability, reparability and recyclability of products, including standards for guaranteed minimum lifetime and disassembly;

| 32. | Encourages the extension of innovative support schemes, such as green innovation vouchers, which can promote the introduction of sustainable technologies and environmentally friendly and climate-resilient solutions; as regards applications for support, considers that the rules need to be simple and clear and should not represent an administrative burden; furthermore, invites the Commission and the Member States to find innovative financing solutions for SMEs and to provide fully accessible financing instruments; recalls that the sustainable growth and innovation capacity of European SMEs is one of the main competitive advantages that the EU has in globalised markets; |
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32.

Encourages the extension of innovative support schemes, such as green innovation vouchers, which can promote the introduction of sustainable technologies and environmentally friendly and climate-resilient solutions; as regards applications for support, considers that the rules need to be simple and clear and should not represent an administrative burden; furthermore, invites the Commission and the Member States to find innovative financing solutions for SMEs and to provide fully accessible financing instruments; recalls that the sustainable growth and innovation capacity of European SMEs is one of the main competitive advantages that the EU has in globalised markets;

(De)regulation as an engine for growth

| 33. | Calls on Member States to avoid creating barriers to the internal market by gold-plating, to review their current regulatory regimes, to remove any superfluous or ineffective regulations which constitute market barriers, and to ensure consistent transposition into national legislation; calls on the Commission to ensure that the SME Test is fully applied in all impact assessments; invites the Commission to step up its efforts in addressing gold-plating with individual Member States; stresses the need for a clear and uniform EU-wide interpretation by national regulators and open public procurement rules, including green procurement and e-procurement, which at the moment represents a substantial barrier for SMEs wishing to internationalise and at the same time a tremendous opportunity for Member States to be early adaptors, including in resource- and energy-efficient products and solutions; |
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33.

Calls on Member States to avoid creating barriers to the internal market by gold-plating, to review their current regulatory regimes, to remove any superfluous or ineffective regulations which constitute market barriers, and to ensure consistent transposition into national legislation; calls on the Commission to ensure that the SME Test is fully applied in all impact assessments; invites the Commission to step up its efforts in addressing gold-plating with individual Member States; stresses the need for a clear and uniform EU-wide interpretation by national regulators and open public procurement rules, including green procurement and e-procurement, which at the moment represents a substantial barrier for SMEs wishing to internationalise and at the same time a tremendous opportunity for Member States to be early adaptors, including in resource- and energy-efficient products and solutions;

| 34. | Welcomes the Commission decision for withdrawing obsolete or overly burdensome legislative proposals; expects the Commission to come forward with a more ambitious waste legislation proposal, as announced by Vice-President Timmermans in Parliament’s plenary session of December 2014; calls on the Commission to refrain from legislative proposals that would lead to an unnecessary administrative burden for businesses and SMEs and to continuously review existing legislation with the objective of decreasing the current administrative burden, improving the quality and effectiveness of legislation and adapting this to new business models; stresses, nonetheless, the need for ambitious actions, an adequate and timely implementation of existing legislation and early involvement of stakeholders from the relevant industries and SMEs, including in the impact assessment, in order to reach the EU’s environmental targets; |
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34.

Welcomes the Commission decision for withdrawing obsolete or overly burdensome legislative proposals; expects the Commission to come forward with a more ambitious waste legislation proposal, as announced by Vice-President Timmermans in Parliament’s plenary session of December 2014; calls on the Commission to refrain from legislative proposals that would lead to an unnecessary administrative burden for businesses and SMEs and to continuously review existing legislation with the objective of decreasing the current administrative burden, improving the quality and effectiveness of legislation and adapting this to new business models; stresses, nonetheless, the need for ambitious actions, an adequate and timely implementation of existing legislation and early involvement of stakeholders from the relevant industries and SMEs, including in the impact assessment, in order to reach the EU’s environmental targets;

| 35. | Recalls the importance of technology-neutral and innovation-friendly legislation, which allows different new technologies to be tested and valued by the market; welcomes the development of the Environmental Technology Verification (ETV) scheme as a new tool to help innovative environmental technologies reach the market; calls on Member States to make adequate use of market-based instruments in their public support schemes and to refrain from using environmentally harmful market distorting subsidies; recalls that public intervention should be used to address market failures such as the non-pricing of externalities; calls on the Commission to draw up common guidelines for national public support schemes for green investment projects in order to create a more uniform set of measures; |
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35.

Recalls the importance of technology-neutral and innovation-friendly legislation, which allows different new technologies to be tested and valued by the market; welcomes the development of the Environmental Technology Verification (ETV) scheme as a new tool to help innovative environmental technologies reach the market; calls on Member States to make adequate use of market-based instruments in their public support schemes and to refrain from using environmentally harmful market distorting subsidies; recalls that public intervention should be used to address market failures such as the non-pricing of externalities; calls on the Commission to draw up common guidelines for national public support schemes for green investment projects in order to create a more uniform set of measures;

| 36. | Notes that disruptive industries and technologies often indicate flaws in existing legislation; stresses the need for continuous monitoring and updating of existing legislation and its implementation, so that sustainable or eco-innovative technologies and new technological developments do not encounter barriers; |
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36.

Notes that disruptive industries and technologies often indicate flaws in existing legislation; stresses the need for continuous monitoring and updating of existing legislation and its implementation, so that sustainable or eco-innovative technologies and new technological developments do not encounter barriers;

Miscellaneous support measures

| 37. | Believes that developing entrepreneurship skills and programmes to learn how the market, the economy and the financial system operate, function and interact, along with environmental awareness, and how new technologies can boost effective, innovative and green opportunities, should be included in basic and higher education systems, and also be promoted through extra-curricular activities and lifelong learning; believes that a well prepared business plan is the first step towards better access to finance and viability; calls on the Commission and the Member States to include entrepreneurship, financial, economic and environmental education in their education programmes without delay; supports in this connection the ‘Erasmus for Young Entrepreneurs’ programme, designed to promote an entrepreneurial culture and develop the single market and competitiveness; |
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37.

Believes that developing entrepreneurship skills and programmes to learn how the market, the economy and the financial system operate, function and interact, along with environmental awareness, and how new technologies can boost effective, innovative and green opportunities, should be included in basic and higher education systems, and also be promoted through extra-curricular activities and lifelong learning; believes that a well prepared business plan is the first step towards better access to finance and viability; calls on the Commission and the Member States to include entrepreneurship, financial, economic and environmental education in their education programmes without delay; supports in this connection the ‘Erasmus for Young Entrepreneurs’ programme, designed to promote an entrepreneurial culture and develop the single market and competitiveness;

| 38. | Stresses that microenterprises and start-ups should also be afforded help and guidance in moving towards sustainable green growth; calls on the Commission to ensure that these businesses will be adequately covered by new initiatives focused on green growth opportunities for SMEs; |
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38.

Stresses that microenterprises and start-ups should also be afforded help and guidance in moving towards sustainable green growth; calls on the Commission to ensure that these businesses will be adequately covered by new initiatives focused on green growth opportunities for SMEs;

| 39. | Notes that the Erasmus+ programme makes it possible for students and young people to develop entrepreneurship skills through, amongst others, the funding of internships; supports the ‘Erasmus for Young Entrepreneurs’ programme, designed to promote an entrepreneurial culture and develop the single market and competitiveness; |
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39.

Notes that the Erasmus+ programme makes it possible for students and young people to develop entrepreneurship skills through, amongst others, the funding of internships; supports the ‘Erasmus for Young Entrepreneurs’ programme, designed to promote an entrepreneurial culture and develop the single market and competitiveness;

| 40. | Notes the importance of addressing unsustainable consumption patterns and promoting a change in consumer behaviour; stresses the need for adequate consumer education and the need to encourage incentives for more sustainable consumption; calls on the Commission and the Member States to reinforce demand side measures, such as making use of public procurement in order to enhance uptake of resource- and energy-efficient products and solutions; stresses the value of including resource use in product information and eco-labels in order to empower consumers; |
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40.

Notes the importance of addressing unsustainable consumption patterns and promoting a change in consumer behaviour; stresses the need for adequate consumer education and the need to encourage incentives for more sustainable consumption; calls on the Commission and the Member States to reinforce demand side measures, such as making use of public procurement in order to enhance uptake of resource- and energy-efficient products and solutions; stresses the value of including resource use in product information and eco-labels in order to empower consumers;

| 41. | Stresses the importance of facilitating start-ups and spin-offs through collaboration with technological research institutes, universities and vocational training establishments; |
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41.

Stresses the importance of facilitating start-ups and spin-offs through collaboration with technological research institutes, universities and vocational training establishments;

| 42. | Highlights the importance of exports for the creation of jobs and growth in Europe; calls on the Commission to speed up pending trade agreements with our partners so as to facilitate European SMEs’ access to new markets; |
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42.

Highlights the importance of exports for the creation of jobs and growth in Europe; calls on the Commission to speed up pending trade agreements with our partners so as to facilitate European SMEs’ access to new markets;

| 43. | Believes that female entrepreneurship is an asset as yet insufficiently valued for the growth and competitiveness of the EU, which should be fostered and strengthened, and that all the obstacles, in particular wage discrimination, facing women, including in the green economy, should be removed in order for women and men to benefit equally; believes that regular collection of harmonised statistics, including on the gender-specific impact of legislation and sex-disaggregated labour data, would facilitate more evidence-based policymaking and monitoring and fill a knowledge gap in the green discourse; |
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43.

Believes that female entrepreneurship is an asset as yet insufficiently valued for the growth and competitiveness of the EU, which should be fostered and strengthened, and that all the obstacles, in particular wage discrimination, facing women, including in the green economy, should be removed in order for women and men to benefit equally; believes that regular collection of harmonised statistics, including on the gender-specific impact of legislation and sex-disaggregated labour data, would facilitate more evidence-based policymaking and monitoring and fill a knowledge gap in the green discourse;

| 44. | Calls on the Commission to study and identify the sectors of European industry and geographical areas where the conditions are met for the creation of new clusters and hubs, and to support their development; |
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44.

Calls on the Commission to study and identify the sectors of European industry and geographical areas where the conditions are met for the creation of new clusters and hubs, and to support their development;

| 45. | Calls on the Commission and the Member States to take particular notice of and respond to the opportunities and challenges presented by rural areas in respect of SMEs, green growth and eco-innovation; |
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45.

Calls on the Commission and the Member States to take particular notice of and respond to the opportunities and challenges presented by rural areas in respect of SMEs, green growth and eco-innovation;

| 46. | Calls on the Member States (at the level of national, regional and local policymakers and managing authorities) to continuously promote sustainable growth, under the smart specialisation strategies with the engagement of key stakeholders, that favours clustering, synergies and networks around the activities of the green economy; asks the Commission to report to Parliament on the implementation of smart specialisation strategies at national and/or regional level, where appropriate, and especially as regards the various patterns of ‘downstream actions’ used in the EU and in Member States; calls on the Commission and the Member States to provide information on the practical measures taken in order to develop competencies for eco-innovative SMEs through interconnecting regional innovation centres and the key support networks; |
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46.

Calls on the Member States (at the level of national, regional and local policymakers and managing authorities) to continuously promote sustainable growth, under the smart specialisation strategies with the engagement of key stakeholders, that favours clustering, synergies and networks around the activities of the green economy; asks the Commission to report to Parliament on the implementation of smart specialisation strategies at national and/or regional level, where appropriate, and especially as regards the various patterns of ‘downstream actions’ used in the EU and in Member States; calls on the Commission and the Member States to provide information on the practical measures taken in order to develop competencies for eco-innovative SMEs through interconnecting regional innovation centres and the key support networks;

| 47. | Calls on the Commission, under the umbrella of regional policy, to draw up specific programmes which embody all relevant green growth elements for SMEs; stresses the necessity for youth entrepreneurship potential to be used to the full in the context of green growth of SMEs; calls on the Commission to prepare measures which would connect educational institutions with European programmes and measures to support the green economy; asks the Commission and the Member States to use all the means at their disposal to provide advice to the workforce of the SMEs and raise their awareness in order to improve their knowledge and skills; calls for the support for training to be focused on young people and the most disadvantaged groups; |
| --- | --- |

47.

Calls on the Commission, under the umbrella of regional policy, to draw up specific programmes which embody all relevant green growth elements for SMEs; stresses the necessity for youth entrepreneurship potential to be used to the full in the context of green growth of SMEs; calls on the Commission to prepare measures which would connect educational institutions with European programmes and measures to support the green economy; asks the Commission and the Member States to use all the means at their disposal to provide advice to the workforce of the SMEs and raise their awareness in order to improve their knowledge and skills; calls for the support for training to be focused on young people and the most disadvantaged groups;

o

o o

| 48. | Instructs its President to forward this resolution to the Council and the Commission. |
| --- | --- |

48.

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

---

(1)  Texts adopted, P7_TA(2013)0036.

(2)  Texts adopted, P7_TA(2014)0032.

(3)  Texts adopted, P8_TA(2014)0069.

(4)  http://ec.europa.eu/public_opinion/flash/fl_381_en.pdf

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Wednesday 20 May 2015

| 27.9.2016 | EN | Official Journal of the European Union | C 353/35 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/35

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P8_TA(2015)0205

Objection to a delegated act: exemption for cadmium in illumination and display lighting applications

European Parliament resolution of 20 May 2015 on the Commission delegated directive of 30 January 2015 amending, for the purposes of adapting to technical progress, Annex III to Directive 2011/65/EU of the European Parliament and of the Council as regards an exemption for cadmium in illumination and display lighting applications (C(2015)00383 — 2015/2542(DEA))

(2016/C 353/04)

The European Parliament,

| — | having regard to the Commission delegated directive (C(2015)00383), |
| --- | --- |

—

having regard to the Commission delegated directive (C(2015)00383),

| — | having regard to Article 290 of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 290 of the Treaty on the Functioning of the European Union,

| — | having regard to Directive 2011/65/EU of the European Parliament and of the Council of 8 June 2011 on the restriction of the use of certain hazardous substances in electrical and electronic equipment, and in particular Articles 4, 5(1)(a) and 22 thereof (1), |
| --- | --- |

—

having regard to Directive 2011/65/EU of the European Parliament and of the Council of 8 June 2011 on the restriction of the use of certain hazardous substances in electrical and electronic equipment, and in particular Articles 4, 5(1)(a) and 22 thereof (1),

| — | having regard to Rule 105(4) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 105(4) of its Rules of Procedure,

| A. | whereas Article 4(1) of Directive 2011/65/EU on the restriction of the use of certain hazardous substances in electrical and electronic equipment (‘RoHS’) restricts inter alia the use of cadmium in electrical and electronic equipment (see the listing in Annex II to the RoHS Directive); |
| --- | --- |

A.

whereas Article 4(1) of Directive 2011/65/EU on the restriction of the use of certain hazardous substances in electrical and electronic equipment (‘RoHS’) restricts inter alia the use of cadmium in electrical and electronic equipment (see the listing in Annex II to the RoHS Directive);

| B. | whereas Annex III to the RoHS Directive provides for exemptions from the restrictions laid down in Article 4(1); |
| --- | --- |

B.

whereas Annex III to the RoHS Directive provides for exemptions from the restrictions laid down in Article 4(1);

| C. | whereas point 39 of Annex III lists a derogation for ‘Cadmium in colour converting II-VI LEDs (< 10 μg Cd per mm2 of light-emitting area) for use in solid state illumination or display systems’ with an expiry date of 1 July 2014; |
| --- | --- |

C.

whereas point 39 of Annex III lists a derogation for ‘Cadmium in colour converting II-VI LEDs (< 10 μg Cd per mm2 of light-emitting area) for use in solid state illumination or display systems’ with an expiry date of 1 July 2014;

| D. | whereas Article 5 provides for the adaptation to scientific and technical progress of Annex III for the inclusion and deletion of exemptions; |
| --- | --- |

D.

whereas Article 5 provides for the adaptation to scientific and technical progress of Annex III for the inclusion and deletion of exemptions;

| E. | whereas the Commission indicated that it received, in December 2012, an application to renew exemption 39 and, in May 2013, a related application for a narrower, more specific exemption for cadmium in quantum dots in displays; |
| --- | --- |

E.

whereas the Commission indicated that it received, in December 2012, an application to renew exemption 39 and, in May 2013, a related application for a narrower, more specific exemption for cadmium in quantum dots in displays;

| F. | whereas, pursuant to Article 5(1)a, exemptions shall be included in Annex III, provided that such inclusion does not weaken the environmental and health protection afforded by Regulation (EC) No 1907/2006 and where any of the following conditions is fulfilled: their elimination or substitution via design changes or materials and components which do not require any of the materials or substances listed in Annex II is scientifically or technically impracticable; the reliability of substitutes is not ensured; or the total negative environmental, health and consumer safety impacts caused by substitution are likely to outweigh the total environmental, health and consumer safety benefits thereof; |
| --- | --- |

F.

whereas, pursuant to Article 5(1)a, exemptions shall be included in Annex III, provided that such inclusion does not weaken the environmental and health protection afforded by Regulation (EC) No 1907/2006 and where any of the following conditions is fulfilled: their elimination or substitution via design changes or materials and components which do not require any of the materials or substances listed in Annex II is scientifically or technically impracticable; the reliability of substitutes is not ensured; or the total negative environmental, health and consumer safety impacts caused by substitution are likely to outweigh the total environmental, health and consumer safety benefits thereof;

| G. | whereas the Commission delegated directive extends exemption 39 until 30 June 2017, relabelling it exemption 39(a), and introduces a new more specific exemption 39(b) on ‘Cadmium in downshifting cadmium based semiconductor nanocrystal quantum dots for use in display lighting applications (< 0,2 μg Cd per mm2 of display screen area)’, with an expiry date of 30 June 2018; |
| --- | --- |

G.

whereas the Commission delegated directive extends exemption 39 until 30 June 2017, relabelling it exemption 39(a), and introduces a new more specific exemption 39(b) on ‘Cadmium in downshifting cadmium based semiconductor nanocrystal quantum dots for use in display lighting applications (< 0,2 μg Cd per mm2 of display screen area)’, with an expiry date of 30 June 2018;

| H. | whereas the extension of exemption 39 and the new exemption 39(b) both concern cadmium quantum dots, even though a specific reference to quantum dots is given only in exemption 39(b); |
| --- | --- |

H.

whereas the extension of exemption 39 and the new exemption 39(b) both concern cadmium quantum dots, even though a specific reference to quantum dots is given only in exemption 39(b);

| I. | whereas the extension of exemption 39 concerns two different applications of cadmium quantum dots: one concerns the use in solid state illumination (hereafter referred to as ‘lighting’), while the other concerns display systems; |
| --- | --- |

I.

whereas the extension of exemption 39 concerns two different applications of cadmium quantum dots: one concerns the use in solid state illumination (hereafter referred to as ‘lighting’), while the other concerns display systems;

| J. | whereas the new exemption 39(b) only concerns displays; |
| --- | --- |

J.

whereas the new exemption 39(b) only concerns displays;

| K. | whereas the Commission states explicitly that quantum dot (cadmium and cadmium-free) LEDs for lighting are not available yet, and admits that the positive environmental impact thereof could therefore not be demonstrated; whereas the Commission nevertheless extended the generic exemption for cadmium quantum dot-based lighting applications until 30 June 2017 to allow the lighting industry to apply for a specific exemption since such applications would already be in the pre-production phase; |
| --- | --- |

K.

whereas the Commission states explicitly that quantum dot (cadmium and cadmium-free) LEDs for lighting are not available yet, and admits that the positive environmental impact thereof could therefore not be demonstrated; whereas the Commission nevertheless extended the generic exemption for cadmium quantum dot-based lighting applications until 30 June 2017 to allow the lighting industry to apply for a specific exemption since such applications would already be in the pre-production phase;

| L. | whereas the independent consultants who assessed the applications on behalf of the Commission concluded that the information provided did not allow a conclusion that an exemption for lighting would be justified at present, and therefore explicitly recommended against it (2); |
| --- | --- |

L.

whereas the independent consultants who assessed the applications on behalf of the Commission concluded that the information provided did not allow a conclusion that an exemption for lighting would be justified at present, and therefore explicitly recommended against it (2);

| M. | whereas the informal information circulated by the Commission on 12 May 2015 does not change the situation, as no proof is given of the availability of these products on the European market and no assessment of their properties against the conditions of Article 5(1)(a) is provided; |
| --- | --- |

M.

whereas the informal information circulated by the Commission on 12 May 2015 does not change the situation, as no proof is given of the availability of these products on the European market and no assessment of their properties against the conditions of Article 5(1)(a) is provided;

| N. | whereas in the absence of any relevant lighting products being available, the applicant was unable to prove that any of the conditions of Article 5(1)(a) were fulfilled for the use of cadmium quantum dots in lighting; whereas it is therefore unjustified to grant an extension of the exemption for lighting; |
| --- | --- |

N.

whereas in the absence of any relevant lighting products being available, the applicant was unable to prove that any of the conditions of Article 5(1)(a) were fulfilled for the use of cadmium quantum dots in lighting; whereas it is therefore unjustified to grant an extension of the exemption for lighting;

| O. | whereas such an exemption may be relevant in the future, but can only be granted on the basis of a proper assessment, which has not yet been made; |
| --- | --- |

O.

whereas such an exemption may be relevant in the future, but can only be granted on the basis of a proper assessment, which has not yet been made;

| P. | whereas, in its delegated directive, the Commission furthermore granted a new specific exemption for cadmium quantum dots in displays, arguing that they were already in use in displays, that this would have a positive overall impact due to their low energy consumption, and that cadmium-free quantum dots were not yet technically available; |
| --- | --- |

P.

whereas, in its delegated directive, the Commission furthermore granted a new specific exemption for cadmium quantum dots in displays, arguing that they were already in use in displays, that this would have a positive overall impact due to their low energy consumption, and that cadmium-free quantum dots were not yet technically available;

| Q. | whereas the independent consultants who assessed the applications on behalf of the Commission recommended in April 2014 granting a specific exemption for cadmium quantum dots in displays for a shorter period than that applied for (until 30 June 2017, i.e. one year less than the period adopted by the Commission), in light of the understanding that applications resulting in the reduction of cadmium quantities as well as cadmium-free substitutes are in the final stages of research; whereas, in other words, the recommendation was based on the absence of cadmium-free quantum dots in displays at that time; |
| --- | --- |

Q.

whereas the independent consultants who assessed the applications on behalf of the Commission recommended in April 2014 granting a specific exemption for cadmium quantum dots in displays for a shorter period than that applied for (until 30 June 2017, i.e. one year less than the period adopted by the Commission), in light of the understanding that applications resulting in the reduction of cadmium quantities as well as cadmium-free substitutes are in the final stages of research; whereas, in other words, the recommendation was based on the absence of cadmium-free quantum dots in displays at that time;

| R. | whereas, however, there have been important market developments since; whereas in 2015 one of the world’s leading TV manufacturers placed a whole line of new models of televisions on the Union market based on cadmium-free quantum dots, available at major retail outlets in several Member States (at least Germany, the UK and Belgium); |
| --- | --- |

R.

whereas, however, there have been important market developments since; whereas in 2015 one of the world’s leading TV manufacturers placed a whole line of new models of televisions on the Union market based on cadmium-free quantum dots, available at major retail outlets in several Member States (at least Germany, the UK and Belgium);

| S. | whereas on the other hand, there no longer seem to be any TVs with cadmium quantum dots on the Union market, and whereas it is difficult to find any retailer for the one and only notebook the display of which is based on cadmium quantum dot technology; |
| --- | --- |

S.

whereas on the other hand, there no longer seem to be any TVs with cadmium quantum dots on the Union market, and whereas it is difficult to find any retailer for the one and only notebook the display of which is based on cadmium quantum dot technology;

| T. | whereas it can be expected that the energy-saving properties of cadmium-free quantum dots are similar to those of cadmium quantum dots; whereas, according to eco-labelling information, when comparing same-sized TVs, a TV display with cadmium-free quantum dots showed lower energy consumption as compared to a model based on cadmium quantum dots; whereas according to industry information, testing of the colour performance against the relevant standard showed it to be equal if not superior for displays based on cadmium-free quantum dots; |
| --- | --- |

T.

whereas it can be expected that the energy-saving properties of cadmium-free quantum dots are similar to those of cadmium quantum dots; whereas, according to eco-labelling information, when comparing same-sized TVs, a TV display with cadmium-free quantum dots showed lower energy consumption as compared to a model based on cadmium quantum dots; whereas according to industry information, testing of the colour performance against the relevant standard showed it to be equal if not superior for displays based on cadmium-free quantum dots;

| U. | whereas the key justification by the Commission for granting the new specific exemption is that ‘cadmium-free quantum dots are not yet technically available’; |
| --- | --- |

U.

whereas the key justification by the Commission for granting the new specific exemption is that ‘cadmium-free quantum dots are not yet technically available’;

| V. | whereas this justification is manifestly incorrect, as not only are cadmium-free quantum dots technically available, but a whole line of TVs based on this technology has become widely available on the Union market, on offer by well-known major retailers; |
| --- | --- |

V.

whereas this justification is manifestly incorrect, as not only are cadmium-free quantum dots technically available, but a whole line of TVs based on this technology has become widely available on the Union market, on offer by well-known major retailers;

| W. | whereas the informal information circulated by the Commission on 12 May 2015 does not change that situation; whereas the examples listed by the Commission for products with displays with cadmium quantum dots are either currently unavailable (TCL 55’’ TV), or are only available in the US (ASUS Notebook, Sony TVs), or only concern products to be launched (Konka, Phillips, AOC); |
| --- | --- |

W.

whereas the informal information circulated by the Commission on 12 May 2015 does not change that situation; whereas the examples listed by the Commission for products with displays with cadmium quantum dots are either currently unavailable (TCL 55’’ TV), or are only available in the US (ASUS Notebook, Sony TVs), or only concern products to be launched (Konka, Phillips, AOC);

| X. | whereas both the extension of current exemption 39 and the introduction of a new exemption 39(b) fail to fulfil any of the conditions of Article 5(1)(a) and are therefore unjustified; whereas relatively short expiry periods cannot justify non-compliance with the conditions of Article 5(1)(a); |
| --- | --- |

X.

whereas both the extension of current exemption 39 and the introduction of a new exemption 39(b) fail to fulfil any of the conditions of Article 5(1)(a) and are therefore unjustified; whereas relatively short expiry periods cannot justify non-compliance with the conditions of Article 5(1)(a);

| Y. | whereas, according to Article 5(5) of the RoHS Directive, the existing exemption 39 shall remain valid until a decision on the renewal application is taken by the Commission; |
| --- | --- |

Y.

whereas, according to Article 5(5) of the RoHS Directive, the existing exemption 39 shall remain valid until a decision on the renewal application is taken by the Commission;

| Z. | whereas according to Article 5(6) of the RoHS Directive, in the event that an application for renewal of an exemption is rejected or an exemption is revoked, the exemption period shall expire at the earliest 12 months and at the latest 18 months after the date of the decision; |
| --- | --- |

Z.

whereas according to Article 5(6) of the RoHS Directive, in the event that an application for renewal of an exemption is rejected or an exemption is revoked, the exemption period shall expire at the earliest 12 months and at the latest 18 months after the date of the decision;

| AA. | whereas a rejection of the delegated directive therefore does not ban cadmium quantum dots, but only triggers a new assessment; whereas there are therefore no market distortions, as the current exemption stays valid until revocation, with an additional grace period to be granted thereafter; |
| --- | --- |

AA.

whereas a rejection of the delegated directive therefore does not ban cadmium quantum dots, but only triggers a new assessment; whereas there are therefore no market distortions, as the current exemption stays valid until revocation, with an additional grace period to be granted thereafter;

| AB. | whereas there have been important new developments with regard to the commercial availability of products based on cadmium-free quantum dot technology which require a new assessment, |
| --- | --- |

AB.

whereas there have been important new developments with regard to the commercial availability of products based on cadmium-free quantum dot technology which require a new assessment,

| 1. | Objects to the Commission delegated directive; |
| --- | --- |

1.

Objects to the Commission delegated directive;

| 2. | Instructs its President to forward this resolution to the Commission and to notify it that the delegated directive cannot enter into force; |
| --- | --- |

2.

Instructs its President to forward this resolution to the Commission and to notify it that the delegated directive cannot enter into force;

| 3. | Considers that the Commission delegated directive fails to comply with the conditions laid down in Article 5(1)(a) of Directive 2011/65/EU, for both exemptions it inserts in points 39(a) and 39(b) of Annex III to Directive 2011/65/EU; |
| --- | --- |

3.

Considers that the Commission delegated directive fails to comply with the conditions laid down in Article 5(1)(a) of Directive 2011/65/EU, for both exemptions it inserts in points 39(a) and 39(b) of Annex III to Directive 2011/65/EU;

| 4. | Considers in particular that the justification given for the exemption in point 39(b) is based on an outdated situation with regard to the practicability of replacement of cadmium in quantum dots; therefore calls for a swift reassessment of the existing exemption in point 39 of Annex III to Directive 2011/65/EU against the conditions of Article 5(1)(a) thereof with a view to its revocation; |
| --- | --- |

4.

Considers in particular that the justification given for the exemption in point 39(b) is based on an outdated situation with regard to the practicability of replacement of cadmium in quantum dots; therefore calls for a swift reassessment of the existing exemption in point 39 of Annex III to Directive 2011/65/EU against the conditions of Article 5(1)(a) thereof with a view to its revocation;

| 5. | Calls on the Commission to submit a new delegated act which takes into account the position of Parliament; |
| --- | --- |

5.

Calls on the Commission to submit a new delegated act which takes into account the position of Parliament;

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

6.

Instructs its President to forward this resolution to the Council and to the governments and parliaments of the Member States.

---

(1)  OJ L 174, 1.7.2011, p. 88.

(2)  Öko-Institut, Fraunhofer, Eunomia (2014): Assistance to the Commission on technological socio-economic and cost-benefit assessment related to exemptions from the substance restrictions in electrical and electronic equipment (p. 89) — http://rohs.exemptions.oeko.info/fileadmin/user_upload/RoHS_IX/20140422_RoHS2_Evaluation_Ex_Requests_2013-1-5_final.pdf

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| 27.9.2016 | EN | Official Journal of the European Union | C 353/38 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/38

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P8_TA(2015)0206

Objection to a delegated act: Licence for imports of ethyl alcohol of agricultural origin

European Parliament resolution of 20 May 2015 on the Commission delegated regulation of 20 February 2015 amending Regulation (EC) No 376/2008 as regards the obligation to present a licence for imports of ethyl alcohol of agricultural origin and repealing Regulation (EC) No 2336/2003 introducing certain detailed rules for applying Council Regulation (EC) No 670/2003 laying down specific measures concerning the market in ethyl alcohol of agricultural origin (C(2015)00861 — 2015/2580(DEA))

(2016/C 353/05)

The European Parliament,

| — | having regard to the Commission delegated regulation (C(2015)00861), |
| --- | --- |

—

having regard to the Commission delegated regulation (C(2015)00861),

| — | having regard to Article 290 of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 290 of the Treaty on the Functioning of the European Union,

| — | having regard to Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (1), and in particular Articles 177(1)(a), 223(2) and 227(5) thereof, |
| --- | --- |

—

having regard to Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (1), and in particular Articles 177(1)(a), 223(2) and 227(5) thereof,

| — | having regard to the motion for a resolution by the Committee on Agriculture and Rural Development, |
| --- | --- |

—

having regard to the motion for a resolution by the Committee on Agriculture and Rural Development,

| — | having regard to Rule 105(3) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 105(3) of its Rules of Procedure,

| A. | whereas the following-up of data relating to ethyl alcohol of agricultural origin ensures both transparency and knowledge as regards the evolution of the market, which is still unstable and which faces strong competition, in particular on account of importation from third countries; |
| --- | --- |

A.

whereas the following-up of data relating to ethyl alcohol of agricultural origin ensures both transparency and knowledge as regards the evolution of the market, which is still unstable and which faces strong competition, in particular on account of importation from third countries;

| B. | whereas such information is also extremely useful when it comes to international agreement negotiations and anti-dumping investigations; |
| --- | --- |

B.

whereas such information is also extremely useful when it comes to international agreement negotiations and anti-dumping investigations;

| C. | whereas Eurostat does not provide such precise information, meaning that there is no alternative way for operators, Member States and EU institutions to be fully aware of the situation of the market; |
| --- | --- |

C.

whereas Eurostat does not provide such precise information, meaning that there is no alternative way for operators, Member States and EU institutions to be fully aware of the situation of the market;

| 1. | Objects to the Commission delegated regulation; |
| --- | --- |

1.

Objects to the Commission delegated regulation;

| 2. | Instructs its President to forward this resolution to the Commission and to notify it that the delegated regulation cannot enter into force; |
| --- | --- |

2.

Instructs its President to forward this resolution to the Commission and to notify it that the delegated regulation cannot enter into force;

| 3. | Instructs its President to forward this resolution to the Council and to the governments and parliaments of the Member States. |
| --- | --- |

3.

Instructs its President to forward this resolution to the Council and to the governments and parliaments of the Member States.

---

(1)  OJ L 347, 20.12.2013, p. 671.

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| 27.9.2016 | EN | Official Journal of the European Union | C 353/39 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/39

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P8_TA(2015)0207

Maternity leave

European Parliament resolution of 20 May 2015 on maternity leave (2015/2655(RSP))

(2016/C 353/06)

The European Parliament,

| — | having regard to Articles 2 and 3(3), second subparagraph, of the Treaty on European Union (TEU) and to Articles 8 and 294 of the Treaty on the Functioning of the European Union (TFEU), |
| --- | --- |

—

having regard to Articles 2 and 3(3), second subparagraph, of the Treaty on European Union (TEU) and to Articles 8 and 294 of the Treaty on the Functioning of the European Union (TFEU),

| — | having regard to Council Directive 92/85/EEC of 19 October 1992 on the introduction of measures to encourage improvements in the safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding (1) (the Maternity Leave Directive), |
| --- | --- |

—

having regard to Council Directive 92/85/EEC of 19 October 1992 on the introduction of measures to encourage improvements in the safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding (1) (the Maternity Leave Directive),

| — | having regard to the Commission proposal for a directive of the European Parliament and of the Council amending the Maternity Leave Directive (COM(2008)0637), |
| --- | --- |

—

having regard to the Commission proposal for a directive of the European Parliament and of the Council amending the Maternity Leave Directive (COM(2008)0637),

| — | having regard to its position adopted at first reading on 20 October 2010 with a view to the adoption of Directive 2011/.../EU of the European Parliament and of the Council amending the Maternity Leave Directive (2), |
| --- | --- |

—

having regard to its position adopted at first reading on 20 October 2010 with a view to the adoption of Directive 2011/.../EU of the European Parliament and of the Council amending the Maternity Leave Directive (2),

| — | having regard to Parliament’s repeated statements on the subject, including its resolution of 10 March 2015 on progress on equality between women and men in the European Union in 2013 (3), |
| --- | --- |

—

having regard to Parliament’s repeated statements on the subject, including its resolution of 10 March 2015 on progress on equality between women and men in the European Union in 2013 (3),

| — | having regard to the interinstitutional agreement on better law-making (4) and to the forthcoming one on the same subject, |
| --- | --- |

—

having regard to the interinstitutional agreement on better law-making (4) and to the forthcoming one on the same subject,

| — | having regard to the questions to the Council and to the Commission on maternity leave (O-000049/2015 — B8-0119/2015 and O-000050/2015 — B8-0120/2015), |
| --- | --- |

—

having regard to the questions to the Council and to the Commission on maternity leave (O-000049/2015 — B8-0119/2015 and O-000050/2015 — B8-0120/2015),

| — | having regard to the European Court of Justice judgment of 14 April 2015 regarding, inter alia, the Commission’s right to withdraw a proposal (Case C-409/13), |
| --- | --- |

—

having regard to the European Court of Justice judgment of 14 April 2015 regarding, inter alia, the Commission’s right to withdraw a proposal (Case C-409/13),

| — | having regard to Rules 128(5) and 123(2) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 128(5) and 123(2) of its Rules of Procedure,

| A. | whereas the principle of equal treatment of women and men implies that there must be no discrimination whatsoever, be it direct or indirect, including on account of motherhood, fatherhood and the fact of shouldering family responsibilities; |
| --- | --- |

A.

whereas the principle of equal treatment of women and men implies that there must be no discrimination whatsoever, be it direct or indirect, including on account of motherhood, fatherhood and the fact of shouldering family responsibilities;

| B. | whereas the Europe 2020 strategy for smart, sustainable and inclusive growth entails ambitious targets, such as a 75 % employment rate and a reduction in the number of people suffering, or threatened by, poverty and social exclusion by at least 20 million by 2020; |
| --- | --- |

B.

whereas the Europe 2020 strategy for smart, sustainable and inclusive growth entails ambitious targets, such as a 75 % employment rate and a reduction in the number of people suffering, or threatened by, poverty and social exclusion by at least 20 million by 2020;

| C. | whereas there are more women than men living in poverty and exclusion, especially older women, whose average pension level is 39 % lower than that of men, and single mothers; whereas it is more common for women than men to work part-time or on fixed-term or temporary contracts, and whereas women’s poverty is due largely to the precariousness of their jobs; |
| --- | --- |

C.

whereas there are more women than men living in poverty and exclusion, especially older women, whose average pension level is 39 % lower than that of men, and single mothers; whereas it is more common for women than men to work part-time or on fixed-term or temporary contracts, and whereas women’s poverty is due largely to the precariousness of their jobs;

| D. | whereas the falling birth rate in the EU has been exacerbated by the crisis, given that unemployment, precarious circumstances and uncertainty about the future and the economy are making couples, and younger women in particular, put off having children, thereby further reinforcing the EU-wide trend towards population ageing; |
| --- | --- |

D.

whereas the falling birth rate in the EU has been exacerbated by the crisis, given that unemployment, precarious circumstances and uncertainty about the future and the economy are making couples, and younger women in particular, put off having children, thereby further reinforcing the EU-wide trend towards population ageing;

| E. | whereas women spend three times as long as men every week on household chores (including caring for children, elderly people and people with disabilities as well as household tasks); whereas the female unemployment rate is underestimated, given that many women are not registered as unemployed, particularly those who devote themselves exclusively to household tasks and childcare; |
| --- | --- |

E.

whereas women spend three times as long as men every week on household chores (including caring for children, elderly people and people with disabilities as well as household tasks); whereas the female unemployment rate is underestimated, given that many women are not registered as unemployed, particularly those who devote themselves exclusively to household tasks and childcare;

| F. | whereas the sharing of family and domestic responsibilities between women and men is essential in order to achieve gender equality; whereas a quarter of Member States do not offer paternity leave; |
| --- | --- |

F.

whereas the sharing of family and domestic responsibilities between women and men is essential in order to achieve gender equality; whereas a quarter of Member States do not offer paternity leave;

| G. | whereas the Council has still not responded officially to Parliament’s first-reading position of 20 October 2010 on the proposal for a directive amending the Maternity Leave Directive; |
| --- | --- |

G.

whereas the Council has still not responded officially to Parliament’s first-reading position of 20 October 2010 on the proposal for a directive amending the Maternity Leave Directive;

| 1. | Deplores the deadlock in the Council regarding the Maternity Leave Directive; urges the Member States to resume negotiations; |
| --- | --- |

1.

Deplores the deadlock in the Council regarding the Maternity Leave Directive; urges the Member States to resume negotiations;

| 2. | Deplores the interinstitutional instability resulting from the Council’s failure to act, given that Parliament has concluded its first reading, yet the discussions in the Council have been halted, thereby compromising the whole legislative procedure; |
| --- | --- |

2.

Deplores the interinstitutional instability resulting from the Council’s failure to act, given that Parliament has concluded its first reading, yet the discussions in the Council have been halted, thereby compromising the whole legislative procedure;

| 3. | Reiterates its willingness to end the deadlock, and calls for the Commission to play its role of ‘honest broker’ and to engage in a constructive manner with the co-legislators with a view to reconciling the positions of Parliament and the Council, with due regard for the balance between the institutions and the role conferred on it by the Treaties; |
| --- | --- |

3.

Reiterates its willingness to end the deadlock, and calls for the Commission to play its role of ‘honest broker’ and to engage in a constructive manner with the co-legislators with a view to reconciling the positions of Parliament and the Council, with due regard for the balance between the institutions and the role conferred on it by the Treaties;

| 4. | Deplores the fact that the proposed revision of the directive may be withdrawn by the Commission as part of the REFIT exercise, and, if this ultimately proves to be the case, asks for a legislative initiative aimed at revising Council Directive 92/85/EEC as an immediate alternative, to be started under the Luxembourg presidency of the Council, in order to improve the health and safety of pregnant workers and workers who have recently given birth or are breastfeeding, thereby addressing demographic challenges while also reducing inequality between men and women; |
| --- | --- |

4.

Deplores the fact that the proposed revision of the directive may be withdrawn by the Commission as part of the REFIT exercise, and, if this ultimately proves to be the case, asks for a legislative initiative aimed at revising Council Directive 92/85/EEC as an immediate alternative, to be started under the Luxembourg presidency of the Council, in order to improve the health and safety of pregnant workers and workers who have recently given birth or are breastfeeding, thereby addressing demographic challenges while also reducing inequality between men and women;

| 5. | Notes the European Court of Justice judgment of 14 April 2015 regarding the Commission’s right to withdraw a proposal (Case C-409/13), which reaffirms the specific conditions to be fulfilled by the Commission, inter alia that it honour its obligation to state to Parliament and the Council the grounds for the withdrawal and to abide by the principles of conferral of powers, institutional balance and sincere cooperation, as laid down in the TEU; |
| --- | --- |

5.

Notes the European Court of Justice judgment of 14 April 2015 regarding the Commission’s right to withdraw a proposal (Case C-409/13), which reaffirms the specific conditions to be fulfilled by the Commission, inter alia that it honour its obligation to state to Parliament and the Council the grounds for the withdrawal and to abide by the principles of conferral of powers, institutional balance and sincere cooperation, as laid down in the TEU;

| 6. | Reiterates its willingness to draft a separate directive establishing paid paternity leave of at least 10 working days and encouraging measures, legislative and otherwise, which enable men, and fathers in particular, to exercise their right to achieve work-life balance; |
| --- | --- |

6.

Reiterates its willingness to draft a separate directive establishing paid paternity leave of at least 10 working days and encouraging measures, legislative and otherwise, which enable men, and fathers in particular, to exercise their right to achieve work-life balance;

| 7. | Awaits the final assessment of Council Directive 2010/18/EU on parental leave and, in view of the available interim studies, calls for a revision of that directive as it is not reaching its target of reconciling private and professional life in order to achieve work-life balance for both parents, and especially women, who are impacted by the gender gaps in respect of pay, pensions and poverty; |
| --- | --- |

7.

Awaits the final assessment of Council Directive 2010/18/EU on parental leave and, in view of the available interim studies, calls for a revision of that directive as it is not reaching its target of reconciling private and professional life in order to achieve work-life balance for both parents, and especially women, who are impacted by the gender gaps in respect of pay, pensions and poverty;

| 8. | Instructs its President to forward this resolution to the Council and the Commission. |
| --- | --- |

8.

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

---

(1)  OJ L 348, 28.11.1992, p. 1.

(2)  OJ C 70 E, 8.3.2012, p. 163.

(3)  Texts adopted, P8_TA(2015)0050.

(4)  OJ C 321, 31.12.2003, p. 1.

---

| 27.9.2016 | EN | Official Journal of the European Union | C 353/41 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/41

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P8_TA(2015)0208

UN Convention on the Rights of Persons with Disabilities

European Parliament resolution of 20 May 2015 on the List of Issues adopted by the United Nations Committee on the Rights of Persons with Disabilities in relation to the initial report of the European Union (2015/2684(RSP))

(2016/C 353/07)

The European Parliament,

| — | having regard to the United Nations Convention on the Rights of Persons with Disabilities (CRPD) and its entry into force in the EU on 21 January 2011 in accordance with Council Decision 2010/48/EC of 26 November 2009 concerning the conclusion, by the European Community, of the United Nations Convention on the Rights of Persons with Disabilities (1), |
| --- | --- |

—

having regard to the United Nations Convention on the Rights of Persons with Disabilities (CRPD) and its entry into force in the EU on 21 January 2011 in accordance with Council Decision 2010/48/EC of 26 November 2009 concerning the conclusion, by the European Community, of the United Nations Convention on the Rights of Persons with Disabilities (1),

| — | having regard to the Code of Conduct between the Council, the Member States and the Commission setting out internal arrangements for the implementation by and representation of the European Union relating to the United Nations Convention on the Rights of Persons with Disabilities (2), |
| --- | --- |

—

having regard to the Code of Conduct between the Council, the Member States and the Commission setting out internal arrangements for the implementation by and representation of the European Union relating to the United Nations Convention on the Rights of Persons with Disabilities (2),

| — | having regard to the Universal Declaration of Human Rights, the Convention for the Protection of Human Rights and Fundamental Freedoms and the International Covenant on Economic, Social and Cultural Rights, |
| --- | --- |

—

having regard to the Universal Declaration of Human Rights, the Convention for the Protection of Human Rights and Fundamental Freedoms and the International Covenant on Economic, Social and Cultural Rights,

| — | having regard to the Commission staff working document entitled ‘Report on the implementation of the UN Convention on the Rights of Persons with Disabilities (CRPD) by the European Union’ (SWD(2014)0182), |
| --- | --- |

—

having regard to the Commission staff working document entitled ‘Report on the implementation of the UN Convention on the Rights of Persons with Disabilities (CRPD) by the European Union’ (SWD(2014)0182),

| — | having regard to the List of Issues adopted by the UN Committee on the Rights of Persons with Disabilities in relation to the initial report of the European Union (3), |
| --- | --- |

—

having regard to the List of Issues adopted by the UN Committee on the Rights of Persons with Disabilities in relation to the initial report of the European Union (3),

| — | having regard to the Commission communication of 15 November 2010 entitled ‘European Disability Strategy 2010-2020: A renewed commitment to a barrier-free Europe’ (COM(2010)0636), |
| --- | --- |

—

having regard to the Commission communication of 15 November 2010 entitled ‘European Disability Strategy 2010-2020: A renewed commitment to a barrier-free Europe’ (COM(2010)0636),

| — | having regard to its resolution of 25 October 2011 on mobility and inclusion of people with disabilities and the European Disability Strategy 2010-2020 (4), |
| --- | --- |

—

having regard to its resolution of 25 October 2011 on mobility and inclusion of people with disabilities and the European Disability Strategy 2010-2020 (4),

| — | having regard to the 2013 Annual Report of the European Ombudsman, |
| --- | --- |

—

having regard to the 2013 Annual Report of the European Ombudsman,

| — | having regard to Articles 2, 9, 10, 19 and 168 of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Articles 2, 9, 10, 19 and 168 of the Treaty on the Functioning of the European Union,

| — | having regard to Articles 3, 15, 21, 23 and 26 of the Charter of Fundamental Rights of the European Union, |
| --- | --- |

—

having regard to Articles 3, 15, 21, 23 and 26 of the Charter of Fundamental Rights of the European Union,

| — | having regard to Council Directive 2000/78/EC of 27 November 2000 establishing a general framework for equal treatment in employment and occupation (5), |
| --- | --- |

—

having regard to Council Directive 2000/78/EC of 27 November 2000 establishing a general framework for equal treatment in employment and occupation (5),

| — | having regard to Rule 123(2) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 123(2) of its Rules of Procedure,

| A. | whereas, as full citizens, persons with disabilities have equal rights and are entitled to inalienable dignity, equal treatment, independent living and full participation in society; |
| --- | --- |

A.

whereas, as full citizens, persons with disabilities have equal rights and are entitled to inalienable dignity, equal treatment, independent living and full participation in society;

| B. | whereas an estimated 80 million people in the European Union have a disability; |
| --- | --- |

B.

whereas an estimated 80 million people in the European Union have a disability;

| C. | whereas evidence from the EU Agency for Fundamental Rights consistently demonstrates that persons with disabilities face discrimination and barriers to exercising their rights on an equal basis with others; |
| --- | --- |

C.

whereas evidence from the EU Agency for Fundamental Rights consistently demonstrates that persons with disabilities face discrimination and barriers to exercising their rights on an equal basis with others;

| D. | whereas people with disabilities are one of the most vulnerable groups in our society and their integration into the labour market represents one of the biggest challenges for social and labour market policies; |
| --- | --- |

D.

whereas people with disabilities are one of the most vulnerable groups in our society and their integration into the labour market represents one of the biggest challenges for social and labour market policies;

| E. | whereas full inclusion and equal participation of persons with disabilities can only be achieved by taking a human-rights-based approach to disability at all levels of EU policymaking, implementation and monitoring, including intra-institutionally, and whereas the Commission must have due regard to this in future proposals; |
| --- | --- |

E.

whereas full inclusion and equal participation of persons with disabilities can only be achieved by taking a human-rights-based approach to disability at all levels of EU policymaking, implementation and monitoring, including intra-institutionally, and whereas the Commission must have due regard to this in future proposals;

| F. | whereas, according to EU Agency for Fundamental Rights, 21 out of 28 Member States still impose restrictions on the full exercise of legal capacity; |
| --- | --- |

F.

whereas, according to EU Agency for Fundamental Rights, 21 out of 28 Member States still impose restrictions on the full exercise of legal capacity;

| G. | whereas an EU anti-discrimination directive was proposed by the Commission in 2008, but whereas it remains blocked in the Council; |
| --- | --- |

G.

whereas an EU anti-discrimination directive was proposed by the Commission in 2008, but whereas it remains blocked in the Council;

| H. | whereas the CRPD principles go far beyond discrimination, pointing the way towards the full enjoyment of human rights by all persons with disabilities in an inclusive society, and are also aimed at providing the necessary protection and assistance to enable families to contribute to the full and equal enjoyment of the rights of persons with disabilities; |
| --- | --- |

H.

whereas the CRPD principles go far beyond discrimination, pointing the way towards the full enjoyment of human rights by all persons with disabilities in an inclusive society, and are also aimed at providing the necessary protection and assistance to enable families to contribute to the full and equal enjoyment of the rights of persons with disabilities;

| I. | whereas the EU has formally ratified the CRPD, which has also been signed by all 28 EU Member States and ratified by 25 of them; |
| --- | --- |

I.

whereas the EU has formally ratified the CRPD, which has also been signed by all 28 EU Member States and ratified by 25 of them;

| J. | whereas every year Parliament’s Committee on Petitions receives petitions dealing with discrimination on grounds of disability in access to employment, self-employment, public services and education; |
| --- | --- |

J.

whereas every year Parliament’s Committee on Petitions receives petitions dealing with discrimination on grounds of disability in access to employment, self-employment, public services and education;

| K. | whereas people with disabilities are not a homogeneous group, and whereas policies and actions planned on their behalf should take account of that lack of homogeneity and of the fact that some groups, such as women, children and individuals who need more intense support, face additional difficulties and multiple forms of discrimination; |
| --- | --- |

K.

whereas people with disabilities are not a homogeneous group, and whereas policies and actions planned on their behalf should take account of that lack of homogeneity and of the fact that some groups, such as women, children and individuals who need more intense support, face additional difficulties and multiple forms of discrimination;

| L. | whereas Parliament must take into consideration the fact that the provisions of the CRPD are minimum standards that allow the European institutions to go beyond them in order to protect persons with disabilities and to fight discrimination; |
| --- | --- |

L.

whereas Parliament must take into consideration the fact that the provisions of the CRPD are minimum standards that allow the European institutions to go beyond them in order to protect persons with disabilities and to fight discrimination;

| M. | whereas access to work, coupled with non-discrimination in the workplace, is a fundamental element for a self-determined and independent life; whereas, despite all the existing programmes, initiatives and strategies at the EU level, the employment rate for people between the ages of 20 and 64 is higher than 70 %, while the employment rate for persons with disabilities is lower than 50 %; whereas the employment rate for women without disabilities is 65 %, compared with 44 % for women with disabilities; |
| --- | --- |

M.

whereas access to work, coupled with non-discrimination in the workplace, is a fundamental element for a self-determined and independent life; whereas, despite all the existing programmes, initiatives and strategies at the EU level, the employment rate for people between the ages of 20 and 64 is higher than 70 %, while the employment rate for persons with disabilities is lower than 50 %; whereas the employment rate for women without disabilities is 65 %, compared with 44 % for women with disabilities;

| N. | whereas paid employment is essential to enable persons with disabilities to lead an independent life, and whereas the Member States should therefore strive for wider access to employment for people with disabilities so that they can contribute to the society they live in, and should, as a precondition, provide inclusive education for all children with disabilities, including those with learning difficulties, in order to help them acquire a good educational grounding from primary school on so that they can follow a curriculum appropriate to their learning abilities, thereby giving them the opportunity to gain a solid educational background that can help them develop a career or secure a good job which enables them to live an independent life later on; |
| --- | --- |

N.

whereas paid employment is essential to enable persons with disabilities to lead an independent life, and whereas the Member States should therefore strive for wider access to employment for people with disabilities so that they can contribute to the society they live in, and should, as a precondition, provide inclusive education for all children with disabilities, including those with learning difficulties, in order to help them acquire a good educational grounding from primary school on so that they can follow a curriculum appropriate to their learning abilities, thereby giving them the opportunity to gain a solid educational background that can help them develop a career or secure a good job which enables them to live an independent life later on;

| O. | whereas disability is an evolving concept that results from the interaction between people with impairments and attitudinal and environmental barriers that hinder their full and effective participation in society on an equal basis with others and with the same dignity; |
| --- | --- |

O.

whereas disability is an evolving concept that results from the interaction between people with impairments and attitudinal and environmental barriers that hinder their full and effective participation in society on an equal basis with others and with the same dignity;

| P. | whereas, on the basis of Article 7 of the Common Provisions Regulation (CPR), in particular, accessibility for persons with disabilities must be taken into account throughout the preparation and implementation of programmes financed by the European Structural and Investment Funds, and whereas the same issues should be taken into consideration in the preparation and implementation of other EU funds; |
| --- | --- |

P.

whereas, on the basis of Article 7 of the Common Provisions Regulation (CPR), in particular, accessibility for persons with disabilities must be taken into account throughout the preparation and implementation of programmes financed by the European Structural and Investment Funds, and whereas the same issues should be taken into consideration in the preparation and implementation of other EU funds;

| Q. | whereas in some Member States the demand for social services is growing on account of demographic and societal changes, with increased rates of unemployment, poverty and social exclusion, including a lack of availability of quality services for persons with disabilities, which is having a negative effect on the ability of those with disabilities to live independently, inclusively and on an equal basis with others; |
| --- | --- |

Q.

whereas in some Member States the demand for social services is growing on account of demographic and societal changes, with increased rates of unemployment, poverty and social exclusion, including a lack of availability of quality services for persons with disabilities, which is having a negative effect on the ability of those with disabilities to live independently, inclusively and on an equal basis with others;

| R. | whereas existing EU legislation relating to the rights of persons with disabilities should be better implemented and enforced in order to increase accessibility for all those with disabilities across the EU; |
| --- | --- |

R.

whereas existing EU legislation relating to the rights of persons with disabilities should be better implemented and enforced in order to increase accessibility for all those with disabilities across the EU;

| S. | whereas Parliament forms part of the EU Framework to promote, protect, and monitor the implementation of the CRPD, in accordance with Article 33(2) of the CRPD; |
| --- | --- |

S.

whereas Parliament forms part of the EU Framework to promote, protect, and monitor the implementation of the CRPD, in accordance with Article 33(2) of the CRPD;

| T. | whereas several civil society organisations submitted information to the CRPD Committee in relation to the List of Issues; |
| --- | --- |

T.

whereas several civil society organisations submitted information to the CRPD Committee in relation to the List of Issues;

| U. | whereas the Commission, as the focal point under Article 33(1) of the CRPD, has been designated to answer the List of Issues adopted by the CRPD Committee; |
| --- | --- |

U.

whereas the Commission, as the focal point under Article 33(1) of the CRPD, has been designated to answer the List of Issues adopted by the CRPD Committee;

| V. | whereas Parliament is the only directly elected body of the European Union representing European citizens and therefore fully complies with the Paris Principles, as stipulated in Article 33 of the CRPD; |
| --- | --- |

V.

whereas Parliament is the only directly elected body of the European Union representing European citizens and therefore fully complies with the Paris Principles, as stipulated in Article 33 of the CRPD;

| 1. | Assures the CRPD Committee that the European Parliament will respond to questions directly addressed to it, while also urging the Commission to take Parliament’s views into account when formulating its own answers to the committee; |
| --- | --- |

1.

Assures the CRPD Committee that the European Parliament will respond to questions directly addressed to it, while also urging the Commission to take Parliament’s views into account when formulating its own answers to the committee;

| 2. | Considers it regrettable that the Code of Conduct was adopted by the Commission and the Council without the involvement of Parliament, with the result that Parliament has limited competences with regard to the monitoring of the CRPD; |
| --- | --- |

2.

Considers it regrettable that the Code of Conduct was adopted by the Commission and the Council without the involvement of Parliament, with the result that Parliament has limited competences with regard to the monitoring of the CRPD;

| 3. | Calls on the Commission to formally consult on its answer to the List of Issues with all relevant institutions and agencies, including Parliament, the European Economic and Social Committee, the Committee of the Regions, the Ombudsman and the EU Agency for Fundamental Rights; |
| --- | --- |

3.

Calls on the Commission to formally consult on its answer to the List of Issues with all relevant institutions and agencies, including Parliament, the European Economic and Social Committee, the Committee of the Regions, the Ombudsman and the EU Agency for Fundamental Rights;

| 4. | Calls on the Commission to invite the EU Framework to formally participate in the Constructive Dialogue; |
| --- | --- |

4.

Calls on the Commission to invite the EU Framework to formally participate in the Constructive Dialogue;

| 5. | Highlights the fact that the proposal for an EU anti-discrimination directive seeks to protect people with disabilities against discrimination in social protection, health care and (re)habilitation, education and access to and supply of goods and services, such as housing, transport and insurance; deplores the lack of progress within the Council on this proposal and urges the Member States to work towards the adoption of a common position without any further delay; |
| --- | --- |

5.

Highlights the fact that the proposal for an EU anti-discrimination directive seeks to protect people with disabilities against discrimination in social protection, health care and (re)habilitation, education and access to and supply of goods and services, such as housing, transport and insurance; deplores the lack of progress within the Council on this proposal and urges the Member States to work towards the adoption of a common position without any further delay;

| 6. | Notes that the lack of disaggregated data and statistics in relation to specific disability groups is a barrier to formulating adequate policies; calls on the Commission, therefore, to collect and disseminate statistical data on disability, disaggregated by age and gender, with a view to monitoring the situation of persons with disabilities across the EU in relevant areas of daily life, and not only in the field of employment; |
| --- | --- |

6.

Notes that the lack of disaggregated data and statistics in relation to specific disability groups is a barrier to formulating adequate policies; calls on the Commission, therefore, to collect and disseminate statistical data on disability, disaggregated by age and gender, with a view to monitoring the situation of persons with disabilities across the EU in relevant areas of daily life, and not only in the field of employment;

| 7. | Notes that several civil society organisations submitted information to the CRPD Committee for the List of Issues; urges the Commission, therefore, to further develop a structured dialogue and to consult and cooperate with organisations representing persons with disabilities as part of the review process, including in formulating an answer to the CRPD Committee on its List of Issues, and in developing, implementing and monitoring EU policies in this area; |
| --- | --- |

7.

Notes that several civil society organisations submitted information to the CRPD Committee for the List of Issues; urges the Commission, therefore, to further develop a structured dialogue and to consult and cooperate with organisations representing persons with disabilities as part of the review process, including in formulating an answer to the CRPD Committee on its List of Issues, and in developing, implementing and monitoring EU policies in this area;

| 8. | Calls on those Member States which have not already done so to ratify the CRPD without delay; |
| --- | --- |

8.

Calls on those Member States which have not already done so to ratify the CRPD without delay;

| 9. | Calls on the Commission to present an ambitious proposal for a European Accessibility Act, with the full involvement of persons with disabilities throughout the legislative cycle, and stresses the need for this proposal to include a full range of policy areas with regard to the accessibility of goods and services for all EU citizens, fostering the independent living and full inclusion of people with disabilities and establishing an ongoing, effective and independent monitoring and enforcement mechanism; |
| --- | --- |

9.

Calls on the Commission to present an ambitious proposal for a European Accessibility Act, with the full involvement of persons with disabilities throughout the legislative cycle, and stresses the need for this proposal to include a full range of policy areas with regard to the accessibility of goods and services for all EU citizens, fostering the independent living and full inclusion of people with disabilities and establishing an ongoing, effective and independent monitoring and enforcement mechanism;

| 10. | Calls on the Member States to translate into national law the obligations derived from Article 12 of the CRPD, most specifically to ease any restrictions on their rights to cast their vote and to be elected; |
| --- | --- |

10.

Calls on the Member States to translate into national law the obligations derived from Article 12 of the CRPD, most specifically to ease any restrictions on their rights to cast their vote and to be elected;

| 11. | Urges the Council to accelerate its work on the proposal for a directive on the accessibility of public sector bodies’ websites, with a view to reaching a common position and further advancing towards the adoption of this piece of legislation, thereby increasing the accessibility of documents, videos and websites and providing alternative formats and means of communication; |
| --- | --- |

11.

Urges the Council to accelerate its work on the proposal for a directive on the accessibility of public sector bodies’ websites, with a view to reaching a common position and further advancing towards the adoption of this piece of legislation, thereby increasing the accessibility of documents, videos and websites and providing alternative formats and means of communication;

| 12. | Recommends that EU funds be used to promote accessibility and e-accessibility for persons with disabilities, to promote a transition from institutional to community-based care, to develop quality social and health services, and to invest in capacity-building for organisations representing persons with disabilities; |
| --- | --- |

12.

Recommends that EU funds be used to promote accessibility and e-accessibility for persons with disabilities, to promote a transition from institutional to community-based care, to develop quality social and health services, and to invest in capacity-building for organisations representing persons with disabilities;

| 13. | Notes its responses and actions in respect of the List of Issues raised in relation to the initial report of the European Union as part of the CRPD review:






  a. | It has set up an inter-committee coordination working group made up of members from each of the relevant committees, which has arranged awareness-raising events open to staff and MEPs, including the organisation of sign language courses as part of professional training; |
| --- | --- | --- |

13.

Notes its responses and actions in respect of the List of Issues raised in relation to the initial report of the European Union as part of the CRPD review:

a.

It has set up an inter-committee coordination working group made up of members from each of the relevant committees, which has arranged awareness-raising events open to staff and MEPs, including the organisation of sign language courses as part of professional training;

| b. | It has highlighted the need for accessibility in respect of universal service and the 112 emergency number in its resolution of 5 July 2011 (6) and its declaration of 17 November 2011 (7), which was a milestone in the development of the eCall in-vehicle system; |
| --- | --- |

b.

It has highlighted the need for accessibility in respect of universal service and the 112 emergency number in its resolution of 5 July 2011 (6) and its declaration of 17 November 2011 (7), which was a milestone in the development of the eCall in-vehicle system;

| c. | The number of MEPs with disabilities increased significantly as a result of the 2014 elections; |
| --- | --- |

c.

The number of MEPs with disabilities increased significantly as a result of the 2014 elections;

| d. | It commits itself to working actively with the relevant actors to find a pragmatic solution to acceding to the Marrakesh Treaty; |
| --- | --- |

d.

It commits itself to working actively with the relevant actors to find a pragmatic solution to acceding to the Marrakesh Treaty;

| e. | It stresses the need to improve the implementation of EU legislation in order to ensure that those with disabilities can travel independently using all transport modes, including public transport; |
| --- | --- |

e.

It stresses the need to improve the implementation of EU legislation in order to ensure that those with disabilities can travel independently using all transport modes, including public transport;

| f. | It calls on the Commission to deliver the requested explanation as to how it can ensure in current and future legislation that persons with disabilities are guaranteed equal opportunities, fundamental rights, equal access to services and the employment market, and the same rights and obligations in accessing social security as nationals of the Member State in which they are covered, in line with the principle of equal treatment and non-discrimination, so that all persons with disabilities can enjoy the right to free movement held by all EU citizens; |
| --- | --- |

f.

It calls on the Commission to deliver the requested explanation as to how it can ensure in current and future legislation that persons with disabilities are guaranteed equal opportunities, fundamental rights, equal access to services and the employment market, and the same rights and obligations in accessing social security as nationals of the Member State in which they are covered, in line with the principle of equal treatment and non-discrimination, so that all persons with disabilities can enjoy the right to free movement held by all EU citizens;

| g. | It calls on the Member States and the Commission to ensure that access to justice in respect of EU legislation is in full compliance with the CRPD, so that fundamental rights are accessible to all; |
| --- | --- |

g.

It calls on the Member States and the Commission to ensure that access to justice in respect of EU legislation is in full compliance with the CRPD, so that fundamental rights are accessible to all;

| 14. | Stresses the need for enhanced political cooperation within the EU Framework, including the necessary financial and human resources to ensure that it can fulfil its tasks as outlined in the aforementioned Council decision, and urges actors within the EU Framework to allocate the requested resources to this task; |
| --- | --- |

14.

Stresses the need for enhanced political cooperation within the EU Framework, including the necessary financial and human resources to ensure that it can fulfil its tasks as outlined in the aforementioned Council decision, and urges actors within the EU Framework to allocate the requested resources to this task;

| 15. | Welcomes MEPs’ initiative of requesting that a joint report be drawn up on a regular basis by the Committee on Civil Liberties, Justice and Home Affairs, the Committee on Employment and Social Affairs and the Committee on Petitions in response to the recommendations of the CRPD Committee; |
| --- | --- |

15.

Welcomes MEPs’ initiative of requesting that a joint report be drawn up on a regular basis by the Committee on Civil Liberties, Justice and Home Affairs, the Committee on Employment and Social Affairs and the Committee on Petitions in response to the recommendations of the CRPD Committee;

| 16. | Instructs its President to forward this resolution to the Council, the Commission, the Committee on the Rights of Persons with Disabilities, and the governments and parliaments of the Member States. |
| --- | --- |

16.

Instructs its President to forward this resolution to the Council, the Commission, the Committee on the Rights of Persons with Disabilities, and the governments and parliaments of the Member States.

---

(1)  OJ L 23, 27.1.2010, p. 35.

(2)  OJ C 340, 15.12.2010, p. 11.

(3)  CRPD/C/EU/Q/1.

(4)  OJ C 131 E, 8.5.2013, p. 9.

(5)  OJ L 303, 2.12.2000, p. 16.

(6)  OJ C 33 E, 5.2.2013, p. 1.

(7)  OJ C 153 E, 31.5.2013, p. 165.

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| 27.9.2016 | EN | Official Journal of the European Union | C 353/46 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/46

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P8_TA(2015)0209

Outbreak of Xylella fastidiosa affecting olive trees

European Parliament resolution of 20 May 2015 on the outbreak of Xylella fastidiosa affecting olive trees (2015/2652(RSP))

(2016/C 353/08)

The European Parliament,

| — | having regard to Council Directive 2000/29/EC on protective measures against the introduction into the Community of organisms harmful to plants or plant products and against their spread within the Community (1), |
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having regard to Council Directive 2000/29/EC on protective measures against the introduction into the Community of organisms harmful to plants or plant products and against their spread within the Community (1),

| — | having regard to the scientific opinions of the European Food Safety Authority (EFSA) on the risks to plant health posed by Xylella fastidiosa in the EU territory, with the identification and evaluation of risk reduction options, published on 26 November 2013 and 6 January 2015, |
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having regard to the scientific opinions of the European Food Safety Authority (EFSA) on the risks to plant health posed by Xylella fastidiosa in the EU territory, with the identification and evaluation of risk reduction options, published on 26 November 2013 and 6 January 2015,

| — | having regard to the Commission implementing decisions of 13 February 2014, 23 July 2014 and 28 April 2015 as regards measures to prevent the introduction into, and spread within, the Union of Xylella fastidiosa, |
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having regard to the Commission implementing decisions of 13 February 2014, 23 July 2014 and 28 April 2015 as regards measures to prevent the introduction into, and spread within, the Union of Xylella fastidiosa,

| — | having regard to the reports by the Food and Veterinary Office of audits carried out in February and November 2014, |
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having regard to the reports by the Food and Veterinary Office of audits carried out in February and November 2014,

| — | having regard to the question to the Commission on the outbreak of Xylella fastidiosa affecting olive trees (O-000038/2015 — B8-0117/2015), |
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having regard to the question to the Commission on the outbreak of Xylella fastidiosa affecting olive trees (O-000038/2015 — B8-0117/2015),

| — | having regard to Directive 2009/128/EC establishing a framework for Community action to achieve the sustainable use of pesticide (2), |
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having regard to Directive 2009/128/EC establishing a framework for Community action to achieve the sustainable use of pesticide (2),

| — | having regard to Rules 128(5) and 123(4) of its Rules of Procedure, |
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having regard to Rules 128(5) and 123(4) of its Rules of Procedure,

| A. | whereas Xylella fastidiosa is a highly dangerous immediate threat to the production in southern Europe of certain crops, including olive, almond and peach trees and ornamental plants; whereas, depending on the type of bacterium, it is a potential threat to vineyards, citrus trees and other crops and could lead to unprecedented and devastating losses, with dramatic economic, environmental and social consequences; whereas the strain infecting olive trees in the Apulia region is different from the isolates causing disease in grapevine or citrus in other parts of the world; |
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A.

whereas Xylella fastidiosa is a highly dangerous immediate threat to the production in southern Europe of certain crops, including olive, almond and peach trees and ornamental plants; whereas, depending on the type of bacterium, it is a potential threat to vineyards, citrus trees and other crops and could lead to unprecedented and devastating losses, with dramatic economic, environmental and social consequences; whereas the strain infecting olive trees in the Apulia region is different from the isolates causing disease in grapevine or citrus in other parts of the world;

| B. | whereas the bacterium is already causing severe damage to olive groves in the Apulia region of southern Italy, potentially threatening other crops and regions; |
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B.

whereas the bacterium is already causing severe damage to olive groves in the Apulia region of southern Italy, potentially threatening other crops and regions;

| C. | whereas olive production is one of the Apulia region’s most important agricultural sectors, accounting for 11,6 % (or EUR 522 million) of the total value of agricultural production in the region and 30 % of the value of Italian olive production in 2013; |
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C.

whereas olive production is one of the Apulia region’s most important agricultural sectors, accounting for 11,6 % (or EUR 522 million) of the total value of agricultural production in the region and 30 % of the value of Italian olive production in 2013;

| D. | whereas the presence of Xylella fastidiosa is causing severe economic damage, not only to olive producers but also to the entire chain of production, including cooperative and private mills, tourism and marketing activities; |
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D.

whereas the presence of Xylella fastidiosa is causing severe economic damage, not only to olive producers but also to the entire chain of production, including cooperative and private mills, tourism and marketing activities;

| E. | whereas the first notification of an outbreak of Xylella fastidiosa was made by the Italian authorities on 21 October 2013, since when an alarming number of trees have become infected; |
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E.

whereas the first notification of an outbreak of Xylella fastidiosa was made by the Italian authorities on 21 October 2013, since when an alarming number of trees have become infected;

| F. | whereas the inspections carried out in Italy in February and November 2014 by the Food and Veterinary Office (FVO) of the Commission’s Directorate-General for Health and Food Safety confirm that the situation has dramatically deteriorated and that a further spread of the bacterium cannot be ruled out; |
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F.

whereas the inspections carried out in Italy in February and November 2014 by the Food and Veterinary Office (FVO) of the Commission’s Directorate-General for Health and Food Safety confirm that the situation has dramatically deteriorated and that a further spread of the bacterium cannot be ruled out;

| G. | whereas no treatment is currently available to cure diseased plants in the field, and whereas affected plants tend to remain infected throughout their lives or to collapse quickly; |
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G.

whereas no treatment is currently available to cure diseased plants in the field, and whereas affected plants tend to remain infected throughout their lives or to collapse quickly;

| H. | whereas a large number of different plants could host the disease, including asymptomatic wild plants, in the European Union; |
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H.

whereas a large number of different plants could host the disease, including asymptomatic wild plants, in the European Union;

| I. | whereas EFSA has emphasised that, given the difficulty of stopping the spread of Xylella fastidiosa once it affects a production area, preventive action focused on imports and containment of outbreaks should be prioritised, along with the reinforcement of research sharing; |
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I.

whereas EFSA has emphasised that, given the difficulty of stopping the spread of Xylella fastidiosa once it affects a production area, preventive action focused on imports and containment of outbreaks should be prioritised, along with the reinforcement of research sharing;

| 1. | Notes that the implementing decisions taken before April 2015 by the Commission focused mainly on internal actions to fight the outbreak and did not include strong measures to prevent the entry of the disease into the EU from third countries; |
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1.

Notes that the implementing decisions taken before April 2015 by the Commission focused mainly on internal actions to fight the outbreak and did not include strong measures to prevent the entry of the disease into the EU from third countries;

| 2. | Calls on the Commission to take targeted measures against Xylella fastidiosa in order to prevent the import of infected material into the EU; welcomes the decision taken in April 2015 by the Commission to stop imports of infected coffea plants from Costa Rica and Honduras, and the restrictions adopted in respect of plant imports from affected areas in other third countries; asks for the application, if necessary, of stronger measures, including the authorisation of imports from pest-free production sites only; |
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2.

Calls on the Commission to take targeted measures against Xylella fastidiosa in order to prevent the import of infected material into the EU; welcomes the decision taken in April 2015 by the Commission to stop imports of infected coffea plants from Costa Rica and Honduras, and the restrictions adopted in respect of plant imports from affected areas in other third countries; asks for the application, if necessary, of stronger measures, including the authorisation of imports from pest-free production sites only;

| 3. | Regrets the fact that very often the Commission does not react quickly enough to prevent the entry into the EU of plant diseases from third countries; urges the Commission, therefore, to verify the source of the infection and to review the EU official phytosanitary control system in order to protect and safeguard our territory; |
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3.

Regrets the fact that very often the Commission does not react quickly enough to prevent the entry into the EU of plant diseases from third countries; urges the Commission, therefore, to verify the source of the infection and to review the EU official phytosanitary control system in order to protect and safeguard our territory;

| 4. | Urges the Commission, especially in view of the onset of summer, to take effective measures to avoid the spread of Xylella fastidiosa within the EU, in particular by targeting the crops most at risk, while not neglecting other crops that could also be seriously affected by the disease, and underlines the importance of the provisions of Article 9 of the implementing decision of 2015 in this regard; |
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4.

Urges the Commission, especially in view of the onset of summer, to take effective measures to avoid the spread of Xylella fastidiosa within the EU, in particular by targeting the crops most at risk, while not neglecting other crops that could also be seriously affected by the disease, and underlines the importance of the provisions of Article 9 of the implementing decision of 2015 in this regard;

| 5. | Calls on the Commission and the Member States to compensate producers for eradication measures and loss of revenue — which involves losses in terms not only of agricultural production but also of cultural heritage, history and tourism-related activities; |
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5.

Calls on the Commission and the Member States to compensate producers for eradication measures and loss of revenue — which involves losses in terms not only of agricultural production but also of cultural heritage, history and tourism-related activities;

| 6. | Asks the Commission and the relevant authorities to make use of all possible funds and instruments to assist the economic recovery of the affected areas; calls on the Commission to identify incentives for producers implementing preventive measures; |
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6.

Asks the Commission and the relevant authorities to make use of all possible funds and instruments to assist the economic recovery of the affected areas; calls on the Commission to identify incentives for producers implementing preventive measures;

| 7. | Calls on the Commission to ensure that sufficient financial and human resources are available to implement the relevant strategies, including financial support for farmers to apply appropriate agricultural practices for the management of Xylella fastidiosa and its vectors; urges the Commission to promote intensified research efforts without delay, including through increased international networking and by making funds available for research institutes, with a view to increasing scientific knowledge of Xylella fastidiosa and positively identifying the nature of the link between the pathogen, the symptoms and the development of disease; |
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7.

Calls on the Commission to ensure that sufficient financial and human resources are available to implement the relevant strategies, including financial support for farmers to apply appropriate agricultural practices for the management of Xylella fastidiosa and its vectors; urges the Commission to promote intensified research efforts without delay, including through increased international networking and by making funds available for research institutes, with a view to increasing scientific knowledge of Xylella fastidiosa and positively identifying the nature of the link between the pathogen, the symptoms and the development of disease;

| 8. | Underlines the need to run information campaigns in potentially affected areas of the EU in order to sensitise those involved not only in the agricultural sector but also in the horticultural sector, including retailers of ornamental plants, professional gardeners and their customers; |
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8.

Underlines the need to run information campaigns in potentially affected areas of the EU in order to sensitise those involved not only in the agricultural sector but also in the horticultural sector, including retailers of ornamental plants, professional gardeners and their customers;

| 9. | Considers that, especially in view of the onset of summer, the Commission and the Member States should warn travellers about the risks of introducing infected plants from countries affected by Xylella fastidiosa into the EU; |
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9.

Considers that, especially in view of the onset of summer, the Commission and the Member States should warn travellers about the risks of introducing infected plants from countries affected by Xylella fastidiosa into the EU;

| 10. | Calls for greater means to be made available to ensure the detection of harmful organisms at points of entry into the EU; furthermore, encourages the Member States to increase the number of regular inspections with a view to preventing the spread of Xylella fastidiosa outside the demarcated areas; |
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10.

Calls for greater means to be made available to ensure the detection of harmful organisms at points of entry into the EU; furthermore, encourages the Member States to increase the number of regular inspections with a view to preventing the spread of Xylella fastidiosa outside the demarcated areas;

| 11. | Calls on the Commission to provide an open database, with a list of institutions and competent authorities at EU and Member State level, for the exchange of information and experience, including best practices, as well as for rapid alerting of the competent authorities and the taking of necessary measures; |
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11.

Calls on the Commission to provide an open database, with a list of institutions and competent authorities at EU and Member State level, for the exchange of information and experience, including best practices, as well as for rapid alerting of the competent authorities and the taking of necessary measures;

| 12. | Calls on the Commission to draft, in a transparent manner, comprehensive guidelines for the implementation of preventive and disease control measures, with clear indications of their scope and duration, based on existing experience and best practices, that can be used as a support tool by the competent authorities and services in the Member States; |
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12.

Calls on the Commission to draft, in a transparent manner, comprehensive guidelines for the implementation of preventive and disease control measures, with clear indications of their scope and duration, based on existing experience and best practices, that can be used as a support tool by the competent authorities and services in the Member States;

| 13. | Asks the Commission to report to Parliament annually, or at any time if the situation evolves, on the threat posed to EU producers by Xylella fastidiosa and other organisms that are a danger to agricultural production; |
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13.

Asks the Commission to report to Parliament annually, or at any time if the situation evolves, on the threat posed to EU producers by Xylella fastidiosa and other organisms that are a danger to agricultural production;

| 14. | Instructs its President to forward this resolution to the Council and the Commission. |
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14.

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

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(1)  OJ L 169, 10.7.2000, p. 1.

(2)  OJ L 309, 24.11.2009, p. 71.

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Thursday 21 May 2015

| 27.9.2016 | EN | Official Journal of the European Union | C 353/49 |
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27.9.2016

EN

Official Journal of the European Union

C 353/49

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P8_TA(2015)0210

Zimbabwe, the case of human rights defender Itai Dzamara

European Parliament resolution of 21 May 2015 on Zimbabwe, the case of human rights defender Itai Dzamara (2015/2710(RSP))

(2016/C 353/09)

The European Parliament,

| — | having regard to its previous resolutions on Zimbabwe, notably that of 7 February 2013 (1), |
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having regard to its previous resolutions on Zimbabwe, notably that of 7 February 2013 (1),

| — | having regard to the local EU statements on the abduction of Itai Dzamara of 11 March 2015 and 9 April 2015, |
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having regard to the local EU statements on the abduction of Itai Dzamara of 11 March 2015 and 9 April 2015,

| — | having regard to the declaration by the Vice-President of the Commission/High Representative for Foreign Affairs and Security Policy, on behalf of the EU, of 19 February 2014 on the review of EU-Zimbabwe relations, |
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having regard to the declaration by the Vice-President of the Commission/High Representative for Foreign Affairs and Security Policy, on behalf of the EU, of 19 February 2014 on the review of EU-Zimbabwe relations,

| — | having regard to Council Decisions 2014/98/CFSP of 17 February 2014 (2) and 2015/277/CFSP of 19 February 2015 (3) amending Decision 2011/101/CFSP concerning restrictive measures against Zimbabwe, |
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having regard to Council Decisions 2014/98/CFSP of 17 February 2014 (2) and 2015/277/CFSP of 19 February 2015 (3) amending Decision 2011/101/CFSP concerning restrictive measures against Zimbabwe,

| — | having regard to the statement by the spokesperson for the Office of the High Commissioner for Human Rights (OHCHR) of 18 January 2013 on recent attacks on human rights defenders ahead of elections, |
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having regard to the statement by the spokesperson for the Office of the High Commissioner for Human Rights (OHCHR) of 18 January 2013 on recent attacks on human rights defenders ahead of elections,

| — | having regard to the Global Political Agreement signed in 2008 by the three main political parties, ZANU PF, MDC-T and MDC, |
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having regard to the Global Political Agreement signed in 2008 by the three main political parties, ZANU PF, MDC-T and MDC,

| — | having regard to the Council of the European Union conclusions of 23 July 2012 on Zimbabwe and to Council Implementing Decision 2012/124/CFSP of 27 February 2012 (4) concerning restrictive measures against Zimbabwe, |
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having regard to the Council of the European Union conclusions of 23 July 2012 on Zimbabwe and to Council Implementing Decision 2012/124/CFSP of 27 February 2012 (4) concerning restrictive measures against Zimbabwe,

| — | having regard to the African Charter on Human and Peoples’ Rights of 27 June 1981, which Zimbabwe has ratified, |
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having regard to the African Charter on Human and Peoples’ Rights of 27 June 1981, which Zimbabwe has ratified,

| — | having regard to the Constitution of Zimbabwe, |
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having regard to the Constitution of Zimbabwe,

| — | having regard to the Cotonou Agreement, |
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having regard to the Cotonou Agreement,

| — | having regard to Rules 135(5) and 123(4) of its Rules of Procedure, |
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having regard to Rules 135(5) and 123(4) of its Rules of Procedure,

| A. | whereas on 9 March 2015 Itai Dzamara, a prominent Zimbabwean human rights activist, leader of the Occupy Africa Unity Square movement and dissident of President Mugabe, was reportedly abducted by five unidentified armed men in the suburbs of Harare; whereas his whereabouts remain unknown and there is serious concern for his safety and the protection of his rights; |
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A.

whereas on 9 March 2015 Itai Dzamara, a prominent Zimbabwean human rights activist, leader of the Occupy Africa Unity Square movement and dissident of President Mugabe, was reportedly abducted by five unidentified armed men in the suburbs of Harare; whereas his whereabouts remain unknown and there is serious concern for his safety and the protection of his rights;

| B. | whereas in the months prior to his abduction, Mr Dzamara had led a number of peaceful protests against the deteriorating political and economic situation in Zimbabwe; whereas two days before, Mr Dzamara addressed a political rally organised by the opposition party Movement for Democratic Change — Tsvangirai (MDC-T), calling for mass protests against the worsening repression and economic situation in the country, petitioning President Mugabe to resign and calling for reforms to the electoral system; |
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B.

whereas in the months prior to his abduction, Mr Dzamara had led a number of peaceful protests against the deteriorating political and economic situation in Zimbabwe; whereas two days before, Mr Dzamara addressed a political rally organised by the opposition party Movement for Democratic Change — Tsvangirai (MDC-T), calling for mass protests against the worsening repression and economic situation in the country, petitioning President Mugabe to resign and calling for reforms to the electoral system;

| C. | whereas until now the government has remained silent on Mr Dzamara’s disappearance, which has raised suspicion among the public that the state might be responsible; whereas the ruling party ZANU-PF is denying his forced disappearance and denounces it as an act staged by opposition parties; |
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C.

whereas until now the government has remained silent on Mr Dzamara’s disappearance, which has raised suspicion among the public that the state might be responsible; whereas the ruling party ZANU-PF is denying his forced disappearance and denounces it as an act staged by opposition parties;

| D. | whereas a High Court judgment of 13 March 2015 ordered the Zimbabwean authorities to mount a search for Mr Dzamara and report progress to the court every two weeks until his whereabouts are determined; whereas this High Court order has been ignored by the authorities responsible for acting upon it, and the state authorities have yet to comply with this ruling; |
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D.

whereas a High Court judgment of 13 March 2015 ordered the Zimbabwean authorities to mount a search for Mr Dzamara and report progress to the court every two weeks until his whereabouts are determined; whereas this High Court order has been ignored by the authorities responsible for acting upon it, and the state authorities have yet to comply with this ruling;

| E. | whereas Mr Dzamara had been assaulted on several occasions by supporters of the ruling party ZANU-PF and uniformed police officers; whereas in November 2014 about 20 uniformed police handcuffed and beat Mr Dzamara to unconsciousness, also assaulting his lawyer, Kennedy Masiye; |
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E.

whereas Mr Dzamara had been assaulted on several occasions by supporters of the ruling party ZANU-PF and uniformed police officers; whereas in November 2014 about 20 uniformed police handcuffed and beat Mr Dzamara to unconsciousness, also assaulting his lawyer, Kennedy Masiye;

| F. | whereas 11 people were detained in Harare on 27 April 2015 after taking part in a procession in support of the missing Itai Dzamara; whereas the activists were arrested and held for six hours; |
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F.

whereas 11 people were detained in Harare on 27 April 2015 after taking part in a procession in support of the missing Itai Dzamara; whereas the activists were arrested and held for six hours;

| G. | whereas after the abduction his wife, Sheffra Dzamara, petitioned the High Court in Harare to force the police and the Central Intelligence Organisation (CIO) to search for her husband; whereas during the hearing the police and CIO denied any knowledge of Dzamara’s whereabouts; whereas Sheffra Dzamara reported in early April that unidentified men were keeping her under constant surveillance and that she feared for her life; |
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G.

whereas after the abduction his wife, Sheffra Dzamara, petitioned the High Court in Harare to force the police and the Central Intelligence Organisation (CIO) to search for her husband; whereas during the hearing the police and CIO denied any knowledge of Dzamara’s whereabouts; whereas Sheffra Dzamara reported in early April that unidentified men were keeping her under constant surveillance and that she feared for her life;

| H. | whereas the current situation in Zimbabwe as regards human rights and democracy is worsening and harassment and human rights abuses against human rights defenders, journalists and members of civil society in Zimbabwe are continuously reported; |
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H.

whereas the current situation in Zimbabwe as regards human rights and democracy is worsening and harassment and human rights abuses against human rights defenders, journalists and members of civil society in Zimbabwe are continuously reported;

| I. | whereas the police often misuse existing laws, such as the Public Order and Security Act (POSA) and the Access to Information and Protection of Privacy Act (AIPPA), to ban lawful public meetings and gatherings; |
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I.

whereas the police often misuse existing laws, such as the Public Order and Security Act (POSA) and the Access to Information and Protection of Privacy Act (AIPPA), to ban lawful public meetings and gatherings;

| J. | whereas freedom of assembly, association and expression are essential components of any democracy; |
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J.

whereas freedom of assembly, association and expression are essential components of any democracy;

| K. | whereas in February 2015 the EU resumed its aid to Zimbabwe, in the form of a EUR 234 million National Indicative Programme aimed at helping Zimbabwe become a more democratic and prosperous country, while the European Council has decided to uphold some of the sanctions against Zimbabwe; whereas only President Robert Mugabe, his wife and one defence company remain subject to the asset freeze and travel ban; whereas an EU arms embargo also remains in effect; |
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K.

whereas in February 2015 the EU resumed its aid to Zimbabwe, in the form of a EUR 234 million National Indicative Programme aimed at helping Zimbabwe become a more democratic and prosperous country, while the European Council has decided to uphold some of the sanctions against Zimbabwe; whereas only President Robert Mugabe, his wife and one defence company remain subject to the asset freeze and travel ban; whereas an EU arms embargo also remains in effect;

| L. | whereas on 16 March 2013 a new constitution was adopted by referendum, with the stated aim of cleaning up politics, but in practice progress is slow and the human rights situation remains vulnerable; |
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L.

whereas on 16 March 2013 a new constitution was adopted by referendum, with the stated aim of cleaning up politics, but in practice progress is slow and the human rights situation remains vulnerable;

| 1. | Strongly condemns the forced disappearance of human rights defender Itai Dzamara and calls for his immediate and unconditional release; |
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1.

Strongly condemns the forced disappearance of human rights defender Itai Dzamara and calls for his immediate and unconditional release;

| 2. | Urges the Government of Zimbabwe to take all necessary measures to find Mr Dzamara and bring all those responsible to justice; calls on the government to fully comply with the High Court order directing them to search for Mr Dzamara; |
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2.

Urges the Government of Zimbabwe to take all necessary measures to find Mr Dzamara and bring all those responsible to justice; calls on the government to fully comply with the High Court order directing them to search for Mr Dzamara;

| 3. | Calls on the Zimbabwean authorities to ensure the safety and security of his wife and family, and his colleagues and supporters; |
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3.

Calls on the Zimbabwean authorities to ensure the safety and security of his wife and family, and his colleagues and supporters;

| 4. | Is deeply concerned at reports by human rights organisations of increasing political violence and harassment of political opposition, and at the severe restrictions and intimidation faced by human rights defenders, who are often beaten by the police and arrested on false charges; regrets that, since the last elections and the adoption of the new constitution in 2013, little progress has been made with regard to the rule of law and in particular towards reforming the human rights environment; |
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4.

Is deeply concerned at reports by human rights organisations of increasing political violence and harassment of political opposition, and at the severe restrictions and intimidation faced by human rights defenders, who are often beaten by the police and arrested on false charges; regrets that, since the last elections and the adoption of the new constitution in 2013, little progress has been made with regard to the rule of law and in particular towards reforming the human rights environment;

| 5. | Urges the Zimbabwean authorities to investigate allegations of excessive use of force and other human rights abuses by police and state officials, and to hold them to account; |
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5.

Urges the Zimbabwean authorities to investigate allegations of excessive use of force and other human rights abuses by police and state officials, and to hold them to account;

| 6. | Recalls the overall responsibility of the Zimbabwean Government for ensuring the safety of all its citizens; calls upon the authorities of Zimbabwe to implement the provisions of the Universal Declaration of Human Rights, the African Charter on Human and Peoples’ Rights and regional human rights instruments ratified by Zimbabwe; |
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6.

Recalls the overall responsibility of the Zimbabwean Government for ensuring the safety of all its citizens; calls upon the authorities of Zimbabwe to implement the provisions of the Universal Declaration of Human Rights, the African Charter on Human and Peoples’ Rights and regional human rights instruments ratified by Zimbabwe;

| 7. | Recalls that under the Global Political Agreement (GPA) Zimbabwe committed to ensuring that both its legislation and its procedures and practices are in accordance with international human rights principles and laws, including freedom of assembly, association and expression; |
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7.

Recalls that under the Global Political Agreement (GPA) Zimbabwe committed to ensuring that both its legislation and its procedures and practices are in accordance with international human rights principles and laws, including freedom of assembly, association and expression;

| 8. | Acknowledges the establishment of the Zimbabwean Human Rights Commission, but is concerned that it has not been given any significant capacity with which to act independently and fulfil its objectives as regards the pressing human rights issues facing the country; |
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8.

Acknowledges the establishment of the Zimbabwean Human Rights Commission, but is concerned that it has not been given any significant capacity with which to act independently and fulfil its objectives as regards the pressing human rights issues facing the country;

| 9. | Calls therefore for concerted action by the international community, in particular the Southern African Development Community (SADC); considers that this regional organisation has an important role to play as guarantor to the GPA, insisting inter alia on the implementation of the agreement and in particular Article 13 thereof, so as to ensure non-partisan action by the police and other security forces; |
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9.

Calls therefore for concerted action by the international community, in particular the Southern African Development Community (SADC); considers that this regional organisation has an important role to play as guarantor to the GPA, insisting inter alia on the implementation of the agreement and in particular Article 13 thereof, so as to ensure non-partisan action by the police and other security forces;

| 10. | Urges the Zimbabwean Government and President Mugabe to comply with their international obligations and the provisions of the international treaties that have been signed by Zimbabwe and that guarantee respect for the rule of law and the fulfilment of civil and political rights; |
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10.

Urges the Zimbabwean Government and President Mugabe to comply with their international obligations and the provisions of the international treaties that have been signed by Zimbabwe and that guarantee respect for the rule of law and the fulfilment of civil and political rights;

| 11. | Asks the EU to step up its political dialogue on human rights on the basis of Article 8 of the Cotonou Agreement, and notably to encourage the government to repeal or appropriately amend the Public Order and Security Act and the Access to Information and Protection of Privacy Act, in order to bring an end to their abuse; |
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11.

Asks the EU to step up its political dialogue on human rights on the basis of Article 8 of the Cotonou Agreement, and notably to encourage the government to repeal or appropriately amend the Public Order and Security Act and the Access to Information and Protection of Privacy Act, in order to bring an end to their abuse;

| 12. | Deplores the absence of a strong and enforceable human rights clause in the interim Economic Partnership Agreement (EPA) concluded with four Eastern and Southern African (ESA) states, including Zimbabwe; |
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12.

Deplores the absence of a strong and enforceable human rights clause in the interim Economic Partnership Agreement (EPA) concluded with four Eastern and Southern African (ESA) states, including Zimbabwe;

| 13. | Notes the lifting of sanctions decided by the EU and supports the targeted measures that currently remain in place against the President and his wife, as well as the arms embargo, which are a response to the political and human rights situation in Zimbabwe; |
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13.

Notes the lifting of sanctions decided by the EU and supports the targeted measures that currently remain in place against the President and his wife, as well as the arms embargo, which are a response to the political and human rights situation in Zimbabwe;

| 14. | Believes that the promotion of democracy and the protection of human rights and the rule of law are essential if Zimbabwe is to become a free and prosperous country; |
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14.

Believes that the promotion of democracy and the protection of human rights and the rule of law are essential if Zimbabwe is to become a free and prosperous country;

| 15. | Calls on the EU delegation in Harare to continue to offer its assistance to Zimbabwe in order to improve the human rights situation; insists that the EU must ensure that the development funding to Zimbabwe effectively addresses the needs of the population, notably through civil society organisations, and that political and economic reforms financed by it are implemented; |
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15.

Calls on the EU delegation in Harare to continue to offer its assistance to Zimbabwe in order to improve the human rights situation; insists that the EU must ensure that the development funding to Zimbabwe effectively addresses the needs of the population, notably through civil society organisations, and that political and economic reforms financed by it are implemented;

| 16. | Instructs its President to forward this resolution to the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, the Council, the Commission, the governments and the parliaments of the Member States, the EEAS, the Government and Parliament of Zimbabwe, the governments of the South African Development Community, the African Union Commission, the Pan-African Parliament, the ACP-EU Joint Parliamentary Assembly and the Secretary-General of the Commonwealth. |
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16.

Instructs its President to forward this resolution to the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, the Council, the Commission, the governments and the parliaments of the Member States, the EEAS, the Government and Parliament of Zimbabwe, the governments of the South African Development Community, the African Union Commission, the Pan-African Parliament, the ACP-EU Joint Parliamentary Assembly and the Secretary-General of the Commonwealth.

---

(1)  Texts adopted, P7_TA(2013)0059.

(2)  OJ L 50, 20.2.2014, p. 20.

(3)  OJ L 47, 20.2.2015, p. 20.

(4)  OJ L 54, 28.2.2012, p. 20.

---

| 27.9.2016 | EN | Official Journal of the European Union | C 353/52 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/52

---

P8_TA(2015)0211

The plight of Rohingya refugees, including mass graves in Thailand

European Parliament resolution of 21 May 2015 on the plight of Rohingya refugees, including the mass graves in Thailand (2015/2711(RSP))

(2016/C 353/10)

The European Parliament,

| — | having regard to its previous resolutions on Burma/Myanmar and the Rohingya, in particular those of 20 April 2012 (1), 13 September 2012 (2), 22 November 2012 (3) and 13 June 2013 (4), and to its resolution of 23 May 2013 on reinstatement of Myanmar/Burma’s access to generalised tariff preferences (5), |
| --- | --- |

—

having regard to its previous resolutions on Burma/Myanmar and the Rohingya, in particular those of 20 April 2012 (1), 13 September 2012 (2), 22 November 2012 (3) and 13 June 2013 (4), and to its resolution of 23 May 2013 on reinstatement of Myanmar/Burma’s access to generalised tariff preferences (5),

| — | having regard to its resolution of 5 February 2009 on the situation of Burmese refugees in Thailand (6), |
| --- | --- |

—

having regard to its resolution of 5 February 2009 on the situation of Burmese refugees in Thailand (6),

| — | having regard to the statement by the UN Refugee Agency (UNHCR) of 6 May 2015 concerning Rohingya mass graves in Thailand, |
| --- | --- |

—

having regard to the statement by the UN Refugee Agency (UNHCR) of 6 May 2015 concerning Rohingya mass graves in Thailand,

| — | having regard to the Universal Declaration of Human Rights of 10 December 1948, |
| --- | --- |

—

having regard to the Universal Declaration of Human Rights of 10 December 1948,

| — | 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 1951 UN Convention on the Status of Refugees and the 1967 Protocol thereto, |
| --- | --- |

—

having regard to the 1951 UN Convention on the Status of Refugees and the 1967 Protocol thereto,

| — | having regard to the Association of Southeast Asian Nations Human Rights Declaration, notably paragraphs 13, 15, 16 and 18 thereof, |
| --- | --- |

—

having regard to the Association of Southeast Asian Nations Human Rights Declaration, notably paragraphs 13, 15, 16 and 18 thereof,

| — | having regard to the UNHCR appeal of 15 May 2015 to regional governments to conduct search-and-rescue operations, in which it warned of ‘a potential humanitarian disaster’, |
| --- | --- |

—

having regard to the UNHCR appeal of 15 May 2015 to regional governments to conduct search-and-rescue operations, in which it warned of ‘a potential humanitarian disaster’,

| — | having regard to Rules 135(5) and 123(4) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 135(5) and 123(4) of its Rules of Procedure,

| A. | whereas in an escalating region-wide crisis, it is estimated that thousands of Rohingya and other refugees are still on boats in the Andaman Sea and the Strait of Malacca, some abandoned by their traffickers with little food or water, and are being pushed back into the sea when their boats enter territorial waters; |
| --- | --- |

A.

whereas in an escalating region-wide crisis, it is estimated that thousands of Rohingya and other refugees are still on boats in the Andaman Sea and the Strait of Malacca, some abandoned by their traffickers with little food or water, and are being pushed back into the sea when their boats enter territorial waters;

| B. | whereas on 1 and 4 May 2015 the military police discovered the bodies of at least 30 ethnic Rohingya Muslims in a suspected human trafficking camp in the Sadao district of Songkhla Province, close to the Thai-Malaysian border; whereas another camp with at least five other graves was found some days later; |
| --- | --- |

B.

whereas on 1 and 4 May 2015 the military police discovered the bodies of at least 30 ethnic Rohingya Muslims in a suspected human trafficking camp in the Sadao district of Songkhla Province, close to the Thai-Malaysian border; whereas another camp with at least five other graves was found some days later;

| C. | whereas Rohingyas continue to suffer from persecution and discrimination and to be arbitrarily deprived of their citizenship in Burma/Myanmar, and therefore remain stateless; whereas on 1 April 2015 the Burmese Government rescinded their temporary identity cards, stripping them of voting rights; whereas impunity continues to prevail in cases of crimes and atrocities against them; |
| --- | --- |

C.

whereas Rohingyas continue to suffer from persecution and discrimination and to be arbitrarily deprived of their citizenship in Burma/Myanmar, and therefore remain stateless; whereas on 1 April 2015 the Burmese Government rescinded their temporary identity cards, stripping them of voting rights; whereas impunity continues to prevail in cases of crimes and atrocities against them;

| D. | whereas the Rohingya have been leaving Burma/Myanmar in large numbers since an outbreak of violence in 2012 left neighbourhoods razed and claimed hundreds of lives; whereas many of those who escaped fell into the hands of trafficking gangs that operate within the Bay of Bengal; |
| --- | --- |

D.

whereas the Rohingya have been leaving Burma/Myanmar in large numbers since an outbreak of violence in 2012 left neighbourhoods razed and claimed hundreds of lives; whereas many of those who escaped fell into the hands of trafficking gangs that operate within the Bay of Bengal;

| E. | whereas according to the UNHCR periodic report of 8 May 2015, some 25 000 Rohingyas and Bangladeshis boarded smugglers’ boats between January and March 2015; whereas this is almost double the number of people who did so over the same period in 2014; |
| --- | --- |

E.

whereas according to the UNHCR periodic report of 8 May 2015, some 25 000 Rohingyas and Bangladeshis boarded smugglers’ boats between January and March 2015; whereas this is almost double the number of people who did so over the same period in 2014;

| F. | whereas several thousand Rohingyas have fled by sea to escape persecution, and whereas hundreds have lost their lives in sinking boats or by being pushed back into the sea; |
| --- | --- |

F.

whereas several thousand Rohingyas have fled by sea to escape persecution, and whereas hundreds have lost their lives in sinking boats or by being pushed back into the sea;

| G. | whereas since the crackdown the human traffickers have turned to sea routes; whereas there are an increasing number of cases of migrants being abandoned at sea by their traffickers; |
| --- | --- |

G.

whereas since the crackdown the human traffickers have turned to sea routes; whereas there are an increasing number of cases of migrants being abandoned at sea by their traffickers;

| H. | whereas thousands of Rohingya people and other migrants continue to be smuggled through Thailand and from other countries in the region by human traffickers, in some cases including corrupt local Thai authorities, and to be held captive in inhuman conditions in jungle camps in southern Thailand, where they are tortured, starved and beaten to death by their captors to extort ransoms from their families and relatives, or sold into human slavery; |
| --- | --- |

H.

whereas thousands of Rohingya people and other migrants continue to be smuggled through Thailand and from other countries in the region by human traffickers, in some cases including corrupt local Thai authorities, and to be held captive in inhuman conditions in jungle camps in southern Thailand, where they are tortured, starved and beaten to death by their captors to extort ransoms from their families and relatives, or sold into human slavery;

| I. | whereas the UNHCR has called for a joint response in the wake of the Rohingya mass graves in Thailand, urging countries in the region to strengthen cooperation on counter-smuggling and counter-trafficking measures while ensuring the protection of victims; |
| --- | --- |

I.

whereas the UNHCR has called for a joint response in the wake of the Rohingya mass graves in Thailand, urging countries in the region to strengthen cooperation on counter-smuggling and counter-trafficking measures while ensuring the protection of victims;

| J. | whereas the Rohingya issue was not discussed during the recent 26th ASEAN Summit, held from 26 to 28 April 2015 in Malaysia; |
| --- | --- |

J.

whereas the Rohingya issue was not discussed during the recent 26th ASEAN Summit, held from 26 to 28 April 2015 in Malaysia;

| K. | whereas from 2010 to 2015 the Commission’s Directorate-General for Humanitarian Aid and Civil Protection (ECHO) provided some EUR 57,3 million in humanitarian aid to vulnerable people in Rakhine State; whereas in 2015 ECHO is funding projects throughout Rakhine State to address some of the most urgent needs among the Rohingya in the northern townships, including food and nutrition, basic health services and the supply of other basic household items, and to support the population displaced since 2012; |
| --- | --- |

K.

whereas from 2010 to 2015 the Commission’s Directorate-General for Humanitarian Aid and Civil Protection (ECHO) provided some EUR 57,3 million in humanitarian aid to vulnerable people in Rakhine State; whereas in 2015 ECHO is funding projects throughout Rakhine State to address some of the most urgent needs among the Rohingya in the northern townships, including food and nutrition, basic health services and the supply of other basic household items, and to support the population displaced since 2012;

| L. | whereas ECHO has allocated EUR 325 000 to the International Organisation for Migration (IOM) since 2013 to provide food, basic household items, health care and protection to some 3 000 Rohingya men, women and children detained in Thailand; |
| --- | --- |

L.

whereas ECHO has allocated EUR 325 000 to the International Organisation for Migration (IOM) since 2013 to provide food, basic household items, health care and protection to some 3 000 Rohingya men, women and children detained in Thailand;

| 1. | Expresses its deepest concern over the plight of Rohingya refugees and the humanitarian crisis taking place at the moment on the high seas and in the territorial waters between Myanmar, Bangladesh, Thailand and Indonesia, and is shocked by the findings following the recent exhumation of dozens of bodies from mass gravesites near human trafficking camps in southern Thailand; extends its condolences to the families of the victims; |
| --- | --- |

1.

Expresses its deepest concern over the plight of Rohingya refugees and the humanitarian crisis taking place at the moment on the high seas and in the territorial waters between Myanmar, Bangladesh, Thailand and Indonesia, and is shocked by the findings following the recent exhumation of dozens of bodies from mass gravesites near human trafficking camps in southern Thailand; extends its condolences to the families of the victims;

| 2. | Calls on the Thai authorities to hold immediate, full and credible criminal investigations into the mass graves of Rohingya Muslims and, if necessary with UN assistance, to ensure that those responsible are brought to justice; |
| --- | --- |

2.

Calls on the Thai authorities to hold immediate, full and credible criminal investigations into the mass graves of Rohingya Muslims and, if necessary with UN assistance, to ensure that those responsible are brought to justice;

| 3. | Welcomes the acknowledgement by the Government of Thailand of the problem of human trafficking in Thailand and the region, and of the complicity of certain corrupt authorities in smuggling humans; calls on the Government of Thailand and its officials to end any complicity with the criminal gangs trafficking Rohingya people and other migrants in Thailand; |
| --- | --- |

3.

Welcomes the acknowledgement by the Government of Thailand of the problem of human trafficking in Thailand and the region, and of the complicity of certain corrupt authorities in smuggling humans; calls on the Government of Thailand and its officials to end any complicity with the criminal gangs trafficking Rohingya people and other migrants in Thailand;

| 4. | Calls on all countries in the region to strengthen cooperation on counter-smuggling and counter-trafficking measures while ensuring the protection of victims; underlines the important role ASEAN can play in this regard; encourages the governments of states in the region to participate in the upcoming regional meeting on the migrant situation, which will be hosted by Thailand on 29 May 2015 in Bangkok; welcomes the drafting of the ASEAN Convention Against Trafficking in Persons, Especially Women and Children (ACTIP), which should be endorsed by ASEAN leaders in the course of 2015; |
| --- | --- |

4.

Calls on all countries in the region to strengthen cooperation on counter-smuggling and counter-trafficking measures while ensuring the protection of victims; underlines the important role ASEAN can play in this regard; encourages the governments of states in the region to participate in the upcoming regional meeting on the migrant situation, which will be hosted by Thailand on 29 May 2015 in Bangkok; welcomes the drafting of the ASEAN Convention Against Trafficking in Persons, Especially Women and Children (ACTIP), which should be endorsed by ASEAN leaders in the course of 2015;

| 5. | Calls on all countries in the region to sign and ratify the UN Convention on the Status of Refugees and to provide Rohingya asylum seekers at least with temporary protection, while supporting the Burmese Government in finding long-term, equitable solutions to the underlying causes; |
| --- | --- |

5.

Calls on all countries in the region to sign and ratify the UN Convention on the Status of Refugees and to provide Rohingya asylum seekers at least with temporary protection, while supporting the Burmese Government in finding long-term, equitable solutions to the underlying causes;

| 6. | Further calls on the Government of Burma/Myanmar to change its policy and take all necessary measures to end persecution of, and discrimination against, the Rohingya minority; reiterates its earlier calls for the amendment or repeal of the 1982 Citizenship Law in order to give Rohingyas equal access to Burmese citizenship; |
| --- | --- |

6.

Further calls on the Government of Burma/Myanmar to change its policy and take all necessary measures to end persecution of, and discrimination against, the Rohingya minority; reiterates its earlier calls for the amendment or repeal of the 1982 Citizenship Law in order to give Rohingyas equal access to Burmese citizenship;

| 7. | Welcomes the long overdue statement of 18 May 2015 by the spokesperson for Aung San Suu Kyi’s opposition party, the National League for Democracy (NLD), that the Government of Burma/Myanmar should grant citizenship to the Rohingya minority; |
| --- | --- |

7.

Welcomes the long overdue statement of 18 May 2015 by the spokesperson for Aung San Suu Kyi’s opposition party, the National League for Democracy (NLD), that the Government of Burma/Myanmar should grant citizenship to the Rohingya minority;

| 8. | Urges the leaders of Indonesia, Malaysia and Thailand to make saving the lives of migrants and refugees stranded on vessels in the Bay of Bengal and the Andaman Sea a top priority, and welcomes the declaration by Malaysia and Indonesia of 20 May 2015 that they will give temporary sanctuary to migrants found at sea; |
| --- | --- |

8.

Urges the leaders of Indonesia, Malaysia and Thailand to make saving the lives of migrants and refugees stranded on vessels in the Bay of Bengal and the Andaman Sea a top priority, and welcomes the declaration by Malaysia and Indonesia of 20 May 2015 that they will give temporary sanctuary to migrants found at sea;

| 9. | Welcomes the aid provided by the European Union and international organisations such as the UNHCR to the Rohingya in Myanmar/Burma and Thailand, and the EU humanitarian assistance provided to internally displaced persons (IDPs) in Arakan/Rakhine State, to undocumented Rohingya and vulnerable host populations in Bangladesh and to Rohingya and Bangladeshi migrants currently being held in immigration detention centres (men) or social welfare centres (women and children) in Thailand; |
| --- | --- |

9.

Welcomes the aid provided by the European Union and international organisations such as the UNHCR to the Rohingya in Myanmar/Burma and Thailand, and the EU humanitarian assistance provided to internally displaced persons (IDPs) in Arakan/Rakhine State, to undocumented Rohingya and vulnerable host populations in Bangladesh and to Rohingya and Bangladeshi migrants currently being held in immigration detention centres (men) or social welfare centres (women and children) in Thailand;

| 10. | Calls on the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy to address this issue at the highest possible political level in her contacts with Thailand and Burma/Myanmar and with other ASEAN member countries; |
| --- | --- |

10.

Calls on the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy to address this issue at the highest possible political level in her contacts with Thailand and Burma/Myanmar and with other ASEAN member countries;

| 11. | 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 governments and parliaments of the Member States, the Government and Parliament of Burma/Myanmar, the Government and Parliament of Thailand, the Secretary-General of the Association of Southeast Asian Nations (ASEAN), the ASEAN Intergovernmental Commission on Human Rights, the UN Special Representative for Human Rights in Myanmar, the UN High Commissioner for Refugees, the UN Human Rights Council and the governments and parliaments of other states in the region. |
| --- | --- |

11.

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 governments and parliaments of the Member States, the Government and Parliament of Burma/Myanmar, the Government and Parliament of Thailand, the Secretary-General of the Association of Southeast Asian Nations (ASEAN), the ASEAN Intergovernmental Commission on Human Rights, the UN Special Representative for Human Rights in Myanmar, the UN High Commissioner for Refugees, the UN Human Rights Council and the governments and parliaments of other states in the region.

---

(1)  OJ C 258 E, 7.9.2013, p. 79.

(2)  OJ C 353 E, 3.12.2013, p. 145.

(3)  Texts adopted, P7_TA(2012)0464.

(4)  Texts adopted, P7_TA(2013)0286.

(5)  Texts adopted, P7_TA(2013)0228.

(6)  OJ C 67 E, 18.3.2010, p. 144.

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| 27.9.2016 | EN | Official Journal of the European Union | C 353/55 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/55

---

P8_TA(2015)0212

Swaziland, the case of human rights activists Thulani Maseko and Bheki Makhubu

European Parliament resolution of 21 May 2015 on Swaziland, the case of human rights activists Thulani Maseko and Bheki Makhubu (2015/2712(RSP))

(2016/C 353/11)

The European Parliament,

| — | having regard to the Cotonou Agreement, |
| --- | --- |

—

having regard to the Cotonou Agreement,

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

—

having regard to the Universal Declaration of Human Rights,

| — | having regard to the International Covenant on Civil and Political Rights, |
| --- | --- |

—

having regard to the International Covenant on Civil and Political Rights,

| — | 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 Swaziland Industrial Relations Act, 2000 (amended), |
| --- | --- |

—

having regard to the Swaziland Industrial Relations Act, 2000 (amended),

| — | having regard to the International Labour Organisation (ILO) Decent Work Country Programme for Swaziland, |
| --- | --- |

—

having regard to the International Labour Organisation (ILO) Decent Work Country Programme for Swaziland,

| — | having regard to the Universal Periodic Review (UPR) of Swaziland before the UN Human Rights Council, held on 4 October 2011, |
| --- | --- |

—

having regard to the Universal Periodic Review (UPR) of Swaziland before the UN Human Rights Council, held on 4 October 2011,

| — | having regard to the EU’s Generalised System of Preferences (GSP), as approved by Parliament on 31 October 2012, |
| --- | --- |

—

having regard to the EU’s Generalised System of Preferences (GSP), as approved by Parliament on 31 October 2012,

| — | having regard to the EU statement made at the 103rd session of the International Labour Conference in Geneva on 6 June 2014, |
| --- | --- |

—

having regard to the EU statement made at the 103rd session of the International Labour Conference in Geneva on 6 June 2014,

| — | having regard to the statement made by the Spokesperson for the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy on 30 July 2014 on the sentencing of The Nation magazine editor Bheki Makhubu and human rights lawyer Thulani Maseko, |
| --- | --- |

—

having regard to the statement made by the Spokesperson for the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy on 30 July 2014 on the sentencing of The Nation magazine editor Bheki Makhubu and human rights lawyer Thulani Maseko,

| — | having regard to African Commission on Human and Peoples’ Rights (ACHPR) resolution 286 on freedom of expression in the Kingdom of Swaziland, |
| --- | --- |

—

having regard to African Commission on Human and Peoples’ Rights (ACHPR) resolution 286 on freedom of expression in the Kingdom of Swaziland,

| — | having regard to the Local EU Statement of 1 April 2014 on the recent arrest and continued detention of The Nation magazine editor Bheki Makhubu and human rights lawyer Thulani Maseko, |
| --- | --- |

—

having regard to the Local EU Statement of 1 April 2014 on the recent arrest and continued detention of The Nation magazine editor Bheki Makhubu and human rights lawyer Thulani Maseko,

| — | having regard to the press release issued on 28 March 2014 by the ACHPR Special Rapporteur on Freedom of Expression and Access to Information in Africa on the arrest of Mr Thulani Rudolf Maseko and Mr Bheki Makhubu, |
| --- | --- |

—

having regard to the press release issued on 28 March 2014 by the ACHPR Special Rapporteur on Freedom of Expression and Access to Information in Africa on the arrest of Mr Thulani Rudolf Maseko and Mr Bheki Makhubu,

| — | having regard to Rules 135(5) and 123(4) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 135(5) and 123(4) of its Rules of Procedure,

| A. | whereas Swaziland is an absolute monarchy under King Mswati III, who instituted a state of emergency in 1973 which is still in place 41 years later, who exercises absolute authority over the cabinet, the parliament and the judiciary, and under whose rule there has been a significant deterioration in the human rights situation and living standards and a rise in chronic poverty, while respect for the rule of law has diminished, as evidenced in particular by the outlawing of political parties; whereas violations of the fundamental rights of workers have become systemic and whereas, over the past decade, the Swazi Government has infringed trade union and human rights and failed to respect interventions by the ILO on the application of its Convention 87; |
| --- | --- |

A.

whereas Swaziland is an absolute monarchy under King Mswati III, who instituted a state of emergency in 1973 which is still in place 41 years later, who exercises absolute authority over the cabinet, the parliament and the judiciary, and under whose rule there has been a significant deterioration in the human rights situation and living standards and a rise in chronic poverty, while respect for the rule of law has diminished, as evidenced in particular by the outlawing of political parties; whereas violations of the fundamental rights of workers have become systemic and whereas, over the past decade, the Swazi Government has infringed trade union and human rights and failed to respect interventions by the ILO on the application of its Convention 87;

| B. | whereas Thulani Maseko, a lawyer working for the Trade Union Congress of Swaziland, was arrested on 17 March 2014 after writing an article criticising the lack of independence of the judicial system in Swaziland; whereas, on 19 March 2015, following the publication of a prison letter denouncing his conditions of detention, he was brought before a disciplinary committee in prison without the presence of a lawyer and was then forcefully moved to solitary confinement; whereas, although he has challenged this decision, no date has yet been announced for his High Court hearing; |
| --- | --- |

B.

whereas Thulani Maseko, a lawyer working for the Trade Union Congress of Swaziland, was arrested on 17 March 2014 after writing an article criticising the lack of independence of the judicial system in Swaziland; whereas, on 19 March 2015, following the publication of a prison letter denouncing his conditions of detention, he was brought before a disciplinary committee in prison without the presence of a lawyer and was then forcefully moved to solitary confinement; whereas, although he has challenged this decision, no date has yet been announced for his High Court hearing;

| C. | whereas Bheki Makhubu, a columnist and editor-in-chief of The Nation, considered to be the country’s sole independent newspaper, was arrested on charges of ‘scandalising the judiciary’ and ‘contempt of court’ following the publication of the article criticising the judicial system; |
| --- | --- |

C.

whereas Bheki Makhubu, a columnist and editor-in-chief of The Nation, considered to be the country’s sole independent newspaper, was arrested on charges of ‘scandalising the judiciary’ and ‘contempt of court’ following the publication of the article criticising the judicial system;

| D. | whereas, on 17 July 2014, Thulani Maseko and Bheki Makhubu were convicted for contempt of court by the High Court of Swaziland and sentenced to two years’ imprisonment, a ruling which seems disproportionate compared with the usual sentence — 30 days’ imprisonment with the option of paying a fine — imposed in similar cases; whereas the judge presiding the trial, Mpendulo Simelane, had been named in one of the articles published by Mr Maseko’s newspaper, and whereas this represents a clear conflict of interest and an impediment to a fair trial; |
| --- | --- |

D.

whereas, on 17 July 2014, Thulani Maseko and Bheki Makhubu were convicted for contempt of court by the High Court of Swaziland and sentenced to two years’ imprisonment, a ruling which seems disproportionate compared with the usual sentence — 30 days’ imprisonment with the option of paying a fine — imposed in similar cases; whereas the judge presiding the trial, Mpendulo Simelane, had been named in one of the articles published by Mr Maseko’s newspaper, and whereas this represents a clear conflict of interest and an impediment to a fair trial;

| E. | whereas the judicial harassment of critical voices in Swaziland is not limited to the case of Mr Maseko and Mr Makhubu, but is part of a disturbing trend of curtailing freedom of expression in the country, where 32 laws place restrictions on freedom of expression and access to information and political parties have been banned since 1973; |
| --- | --- |

E.

whereas the judicial harassment of critical voices in Swaziland is not limited to the case of Mr Maseko and Mr Makhubu, but is part of a disturbing trend of curtailing freedom of expression in the country, where 32 laws place restrictions on freedom of expression and access to information and political parties have been banned since 1973;

| F. | whereas in addition to using contempt of court charges against their critics, the Swaziland authorities are actively using the 2008 Suppression of Terrorism Act (STA) and the 1938 Sedition and Subversive Activities Act (SSA Act) to intimidate activists and restrict the exercise of the right to freedom of expression, association and peaceful assembly, and whereas the authorities also initiated trial proceedings under the SSA Act against Mr Maseko in September 2014, on a sedition charge first raised against him in 2009; whereas international organisations have condemned the provisions of the STA as incompatible with Swaziland’s human rights obligations on a number of grounds; |
| --- | --- |

F.

whereas in addition to using contempt of court charges against their critics, the Swaziland authorities are actively using the 2008 Suppression of Terrorism Act (STA) and the 1938 Sedition and Subversive Activities Act (SSA Act) to intimidate activists and restrict the exercise of the right to freedom of expression, association and peaceful assembly, and whereas the authorities also initiated trial proceedings under the SSA Act against Mr Maseko in September 2014, on a sedition charge first raised against him in 2009; whereas international organisations have condemned the provisions of the STA as incompatible with Swaziland’s human rights obligations on a number of grounds;

| G. | whereas in April 2014 seven people were arrested and charged with acts of terrorism simply for wearing political T-shirts; whereas, when addressing the parliament on 7 August 2014, Swaziland’s Prime Minister, Barnabas Sibusiso Dlamini, said that two union leaders who had attended the African Summit in Washington DC should be strangled for criticising the government and that only recognised unions should be allowed to celebrate May Day; |
| --- | --- |

G.

whereas in April 2014 seven people were arrested and charged with acts of terrorism simply for wearing political T-shirts; whereas, when addressing the parliament on 7 August 2014, Swaziland’s Prime Minister, Barnabas Sibusiso Dlamini, said that two union leaders who had attended the African Summit in Washington DC should be strangled for criticising the government and that only recognised unions should be allowed to celebrate May Day;

| H. | whereas, on 8 October 2014, Winnie Magagula, Swaziland’s Minister of Labour and Social Security, suspended all federations with immediate effect, dissolving the Trade Union Congress of Swaziland (TUCOSWA), the Amalgamated Trade Unions of Swaziland (ATUSWA), the Federation of Swaziland Employers and Chamber of Commerce (FSE&CC) and a number of other statutory bodies, and whereas Article 5 of ILO Convention No 87 on freedom of association, ratified by the Government of Swaziland, recognises the right of workers’ organisations to join federations and confederations of their own choice; |
| --- | --- |

H.

whereas, on 8 October 2014, Winnie Magagula, Swaziland’s Minister of Labour and Social Security, suspended all federations with immediate effect, dissolving the Trade Union Congress of Swaziland (TUCOSWA), the Amalgamated Trade Unions of Swaziland (ATUSWA), the Federation of Swaziland Employers and Chamber of Commerce (FSE&CC) and a number of other statutory bodies, and whereas Article 5 of ILO Convention No 87 on freedom of association, ratified by the Government of Swaziland, recognises the right of workers’ organisations to join federations and confederations of their own choice;

| I. | whereas the Government of Swaziland completely ignored the recommendations and repeated calls from the international trade union movement to respect rights guaranteed under international conventions ratified by Swaziland, in particular ILO Convention No 87, and instead completely suspended the right of workers to freely associate and carry out trade union activities; |
| --- | --- |

I.

whereas the Government of Swaziland completely ignored the recommendations and repeated calls from the international trade union movement to respect rights guaranteed under international conventions ratified by Swaziland, in particular ILO Convention No 87, and instead completely suspended the right of workers to freely associate and carry out trade union activities;

| J. | whereas, following a fact-finding mission to Swaziland organised by the International Trade Union Confederation on 14-16 May 2015 to assess the progress of freedom of association and to visit political and human rights activists, TUCOSWA has finally been registered again; whereas, despite this, the authorities have given no assurances that they will not interfere with the running and organisation of trade unions, and the police have in fact presented themselves at trade union meetings; |
| --- | --- |

J.

whereas, following a fact-finding mission to Swaziland organised by the International Trade Union Confederation on 14-16 May 2015 to assess the progress of freedom of association and to visit political and human rights activists, TUCOSWA has finally been registered again; whereas, despite this, the authorities have given no assurances that they will not interfere with the running and organisation of trade unions, and the police have in fact presented themselves at trade union meetings;

| K. | whereas, on 15 July 2014, the EU concluded negotiations on an Economic Partnership Agreement (EPA) with the SADC EPA Group (including Swaziland), which is set to come before the European Parliament in the second half of 2015 for possible approval; |
| --- | --- |

K.

whereas, on 15 July 2014, the EU concluded negotiations on an Economic Partnership Agreement (EPA) with the SADC EPA Group (including Swaziland), which is set to come before the European Parliament in the second half of 2015 for possible approval;

| L. | whereas in November 2014 Swaziland lost its preferential trade agreement with the USA under the African Growth and Opportunity Act (AGOA) after the government failed to take reform measures, which it had voluntarily undertaken to do in 2013, including addressing restrictions on freedom of association, assembly and expression, such as the imprisonment of Mr Maseko and Mr Makhubu, and amending the Suppression of Terrorism Act, the Public Order Act and the Industrial Relations Act; |
| --- | --- |

L.

whereas in November 2014 Swaziland lost its preferential trade agreement with the USA under the African Growth and Opportunity Act (AGOA) after the government failed to take reform measures, which it had voluntarily undertaken to do in 2013, including addressing restrictions on freedom of association, assembly and expression, such as the imprisonment of Mr Maseko and Mr Makhubu, and amending the Suppression of Terrorism Act, the Public Order Act and the Industrial Relations Act;

| M. | whereas under the 11th European Development Fund (EDF) the EU has allocated EUR 62 million in respect of the National Indicative Programme for the 2014-2020 period, with priorities including promoting good governance, transparency, accountability, judicial independence, the rule of law and the strengthening of security; |
| --- | --- |

M.

whereas under the 11th European Development Fund (EDF) the EU has allocated EUR 62 million in respect of the National Indicative Programme for the 2014-2020 period, with priorities including promoting good governance, transparency, accountability, judicial independence, the rule of law and the strengthening of security;

| 1. | Calls for the immediate and unconditional release of Mr Maseko and Mr Makhubu, given that their imprisonment relates directly to the legitimate exercise of their right to freedom of expression and opinion; calls also for the immediate and unconditional release of all prisoners of conscience and political prisoners, including Mario Masuku, President of the People’s United Democratic Movement, and Maxwell Dlamini, Secretary-General of the Swaziland Youth Congress; condemns the harsh conditions of detention of both prisoners and calls on the authorities of Swaziland to guarantee their physical and psychological integrity in all circumstances; |
| --- | --- |

1.

Calls for the immediate and unconditional release of Mr Maseko and Mr Makhubu, given that their imprisonment relates directly to the legitimate exercise of their right to freedom of expression and opinion; calls also for the immediate and unconditional release of all prisoners of conscience and political prisoners, including Mario Masuku, President of the People’s United Democratic Movement, and Maxwell Dlamini, Secretary-General of the Swaziland Youth Congress; condemns the harsh conditions of detention of both prisoners and calls on the authorities of Swaziland to guarantee their physical and psychological integrity in all circumstances;

| 2. | Recalls the commitments made by Swaziland under the Cotonou Agreement to respect democracy, the rule of law and human rights principles, which include freedom of expression and freedom of the media; expresses its deep concern about the erosion of democracy and basic rights in Swaziland and the increasingly brutal manner in which the government is responding to its critics; |
| --- | --- |

2.

Recalls the commitments made by Swaziland under the Cotonou Agreement to respect democracy, the rule of law and human rights principles, which include freedom of expression and freedom of the media; expresses its deep concern about the erosion of democracy and basic rights in Swaziland and the increasingly brutal manner in which the government is responding to its critics;

| 3. | Notes that the sentence handed down to Mr Maseko and Mr Makhubu is much more severe than other sentences in similar cases, and considers this to be a clear attempt to silence the activists and serve as a deterrent to others, as stated by the responsible judge; demands that the Government of Swaziland bring an immediate end to the authorities’ intimidation of journalists, lawyers, independent-minded judges, trade union officials and parliamentarians, who have been threatened with violence, arrest, prosecution or other forms of pressure as a consequence of their advocacy of human rights, respect for the rule of law or political reforms; |
| --- | --- |

3.

Notes that the sentence handed down to Mr Maseko and Mr Makhubu is much more severe than other sentences in similar cases, and considers this to be a clear attempt to silence the activists and serve as a deterrent to others, as stated by the responsible judge; demands that the Government of Swaziland bring an immediate end to the authorities’ intimidation of journalists, lawyers, independent-minded judges, trade union officials and parliamentarians, who have been threatened with violence, arrest, prosecution or other forms of pressure as a consequence of their advocacy of human rights, respect for the rule of law or political reforms;

| 4. | Calls on the Government of Swaziland to engage in genuine dialogue with unions about legislative reforms that will ensure respect for workers’ rights, in line with international obligations; |
| --- | --- |

4.

Calls on the Government of Swaziland to engage in genuine dialogue with unions about legislative reforms that will ensure respect for workers’ rights, in line with international obligations;

| 5. | Calls on the Swaziland authorities to take concrete measures to respect and promote freedom of expression, guarantee democracy and plurality, and establish a legislative framework allowing the registration, operation and full participation of political parties, in line with international and regional human rights obligations and the Constitution of Swaziland, notably Article 24 thereof; |
| --- | --- |

5.

Calls on the Swaziland authorities to take concrete measures to respect and promote freedom of expression, guarantee democracy and plurality, and establish a legislative framework allowing the registration, operation and full participation of political parties, in line with international and regional human rights obligations and the Constitution of Swaziland, notably Article 24 thereof;

| 6. | Stresses that the independence of the judiciary is a fundamental democratic principle, which must be respected; |
| --- | --- |

6.

Stresses that the independence of the judiciary is a fundamental democratic principle, which must be respected;

| 7. | Considers the imprisonment of political activists and the banning of trade unions to be in clear contravention of commitments made by Swaziland under the Cotonou Agreement to respect democracy, the rule of law and human rights, and also under the sustainable development chapter of the SADC Economic Partnership Agreement, for which the European Parliament’s support will depend on respect for the commitments entered into, including the commitment to abide by international conventions, in particular core ILO standards such as Conventions Nos 87 and 98; |
| --- | --- |

7.

Considers the imprisonment of political activists and the banning of trade unions to be in clear contravention of commitments made by Swaziland under the Cotonou Agreement to respect democracy, the rule of law and human rights, and also under the sustainable development chapter of the SADC Economic Partnership Agreement, for which the European Parliament’s support will depend on respect for the commitments entered into, including the commitment to abide by international conventions, in particular core ILO standards such as Conventions Nos 87 and 98;

| 8. | Recalls that the EU grants GSP trade preferences to Swaziland in order to provide trade incentives with a view to ensuring respect for core human and labour rights and good governance; considers that the banning of trade unions and the imprisonment of political opponents run counter to these aims; |
| --- | --- |

8.

Recalls that the EU grants GSP trade preferences to Swaziland in order to provide trade incentives with a view to ensuring respect for core human and labour rights and good governance; considers that the banning of trade unions and the imprisonment of political opponents run counter to these aims;

| 9. | Calls, therefore, on the Commission to honour its obligation to monitor Swaziland’s adherence to human rights and to labour and environmental conventions under the GSP, and to open an investigation to determine whether there has been a serious and systematic violation of the labour rights protected under the GSP; |
| --- | --- |

9.

Calls, therefore, on the Commission to honour its obligation to monitor Swaziland’s adherence to human rights and to labour and environmental conventions under the GSP, and to open an investigation to determine whether there has been a serious and systematic violation of the labour rights protected under the GSP;

| 10. | Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission/High Representative for Foreign Affairs and Security Policy, the Government of Swaziland, the governments of the member states of the South African Development Community, the International Labour Organisation, the African Union and the United Nations Secretary-General. |
| --- | --- |

10.

Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission/High Representative for Foreign Affairs and Security Policy, the Government of Swaziland, the governments of the member states of the South African Development Community, the International Labour Organisation, the African Union and the United Nations Secretary-General.

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| 27.9.2016 | EN | Official Journal of the European Union | C 353/59 |
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27.9.2016

EN

Official Journal of the European Union

C 353/59

---

P8_TA(2015)0213

Implementation of the Common Security and Defence Policy

European Parliament resolution of 21 May 2015 on the implementation of the Common Security and Defence Policy (based on the Annual Report from the Council to the European Parliament on the Common Foreign and Security Policy) (2014/2220(INI))

(2016/C 353/12)

The European Parliament,

| — | having regard to the implementation of the Common Security and Defence Policy (CSDP) (based on the Annual Report from the Council to the European Parliament on the Common Foreign and Security Policy), |
| --- | --- |

—

having regard to the implementation of the Common Security and Defence Policy (CSDP) (based on the Annual Report from the Council to the European Parliament on the Common Foreign and Security Policy),

| — | having regard to the Annual Report from the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy (VP/HR) to the European Parliament on the Common Foreign and Security Policy (12094/2014), in particular the parts concerning the European Security and Defence Policy (ESDP) , |
| --- | --- |

—

having regard to the Annual Report from the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy (VP/HR) to the European Parliament on the Common Foreign and Security Policy (12094/2014), in particular the parts concerning the European Security and Defence Policy (ESDP) ,

| — | having regard to Articles 2 and 3 and to Title V of the Treaty on European Union (TEU), and notably to Articles 21, 24 and 36 thereof, |
| --- | --- |

—

having regard to Articles 2 and 3 and to Title V of the Treaty on European Union (TEU), and notably to Articles 21, 24 and 36 thereof,

| — | having regard to the Treaty on the Functioning of the European Union (TFEU), |
| --- | --- |

—

having regard to the Treaty on the Functioning of the European Union (TFEU),

| — | having regard to the European Council conclusions of 19-20 December 2013, |
| --- | --- |

—

having regard to the European Council conclusions of 19-20 December 2013,

| — | having regard to the conclusions of the Inter-Parliamentary Conference for the Common Foreign and Security Policy and the Common Security and Defence Policy of 4 April 2014 and 7 November 2014, |
| --- | --- |

—

having regard to the conclusions of the Inter-Parliamentary Conference for the Common Foreign and Security Policy and the Common Security and Defence Policy of 4 April 2014 and 7 November 2014,

| — | having regard to the European Security Strategy entitled ‘A Secure Europe in a Better World’, adopted by the European Council on 12 December 2003, and to the report on its implementation entitled ‘Providing Security in a Changing World’, endorsed by the European Council on 11-12 December 2008, |
| --- | --- |

—

having regard to the European Security Strategy entitled ‘A Secure Europe in a Better World’, adopted by the European Council on 12 December 2003, and to the report on its implementation entitled ‘Providing Security in a Changing World’, endorsed by the European Council on 11-12 December 2008,

| — | having regard to the Council conclusions on the Common Security and Defence Policy of 25 November 2013 and 18 November 2014, |
| --- | --- |

—

having regard to the Council conclusions on the Common Security and Defence Policy of 25 November 2013 and 18 November 2014,

| — | having regard to the progress report of 7 July 2014 by the VP/HR and the Head of the European Defence Agency on the implementation of the European Council conclusions of December 2013, |
| --- | --- |

—

having regard to the progress report of 7 July 2014 by the VP/HR and the Head of the European Defence Agency on the implementation of the European Council conclusions of December 2013,

| — | having regard to the joint communication by the VP/HR and the Commission on ‘The EU’s Comprehensive Approach to External Conflicts and Crises’, and the related Council conclusions of 12 May 2014, |
| --- | --- |

—

having regard to the joint communication by the VP/HR and the Commission on ‘The EU’s Comprehensive Approach to External Conflicts and Crises’, and the related Council conclusions of 12 May 2014,

| — | having regard to the Joint Communication on a Cybersecurity Strategy of the European Union: An Open, Safe and Secure Cyberspace, and to the related Council conclusions of 25 June 2013, as well as to the EU Cyber Defence Policy Framework adopted on 18 November 2014, |
| --- | --- |

—

having regard to the Joint Communication on a Cybersecurity Strategy of the European Union: An Open, Safe and Secure Cyberspace, and to the related Council conclusions of 25 June 2013, as well as to the EU Cyber Defence Policy Framework adopted on 18 November 2014,

| — | having regard to the EU maritime security strategy of 24 June 2014 and the EU Maritime Security Strategy Action Plan of December 2014, |
| --- | --- |

—

having regard to the EU maritime security strategy of 24 June 2014 and the EU Maritime Security Strategy Action Plan of December 2014,

| — | having regard to the Council Decision of 24 June 2014 on the arrangements for the implementation by the Union of the solidarity clause, |
| --- | --- |

—

having regard to the Council Decision of 24 June 2014 on the arrangements for the implementation by the Union of the solidarity clause,

| — | having regard to the Policy Framework for Systematic and Long-Term Defence Cooperation adopted on 18 November 2014, |
| --- | --- |

—

having regard to the Policy Framework for Systematic and Long-Term Defence Cooperation adopted on 18 November 2014,

| — | having regard to the Commission communication of 24 July 2013 entitled ‘Towards a more competitive and efficient defence and security sector’ (COM(2013)0542) and to the implementation roadmap of 24 June 2014 (COM(2014)0387), |
| --- | --- |

—

having regard to the Commission communication of 24 July 2013 entitled ‘Towards a more competitive and efficient defence and security sector’ (COM(2013)0542) and to the implementation roadmap of 24 June 2014 (COM(2014)0387),

| — | having regard to Directive 2009/43/EC of the European Parliament and of the Council of 6 May 2009 simplifying terms and conditions of transfers of defence-related products within the Community (1), |
| --- | --- |

—

having regard to Directive 2009/43/EC of the European Parliament and of the Council of 6 May 2009 simplifying terms and conditions of transfers of defence-related products within the Community (1),

| — | having regard to Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security, and amending Directives 2004/17/EC and 2004/18/EC (2), |
| --- | --- |

—

having regard to Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security, and amending Directives 2004/17/EC and 2004/18/EC (2),

| — | having regard to its resolutions on the Common Security and Defence Policy, in particular to those of 21 November 2013 on the implementation of the Common Security and Defence Policy (3) and on the European Defence Technological and Industrial Base (4), and of 12 September 2013 on the maritime dimension of the Common Security and Defence Policy (5) and on the EU’s military structures: state of play and future prospects (6), |
| --- | --- |

—

having regard to its resolutions on the Common Security and Defence Policy, in particular to those of 21 November 2013 on the implementation of the Common Security and Defence Policy (3) and on the European Defence Technological and Industrial Base (4), and of 12 September 2013 on the maritime dimension of the Common Security and Defence Policy (5) and on the EU’s military structures: state of play and future prospects (6),

| — | having regard to its resolution of 22 November 2012 on Cyber Security and Defence (7), |
| --- | --- |

—

having regard to its resolution of 22 November 2012 on Cyber Security and Defence (7),

| — | having regard to its resolution of 3 April 2014 on the EU comprehensive approach and its implications for the coherence of EU external action (8), |
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—

having regard to its resolution of 3 April 2014 on the EU comprehensive approach and its implications for the coherence of EU external action (8),

| — | having regard to its recommendation of 13 June 2013 to the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, to the Council and to the Commission on the 2013 review of the organisation and the functioning of the EEAS (9) and to the Council conclusions of 17 December 2013 on the EEAS Review 2013 (10), |
| --- | --- |

—

having regard to its recommendation of 13 June 2013 to the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, to the Council and to the Commission on the 2013 review of the organisation and the functioning of the EEAS (9) and to the Council conclusions of 17 December 2013 on the EEAS Review 2013 (10),

| — | having regard to the Charter of the United Nations, |
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—

having regard to the Charter of the United Nations,

| — | having regard to Rule 132(1) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 132(1) of its Rules of Procedure,

| — | having regard to the report of the Committee on Foreign Affairs (A8-0054/2015), |
| --- | --- |

—

having regard to the report of the Committee on Foreign Affairs (A8-0054/2015),

Overall security context

| 1. | Considers the security environment of the EU and of its eastern and southern neighbourhoods to be increasingly unstable and volatile due to the great number of long-standing and newly emerging security challenges; regards the conflict in eastern Ukraine, the conflicts in Syria and Iraq, with the rise of the ISIS terrorist organisation, the Libyan crisis and the terrorist threat in Africa (in particular in the Sahel, Libya and the Horn of Africa) as direct threats to the Union’s security; considers, also, that the US ‘pivot to Asia-Pacific’ and the impact of the financial crisis on Member States’ defence budgets and capabilities serve to highlight just how necessary it is for the Union and its Member States to shoulder more responsibility for their own security and defence; insists that the EU will be able to respond effectively to the new security challenges mentioned above only if its structures and its Member States work together in a common and truly coordinated effort in the context of the CFSP/CSDP; |
| --- | --- |

1.

Considers the security environment of the EU and of its eastern and southern neighbourhoods to be increasingly unstable and volatile due to the great number of long-standing and newly emerging security challenges; regards the conflict in eastern Ukraine, the conflicts in Syria and Iraq, with the rise of the ISIS terrorist organisation, the Libyan crisis and the terrorist threat in Africa (in particular in the Sahel, Libya and the Horn of Africa) as direct threats to the Union’s security; considers, also, that the US ‘pivot to Asia-Pacific’ and the impact of the financial crisis on Member States’ defence budgets and capabilities serve to highlight just how necessary it is for the Union and its Member States to shoulder more responsibility for their own security and defence; insists that the EU will be able to respond effectively to the new security challenges mentioned above only if its structures and its Member States work together in a common and truly coordinated effort in the context of the CFSP/CSDP;

| 2. | Considers that the current level of instability at the EU’s borders and in its immediate neighbourhood is unprecedented since the late 1990s, when the ESDP/CSDP was established; is concerned that the Union may not jointly be able to be a key player in addressing each of these threats and that it may all too often be reduced to relying on the initiatives of one or a few Member States, or on ad hoc alliances in which it has only a peripheral or reserve role to play; |
| --- | --- |

2.

Considers that the current level of instability at the EU’s borders and in its immediate neighbourhood is unprecedented since the late 1990s, when the ESDP/CSDP was established; is concerned that the Union may not jointly be able to be a key player in addressing each of these threats and that it may all too often be reduced to relying on the initiatives of one or a few Member States, or on ad hoc alliances in which it has only a peripheral or reserve role to play;

| 3. | Considers that the Union and its Member States must, as a matter of the utmost urgency, adapt to the new security challenges, in particular by making effective use of the existing CSDP tools, including by linking these better to the EU’s foreign affairs tools, humanitarian assistance, and development policy, by coordinating national actions and pooling resources more closely and, where appropriate, by introducing in a pragmatic and flexible manner new arrangements for the expression of European solidarity; stresses that the boundaries between external and internal security are becoming more and more blurred; calls, therefore, for enhanced coherence between external and internal instruments, and for greater cooperation and coordination among the Member States, especially in the fields of counter-terrorism, organised crime, cyberdefence and migration, under the leadership of the VP/HR; |
| --- | --- |

3.

Considers that the Union and its Member States must, as a matter of the utmost urgency, adapt to the new security challenges, in particular by making effective use of the existing CSDP tools, including by linking these better to the EU’s foreign affairs tools, humanitarian assistance, and development policy, by coordinating national actions and pooling resources more closely and, where appropriate, by introducing in a pragmatic and flexible manner new arrangements for the expression of European solidarity; stresses that the boundaries between external and internal security are becoming more and more blurred; calls, therefore, for enhanced coherence between external and internal instruments, and for greater cooperation and coordination among the Member States, especially in the fields of counter-terrorism, organised crime, cyberdefence and migration, under the leadership of the VP/HR;

| 4. | Emphasises that the Union’s strength and relevance lie in its ability to mobilise resources and bring into play simultaneously a wide range of diplomatic, security, defence, economic, trade, development and humanitarian instruments, and in full compliance with the provisions of the United Nations Charter; underscores the fact that the CSDP military and civil instruments are integral components of this comprehensive approach; |
| --- | --- |

4.

Emphasises that the Union’s strength and relevance lie in its ability to mobilise resources and bring into play simultaneously a wide range of diplomatic, security, defence, economic, trade, development and humanitarian instruments, and in full compliance with the provisions of the United Nations Charter; underscores the fact that the CSDP military and civil instruments are integral components of this comprehensive approach;

From the December 2013 Council to June 2015: is the CSDP a real priority?

| 5. | Welcomes the European Council conclusions of December 2013 which recognised the need to increase the effectiveness, visibility and impact of the CSDP, enhance the development of capabilities and strengthen Europe’s defence industry; |
| --- | --- |

5.

Welcomes the European Council conclusions of December 2013 which recognised the need to increase the effectiveness, visibility and impact of the CSDP, enhance the development of capabilities and strengthen Europe’s defence industry;

| 6. | Finds regrettable, especially with regard to the increasing external instabilities, the fact that the injection of political stimulus in 2013 did not lead to enhanced cooperation and the substantial and rapid implementation of practical measures, commensurate with the declared levels of ambition; considers that at present the Union hardly possesses the requisite resources, operationally, industrially or in terms of capabilities, to contribute in a decisive way to the prevention and management of international crises and to assert its own strategic autonomy and strategic interests, in line with the values and norms enshrined in Article 21 of the Lisbon Treaty; calls on the Member States to follow through with concrete measures as a matter of urgency; |
| --- | --- |

6.

Finds regrettable, especially with regard to the increasing external instabilities, the fact that the injection of political stimulus in 2013 did not lead to enhanced cooperation and the substantial and rapid implementation of practical measures, commensurate with the declared levels of ambition; considers that at present the Union hardly possesses the requisite resources, operationally, industrially or in terms of capabilities, to contribute in a decisive way to the prevention and management of international crises and to assert its own strategic autonomy and strategic interests, in line with the values and norms enshrined in Article 21 of the Lisbon Treaty; calls on the Member States to follow through with concrete measures as a matter of urgency;

| 7. | Welcomes the appointment of the new Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, Federica Mogherini; welcomes her first statements and her decision to chair the Foreign Affairs and Defence Council meetings, an indication of her interest in the CSDP; hopes that the stances she has taken will be reflected in a boost to the development of the CSDP; calls on the VP/HR to play a leading role in working towards the further implementation of the CSDP and the pooling and sharing of European defence capabilities; calls on the Commission to continue the work of the defence task force at Commissioner lever, under the leadership of the VP/HR, in order to guarantee political guidance and supervision; |
| --- | --- |

7.

Welcomes the appointment of the new Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, Federica Mogherini; welcomes her first statements and her decision to chair the Foreign Affairs and Defence Council meetings, an indication of her interest in the CSDP; hopes that the stances she has taken will be reflected in a boost to the development of the CSDP; calls on the VP/HR to play a leading role in working towards the further implementation of the CSDP and the pooling and sharing of European defence capabilities; calls on the Commission to continue the work of the defence task force at Commissioner lever, under the leadership of the VP/HR, in order to guarantee political guidance and supervision;

| 8. | Expects that by the time of the June 2015 European Council meeting, which will once again deal with defence issues, the Member States and the EU institutions will be in a position to adopt specific measures in line with the commitments made in December 2013; is satisfied by the confirmation by the heads of state that the Defence Council will take place on 25-26 June 2015, and calls on them to critically assess the low profile of implementation and to increase pressure on the defence bureaucracies to implement decisions taken at the highest political level in December 2013; stresses that the June 2015 European Council meeting must encourage recalcitrant Member States to invest more resources in defence, and that it must also focus its efforts on those area of crisis management in which the EU can genuinely add value; |
| --- | --- |

8.

Expects that by the time of the June 2015 European Council meeting, which will once again deal with defence issues, the Member States and the EU institutions will be in a position to adopt specific measures in line with the commitments made in December 2013; is satisfied by the confirmation by the heads of state that the Defence Council will take place on 25-26 June 2015, and calls on them to critically assess the low profile of implementation and to increase pressure on the defence bureaucracies to implement decisions taken at the highest political level in December 2013; stresses that the June 2015 European Council meeting must encourage recalcitrant Member States to invest more resources in defence, and that it must also focus its efforts on those area of crisis management in which the EU can genuinely add value;

| 9. | Considers that the upcoming European Council meeting on defence should take decisions that will lead to the improvement of the capacity of the Union and the Member States as regards territorial defence, in total complementarity with NATO, and as regards the capacity to respond to internal security challenges, and to develop the deployable capabilities needed to ensure a meaningful contribution by the EU to crisis management, strengthen the European Defence Agency and the European Defence and Industrial Base, initiating the elaboration of a comprehensive security concept that will integrate the internal and external dimensions of security; |
| --- | --- |

9.

Considers that the upcoming European Council meeting on defence should take decisions that will lead to the improvement of the capacity of the Union and the Member States as regards territorial defence, in total complementarity with NATO, and as regards the capacity to respond to internal security challenges, and to develop the deployable capabilities needed to ensure a meaningful contribution by the EU to crisis management, strengthen the European Defence Agency and the European Defence and Industrial Base, initiating the elaboration of a comprehensive security concept that will integrate the internal and external dimensions of security;

CSDP missions and operations

| 10. | Is concerned that the most recent civilian and military operations under the CSDP have continued to be dogged by structural shortfalls, which have been evident now for several years, namely inefficiency as regards immediate reactions to civilian and military actions, lengthy and inflexible decision-making processes, the need for greater solidarity among Member States in funding missions, mission mandates which are unsuited to the operational environment, budgetary constraints, the problem of ‘force generation’, and logistical and financial inertia; |
| --- | --- |

10.

Is concerned that the most recent civilian and military operations under the CSDP have continued to be dogged by structural shortfalls, which have been evident now for several years, namely inefficiency as regards immediate reactions to civilian and military actions, lengthy and inflexible decision-making processes, the need for greater solidarity among Member States in funding missions, mission mandates which are unsuited to the operational environment, budgetary constraints, the problem of ‘force generation’, and logistical and financial inertia;

| 11. | Considers the issue of financing for CSDP missions and operations to be crucial if the policy is to have a future; finds it regrettable that specific proposals have not yet emerged from the discussion initiated on this subject at the December 2013 Council meeting; calls for the Athena mechanism to be used systematically for the financing of the CSDP’s operational and mission deployment costs, in particular as regards the use of EU battlegroups, accommodation infrastructure for forces, expenses relating to the establishment of points of entry for troops into theatres of operations and security stocks of food and fuel where necessary; calls, also, for the same mechanism to be used to manage financing received from Member States on a bilateral basis, and from third countries and international organisations, so that they can participate in the financing of a given operation and, in duly justified cases, support the participation by third countries in EU crisis response operations and missions; |
| --- | --- |

11.

Considers the issue of financing for CSDP missions and operations to be crucial if the policy is to have a future; finds it regrettable that specific proposals have not yet emerged from the discussion initiated on this subject at the December 2013 Council meeting; calls for the Athena mechanism to be used systematically for the financing of the CSDP’s operational and mission deployment costs, in particular as regards the use of EU battlegroups, accommodation infrastructure for forces, expenses relating to the establishment of points of entry for troops into theatres of operations and security stocks of food and fuel where necessary; calls, also, for the same mechanism to be used to manage financing received from Member States on a bilateral basis, and from third countries and international organisations, so that they can participate in the financing of a given operation and, in duly justified cases, support the participation by third countries in EU crisis response operations and missions;

| 12. | Encourages further efforts to be made to speed up the provision of financing for civilian missions and to simplify decision-making procedures and implementation; Is of the opinion, in this connection, that the Commission should introduce, by means of delegated acts and in accordance with Article 210 of the Financial Regulation, specific procurement rules governing crisis management measures under the CSDP in order to facilitate the rapid and flexible conduct of operations; |
| --- | --- |

12.

Encourages further efforts to be made to speed up the provision of financing for civilian missions and to simplify decision-making procedures and implementation; Is of the opinion, in this connection, that the Commission should introduce, by means of delegated acts and in accordance with Article 210 of the Financial Regulation, specific procurement rules governing crisis management measures under the CSDP in order to facilitate the rapid and flexible conduct of operations;

| 13. | Calls for the establishment of a pre-financing mechanism to help Member States that wish to participate in a CSDP mission to meet the costs thereof, thereby making it easier for them to decide whether to launch a mission; |
| --- | --- |

13.

Calls for the establishment of a pre-financing mechanism to help Member States that wish to participate in a CSDP mission to meet the costs thereof, thereby making it easier for them to decide whether to launch a mission;

| 14. | Stresses that the EU’s contribution to international security, crisis management and peacekeeping, through the EU’s civilian and military missions and operations, is an important component of the Union’s comprehensive approach; notes that too many of the civilian and military missions launched by the EU since 2009 have been aimed at enhancing the Union’s crisis response profile rather than taking strategic measures on the basis of in-depth analysis and planning; believes that these missions — of which the personnel’s professionalism and dedication in the field should be highlighted and praised — should be genuine, effective policy tools that are used in a responsible manner, forming part of an overall action strategy, especially in the EU’s neighbourhood; supports the ongoing review of the crisis management structures within the EEAS; calls on the VP/HR to make existing structures much more efficient so that they can respond faster and in a more appropriate manner to emerging crises, inter alia by reducing the number of parallel structures; |
| --- | --- |

14.

Stresses that the EU’s contribution to international security, crisis management and peacekeeping, through the EU’s civilian and military missions and operations, is an important component of the Union’s comprehensive approach; notes that too many of the civilian and military missions launched by the EU since 2009 have been aimed at enhancing the Union’s crisis response profile rather than taking strategic measures on the basis of in-depth analysis and planning; believes that these missions — of which the personnel’s professionalism and dedication in the field should be highlighted and praised — should be genuine, effective policy tools that are used in a responsible manner, forming part of an overall action strategy, especially in the EU’s neighbourhood; supports the ongoing review of the crisis management structures within the EEAS; calls on the VP/HR to make existing structures much more efficient so that they can respond faster and in a more appropriate manner to emerging crises, inter alia by reducing the number of parallel structures;

| 15. | Considers that an important aspect of successful missions is staff who are adequate and qualified in terms of training, skills and leadership; |
| --- | --- |

15.

Considers that an important aspect of successful missions is staff who are adequate and qualified in terms of training, skills and leadership;

| 16. | Questions, for example, the relevance of deploying and maintaining a mission on the Libyan border, (EUBAM Libya) an institutional and security context in which it has never been able to address the basic aims identified therein; calls for a reassessment of the needs as regards Libya in light of the worrying recent developments in order to adequately address security concerns, including in connection with ongoing anti-terrorism efforts in Mali and the Sahel region; |
| --- | --- |

16.

Questions, for example, the relevance of deploying and maintaining a mission on the Libyan border, (EUBAM Libya) an institutional and security context in which it has never been able to address the basic aims identified therein; calls for a reassessment of the needs as regards Libya in light of the worrying recent developments in order to adequately address security concerns, including in connection with ongoing anti-terrorism efforts in Mali and the Sahel region;

| 17. | Considers that an evaluation of the efficiency of the 17 ongoing EU Missions abroad should be conducted; |
| --- | --- |

17.

Considers that an evaluation of the efficiency of the 17 ongoing EU Missions abroad should be conducted;

| 18. | Finds it regrettable, similarly, given the situation in the Gaza Strip, that the Council discussions about the EU Border Assistance Mission at the Rafah Crossing Point (EUBAM Rafah) have so far not yielded any results; calls for the reactivation of this mission and for its remit, staffing and resources to be reviewed so that it can play a part in monitoring the borders between the Gaza Strip and Egypt and Israel; |
| --- | --- |

18.

Finds it regrettable, similarly, given the situation in the Gaza Strip, that the Council discussions about the EU Border Assistance Mission at the Rafah Crossing Point (EUBAM Rafah) have so far not yielded any results; calls for the reactivation of this mission and for its remit, staffing and resources to be reviewed so that it can play a part in monitoring the borders between the Gaza Strip and Egypt and Israel;

| 19. | Welcomes the EU’s comprehensive engagement in the Horn of Africa, including through the CSDP missions and operations EUTM Somalia, EUNAVFOR Atalanta and EUCAP Nestor; notes, in this connection, that the activity of EUCAP Nestor takes place in a complex institutional and operational environment, with the presence of a host of international actors, including the EU; invites the Council and the EEAS, in this connection, to rationalise the mission’s objectives; |
| --- | --- |

19.

Welcomes the EU’s comprehensive engagement in the Horn of Africa, including through the CSDP missions and operations EUTM Somalia, EUNAVFOR Atalanta and EUCAP Nestor; notes, in this connection, that the activity of EUCAP Nestor takes place in a complex institutional and operational environment, with the presence of a host of international actors, including the EU; invites the Council and the EEAS, in this connection, to rationalise the mission’s objectives;

| 20. | Hopes that the two civilian missions launched this year — the Council mission for the reform of the civil security sector in Ukraine (EUAM Ukraine) and the mission to support the internal security forces in Mali (EUCAP Sahel Mali) — will effectively fulfil their mandates and focus on clearly identified, measurable and long-term objectives; |
| --- | --- |

20.

Hopes that the two civilian missions launched this year — the Council mission for the reform of the civil security sector in Ukraine (EUAM Ukraine) and the mission to support the internal security forces in Mali (EUCAP Sahel Mali) — will effectively fulfil their mandates and focus on clearly identified, measurable and long-term objectives;

| 21. | Notes that since June 2013 a warehouse facility has existed for the rapid deployment of resources for CSDP civilian missions; considers that if this facility is to be used effectively, it should be placed at the service of the relevant heads of mission to meet the needs which they identify, rather than operating on the basis of Commission decisions; calls for the preparation of annual activity reports for the warehouse, so that the added value it offers in terms of expediting the deployment of civilian missions can be properly assessed; |
| --- | --- |

21.

Notes that since June 2013 a warehouse facility has existed for the rapid deployment of resources for CSDP civilian missions; considers that if this facility is to be used effectively, it should be placed at the service of the relevant heads of mission to meet the needs which they identify, rather than operating on the basis of Commission decisions; calls for the preparation of annual activity reports for the warehouse, so that the added value it offers in terms of expediting the deployment of civilian missions can be properly assessed;

| 22. | Welcomes the research being conducted with a view to the establishment of a shared services centre to pool resources for CSDP civilian missions and provide for the more efficient deployment of the missions; calls for the establishment of a shared services centre; considers that the most effective solution would be to have a single institutional structure inside the EEAS that centralises and rationalises services for civilian missions (human resources, IT, logistics, etc.), which are currently dispersed within the individual missions; |
| --- | --- |

22.

Welcomes the research being conducted with a view to the establishment of a shared services centre to pool resources for CSDP civilian missions and provide for the more efficient deployment of the missions; calls for the establishment of a shared services centre; considers that the most effective solution would be to have a single institutional structure inside the EEAS that centralises and rationalises services for civilian missions (human resources, IT, logistics, etc.), which are currently dispersed within the individual missions;

| 23. | Notes that CSDP military operations increasingly tend to be armed forces training missions (EUTM Mali and EUTM Somalia); praises the decision to carry out such operations but insists that the mandate of each mission be adapted to the circumstances of each individual situation; considers that the units formed must be totally operational, that is, with offensive capacity; finds it regrettable that missions with an executive remit are rarely envisaged nowadays; considers that, given the persistent threats in the EU’s neighbourhood, the Union cannot allow itself to focus exclusively on instruments geared towards a post-crisis scenario or towards supporting a crisis exit, but rather it must be capable of intervention across the full spectrum of crisis management, in line with the Charter of the United Nations; |
| --- | --- |

23.

Notes that CSDP military operations increasingly tend to be armed forces training missions (EUTM Mali and EUTM Somalia); praises the decision to carry out such operations but insists that the mandate of each mission be adapted to the circumstances of each individual situation; considers that the units formed must be totally operational, that is, with offensive capacity; finds it regrettable that missions with an executive remit are rarely envisaged nowadays; considers that, given the persistent threats in the EU’s neighbourhood, the Union cannot allow itself to focus exclusively on instruments geared towards a post-crisis scenario or towards supporting a crisis exit, but rather it must be capable of intervention across the full spectrum of crisis management, in line with the Charter of the United Nations;

| 24. | Is dismayed by the persistent problems of force generation encountered around the launch of military missions; notes that, with the exception of EUTM Mali, to which 23 Member States are making an effective contribution, all current EU military operations involve no more than six Member States; encourages Member States to contribute more forces to operations, when the national capabilities that are required are available; stresses the need for a common and cooperative approach in dealing with force generation problems; welcomes the contributions made by third countries that reflect the vitality of partnerships forged under the CSDP; calls on Member States to show a greater willingness as regards EU military operations and to contribute accordingly from the resources and capacities they possess for such involvement; |
| --- | --- |

24.

Is dismayed by the persistent problems of force generation encountered around the launch of military missions; notes that, with the exception of EUTM Mali, to which 23 Member States are making an effective contribution, all current EU military operations involve no more than six Member States; encourages Member States to contribute more forces to operations, when the national capabilities that are required are available; stresses the need for a common and cooperative approach in dealing with force generation problems; welcomes the contributions made by third countries that reflect the vitality of partnerships forged under the CSDP; calls on Member States to show a greater willingness as regards EU military operations and to contribute accordingly from the resources and capacities they possess for such involvement;

| 25. | Considers, given the fact that Union missions — both civilian (EUCAP) and military (EUTM) — are focusing on training, that a structural policy for putting such missions on a long-term footing with efficient mandates and objectives that are adequate in terms of dealing with the situations with which they are confronted, through the provision of financial and material assistance, should to be introduced; considers that such a new policy, as part of the Union’s cooperation and development efforts, would serves as a means of furthering the work being done under the ‘Train and Equip’ and ‘E2I’ initiatives which aim to enhance the capabilities of third countries (in terms of equipment, weaponry, infrastructure and salaries) so that their armed forces are properly operational; encourages the Commission, in this connection, to explore innovative sources of financing; |
| --- | --- |

25.

Considers, given the fact that Union missions — both civilian (EUCAP) and military (EUTM) — are focusing on training, that a structural policy for putting such missions on a long-term footing with efficient mandates and objectives that are adequate in terms of dealing with the situations with which they are confronted, through the provision of financial and material assistance, should to be introduced; considers that such a new policy, as part of the Union’s cooperation and development efforts, would serves as a means of furthering the work being done under the ‘Train and Equip’ and ‘E2I’ initiatives which aim to enhance the capabilities of third countries (in terms of equipment, weaponry, infrastructure and salaries) so that their armed forces are properly operational; encourages the Commission, in this connection, to explore innovative sources of financing;

| 26. | Notes the intention of the November 2013 Council to enhance the modularity and flexibility of the EU battlegroups so that they can be deployed for crisis management tasks of all types; notes, however, that the only progress made to date in this respect has been the very limited step of proposing that the Athena mechanism should cover the strategic transport of battlegroups into theatres of operations; recognises that the lack of a constructive attitude among all Member States has served as a political and operational impediment to the deployment of battlegroups; |
| --- | --- |

26.

Notes the intention of the November 2013 Council to enhance the modularity and flexibility of the EU battlegroups so that they can be deployed for crisis management tasks of all types; notes, however, that the only progress made to date in this respect has been the very limited step of proposing that the Athena mechanism should cover the strategic transport of battlegroups into theatres of operations; recognises that the lack of a constructive attitude among all Member States has served as a political and operational impediment to the deployment of battlegroups;

| 27. | Welcomes the positive message issued by the last informal Council meeting on defence about exploring the potential of Article 44 TEU; finds it regrettable, however, that, due to divisions on the subject, no progress has been made in determining how the provisions of Article 44 could be applied; believes that the implementation of Article 44 would enable the Union to act in a considerably more flexible and expeditious manner, thus enhancing its ability to address the threats surrounding it; urges those Member States which are not interested in participating in CSDP operations or which lack the means to do so to take a constructive stance by allowing others to act if they so wish; |
| --- | --- |

27.

Welcomes the positive message issued by the last informal Council meeting on defence about exploring the potential of Article 44 TEU; finds it regrettable, however, that, due to divisions on the subject, no progress has been made in determining how the provisions of Article 44 could be applied; believes that the implementation of Article 44 would enable the Union to act in a considerably more flexible and expeditious manner, thus enhancing its ability to address the threats surrounding it; urges those Member States which are not interested in participating in CSDP operations or which lack the means to do so to take a constructive stance by allowing others to act if they so wish;

| 28. | Calls, furthermore, on the VP/HR to explore the potential of other relevant articles in the Lisbon Treaty, in particular those which relate to the start-up fund (Article 41 TEU), permanent enhanced cooperation (Article 46 TEU), the solidarity clause (Article 222 TFEU) and the mutual defence clause (Article 42 TEU); |
| --- | --- |

28.

Calls, furthermore, on the VP/HR to explore the potential of other relevant articles in the Lisbon Treaty, in particular those which relate to the start-up fund (Article 41 TEU), permanent enhanced cooperation (Article 46 TEU), the solidarity clause (Article 222 TFEU) and the mutual defence clause (Article 42 TEU);

| 29. | Calls for serious consideration to be given to the possible use — with arrangements to ensure the necessary modularity — of multilateral HQ structures which are established and have proved their effectiveness on the ground, such as Eurocorps in Strasbourg; |
| --- | --- |

29.

Calls for serious consideration to be given to the possible use — with arrangements to ensure the necessary modularity — of multilateral HQ structures which are established and have proved their effectiveness on the ground, such as Eurocorps in Strasbourg;

| 30. | Expresses its surprise that there is still no common EU strategy to tackle new challenges to EU security; welcomes the Council’s intention and the commitment by the VP/HR to initiate a process of strategic reflection on the challenges and opportunities for the foreign and security policy; recalls that this process aims at developing a new common European security strategy to determine the new geostrategic scenarios, threats and global challenges that have emerged, and at defining the actions that the EU may take in response thereto, notably in the framework of the CFSP and CSDP; calls, furthermore, on the VP/HR to initiate a wide-reaching process to develop an even more ambitious white paper on European security and defence in order to streamline the EU’s strategic ambitions and capability development processes; awaits the forthcoming communication by the VP/HR intended to assess the impacts of changes on the global environment and identify resulting challenges and opportunities for the EU; |
| --- | --- |

30.

Expresses its surprise that there is still no common EU strategy to tackle new challenges to EU security; welcomes the Council’s intention and the commitment by the VP/HR to initiate a process of strategic reflection on the challenges and opportunities for the foreign and security policy; recalls that this process aims at developing a new common European security strategy to determine the new geostrategic scenarios, threats and global challenges that have emerged, and at defining the actions that the EU may take in response thereto, notably in the framework of the CFSP and CSDP; calls, furthermore, on the VP/HR to initiate a wide-reaching process to develop an even more ambitious white paper on European security and defence in order to streamline the EU’s strategic ambitions and capability development processes; awaits the forthcoming communication by the VP/HR intended to assess the impacts of changes on the global environment and identify resulting challenges and opportunities for the EU;

| 31. | Welcomes the adoption on 18 November 2014 of the EU Cyber Defence Policy Framework, setting out five priorities for cyberdefence in the context of the CSDP and clarifying the role of different actors; welcomes the framework’s goal of supporting the development of national cyberdefence capabilities and strengthening the protection of communication networks used for CSDP instruments; underlines the importance of achieving a common level of cybersecurity among the Member States in order to make adequate progress as regards cooperation in cyberdefence, and to strengthen our capabilities as regards cyberattacks and cyberterrorism, and hopes that this action plan will mark the beginning of a move towards the more systematic integration of cyberdefence in Member States’ national security strategies, and an awareness of the importance of cyberdefence issues among the institutions of the EU; calls furthermore, for a coherent European strategy to secure critical (digital) infrastructure against cyberattacks, while also protecting and promoting citizens’ digital rights and freedoms; recalls the need for more clarity and a proper legal framework, given the difficulties of attributing cyberattacks and the need for a proportionate and necessary response in all contexts; |
| --- | --- |

31.

Welcomes the adoption on 18 November 2014 of the EU Cyber Defence Policy Framework, setting out five priorities for cyberdefence in the context of the CSDP and clarifying the role of different actors; welcomes the framework’s goal of supporting the development of national cyberdefence capabilities and strengthening the protection of communication networks used for CSDP instruments; underlines the importance of achieving a common level of cybersecurity among the Member States in order to make adequate progress as regards cooperation in cyberdefence, and to strengthen our capabilities as regards cyberattacks and cyberterrorism, and hopes that this action plan will mark the beginning of a move towards the more systematic integration of cyberdefence in Member States’ national security strategies, and an awareness of the importance of cyberdefence issues among the institutions of the EU; calls furthermore, for a coherent European strategy to secure critical (digital) infrastructure against cyberattacks, while also protecting and promoting citizens’ digital rights and freedoms; recalls the need for more clarity and a proper legal framework, given the difficulties of attributing cyberattacks and the need for a proportionate and necessary response in all contexts;

| 32. | Points out the imminent threat to the cyberdomain and underlines the need for resilience and readiness in the EU to respond to cybercrises, also in the context of the CSDP, and thus encourages all Member States to significantly step up without delay the development of their cyberdefence capabilities; stresses that investment is needed as regards highly skilled human capital and R&I; stresses the need for synergies and complementarities in the civilian and military domains of cybersecurity and defence in the EU; underlines the importance of stepping up cyberdefence cooperation with NATO; |
| --- | --- |

32.

Points out the imminent threat to the cyberdomain and underlines the need for resilience and readiness in the EU to respond to cybercrises, also in the context of the CSDP, and thus encourages all Member States to significantly step up without delay the development of their cyberdefence capabilities; stresses that investment is needed as regards highly skilled human capital and R&I; stresses the need for synergies and complementarities in the civilian and military domains of cybersecurity and defence in the EU; underlines the importance of stepping up cyberdefence cooperation with NATO;

| 33. | Stresses the importance of security and defence cooperation by the EU with other international institutions, in particular the UN, NATO, the African Union and the OSCE; welcomes the statement from the NATO summit in Wales in September 2014 in which support for the development of the CSDP was reaffirmed; calls for steps to be taken to strengthen the two organisations; |
| --- | --- |

33.

Stresses the importance of security and defence cooperation by the EU with other international institutions, in particular the UN, NATO, the African Union and the OSCE; welcomes the statement from the NATO summit in Wales in September 2014 in which support for the development of the CSDP was reaffirmed; calls for steps to be taken to strengthen the two organisations;

Capabilities

| 34. | Considers that national defence budgets have been reduced due to the effects of the 2008 economic and financial crisis and that the reductions have taken place without coordination between the Member States, thus jeopardising the Union’s strategic autonomy and the ability of its Member States to meet the capacity requirements of their armed forces, and with detrimental consequences as regards the Union’s responsibilities and potential as a global security provider; stresses the importance of upfront planning on strategic investment in the purchase and renovation of equipment among Member States; |
| --- | --- |

34.

Considers that national defence budgets have been reduced due to the effects of the 2008 economic and financial crisis and that the reductions have taken place without coordination between the Member States, thus jeopardising the Union’s strategic autonomy and the ability of its Member States to meet the capacity requirements of their armed forces, and with detrimental consequences as regards the Union’s responsibilities and potential as a global security provider; stresses the importance of upfront planning on strategic investment in the purchase and renovation of equipment among Member States;

| 35. | Strongly believes that the EU has a vital interest in a secure, open and clean maritime environment that allows the free passage of goods and people, and the peaceful, legal, fair and sustainable use of the oceans’ riches; believes that the EU institutional framework — both civilian and military — should, therefore, be further developed in order to implement the European Maritime Security Strategy; notes that most of the strategic assets, critical infrastructure and capabilities are under the control of Member States and that their willingness to enhance cooperation is paramount for European security; |
| --- | --- |

35.

Strongly believes that the EU has a vital interest in a secure, open and clean maritime environment that allows the free passage of goods and people, and the peaceful, legal, fair and sustainable use of the oceans’ riches; believes that the EU institutional framework — both civilian and military — should, therefore, be further developed in order to implement the European Maritime Security Strategy; notes that most of the strategic assets, critical infrastructure and capabilities are under the control of Member States and that their willingness to enhance cooperation is paramount for European security;

| 36. | Welcomes the adoption by the Council on 18 November 2014 of a policy framework for systematic, long-term defence cooperation based on the convergence of capability planning processes and on information exchange; points out, to this end, that Member States should continue to implement the EDA’s code of conduct on pooling and sharing equipment, so as to anticipate much more effectively future capability gaps and systematise cooperation on the development of capabilities; calls on the VP/HR to provide proof of specific measures which will be taken to strengthen defence cooperation; calls on the Member States, regarding the uncoordinated increase in bilateral and multilateral defence cooperation, to engage in permanent structure cooperation (PESCO) as means for better coordination and to use EU financing for peacetime cooperation; calls on the VP/HR to deliver realistic plans for the successful launch of PESCO; |
| --- | --- |

36.

Welcomes the adoption by the Council on 18 November 2014 of a policy framework for systematic, long-term defence cooperation based on the convergence of capability planning processes and on information exchange; points out, to this end, that Member States should continue to implement the EDA’s code of conduct on pooling and sharing equipment, so as to anticipate much more effectively future capability gaps and systematise cooperation on the development of capabilities; calls on the VP/HR to provide proof of specific measures which will be taken to strengthen defence cooperation; calls on the Member States, regarding the uncoordinated increase in bilateral and multilateral defence cooperation, to engage in permanent structure cooperation (PESCO) as means for better coordination and to use EU financing for peacetime cooperation; calls on the VP/HR to deliver realistic plans for the successful launch of PESCO;

| 37. | Welcomes the adoption by the November 2014 Council of the EDA capability development plan (CDP) setting out the 16 priorities for capability development; welcomes, also, the EDA’s work through the collaborative database (Codaba) identifying the scope for cooperation among Member States and thus paving the way for the initiation of various forms of cooperation; urges the Member States, in developing their military capabilities, to pay due regard to these tools; calls for the strict avoidance of duplication of initiatives already underway elsewhere and for greater attention to be paid to the identification of ways in which real value can be added; |
| --- | --- |

37.

Welcomes the adoption by the November 2014 Council of the EDA capability development plan (CDP) setting out the 16 priorities for capability development; welcomes, also, the EDA’s work through the collaborative database (Codaba) identifying the scope for cooperation among Member States and thus paving the way for the initiation of various forms of cooperation; urges the Member States, in developing their military capabilities, to pay due regard to these tools; calls for the strict avoidance of duplication of initiatives already underway elsewhere and for greater attention to be paid to the identification of ways in which real value can be added;

| 38. | Is surprised that there are as yet no EU-level tax incentives for cooperation and pooling; takes note of the call by the December 2013 Council for such arrangements to be explored, and finds it regrettable that, a year on, discussions have not yet produced any tangible measures in this regard; notes that the Belgian Government already grants VAT exemptions, on an ad hoc basis, for the preparatory phases of certain EDA projects (for example for satellite communications); believes that such exemptions should be applied systematically and extended to infrastructure and specific capability-related programmes, taking as a model the existing NATO mechanism or the existing EU mechanism for civilian research infrastructure; calls for the development of any other incentives that could encourage cooperation between European stakeholders; |
| --- | --- |

38.

Is surprised that there are as yet no EU-level tax incentives for cooperation and pooling; takes note of the call by the December 2013 Council for such arrangements to be explored, and finds it regrettable that, a year on, discussions have not yet produced any tangible measures in this regard; notes that the Belgian Government already grants VAT exemptions, on an ad hoc basis, for the preparatory phases of certain EDA projects (for example for satellite communications); believes that such exemptions should be applied systematically and extended to infrastructure and specific capability-related programmes, taking as a model the existing NATO mechanism or the existing EU mechanism for civilian research infrastructure; calls for the development of any other incentives that could encourage cooperation between European stakeholders;

| 39. | Welcomes the existence of cooperation models such as the European Airlift Transport Command (EATC) and applauds the fact that this system continues to expand to include new Member States; finds it regrettable that although such a model has existed for several years, it has not yet been adapted for use with other types of defence capabilities; calls for the EATC model to be applied to other spheres of operational support as a means of addressing serious capability shortfalls; |
| --- | --- |

39.

Welcomes the existence of cooperation models such as the European Airlift Transport Command (EATC) and applauds the fact that this system continues to expand to include new Member States; finds it regrettable that although such a model has existed for several years, it has not yet been adapted for use with other types of defence capabilities; calls for the EATC model to be applied to other spheres of operational support as a means of addressing serious capability shortfalls;

| 40. | Notes that minimal progress has been made on projects for pooling and sharing; welcomes the advances that have been made on air-to-air refuelling with the acquisition of a fleet of multirole tanker transport aircraft; finds it regrettable that very few Member States have so far participated in the project, and calls on those Member States which lack capability in this regard to become involved; takes the view that Member States should pursue the pooling and sharing of projects, focusing on the 16 capability areas they have identified with the EDA and the Military Staff of the European Union (EUMS) through the CSDP; |
| --- | --- |

40.

Notes that minimal progress has been made on projects for pooling and sharing; welcomes the advances that have been made on air-to-air refuelling with the acquisition of a fleet of multirole tanker transport aircraft; finds it regrettable that very few Member States have so far participated in the project, and calls on those Member States which lack capability in this regard to become involved; takes the view that Member States should pursue the pooling and sharing of projects, focusing on the 16 capability areas they have identified with the EDA and the Military Staff of the European Union (EUMS) through the CSDP;

| 41. | Notes the Council’s intention to develop projects for stepping up EU capabilities including, inter alia, remotely piloted aircraft systems (RPAS) and governmental satellite communications; notes that a regulatory framework is needed for the initial integration by 2016 of RPAS into Europe’s air traffic system, taking due account of civilian and military requirements, as well as the need to comply with international law; calls on the Commission to outline how the Horizon 2020 funds for civil-military research can be used for the insertion of RPAS into European airspace; |
| --- | --- |

41.

Notes the Council’s intention to develop projects for stepping up EU capabilities including, inter alia, remotely piloted aircraft systems (RPAS) and governmental satellite communications; notes that a regulatory framework is needed for the initial integration by 2016 of RPAS into Europe’s air traffic system, taking due account of civilian and military requirements, as well as the need to comply with international law; calls on the Commission to outline how the Horizon 2020 funds for civil-military research can be used for the insertion of RPAS into European airspace;

| 42. | Welcomes the progress made on EU satellite services (Galileo, Copernicus, EGNOS); considers that such space services, particularly Copernicus, should be put on an operational footing to help meet the high-resolution satellite imaging needs of CSDP missions and operations; welcomes the launch of the Ariane 6 project; finds it regrettable that, for technical and commercial reasons, the Union still buys Russian launch equipment, despite its aim of achieving a certain level of strategic autonomy, and highlights, therefore, the need to make progress on developing technologies that have both civilian and military uses and which will safeguard our independence; |
| --- | --- |

42.

Welcomes the progress made on EU satellite services (Galileo, Copernicus, EGNOS); considers that such space services, particularly Copernicus, should be put on an operational footing to help meet the high-resolution satellite imaging needs of CSDP missions and operations; welcomes the launch of the Ariane 6 project; finds it regrettable that, for technical and commercial reasons, the Union still buys Russian launch equipment, despite its aim of achieving a certain level of strategic autonomy, and highlights, therefore, the need to make progress on developing technologies that have both civilian and military uses and which will safeguard our independence;

| 43. | Calls for the Union to encourage Member States to meet NATO capacity targets, which require a minimum level of defence spending of 2 % of GDP and a minimum 20 % share of the defence budget for major equipment needs, including for research and development; |
| --- | --- |

43.

Calls for the Union to encourage Member States to meet NATO capacity targets, which require a minimum level of defence spending of 2 % of GDP and a minimum 20 % share of the defence budget for major equipment needs, including for research and development;

The defence industry

| 44. | Welcomes the Commission proposal aimed at improving SME access to the defence markets, which are highly specific at present for various reasons, namely: public purchasing is virtually the sole source of demand, the number of companies in the marketplace is limited, products spend a long time in development and then in service, and certain technologies are strategic in nature; |
| --- | --- |

44.

Welcomes the Commission proposal aimed at improving SME access to the defence markets, which are highly specific at present for various reasons, namely: public purchasing is virtually the sole source of demand, the number of companies in the marketplace is limited, products spend a long time in development and then in service, and certain technologies are strategic in nature;

| 45. | Takes note of the Commission communication of July 2013 entitled ‘Towards a more competitive and efficient defence and security sector’ and of the roadmap of June 2014 on the implementation thereof along with its proposals, in particular on improved implementation of the single market directives 2009/81/EC and 2009/43/EC, without prejudice to Member States’ sovereign rights as established under Article 346 TFEU; |
| --- | --- |

45.

Takes note of the Commission communication of July 2013 entitled ‘Towards a more competitive and efficient defence and security sector’ and of the roadmap of June 2014 on the implementation thereof along with its proposals, in particular on improved implementation of the single market directives 2009/81/EC and 2009/43/EC, without prejudice to Member States’ sovereign rights as established under Article 346 TFEU;

| 46. | Believes that all the measures in question depend on the prior joint determination of what falls within the European Defence Technological and Industrial Base (EDTIB) so that potential beneficiary companies or strategic activities can be targeted, with due regard for the capacity differences between the Member States’ defence industries; takes the view that this definition could be based, in particular, on a number of criteria, such as the development within the EU of equipment and technology, control by companies of the property and utilisation rights for the equipment and technology they develop, and the assurance in the event of foreign ownership that foreign owners do not have excessive voting rights, which would jeopardise control by companies over their activities; highlights the need to define the EU’s critical defence assets (i.e. key industrial capacities and critical technologies); |
| --- | --- |

46.

Believes that all the measures in question depend on the prior joint determination of what falls within the European Defence Technological and Industrial Base (EDTIB) so that potential beneficiary companies or strategic activities can be targeted, with due regard for the capacity differences between the Member States’ defence industries; takes the view that this definition could be based, in particular, on a number of criteria, such as the development within the EU of equipment and technology, control by companies of the property and utilisation rights for the equipment and technology they develop, and the assurance in the event of foreign ownership that foreign owners do not have excessive voting rights, which would jeopardise control by companies over their activities; highlights the need to define the EU’s critical defence assets (i.e. key industrial capacities and critical technologies);

| 47. | Recalls that with the entry into force of the Lisbon Treaty, the EU’s industrial, space and research policies extend to the defence remit; points out that Union programmes in other areas such as internal and border security, disaster management and development offer a significant prospect of jointly developing capabilities relevant to those policies and to the conduct of CSDP missions; calls on the Commission to establish permanent procedures for cooperation between the Commission, the EEAS, the EDA and the Member States in the fields of the common market, industry, space, research and development; calls on the Commission to create a permanent link between EU bodies and agencies in the areas of internal security (Frontex, Europol, ENISA) and external security and defence (European Defence Agency, EEAS); |
| --- | --- |

47.

Recalls that with the entry into force of the Lisbon Treaty, the EU’s industrial, space and research policies extend to the defence remit; points out that Union programmes in other areas such as internal and border security, disaster management and development offer a significant prospect of jointly developing capabilities relevant to those policies and to the conduct of CSDP missions; calls on the Commission to establish permanent procedures for cooperation between the Commission, the EEAS, the EDA and the Member States in the fields of the common market, industry, space, research and development; calls on the Commission to create a permanent link between EU bodies and agencies in the areas of internal security (Frontex, Europol, ENISA) and external security and defence (European Defence Agency, EEAS);

| 48. | Notes the Commission’s proposals for the better implementation of Directives 2009/81/EC (defence and security procurement) and 2009/43/EC (transfers of defence-related products within the internal market); considers it necessary to determine also what qualifies as equipment and technology of high strategic value and is covered by neither by Directive 2009/81/EC (equipment for essential security interests) nor Directive 2004/18/EC (equipment the use of which is related, but not specific, to the field of defence); believes that EU companies operating in this sector need specific legal and financial arrangements allowing them to be competitive, thereby safeguarding the strategic autonomy of the EU; |
| --- | --- |

48.

Notes the Commission’s proposals for the better implementation of Directives 2009/81/EC (defence and security procurement) and 2009/43/EC (transfers of defence-related products within the internal market); considers it necessary to determine also what qualifies as equipment and technology of high strategic value and is covered by neither by Directive 2009/81/EC (equipment for essential security interests) nor Directive 2004/18/EC (equipment the use of which is related, but not specific, to the field of defence); believes that EU companies operating in this sector need specific legal and financial arrangements allowing them to be competitive, thereby safeguarding the strategic autonomy of the EU;

| 49. | Notes the Council’s intention to implement European security of supply arrangements under which the Member States would engage in mutual assistance, responding rapidly to their corresponding defence requirements; is awaiting a Commission roadmap setting out the relevant implementation options for these arrangements and the green paper due to be published on controlling foreign investments in strategic defence companies; welcomes the adoption of the EDA’s enhanced framework arrangement for security of supply between Member States as an important voluntary, legally non-binding, mechanism for the Member States to enhance mutual support and assistance on security of supply; calls on the EDA and the Commission to develop jointly additional means and initiatives to promote EU-wide security of supply and support Member States in implementing the new framework arrangement; |
| --- | --- |

49.

Notes the Council’s intention to implement European security of supply arrangements under which the Member States would engage in mutual assistance, responding rapidly to their corresponding defence requirements; is awaiting a Commission roadmap setting out the relevant implementation options for these arrangements and the green paper due to be published on controlling foreign investments in strategic defence companies; welcomes the adoption of the EDA’s enhanced framework arrangement for security of supply between Member States as an important voluntary, legally non-binding, mechanism for the Member States to enhance mutual support and assistance on security of supply; calls on the EDA and the Commission to develop jointly additional means and initiatives to promote EU-wide security of supply and support Member States in implementing the new framework arrangement;

| 50. | Calls on the Commission to clearly identify and mobilise EU financial means and instruments aimed at assisting in the establishment of a European Common Defence Industry Market; |
| --- | --- |

50.

Calls on the Commission to clearly identify and mobilise EU financial means and instruments aimed at assisting in the establishment of a European Common Defence Industry Market;

| 51. | Welcomes the adoption of the changes to the Wassenaar regime’s export control lists with regard to surveillance and intrusion technologies which have recently also been implemented at EU level; stresses, however, that more is needed in order to prevent the uncontrolled production and export of technologies that can be used to attack the EU’s critical infrastructure and violate human rights; calls, therefore, on the Commission to come forward as soon as possible with a proposal for the revision of the dual-use export regulation; |
| --- | --- |

51.

Welcomes the adoption of the changes to the Wassenaar regime’s export control lists with regard to surveillance and intrusion technologies which have recently also been implemented at EU level; stresses, however, that more is needed in order to prevent the uncontrolled production and export of technologies that can be used to attack the EU’s critical infrastructure and violate human rights; calls, therefore, on the Commission to come forward as soon as possible with a proposal for the revision of the dual-use export regulation;

| 52. | Believes that no government can embark alone on genuinely large-scale research and technology (R&T) programmes; recalls the Council declaration of December 2008 on strengthening capabilities and the commitment by the Member States to achieve the collective target of 2 % of our defence spending on research funding; calls on the VP/HR and the head of the EDA to provide data on the current situation in this regard; welcomes, therefore, the Commission’s proposals for developing synergies between civilian and defence-related research; highlights, in this connection, the fact that the Horizon 2020 security research programme offers considerable possibilities for the development of capacities in this regard; calls on the Commission and the Member States to support the research mission which provides assistance to the Union’s external policies, including technological development in the area of dual-use technologies to enhance interoperability between civil protection and military forces, as stated in the specific programme establishing Horizon 2020; calls on the Commission and the Member States to include corresponding research activities in the annual work programmes; welcomes, also, the initiation of ‘preparatory actions’ and hopes that, in the realm of the CSDP, the next step will be funding, under the forthcoming multiannual financial framework, for a relevant research strand; highlights the importance of implementing a pilot project on CSDP research, to be conducted jointly by the Commission and the EDA, as proposed by Parliament in the 2015 budget in view of the agency implementing Union objectives and the Union’s budget; finds it regrettable, in this connection, that the Commission did not provide Parliament with an assessment of the potential of Article 185 TFEU, as requested in Parliament’s resolution of 21 November 2013 on the European Defence Technological and Industrial Base; |
| --- | --- |

52.

Believes that no government can embark alone on genuinely large-scale research and technology (R&T) programmes; recalls the Council declaration of December 2008 on strengthening capabilities and the commitment by the Member States to achieve the collective target of 2 % of our defence spending on research funding; calls on the VP/HR and the head of the EDA to provide data on the current situation in this regard; welcomes, therefore, the Commission’s proposals for developing synergies between civilian and defence-related research; highlights, in this connection, the fact that the Horizon 2020 security research programme offers considerable possibilities for the development of capacities in this regard; calls on the Commission and the Member States to support the research mission which provides assistance to the Union’s external policies, including technological development in the area of dual-use technologies to enhance interoperability between civil protection and military forces, as stated in the specific programme establishing Horizon 2020; calls on the Commission and the Member States to include corresponding research activities in the annual work programmes; welcomes, also, the initiation of ‘preparatory actions’ and hopes that, in the realm of the CSDP, the next step will be funding, under the forthcoming multiannual financial framework, for a relevant research strand; highlights the importance of implementing a pilot project on CSDP research, to be conducted jointly by the Commission and the EDA, as proposed by Parliament in the 2015 budget in view of the agency implementing Union objectives and the Union’s budget; finds it regrettable, in this connection, that the Commission did not provide Parliament with an assessment of the potential of Article 185 TFEU, as requested in Parliament’s resolution of 21 November 2013 on the European Defence Technological and Industrial Base;

| 53. | Calls, at the same time, for the utmost vigilance to be exercised, be it in relation to governance issues, intellectual property rights or the co-financing of, and rules for participation in, the preparatory action for defence; calls on the Member States to be fully involved in the decision-making process with a view to avoiding bureaucratic excesses and for it to be ensured that the programmes included address the strategic needs of the CSDP and the Member States; |
| --- | --- |

53.

Calls, at the same time, for the utmost vigilance to be exercised, be it in relation to governance issues, intellectual property rights or the co-financing of, and rules for participation in, the preparatory action for defence; calls on the Member States to be fully involved in the decision-making process with a view to avoiding bureaucratic excesses and for it to be ensured that the programmes included address the strategic needs of the CSDP and the Member States;

| 54. | Recalls the highly sensitive and strategic nature of defence research, for both industrial competitiveness and the strategic autonomy of the EU, and calls for the adoption of an appropriate intellectual property policy in connection with security and defence in order to protect the results of research; awaits proposals from the Commission, and also from the defence industries, on this point; |
| --- | --- |

54.

Recalls the highly sensitive and strategic nature of defence research, for both industrial competitiveness and the strategic autonomy of the EU, and calls for the adoption of an appropriate intellectual property policy in connection with security and defence in order to protect the results of research; awaits proposals from the Commission, and also from the defence industries, on this point;

| 55. | Notes the Commission’s proposals for promoting the introduction of common standards and certification procedures for defence equipment; awaits the EDA and Commission roadmap for the development of industrial standards for the defence sector, and the EDA and EASA options for improving the mutual recognition of military certification in the EU; finds regrettable the reluctance of European standardisation organisations to deliver standardisation seals for defence products; |
| --- | --- |

55.

Notes the Commission’s proposals for promoting the introduction of common standards and certification procedures for defence equipment; awaits the EDA and Commission roadmap for the development of industrial standards for the defence sector, and the EDA and EASA options for improving the mutual recognition of military certification in the EU; finds regrettable the reluctance of European standardisation organisations to deliver standardisation seals for defence products;

o

o o

| 56. | Instructs its President to forward this resolution to the President of the European Council, the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, the Council, the Commission, the governments and parliaments of the Member States, the Secretary-General of NATO, the President of the NATO Parliamentary Assembly, the Secretary-General of the United Nations, the Chairman-in-Office of the Organisation for Security and Cooperation in Europe (OSCE), the President of the OSCE Parliamentary Assembly, the Chair of the Assembly of the African Union and the Secretary-General of the Association of Southeast Asian Nations. |
| --- | --- |

56.

Instructs its President to forward this resolution to the President of the European Council, the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, the Council, the Commission, the governments and parliaments of the Member States, the Secretary-General of NATO, the President of the NATO Parliamentary Assembly, the Secretary-General of the United Nations, the Chairman-in-Office of the Organisation for Security and Cooperation in Europe (OSCE), the President of the OSCE Parliamentary Assembly, the Chair of the Assembly of the African Union and the Secretary-General of the Association of Southeast Asian Nations.

---

(1)  OJ L 146, 10.6.2009, p. 1.

(2)  OJ L 216, 20.8.2009, p. 76.

(3)  Texts adopted, P7_TA(2013)0513.

(4)  Texts adopted, P7_TA(2013)0514.

(5)  Texts adopted, P7_TA(2013)0380.

(6)  Texts adopted, P7_TA(2013)0381.

(7)  Texts adopted, P7_TA(2012)0457.

(8)  Texts adopted, P7_TA(2014)0286.

(9)  Texts adopted, P7_TA(2013)0278.

(10)  http://eeas.europa.eu/library/publications/2013/3/2013_eeas_review_en.pdf

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| 27.9.2016 | EN | Official Journal of the European Union | C 353/68 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/68

---

P8_TA(2015)0214

Financing the Common Security and Defence Policy

European Parliament resolution of 21 May 2015 on financing the Common Security and Defence Policy (2014/2258(INI))

(2016/C 353/13)

The European Parliament,

| — | having regard to Title V of the Treaty on European Union (TEU), in particular Articles 21, 24, 41, 42, 43, 44, 45, 46, |
| --- | --- |

—

having regard to Title V of the Treaty on European Union (TEU), in particular Articles 21, 24, 41, 42, 43, 44, 45, 46,

| — | having regard to the Treaty on the Functioning of the European Union (TFEU), |
| --- | --- |

—

having regard to the Treaty on the Functioning of the European Union (TFEU),

| — | 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 (1), |
| --- | --- |

—

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 (1),

| — | 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 (2), |
| --- | --- |

—

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 (2),

| — | having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3) and its subsequent modifications, |
| --- | --- |

—

having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3) and its subsequent modifications,

| — | having regard to the European Court of Auditors’ Special Report No 18/2012 entitled ‘European Union assistance to Kosovo related to the rule of law’, |
| --- | --- |

—

having regard to the European Court of Auditors’ Special Report No 18/2012 entitled ‘European Union assistance to Kosovo related to the rule of law’,

| — | having regard to the European Council conclusions of 18 December 2013, |
| --- | --- |

—

having regard to the European Council conclusions of 18 December 2013,

| — | having regard to the Council conclusions on the Common Security and Defence Policy of 25 November 2013 and 18 November 2014, |
| --- | --- |

—

having regard to the Council conclusions on the Common Security and Defence Policy of 25 November 2013 and 18 November 2014,

| — | having regard to the progress report of 7 July 2014 by the Vice-President/High Representative (VP/HR) and the Head of the European Defence Agency on the implementation of the European Council conclusions of December 2013, |
| --- | --- |

—

having regard to the progress report of 7 July 2014 by the Vice-President/High Representative (VP/HR) and the Head of the European Defence Agency on the implementation of the European Council conclusions of December 2013,

| — | having regard to the Joint Communication by the VP/HR and the Commission entitled ‘The EU’s Comprehensive Approach to External Conflicts and Crises’, and the related Council conclusions of 12 May 2014, |
| --- | --- |

—

having regard to the Joint Communication by the VP/HR and the Commission entitled ‘The EU’s Comprehensive Approach to External Conflicts and Crises’, and the related Council conclusions of 12 May 2014,

| — | having regard to the 2014 annual report and the 2013 financial report of the European Defence Agency, |
| --- | --- |

—

having regard to the 2014 annual report and the 2013 financial report of the European Defence Agency,

| — | having regard to its resolution of 3 April 2014 on the EU comprehensive approach and its implications for the coherence of EU external action (4), |
| --- | --- |

—

having regard to its resolution of 3 April 2014 on the EU comprehensive approach and its implications for the coherence of EU external action (4),

| — | having regard to the Presidency conclusions adopted by the European Council in Helsinki on 11 December 1999 (Headline Goal 2003) and to the Headline Goal 2010 approved by the Council on 17 May 2004, |
| --- | --- |

—

having regard to the Presidency conclusions adopted by the European Council in Helsinki on 11 December 1999 (Headline Goal 2003) and to the Headline Goal 2010 approved by the Council on 17 May 2004,

| — | having regard to the Civilian Headline Goal 2010 approved by the ministerial Civilian Capabilities Improvement Conference and noted by the General Affairs and External Relations Council on 19 November 2007, |
| --- | --- |

—

having regard to the Civilian Headline Goal 2010 approved by the ministerial Civilian Capabilities Improvement Conference and noted by the General Affairs and External Relations Council on 19 November 2007,

| — | having regard to Rule 52 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 52 of its Rules of Procedure,

| — | having regard to the joint deliberations of the Committee on Foreign Affairs and the Committee on Budgets under Rule 55 of the Rules of Procedure, |
| --- | --- |

—

having regard to the joint deliberations of the Committee on Foreign Affairs and the Committee on Budgets under Rule 55 of the Rules of Procedure,

| — | having regard to the report of the Committee on Foreign Affairs and the Committee on Budgets (A8-0136/2015), |
| --- | --- |

—

having regard to the report of the Committee on Foreign Affairs and the Committee on Budgets (A8-0136/2015),

| A. | whereas the increasingly challenging security environment within and outside the Union, characterised by new risks and threats which no Member State can cope with alone, calls for a strengthening of the CSDP to make it a more effective policy instrument and a real guarantee of the safety of EU citizens and the promotion of European interests and values; whereas the Union needs to make its external borders more secure; |
| --- | --- |

A.

whereas the increasingly challenging security environment within and outside the Union, characterised by new risks and threats which no Member State can cope with alone, calls for a strengthening of the CSDP to make it a more effective policy instrument and a real guarantee of the safety of EU citizens and the promotion of European interests and values; whereas the Union needs to make its external borders more secure;

| B. | whereas budget cuts in defence spending and existing duplications require the rethinking of the financing of CSDP missions and operations by using budget allocations in a better and more cost-efficient way while ensuring proper democratic scrutiny at EU institutional level of all missions and operations, whether civil or military; |
| --- | --- |

B.

whereas budget cuts in defence spending and existing duplications require the rethinking of the financing of CSDP missions and operations by using budget allocations in a better and more cost-efficient way while ensuring proper democratic scrutiny at EU institutional level of all missions and operations, whether civil or military;

| C. | whereas the European Council of December 2013 decided to examine the financial aspects of EU missions and operations, including the review of the Athena mechanism, in order to ensure procedures and rules that enable the Union to be faster, more flexible and efficient in the deployment of EU civilian missions and military operations; |
| --- | --- |

C.

whereas the European Council of December 2013 decided to examine the financial aspects of EU missions and operations, including the review of the Athena mechanism, in order to ensure procedures and rules that enable the Union to be faster, more flexible and efficient in the deployment of EU civilian missions and military operations;

| D. | whereas according to the provisions of the Lisbon Treaty the EU High Representative is also a Vice-President of the Commission and head of the European Defence Agency, as well as chairing the Foreign Affairs Council of the European Union; whereas according to Article 45 TEU the European Defence Agency ‘shall carry out its tasks in liaison with the Commission where necessary’; |
| --- | --- |

D.

whereas according to the provisions of the Lisbon Treaty the EU High Representative is also a Vice-President of the Commission and head of the European Defence Agency, as well as chairing the Foreign Affairs Council of the European Union; whereas according to Article 45 TEU the European Defence Agency ‘shall carry out its tasks in liaison with the Commission where necessary’;

| 1. | Notes that the EU and its Member States are major funders of the various peace and crisis management operations throughout the world while CSDP civilian and military missions and operations constitute a very small share of all funding; acknowledges the importance of CSDP interventions for achieving peace, while encouraging Member States to adopt a more pronounced stance towards conflict prevention, post-conflict reconstruction and maintenance of sustainable peace in conflict-ridden zones; is convinced that the EU cannot allow itself to focus exclusively on instruments for a post-crisis context or for supporting exit from crisis; |
| --- | --- |

1.

Notes that the EU and its Member States are major funders of the various peace and crisis management operations throughout the world while CSDP civilian and military missions and operations constitute a very small share of all funding; acknowledges the importance of CSDP interventions for achieving peace, while encouraging Member States to adopt a more pronounced stance towards conflict prevention, post-conflict reconstruction and maintenance of sustainable peace in conflict-ridden zones; is convinced that the EU cannot allow itself to focus exclusively on instruments for a post-crisis context or for supporting exit from crisis;

| 2. | Calls on the VP/HR and the Member States to unleash the full potential of the Lisbon Treaty, and especially of its Article 44 on the implementation of a CSDP task by a group of Member States and Article 46 on permanent structured cooperation, with regard to a faster and more flexible use of the CSDP missions and operations; |
| --- | --- |

2.

Calls on the VP/HR and the Member States to unleash the full potential of the Lisbon Treaty, and especially of its Article 44 on the implementation of a CSDP task by a group of Member States and Article 46 on permanent structured cooperation, with regard to a faster and more flexible use of the CSDP missions and operations;

| 3. | Notes with concern that despite a combined yearly defence budget of some EUR 190 billion, the Member States are still unable to meet the 1999 Helsinki Headline Goals; recalls the ambitious civilian headline goals set by the EU; calls for the EU to be strengthened as a real actor in defence in the context of NATO, and regrets the lack of a doctrine which operationalises the tasks listed in Article 43 TEU (the expanded ‘Petersberg tasks’); strongly advocates closer security and defence coordination and cooperation within a NATO context between Member States and at EU level, and in particular the pooling and sharing of resources, capabilities and assets; calls on the Commission to carry out an analysis of security and defence challenges and requirements as a matter of urgency; |
| --- | --- |

3.

Notes with concern that despite a combined yearly defence budget of some EUR 190 billion, the Member States are still unable to meet the 1999 Helsinki Headline Goals; recalls the ambitious civilian headline goals set by the EU; calls for the EU to be strengthened as a real actor in defence in the context of NATO, and regrets the lack of a doctrine which operationalises the tasks listed in Article 43 TEU (the expanded ‘Petersberg tasks’); strongly advocates closer security and defence coordination and cooperation within a NATO context between Member States and at EU level, and in particular the pooling and sharing of resources, capabilities and assets; calls on the Commission to carry out an analysis of security and defence challenges and requirements as a matter of urgency;

| 4. | Notes that the level of funding for civilian CSDP missions under the CFSP chapter of the EU budget has declined over the past years and is expected to stay stable as part of the multiannual financial framework 2014-2020; regrets that civilian missions have been affected by the generalised shortfall of payment appropriations, obliging the Commission to delay the payment of EUR 22 million to 2015 as a mitigating measure; welcomes, however, the fact that some EUR 16 million have been identified as possible savings, allowing further missions to be funded should the need arise in the near future; |
| --- | --- |

4.

Notes that the level of funding for civilian CSDP missions under the CFSP chapter of the EU budget has declined over the past years and is expected to stay stable as part of the multiannual financial framework 2014-2020; regrets that civilian missions have been affected by the generalised shortfall of payment appropriations, obliging the Commission to delay the payment of EUR 22 million to 2015 as a mitigating measure; welcomes, however, the fact that some EUR 16 million have been identified as possible savings, allowing further missions to be funded should the need arise in the near future;

Cost saving/efficiency-increasing initiatives

| 5. | Welcomes the concrete measures and pragmatic solutions introduced recently by the Commission within the existing framework of financial rules in order to shorten financial procedures concerning the CSDP civilian missions; deplores, however, the still significant delays in procuring essential equipment and services to the CSDP missions under the CFSP framework, which are due partly to the often slow process of adopting decisions by the Council but also to a certain lack of a consolidated approach on the application of financial rules to CSDP missions and the resulting negative effect on the missions’ functioning and staff, and potentially on the safety of missions; |
| --- | --- |

5.

Welcomes the concrete measures and pragmatic solutions introduced recently by the Commission within the existing framework of financial rules in order to shorten financial procedures concerning the CSDP civilian missions; deplores, however, the still significant delays in procuring essential equipment and services to the CSDP missions under the CFSP framework, which are due partly to the often slow process of adopting decisions by the Council but also to a certain lack of a consolidated approach on the application of financial rules to CSDP missions and the resulting negative effect on the missions’ functioning and staff, and potentially on the safety of missions;

| 6. | Urges the Commission to mitigate these shortfalls by preparing a specific template for the financial rules for civilian CSDP missions and by adapting existing guidelines to their needs, in order to facilitate the rapid, flexible and more efficient conduct of missions, while guaranteeing sound financial management of EU resources and an adequate protection of the Union’s financial interests; takes the view that the budget should be delegated to the Civilian Operation Commander, in the same way as has been done for heads of EU delegations; |
| --- | --- |

6.

Urges the Commission to mitigate these shortfalls by preparing a specific template for the financial rules for civilian CSDP missions and by adapting existing guidelines to their needs, in order to facilitate the rapid, flexible and more efficient conduct of missions, while guaranteeing sound financial management of EU resources and an adequate protection of the Union’s financial interests; takes the view that the budget should be delegated to the Civilian Operation Commander, in the same way as has been done for heads of EU delegations;

| 7. | Calls on the Commission and the Member States to conduct an annual evaluation of the overall costs of security and defence policies, including a transparent presentation of procurement procedures, with a view to managing the budget allocated to this field as efficiently as possible in the future; |
| --- | --- |

7.

Calls on the Commission and the Member States to conduct an annual evaluation of the overall costs of security and defence policies, including a transparent presentation of procurement procedures, with a view to managing the budget allocated to this field as efficiently as possible in the future;

| 8. | Strongly encourages the setting-up of a Shared Services Centre (SSC), together with an Integrated Resource Management System (IRMS), as a way to improve the speed of deployment and cost-efficiency of civilian missions; deplores the fact that to date this initiative has resulted in a stalemate; notes that a mission support platform is currently being considered, but calls on the Commission and the EEAS to take further steps towards establishing a genuine SSC; |
| --- | --- |

8.

Strongly encourages the setting-up of a Shared Services Centre (SSC), together with an Integrated Resource Management System (IRMS), as a way to improve the speed of deployment and cost-efficiency of civilian missions; deplores the fact that to date this initiative has resulted in a stalemate; notes that a mission support platform is currently being considered, but calls on the Commission and the EEAS to take further steps towards establishing a genuine SSC;

| 9. | Believes that the chronic constraints of the EEAS/Civilian Planning and Conduct Capability’s administrative budget should be alleviated, as the yearly budget allocation remains too small to cater for all planning, conduct and support tasks, notably at a time when more missions are being launched almost simultaneously; |
| --- | --- |

9.

Believes that the chronic constraints of the EEAS/Civilian Planning and Conduct Capability’s administrative budget should be alleviated, as the yearly budget allocation remains too small to cater for all planning, conduct and support tasks, notably at a time when more missions are being launched almost simultaneously;

| 10. | Takes the view that the permanent CSDP Warehouse, which currently only serves new CSDP civilian missions, should be quickly upgraded by enlarging its scope to include existing missions, improving the availability of stored equipment and enlarging, as well, the diversity of the necessary equipment; proposes that the CSDP Warehouse be managed by the future SSC; |
| --- | --- |

10.

Takes the view that the permanent CSDP Warehouse, which currently only serves new CSDP civilian missions, should be quickly upgraded by enlarging its scope to include existing missions, improving the availability of stored equipment and enlarging, as well, the diversity of the necessary equipment; proposes that the CSDP Warehouse be managed by the future SSC;

| 11. | Stresses the need for adequate staffing of missions in line with the various commitments made by Member States in this respect (e.g. the Civilian Headline Goal 2010 or the Multi-Annual Civilian Capability Development Plan); deplores, however, the difficulties encountered in recruiting — and keeping — a sufficient number of qualified personnel for CSDP missions; encourages the widespread use of rapidly deployable Civilian Response Teams (CRTs), which would increase the rapid reaction capacity of the EU, facilitate swift build-up of missions and contribute to the effectiveness of its crisis management response; |
| --- | --- |

11.

Stresses the need for adequate staffing of missions in line with the various commitments made by Member States in this respect (e.g. the Civilian Headline Goal 2010 or the Multi-Annual Civilian Capability Development Plan); deplores, however, the difficulties encountered in recruiting — and keeping — a sufficient number of qualified personnel for CSDP missions; encourages the widespread use of rapidly deployable Civilian Response Teams (CRTs), which would increase the rapid reaction capacity of the EU, facilitate swift build-up of missions and contribute to the effectiveness of its crisis management response;

| 12. | Regrets the opacity and high costs that prevail in the selection process of the private companies chosen to ensure the security of the CSDP civilian missions’ personnel; calls for the creation of a security framework contract specific to CSDP civilian missions, in order to lower the fees charged by private security companies and make the selection process more transparent; believes that European companies should be given priority in this context; |
| --- | --- |

12.

Regrets the opacity and high costs that prevail in the selection process of the private companies chosen to ensure the security of the CSDP civilian missions’ personnel; calls for the creation of a security framework contract specific to CSDP civilian missions, in order to lower the fees charged by private security companies and make the selection process more transparent; believes that European companies should be given priority in this context;

Coherence and complementarity

| 13. | Considers that the CSDP is part of the broader external CFSP dimension and of EU external action as a whole, as well as of the internal dimension of the common market and industry, space, research and development policies; strongly believes that coherence and complementarity should be ensured between the various instruments so as to achieve economies of scale and maximise the impact of EU spending; is convinced that the EU has more tools and leverage potential than any other supranational institution, given that its security and defence policy can be reinforced by a comprehensive approach with other types of EU instruments and financing mechanisms; believes, therefore, that CFSP resources should be used in a smarter way, notably through enhanced coordination between CSDP instruments and the different EU funding programmes managed by the Commission; |
| --- | --- |

13.

Considers that the CSDP is part of the broader external CFSP dimension and of EU external action as a whole, as well as of the internal dimension of the common market and industry, space, research and development policies; strongly believes that coherence and complementarity should be ensured between the various instruments so as to achieve economies of scale and maximise the impact of EU spending; is convinced that the EU has more tools and leverage potential than any other supranational institution, given that its security and defence policy can be reinforced by a comprehensive approach with other types of EU instruments and financing mechanisms; believes, therefore, that CFSP resources should be used in a smarter way, notably through enhanced coordination between CSDP instruments and the different EU funding programmes managed by the Commission;

| 14. | Calls for better military-civilian synergies where appropriate, and in particular for them to be taken into account at the beginning of the planning processes, notably in the areas of premises, medical services, logistics, transport and the security of missions, while respecting the different chains of command and clearly distinguishing between the natures, objectives and modes of functioning of civilian missions and military operations; |
| --- | --- |

14.

Calls for better military-civilian synergies where appropriate, and in particular for them to be taken into account at the beginning of the planning processes, notably in the areas of premises, medical services, logistics, transport and the security of missions, while respecting the different chains of command and clearly distinguishing between the natures, objectives and modes of functioning of civilian missions and military operations;

| 15. | Underlines the potential savings which would derive from fostering synergies at EU level in the military field, including transport, training and medical aid; highlights the role of the European Defence Agency in its mission of fostering interoperability and synergies in defence equipment and deployment capabilities among EU Member States, but strongly deplores the fact that, while headed by the VP/HR, it remains under the authority of the Council and fully funded from outside the Union budget, thus escaping European democratic scrutiny; |
| --- | --- |

15.

Underlines the potential savings which would derive from fostering synergies at EU level in the military field, including transport, training and medical aid; highlights the role of the European Defence Agency in its mission of fostering interoperability and synergies in defence equipment and deployment capabilities among EU Member States, but strongly deplores the fact that, while headed by the VP/HR, it remains under the authority of the Council and fully funded from outside the Union budget, thus escaping European democratic scrutiny;

| 16. | Welcomes the review of Crisis Management Procedures (CMP) agreed in 2013, as it led to improvements in the planning and launching of CSDP missions; stresses, however, that more needs to be done to overcome the persistent ‘silos’ separating different parts of the EU foreign policy machinery; |
| --- | --- |

16.

Welcomes the review of Crisis Management Procedures (CMP) agreed in 2013, as it led to improvements in the planning and launching of CSDP missions; stresses, however, that more needs to be done to overcome the persistent ‘silos’ separating different parts of the EU foreign policy machinery;

| 17. | Calls on the Commission to set up permanent financial procedures for the cooperation between the Commission, the EEAS, the EDA, the ESA and Member States in the fields of CSDP and common market, industry, space, research and development policies; calls on the Commission and Council to establish permanent financial rules to link EU actors from the areas of internal security (e.g. Frontex, Europol, ENISA) with external defence (e.g. EDA, EEAS); |
| --- | --- |

17.

Calls on the Commission to set up permanent financial procedures for the cooperation between the Commission, the EEAS, the EDA, the ESA and Member States in the fields of CSDP and common market, industry, space, research and development policies; calls on the Commission and Council to establish permanent financial rules to link EU actors from the areas of internal security (e.g. Frontex, Europol, ENISA) with external defence (e.g. EDA, EEAS);

| 18. | Welcomes the implementation of a pilot project on CSDP research undertaken jointly by the Commission and the EDA, as proposed by Parliament in the 2015 budget with a view to the Agency implementing the Union’s objectives and budget; regrets in this context that the Commission did not provide Parliament with an assessment of the potential of Article 185 TFEU as requested in its resolution of 21 November 2013 on the European Defence Technological and Industrial Base (5); |
| --- | --- |

18.

Welcomes the implementation of a pilot project on CSDP research undertaken jointly by the Commission and the EDA, as proposed by Parliament in the 2015 budget with a view to the Agency implementing the Union’s objectives and budget; regrets in this context that the Commission did not provide Parliament with an assessment of the potential of Article 185 TFEU as requested in its resolution of 21 November 2013 on the European Defence Technological and Industrial Base (5);

| 19. | Welcomes the Commission’s Implementation Roadmap for Communication on European Defence and Security Sector adopted on 24 June 2014; calls on the Commission in this regard to outline in a stakeholder assessment in which ways the potential beneficiaries as well as national and regional administrations are ready to make use of the measures referred to (ESIF, ERDF, ESF, INTERREG V); regrets in this regard that the Commission’s proposals may have come too late to influence the ongoing resource allocation of national and regional administrations or re-channel EU funds serving a stronger European Defence Technological and Industrial Base (EDTIB); |
| --- | --- |

19.

Welcomes the Commission’s Implementation Roadmap for Communication on European Defence and Security Sector adopted on 24 June 2014; calls on the Commission in this regard to outline in a stakeholder assessment in which ways the potential beneficiaries as well as national and regional administrations are ready to make use of the measures referred to (ESIF, ERDF, ESF, INTERREG V); regrets in this regard that the Commission’s proposals may have come too late to influence the ongoing resource allocation of national and regional administrations or re-channel EU funds serving a stronger European Defence Technological and Industrial Base (EDTIB);

| 20. | Welcomes the ‘Train and Equip’ initiative, which would ensure the capacity-building of partners, as part of a transition or exit strategy, by facilitating the financing of various forms of hardware and non-lethal equipment for security and defence forces of third countries, and supports a joint approach by the EEAS and the Commission on the matter; supports the creation of project cells within which interested Member States or third countries could contribute and which would help ensure quick delivery and buy-in of security needs for host countries by providing project support, and takes the view that such cells should be systematically made use of; |
| --- | --- |

20.

Welcomes the ‘Train and Equip’ initiative, which would ensure the capacity-building of partners, as part of a transition or exit strategy, by facilitating the financing of various forms of hardware and non-lethal equipment for security and defence forces of third countries, and supports a joint approach by the EEAS and the Commission on the matter; supports the creation of project cells within which interested Member States or third countries could contribute and which would help ensure quick delivery and buy-in of security needs for host countries by providing project support, and takes the view that such cells should be systematically made use of;

| 21. | Welcomes the Commission proposals aimed at improving the implementation of Directive 2009/81/EC (on public procurement contracts) and Directive 2009/43/EC (on transfers of defence-related products on the internal market); calls on the Commission to bear in mind that European undertakings operating in the field of defence need special judicial and financial arrangements to enable them to be competitive and to support national efforts to bolster defence capabilities; |
| --- | --- |

21.

Welcomes the Commission proposals aimed at improving the implementation of Directive 2009/81/EC (on public procurement contracts) and Directive 2009/43/EC (on transfers of defence-related products on the internal market); calls on the Commission to bear in mind that European undertakings operating in the field of defence need special judicial and financial arrangements to enable them to be competitive and to support national efforts to bolster defence capabilities;

Financing military operations

| 22. | Acknowledges that military operations are financed by the Member States outside the EU budget and that their common costs are covered by the Athena mechanism; underlines that Athena is crucial to the deployment of those operations and is an instrument of solidarity between Member States, encouraging them, especially those lacking financial and operational resources, to contribute to CSDP operations; regrets, however, that the actual proportion of the common costs remains very low (estimated at approximately 10-15 % of all costs) and that the high proportion of nation-borne costs and responsibilities in military operations based on the ‘costs lie where they fall’ principle is counter to the principles of solidarity and burden-sharing, and further deters Member States from taking an active part in CSDP operations; is worried that this state of affairs, especially in the context of the Member States’ lack of willingness to participate in the operations’ force generation, hampers the rapid deployment of CSDP operations and jeopardises their overall efficiency; believes that the long-term financing of military missions should be ensured; |
| --- | --- |

22.

Acknowledges that military operations are financed by the Member States outside the EU budget and that their common costs are covered by the Athena mechanism; underlines that Athena is crucial to the deployment of those operations and is an instrument of solidarity between Member States, encouraging them, especially those lacking financial and operational resources, to contribute to CSDP operations; regrets, however, that the actual proportion of the common costs remains very low (estimated at approximately 10-15 % of all costs) and that the high proportion of nation-borne costs and responsibilities in military operations based on the ‘costs lie where they fall’ principle is counter to the principles of solidarity and burden-sharing, and further deters Member States from taking an active part in CSDP operations; is worried that this state of affairs, especially in the context of the Member States’ lack of willingness to participate in the operations’ force generation, hampers the rapid deployment of CSDP operations and jeopardises their overall efficiency; believes that the long-term financing of military missions should be ensured;

| 23. | Deplores, in this context, that the review of the Athena mechanism, which was due to be carried out by the end of 2014, has produced only very limited results, such as the organisation of a form of pre-financing of certain costs to speed up deployment; regrets that the Council did not reach an agreement on the inclusion of funding for the cost of the strategic deployment of EU battlegroups in the list of common costs systematically borne by Athena, only adopting instead a renewable decision for a two-year period; calls on the next European Council on Defence to consider a further expansion of the common costs eligible under Athena, such as the automatic financing of expenditure on CSDP operational and mission deployment (infrastructure for the accommodation of forces, expenses relating to the establishment of points of entry for troops into theatres of operations and security stocks of food and fuel where necessary); |
| --- | --- |

23.

Deplores, in this context, that the review of the Athena mechanism, which was due to be carried out by the end of 2014, has produced only very limited results, such as the organisation of a form of pre-financing of certain costs to speed up deployment; regrets that the Council did not reach an agreement on the inclusion of funding for the cost of the strategic deployment of EU battlegroups in the list of common costs systematically borne by Athena, only adopting instead a renewable decision for a two-year period; calls on the next European Council on Defence to consider a further expansion of the common costs eligible under Athena, such as the automatic financing of expenditure on CSDP operational and mission deployment (infrastructure for the accommodation of forces, expenses relating to the establishment of points of entry for troops into theatres of operations and security stocks of food and fuel where necessary);

| 24. | Supports initiatives to explore the possibility of attracting and managing financial contributions from third countries or international organisations within Athena; also supports the option of ‘joint financing’, whereby a smaller number of participating countries would finance some operational costs of the missions, subject to the condition that their contributions are managed by Athena and supplement rather than replace the common costs; |
| --- | --- |

24.

Supports initiatives to explore the possibility of attracting and managing financial contributions from third countries or international organisations within Athena; also supports the option of ‘joint financing’, whereby a smaller number of participating countries would finance some operational costs of the missions, subject to the condition that their contributions are managed by Athena and supplement rather than replace the common costs;

| 25. | Recalls that the Lisbon Treaty provides the EU with new CSDP provisions which are yet untapped; encourages the Council to make use of Article 44 TEU, which enables a group of willing Member States to go ahead with the implementation of a CSDP task; considers that there is an urgent need for a faster decision-making process; takes the view that the ad hoc funding mechanisms for a military operation should cover more than the traditional common costs reimbursed by Athena; |
| --- | --- |

25.

Recalls that the Lisbon Treaty provides the EU with new CSDP provisions which are yet untapped; encourages the Council to make use of Article 44 TEU, which enables a group of willing Member States to go ahead with the implementation of a CSDP task; considers that there is an urgent need for a faster decision-making process; takes the view that the ad hoc funding mechanisms for a military operation should cover more than the traditional common costs reimbursed by Athena;

| 26. | Calls on the Council to initiate, during the current budget year, the setting-up of the start-up fund (foreseen by Article 41(3) TEU) for the urgent financing of the initial phases of military operations, which could also serve as a strong tool for capacity development; also calls on the Council to put forward a proposal on how in a crisis situation the consultation of Parliament can be carried out quickly; notes that, while civilian missions benefit from a dedicated budget for preparatory measures, the deployment and efficiency of military missions will remain structurally hindered as long as this possibility is not used; strongly encourages Member States to engage in the permanent structured cooperation provided for by Article 46 TEU, through which the urgently needed improvement in the EU’s rapid reaction capability would also be achieved considerably more quickly; regrets in this regard the lack of substance in the Council’s Policy Framework for Systematic and Long-Term Defence Cooperation adopted on 18 November 2014, as this paper does no more than describe current practices; calls, therefore, on the Commission to put forward the necessary proposal to clarify how the EU budget can facilitate the establishment of the permanent structured cooperation (PESCO) and the work of military peacetime cooperation within the PESCO framework; |
| --- | --- |

26.

Calls on the Council to initiate, during the current budget year, the setting-up of the start-up fund (foreseen by Article 41(3) TEU) for the urgent financing of the initial phases of military operations, which could also serve as a strong tool for capacity development; also calls on the Council to put forward a proposal on how in a crisis situation the consultation of Parliament can be carried out quickly; notes that, while civilian missions benefit from a dedicated budget for preparatory measures, the deployment and efficiency of military missions will remain structurally hindered as long as this possibility is not used; strongly encourages Member States to engage in the permanent structured cooperation provided for by Article 46 TEU, through which the urgently needed improvement in the EU’s rapid reaction capability would also be achieved considerably more quickly; regrets in this regard the lack of substance in the Council’s Policy Framework for Systematic and Long-Term Defence Cooperation adopted on 18 November 2014, as this paper does no more than describe current practices; calls, therefore, on the Commission to put forward the necessary proposal to clarify how the EU budget can facilitate the establishment of the permanent structured cooperation (PESCO) and the work of military peacetime cooperation within the PESCO framework;

| 27. | Is surprised that there are as yet no European-level tax incentives for cooperation and pooling; takes note of the call by the December 2013 Council for such arrangements to be explored, and finds it regrettable that, a year on, discussions have not yet produced any tangible measures in this regard; notes that the Belgian Government already grants VAT exemptions, on an ad hoc basis, to the preparatory phases of certain EDA projects, e.g. for satellite communications; believes that such exemptions should be applied as a matter of course and should be extended to infrastructure and to specific capability-related programmes, taking as a model the existing mechanism within NATO or the existing EU mechanism for civilian research infrastructures; calls for the development of any other incentive that could encourage capability cooperation between Europeans; |
| --- | --- |

27.

Is surprised that there are as yet no European-level tax incentives for cooperation and pooling; takes note of the call by the December 2013 Council for such arrangements to be explored, and finds it regrettable that, a year on, discussions have not yet produced any tangible measures in this regard; notes that the Belgian Government already grants VAT exemptions, on an ad hoc basis, to the preparatory phases of certain EDA projects, e.g. for satellite communications; believes that such exemptions should be applied as a matter of course and should be extended to infrastructure and to specific capability-related programmes, taking as a model the existing mechanism within NATO or the existing EU mechanism for civilian research infrastructures; calls for the development of any other incentive that could encourage capability cooperation between Europeans;

Transparency and accountability

| 28. | Stresses that transparency and accountability are essential requirements not only for democratic scrutiny but also for the adequate functioning, and the credibility, of missions carried out under the EU flag; reiterates the importance attached by Parliament to exercising oversight over the way the different CSDP missions and operations are budgeted; welcomes the reporting mechanisms provided for by the interinstitutional agreement of 2 December 2013, such as the quarterly reports on the CFSP budget and the joint consultation meetings on the CFSP; welcomes the commitment made by the VP/HR to breathe new life into the latter meetings and to introduce an appropriate degree of flexibility regarding their scope in order to keep Parliament fully informed on military missions and on the work and agenda of the Political and Security Committee; maintains that any improvement in the flexibility and efficiency of financing and undertaking missions and operations must not compromise the achieved positive developments with regard to transparency and accountability in CSDP interventions; calls on the Commission to make an extensive interpretation of Article 49(1)(g) of the Financial Regulation and to propose specific lines for each civilian CSDP mission under the CFSP chapter, and to automatically include in the annual activity report a breakdown of each mission on the basis of participants and costs incurred; |
| --- | --- |

28.

Stresses that transparency and accountability are essential requirements not only for democratic scrutiny but also for the adequate functioning, and the credibility, of missions carried out under the EU flag; reiterates the importance attached by Parliament to exercising oversight over the way the different CSDP missions and operations are budgeted; welcomes the reporting mechanisms provided for by the interinstitutional agreement of 2 December 2013, such as the quarterly reports on the CFSP budget and the joint consultation meetings on the CFSP; welcomes the commitment made by the VP/HR to breathe new life into the latter meetings and to introduce an appropriate degree of flexibility regarding their scope in order to keep Parliament fully informed on military missions and on the work and agenda of the Political and Security Committee; maintains that any improvement in the flexibility and efficiency of financing and undertaking missions and operations must not compromise the achieved positive developments with regard to transparency and accountability in CSDP interventions; calls on the Commission to make an extensive interpretation of Article 49(1)(g) of the Financial Regulation and to propose specific lines for each civilian CSDP mission under the CFSP chapter, and to automatically include in the annual activity report a breakdown of each mission on the basis of participants and costs incurred;

| 29. | Looks forward to initiatives which would bring clarity and consistency to the financing and operating rules applying to civilian missions; welcomes, in the light of the ongoing discussion on flexibility in the financial rules, the commitment by the Commission to prepare a specific template for all CSDP missions, and to adapt the existing guidelines to their needs; |
| --- | --- |

29.

Looks forward to initiatives which would bring clarity and consistency to the financing and operating rules applying to civilian missions; welcomes, in the light of the ongoing discussion on flexibility in the financial rules, the commitment by the Commission to prepare a specific template for all CSDP missions, and to adapt the existing guidelines to their needs;

Match words with deeds

| 30. | Encourages the VP/HR to take on leadership regarding the CSDP and to play a steering role in breaking down ‘silos’ by ensuring coordination between the Council, the Commission and the EEAS and guaranteeing coherence within the two latter bodies; suggests that EU Special Representatives could be entrusted with a mandate to improve dialogue and cooperation between the various EU players on the ground, in order to increase the coherence of EU action and turn the multiple sources of funding from a challenge into an asset; |
| --- | --- |

30.

Encourages the VP/HR to take on leadership regarding the CSDP and to play a steering role in breaking down ‘silos’ by ensuring coordination between the Council, the Commission and the EEAS and guaranteeing coherence within the two latter bodies; suggests that EU Special Representatives could be entrusted with a mandate to improve dialogue and cooperation between the various EU players on the ground, in order to increase the coherence of EU action and turn the multiple sources of funding from a challenge into an asset;

| 31. | Takes the view that the next European Council on Defence should seize the opportunity to hold an in-depth discussion and produce concrete proposals on reforming the financial arrangements for CSDP missions and operations, in order to make them more efficient and successful; urges the Member States to deliver on the commitments made at the European Council of December 2013; considers it necessary for the next European Council on Defence to take concrete steps to improve the EU’s defence capabilities in a manner complementing NATO, to maintain and consolidate the European Defence Agency, and to provide support for a common industrial and technological base; |
| --- | --- |

31.

Takes the view that the next European Council on Defence should seize the opportunity to hold an in-depth discussion and produce concrete proposals on reforming the financial arrangements for CSDP missions and operations, in order to make them more efficient and successful; urges the Member States to deliver on the commitments made at the European Council of December 2013; considers it necessary for the next European Council on Defence to take concrete steps to improve the EU’s defence capabilities in a manner complementing NATO, to maintain and consolidate the European Defence Agency, and to provide support for a common industrial and technological base;

| 32. | Calls on the Commission to support the efforts made by the Member States to put into effect the decisions adopted by the European Council on bolstering defence capabilities, bearing in mind the budgetary constraints facing some Member States; |
| --- | --- |

32.

Calls on the Commission to support the efforts made by the Member States to put into effect the decisions adopted by the European Council on bolstering defence capabilities, bearing in mind the budgetary constraints facing some Member States;

o

o o

| 33. | Instructs its President to forward this resolution to the President of the European Council, the VP/HR, the Council, the Commission, the governments and parliaments of the Member States, the Secretary-General of NATO and the President of the NATO Parliamentary Assembly. |
| --- | --- |

33.

Instructs its President to forward this resolution to the President of the European Council, the VP/HR, the Council, the Commission, the governments and parliaments of the Member States, the Secretary-General of NATO and the President of the NATO Parliamentary Assembly.

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(1)  OJ L 347, 20.12.2013, p. 884.

(2)  OJ C 373, 20.12.2013, p. 1.

(3)  OJ L 298, 26.10.2012, p. 1.

(4)  Texts adopted, P7_TA(2014)0286.

(5)  Texts adopted, P7_TA(2013)0514.

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| 27.9.2016 | EN | Official Journal of the European Union | C 353/74 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/74

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P8_TA(2015)0215

Security and defence capabilities in Europe

European Parliament resolution of 21 May 2015 on the impact of developments in European defence markets on the security and defence capabilities in Europe (2015/2037(INI))

(2016/C 353/14)

The European Parliament,

| — | having regard to Title V of the Treaty on European Union (TEU), |
| --- | --- |

—

having regard to Title V of the Treaty on European Union (TEU),

| — | having regard to European Council conclusions of 19-20 December 2013 on the Common Security and Defence Policy, |
| --- | --- |

—

having regard to European Council conclusions of 19-20 December 2013 on the Common Security and Defence Policy,

| — | having regard to the Council conclusions of 18 November 2014 on Common Security and Defence Policy, |
| --- | --- |

—

having regard to the Council conclusions of 18 November 2014 on Common Security and Defence Policy,

| — | having regard to the Commission communication of 24 July 2013 entitled ‘Towards a more competitive and efficient defence and security sector’ (COM(2013)0542), and the related Implementation Roadmap of 24 June 2014 (COM(2014)0387), |
| --- | --- |

—

having regard to the Commission communication of 24 July 2013 entitled ‘Towards a more competitive and efficient defence and security sector’ (COM(2013)0542), and the related Implementation Roadmap of 24 June 2014 (COM(2014)0387),

| — | having regard to Directive 2009/43/EC of the European Parliament and of the Council of 6 May 2009 simplifying terms and conditions of transfers of defence-related products within the Community (1), |
| --- | --- |

—

having regard to Directive 2009/43/EC of the European Parliament and of the Council of 6 May 2009 simplifying terms and conditions of transfers of defence-related products within the Community (1),

| — | having regard to Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security, and amending Directives 2004/17/EC and 2004/18/EC (2), |
| --- | --- |

—

having regard to Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security, and amending Directives 2004/17/EC and 2004/18/EC (2),

| — | having regard to Council Common Position 2008/944/CFSP of 8 December 2008 defining common rules governing control of exports of military technology and equipment, |
| --- | --- |

—

having regard to Council Common Position 2008/944/CFSP of 8 December 2008 defining common rules governing control of exports of military technology and equipment,

| — | having regard to the Policy Framework for Systematic and Long-Term Defence Cooperation, adopted by the Council on 18 November 2014, |
| --- | --- |

—

having regard to the Policy Framework for Systematic and Long-Term Defence Cooperation, adopted by the Council on 18 November 2014,

| — | having regard to the updated Framework Arrangement for Security of Supply between subscribing Member States, adopted by the European Defence Agency (EDA) Steering Board in November 2013, and the associated Code of Conduct on Prioritisation, adopted by the EDA Steering Board in May 2014, |
| --- | --- |

—

having regard to the updated Framework Arrangement for Security of Supply between subscribing Member States, adopted by the European Defence Agency (EDA) Steering Board in November 2013, and the associated Code of Conduct on Prioritisation, adopted by the EDA Steering Board in May 2014,

| — | having regard to its resolutions of 21 November 2013 on the European Defence Technological and Industrial Base (3) and of 14 December 2011 on the impact of the financial crisis on the defence sector in the EU Member States (4), |
| --- | --- |

—

having regard to its resolutions of 21 November 2013 on the European Defence Technological and Industrial Base (3) and of 14 December 2011 on the impact of the financial crisis on the defence sector in the EU Member States (4),

| — | having regard to Rules 52 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 52 of its Rules of Procedure,

| — | having regard to the report of the Committee on Foreign Affairs and to the opinion of the Committee on the Internal Market and Consumer Protection (A8-0159/2015), |
| --- | --- |

—

having regard to the report of the Committee on Foreign Affairs and to the opinion of the Committee on the Internal Market and Consumer Protection (A8-0159/2015),

| A. | whereas new European defence market legislation was introduced under the 2009 Defence Package and all 28 Member States have transposed the new rules into their national legal orders; whereas the crux of this new legislation is the introduction of a regulatory framework based on transparency, non-discrimination and competition which addresses the specificities of the defence sector; |
| --- | --- |

A.

whereas new European defence market legislation was introduced under the 2009 Defence Package and all 28 Member States have transposed the new rules into their national legal orders; whereas the crux of this new legislation is the introduction of a regulatory framework based on transparency, non-discrimination and competition which addresses the specificities of the defence sector;

| B. | whereas Member States have agreed on the need to develop a European market for defence equipment and services; whereas the European Council has even called for the establishment of an EU-wide security of supply regime; whereas adequate capabilities and supply of equipment and the strategic autonomy of the EU are of crucial importance for the security of the Union and that of its neighbourhood; |
| --- | --- |

B.

whereas Member States have agreed on the need to develop a European market for defence equipment and services; whereas the European Council has even called for the establishment of an EU-wide security of supply regime; whereas adequate capabilities and supply of equipment and the strategic autonomy of the EU are of crucial importance for the security of the Union and that of its neighbourhood;

| C. | whereas the success of peacekeeping and security missions under the CSDP depends largely on their ability to respond promptly and immediately, and a key aspect, therefore, is the need to achieve a genuine European defence market to eliminate duplication and reduce red tape; |
| --- | --- |

C.

whereas the success of peacekeeping and security missions under the CSDP depends largely on their ability to respond promptly and immediately, and a key aspect, therefore, is the need to achieve a genuine European defence market to eliminate duplication and reduce red tape;

| D. | whereas the lack of consolidation, cost-efficiency and transparency in European defence markets means that external dependencies in the European defence sector could further increase at a time of multiple and direct threats to European security that are unprecedented since the end of the Cold War; |
| --- | --- |

D.

whereas the lack of consolidation, cost-efficiency and transparency in European defence markets means that external dependencies in the European defence sector could further increase at a time of multiple and direct threats to European security that are unprecedented since the end of the Cold War;

| E. | whereas investments in research and technology in the defence sectors of all Member States, as well as common investments in research and technology in the defence sector under the framework of European cooperation, have decreased at an alarming rate in recent years; |
| --- | --- |

E.

whereas investments in research and technology in the defence sectors of all Member States, as well as common investments in research and technology in the defence sector under the framework of European cooperation, have decreased at an alarming rate in recent years;

Developments in defence markets put European autonomy at risk

| 1. | Remains seriously concerned by the widespread and largely uncoordinated cuts to the defence budget in most Member States; emphasises that the cutting of defence budgets is weakening the defence potential of Member States and the EU, and leaves a question mark over the levels of preparedness to ensure national and European security; is of the view that these uncoordinated cuts, coupled with structural problems and unfair and untransparent practices, put the Union at risk by relinquishing strategic assets and capabilities and by forfeiting the opportunities that the coordination of defence policies and the pooling and sharing of defence assets could bring as regards the fulfilment of the EU’s prosperity and peace, in line with Article 21 of the Treaty on European Union, its security of supply and the defence of its citizens and interests; |
| --- | --- |

1.

Remains seriously concerned by the widespread and largely uncoordinated cuts to the defence budget in most Member States; emphasises that the cutting of defence budgets is weakening the defence potential of Member States and the EU, and leaves a question mark over the levels of preparedness to ensure national and European security; is of the view that these uncoordinated cuts, coupled with structural problems and unfair and untransparent practices, put the Union at risk by relinquishing strategic assets and capabilities and by forfeiting the opportunities that the coordination of defence policies and the pooling and sharing of defence assets could bring as regards the fulfilment of the EU’s prosperity and peace, in line with Article 21 of the Treaty on European Union, its security of supply and the defence of its citizens and interests;

| 2. | Is gravely concerned over the surge in armed conflict, low-intensity crises, hybrid war and war waged by proxy, state failure, instability and widespread human rights violations in the EU’s immediate neighbourhood and the threat of terrorism inside and outside the EU; believes that the current security threats are common to the EU as a whole and should be addressed in a united and coordinated fashion, pooling and sharing civilian and military resources; strongly believes, in this regard, that it is imperative not to waste resources and that it is essential to better use tax payers’ money and make progress on the establishment of a European defence equipment market and on the development of a competitive European Defence Technological and Industrial Base (EDTIB), capable of generating synergies through increased cross-border coordination and providing the necessary capabilities for the CSDP; also believes this will be crucial to increase efficiency and cost-effectiveness of European action within the framework of NATO operations to guarantee security and stability in Europe and its neighbourhood; |
| --- | --- |

2.

Is gravely concerned over the surge in armed conflict, low-intensity crises, hybrid war and war waged by proxy, state failure, instability and widespread human rights violations in the EU’s immediate neighbourhood and the threat of terrorism inside and outside the EU; believes that the current security threats are common to the EU as a whole and should be addressed in a united and coordinated fashion, pooling and sharing civilian and military resources; strongly believes, in this regard, that it is imperative not to waste resources and that it is essential to better use tax payers’ money and make progress on the establishment of a European defence equipment market and on the development of a competitive European Defence Technological and Industrial Base (EDTIB), capable of generating synergies through increased cross-border coordination and providing the necessary capabilities for the CSDP; also believes this will be crucial to increase efficiency and cost-effectiveness of European action within the framework of NATO operations to guarantee security and stability in Europe and its neighbourhood;

| 3. | Is worried, therefore, by the slow-paced and inconsistent implementation by the Member States of the 2009 Defence Package directives and calls on the Commission to take specific measures to ensure that the directives are correctly implemented, by monitoring national transpositions, with the aim of avoiding market distortions; recognises that the introduction of new legislation is a lengthy process, but warns that incorrect and diffuse application risks generating bad standards of practice, in so doing jeopardising the accomplishment of the objectives set forth in the directives and, thus, compromising the establishment of the European market for defence equipment and weakening the development of an EDTIB; underlines that the Defence Package should also contribute to create incentives for defence cooperation in Europe and encourages the Commission and EDA to cooperate closely in that regard; recalls with regret that the joint procurement in the defence sector has stagnated, and in recent years even declined; |
| --- | --- |

3.

Is worried, therefore, by the slow-paced and inconsistent implementation by the Member States of the 2009 Defence Package directives and calls on the Commission to take specific measures to ensure that the directives are correctly implemented, by monitoring national transpositions, with the aim of avoiding market distortions; recognises that the introduction of new legislation is a lengthy process, but warns that incorrect and diffuse application risks generating bad standards of practice, in so doing jeopardising the accomplishment of the objectives set forth in the directives and, thus, compromising the establishment of the European market for defence equipment and weakening the development of an EDTIB; underlines that the Defence Package should also contribute to create incentives for defence cooperation in Europe and encourages the Commission and EDA to cooperate closely in that regard; recalls with regret that the joint procurement in the defence sector has stagnated, and in recent years even declined;

| 4. | Warns of the risks of external dependencies in the European defence sector at a time of an increasingly complex and challenging security environment; warns, in particular, of the combination of Member States’ uncoordinated defence budgets, persisting market fragmentation despite new internal market rules, the growing dependence of the defence industry on extra-EU exports and increased foreign investment in Europe’s defence sector in some countries, which could lead to lack of transparency and to yielding control of strategic national and European defence industries, assets and technologies; |
| --- | --- |

4.

Warns of the risks of external dependencies in the European defence sector at a time of an increasingly complex and challenging security environment; warns, in particular, of the combination of Member States’ uncoordinated defence budgets, persisting market fragmentation despite new internal market rules, the growing dependence of the defence industry on extra-EU exports and increased foreign investment in Europe’s defence sector in some countries, which could lead to lack of transparency and to yielding control of strategic national and European defence industries, assets and technologies;

| 5. | Considers that special attention should be paid to the impact of certain projects on the autonomy and independence of the EU, such as cooperation with Russia in sensitive areas like satellite launching, with Soyuz rockets, and strategic airlift; stresses the need for Member States to conduct a priority review of their military/defence industries and to provide incentives for their development to the extent permissible under EU law; |
| --- | --- |

5.

Considers that special attention should be paid to the impact of certain projects on the autonomy and independence of the EU, such as cooperation with Russia in sensitive areas like satellite launching, with Soyuz rockets, and strategic airlift; stresses the need for Member States to conduct a priority review of their military/defence industries and to provide incentives for their development to the extent permissible under EU law;

| 6. | Stresses that a highly competitive, modern and integrated European industrial defence strategy is vital to ensure Europe’s defence capabilities and to have a positive indirect impact on other related economic sectors; points out that increased cooperation of economic resources and human capital is essential in order to make progress in dual-use research that minimises our external dependence and secures our supplies and raw materials for industry, especially those of a critical nature; |
| --- | --- |

6.

Stresses that a highly competitive, modern and integrated European industrial defence strategy is vital to ensure Europe’s defence capabilities and to have a positive indirect impact on other related economic sectors; points out that increased cooperation of economic resources and human capital is essential in order to make progress in dual-use research that minimises our external dependence and secures our supplies and raw materials for industry, especially those of a critical nature;

| 7. | Notes that while the December 2013 European Council failed to provide an adequate response to this situation, it nevertheless outlined a number of lines of action to improve the Common Security and Defence Policy and committed to reviewing progress in June 2015; regrets that despite the further worsening of the security environment both internally and to the east and south of the EU, which is compromising its security, no real progress has been made in addressing the current security challenges and threats; |
| --- | --- |

7.

Notes that while the December 2013 European Council failed to provide an adequate response to this situation, it nevertheless outlined a number of lines of action to improve the Common Security and Defence Policy and committed to reviewing progress in June 2015; regrets that despite the further worsening of the security environment both internally and to the east and south of the EU, which is compromising its security, no real progress has been made in addressing the current security challenges and threats;

| 8. | Urges the European Council to draw the necessary lessons and take concrete measures towards overcoming the fragmentation of the European defence market; calls on the European Council to provide specific guidelines for defence policies and the European defence market, taking into account the specificities of the defence sector, in order to increase its transparency and competitiveness, and to guarantee the availability of the defence capabilities needed to ensure European security and fulfil the objectives of the CSDP; |
| --- | --- |

8.

Urges the European Council to draw the necessary lessons and take concrete measures towards overcoming the fragmentation of the European defence market; calls on the European Council to provide specific guidelines for defence policies and the European defence market, taking into account the specificities of the defence sector, in order to increase its transparency and competitiveness, and to guarantee the availability of the defence capabilities needed to ensure European security and fulfil the objectives of the CSDP;

Declining European demand due to budget cuts: need for further cooperation

| 9. | Believes that the years of uncoordinated national defence budgets in Europe must be offset by increased cooperation and coordination among Member States, including through the articulation of defence budget policies and the coordination of strategic choices concerning the acquisition of military and dual-use equipment, in line with transparent public procurement standards; stresses the need for upfront planning on strategic investment in the purchase and renovation of equipment among Member States; reiterates its call for demand consolidation across the EU in order to promote and sustain a competitive and independent EDTIB; stresses that developing an efficient and transparent EDTIB is a key element for Europe’s ability to protect its citizens, interests and values, in line with the objectives of the Treaty and to fulfil its responsibilities as a security provider; calls on the Commission to develop an industrial strategy which defines key capabilities on which an EDTIB could be built; |
| --- | --- |

9.

Believes that the years of uncoordinated national defence budgets in Europe must be offset by increased cooperation and coordination among Member States, including through the articulation of defence budget policies and the coordination of strategic choices concerning the acquisition of military and dual-use equipment, in line with transparent public procurement standards; stresses the need for upfront planning on strategic investment in the purchase and renovation of equipment among Member States; reiterates its call for demand consolidation across the EU in order to promote and sustain a competitive and independent EDTIB; stresses that developing an efficient and transparent EDTIB is a key element for Europe’s ability to protect its citizens, interests and values, in line with the objectives of the Treaty and to fulfil its responsibilities as a security provider; calls on the Commission to develop an industrial strategy which defines key capabilities on which an EDTIB could be built;

| 10. | Recalls that the 28 EU Member States are still the world’s number two when it comes to both defence spending and arms exports; believes that this fact shows that the EU Member States and the Union still play a key role in global arms sales and defence procurement; considers a combined annual defence spending of 190 billion EUR an enormous amount of tax payer’s money; also recalls that numerous recent studies showed that the main problem lies in the fact that in many of the 28 EU Member States defence budgets are being spent in a very inefficient way leading to long delays, higher costs and in many cases to helicopters, fighter jets and other technology being not operational although brand new; stresses the need to deeply restructure the relationships between national defence administrations and defence industries and to introduce strict qualitative criteria for the output of procurement projects; |
| --- | --- |

10.

Recalls that the 28 EU Member States are still the world’s number two when it comes to both defence spending and arms exports; believes that this fact shows that the EU Member States and the Union still play a key role in global arms sales and defence procurement; considers a combined annual defence spending of 190 billion EUR an enormous amount of tax payer’s money; also recalls that numerous recent studies showed that the main problem lies in the fact that in many of the 28 EU Member States defence budgets are being spent in a very inefficient way leading to long delays, higher costs and in many cases to helicopters, fighter jets and other technology being not operational although brand new; stresses the need to deeply restructure the relationships between national defence administrations and defence industries and to introduce strict qualitative criteria for the output of procurement projects;

| 11. | Is of the view that the current budgetary constraints in EU Member States should represent an opportunity for more and better cooperation in the field of defence equipment acquisitions, to ensure better value for taxpayers’ money and ensure adequate military capabilities across the EU and a sustainable security of supply system; considers that Member States face a choice between cooperating effectively to face common challenges or loosing strategic capabilities and not defending national and European citizens and interests; |
| --- | --- |

11.

Is of the view that the current budgetary constraints in EU Member States should represent an opportunity for more and better cooperation in the field of defence equipment acquisitions, to ensure better value for taxpayers’ money and ensure adequate military capabilities across the EU and a sustainable security of supply system; considers that Member States face a choice between cooperating effectively to face common challenges or loosing strategic capabilities and not defending national and European citizens and interests;

| 12. | Recalls the need for greater convergence between national defence planning processes and welcomes, in this context, the adoption by the Council of the Policy Framework for Systematic and Long-Term Defence Cooperation; finds regrettable, however, its non-binding nature and the fact that it has not introduced a clear and structured process; underlines that this document should be welcomed by the European Council in order to become a key driver; encourages Member States to request the support of the EDA in their national defence reviews and to share information on national investment plans and priorities inside the EU Military Committee; calls on the Member States to launch permanent structured cooperation (PESCO) as means for better coordination and to use EU financing for peacetime cooperation; calls on the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy (VP/HR) to deliver realistic plans for the successful launch of PESCO; |
| --- | --- |

12.

Recalls the need for greater convergence between national defence planning processes and welcomes, in this context, the adoption by the Council of the Policy Framework for Systematic and Long-Term Defence Cooperation; finds regrettable, however, its non-binding nature and the fact that it has not introduced a clear and structured process; underlines that this document should be welcomed by the European Council in order to become a key driver; encourages Member States to request the support of the EDA in their national defence reviews and to share information on national investment plans and priorities inside the EU Military Committee; calls on the Member States to launch permanent structured cooperation (PESCO) as means for better coordination and to use EU financing for peacetime cooperation; calls on the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy (VP/HR) to deliver realistic plans for the successful launch of PESCO;

| 13. | Demands that cooperation and pooling and sharing initiatives be given priority and that incentives be created to this end; calls on the European Commission to put forward a proposal clarifying how non-market distorting tax incentives could serve these objectives; notes the decision of Belgium to grant VAT exemption to EDA’s ad hoc projects and considers that this exemption should be generalised to all EDA’s collaborative activities; welcomes the work of the EDA on a pooled procurement mechanism and expects it to contain measures to incentivise the cooperative acquisition of and support for defence equipment; |
| --- | --- |

13.

Demands that cooperation and pooling and sharing initiatives be given priority and that incentives be created to this end; calls on the European Commission to put forward a proposal clarifying how non-market distorting tax incentives could serve these objectives; notes the decision of Belgium to grant VAT exemption to EDA’s ad hoc projects and considers that this exemption should be generalised to all EDA’s collaborative activities; welcomes the work of the EDA on a pooled procurement mechanism and expects it to contain measures to incentivise the cooperative acquisition of and support for defence equipment;

| 14. | Recalls that under Horizon 2020, COSME and the European Structural and Investment Funds, defence industries, and in particular SMEs, can apply for EU funding for dual-use and other projects; calls on the Commission and the Member States to assist companies, particularly SMEs, in adequately seizing European funding opportunities for defence-related projects; |
| --- | --- |

14.

Recalls that under Horizon 2020, COSME and the European Structural and Investment Funds, defence industries, and in particular SMEs, can apply for EU funding for dual-use and other projects; calls on the Commission and the Member States to assist companies, particularly SMEs, in adequately seizing European funding opportunities for defence-related projects;

| 15. | Points out that, lately, the EU has increasingly had to contend with threats and challenges in cyberspace, involving a serious threat to the security of individual Member States and to the EU as a whole; believes that such threats should be assessed properly, and action be taken, at EU level with a view of providing for technical and other security measures in the Member States; |
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15.

Points out that, lately, the EU has increasingly had to contend with threats and challenges in cyberspace, involving a serious threat to the security of individual Member States and to the EU as a whole; believes that such threats should be assessed properly, and action be taken, at EU level with a view of providing for technical and other security measures in the Member States;

| 16. | Calls on the European Council to address at its meeting in June 2015 the need to streamline public procurement and contract award processes in relation to cybersecurity, and to ensure greater coordination between Member States, in order to enable the Union to deal promptly with major global threats such as cyber-terrorism and cyber-attacks; |
| --- | --- |

16.

Calls on the European Council to address at its meeting in June 2015 the need to streamline public procurement and contract award processes in relation to cybersecurity, and to ensure greater coordination between Member States, in order to enable the Union to deal promptly with major global threats such as cyber-terrorism and cyber-attacks;

| 17. | Reiterates its call on the VP/HR and Council to elaborate an EU Common Position on the use of armed drones, giving utmost importance to respect for human rights and international humanitarian law and addressing issues such as the legal framework, proportionality, accountability, the protection of civilians and transparency; |
| --- | --- |

17.

Reiterates its call on the VP/HR and Council to elaborate an EU Common Position on the use of armed drones, giving utmost importance to respect for human rights and international humanitarian law and addressing issues such as the legal framework, proportionality, accountability, the protection of civilians and transparency;

Growing external dependencies: need for a common approach

| 18. | Warns that European defence companies are increasingly compensating for their reduced turnover in Europe through extra-EU exports; expresses concern at the potential drawbacks of this approach, such as the transfer of sensitive technologies and intellectual property rights to their future competitors and moving production outside the EU, thus compromising Europe’s security of supply; believes that exposing the EU to the risk of the EDTIB being dependent on customers in third powers with different strategic interests constitutes a serious strategic mistake; |
| --- | --- |

18.

Warns that European defence companies are increasingly compensating for their reduced turnover in Europe through extra-EU exports; expresses concern at the potential drawbacks of this approach, such as the transfer of sensitive technologies and intellectual property rights to their future competitors and moving production outside the EU, thus compromising Europe’s security of supply; believes that exposing the EU to the risk of the EDTIB being dependent on customers in third powers with different strategic interests constitutes a serious strategic mistake;

| 19. | Recalls that the EU Common Position on Arms Exports defines a common understanding for the control of exports of military technology and equipment serving the coordination of national export control systems; believes that more coherent application of its eight criteria is necessary in order to make sure not only that overarching foreign and security policy objectives have priority over short-term economic gains, but also that a level playing field exists for European industries; |
| --- | --- |

19.

Recalls that the EU Common Position on Arms Exports defines a common understanding for the control of exports of military technology and equipment serving the coordination of national export control systems; believes that more coherent application of its eight criteria is necessary in order to make sure not only that overarching foreign and security policy objectives have priority over short-term economic gains, but also that a level playing field exists for European industries;

| 20. | Urges the Member States to comply with the principles of the Common Position and to report fully, in the context of the annual reports, on the state of their defence equipment exports to third countries; invites the Council and the VP/HR to look at ways of improving the compliance with the reporting obligation and of increasing the transparency and public scrutiny of the export control framework; recalls that adherence to the Common Position is fundamental to the fulfilment of EU principles and values, particularly in the fields of international human rights law and international humanitarian law, and of its responsibilities in local, regional and global security; |
| --- | --- |

20.

Urges the Member States to comply with the principles of the Common Position and to report fully, in the context of the annual reports, on the state of their defence equipment exports to third countries; invites the Council and the VP/HR to look at ways of improving the compliance with the reporting obligation and of increasing the transparency and public scrutiny of the export control framework; recalls that adherence to the Common Position is fundamental to the fulfilment of EU principles and values, particularly in the fields of international human rights law and international humanitarian law, and of its responsibilities in local, regional and global security;

| 21. | Notes the Commission communication on the review of export control policy of dual-use items and stresses, in this context, the necessity to ensure control modalities that do not hinder the free flow of goods and technology within the internal market and prevent diverging interpretations of EU rules; urges the Commission urgently to come forward with a new legislative proposal to update the dual-use export control regime to improve its coherence, efficiency, transparency and a recognition of human rights impact, while ensuring a level playing field; stresses that this proposal must take account of the changing nature of security challenges and the speed of technological developments, especially when it comes to surveillance and intrusion software and equipment and the trade in software vulnerabilities; |
| --- | --- |

21.

Notes the Commission communication on the review of export control policy of dual-use items and stresses, in this context, the necessity to ensure control modalities that do not hinder the free flow of goods and technology within the internal market and prevent diverging interpretations of EU rules; urges the Commission urgently to come forward with a new legislative proposal to update the dual-use export control regime to improve its coherence, efficiency, transparency and a recognition of human rights impact, while ensuring a level playing field; stresses that this proposal must take account of the changing nature of security challenges and the speed of technological developments, especially when it comes to surveillance and intrusion software and equipment and the trade in software vulnerabilities;

| 22. | Notes that while the growing importance of dual-use technologies offers benefits in terms of synergies between the defence sector and commercial production, it also makes it dependent on civilian supply chains, which often base their production outside Europe; requests information from the Commission and the EDA on the possible risks of growing internationalisation and the possible effects that changes in ownership in the defence sector may have on the security of supply and also the heightened risks for European and national security, including to the EU's digital infrastructure; calls on the Commission to inform Parliament in due time on the status of the Green Paper on the control of defence and sensitive security industrial assets which it had announced for the end of 2014, and requests information on the outcome of the announced stakeholder consultations; |
| --- | --- |

22.

Notes that while the growing importance of dual-use technologies offers benefits in terms of synergies between the defence sector and commercial production, it also makes it dependent on civilian supply chains, which often base their production outside Europe; requests information from the Commission and the EDA on the possible risks of growing internationalisation and the possible effects that changes in ownership in the defence sector may have on the security of supply and also the heightened risks for European and national security, including to the EU's digital infrastructure; calls on the Commission to inform Parliament in due time on the status of the Green Paper on the control of defence and sensitive security industrial assets which it had announced for the end of 2014, and requests information on the outcome of the announced stakeholder consultations;

| 23. | Welcomes the work of the EDA and the Commission on an EU-wide Security of Supply (SoS) regime, as mandated by the European Council, and looks forward to a roadmap with specific steps to be presented for endorsement by the heads of state and government in June 2015; calls on the Commission and the EDA to explain in detail the extent to which the Parliament proposal on ‘a comprehensive and ambitious EU-wide security-of-supply regime (...) based on a system of mutual guarantees and an analysis of risks and needs, and possibly using the legal basis of permanent structured cooperation’ (5) has been included in the preparatory work; believes that past methodologies used by the Commission, such as mapping and monitoring, have been insufficient; stresses the need to focus on new approaches on how to ensure the free circulation of military equipment for the armed forces of the 28 Member States; |
| --- | --- |

23.

Welcomes the work of the EDA and the Commission on an EU-wide Security of Supply (SoS) regime, as mandated by the European Council, and looks forward to a roadmap with specific steps to be presented for endorsement by the heads of state and government in June 2015; calls on the Commission and the EDA to explain in detail the extent to which the Parliament proposal on ‘a comprehensive and ambitious EU-wide security-of-supply regime (...) based on a system of mutual guarantees and an analysis of risks and needs, and possibly using the legal basis of permanent structured cooperation’ (5) has been included in the preparatory work; believes that past methodologies used by the Commission, such as mapping and monitoring, have been insufficient; stresses the need to focus on new approaches on how to ensure the free circulation of military equipment for the armed forces of the 28 Member States;

| 24. | Considers mutual assurances of SoS between the Member States to be a fundamental element in the construction of an integrated European defence market; welcomes the EDA’s updated framework arrangement on SoS as an instrument which strengthens mutual confidence and solidarity, but regrets that it does not create any legal obligations; takes the view that the EU-wide SoS regime needs to be based on the implementation of existing legislation, and, in particular, on the full implementation of the directive on intra-EU transfers in order to remove barriers to the movement of defence products inside the EU; |
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24.

Considers mutual assurances of SoS between the Member States to be a fundamental element in the construction of an integrated European defence market; welcomes the EDA’s updated framework arrangement on SoS as an instrument which strengthens mutual confidence and solidarity, but regrets that it does not create any legal obligations; takes the view that the EU-wide SoS regime needs to be based on the implementation of existing legislation, and, in particular, on the full implementation of the directive on intra-EU transfers in order to remove barriers to the movement of defence products inside the EU;

Using internal market rules to their full potential

| 25. | Stresses that the Defence Package launched by the Commission aims to support the competitiveness of the European defence sector and that one of its goals is to limit the problems stemming from the fragmentation of the European defence market, from certain protectionist attitudes in the award of defence contracts and from the lack of coordination between different Member States’ control regimes on transfers of defence-related products; |
| --- | --- |

25.

Stresses that the Defence Package launched by the Commission aims to support the competitiveness of the European defence sector and that one of its goals is to limit the problems stemming from the fragmentation of the European defence market, from certain protectionist attitudes in the award of defence contracts and from the lack of coordination between different Member States’ control regimes on transfers of defence-related products;

| 26. | Stresses that a single defence market would ensure full transparency and prevent duplication of effort, which gives rise to market distortions; points out that the success of CSDP peace and security missions depends to a large extent on their rapid response capabilities and that greater integration is of key importance in streamlining processes and cutting costs; |
| --- | --- |

26.

Stresses that a single defence market would ensure full transparency and prevent duplication of effort, which gives rise to market distortions; points out that the success of CSDP peace and security missions depends to a large extent on their rapid response capabilities and that greater integration is of key importance in streamlining processes and cutting costs;

| 27. | Points out that the completion of a European defence market calls for a highly competitive, innovation- and technology-driven industrial base that can generate synergies through closer cross-border cooperation, and that advances in dual-use research are of key importance in guaranteeing our independence and ensuring security of supply, in particular of critical items; |
| --- | --- |

27.

Points out that the completion of a European defence market calls for a highly competitive, innovation- and technology-driven industrial base that can generate synergies through closer cross-border cooperation, and that advances in dual-use research are of key importance in guaranteeing our independence and ensuring security of supply, in particular of critical items;

| 28. | Points out that in order to strengthen European defence and technological innovation and make substantial savings, Europe needs to build economies of scale and have a common EU market for defence procurement, also with a view to fostering a modern, integrated and competitive European defence industry; stresses that internal market rules should be used to their full potential to counteract the ongoing fragmentation of the European defence and security sector, which leads to duplication of defence equipment programmes and a lack of transparency regarding the relations between national defence administrations and the defence industry, through enhanced cross-border cooperation; urges the Member States to remove national rules that do not comply with Directives 2009/43/EC and 2009/81/EC and that are hindering the internal market for defence procurement, and to correctly implement and enforce Directive 2009/81/EC, concerning procurement in the fields of defence and sensitive security, and Directive 2009/43/EC, concerning the transfer of defence-related products; calls on the Commission to take specific steps to ensure that the directives are properly applied and to check and monitor national transposition procedures to make sure that they do not result in market distortions; |
| --- | --- |

28.

Points out that in order to strengthen European defence and technological innovation and make substantial savings, Europe needs to build economies of scale and have a common EU market for defence procurement, also with a view to fostering a modern, integrated and competitive European defence industry; stresses that internal market rules should be used to their full potential to counteract the ongoing fragmentation of the European defence and security sector, which leads to duplication of defence equipment programmes and a lack of transparency regarding the relations between national defence administrations and the defence industry, through enhanced cross-border cooperation; urges the Member States to remove national rules that do not comply with Directives 2009/43/EC and 2009/81/EC and that are hindering the internal market for defence procurement, and to correctly implement and enforce Directive 2009/81/EC, concerning procurement in the fields of defence and sensitive security, and Directive 2009/43/EC, concerning the transfer of defence-related products; calls on the Commission to take specific steps to ensure that the directives are properly applied and to check and monitor national transposition procedures to make sure that they do not result in market distortions;

| 29. | Calls on the Commission, with a view to making the best possible use of resources, to encourage Member States to make joint purchases through central purchasing bodies such as the EDA, as provided for in Directive 2009/81/EC; |
| --- | --- |

29.

Calls on the Commission, with a view to making the best possible use of resources, to encourage Member States to make joint purchases through central purchasing bodies such as the EDA, as provided for in Directive 2009/81/EC;

| 30. | Urges the Commission to step up its efforts to achieve a level playing field in European defence markets in order to fight protectionist practices by Member States by promoting cross-border cooperation and better access to defence industry supply chains, and by taking steps to put an end to the situation whereby some Member States act solely as suppliers and others solely as buyers of defence technology; believes, in this regard, that the use of exclusions in accordance with Directive 2009/81/EC has to be duly justified; calls on the Commission to inform Parliament of the effects of the seven sets of Guidance Notes (on, respectively, Field of Application, Exclusions, R&D, Security of Supply, Security of Information, Subcontracting, Offsets) that have already been published, and notes that the Commission plans to release two more in 2015; believes that these notes constitute the perfect opportunity for the Commission to establish a dialogue with the Member States on subjects that have never been addressed in a structured and open manner, and requests information on the outcome of such a dialogue with the Member States; |
| --- | --- |

30.

Urges the Commission to step up its efforts to achieve a level playing field in European defence markets in order to fight protectionist practices by Member States by promoting cross-border cooperation and better access to defence industry supply chains, and by taking steps to put an end to the situation whereby some Member States act solely as suppliers and others solely as buyers of defence technology; believes, in this regard, that the use of exclusions in accordance with Directive 2009/81/EC has to be duly justified; calls on the Commission to inform Parliament of the effects of the seven sets of Guidance Notes (on, respectively, Field of Application, Exclusions, R&D, Security of Supply, Security of Information, Subcontracting, Offsets) that have already been published, and notes that the Commission plans to release two more in 2015; believes that these notes constitute the perfect opportunity for the Commission to establish a dialogue with the Member States on subjects that have never been addressed in a structured and open manner, and requests information on the outcome of such a dialogue with the Member States;

| 31. | Notes that, in its current wording and in practice, Article 346 TFEU still offers the Member States a great deal of scope for discretion as regards resorting to its application and thereby derogating from applying EU defence procurement laws in defence contracts; calls, therefore, on the Member States to apply Article 346 TFEU in a correct and effective manner that is consistent with the requirements set forth in EU rules, in the Internal Market Directives and in defence procurement rules; recalls that, according to settled case law of the Court of Justice of the European Union, measures under Article 346 should be limited to exceptional and clearly defined cases, and must not go beyond the limits of such cases; warns that resorting incorrectly to derogations from Single Market rules actively impairs EU competition, curtails transparency, facilitates corruption and thus damages the establishment of a EU defence market, and is detrimental to a functioning EDTIB and the development of credible military capabilities; |
| --- | --- |

31.

Notes that, in its current wording and in practice, Article 346 TFEU still offers the Member States a great deal of scope for discretion as regards resorting to its application and thereby derogating from applying EU defence procurement laws in defence contracts; calls, therefore, on the Member States to apply Article 346 TFEU in a correct and effective manner that is consistent with the requirements set forth in EU rules, in the Internal Market Directives and in defence procurement rules; recalls that, according to settled case law of the Court of Justice of the European Union, measures under Article 346 should be limited to exceptional and clearly defined cases, and must not go beyond the limits of such cases; warns that resorting incorrectly to derogations from Single Market rules actively impairs EU competition, curtails transparency, facilitates corruption and thus damages the establishment of a EU defence market, and is detrimental to a functioning EDTIB and the development of credible military capabilities;

| 32. | Takes note that, in the long term, the full phase-out of offsets will contribute to a better functioning of the internal market in the European defence sector; calls, therefore, on the Commission to continue to check that Member States are phasing out offsets not duly justified on the basis of Article 346 of the Treaty; views this as indispensable for ensuring the smooth functioning and transparency of the internal market in the European defence sector and a level playing field for suppliers, in particular SMEs; |
| --- | --- |

32.

Takes note that, in the long term, the full phase-out of offsets will contribute to a better functioning of the internal market in the European defence sector; calls, therefore, on the Commission to continue to check that Member States are phasing out offsets not duly justified on the basis of Article 346 of the Treaty; views this as indispensable for ensuring the smooth functioning and transparency of the internal market in the European defence sector and a level playing field for suppliers, in particular SMEs;

| 33. | Recalls that framework agreements, subcontracting and division into lots should be a means of opening up established supply chains for the benefit of SMEs; points out, nonetheless, that the principles of transparency in the subcontracting chain and of joint liability must be guaranteed; calls on the Member States, the EDA and the Commission to work together, and with prime contractors, in order to ensure that SMEs are fully familiar with the various stages in the value chain, as this will help them consolidate and facilitate their access to defence procurement and counter the geographically uneven development of Europe’s technology and defence base; |
| --- | --- |

33.

Recalls that framework agreements, subcontracting and division into lots should be a means of opening up established supply chains for the benefit of SMEs; points out, nonetheless, that the principles of transparency in the subcontracting chain and of joint liability must be guaranteed; calls on the Member States, the EDA and the Commission to work together, and with prime contractors, in order to ensure that SMEs are fully familiar with the various stages in the value chain, as this will help them consolidate and facilitate their access to defence procurement and counter the geographically uneven development of Europe’s technology and defence base;

| 34. | Notes that the uptake by industry of the main instruments of the Defence Transfer Directive, specifically general licences and the certification of defence firms, remains very limited, and that there are loopholes in the administrative cooperation between Member States to ensure appropriate control measures in order to prevent breaches of the terms and conditions of transfer licences; urges the Commission and the Member States to ensure the effective use of these instruments in practice and welcomes, therefore, the initiative of the Commission to establish a working group, with the Member States, on the harmonisation of the Intra-EU Transfers Directive; |
| --- | --- |

34.

Notes that the uptake by industry of the main instruments of the Defence Transfer Directive, specifically general licences and the certification of defence firms, remains very limited, and that there are loopholes in the administrative cooperation between Member States to ensure appropriate control measures in order to prevent breaches of the terms and conditions of transfer licences; urges the Commission and the Member States to ensure the effective use of these instruments in practice and welcomes, therefore, the initiative of the Commission to establish a working group, with the Member States, on the harmonisation of the Intra-EU Transfers Directive;

| 35. | Acknowledges the 2014 Commission roadmap entitled ‘Towards a more competitive and efficient defence and security sector’ and the undertaking made by the Commission in that document to look into how the adverse impact of offsets required by third countries could be mitigated, and what impact offsets have on the internal market and European industry; stresses the importance of the timely implementation of the roadmap and of taking additional measures as necessary; fully supports the Commission’s efforts to provide practical guidance to SMEs using European funds in dual-use projects; |
| --- | --- |

35.

Acknowledges the 2014 Commission roadmap entitled ‘Towards a more competitive and efficient defence and security sector’ and the undertaking made by the Commission in that document to look into how the adverse impact of offsets required by third countries could be mitigated, and what impact offsets have on the internal market and European industry; stresses the importance of the timely implementation of the roadmap and of taking additional measures as necessary; fully supports the Commission’s efforts to provide practical guidance to SMEs using European funds in dual-use projects;

| 36. | Recalls that the Member States urgently need to improve the transparency of procurement practices in the defence sector vis-à-vis the Commission and EU agencies; underlines that specific procurement procedures, such as the negotiated procedure without prior publication of a contract notice, should be limited to exceptional cases and justified only by overriding reasons of general interest connected to defence and security, in compliance with Directive 2009/81/EC; urges the Commission to ensure appropriate monitoring so as to enable comprehensive reporting, in respect of both directives, to Parliament and the Council in 2016 as scheduled; |
| --- | --- |

36.

Recalls that the Member States urgently need to improve the transparency of procurement practices in the defence sector vis-à-vis the Commission and EU agencies; underlines that specific procurement procedures, such as the negotiated procedure without prior publication of a contract notice, should be limited to exceptional cases and justified only by overriding reasons of general interest connected to defence and security, in compliance with Directive 2009/81/EC; urges the Commission to ensure appropriate monitoring so as to enable comprehensive reporting, in respect of both directives, to Parliament and the Council in 2016 as scheduled;

| 37. | Recalls the importance of regular checks on defence and security equipment by the relevant supervisory authorities, including checks on proper accounting; |
| --- | --- |

37.

Recalls the importance of regular checks on defence and security equipment by the relevant supervisory authorities, including checks on proper accounting;

| 38. | Underlines that cooperation between strategic partners is essential for European security of supply, and hence encourages the Commission and the Member States to take defence procurement into account when negotiating international trade agreements; |
| --- | --- |

38.

Underlines that cooperation between strategic partners is essential for European security of supply, and hence encourages the Commission and the Member States to take defence procurement into account when negotiating international trade agreements;

Review of the defence procurement package

| 39. | Calls on the Commission in its implementation reports to Parliament and the Council on Directives 2009/81/EC and 2009/43/EC in 2016 to evaluate thoroughly whether, and to what extent, their provisions have been enforced correctly, and whether their objectives have been achieved, and to come up with legislative proposals accordingly, if the findings of the report point in this direction; |
| --- | --- |

39.

Calls on the Commission in its implementation reports to Parliament and the Council on Directives 2009/81/EC and 2009/43/EC in 2016 to evaluate thoroughly whether, and to what extent, their provisions have been enforced correctly, and whether their objectives have been achieved, and to come up with legislative proposals accordingly, if the findings of the report point in this direction;

| 40. | Stresses that further special reporting obligations should be introduced for Member States, coupled with provisions for appropriate confidentiality safeguards; |
| --- | --- |

40.

Stresses that further special reporting obligations should be introduced for Member States, coupled with provisions for appropriate confidentiality safeguards;

| 41. | Recalls that the purpose of the modernisation of the EU public procurement rules as set out in Directives 2014/24/EU and 2014/25/EU, adopted in 2014, is to ensure transparency in the subcontracting chain and compliance with environmental, social and labour law; points out that the new directives afford opportunities for more streamlined procedures, such as the use of electronic procurement, aggregation of demand and the use of the most economically advantageous tender, which can be tailored to the specificities of the defence and security sector; |
| --- | --- |

41.

Recalls that the purpose of the modernisation of the EU public procurement rules as set out in Directives 2014/24/EU and 2014/25/EU, adopted in 2014, is to ensure transparency in the subcontracting chain and compliance with environmental, social and labour law; points out that the new directives afford opportunities for more streamlined procedures, such as the use of electronic procurement, aggregation of demand and the use of the most economically advantageous tender, which can be tailored to the specificities of the defence and security sector;

| 42. | Calls, with a view to building an innovative and competitive European industry and making the best possible use of security and defence budgets, for the new ‘innovation partnership’ procedure to be introduced in defence procurement, allowing contracting authorities to establish this procedure for the development and subsequent purchase of new, innovative products, services or works, providing the necessary market incentives and supporting the development of innovative solutions without foreclosing the market; |
| --- | --- |

42.

Calls, with a view to building an innovative and competitive European industry and making the best possible use of security and defence budgets, for the new ‘innovation partnership’ procedure to be introduced in defence procurement, allowing contracting authorities to establish this procedure for the development and subsequent purchase of new, innovative products, services or works, providing the necessary market incentives and supporting the development of innovative solutions without foreclosing the market;

| 43. | Stresses that ensuring the maximum protection and security of the civilian populace must be taken into account during procurement procedures for defence and security equipment; |
| --- | --- |

43.

Stresses that ensuring the maximum protection and security of the civilian populace must be taken into account during procurement procedures for defence and security equipment;

o

o o

| 44. | Instructs its President to forward this resolution to the President of the European Council, the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, the Council, the Commission, the parliaments of the Member States, the NATO Parliamentary Assembly and the Secretary-General of NATO. |
| --- | --- |

44.

Instructs its President to forward this resolution to the President of the European Council, the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, the Council, the Commission, the parliaments of the Member States, the NATO Parliamentary Assembly and the Secretary-General of NATO.

---

(1)  OJ L 146, 10.6.2009, p. 1.

(2)  OJ L 216, 20.8.2009, p. 76.

(3)  Texts adopted, P7_TA(2013)0514.

(4)  OJ C 168 E, 14.6.2013, p. 9.

(5)  Texts adopted, P7_TA(2013)0514.

---

OPINIONS

European Parliament

Wednesday 27 May 2015

| 27.9.2016 | EN | Official Journal of the European Union | C 353/82 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/82

---

P8_TA(2015)0216

Aid scheme for the supply of fruit and vegetables, bananas and milk in the educational establishments (Decision on the opening of interinstitutional negotiations)

European Parliament decision of 27 May 2015 on the opening of, and mandate for, interinstitutional negotiations on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1308/2013 and Regulation (EU) No 1306/2013 as regards the aid scheme for the supply of fruit and vegetables, bananas and milk in the educational establishments (COM(2014)0032 — C8-0025/2014 — 2014/0014(COD))

(2016/C 353/15)

The European Parliament,

| — | having regard to the proposal of the Committee on Agriculture and Rural Development, |
| --- | --- |

—

having regard to the proposal of the Committee on Agriculture and Rural Development,

| — | having regard to Rule 73(2) and Rule 74 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 73(2) and Rule 74 of its Rules of Procedure,

decides to open interinstitutional negotiations on the basis of the following mandate:

MANDATE

Amendment 1

Proposal for a regulation

Recital 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| (2) | The experience gained with the application of the current schemes, together with the conclusions of the external evaluations
  and
  subsequent analysis of different policy options, point to the conclusion that the
  rationale which led to the establishment
  of the two school schemes is
  still relevant
  . In the current context of declining consumption of fruit and vegetables including bananas and milk products,
  exacerbated by amongst other things
  ,
  the modern trend towards the
  consumption
  of
  highly processed foods which, additionally, are often high in added sugars, salt
  and
  fat, the Union aid to finance the supply to children in educational establishments of selected agricultural products should
  therefore continue to exist
  . |

Text proposed by the Commission

Amendment

(2)

The experience gained with the application of the current schemes, together with the conclusions of the external evaluations
  and
  subsequent analysis of different policy options, point to the conclusion that the
  rationale which led to the establishment
  of the two school schemes is
  still relevant
  . In the current context of declining consumption of fruit and vegetables including bananas and milk products,
  exacerbated by amongst other things
  ,
  the modern trend towards the
  consumption
  of
  highly processed foods which, additionally, are often high in added sugars, salt
  and
  fat, the Union aid to finance the supply to children in educational establishments of selected agricultural products should
  therefore continue to exist
  .

| (2) | The experience gained with the application of the current schemes, together with the conclusions of the external evaluations, subsequent analysis of different policy options
  and the social difficulties faced by Member States
  , point to the conclusion that the
  continuation and strengthening
  of the two school schemes is
  of the utmost importance
  . In the current context of declining consumption of
  fresh
  fruit and vegetables including bananas and milk products,
  especially among children
  ,
  and of an increasing incidence of child obesity as a result of
  consumption
  habits geared to
  highly processed foods which, additionally, are often high in added sugars, salt, fat
  and/or additives
  , the Union aid to finance the supply to children in educational establishments of selected agricultural products should
  do more to promote healthy eating habits and the consumption of local products
  . |
| --- | --- |

(2)

The experience gained with the application of the current schemes, together with the conclusions of the external evaluations, subsequent analysis of different policy options
  and the social difficulties faced by Member States
  , point to the conclusion that the
  continuation and strengthening
  of the two school schemes is
  of the utmost importance
  . In the current context of declining consumption of
  fresh
  fruit and vegetables including bananas and milk products,
  especially among children
  ,
  and of an increasing incidence of child obesity as a result of
  consumption
  habits geared to
  highly processed foods which, additionally, are often high in added sugars, salt, fat
  and/or additives
  , the Union aid to finance the supply to children in educational establishments of selected agricultural products should
  do more to promote healthy eating habits and the consumption of local products
  .

Justification

AGRI Compromise Amendment 6. This compromise emphasises the importance of the school schemes, as well as the reasons why it should continue and be reinforced. Furthermore, following the Commission's decision to revaluate the proposal, it is important that the Parliament adopts a strong position in favour of the continuation of the schemes.

Amendment 2

Proposal for a regulation

Recital 3

| Text proposed by the Commission | Amendment |
| --- | --- |
| (3) | The analysis of different policy options points out that a unified approach under a common legal and financial framework is more appropriate and effective in meeting the specific objectives that the Common Agricultural Policy is pursuing through school schemes. This would allow Member States to maximise the impact of distribution within a constant budget and increase
  the
  management efficiency. However, in order to take into account the differences between the fruit and vegetables including bananas and milk products and their supply chains, certain elements should remain separate, such as the respective budgetary envelopes. In light of the experience with the current schemes,
  the
  participation in the scheme should continue to be voluntary for Member States. Taking into the account the different consumption situations across Member States, the possibility should be given to participating Member States to choose whether they want to distribute all or just one of the products eligible for the supply to children in educational establishments. |

Text proposed by the Commission

Amendment

(3)

The analysis of different policy options points out that a unified approach under a common legal and financial framework is more appropriate and effective in meeting the specific objectives that the Common Agricultural Policy is pursuing through school schemes. This would allow Member States to maximise the impact of distribution within a constant budget and increase
  the
  management efficiency. However, in order to take into account the differences between the fruit and vegetables including bananas and milk products and their supply chains, certain elements should remain separate, such as the respective budgetary envelopes. In light of the experience with the current schemes,
  the
  participation in the scheme should continue to be voluntary for Member States. Taking into the account the different consumption situations across Member States, the possibility should be given to participating Member States to choose whether they want to distribute all or just one of the products eligible for the supply to children in educational establishments.

| (3) | The analysis of different policy options points out that a unified approach under a common legal and financial framework is more appropriate and effective in meeting the specific objectives that the Common Agricultural Policy is pursuing through school schemes. This would allow Member States to maximise the impact of distribution within a constant budget and increase management efficiency. However, in order to take into account the differences between the fruit and vegetables including bananas and milk products and their supply chains, certain elements should remain separate, such as the respective budgetary envelopes. In light of the experience with the current schemes, participation in the scheme should continue to be voluntary for Member States. Taking into the account the different consumption situations across Member States, the possibility should be given to participating Member States to choose
  , in agreement with the interested regions,
  whether they want to distribute all or just one of the products eligible for the supply to children in educational establishments.
  Member States could also consider introducing targeted measures in order to address declining milk consumption among adolescents. |
| --- | --- |

(3)

The analysis of different policy options points out that a unified approach under a common legal and financial framework is more appropriate and effective in meeting the specific objectives that the Common Agricultural Policy is pursuing through school schemes. This would allow Member States to maximise the impact of distribution within a constant budget and increase management efficiency. However, in order to take into account the differences between the fruit and vegetables including bananas and milk products and their supply chains, certain elements should remain separate, such as the respective budgetary envelopes. In light of the experience with the current schemes, participation in the scheme should continue to be voluntary for Member States. Taking into the account the different consumption situations across Member States, the possibility should be given to participating Member States to choose
  , in agreement with the interested regions,
  whether they want to distribute all or just one of the products eligible for the supply to children in educational establishments.
  Member States could also consider introducing targeted measures in order to address declining milk consumption among adolescents.

Amendment 3

Proposal for a regulation

Recital 4

| Text proposed by the Commission | Amendment |
| --- | --- |
| (4) | A trend of declining consumption in particular of fresh fruit and vegetables including bananas and drinking milk has been identified. It is therefore appropriate to focus the distribution under the school schemes on these products. This would in turn also help reduce the organisational burden for schools, increase the impact of the distribution within a limited budget and would be in line with the current practice, as these products are most frequently distributed. |

Text proposed by the Commission

Amendment

(4)

A trend of declining consumption in particular of fresh fruit and vegetables including bananas and drinking milk has been identified. It is therefore appropriate to focus the distribution under the school schemes on these products. This would in turn also help reduce the organisational burden for schools, increase the impact of the distribution within a limited budget and would be in line with the current practice, as these products are most frequently distributed.

| (4) | A trend of declining consumption in particular of fresh fruit and vegetables including bananas and drinking milk has been identified. It is therefore appropriate to focus the distribution under the school schemes on these products
  as a priority
  . This would in turn also help reduce the organisational burden for schools
  and
  increase the impact of the distribution within a limited budget and would be in line with the current practice, as these products are most frequently distributed.
  However, in order to follow nutritional recommendations on calcium absorption, and given the increase in problems associated with intolerance of lactose in milk, Member States should be allowed to distribute other milk products, such as yoghurt and cheese, which have uncontested beneficial effects on children's health. Furthermore, efforts should be made to ensure the distribution of local and regional products. |
| --- | --- |

(4)

A trend of declining consumption in particular of fresh fruit and vegetables including bananas and drinking milk has been identified. It is therefore appropriate to focus the distribution under the school schemes on these products
  as a priority
  . This would in turn also help reduce the organisational burden for schools
  and
  increase the impact of the distribution within a limited budget and would be in line with the current practice, as these products are most frequently distributed.
  However, in order to follow nutritional recommendations on calcium absorption, and given the increase in problems associated with intolerance of lactose in milk, Member States should be allowed to distribute other milk products, such as yoghurt and cheese, which have uncontested beneficial effects on children's health. Furthermore, efforts should be made to ensure the distribution of local and regional products.

Justification

AGRI Compromise Amendment 1 — part 3.

Amendment 4

Proposal for a regulation

Recital 5

| Text proposed by the Commission | Amendment |
| --- | --- |
| (5) | Educational measures that support the distribution are necessary in order to make the scheme effective in reaching its short- and long-term objectives of increasing the consumption of selected agricultural products and shaping healthier diets. Considering their importance, these measures should support both
  the
  fruit and vegetables including bananas and milk
  distribution
  . They should be eligible for the Union aid. As
  supporting
  measures they represent a critical tool to reconnect children with agriculture and
  its different
  products and to meet the objectives that the scheme is pursuing, Member States should be allowed to include a wider variety of agricultural products
  into their thematic measures
  . However, so as to promote healthy eating habits, the national
  health
  authorities should be involved in this process and approve the list of these products, as well as the two groups of products eligible for the distribution, and decide on their nutritional aspects. |

Text proposed by the Commission

Amendment

(5)

Educational measures that support the distribution are necessary in order to make the scheme effective in reaching its short- and long-term objectives of increasing the consumption of selected agricultural products and shaping healthier diets. Considering their importance, these measures should support both
  the
  fruit and vegetables including bananas and milk
  distribution
  . They should be eligible for the Union aid. As
  supporting
  measures they represent a critical tool to reconnect children with agriculture and
  its different
  products and to meet the objectives that the scheme is pursuing, Member States should be allowed to include a wider variety of agricultural products
  into their thematic measures
  . However, so as to promote healthy eating habits, the national
  health
  authorities should be involved in this process and approve the list of these products, as well as the two groups of products eligible for the distribution, and decide on their nutritional aspects.

| (5) | Accompanying
  educational measures that support the distribution are necessary in order to make the scheme effective in reaching its short- and long-term objectives of increasing the consumption of selected agricultural products and shaping healthier diets. Considering their importance, these measures should support
  the distribution of
  both fruit and vegetables including bananas and milk
  and milk products
  . They should be eligible for the Union aid. As
  accompanying educational
  measures, they represent a critical tool to reconnect children with agriculture and
  the variety of Union agricultural
  products,
  particularly those produced in their region, with the help of, for example, nutrition experts and farmers,
  and to meet the objectives that the scheme is pursuing, Member States should be allowed to include
  in their thematic measures
  a wider variety of agricultural products
  , such as processed fruit and vegetables without the addition of sugar, salt, fat or sweeteners, and other local, regional or national specialities, such as honey, table olives, olive oil and dried fruits
  . However, so as to promote healthy eating habits, the national authorities
  responsible for nutrition and/or health
  should be involved in this process and
  should
  approve the list of these products, as well as the two groups of products eligible for the distribution, and
  should
  decide on their nutritional aspects. |
| --- | --- |

(5)

Accompanying
  educational measures that support the distribution are necessary in order to make the scheme effective in reaching its short- and long-term objectives of increasing the consumption of selected agricultural products and shaping healthier diets. Considering their importance, these measures should support
  the distribution of
  both fruit and vegetables including bananas and milk
  and milk products
  . They should be eligible for the Union aid. As
  accompanying educational
  measures, they represent a critical tool to reconnect children with agriculture and
  the variety of Union agricultural
  products,
  particularly those produced in their region, with the help of, for example, nutrition experts and farmers,
  and to meet the objectives that the scheme is pursuing, Member States should be allowed to include
  in their thematic measures
  a wider variety of agricultural products
  , such as processed fruit and vegetables without the addition of sugar, salt, fat or sweeteners, and other local, regional or national specialities, such as honey, table olives, olive oil and dried fruits
  . However, so as to promote healthy eating habits, the national authorities
  responsible for nutrition and/or health
  should be involved in this process and
  should
  approve the list of these products, as well as the two groups of products eligible for the distribution, and
  should
  decide on their nutritional aspects.

Justification

AGRI Compromise Amendment 2 — part 5.

Amendment 5

Proposal for a regulation

Recital 6

| Text proposed by the Commission | Amendment |
| --- | --- |
| (6) | In order to ensure
  a
  sound budgetary management, a fixed ceiling of the Union aid towards the distribution of fruit and vegetables including bananas and milk,
  supporting
  educational measures and related costs should be provided for. This ceiling should reflect the current situation. In light of the experience gained and with a view to
  simplify
  the management, the financing models should be approximated and based on a single approach as regards the level of Union financial contribution. It is therefore appropriate to limit the level of Union aid towards the price of products through a maximum Union aid per
  portion
  both for fruit and vegetables including bananas and milk and abolish the principle of obligatory co-financing for fruit and vegetables including bananas. Considering the price volatility of products in question, the power to adopt certain acts should be delegated to the Commission in respect of measures setting the
  levels
  of the Union aid
  towards the price of a portion of products and laying down the definition of a portion
  . |

Text proposed by the Commission

Amendment

(6)

In order to ensure
  a
  sound budgetary management, a fixed ceiling of the Union aid towards the distribution of fruit and vegetables including bananas and milk,
  supporting
  educational measures and related costs should be provided for. This ceiling should reflect the current situation. In light of the experience gained and with a view to
  simplify
  the management, the financing models should be approximated and based on a single approach as regards the level of Union financial contribution. It is therefore appropriate to limit the level of Union aid towards the price of products through a maximum Union aid per
  portion
  both for fruit and vegetables including bananas and milk and abolish the principle of obligatory co-financing for fruit and vegetables including bananas. Considering the price volatility of products in question, the power to adopt certain acts should be delegated to the Commission in respect of measures setting the
  levels
  of the Union aid
  towards the price of a portion of products and laying down the definition of a portion
  .

| (6) | In order to ensure sound budgetary management, a fixed ceiling of the Union aid towards the distribution of fruit and vegetables including bananas and milk,
  accompanying
  educational measures and related costs should be provided for. This ceiling should reflect the current situation. In light of the experience gained and with a view to
  simplifying
  the management, the financing models should be approximated and based on a single approach as regards the level of Union financial contribution. It is therefore appropriate to limit the level of Union aid towards the price of products through a maximum
  amount of
  Union aid per
  child and per distribution operation
  both for fruit and vegetables including bananas and milk and abolish the principle of obligatory co-financing for fruit and vegetables including bananas. Considering the price volatility of
  the
  products in question, the power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of measures setting the
  ceiling
  of the Union aid. |
| --- | --- |

(6)

In order to ensure sound budgetary management, a fixed ceiling of the Union aid towards the distribution of fruit and vegetables including bananas and milk,
  accompanying
  educational measures and related costs should be provided for. This ceiling should reflect the current situation. In light of the experience gained and with a view to
  simplifying
  the management, the financing models should be approximated and based on a single approach as regards the level of Union financial contribution. It is therefore appropriate to limit the level of Union aid towards the price of products through a maximum
  amount of
  Union aid per
  child and per distribution operation
  both for fruit and vegetables including bananas and milk and abolish the principle of obligatory co-financing for fruit and vegetables including bananas. Considering the price volatility of
  the
  products in question, the power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of measures setting the
  ceiling
  of the Union aid.

Amendment 6

Proposal for a regulation

Recital 7

| Text proposed by the Commission | Amendment |
| --- | --- |
| (7) | In order to ensure the efficient and targeted use of Union funds, the power to adopt certain acts should be delegated to the Commission in respect of measures fixing the indicative allocations of the Union aid to each Member State and the methods for reallocating aid between Member States on the basis of aid requests received. The indicative allocations should be fixed separately for the fruit and vegetables including bananas and milk in line with the voluntary approach to distribution. The allocation key for fruit and vegetables including bananas should reflect the current allocations by Member States, based on the objective criteria of the number of children in the age group of six- to ten-year olds as a proportion of the population, taking into the account also the development status of regions concerned. In order to allow Member States to maintain the scale of their current programmes and with a view
  of
  encouraging others to take up the distribution of milk, it is appropriate to use the combination of
  two
  keys for the allocation of the funds for milk, namely the historical use of funds by Member States under the School Milk Scheme
  and
  the objective criteria of the number of children in the age group of six- to ten-year olds as a proportion of the population used for the fruit and vegetables including bananas. In order to find the right proportion for these
  two
  keys, the power to adopt certain acts should be delegated to the Commission in respect of adopting additional rules concerning the balance between the
  two
  criteria. Furthermore, considering the recurrent changes in the demographic or development situation of regions in Member States, the power to adopt certain acts should be delegated to the Commission in respect of assessing every three years whether the Member States' allocations, based on those criteria, are still up to date. |

Text proposed by the Commission

Amendment

(7)

In order to ensure the efficient and targeted use of Union funds, the power to adopt certain acts should be delegated to the Commission in respect of measures fixing the indicative allocations of the Union aid to each Member State and the methods for reallocating aid between Member States on the basis of aid requests received. The indicative allocations should be fixed separately for the fruit and vegetables including bananas and milk in line with the voluntary approach to distribution. The allocation key for fruit and vegetables including bananas should reflect the current allocations by Member States, based on the objective criteria of the number of children in the age group of six- to ten-year olds as a proportion of the population, taking into the account also the development status of regions concerned. In order to allow Member States to maintain the scale of their current programmes and with a view
  of
  encouraging others to take up the distribution of milk, it is appropriate to use the combination of
  two
  keys for the allocation of the funds for milk, namely the historical use of funds by Member States under the School Milk Scheme
  and
  the objective criteria of the number of children in the age group of six- to ten-year olds as a proportion of the population used for the fruit and vegetables including bananas. In order to find the right proportion for these
  two
  keys, the power to adopt certain acts should be delegated to the Commission in respect of adopting additional rules concerning the balance between the
  two
  criteria. Furthermore, considering the recurrent changes in the demographic or development situation of regions in Member States, the power to adopt certain acts should be delegated to the Commission in respect of assessing every three years whether the Member States' allocations, based on those criteria, are still up to date.

| (7) | In order to ensure the efficient and targeted use of Union funds, the power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of measures fixing the indicative allocations of the Union aid to each Member State and the methods for reallocating aid between Member States on the basis of aid requests received. The indicative allocations should be fixed separately for the fruit and vegetables including bananas and milk in line with the voluntary approach to distribution. The allocation key for fruit and vegetables including bananas should reflect the current allocations by Member States, based on the objective criteria of the number of children in the age group of six- to ten-year olds as a proportion of the population, taking into the account also the development status of regions concerned. In order to allow Member States to maintain the scale of their current programmes and with a view
  to
  encouraging others to take up the distribution of milk, it is appropriate to use the combination of
  four
  keys for the allocation of the funds for milk, namely the historical use of funds by Member States under the School Milk Scheme
  , except in the case of Croatia, for which a specific fixed amount is to be determined on the basis of this Regulation,
  the objective criteria of the number of children in the age group of six- to ten-year-olds as a proportion of the population used for the fruit and vegetables including bananas
  , the degree of development of the regions within a Member State and the setting-up of a minimum level of spending of the Union aid per child and per year
  . In order to find the right proportion for these
  four
  keys, the power to adopt certain acts should be delegated to the Commission in respect of adopting additional rules concerning the balance between the
  four
  criteria. Furthermore, considering the recurrent changes in the demographic or development situation of regions in Member States, the power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of assessing every three years whether the Member States' allocations, based on those criteria, are still up to date.
  An increase of 5 % should be applied to the Union aid in the implementation of this scheme in outermost regions, in view of their limited agricultural diversification and the frequent impossibility of finding certain products in the region concerned, which involves higher transport and storage costs. |
| --- | --- |

(7)

In order to ensure the efficient and targeted use of Union funds, the power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of measures fixing the indicative allocations of the Union aid to each Member State and the methods for reallocating aid between Member States on the basis of aid requests received. The indicative allocations should be fixed separately for the fruit and vegetables including bananas and milk in line with the voluntary approach to distribution. The allocation key for fruit and vegetables including bananas should reflect the current allocations by Member States, based on the objective criteria of the number of children in the age group of six- to ten-year olds as a proportion of the population, taking into the account also the development status of regions concerned. In order to allow Member States to maintain the scale of their current programmes and with a view
  to
  encouraging others to take up the distribution of milk, it is appropriate to use the combination of
  four
  keys for the allocation of the funds for milk, namely the historical use of funds by Member States under the School Milk Scheme
  , except in the case of Croatia, for which a specific fixed amount is to be determined on the basis of this Regulation,
  the objective criteria of the number of children in the age group of six- to ten-year-olds as a proportion of the population used for the fruit and vegetables including bananas
  , the degree of development of the regions within a Member State and the setting-up of a minimum level of spending of the Union aid per child and per year
  . In order to find the right proportion for these
  four
  keys, the power to adopt certain acts should be delegated to the Commission in respect of adopting additional rules concerning the balance between the
  four
  criteria. Furthermore, considering the recurrent changes in the demographic or development situation of regions in Member States, the power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of assessing every three years whether the Member States' allocations, based on those criteria, are still up to date.
  An increase of 5 % should be applied to the Union aid in the implementation of this scheme in outermost regions, in view of their limited agricultural diversification and the frequent impossibility of finding certain products in the region concerned, which involves higher transport and storage costs.

Justification

AGRI Compromise Amendment 4 — part 3.

Amendment 7

Proposal for a regulation

Recital 8

| Text proposed by the Commission | Amendment |
| --- | --- |
| (8) | In order to allow the Member States with a limited demographic size to implement a cost effective scheme, the power to adopt certain acts should be delegated to the Commission in respect of setting the minimum amount of the Union aid that Member States are entitled to receive for fruit and vegetables including bananas and milk. |

Text proposed by the Commission

Amendment

(8)

In order to allow the Member States with a limited demographic size to implement a cost effective scheme, the power to adopt certain acts should be delegated to the Commission in respect of setting the minimum amount of the Union aid that Member States are entitled to receive for fruit and vegetables including bananas and milk.

| (8) | In order to allow the Member States with a limited demographic size to implement a cost-effective scheme, the power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of setting the minimum amount of the Union aid that Member States are entitled to receive for fruit and vegetables including bananas
  , milk
  and milk
  products
  . |
| --- | --- |

(8)

In order to allow the Member States with a limited demographic size to implement a cost-effective scheme, the power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of setting the minimum amount of the Union aid that Member States are entitled to receive for fruit and vegetables including bananas
  , milk
  and milk
  products
  .

Amendment 8

Proposal for a regulation

Recital 9

| Text proposed by the Commission | Amendment |
| --- | --- |
| (9) | In the
  interest
  of sound administration and budget management, Member States wishing to participate in the distribution of fruit and vegetables including bananas and/or milk should apply every year for the Union aid. With a view
  of
  simplifying the procedures and management,
  this application
  should be
  done
  on the basis of separate aid requests. Following the requests of the Member States, the Commission should decide on the definitive allocations for fruit and vegetables including bananas
  and
  milk within the appropriations available in the budget and after taking into account limited transfers between their allocations, which encourage
  prioritising
  of distribution based on
  the
  nutritional needs, The power to adopt certain acts should be delegated to the Commission in respect of the measures setting the conditions and the limits concerning
  these
  transfers. |

Text proposed by the Commission

Amendment

(9)

In the
  interest
  of sound administration and budget management, Member States wishing to participate in the distribution of fruit and vegetables including bananas and/or milk should apply every year for the Union aid. With a view
  of
  simplifying the procedures and management,
  this application
  should be
  done
  on the basis of separate aid requests. Following the requests of the Member States, the Commission should decide on the definitive allocations for fruit and vegetables including bananas
  and
  milk within the appropriations available in the budget and after taking into account limited transfers between their allocations, which encourage
  prioritising
  of distribution based on
  the
  nutritional needs, The power to adopt certain acts should be delegated to the Commission in respect of the measures setting the conditions and the limits concerning
  these
  transfers.

| (9) | In the
  interests
  of sound administration and budget management, Member States wishing to participate in the distribution of fruit and vegetables including bananas and/or milk
  and milk products
  should apply every year for the Union aid. With a view
  to
  simplifying the procedures and management,
  such applications
  should be
  made
  on the basis of separate aid requests. Following
  receipt of
  the requests of the Member States, the Commission should decide on the definitive allocations for fruit and vegetables including bananas
  and/or
  milk
  and milk products
  within the appropriations available in the budget and after taking into account limited transfers between their allocations, which encourage
  the prioritisation
  of distribution based on nutritional needs. The power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of the measures setting the conditions and the limits concerning
  those
  transfers. |
| --- | --- |

(9)

In the
  interests
  of sound administration and budget management, Member States wishing to participate in the distribution of fruit and vegetables including bananas and/or milk
  and milk products
  should apply every year for the Union aid. With a view
  to
  simplifying the procedures and management,
  such applications
  should be
  made
  on the basis of separate aid requests. Following
  receipt of
  the requests of the Member States, the Commission should decide on the definitive allocations for fruit and vegetables including bananas
  and/or
  milk
  and milk products
  within the appropriations available in the budget and after taking into account limited transfers between their allocations, which encourage
  the prioritisation
  of distribution based on nutritional needs. The power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of the measures setting the conditions and the limits concerning
  those
  transfers.

Amendment 9

Proposal for a regulation

Recital 9 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (9a) | In order to simplify the administrative and organisational procedures for the schools taking part in the two programmes, the power to adopt certain acts should be delegated to the Commission, in accordance with Article 290 of the Treaty on the Functioning of the European Union, in respect of the introduction of single procedures for schools’ applications to participate and for monitoring. |

Text proposed by the Commission

Amendment

(9a)

In order to simplify the administrative and organisational procedures for the schools taking part in the two programmes, the power to adopt certain acts should be delegated to the Commission, in accordance with Article 290 of the Treaty on the Functioning of the European Union, in respect of the introduction of single procedures for schools’ applications to participate and for monitoring.

Justification

It is important to reduce red tape which deters schools from participating, especially so that schools seeking to participate in both programmes should not be obliged to fill out two separate sets of forms or be subject to a variety of monitoring procedures.

Amendments 10 and 57

Proposal for a regulation

Recital 10

| Text proposed by the Commission | Amendment |
| --- | --- |
| (10) | The national strategy should be considered as the condition for
  the
  Member State's participation in the scheme
  and
  as a strategic
  multiannual
  document, setting out targets to be achieved by
  Member States
  and
  their
  priorities. Member States should be allowed to update them regularly, in particular in light of the evaluations and reassessment of priorities or targets. |

Text proposed by the Commission

Amendment

(10)

The national strategy should be considered as the condition for
  the
  Member State's participation in the scheme
  and
  as a strategic
  multiannual
  document, setting out targets to be achieved by
  Member States
  and
  their
  priorities. Member States should be allowed to update them regularly, in particular in light of the evaluations and reassessment of priorities or targets.

| (10) | The national strategy should be considered as a condition for
  a
  Member State’s participation in the scheme
  . Members States wishing to participate should be required to present
  a strategic document
  covering a period of six years
  ,
  quantifying the existing problem and
  setting out targets to be achieved by
  them, methodologies in line with the problem presented
  and
  respective
  priorities. Member States should be allowed to update them regularly, in particular in light of the evaluations and reassessment of priorities or targets
  and of the success of their programmes
  .
  When Member States update their national strategy, they should be required to formally consult with stakeholders within their Member State. |
| --- | --- |

(10)

The national strategy should be considered as a condition for
  a
  Member State’s participation in the scheme
  . Members States wishing to participate should be required to present
  a strategic document
  covering a period of six years
  ,
  quantifying the existing problem and
  setting out targets to be achieved by
  them, methodologies in line with the problem presented
  and
  respective
  priorities. Member States should be allowed to update them regularly, in particular in light of the evaluations and reassessment of priorities or targets
  and of the success of their programmes
  .
  When Member States update their national strategy, they should be required to formally consult with stakeholders within their Member State.

Amendment 11

Proposal for a regulation

Recital 11 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (11a) | In order to raise the profile of the scheme among those who benefit from it throughout the Union, it should be given a single identity and a Union logo, for compulsory use on posters relating to schools’ participation and in information materials made available to pupils under the accompanying educational measures. The Commission should therefore be empowered to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union in order to establish specific criteria in respect of presentation, content, size and the display of the shared identity and the Union logo. |

Text proposed by the Commission

Amendment

(11a)

In order to raise the profile of the scheme among those who benefit from it throughout the Union, it should be given a single identity and a Union logo, for compulsory use on posters relating to schools’ participation and in information materials made available to pupils under the accompanying educational measures. The Commission should therefore be empowered to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union in order to establish specific criteria in respect of presentation, content, size and the display of the shared identity and the Union logo.

Justification

Amendment in line with AGRI compromise 5.

Amendment 12

Proposal for a regulation

Recital 12

| Text proposed by the Commission | Amendment |
| --- | --- |
| (12) | In order to ensure that the price of products provided to children under the scheme fully reflects the amount of the aid provided and that subsidised products are not deflected from their intended use, the power to adopt certain acts should be delegated to the Commission in respect of establishment of price monitoring under the scheme. |

Text proposed by the Commission

Amendment

(12)

In order to ensure that the price of products provided to children under the scheme fully reflects the amount of the aid provided and that subsidised products are not deflected from their intended use, the power to adopt certain acts should be delegated to the Commission in respect of establishment of price monitoring under the scheme.

| (12) | In order to ensure that the price of products provided to children under the scheme fully reflects the amount of the aid provided and that subsidised products are not deflected from their intended use, the power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of establishment of price monitoring under the scheme. 
  Those acts should not discourage the Member States from sourcing local produce. |
| --- | --- |

(12)

In order to ensure that the price of products provided to children under the scheme fully reflects the amount of the aid provided and that subsidised products are not deflected from their intended use, the power to adopt certain acts
  in accordance with Article 290 of the Treaty on the Functioning of the European Union
  should be delegated to the Commission in respect of establishment of price monitoring under the scheme. 
  Those acts should not discourage the Member States from sourcing local produce.

Justification

Amendment in line with AGRI compromise 5.

Amendment 13

Proposal for a regulation

Recital 12 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (12a) | In order to verify the effectiveness of the programmes in the Member States, financing should be provided for initiatives to monitor and evaluate the results achieved, with particular attention being paid to medium-term changes in consumption. |

Text proposed by the Commission

Amendment

(12a)

In order to verify the effectiveness of the programmes in the Member States, financing should be provided for initiatives to monitor and evaluate the results achieved, with particular attention being paid to medium-term changes in consumption.

Amendment 14

Proposal for a regulation

Recital 13 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (13a) | This Regulation should not interfere with the division of regional or local competences within the Member States, including regional and local self-government. |

Text proposed by the Commission

Amendment

(13a)

This Regulation should not interfere with the division of regional or local competences within the Member States, including regional and local self-government.

Amendment 15

Proposal for a regulation

Article 1 — paragraph 1 — point 3

Regulation (EU) No 1308/2013

Article 23 — title

| Text proposed by the Commission | Amendment |
| --- | --- |
| Aid for the supply of fruit and vegetables, bananas
  and
  milk,
  supporting
  educational measures and related costs | Aid for the supply of fruit and vegetables, bananas, milk
  and certain milk products, accompanying
   educational measures and related costs |

Text proposed by the Commission

Amendment

Aid for the supply of fruit and vegetables, bananas
  and
  milk,
  supporting
  educational measures and related costs

Aid for the supply of fruit and vegetables, bananas, milk
  and certain milk products, accompanying
   educational measures and related costs

Justification

AGRI Compromise Amendment 1 — part 1.

Amendment 16

Proposal for a regulation

Article 1 — paragraph 1 — point 3

Regulation (EU) No 1308/2013

Article 23 — paragraph 1 — point a

| Text proposed by the Commission | Amendment |
| --- | --- |
| (a) | for the supply of fruit and vegetables, bananas, and milk; |

Text proposed by the Commission

Amendment

(a)

for the supply of fruit and vegetables, bananas, and milk;

| (a) | for the supply of fruit and vegetables
  including
  bananas, milk
  and milk products as referred to in paragraph 2
  ; |
| --- | --- |

(a)

for the supply of fruit and vegetables
  including
  bananas, milk
  and milk products as referred to in paragraph 2
  ;

Justification

AGRI Compromise Amendment 1 — part 1. This compromise supports the Commission proposal that Member States should still be allowed to distribute fresh products. The formulation ‘fruits and vegetables’ covers fresh and chilled products, ready to eat portions (such as peeled/sliced carrots in small bags) and also allows schools to squeeze the products in order to make fresh juices. It is up to Member States to decide and put in their strategy which (and how) fresh products should be distributed.

Amendment 17

Proposal for a regulation

Article 1 — paragraph 1 — point 3

Regulation (EU) No 1308/2013

Article 23 — paragraph 1 — point b

| Text proposed by the Commission | Amendment |
| --- | --- |
| (b) | for
  supporting
  educational measures; and |

Text proposed by the Commission

Amendment

(b)

for
  supporting
  educational measures; and

| (b) | for
  accompanying
  educational measures; and |
| --- | --- |

(b)

for
  accompanying
  educational measures; and

Justification

AGRI Compromise Amendment 2 — part 1. Replacing ‘supporting’ by ‘accompanying’ aims at clarifying that educational measures supported by the EU under the school schemes are not the responsibility of school teachers but of external speakers like nutritionists, farmers etc.

Amendment 18

Proposal for a regulation

Article 1 — paragraph 1 — point 3

Regulation (EU) No 1308/2013

Article 23 — paragraph 1 — point c

| Text proposed by the Commission | Amendment |
| --- | --- |
| (c) | to cover
  certain
  related costs linked to logistics and distribution, equipment, publicity, monitoring
  and
  evaluation. |

Text proposed by the Commission

Amendment

(c)

to cover
  certain
  related costs linked to logistics and distribution, equipment, publicity, monitoring
  and
  evaluation.

| (c) | to cover related costs linked to logistics and distribution, equipment,
  communication and
  publicity, monitoring, evaluation
  and other activities directly linked to the implementation of the scheme
  . |
| --- | --- |

(c)

to cover related costs linked to logistics and distribution, equipment,
  communication and
  publicity, monitoring, evaluation
  and other activities directly linked to the implementation of the scheme
  .

Amendment 19

Proposal for a regulation

Article 1 — paragraph 1 — point 3

Regulation (EU) No 1308/2013

Article 23 — paragraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| 2.   Member States wishing to participate in the aid scheme established in paragraph 1 (‘the school scheme’) may distribute
  either
  fruit and vegetables including bananas
  or
  milk falling within CN code 0401
  , or both
  . | 2.   Member States wishing to participate in the aid scheme established in paragraph 1 (‘the school scheme’) may distribute: |
| | (a) | fruit and vegetables including bananas
  and/or |

Text proposed by the Commission

Amendment

2.   Member States wishing to participate in the aid scheme established in paragraph 1 (‘the school scheme’) may distribute
  either
  fruit and vegetables including bananas
  or
  milk falling within CN code 0401
  , or both
  .

2.   Member States wishing to participate in the aid scheme established in paragraph 1 (‘the school scheme’) may distribute:

(a)

fruit and vegetables including bananas
  and/or

| (b) | milk
  , and milk products of the following categories (‘milk products’): |
| --- | --- |

(b)

milk
  , and milk products of the following categories (‘milk products’):

| | (i) | milk and cream
  falling within CN code 0401; |
| --- | --- | --- |

(i)

milk and cream
  falling within CN code 0401;

| | (ii) | buttermilk, curdled milk, yoghurt, kefir and other fermented or acidified milk and cream falling within CN code 0403, excluding those containing added flavouring or non-lactic materials falling within CN codes 0403 10 51 to 99 and 0403 90 71 to 99; |
| --- | --- | --- |

(ii)

buttermilk, curdled milk, yoghurt, kefir and other fermented or acidified milk and cream falling within CN code 0403, excluding those containing added flavouring or non-lactic materials falling within CN codes 0403 10 51 to 99 and 0403 90 71 to 99;

| | (iii) | cheese and curd falling within CN code 0406; |
| --- | --- | --- |

(iii)

cheese and curd falling within CN code 0406;

| | (iv) | lactose-free milk consisting of natural milk the composition of which has been changed with respect to its lactose content and not containing other non-lactic matter falling within CN code 0404 90
  . |
| --- | --- | --- |

(iv)

lactose-free milk consisting of natural milk the composition of which has been changed with respect to its lactose content and not containing other non-lactic matter falling within CN code 0404 90
  .

Justification

AGRI Compromise Amendment 1 — part 2. The purpose of these schemes is to encourage the consumption of agricultural products and install healthy eating habits. Furthermore, we have concrete arguments to justify that the consumption of drinking milk is falling; cheese and natural yoghurts are second best alternative due to intolerances to lactose.

Amendment 20

Proposal for a regulation

Article 1 — paragraph 1 — point 3

Regulation (EU) No 1308/2013

Article 23 — paragraph 3

| Text proposed by the Commission | Amendment |
| --- | --- |
| 3.   As a condition for their participation in the school scheme Member States shall draw up, prior to their participation in the school scheme, and subsequently every
  6
  years, at national or regional level, a strategy for the implementation of the scheme. The strategy may be amended by a Member State, in particular in the light of monitoring and evaluation. The strategy shall
  at least
  identify the needs to be met, the ranking of the needs in terms of priorities, the target population, the results expected and the quantified targets to be attained in relation to the initial situation, and lay down the most appropriate instruments and actions for attaining those objectives. | 3.   As a condition for their participation in the school scheme Member States shall draw up, prior to their participation in the school scheme, and subsequently every
  six
  years, at national or regional level, a strategy for the implementation of the scheme. The strategy may be amended by a Member State
  or by a regional authority
  , in particular in the light of monitoring and evaluation
  and of the results achieved, making good use of the Union funds
  . The strategy shall
  , as a minimum,
  identify the needs to be met, the ranking of the needs in terms of priorities, the target population, the results expected and the quantified targets to be attained in relation to the initial situation, and
  shall
  lay down the most appropriate instruments and actions for attaining those objectives |

Text proposed by the Commission

Amendment

3.   As a condition for their participation in the school scheme Member States shall draw up, prior to their participation in the school scheme, and subsequently every
  6
  years, at national or regional level, a strategy for the implementation of the scheme. The strategy may be amended by a Member State, in particular in the light of monitoring and evaluation. The strategy shall
  at least
  identify the needs to be met, the ranking of the needs in terms of priorities, the target population, the results expected and the quantified targets to be attained in relation to the initial situation, and lay down the most appropriate instruments and actions for attaining those objectives.

3.   As a condition for their participation in the school scheme Member States shall draw up, prior to their participation in the school scheme, and subsequently every
  six
  years, at national or regional level, a strategy for the implementation of the scheme. The strategy may be amended by a Member State
  or by a regional authority
  , in particular in the light of monitoring and evaluation
  and of the results achieved, making good use of the Union funds
  . The strategy shall
  , as a minimum,
  identify the needs to be met, the ranking of the needs in terms of priorities, the target population, the results expected and the quantified targets to be attained in relation to the initial situation, and
  shall
  lay down the most appropriate instruments and actions for attaining those objectives

Justification

Allowing greater scope for sub-national authorities to control the scheme in line with the constitutional distribution of competences within Member States. This amendment also reflects the opinion of the Committee of the Regions.

Amendment 21

Proposal for a regulation

Article 1 — paragraph 1 — point 3

Regulation (EU) No 1308/2013

Article 23 — paragraph 4

| Text proposed by the Commission | Amendment |
| --- | --- |
| 4.   Member States shall, in order to make the school scheme effective, also provide for the
  supporting
  educational measures, which may include measures and activities aimed at connecting children with agriculture and a wider variety of agricultural products,
  educating
  about related issues, such as healthy eating habits, combating food waste, local food chains
  or
  organic farming. | 4.   Member States shall, in order to make the school scheme effective, also provide for the
  accompanying
  educational measures, which may include measures and activities aimed at connecting children with agriculture
  , such as visits to farms,
  and
  the distribution of
  a wider variety of agricultural products,
  such as processed fruit and vegetables and other local, regional or national specialities, such as honey, olives and olive oil, and dried fruits. This will contribute to education
   about related issues, such as healthy eating habits, combating food waste, local food chains, organic farming
  and sustainable production
  . |

Text proposed by the Commission

Amendment

4.   Member States shall, in order to make the school scheme effective, also provide for the
  supporting
  educational measures, which may include measures and activities aimed at connecting children with agriculture and a wider variety of agricultural products,
  educating
  about related issues, such as healthy eating habits, combating food waste, local food chains
  or
  organic farming.

4.   Member States shall, in order to make the school scheme effective, also provide for the
  accompanying
  educational measures, which may include measures and activities aimed at connecting children with agriculture
  , such as visits to farms,
  and
  the distribution of
  a wider variety of agricultural products,
  such as processed fruit and vegetables and other local, regional or national specialities, such as honey, olives and olive oil, and dried fruits. This will contribute to education
   about related issues, such as healthy eating habits, combating food waste, local food chains, organic farming
  and sustainable production
  .

Justification

AGRI Compromise Amendment 2 — part 2. Taking into account that educational measures allow for the occasional distribution of other products, the compromise includes here amendments related to local, regional and national specialities such as honey, olives, olive oil and dried fruits.

Amendment 50

Proposal for a regulation

Article 1 — paragraph 1 — point 3

Regulation (EU) No 1308/2013

Article 23 — paragraph 5

| Text proposed by the Commission | Amendment |
| --- | --- |
| 5.   When drawing up their strategies, Member States shall determine a list of agricultural products, in addition to fruit and vegetables, bananas and milk, that may occasionally be included under the
  supporting
  educational measures. | 5.   When drawing up their strategies, Member States shall determine a list of agricultural products, in addition to fruit and vegetables, bananas, and milk
  and milk products
  , that may occasionally be included
  for distribution
  under the
  accompanying
  educational measures.
  With regard to processed fruit and vegetables, products containing added sugar, added fat, added salt, added sweeteners and/or artificial flavour enhancers (artificial food additive codes E620-E650) shall not be allowed. |

Text proposed by the Commission

Amendment

5.   When drawing up their strategies, Member States shall determine a list of agricultural products, in addition to fruit and vegetables, bananas and milk, that may occasionally be included under the
  supporting
  educational measures.

5.   When drawing up their strategies, Member States shall determine a list of agricultural products, in addition to fruit and vegetables, bananas, and milk
  and milk products
  , that may occasionally be included
  for distribution
  under the
  accompanying
  educational measures.
  With regard to processed fruit and vegetables, products containing added sugar, added fat, added salt, added sweeteners and/or artificial flavour enhancers (artificial food additive codes E620-E650) shall not be allowed.

Justification

Food additives numbered E620-E650 have harmful effects to consumers health if consumed in more significant quantities. Since the programme is aimed at promoting healthy food, allowing additives with dubious health effects would go against its goals.

Amendment 23

Proposal for a regulation

Article 1 — paragraph 1 — point 3

Regulation (EU) No 1308/2013

Article 23 — paragraph 6

| Text proposed by the Commission | Amendment |
| --- | --- |
| 6.   Member States shall choose the products to be featured in the distribution or to be included in
  supporting
  educational measures on the basis of objective criteria which
  may
  include
  the
  health
  and
  environmental considerations, seasonality, variety, or availability of local produce, giving priority
  to the extent practicable
  to products originating in the Union, particularly to local purchasing, organic products
  , short supply chains
  or environmental benefits. | 6.   Member States shall choose the products to be featured in the distribution or to be included in
  accompanying
  educational measures on the basis of objective criteria which
  shall
  include health, environmental
  and ethical
  considerations, seasonality, variety, or availability of local produce, giving priority to products originating in the Union, particularly to local
  or regional production and
  purchasing,
  short supply chains,
  organic products or environmental benefits
  and quality products as designated in Regulation (EU) No 1151/2012
  .
  In the case of bananas, fair trade products from third countries may be given priority only when equivalent products originating in the Union are not available. |

Text proposed by the Commission

Amendment

6.   Member States shall choose the products to be featured in the distribution or to be included in
  supporting
  educational measures on the basis of objective criteria which
  may
  include
  the
  health
  and
  environmental considerations, seasonality, variety, or availability of local produce, giving priority
  to the extent practicable
  to products originating in the Union, particularly to local purchasing, organic products
  , short supply chains
  or environmental benefits.

6.   Member States shall choose the products to be featured in the distribution or to be included in
  accompanying
  educational measures on the basis of objective criteria which
  shall
  include health, environmental
  and ethical
  considerations, seasonality, variety, or availability of local produce, giving priority to products originating in the Union, particularly to local
  or regional production and
  purchasing,
  short supply chains,
  organic products or environmental benefits
  and quality products as designated in Regulation (EU) No 1151/2012
  .
  In the case of bananas, fair trade products from third countries may be given priority only when equivalent products originating in the Union are not available.

Justification

AGRI Compromise Amendment 3.

Amendment 24

Proposal for a regulation

Article 1 — paragraph 1 — point 3

Regulation (EU) No 1308/2013

Article 23 — paragraph 7

| Text proposed by the Commission | Amendment |
| --- | --- |
| 7.   Member States shall, in order to promote healthy eating habits, ensure that their
  competent health authorities endorse
  the list of
  all
  the products supplied under the school scheme and decide on their nutritional aspects. | 7.   Member States shall, in order to promote healthy eating habits,
  including among children who are lactose-intolerant,
  ensure that their
  authorities responsible for nutrition and/or health agree to
  the list of the products supplied under the school scheme and decide on their nutritional aspects. |

Text proposed by the Commission

Amendment

7.   Member States shall, in order to promote healthy eating habits, ensure that their
  competent health authorities endorse
  the list of
  all
  the products supplied under the school scheme and decide on their nutritional aspects.

7.   Member States shall, in order to promote healthy eating habits,
  including among children who are lactose-intolerant,
  ensure that their
  authorities responsible for nutrition and/or health agree to
  the list of the products supplied under the school scheme and decide on their nutritional aspects.

Amendment 25

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 1 — subparagraph 1 — introductory part

| Text proposed by the Commission | Amendment |
| --- | --- |
| 1.   The aid under the school scheme allocated for the distribution of products, the
  supporting
  educational measures and the related costs referred to in Article 23(1), and without prejudice to the provisions in paragraph 4, shall not exceed: | 1.   The aid under the school scheme allocated for the distribution of products, the
  accompanying
  educational measures and the related costs referred to in Article 23(1), and without prejudice to the provisions in paragraph 4
  of this Article
  , shall not exceed: |

Text proposed by the Commission

Amendment

1.   The aid under the school scheme allocated for the distribution of products, the
  supporting
  educational measures and the related costs referred to in Article 23(1), and without prejudice to the provisions in paragraph 4, shall not exceed:

1.   The aid under the school scheme allocated for the distribution of products, the
  accompanying
  educational measures and the related costs referred to in Article 23(1), and without prejudice to the provisions in paragraph 4
  of this Article
  , shall not exceed:

Justification

Amendment in line with AGRI Compromise Amendment 2.

Amendment 26

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 1 — subparagraph 1 — point b

| Text proposed by the Commission | Amendment |
| --- | --- |
| (b) | for milk: EUR 
  80
   million per school year. |

Text proposed by the Commission

Amendment

(b)

for milk: EUR 
  80
   million per school year.

| (b) | for milk
  and milk products
  : EUR 
  100
   million per school year. |
| --- | --- |

(b)

for milk
  and milk products
  : EUR 
  100
   million per school year.

Justification

AGRI Compromise Amendment 4 — part 4. An increase of 20 million euros for the milk envelop is foreseen in order to allow the introduction of a minimum spending per child per year for all the Member States and in order to ensure that no Member State loses as a result of the introduction of the new criteria.

Amendment 27

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 1 — subparagraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| The Commission shall be empowered to adopt delegated acts in accordance with Article 227 determining the level of Union aid that may be paid towards the price of the portion of fruit and vegetables including bananas and milk distributed and laying down the definition of a portion. The Commission shall also be empowered to adopt delegated acts in accordance with Article 227 fixing a minimum amount and a maximum amount for the financing of supporting educational measures from Member States’ annual definitive allocations. | deleted |

Text proposed by the Commission

Amendment

The Commission shall be empowered to adopt delegated acts in accordance with Article 227 determining the level of Union aid that may be paid towards the price of the portion of fruit and vegetables including bananas and milk distributed and laying down the definition of a portion. The Commission shall also be empowered to adopt delegated acts in accordance with Article 227 fixing a minimum amount and a maximum amount for the financing of supporting educational measures from Member States’ annual definitive allocations.

deleted

Justification

Powers set out in Article 24(1a) instead for the sake of consistency.

Amendment 28

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 2 — subparagraph 1 — point a

| Text proposed by the Commission | Amendment |
| --- | --- |
| (a) | for fruit and vegetables including bananas:
  the
  objective criteria based on: |

Text proposed by the Commission

Amendment

(a)

for fruit and vegetables including bananas:
  the
  objective criteria based on:

| (a) | for fruit and vegetables including bananas: objective criteria based on: |
| --- | --- |

(a)

for fruit and vegetables including bananas: objective criteria based on:

| | (i) | the number of six- to ten-year old children as a proportion of the population, |
| --- | --- | --- |

(i)

the number of six- to ten-year old children as a proportion of the population,

| | (i) | the number of six- to ten-year old children as a proportion of the population
  of the Member State concerned
  , |
| --- | --- | --- |

(i)

the number of six- to ten-year old children as a proportion of the population
  of the Member State concerned
  ,

| | (ii) | the degree of development of the regions within a Member State so to ensure higher aid to less developed regions within the meaning of Article 3(5) of this Regulation, the outermost regions listed in Article 349
  of the Treaty or and
  the smaller Aegean Islands within the meaning Article 1(2) of Regulation (EU) No 229/2013, and |
| --- | --- | --- |

(ii)

the degree of development of the regions within a Member State so to ensure higher aid to less developed regions within the meaning of Article 3(5) of this Regulation, the outermost regions listed in Article 349
  of the Treaty or and
  the smaller Aegean Islands within the meaning Article 1(2) of Regulation (EU) No 229/2013, and

| | (ii) | the degree of development of the regions within a Member State so to ensure
  the provision of
  higher aid to less developed regions within the meaning of Article 3(5) of this Regulation,
  to
  the outermost regions listed in Article 349
  TFEU and/or to
  the smaller Aegean Islands within the meaning Article 1(2) of Regulation (EU) No 229/2013, |
| --- | --- | --- |

(ii)

the degree of development of the regions within a Member State so to ensure
  the provision of
  higher aid to less developed regions within the meaning of Article 3(5) of this Regulation,
  to
  the outermost regions listed in Article 349
  TFEU and/or to
  the smaller Aegean Islands within the meaning Article 1(2) of Regulation (EU) No 229/2013,

| | (iii) | an additional increase of 5 % of the Union aid, to apply to the outermost regions, with a further 5 % increase if those regions import products from other outermost regions that are close by;
  and |
| --- | --- | --- |

(iii)

an additional increase of 5 % of the Union aid, to apply to the outermost regions, with a further 5 % increase if those regions import products from other outermost regions that are close by;
  and

Justification

AGRI Compromise Amendment 4 — part 1. Objective criteria based on the number of 6-10 years as proportion of the population and the degree of development of the regions within a Member State should be kept as it appears to be a fair system corresponding to the needs of Member States.

Amendment 29

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 2 — subparagraph 1 — point b

| Text proposed by the Commission | Amendment |
| --- | --- |
| (b) | for milk:
  the historical use of funds under previous schemes for the supply of milk and milk products to children and objective criteria based on their proportion of six- to ten-year old children. |

Text proposed by the Commission

Amendment

(b)

for milk:
  the historical use of funds under previous schemes for the supply of milk and milk products to children and objective criteria based on their proportion of six- to ten-year old children.

| (b) | for milk
  and milk products, a combination of the following criteria, to apply during a transitional period of six years starting from the operation of the new programme
  : |
| --- | --- |

(b)

for milk
  and milk products, a combination of the following criteria, to apply during a transitional period of six years starting from the operation of the new programme
  :

| | (i) | the number of six- to ten-year-old children as a proportion of the population of the Member State concerned; |
| --- | --- | --- |

(i)

the number of six- to ten-year-old children as a proportion of the population of the Member State concerned;

| | (ii) | the degree of development of the regions within a Member State, so as to ensure the provision of higher aid to less developed regions within the meaning of Article 3(5) of this Regulation, to the outermost regions listed in Article 349 TFEU and/or to the smaller Aegean Islands within the meaning of Article 1(2) of Regulation (EU) No 229/2013; |
| --- | --- | --- |

(ii)

the degree of development of the regions within a Member State, so as to ensure the provision of higher aid to less developed regions within the meaning of Article 3(5) of this Regulation, to the outermost regions listed in Article 349 TFEU and/or to the smaller Aegean Islands within the meaning of Article 1(2) of Regulation (EU) No 229/2013;

| | (iii) | the historical use of funds under previous schemes for the supply of milk and milk products to children, except for Croatia, for which a flat-rate payment system shall be introduced; in order to ensure a fair distribution of funds between Member States, this criterion shall be counterbalanced by the introduction of a minimum annual amount of Union aid per child in the age group referred in point (i) and defined on the basis of the average use of funds per child per Member State; |
| --- | --- | --- |

(iii)

the historical use of funds under previous schemes for the supply of milk and milk products to children, except for Croatia, for which a flat-rate payment system shall be introduced; in order to ensure a fair distribution of funds between Member States, this criterion shall be counterbalanced by the introduction of a minimum annual amount of Union aid per child in the age group referred in point (i) and defined on the basis of the average use of funds per child per Member State;

| | (iv) | an additional increase of 5 % of the Union aid, to apply to the outermost regions, with a further 5 % increase if those regions import products from other outermost regions that are close by; |
| --- | --- | --- |

(iv)

an additional increase of 5 % of the Union aid, to apply to the outermost regions, with a further 5 % increase if those regions import products from other outermost regions that are close by;

Justification

AGRI Compromise Amendment 4 — part 2. Taking into account the amendments tabled, in particular those deleting the historical criteria for milk, the objective of this compromise is to set a fairer allocation system without penalising Member States that used efficiently the school milk scheme up to now and received larger amounts of aid. This compromise is based upon calculations that DG AGRI produced at the request of the rapporteur.

Amendment 30

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 2 — subparagraph 1 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | After the end of the transitional period referred to in point (b), milk and milk products shall be subject to the criteria laid down in points (i) and (ii) of point (a)
  . |

Text proposed by the Commission

Amendment

After the end of the transitional period referred to in point (b), milk and milk products shall be subject to the criteria laid down in points (i) and (ii) of point (a)
  .

Justification

AGRI Compromise Amendment 4 — part 2.

Amendment 31

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 2 — subparagraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| The Commission shall assess at least every three years whether the indicative allocations for fruit and vegetables including bananas and for milk remain consistent with objective criteria referred to in this paragraph. | The Commission shall assess at least every three years whether the indicative allocations for fruit and vegetables including bananas, and for milk
  and milk products
   remain consistent with
  the
  objective criteria referred to in this paragraph. |

Text proposed by the Commission

Amendment

The Commission shall assess at least every three years whether the indicative allocations for fruit and vegetables including bananas and for milk remain consistent with objective criteria referred to in this paragraph.

The Commission shall assess at least every three years whether the indicative allocations for fruit and vegetables including bananas, and for milk
  and milk products
   remain consistent with
  the
  objective criteria referred to in this paragraph.

Justification

Amendment in line with AGRI Compromise Amendment 1.

Amendment 32

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 2 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 2a.
     
  Member States shall ensure that a minimum of 10 % and a maximum of 20 % of the funding allocated to them annually under the school scheme is earmarked for accompanying educational measures. |

Text proposed by the Commission

Amendment

2a.
     
  Member States shall ensure that a minimum of 10 % and a maximum of 20 % of the funding allocated to them annually under the school scheme is earmarked for accompanying educational measures.

Justification

AGRI Compromise Amendment 2 — part 4. Taking into account the fundamental importance of educational measures under the new scheme, and the amendments tabled, the compromise establishes a minimum of 10 % and a maximum of 20 % for the financing of educational measures.

Amendment 33

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 4

| Text proposed by the Commission | Amendment |
| --- | --- |
| 4.   Without exceeding the global ceiling of EUR
  230
   million resulting from the amounts referred to under points (a) and (b) of paragraph 1, Member States may transfer up to
  15 %
  of their indicative allocations for fruit and vegetables including bananas or for milk to the other sector under the conditions to be specified by the Commission by means of delegated acts adopted in accordance with Article 227. | 4.   Without exceeding the global ceiling of EUR
  250
   million resulting from the amounts referred to under points (a) and (b) of paragraph 1, Member States may transfer up to
  10 %
  of their indicative allocations for fruit and vegetables including bananas or for milk
  and milk products
  to the other sector
  , and this transfer may be increased to 20 % in the case of outermost regions,
  under the conditions to be specified by the Commission by means of delegated acts adopted in accordance with Article 227. |

Text proposed by the Commission

Amendment

4.   Without exceeding the global ceiling of EUR
  230
   million resulting from the amounts referred to under points (a) and (b) of paragraph 1, Member States may transfer up to
  15 %
  of their indicative allocations for fruit and vegetables including bananas or for milk to the other sector under the conditions to be specified by the Commission by means of delegated acts adopted in accordance with Article 227.

4.   Without exceeding the global ceiling of EUR
  250
   million resulting from the amounts referred to under points (a) and (b) of paragraph 1, Member States may transfer up to
  10 %
  of their indicative allocations for fruit and vegetables including bananas or for milk
  and milk products
  to the other sector
  , and this transfer may be increased to 20 % in the case of outermost regions,
  under the conditions to be specified by the Commission by means of delegated acts adopted in accordance with Article 227.

Justification

AGRI Compromise Amendment 4 — part 5. An increase of 20 million euros for the milk envelope is foreseen in order to allow the introduction of a minimum spending per child per year for all the Member States and in order to ensure that no Member State loses as a result of the introduction of the new criteria. On budgetary transfers, the compromise is a middle way between amendments tabled on this issue.

Amendment 34

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 5 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 5a.
     
  Union aid provided in accordance with paragraph 1 shall not be used to replace funding for any existing national school fruit or milk schemes providing fruit and vegetables, processed fruit and vegetables, bananas, milk and milk products or other school distribution schemes that include such products. Union aid shall be provided to supplement national financing. |

Text proposed by the Commission

Amendment

5a.
     
  Union aid provided in accordance with paragraph 1 shall not be used to replace funding for any existing national school fruit or milk schemes providing fruit and vegetables, processed fruit and vegetables, bananas, milk and milk products or other school distribution schemes that include such products. Union aid shall be provided to supplement national financing.

Justification

Reintroducing Article 23, paragraph 6 from the CMO: EU funds should be genuinely additional to national financing, to avoid a deadweight effect.

Amendment 35

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 6 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 6a.
     
  Member States may decide, consistently with their respective strategies, not to grant the aid requested where the amount of aid requested is less than a minimum amount fixed by the Member State concerned. |

Text proposed by the Commission

Amendment

6a.
     
  Member States may decide, consistently with their respective strategies, not to grant the aid requested where the amount of aid requested is less than a minimum amount fixed by the Member State concerned.

Amendment 36

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 7

| Text proposed by the Commission | Amendment |
| --- | --- |
| 7.   The Union may also finance, pursuant to Article 6 of Regulation (EU) No 1306/2013, information, monitoring and evaluation measures relating to the school scheme, including raising public awareness of
  it
  , and related networking measures. | 7.   The Union may also finance, pursuant to Article 6 of Regulation (EU) No 1306/2013, information,
  communication and publicity,
  monitoring and evaluation measures relating to the school scheme, including raising public awareness of
  its objectives, especially targeting parents and trainers,
  and related networking measures
  and other activities directly linked to the implementation of the school scheme
  . |

Text proposed by the Commission

Amendment

7.   The Union may also finance, pursuant to Article 6 of Regulation (EU) No 1306/2013, information, monitoring and evaluation measures relating to the school scheme, including raising public awareness of
  it
  , and related networking measures.

7.   The Union may also finance, pursuant to Article 6 of Regulation (EU) No 1306/2013, information,
  communication and publicity,
  monitoring and evaluation measures relating to the school scheme, including raising public awareness of
  its objectives, especially targeting parents and trainers,
  and related networking measures
  and other activities directly linked to the implementation of the school scheme
  .

Amendment 37

Proposal for a regulation

Article 1 — paragraph 1 — point 4

Regulation (EU) No 1308/2013

Article 23 a — paragraph 8

| Text proposed by the Commission | Amendment |
| --- | --- |
| 8.   Member States participating in the school scheme shall publicise, at the places where the food is distributed, their involvement in the scheme and the fact that it is subsidised by the Union. Member States shall ensure the added value and the visibility of the Union school scheme in relation to the provision of other meals in educational establishments. | 8.   Member States participating in the school scheme shall publicise, at the places where the food is distributed, their involvement in the scheme and the fact that it is subsidised by the Union
  , by way of posters at school entrances. Member States may, in addition, use any suitable communication medium such as dedicated websites, informative graphic material, and information and awareness-raising campaigns. A common identifier and Union logo shall be used on all accompanying information material
  . Member States shall ensure the added value and the visibility of the Union school scheme in relation to the provision of other meals in educational establishments. |

Text proposed by the Commission

Amendment

8.   Member States participating in the school scheme shall publicise, at the places where the food is distributed, their involvement in the scheme and the fact that it is subsidised by the Union. Member States shall ensure the added value and the visibility of the Union school scheme in relation to the provision of other meals in educational establishments.

8.   Member States participating in the school scheme shall publicise, at the places where the food is distributed, their involvement in the scheme and the fact that it is subsidised by the Union
  , by way of posters at school entrances. Member States may, in addition, use any suitable communication medium such as dedicated websites, informative graphic material, and information and awareness-raising campaigns. A common identifier and Union logo shall be used on all accompanying information material
  . Member States shall ensure the added value and the visibility of the Union school scheme in relation to the provision of other meals in educational establishments.

Justification

AGRI Compromise Amendment 5 — part 1. Member States distributing the EU aid should use posters at school entrances in order to ensure a better visibility of the EU action as foreseen in the existing implementing regulations for the schemes. Taking into account the EU added value of the scheme, it is important to strengthen its visibility and public awareness, especially at a time when the disillusionment on Europe is increasing.

Amendment 38

Proposal for a regulation

Article 1 — paragraph 1 — point 5

Regulation (EU) No 1308/2013

Article 24 — paragraph 1 — point c

| Text proposed by the Commission | Amendment |
| --- | --- |
| (c) | the drawing-up of the national or regional strategies and on the
  supporting
  educational measures. |

Text proposed by the Commission

Amendment

(c)

the drawing-up of the national or regional strategies and on the
  supporting
  educational measures.

| (c) | the drawing-up of the national or regional strategies and on the
  accompanying
  educational measures. |
| --- | --- |

(c)

the drawing-up of the national or regional strategies and on the
  accompanying
  educational measures.

Justification

Amendment in line with AGRI Compromise Amendment 2.

Amendment 39

Proposal for a regulation

Article 1 — paragraph 1 — point 5

Regulation (EU) No 1308/2013

Article 24 — paragraph 2 — introductory part

| Text proposed by the Commission | Amendment |
| --- | --- |
| 2.   In order to ensure the efficient and targeted use of
  European
  funds, the Commission shall be empowered to adopt delegated acts in accordance with Article 227 concerning: | 2.   In order to ensure the efficient and targeted use of
  Union
  funds,
  to ensure their fair distribution between the Member States and to limit the administrative workload for schools taking part in the scheme and for Member States,
  the Commission shall be empowered to adopt delegated acts in accordance with Article 227 concerning: |

Text proposed by the Commission

Amendment

2.   In order to ensure the efficient and targeted use of
  European
  funds, the Commission shall be empowered to adopt delegated acts in accordance with Article 227 concerning:

2.   In order to ensure the efficient and targeted use of
  Union
  funds,
  to ensure their fair distribution between the Member States and to limit the administrative workload for schools taking part in the scheme and for Member States,
  the Commission shall be empowered to adopt delegated acts in accordance with Article 227 concerning:

Amendment 40

Proposal for a regulation

Article 1 — paragraph 1 — point 5

Regulation (EU) No 1308/2013

Article 24 — paragraph 2 — point –a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (-a) | the maximum amount of Union aid per child and per distribution operation, by way of contribution to the cost of the fruit and vegetables, including bananas, and of milk and milk products distributed; |

Text proposed by the Commission

Amendment

(-a)

the maximum amount of Union aid per child and per distribution operation, by way of contribution to the cost of the fruit and vegetables, including bananas, and of milk and milk products distributed;

Justification

Delegated powers moved from Article 23a(1) for the sake of textual consistency. To ensure the sound management of funding for the scheme, it would be better to establish a maximum amount of aid per distribution operation rather than per portion, which would be somewhat difficult to monitor — see amendment to recital 6.

Amendment 41

Proposal for a regulation

Article 1 — paragraph 1 — point 5

Regulation (EU) No 1308/2013

Article 24 — paragraph 2 — point a

| Text proposed by the Commission | Amendment |
| --- | --- |
| a) | the indicative allocation of aid between Member States for fruit and vegetables including bananas
  , and
  milk,
  and where appropriate its revision following the assessment referred to in the second subparagraph
  of Article 23a(2), the minimum amounts of Union aid for each Member State, the method for reallocating the aid allocation between Member States based on aid applications received, and the additional rules concerning how the criteria referred to in the first subparagraph of Article 23a(2)
  shall
  be taken into account for the allocation of the funds, |

Text proposed by the Commission

Amendment

a)

the indicative allocation of aid between Member States for fruit and vegetables including bananas
  , and
  milk,
  and where appropriate its revision following the assessment referred to in the second subparagraph
  of Article 23a(2), the minimum amounts of Union aid for each Member State, the method for reallocating the aid allocation between Member States based on aid applications received, and the additional rules concerning how the criteria referred to in the first subparagraph of Article 23a(2)
  shall
  be taken into account for the allocation of the funds,

| a) | the indicative allocation of aid between Member States for fruit and vegetables including bananas, milk
  and milk products
  ,
  the minimum amount of annual Union aid spent per child as referred to in point (b)
  of Article 23a(2), the minimum amounts of Union aid for each Member State, the method for reallocating the aid allocation between Member States based on aid applications received, and the additional rules concerning how the criteria referred to in the first subparagraph of Article 23a(2)
  are to
  be taken into account for the allocation of the funds; |
| --- | --- |

a)

the indicative allocation of aid between Member States for fruit and vegetables including bananas, milk
  and milk products
  ,
  the minimum amount of annual Union aid spent per child as referred to in point (b)
  of Article 23a(2), the minimum amounts of Union aid for each Member State, the method for reallocating the aid allocation between Member States based on aid applications received, and the additional rules concerning how the criteria referred to in the first subparagraph of Article 23a(2)
  are to
  be taken into account for the allocation of the funds;

Amendment 42

Proposal for a regulation

Article 1 — paragraph 1 — point 5

Regulation (EU) No 1308/2013

Article 24 — paragraph 2 — point b

| Text proposed by the Commission | Amendment |
| --- | --- |
| (b) | the conditions concerning the transfers between the allocations for fruit and vegetables including bananas and milk; |

Text proposed by the Commission

Amendment

(b)

the conditions concerning the transfers between the allocations for fruit and vegetables including bananas and milk;

| (b) | the conditions concerning the transfers between the allocations for fruit and vegetables including bananas
  , milk
   and milk
  products
  ; |
| --- | --- |

(b)

the conditions concerning the transfers between the allocations for fruit and vegetables including bananas
  , milk
   and milk
  products
  ;

Justification

Amendment in line with AGRI CAM 1.

Amendment 43

Proposal for a regulation

Article 1 — paragraph 1 — point 5

Regulation (EU) No 1308/2013

Article 24 — paragraph 2 — point c

| Text proposed by the Commission | Amendment |
| --- | --- |
| (c) | the costs and/or measures that are eligible for Union aid and the possibility of fixing
  minimum amounts and
  maximum amounts for specific costs; |

Text proposed by the Commission

Amendment

(c)

the costs and/or measures that are eligible for Union aid and the possibility of fixing
  minimum amounts and
  maximum amounts for specific costs;

| (c) | the costs and/or measures that are eligible for Union aid and the possibility of fixing maximum amounts for specific costs; |
| --- | --- |

(c)

the costs and/or measures that are eligible for Union aid and the possibility of fixing maximum amounts for specific costs;

Amendment 44

Proposal for a regulation

Article 1 — paragraph 1 — point 5

Regulation (EU) No 1308/2013

Article 24 — paragraph 2 — point c a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (ca) | the introduction of single application procedures for educational establishments seeking to participate and single control procedures; |

Text proposed by the Commission

Amendment

(ca)

the introduction of single application procedures for educational establishments seeking to participate and single control procedures;

Justification

In addition to the technical criteria set out in the implementing act under Article 25(c), it would be useful to establish for each delegated act single application procedures for educational establishments seeking to participate and single control procedures, so as to lighten the administrative burden currently deterring prospective participants, in particular schools wishing to participate in both schemes.

Amendment 45

Proposal for a regulation

Article 1 — paragraph 1 — point 5

Regulation (EU) No 1308/2013

Article 24 — paragraph 3 — introductory part

| Text proposed by the Commission | Amendment |
| --- | --- |
| 3.   In order to promote awareness of the school scheme the Commission shall be empowered to adopt delegated acts in accordance with Article 227, requiring Member States with a school scheme to publicise
  the subsidising role of the Union aid
  . | 3.   In order to promote
  and increase
  awareness of the school scheme
  and to heighten the visibility of Union aid
  , the Commission shall be empowered to adopt delegated acts in accordance with Article 227, requiring Member States with a school scheme to
  clearly
  publicise
  the fact that they are receiving Union support for implementing the scheme, as regards: |
| | (a) | the specific criteria related to the use of posters and other information support; |

Text proposed by the Commission

Amendment

3.   In order to promote awareness of the school scheme the Commission shall be empowered to adopt delegated acts in accordance with Article 227, requiring Member States with a school scheme to publicise
  the subsidising role of the Union aid
  .

3.   In order to promote
  and increase
  awareness of the school scheme
  and to heighten the visibility of Union aid
  , the Commission shall be empowered to adopt delegated acts in accordance with Article 227, requiring Member States with a school scheme to
  clearly
  publicise
  the fact that they are receiving Union support for implementing the scheme, as regards:

(a)

the specific criteria related to the use of posters and other information support;

| (b) | the establishment of specific criteria regarding the presentation, composition, size and design of the common identifier and Union logo
  . |
| --- | --- |

(b)

the establishment of specific criteria regarding the presentation, composition, size and design of the common identifier and Union logo
  .

Justification

AGRI Compromise Amendment 5 — part 2. Delegated powers in line with amendment to Article 23a(8).

Amendment 46

Proposal for a regulation

Article 1 — paragraph 1 — point 5

Regulation (EU) No 1308/2013

Article 25 — point a

| Text proposed by the Commission | Amendment |
| --- | --- |
| (a) | the definitive allocation of aid for fruit and vegetables including bananas and/or milk between participating Member States within the limits set out in Article 23a(1), taking account of the transfers referred to in Article 23a(4); |

Text proposed by the Commission

Amendment

(a)

the definitive allocation of aid for fruit and vegetables including bananas and/or milk between participating Member States within the limits set out in Article 23a(1), taking account of the transfers referred to in Article 23a(4);

| (a) | the definitive allocation of aid for fruit and vegetables including bananas and/or milk
  and milk products
   between participating Member States within the limits set out in Article 23a(1), taking account of the transfers referred to in Article 23a(4); |
| --- | --- |

(a)

the definitive allocation of aid for fruit and vegetables including bananas and/or milk
  and milk products
   between participating Member States within the limits set out in Article 23a(1), taking account of the transfers referred to in Article 23a(4);

Justification

Amendment in line with AGRI Compromise Amendment 1.

Amendment 47

Proposal for a regulation

Article 1 — paragraph 1 — point 5

Regulation (EU) No 1308/2013

Article 25 — point f a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (fa) | methods for dealing with deficiencies occurring in the implementation process, in order to avoid blockages caused by excessively burdensome bureaucracy; |

Text proposed by the Commission

Amendment

(fa)

methods for dealing with deficiencies occurring in the implementation process, in order to avoid blockages caused by excessively burdensome bureaucracy;

Amendment 48

Proposal for a regulation

Article 1 — paragraph 1 — point 7

Regulation (EU) No 1308/2013

Article 217 — subparagraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| Member States may, in addition to Union aid provided for in Article 23, make national payments for supplying the products to children in educational establishments or for the related costs referred to in Article 23(1)
  (c)
  . | Member States may, in addition to
  receiving and applying
  the Union aid provided for in Article 23, make national
  or regional
  payments for
  the purpose of
  supplying the products to children
  , together with accompanying educational measures,
  in educational establishments, or for
  meeting
  the related costs referred to in
  point (c)
  of Article 23(1). |

Text proposed by the Commission

Amendment

Member States may, in addition to Union aid provided for in Article 23, make national payments for supplying the products to children in educational establishments or for the related costs referred to in Article 23(1)
  (c)
  .

Member States may, in addition to
  receiving and applying
  the Union aid provided for in Article 23, make national
  or regional
  payments for
  the purpose of
  supplying the products to children
  , together with accompanying educational measures,
  in educational establishments, or for
  meeting
  the related costs referred to in
  point (c)
  of Article 23(1).

---

II Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Parliament

Tuesday 19 May 2015

| 27.9.2016 | EN | Official Journal of the European Union | C 353/106 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/106

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P8_TA(2015)0191

Request for waiver of the immunity of Viktor Uspaskich

European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Viktor Uspaskich (2014/2203(IMM))

(2016/C 353/16)

The European Parliament,

| — | having regard to the request for waiver of the immunity of Viktor Uspaskich, forwarded on 1 October 2014 by the Prosecutor General of Lithuania and announced in plenary on 12 November 2014, |
| --- | --- |

—

having regard to the request for waiver of the immunity of Viktor Uspaskich, forwarded on 1 October 2014 by the Prosecutor General of Lithuania and announced in plenary on 12 November 2014,

| — | having heard Viktor Uspaskich in accordance with Rule 9(5) of its Rules of Procedure, |
| --- | --- |

—

having heard Viktor Uspaskich in accordance with Rule 9(5) of its Rules of Procedure,

| — | having regard to Articles 8 and 9 of Protocol No 7 on the Privileges and Immunities of the European Union, and Article 6(2) of the Act of 20 September 1976 concerning the election of the members of the European Parliament by direct universal suffrage, |
| --- | --- |

—

having regard to Articles 8 and 9 of Protocol No 7 on the Privileges and Immunities of the European Union, and Article 6(2) of the Act of 20 September 1976 concerning the election of the members of the European Parliament by direct universal suffrage,

| — | having regard to the judgments of the Court of Justice of the European Union of 12 May 1964, 10 July 1986, 15 and 21 October 2008, 19 March 2010, 6 September 2011 and 17 January 2013 (1), |
| --- | --- |

—

having regard to the judgments of the Court of Justice of the European Union of 12 May 1964, 10 July 1986, 15 and 21 October 2008, 19 March 2010, 6 September 2011 and 17 January 2013 (1),

| — | having regard to Article 62 of the Constitution of the Republic of Lithuania, |
| --- | --- |

—

having regard to Article 62 of the Constitution of the Republic of Lithuania,

| — | having regard to Rule 5(2), Rule 6(1) and Rule 9 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 5(2), Rule 6(1) and Rule 9 of its Rules of Procedure,

| — | having regard to the report of the Committee on Legal Affairs (A8-0149/2015), |
| --- | --- |

—

having regard to the report of the Committee on Legal Affairs (A8-0149/2015),

| A. | whereas the Prosecutor General of Lithuania has requested the waiver of the parliamentary immunity of Viktor Uspaskich, Member of the European Parliament, in connection with a pre-trial investigation concerning an alleged criminal offence; |
| --- | --- |

A.

whereas the Prosecutor General of Lithuania has requested the waiver of the parliamentary immunity of Viktor Uspaskich, Member of the European Parliament, in connection with a pre-trial investigation concerning an alleged criminal offence;

| B. | whereas Article 9 of Protocol No 7 on the Privileges and Immunities of the European Union states that Members of the European Parliament shall enjoy, in the territory of their own state, the immunities accorded to members of the parliament of that state; |
| --- | --- |

B.

whereas Article 9 of Protocol No 7 on the Privileges and Immunities of the European Union states that Members of the European Parliament shall enjoy, in the territory of their own state, the immunities accorded to members of the parliament of that state;

| C. | whereas Article 62 of the Constitution of the Republic of Lithuania and Article 22(3) of the Statute of the Seimas state that criminal proceedings may not be instituted against a Member of the Seimas, and that she or he may not be arrested or subjected to any other restrictions of personal freedom without the consent of the Seimas, except in cases of flagrante delicto; |
| --- | --- |

C.

whereas Article 62 of the Constitution of the Republic of Lithuania and Article 22(3) of the Statute of the Seimas state that criminal proceedings may not be instituted against a Member of the Seimas, and that she or he may not be arrested or subjected to any other restrictions of personal freedom without the consent of the Seimas, except in cases of flagrante delicto;

| D. | whereas Viktor Uspaskich is accused of having committed the offence of contempt of court under Article 232 of the Criminal Code of the Republic of Lithuania; |
| --- | --- |

D.

whereas Viktor Uspaskich is accused of having committed the offence of contempt of court under Article 232 of the Criminal Code of the Republic of Lithuania;

| E. | whereas there is no evidence of fumus persecutionis, that is to say a well-founded suspicion that the legal proceedings have been instituted with the intention of causing political damage to the Member; |
| --- | --- |

E.

whereas there is no evidence of fumus persecutionis, that is to say a well-founded suspicion that the legal proceedings have been instituted with the intention of causing political damage to the Member;

| 1. | Decides to waive the immunity of Viktor Uspaskich; |
| --- | --- |

1.

Decides to waive the immunity of Viktor Uspaskich;

| 2. | Instructs its President to forward this decision and the report of its committee responsible immediately to the Prosecutor General of Lithuania and to Viktor Uspaskich. |
| --- | --- |

2.

Instructs its President to forward this decision and the report of its committee responsible immediately to the Prosecutor General of Lithuania and to Viktor Uspaskich.

---

(1)  Judgment of the Court of Justice of 12 May 1964, Wagner v Fohrmann and Krier, 101/63, ECLI:EU:C:1964:28; judgment of the Court of Justice of 10 July 1986, Wybot v Faure and others, 149/85, ECLI:EU:C:1986:310; judgment of the General Court of 15 October 2008, Mote v Parliament, T-345/05, ECLI:EU:T:2008:440; judgment of the Court of Justice of 21 October 2008, Marra v De Gregorio and Clemente, C-200/07 and C-201/07, ECLI:EU:C:2008:579; judgment of the General Court of 19 March 2010, Gollnisch v Parliament, T-42/06, ECLI:EU:T:2010:102; judgment of the Court of Justice of 6 September 2011, Patriciello, C-163/10, ECLI: EU:C:2011:543; judgment of the General Court of 17 January 2013, Gollnisch v Parliament, T-346/11 and T-347/11, ECLI:EU:T:2013:23.

---

| 27.9.2016 | EN | Official Journal of the European Union | C 353/108 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/108

---

P8_TA(2015)0192

Request for waiver of the immunity of Jérôme Lavrilleux

European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Jérôme Lavrilleux (2015/2014(IMM))

(2016/C 353/17)

The European Parliament,

| — | having regard to the request for waiver of the immunity of Jérôme Lavrilleux, forwarded on 23 December 2014 by the French Minister of Justice at the request of the Chief Prosecutor at the Paris Court of Appeal, and announced in plenary on 15 January 2015, |
| --- | --- |

—

having regard to the request for waiver of the immunity of Jérôme Lavrilleux, forwarded on 23 December 2014 by the French Minister of Justice at the request of the Chief Prosecutor at the Paris Court of Appeal, and announced in plenary on 15 January 2015,

| — | having heard Jérôme Lavrilleux in accordance with Rule 9(5) of its Rules of Procedure, |
| --- | --- |

—

having heard Jérôme Lavrilleux in accordance with Rule 9(5) of its Rules of Procedure,

| — | having regard to Articles 8 and 9 of Protocol No 7 on the Privileges and Immunities of the European Union, and Article 6(2) of the Act of 20 September 1976 concerning the election of the members of the European Parliament by direct universal suffrage, |
| --- | --- |

—

having regard to Articles 8 and 9 of Protocol No 7 on the Privileges and Immunities of the European Union, and Article 6(2) of the Act of 20 September 1976 concerning the election of the members of the European Parliament by direct universal suffrage,

| — | having regard to the judgments of the Court of Justice of the European Union of 12 May 1964, 10 July 1986, 15 and 21 October 2008, 19 March 2010, 6 September 2011 and 17 January 2013 (1), |
| --- | --- |

—

having regard to the judgments of the Court of Justice of the European Union of 12 May 1964, 10 July 1986, 15 and 21 October 2008, 19 March 2010, 6 September 2011 and 17 January 2013 (1),

| — | having regard to Article 26 of the Constitution of the French Republic, |
| --- | --- |

—

having regard to Article 26 of the Constitution of the French Republic,

| — | having regard to Rule 5(2), Rule 6(1) and Rule 9 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 5(2), Rule 6(1) and Rule 9 of its Rules of Procedure,

| — | having regard to the report of the Committee on Legal Affairs (A8-0152/2015), |
| --- | --- |

—

having regard to the report of the Committee on Legal Affairs (A8-0152/2015),

| A. | whereas the Chief Prosecutor at the Paris Court of Appeal has requested the waiver of immunity of Jérôme Lavrilleux, Member of the European Parliament, in connection with an ongoing judicial investigation into charges of forgery, use of forged documents, breach of trust, attempted fraud and complicity in and concealment of those offences, illegal financing of an election campaign and concealment of and complicity in that offence; and whereas the French judges would like, in this context, to take a custodial or semi-custodial measure against Jérôme Lavrilleux; |
| --- | --- |

A.

whereas the Chief Prosecutor at the Paris Court of Appeal has requested the waiver of immunity of Jérôme Lavrilleux, Member of the European Parliament, in connection with an ongoing judicial investigation into charges of forgery, use of forged documents, breach of trust, attempted fraud and complicity in and concealment of those offences, illegal financing of an election campaign and concealment of and complicity in that offence; and whereas the French judges would like, in this context, to take a custodial or semi-custodial measure against Jérôme Lavrilleux;

| B. | whereas Article 9 of Protocol No 7 on the Privileges and Immunities of the European Union states that Members of the European Parliament shall enjoy, in the territory of their own state, the immunities accorded to members of the Parliament of that state; |
| --- | --- |

B.

whereas Article 9 of Protocol No 7 on the Privileges and Immunities of the European Union states that Members of the European Parliament shall enjoy, in the territory of their own state, the immunities accorded to members of the Parliament of that state;

| C. | whereas Article 26, paragraphs 2 and 3, of the French Constitution provides that no Member of Parliament shall be arrested for a serious crime or other major offence, nor shall he be subjected to any other custodial or semi-custodial measure, without the authorisation of the Bureau of the House of which he is a member; that such authorisation shall not be required in the case of a serious crime or other major offence committed flagrante delicto or when a conviction has become final; and that the Assembly may request the suspension of detention, of custodial or semi-custodial measures or of proceedings against one of its Members; |
| --- | --- |

C.

whereas Article 26, paragraphs 2 and 3, of the French Constitution provides that no Member of Parliament shall be arrested for a serious crime or other major offence, nor shall he be subjected to any other custodial or semi-custodial measure, without the authorisation of the Bureau of the House of which he is a member; that such authorisation shall not be required in the case of a serious crime or other major offence committed flagrante delicto or when a conviction has become final; and that the Assembly may request the suspension of detention, of custodial or semi-custodial measures or of proceedings against one of its Members;

| D. | whereas Jérôme Lavrilleux is suspected of having taken part in a system of false invoicing for campaign expenditure; |
| --- | --- |

D.

whereas Jérôme Lavrilleux is suspected of having taken part in a system of false invoicing for campaign expenditure;

| E. | whereas the waiver of the immunity of Jérôme Lavrilleux should be subject to the conditions indicated in Rule 9(6) of the Rules of Procedure; |
| --- | --- |

E.

whereas the waiver of the immunity of Jérôme Lavrilleux should be subject to the conditions indicated in Rule 9(6) of the Rules of Procedure;

| F. | whereas the alleged charges are not related to the position of Jérôme Lavrilleux as a Member of the European Parliament and arise from his former position as a deputy campaign director in the last presidential election in France; |
| --- | --- |

F.

whereas the alleged charges are not related to the position of Jérôme Lavrilleux as a Member of the European Parliament and arise from his former position as a deputy campaign director in the last presidential election in France;

| G. | whereas the prosecution does not concern opinions expressed or votes cast by Jérôme Lavrilleux as a Member of the European Parliament in the performance of his duties within the meaning of Article 8 of Protocol No 7 on the Privileges and Immunities of the European Union; |
| --- | --- |

G.

whereas the prosecution does not concern opinions expressed or votes cast by Jérôme Lavrilleux as a Member of the European Parliament in the performance of his duties within the meaning of Article 8 of Protocol No 7 on the Privileges and Immunities of the European Union;

| H. | whereas Parliament has found no evidence of fumus persecutionis, that is to say, a sufficiently serious and precise presumption that the proceedings were initiated with the intention of causing political damage to the Member; |
| --- | --- |

H.

whereas Parliament has found no evidence of fumus persecutionis, that is to say, a sufficiently serious and precise presumption that the proceedings were initiated with the intention of causing political damage to the Member;

| 1. | Decides to waive the immunity of Jérôme Lavrilleux; |
| --- | --- |

1.

Decides to waive the immunity of Jérôme Lavrilleux;

| 2. | Instructs its President to forward this decision and the report of its committee responsible immediately to the competent authority of the French Republic and to Jérôme Lavrilleux. |
| --- | --- |

2.

Instructs its President to forward this decision and the report of its committee responsible immediately to the competent authority of the French Republic and to Jérôme Lavrilleux.

---

(1)  Judgment of the Court of Justice of 12 May 1964, Wagner v Fohrmann and Krier, 101/63, ECLI:EU:C:1964:28; judgment of the Court of Justice of 10 July 1986, Wybot v Faure and others, 149/85, ECLI:EU:C:1986:310; judgment of the General Court of 15 October 2008, Mote v Parliament, T-345/05, ECLI:EU:T:2008:440; judgment of the Court of Justice of 21 October 2008, Marra v De Gregorio and Clemente, C-200/07 and C-201/07, ECLI:EU:C:2008:579; judgment of the General Court of 19 March 2010, Gollnisch v Parliament, T-42/06, ECLI:EU:T:2010:102; judgment of the Court of Justice of 6 September 2011, Patriciello, C-163/10, ECLI: EU:C:2011:543; judgment of the General Court of 17 January 2013, Gollnisch v Parliament, T-346/11 and T-347/11, ECLI:EU:T:2013:23.

---

| 27.9.2016 | EN | Official Journal of the European Union | C 353/110 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/110

---

P8_TA(2015)0193

Request for waiver of the parliamentary immunity of Janusz Korwin-Mikke

European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Janusz Korwin-Mikke (2015/2049(IMM))

(2016/C 353/18)

The European Parliament,

| — | having regard to the request for waiver of the immunity of Janusz Korwin-Mikke, forwarded on 29 December 2014 by the Prosecutor-General of the Republic of Poland in connection with criminal proceedings brought by the District Prosecutor’s Office in Warsaw (Case No V Ds 223/14), and announced in plenary on 28 January 2015, |
| --- | --- |

—

having regard to the request for waiver of the immunity of Janusz Korwin-Mikke, forwarded on 29 December 2014 by the Prosecutor-General of the Republic of Poland in connection with criminal proceedings brought by the District Prosecutor’s Office in Warsaw (Case No V Ds 223/14), and announced in plenary on 28 January 2015,

| — | having heard Mr Korwin-Mikke in accordance with Rule 9(5) of its Rules of Procedure, |
| --- | --- |

—

having heard Mr Korwin-Mikke in accordance with Rule 9(5) of its Rules of Procedure,

| — | having regard to Articles 8 and 9 of Protocol No 7 on the Privileges and Immunities of the European Union, and Article 6(2) of the Act of 20 September 1976 concerning the election of the members of the European Parliament by direct universal suffrage, |
| --- | --- |

—

having regard to Articles 8 and 9 of Protocol No 7 on the Privileges and Immunities of the European Union, and Article 6(2) of the Act of 20 September 1976 concerning the election of the members of the European Parliament by direct universal suffrage,

| — | having regard to the judgments of the Court of Justice of the European Union of 12 May 1964, 10 July 1986, 15 and 21 October 2008, 19 March 2010, 6 September 2011 and 17 January 2013 (1), |
| --- | --- |

—

having regard to the judgments of the Court of Justice of the European Union of 12 May 1964, 10 July 1986, 15 and 21 October 2008, 19 March 2010, 6 September 2011 and 17 January 2013 (1),

| — | having regard to Article 105(2) of the Constitution of the Republic of Poland and Articles 7b(1) and 7c(1) of the Polish Act of 9 May 1996 on the exercise of the mandate of Deputy and Senator, |
| --- | --- |

—

having regard to Article 105(2) of the Constitution of the Republic of Poland and Articles 7b(1) and 7c(1) of the Polish Act of 9 May 1996 on the exercise of the mandate of Deputy and Senator,

| — | having regard to Rule 5(2), Rule 6(1) and Rule 9 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 5(2), Rule 6(1) and Rule 9 of its Rules of Procedure,

| — | having regard to the report of the Committee on Legal Affairs (A8-0150/2015), |
| --- | --- |

—

having regard to the report of the Committee on Legal Affairs (A8-0150/2015),

| A. | whereas the Prosecutor-General of the Republic of Poland has forwarded a request from the District Prosecutor’s Office in Warsaw for authorisation to bring criminal proceedings against a Member of the European Parliament, Janusz Korwin-Mikke, with regard to an offence under Article 222(1) of the Polish Criminal Code; whereas, in particular, the proceedings concern the alleged infringement of the physical integrity of a public official; |
| --- | --- |

A.

whereas the Prosecutor-General of the Republic of Poland has forwarded a request from the District Prosecutor’s Office in Warsaw for authorisation to bring criminal proceedings against a Member of the European Parliament, Janusz Korwin-Mikke, with regard to an offence under Article 222(1) of the Polish Criminal Code; whereas, in particular, the proceedings concern the alleged infringement of the physical integrity of a public official;

| B. | whereas, according to Article 8 of the Protocol on the Privileges and Immunities of the European Union, Members of the European Parliament may not be subject to any form of inquiry, detention or legal proceedings in respect of opinions expressed or votes cast by them in the performance of their duties; |
| --- | --- |

B.

whereas, according to Article 8 of the Protocol on the Privileges and Immunities of the European Union, Members of the European Parliament may not be subject to any form of inquiry, detention or legal proceedings in respect of opinions expressed or votes cast by them in the performance of their duties;

| C. | whereas, according to Article 9 of the Protocol on the Privileges and Immunities of the European Union, Members of the European Parliament must enjoy, in the territory of their own State, the immunities accorded to members of their parliament; |
| --- | --- |

C.

whereas, according to Article 9 of the Protocol on the Privileges and Immunities of the European Union, Members of the European Parliament must enjoy, in the territory of their own State, the immunities accorded to members of their parliament;

| D. | whereas, under Article 105(2) of the Constitution of the Republic of Poland, a Deputy shall not be subject to criminal accountability without the consent of the Sejm; |
| --- | --- |

D.

whereas, under Article 105(2) of the Constitution of the Republic of Poland, a Deputy shall not be subject to criminal accountability without the consent of the Sejm;

| E. | whereas it is for Parliament alone to decide whether immunity is or is not to be waived in a given case; whereas Parliament may reasonably take account of the Member’s position in reaching its decision on whether or not to waive his or her immunity (2); |
| --- | --- |

E.

whereas it is for Parliament alone to decide whether immunity is or is not to be waived in a given case; whereas Parliament may reasonably take account of the Member’s position in reaching its decision on whether or not to waive his or her immunity (2);

| F. | whereas, as also confirmed at his hearing, the alleged offence does not have a direct or obvious connection with Mr Korwin-Mikke’s performance of his duties as a Member of the European Parliament, and nor does it constitute an opinion expressed or a vote cast in the performance of his duties as a Member of the European Parliament within the meaning of Article 8 of Protocol No 7 on the Privileges and Immunities of the European Union; |
| --- | --- |

F.

whereas, as also confirmed at his hearing, the alleged offence does not have a direct or obvious connection with Mr Korwin-Mikke’s performance of his duties as a Member of the European Parliament, and nor does it constitute an opinion expressed or a vote cast in the performance of his duties as a Member of the European Parliament within the meaning of Article 8 of Protocol No 7 on the Privileges and Immunities of the European Union;

| G. | whereas in this case Parliament has found no evidence of fumus persecutionis, that is to say, a sufficiently serious and precise suspicion that the case has been brought with the intention of causing political damage to the Member concerned; |
| --- | --- |

G.

whereas in this case Parliament has found no evidence of fumus persecutionis, that is to say, a sufficiently serious and precise suspicion that the case has been brought with the intention of causing political damage to the Member concerned;

| 1. | Decides to waive the immunity of Janusz Korwin-Mikke; |
| --- | --- |

1.

Decides to waive the immunity of Janusz Korwin-Mikke;

| 2. | Instructs its President to forward this decision and the report of its committee responsible immediately to the competent authority of the Republic of Poland and to Janusz Korwin-Mikke. |
| --- | --- |

2.

Instructs its President to forward this decision and the report of its committee responsible immediately to the competent authority of the Republic of Poland and to Janusz Korwin-Mikke.

---

(1)  Judgment of the Court of Justice of 12 May 1964, Wagner v Fohrmann and Krier, 101/63, ECLI:EU:C:1964:28; judgment of the Court of Justice of 10 July 1986, Wybot v Faure and others, 149/85, ECLI:EU:C:1986:310; judgment of the General Court of 15 October 2008, Mote v Parliament, T-345/05, ECLI:EU:T:2008:440; judgment of the Court of Justice of 21 October 2008, Marra v De Gregorio and Clemente, C-200/07 and C-201/07, ECLI:EU:C:2008:579; judgment of the General Court of 19 March 2010, Gollnisch v Parliament, T-42/06, ECLI:EU:T:2010:102; judgment of the Court of Justice of 6 September 2011, Patriciello, C-163/10, ECLI: EU:C:2011:543; judgment of the General Court of 17 January 2013, Gollnisch v Parliament, T-346/11 and T-347/11, ECLI:EU:T:2013:23.

(2)  Case T-345/05 Mote v Parliament (cited above), paragraph 28.

---

| 27.9.2016 | EN | Official Journal of the European Union | C 353/112 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/112

---

P8_TA(2015)0194

Request for waiver of the immunity of Theodoros Zagorakis

European Parliament decision of 19 May 2015 on the request for waiver of the immunity of Theodoros Zagorakis (II) (2015/2071(IMM))

(2016/C 353/19)

The European Parliament,

| — | having regard to the request for waiver of the immunity of Theodoros Zagorakis, forwarded on 10 March 2015 by the Deputy Public Prosecutor at the Supreme Court of Greece in connection with proceeding No ΑΒΜ Δ2011/5382, Β2012/564, pending before the first-instance court of Thessaloniki and announced in plenary on 25 March 2015, |
| --- | --- |

—

having regard to the request for waiver of the immunity of Theodoros Zagorakis, forwarded on 10 March 2015 by the Deputy Public Prosecutor at the Supreme Court of Greece in connection with proceeding No ΑΒΜ Δ2011/5382, Β2012/564, pending before the first-instance court of Thessaloniki and announced in plenary on 25 March 2015,

| — | having regard to the fact that Mr Zagorakis waived his right to a hearing in accordance with Rule 9(5) of its Rules of Procedure, |
| --- | --- |

—

having regard to the fact that Mr Zagorakis waived his right to a hearing in accordance with Rule 9(5) of its Rules of Procedure,

| — | having regard to Articles 8 and 9 of Protocol No 7 on the Privileges and Immunities of the European Union, and to Article 6(2) of the Act of 20 September 1976 concerning the election of the members of the European Parliament by direct universal suffrage, |
| --- | --- |

—

having regard to Articles 8 and 9 of Protocol No 7 on the Privileges and Immunities of the European Union, and to Article 6(2) of the Act of 20 September 1976 concerning the election of the members of the European Parliament by direct universal suffrage,

| — | having regard to the judgments of the Court of Justice of the European Union of 12 May 1964, 10 July 1986, 15 and 21 October 2008, 19 March 2010, 6 September 2011 and 17 January 2013 (1), |
| --- | --- |

—

having regard to the judgments of the Court of Justice of the European Union of 12 May 1964, 10 July 1986, 15 and 21 October 2008, 19 March 2010, 6 September 2011 and 17 January 2013 (1),

| — | having regard to Article 62 of the Constitution of the Hellenic Republic, |
| --- | --- |

—

having regard to Article 62 of the Constitution of the Hellenic Republic,

| — | having regard to Rule 5(2), Rule 6(1) and Rule 9 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 5(2), Rule 6(1) and Rule 9 of its Rules of Procedure,

| — | having regard to the report of the Committee on Legal Affairs (A8-0151/2015), |
| --- | --- |

—

having regard to the report of the Committee on Legal Affairs (A8-0151/2015),

| A. | whereas the Deputy Public Prosecutor at the Supreme Court of Greece has requested the waiver of the immunity of Theodoros Zagorakis, Member of the European Parliament, in connection with possible legal action concerning an alleged offence; |
| --- | --- |

A.

whereas the Deputy Public Prosecutor at the Supreme Court of Greece has requested the waiver of the immunity of Theodoros Zagorakis, Member of the European Parliament, in connection with possible legal action concerning an alleged offence;

| B. | whereas Article 9 of Protocol No 7 on the Privileges and Immunities of the European Union states that Members of the European Parliament shall enjoy, in the territory of their own state, the immunities accorded to members of the parliament of that state; |
| --- | --- |

B.

whereas Article 9 of Protocol No 7 on the Privileges and Immunities of the European Union states that Members of the European Parliament shall enjoy, in the territory of their own state, the immunities accorded to members of the parliament of that state;

| C. | whereas Article 62 of the Constitution of the Hellenic Republic provides that, during the parliamentary term, members of parliament may not be prosecuted, arrested, imprisoned or otherwise confined without prior leave granted by parliament; |
| --- | --- |

C.

whereas Article 62 of the Constitution of the Hellenic Republic provides that, during the parliamentary term, members of parliament may not be prosecuted, arrested, imprisoned or otherwise confined without prior leave granted by parliament;

| D. | whereas Mr Zagorakis is accused of being responsible for financial irregularities between 2007 and 2012 at the PAOK football club, of which he was president at the time; |
| --- | --- |

D.

whereas Mr Zagorakis is accused of being responsible for financial irregularities between 2007 and 2012 at the PAOK football club, of which he was president at the time;

| E. | whereas the alleged offence clearly has no link with Mr Zagorakis’s post as a Member of the European Parliament, but rather is connected to his position as president of the PAOK football club; |
| --- | --- |

E.

whereas the alleged offence clearly has no link with Mr Zagorakis’s post as a Member of the European Parliament, but rather is connected to his position as president of the PAOK football club;

| F. | whereas the prosecution does not concern opinions expressed or votes cast in the performance of duties as a Member of the European Parliament for the purposes of Article 8 of Protocol No 7 on the Privileges and Immunities of the European Union; |
| --- | --- |

F.

whereas the prosecution does not concern opinions expressed or votes cast in the performance of duties as a Member of the European Parliament for the purposes of Article 8 of Protocol No 7 on the Privileges and Immunities of the European Union;

| G. | whereas there is no reason to suspect that the intention underlying the criminal proceedings is to damage the Member’s political activity (fumus persecutionis), given that the prosecution was initiated a number of years before the Member took up his post; |
| --- | --- |

G.

whereas there is no reason to suspect that the intention underlying the criminal proceedings is to damage the Member’s political activity (fumus persecutionis), given that the prosecution was initiated a number of years before the Member took up his post;

| 1. | Decides to waive the immunity of Theodoros Zagorakis; |
| --- | --- |

1.

Decides to waive the immunity of Theodoros Zagorakis;

| 2. | Instructs its President to immediately forward this decision, and the report of the committee responsible, to the Public Prosecutor’s Office at the Supreme Court of Greece and to Theodoros Zagorakis. |
| --- | --- |

2.

Instructs its President to immediately forward this decision, and the report of the committee responsible, to the Public Prosecutor’s Office at the Supreme Court of Greece and to Theodoros Zagorakis.

---

(1)  Judgment of the Court of Justice of 12 May 1964, Wagner v Fohrmann and Krier, 101/63, ECLI:EU:C:1964:28; judgment of the Court of Justice of 10 July 1986, Wybot v Faure and others, 149/85, ECLI:EU:C:1986:310; judgment of the General Court of 15 October 2008, Mote v Parliament, T-345/05, ECLI:EU:T:2008:440; judgment of the Court of Justice of 21 October 2008, Marra v De Gregorio and Clemente, C-200/07 and C-201/07, ECLI:EU:C:2008:579; judgment of the General Court of 19 March 2010, Gollnisch v Parliament, T-42/06, ECLI:EU:T:2010:102; judgment of the Court of Justice of 6 September 2011, Patriciello, C-163/10, ECLI: EU:C:2011:543; judgment of the General Court of 17 January 2013, Gollnisch v Parliament, T-346/11 and T-347/11, ECLI:EU:T:2013:23.

---

III Preparatory acts

EUROPEAN PARLIAMENT

Tuesday 19 May 2015

| 27.9.2016 | EN | Official Journal of the European Union | C 353/114 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/114

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P8_TA(2015)0189

Safeguard measures provided for in the Agreement with the Swiss Confederation ***I

European Parliament legislative resolution of 19 May 2015 on the proposal for a regulation of the European Parliament and of the Council on the safeguard measures provided for in the Agreement between the European Economic Community and the Swiss Confederation (codified text) (COM(2014)0305 — C8-0009/2014 — 2014/0158(COD))

(Ordinary legislative procedure — codification)

(2016/C 353/20)

The European Parliament,

| — | having regard to the Commission proposal to the European Parliament and the Council (COM(2014)0305), |
| --- | --- |

—

having regard to the Commission proposal to the European Parliament and the Council (COM(2014)0305),

| — | having regard to Article 294(2) and Article 207(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0009/2014), |
| --- | --- |

—

having regard to Article 294(2) and Article 207(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0009/2014),

| — | 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 Interinstitutional Agreement of 20 December 1994 — Accelerated working method for official codification of legislative texts (1), |
| --- | --- |

—

having regard to the Interinstitutional Agreement of 20 December 1994 — Accelerated working method for official codification of legislative texts (1),

| — | having regard to Rules 103 and 59 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rules 103 and 59 of its Rules of Procedure,

| — | having regard to the report of the Committee on Legal Affairs (A8-0145/2015), |
| --- | --- |

—

having regard to the report of the Committee on Legal Affairs (A8-0145/2015),

| A. | whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the proposal in question contains a straightforward codification of the existing texts without any change in their substance; |
| --- | --- |

A.

whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the proposal in question contains a straightforward codification of the existing texts without any change in their substance;

| 1. | Adopts its position at first reading hereinafter set out; |
| --- | --- |

1.

Adopts its position at first reading hereinafter set out;

| 2. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

2.

Instructs its President to forward its position to the Council, the Commission and the national parliaments.

---

(1)  OJ C 102, 4.4.1996, p. 2.

---

P8_TC1-COD(2014)0158

Position of the European Parliament adopted at first reading on 19 May 2015 with a view to the adoption of Regulation (EU) 2015/... of the European Parliament and of the Council on the safeguard measures provided for in the Agreement between the European Economic Community and the Swiss Confederation (codification)

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2015/1145.)

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| 27.9.2016 | EN | Official Journal of the European Union | C 353/115 |
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27.9.2016

EN

Official Journal of the European Union

C 353/115

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P8_TA(2015)0190

European Convention on the legal protection of services based on, or consisting of, conditional access ***

European Parliament legislative resolution of 19 May 2015 on the draft Council decision on the conclusion, on behalf of the European Union, of the European Convention on the legal protection of services based on, or consisting of, conditional access (07597/1/2014 — C8-0286/2014 — 2010/0361(NLE))

(Consent)

(2016/C 353/21)

The European Parliament,

| — | having regard to the draft Council decision (07597/1/2014), |
| --- | --- |

—

having regard to the draft Council decision (07597/1/2014),

| — | having regard to Directive 98/84/EC of the European Parliament and of the Council of 20 November 1998 on the legal protection of services based on, or consisting of, conditional access (1), |
| --- | --- |

—

having regard to Directive 98/84/EC of the European Parliament and of the Council of 20 November 1998 on the legal protection of services based on, or consisting of, conditional access (1),

| — | having regard to the European Convention on the legal protection of services based on, or consisting of, conditional access of 24 January 2001 (2), |
| --- | --- |

—

having regard to the European Convention on the legal protection of services based on, or consisting of, conditional access of 24 January 2001 (2),

| — | having regard to Council Decision 2014/243/EU of 14 April 2014 on the signing, on behalf of the European Union, of the European Convention on the legal protection of services based on, or consisting of, conditional access (3), |
| --- | --- |

—

having regard to Council Decision 2014/243/EU of 14 April 2014 on the signing, on behalf of the European Union, of the European Convention on the legal protection of services based on, or consisting of, conditional access (3),

| — | having regard to the request for consent submitted by the Council in accordance with Article 207(4), first subparagraph, and Article 218(6), second subparagraph, point (a) (v), of the Treaty on the Functioning of the European Union (C8-0286/2014), |
| --- | --- |

—

having regard to the request for consent submitted by the Council in accordance with Article 207(4), first subparagraph, and Article 218(6), second subparagraph, point (a) (v), of the Treaty on the Functioning of the European Union (C8-0286/2014),

| — | having regard to the judgment of the Court of Justice of 22 October 2013 (4), |
| --- | --- |

—

having regard to the judgment of the Court of Justice of 22 October 2013 (4),

| — | having regard to Rule 99(1), first and third subparagraphs, Rule 99(2), and Rule 108(7) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 99(1), first and third subparagraphs, Rule 99(2), and Rule 108(7) of its Rules of Procedure,

| — | having regard to the recommendation of the Committee on Legal Affairs (A8-0071/2015), |
| --- | --- |

—

having regard to the recommendation of the Committee on Legal Affairs (A8-0071/2015),

| 1. | Gives its consent to conclusion of the Convention; |
| --- | --- |

1.

Gives its consent to conclusion of the Convention;

| 2. | Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and the Council of Europe. |
| --- | --- |

2.

Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and the Council of Europe.

---

(1)  OJ L 320, 28.11.1998, p. 54.

(2)  OJ L 336, 20.12.2011, p. 2.

(3)  OJ L 128, 30.4.2014, p. 61.

(4)  Judgment of the Court of Justice of 22 October 2013, Commission v Council, C-137/12, ECLI:EU:C:2013:675.

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| 27.9.2016 | EN | Official Journal of the European Union | C 353/116 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/116

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P8_TA(2015)0195

Indices used as benchmarks in financial instruments and financial contracts ***I

Amendments adopted by the European Parliament on 19 May 2015 on the proposal for a regulation of the European Parliament and of the Council on indices used as benchmarks in financial instruments and financial contracts (COM(2013)0641 — C7-0301/2013 — 2013/0314(COD)) (1)

(Ordinary legislative procedure: first reading)

(2016/C 353/22)

[Amendment No 1]

AMENDMENTS BY THE EUROPEAN PARLIAMENT (*)

to the Commission proposal

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on indices used as benchmarks in financial instruments and financial contracts

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (2),

Having regard to the opinion of the European Central Bank (3),

Acting in accordance with the ordinary legislative procedure,

Whereas:

| (1) | The pricing of many financial instruments and financial contracts depends on the accuracy and integrity of benchmarks.
  Serious

  cases of manipulation of interest rate benchmarks such as LIBOR, EURIBOR,
  as well as foreign exchange benchmarks, causing considerable losses to consumers and investors and further shattering the confidence of citizens in the financial sector,
  as well as allegations that energy, oil and foreign exchange benchmarks have been manipulated,
  demonstrate
  that benchmarks
  can be
  subject to conflicts of interest
  and have discretionary
  and weak governance
  regimes that are
  vulnerable to manipulation. Failures in, or doubts about, the accuracy and integrity of indices used as benchmarks may undermine market confidence, cause losses to consumers and investors and distort the real economy. It is therefore necessary to ensure the accuracy, robustness and integrity of benchmarks and the benchmark setting process. |
| --- | --- |

(1)

The pricing of many financial instruments and financial contracts depends on the accuracy and integrity of benchmarks.
  Serious

  cases of manipulation of interest rate benchmarks such as LIBOR, EURIBOR,
  as well as foreign exchange benchmarks, causing considerable losses to consumers and investors and further shattering the confidence of citizens in the financial sector,
  as well as allegations that energy, oil and foreign exchange benchmarks have been manipulated,
  demonstrate
  that benchmarks
  can be
  subject to conflicts of interest
  and have discretionary
  and weak governance
  regimes that are
  vulnerable to manipulation. Failures in, or doubts about, the accuracy and integrity of indices used as benchmarks may undermine market confidence, cause losses to consumers and investors and distort the real economy. It is therefore necessary to ensure the accuracy, robustness and integrity of benchmarks and the benchmark setting process.

| (2) | Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (4) contains certain requirements with respect to the reliability of benchmarks used to price a listed financial instrument. Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading (5) contains certain requirements on benchmarks used by issuers. Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (6) contains certain requirements on the use of benchmarks by UCITS investment funds. Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity (7) contains certain provisions which prohibit the manipulation of benchmarks that are used for wholesale energy products. However these legislative acts only cover certain aspects of certain benchmarks and do not address all the vulnerabilities in the process of producing all benchmarks. |
| --- | --- |

(2)

Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (4) contains certain requirements with respect to the reliability of benchmarks used to price a listed financial instrument. Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading (5) contains certain requirements on benchmarks used by issuers. Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (6) contains certain requirements on the use of benchmarks by UCITS investment funds. Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity (7) contains certain provisions which prohibit the manipulation of benchmarks that are used for wholesale energy products. However these legislative acts only cover certain aspects of certain benchmarks and do not address all the vulnerabilities in the process of producing all benchmarks.

| (3) | Benchmarks are vital in pricing cross-border transactions and thereby facilitating the effective functioning of the internal market in a wide variety of financial instruments and services. Many benchmarks used as reference rates in financial contracts, in particular mortgages, are produced in one Member State but used by credit institutions and consumers in other Member States. In addition, these credit institutions often hedge their risks or obtain the funding for granting these financial contracts in the cross border interbank market. Only two Member States have adopted national legislation on benchmarks, but their respective legal frameworks on benchmarks already show divergences regarding aspects such as the scope of application. In addition, the International Organisation Securities Commissions (IOSCO) ▌ agreed principles on benchmarks
  in 2013
  and, since
  those
  principles provide a certain flexibility as to their exact scope and means of ▌ implementation ▌, Member States are likely to adopt legislation at national level which would implement such principles divergently. |
| --- | --- |

(3)

Benchmarks are vital in pricing cross-border transactions and thereby facilitating the effective functioning of the internal market in a wide variety of financial instruments and services. Many benchmarks used as reference rates in financial contracts, in particular mortgages, are produced in one Member State but used by credit institutions and consumers in other Member States. In addition, these credit institutions often hedge their risks or obtain the funding for granting these financial contracts in the cross border interbank market. Only two Member States have adopted national legislation on benchmarks, but their respective legal frameworks on benchmarks already show divergences regarding aspects such as the scope of application. In addition, the International Organisation Securities Commissions (IOSCO) ▌ agreed principles on benchmarks
  in 2013
  and, since
  those
  principles provide a certain flexibility as to their exact scope and means of ▌ implementation ▌, Member States are likely to adopt legislation at national level which would implement such principles divergently.

| (3a) | The use of financial benchmarks is not limited to the issuance and creation of financial instruments and contracts. The financial industry also relies on benchmarks for the assessment of the performance of an investment fund for the purpose of return tracking, of determining the asset allocation of a portfolio, or of computing the performance fees. The setting and review of the weights to be assigned to various indices within a combination of indices for the purpose of determining the pay-out or the value of a financial instrument or a financial contract, or measuring the performance of an investment fund, also amounts to use, as such an activity does not involve any discretion as opposed to the activity of the provision of benchmarks. The holding of financial instruments referencing a particular benchmark should not to be considered to be use of the benchmark. |
| --- | --- |

(3a)

The use of financial benchmarks is not limited to the issuance and creation of financial instruments and contracts. The financial industry also relies on benchmarks for the assessment of the performance of an investment fund for the purpose of return tracking, of determining the asset allocation of a portfolio, or of computing the performance fees. The setting and review of the weights to be assigned to various indices within a combination of indices for the purpose of determining the pay-out or the value of a financial instrument or a financial contract, or measuring the performance of an investment fund, also amounts to use, as such an activity does not involve any discretion as opposed to the activity of the provision of benchmarks. The holding of financial instruments referencing a particular benchmark should not to be considered to be use of the benchmark.

| (4) | These divergent approaches would result in fragmentation of the internal market since administrators and users of benchmarks would be subject to different rules in different Member States
  . Thus,
  benchmarks produced in
  one
  Member State could be prevented from being used in other Member States. In the absence of a harmonised framework to ensure the accuracy and integrity of benchmarks used in financial instruments and financial contracts in the Union it is therefore likely that differences in Member States legislation will create obstacles to the smooth functioning of the internal market for the provision of benchmarks. |
| --- | --- |

(4)

These divergent approaches would result in fragmentation of the internal market since administrators and users of benchmarks would be subject to different rules in different Member States
  . Thus,
  benchmarks produced in
  one
  Member State could be prevented from being used in other Member States. In the absence of a harmonised framework to ensure the accuracy and integrity of benchmarks used in financial instruments and financial contracts in the Union it is therefore likely that differences in Member States legislation will create obstacles to the smooth functioning of the internal market for the provision of benchmarks.

| (5) | EU consumer protection rules do not cover the particular issue of the suitability of benchmarks in financial contracts. As a result of consumer complaints and litigation relating to the use of unsuitable benchmarks in several Member States, it is likely that divergent measures, inspired by legitimate concerns of consumer protection, would be adopted at national level, which could result in fragmentation of the internal market due to the divergent conditions of competition attached to different levels of consumer protection. |
| --- | --- |

(5)

EU consumer protection rules do not cover the particular issue of the suitability of benchmarks in financial contracts. As a result of consumer complaints and litigation relating to the use of unsuitable benchmarks in several Member States, it is likely that divergent measures, inspired by legitimate concerns of consumer protection, would be adopted at national level, which could result in fragmentation of the internal market due to the divergent conditions of competition attached to different levels of consumer protection.

| (6) | Therefore to ensure the proper functioning of the internal market and improve the conditions of its functioning, in particular with regard to financial markets, and to ensure a high level of consumer and investor protection, it is therefore appropriate to lay down a regulatory framework for benchmarks at Union level. |
| --- | --- |

(6)

Therefore to ensure the proper functioning of the internal market and improve the conditions of its functioning, in particular with regard to financial markets, and to ensure a high level of consumer and investor protection, it is therefore appropriate to lay down a regulatory framework for benchmarks at Union level.

| (7) | It is appropriate and necessary for those rules to take the legislative form of a Regulation in order to ensure that provisions directly imposing obligations on persons involved in benchmark production, contribution and use are applied in a uniform manner throughout the Union. Since a legal framework for the provision of benchmarks necessarily involves measures specifying precise requirements on all different aspects inherent to the provision of benchmarks, even small divergences on the approach taken regarding one of these aspects could lead to significant impediments in the cross border provision of benchmarks. Therefore, the use of a Regulation, which is directly applicable without requiring national legislation, should reduce the possibility of divergent measures being taken at national level, and should ensure a consistent approach, greater legal certainty and prevent the appearance of significant impediments in the cross-border provision of benchmarks. |
| --- | --- |

(7)

It is appropriate and necessary for those rules to take the legislative form of a Regulation in order to ensure that provisions directly imposing obligations on persons involved in benchmark production, contribution and use are applied in a uniform manner throughout the Union. Since a legal framework for the provision of benchmarks necessarily involves measures specifying precise requirements on all different aspects inherent to the provision of benchmarks, even small divergences on the approach taken regarding one of these aspects could lead to significant impediments in the cross border provision of benchmarks. Therefore, the use of a Regulation, which is directly applicable without requiring national legislation, should reduce the possibility of divergent measures being taken at national level, and should ensure a consistent approach, greater legal certainty and prevent the appearance of significant impediments in the cross-border provision of benchmarks.

| (8) | The scope of this Regulation should be as broad as necessary to create a preventive regulatory framework. The production of benchmarks involves discretion in their determination and is inherently subject to certain types of conflicts of interest, which implies the existence of opportunities and incentives to manipulate those benchmarks. These risk factors are common to all benchmarks, and all of them should be made subject to adequate governance and control requirements.
  The degree of risk, however, varies, and the approach adopted in each case should therefore be tailored to the particular circumstances.
  Since the vulnerability and importance of a benchmark varies over time, restricting the scope by reference to currently important or vulnerable indices would not address the risks that any benchmark may pose in the future. In particular, benchmarks that are currently not widely used may be so used in the future, so that, in their regard, even a minor manipulation may have significant impact. |
| --- | --- |

(8)

The scope of this Regulation should be as broad as necessary to create a preventive regulatory framework. The production of benchmarks involves discretion in their determination and is inherently subject to certain types of conflicts of interest, which implies the existence of opportunities and incentives to manipulate those benchmarks. These risk factors are common to all benchmarks, and all of them should be made subject to adequate governance and control requirements.
  The degree of risk, however, varies, and the approach adopted in each case should therefore be tailored to the particular circumstances.
  Since the vulnerability and importance of a benchmark varies over time, restricting the scope by reference to currently important or vulnerable indices would not address the risks that any benchmark may pose in the future. In particular, benchmarks that are currently not widely used may be so used in the future, so that, in their regard, even a minor manipulation may have significant impact.

| (9) | The critical determinant of the scope of this Regulation should be whether the output value of the benchmark determines the value of a financial instrument
  or
  financial contract▌. Therefore the scope should not be dependent on the nature of the input data. Benchmarks calculated from economic input data, such as share prices and non-economic number or values such as weather parameters should thus be included. The framework should cover those benchmarks subject to these risks, but should also
  acknowledge the existence of the large number of benchmarks provided around the world and the different impact that they have on financial stability and the real economy. This Regulation should also
  provide for a proportionate response to the risks that different benchmarks pose. This Regulation should therefore cover all benchmarks which are used to price financial instruments listed or traded on regulated venues.
  All references to days in this Regulation should mean calendar days. |
| --- | --- |

(9)

The critical determinant of the scope of this Regulation should be whether the output value of the benchmark determines the value of a financial instrument
  or
  financial contract▌. Therefore the scope should not be dependent on the nature of the input data. Benchmarks calculated from economic input data, such as share prices and non-economic number or values such as weather parameters should thus be included. The framework should cover those benchmarks subject to these risks, but should also
  acknowledge the existence of the large number of benchmarks provided around the world and the different impact that they have on financial stability and the real economy. This Regulation should also
  provide for a proportionate response to the risks that different benchmarks pose. This Regulation should therefore cover all benchmarks which are used to price financial instruments listed or traded on regulated venues.
  All references to days in this Regulation should mean calendar days.

| (10) | A large number of consumers are parties to financial contracts, in particular consumer credit agreements secured by mortgages, that reference benchmarks that are subject to the same risks. This Regulation should therefore cover the indices or reference rates referred to in Directive 2014/17/EU of the European Parliament and of the Council (8). |
| --- | --- |

(10)

A large number of consumers are parties to financial contracts, in particular consumer credit agreements secured by mortgages, that reference benchmarks that are subject to the same risks. This Regulation should therefore cover the indices or reference rates referred to in Directive 2014/17/EU of the European Parliament and of the Council (8).

| (11) | An index or combination of existing indices in which no new input data is included and which is used to measure the performance of a fund or a financial product should be considered to be use of a benchmark. |
| --- | --- |

(11)

An index or combination of existing indices in which no new input data is included and which is used to measure the performance of a fund or a financial product should be considered to be use of a benchmark.

| (12) | All benchmark administrators are potentially subject to conflicts of interest, exercise discretion and may have inadequate governance and control systems in place. Further, as administrators control the benchmark process, requiring authorisation and supervision
  or registration
  of administrators is the most effective way of ensuring the integrity of benchmarks. |
| --- | --- |

(12)

All benchmark administrators are potentially subject to conflicts of interest, exercise discretion and may have inadequate governance and control systems in place. Further, as administrators control the benchmark process, requiring authorisation and supervision
  or registration
  of administrators is the most effective way of ensuring the integrity of benchmarks.

| (13) | Contributors are subject to potential conflicts of interest, exercise discretion and so may be the source of manipulation. Contributing to a benchmark is a voluntary activity. If any initiative requires contributors to significantly change their business models, they may cease to contribute. However, for entities already subject to regulation and supervision, requiring good governance and control systems is not expected to lead to substantial costs or disproportionate administrative burden. Therefore this Regulation imposes certain obligation on supervised contributors. |
| --- | --- |

(13)

Contributors are subject to potential conflicts of interest, exercise discretion and so may be the source of manipulation. Contributing to a benchmark is a voluntary activity. If any initiative requires contributors to significantly change their business models, they may cease to contribute. However, for entities already subject to regulation and supervision, requiring good governance and control systems is not expected to lead to substantial costs or disproportionate administrative burden. Therefore this Regulation imposes certain obligation on supervised contributors.

| (14) | An administrator is the natural or legal person that has
  voluntary
  control over the provision of a benchmark, in particular who administers the benchmark, collects and analyses the input data, determines the benchmark and
  either directly
  publishes the benchmark
  or outsources its publication to a third party
  . However, where a person merely publishes or refers to a benchmark as part of his or her journalistic activities but does not have control over the provision of that benchmark, that person should not be subject to the requirements imposed on administrators by this Regulation. |
| --- | --- |

(14)

An administrator is the natural or legal person that has
  voluntary
  control over the provision of a benchmark, in particular who administers the benchmark, collects and analyses the input data, determines the benchmark and
  either directly
  publishes the benchmark
  or outsources its publication to a third party
  . However, where a person merely publishes or refers to a benchmark as part of his or her journalistic activities but does not have control over the provision of that benchmark, that person should not be subject to the requirements imposed on administrators by this Regulation.

| (15) | An index is calculated using a formula or some other methodology on the basis of underlying values. Discretion exists in constructing this formula, performing the calculation or determining the input data. This discretion creates a risk of manipulation and therefore all benchmarks sharing this characteristic should be covered by this Regulation. However where a single price or value is used as a reference to a financial instrument, for example where the price of a single security is the reference price for an option, there is no calculation, input data or discretion. Therefore single price or single value reference prices should not be considered benchmarks for the purposes of this Regulation. Reference prices or settlement prices produced by Central Counterparties (CCPs) should not be considered benchmarks because they are used to determine settlement, margins and risk management and thus do not determine the amount payable under a financial instrument or the value of a financial instrument. |
| --- | --- |

(15)

An index is calculated using a formula or some other methodology on the basis of underlying values. Discretion exists in constructing this formula, performing the calculation or determining the input data. This discretion creates a risk of manipulation and therefore all benchmarks sharing this characteristic should be covered by this Regulation. However where a single price or value is used as a reference to a financial instrument, for example where the price of a single security is the reference price for an option, there is no calculation, input data or discretion. Therefore single price or single value reference prices should not be considered benchmarks for the purposes of this Regulation. Reference prices or settlement prices produced by Central Counterparties (CCPs) should not be considered benchmarks because they are used to determine settlement, margins and risk management and thus do not determine the amount payable under a financial instrument or the value of a financial instrument.

| (16) | The independence of the European Central Bank and of the national central banks of the European System of Central Banks in the performance of their powers, tasks and duties conferred on them by the Treaties, as well as the independence of national central banks inherent in the constitutional structures of the Member State or third country concerned, should be fully respected in the implementation of
  this Regulation. |
| --- | --- |

(16)

The independence of the European Central Bank and of the national central banks of the European System of Central Banks in the performance of their powers, tasks and duties conferred on them by the Treaties, as well as the independence of national central banks inherent in the constitutional structures of the Member State or third country concerned, should be fully respected in the implementation of
  this Regulation.

| (17) | ▌In order to ensure the integrity of benchmarks, benchmark administrators should be required to implement adequate governance arrangements to control these conflicts of interest and to safeguard confidence in the integrity of benchmarks. Even where effectively managed, most administrators are subject to some conflicts of interest and may have to make judgements and decisions which affect a diverse group of stakeholders. It is therefore
  important
  that administrators have an independent function to oversee the implementation and effectiveness of the governance arrangements that provide effective oversight. |
| --- | --- |

(17)

▌In order to ensure the integrity of benchmarks, benchmark administrators should be required to implement adequate governance arrangements to control these conflicts of interest and to safeguard confidence in the integrity of benchmarks. Even where effectively managed, most administrators are subject to some conflicts of interest and may have to make judgements and decisions which affect a diverse group of stakeholders. It is therefore
  important
  that administrators have an independent function to oversee the implementation and effectiveness of the governance arrangements that provide effective oversight.

| (18) | The manipulation or unreliability of benchmarks can cause damage to investors and consumers. Therefore, this Regulation should set out a framework for retention of records by administrators and contributors as well as providing transparency about a benchmark's purpose and input data which facilitates more efficient and fairer resolution of any potential claims in accordance with national or Union law. |
| --- | --- |

(18)

The manipulation or unreliability of benchmarks can cause damage to investors and consumers. Therefore, this Regulation should set out a framework for retention of records by administrators and contributors as well as providing transparency about a benchmark's purpose and input data which facilitates more efficient and fairer resolution of any potential claims in accordance with national or Union law.

| (19) | Auditing and the effective enforcement of this Regulation requires ex post analysis and evidence
  . This Regulation should
  therefore
  set out a framework for
  adequate
  recordkeeping by benchmark administrators
  relating to the calculation of the benchmark for a sufficient period of time. The reality that a benchmark seeks to measure and the environment in which it is measured are likely to change over time. Therefore it is necessary that the process and methodology of the provision of benchmarks are audited or reviewed on a periodic basis to identify shortcomings and possible improvements. Many stakeholders may be impacted by failures in the provision of the benchmark and can help identify these shortcomings.
  This Regulation should
  therefore
  set out a framework for the establishment of
  an independent complaints procedure
  by administrators to enable
  stakeholders ▌ to notify the benchmark administrator of complaints and
  ensure
  that the benchmark administrator objectively evaluates the merits of any complaint. |
| --- | --- |

(19)

Auditing and the effective enforcement of this Regulation requires ex post analysis and evidence
  . This Regulation should
  therefore
  set out a framework for
  adequate
  recordkeeping by benchmark administrators
  relating to the calculation of the benchmark for a sufficient period of time. The reality that a benchmark seeks to measure and the environment in which it is measured are likely to change over time. Therefore it is necessary that the process and methodology of the provision of benchmarks are audited or reviewed on a periodic basis to identify shortcomings and possible improvements. Many stakeholders may be impacted by failures in the provision of the benchmark and can help identify these shortcomings.
  This Regulation should
  therefore
  set out a framework for the establishment of
  an independent complaints procedure
  by administrators to enable
  stakeholders ▌ to notify the benchmark administrator of complaints and
  ensure
  that the benchmark administrator objectively evaluates the merits of any complaint.

| (20) | The provision of benchmarks frequently involves the outsourcing of important functions such as calculating the benchmark, gathering the input data and disseminating the benchmark. In order to ensure the effectiveness of the governance arrangements, it is necessary to ensure that any such outsourcing does not relieve a benchmark administrator of any of its obligations and responsibilities, and is done in such a way that it does not interfere with either the administrators ability to meet these obligations or responsibilities, or the relevant competent authority’s ability to supervise them. |
| --- | --- |

(20)

The provision of benchmarks frequently involves the outsourcing of important functions such as calculating the benchmark, gathering the input data and disseminating the benchmark. In order to ensure the effectiveness of the governance arrangements, it is necessary to ensure that any such outsourcing does not relieve a benchmark administrator of any of its obligations and responsibilities, and is done in such a way that it does not interfere with either the administrators ability to meet these obligations or responsibilities, or the relevant competent authority’s ability to supervise them.

| (21) | The benchmark administrator is the central recipient of the input data and is able to evaluate the integrity and accuracy of this input data on a consistent basis.▌ |
| --- | --- |

(21)

The benchmark administrator is the central recipient of the input data and is able to evaluate the integrity and accuracy of this input data on a consistent basis.▌

| (22) | Employees of the administrator may identify possible breaches of this Regulation or potential vulnerabilities that could lead to manipulation or attempted manipulation. This Regulation should therefore
  put
  in place
  a framework
  to enable employees to alert administrators confidentially of possible breaches of this Regulation. |
| --- | --- |

(22)

Employees of the administrator may identify possible breaches of this Regulation or potential vulnerabilities that could lead to manipulation or attempted manipulation. This Regulation should therefore
  put
  in place
  a framework
  to enable employees to alert administrators confidentially of possible breaches of this Regulation.

| (23) | Any discretion that can be exercised in providing input data creates an opportunity to manipulate a benchmark. Where the input data is transaction based data, there is less discretion and therefore the opportunity to manipulate the data is reduced. As a general rule benchmark administrators should therefore use actual transaction input data where possible but other data may be used in those cases where the transaction data is insufficient to ensure the integrity and accuracy of the benchmark. |
| --- | --- |

(23)

Any discretion that can be exercised in providing input data creates an opportunity to manipulate a benchmark. Where the input data is transaction based data, there is less discretion and therefore the opportunity to manipulate the data is reduced. As a general rule benchmark administrators should therefore use actual transaction input data where possible but other data may be used in those cases where the transaction data is insufficient to ensure the integrity and accuracy of the benchmark.

| (24) | The accuracy and reliability of a benchmark in measuring the economic reality it is intended to track depends on the methodology and input data used. It is therefore necessary to adopt a
  transparent
  methodology that ensures the benchmark’s reliability and accuracy. |
| --- | --- |

(24)

The accuracy and reliability of a benchmark in measuring the economic reality it is intended to track depends on the methodology and input data used. It is therefore necessary to adopt a
  transparent
  methodology that ensures the benchmark’s reliability and accuracy.

| (25) | It may be necessary to change the methodology to ensure the continued accuracy of the benchmark, but any changes in the methodology have an impact on the users and stakeholders in the benchmark. It is therefore necessary to specify the procedures to be followed when changing the benchmark methodology, including the need for consultation, so that users and stakeholders can take the necessary actions in light of these changes or notify the administrator if they have concerns about these changes. |
| --- | --- |

(25)

It may be necessary to change the methodology to ensure the continued accuracy of the benchmark, but any changes in the methodology have an impact on the users and stakeholders in the benchmark. It is therefore necessary to specify the procedures to be followed when changing the benchmark methodology, including the need for consultation, so that users and stakeholders can take the necessary actions in light of these changes or notify the administrator if they have concerns about these changes.

| (26) | The integrity and accuracy of benchmarks depends on the integrity and accuracy of the input data provided by contributors. It is essential that the obligations of the contributors in respect of
  such
  input data are clearly specified, can be relied on and are consistent with the benchmark administrator’s controls and methodology. ▌Therefore
  , where appropriate and possible, and in collaboration with its contributors,
  the benchmark administrator
  should produce
  a code of conduct to specify these requirements and
  the contributors' responsibilities concerning the provision of input data
  . |
| --- | --- |

(26)

The integrity and accuracy of benchmarks depends on the integrity and accuracy of the input data provided by contributors. It is essential that the obligations of the contributors in respect of
  such
  input data are clearly specified, can be relied on and are consistent with the benchmark administrator’s controls and methodology. ▌Therefore
  , where appropriate and possible, and in collaboration with its contributors,
  the benchmark administrator
  should produce
  a code of conduct to specify these requirements and
  the contributors' responsibilities concerning the provision of input data
  .

| (27) | Many benchmarks are determined
  by the application of a formula calculated using
  input data that is provided by regulated venues,
  approved publication arrangements or reporting mechanisms
  , energy exchanges
  or
  emission allowance auctions.
  In those cases, existing
  regulation and supervision
  ensure
  the integrity
  and transparency
  of the input data
  and
  provide for governance requirements and procedures for the notification of
  infringements
  . Therefore
  , provided the underlying input data is in its entirety sourced from venues subject to post-trade transparency requirements, including a third country market considered to be equivalent to a regulated market in the Union,
  these benchmarks
  should not be subject to certain obligations in this Regulation,
  in order to avoid dual regulation and because their supervision ensures the integrity of the input data used. |
| --- | --- |

(27)

Many benchmarks are determined
  by the application of a formula calculated using
  input data that is provided by regulated venues,
  approved publication arrangements or reporting mechanisms
  , energy exchanges
  or
  emission allowance auctions.
  In those cases, existing
  regulation and supervision
  ensure
  the integrity
  and transparency
  of the input data
  and
  provide for governance requirements and procedures for the notification of
  infringements
  . Therefore
  , provided the underlying input data is in its entirety sourced from venues subject to post-trade transparency requirements, including a third country market considered to be equivalent to a regulated market in the Union,
  these benchmarks
  should not be subject to certain obligations in this Regulation,
  in order to avoid dual regulation and because their supervision ensures the integrity of the input data used.

| (28) | Contributors may be subject to conflicts of interest and may exercise discretion in the determination of the input data. Therefore it is necessary that contributors
  , where possible and appropriate, be made
  subject to governance arrangements to ensure that these conflicts are managed and that the input data is accurate, conforms to the administrator’s requirements and can be validated. |
| --- | --- |

(28)

Contributors may be subject to conflicts of interest and may exercise discretion in the determination of the input data. Therefore it is necessary that contributors
  , where possible and appropriate, be made
  subject to governance arrangements to ensure that these conflicts are managed and that the input data is accurate, conforms to the administrator’s requirements and can be validated.

| (29) | Different types of benchmark and different benchmark sectors have different characteristics, vulnerabilities and risks. The provisions of this Regulation should be further specified for particular benchmark sectors and types.
  Commodity
  benchmarks are
  widely used and have sector-specific characteristics
  and so it is necessary to specify how these provisions would apply to these benchmarks in this Regulation.
  In addition, some degree of flexibility should be foreseen in this Regulation in order to allow for a timely update of the differentiated requirements applying to different benchmark sectors in light of ongoing international developments, with particular regard to the work of the International Organisation of Securities Commissions (IOSCO)
  . |
| --- | --- |

(29)

Different types of benchmark and different benchmark sectors have different characteristics, vulnerabilities and risks. The provisions of this Regulation should be further specified for particular benchmark sectors and types.
  Commodity
  benchmarks are
  widely used and have sector-specific characteristics
  and so it is necessary to specify how these provisions would apply to these benchmarks in this Regulation.
  In addition, some degree of flexibility should be foreseen in this Regulation in order to allow for a timely update of the differentiated requirements applying to different benchmark sectors in light of ongoing international developments, with particular regard to the work of the International Organisation of Securities Commissions (IOSCO)
  .

| (29a) | In order for a benchmark to be deemed critical under this Regulation it must be deemed systemic in nature or be used in a systemic manner and be vulnerable to manipulation, in order to ensure regulatory proportionality. |
| --- | --- |

(29a)

In order for a benchmark to be deemed critical under this Regulation it must be deemed systemic in nature or be used in a systemic manner and be vulnerable to manipulation, in order to ensure regulatory proportionality.

| (30) | The failure of certain critical benchmarks may have a significant impact on financial stability, market orderliness or investors and it is therefore necessary that additional requirements apply to ensure the integrity and robustness of those critical benchmarks.
  Those potentially destabilising effects of critical benchmarks can be felt in a single Member State or in more than one. The national competent authorities and ESMA will establish which benchmarks are to be classed as critical. |
| --- | --- |

(30)

The failure of certain critical benchmarks may have a significant impact on financial stability, market orderliness or investors and it is therefore necessary that additional requirements apply to ensure the integrity and robustness of those critical benchmarks.
  Those potentially destabilising effects of critical benchmarks can be felt in a single Member State or in more than one. The national competent authorities and ESMA will establish which benchmarks are to be classed as critical.

| (30a) | Given the strategic importance of critical benchmarks for the good functioning of the internal market, ESMA shall have the power to adopt decisions that are directly applicable to the administrator and where applicable, to contributors to the benchmark, where the national competent authority has not applied this Regulation or has breached Union law and following the procedure laid down in Article 17 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council

   (9)
  . |
| --- | --- |

(30a)

Given the strategic importance of critical benchmarks for the good functioning of the internal market, ESMA shall have the power to adopt decisions that are directly applicable to the administrator and where applicable, to contributors to the benchmark, where the national competent authority has not applied this Regulation or has breached Union law and following the procedure laid down in Article 17 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council

   (9)
  .

| (31) | Contributors ceasing to contribute may undermine the credibility of critical benchmarks
  , as the capability of those benchmarks to measure the underlying market or economic reality would be impaired
  . It is therefore necessary to include a power for the relevant competent authority to require mandatory contributions
  from supervised entities
  to critical benchmarks
  in order to preserve the credibility of the benchmark in question. Mandatory contribution of input data is not intended to impose an obligation on supervised entities to enter into, or commit to entering into, transactions
  . |
| --- | --- |

(31)

Contributors ceasing to contribute may undermine the credibility of critical benchmarks
  , as the capability of those benchmarks to measure the underlying market or economic reality would be impaired
  . It is therefore necessary to include a power for the relevant competent authority to require mandatory contributions
  from supervised entities
  to critical benchmarks
  in order to preserve the credibility of the benchmark in question. Mandatory contribution of input data is not intended to impose an obligation on supervised entities to enter into, or commit to entering into, transactions
  .

| (31a) | Once a benchmark has been classed as critical, its administrator could exploit a monopoly position over the users of that benchmark. With that in mind, the college of competent authorities for that critical benchmark will need to oversee the sale price and the administrator’s costs in order to prevent market abuse. |
| --- | --- |

(31a)

Once a benchmark has been classed as critical, its administrator could exploit a monopoly position over the users of that benchmark. With that in mind, the college of competent authorities for that critical benchmark will need to oversee the sale price and the administrator’s costs in order to prevent market abuse.

| (32) | In order for users of benchmarks to make appropriate choices of, and understand the risks of benchmarks, they need to know what the benchmark measures and their vulnerabilities. Therefore the benchmark administrator should publish a statement specifying these elements▌.
  The administrator should, upon request, make its input data available to the relevant competent authority in the context of an investigation.


  ▌ |
| --- | --- |

(32)

In order for users of benchmarks to make appropriate choices of, and understand the risks of benchmarks, they need to know what the benchmark measures and their vulnerabilities. Therefore the benchmark administrator should publish a statement specifying these elements▌.
  The administrator should, upon request, make its input data available to the relevant competent authority in the context of an investigation.

▌

| (34) | This Regulation should take into account the Principles for financial benchmarks issued by the International Organization of Securities Commissions (IOSCO) (‘IOSCO
  Financial Benchmark
  Principles’) on 17 July 2013
  as well as the Principles for Oil Price Reporting Agencies issued by IOSCO on 5 October 2012 (‘IOSCO PRA Principles’) which serve as a global standard for regulatory requirements for benchmarks
  . |
| --- | --- |

(34)

This Regulation should take into account the Principles for financial benchmarks issued by the International Organization of Securities Commissions (IOSCO) (‘IOSCO
  Financial Benchmark
  Principles’) on 17 July 2013
  as well as the Principles for Oil Price Reporting Agencies issued by IOSCO on 5 October 2012 (‘IOSCO PRA Principles’) which serve as a global standard for regulatory requirements for benchmarks
  .

| (34a) | Physical commodities markets present unique characteristics which must be taken account of in order to avoid undermining the integrity of commodity benchmarks and negatively impacting commodity market transparency, European security of supply, competitiveness and the interests of consumers. Accordingly, certain provisions of this Regulation are not appropriate to apply to commodity benchmarks. Principles developed for commodity benchmarks by IOSCO in collaboration with the International Energy Agency and the International Energy Forum, among others, are specifically designed to apply to all commodity benchmarks and therefore this Regulation provides that certain requirements will not apply to commodity benchmarks. |
| --- | --- |

(34a)

Physical commodities markets present unique characteristics which must be taken account of in order to avoid undermining the integrity of commodity benchmarks and negatively impacting commodity market transparency, European security of supply, competitiveness and the interests of consumers. Accordingly, certain provisions of this Regulation are not appropriate to apply to commodity benchmarks. Principles developed for commodity benchmarks by IOSCO in collaboration with the International Energy Agency and the International Energy Forum, among others, are specifically designed to apply to all commodity benchmarks and therefore this Regulation provides that certain requirements will not apply to commodity benchmarks.

| (34b) | This Regulation also introduces a recognition regime allowing administrators of benchmarks located in a third country to provide their benchmarks in the Union provided they fully comply with the requirements set out in this Regulation or with the provisions in the relevant IOSCO principles. |
| --- | --- |

(34b)

This Regulation also introduces a recognition regime allowing administrators of benchmarks located in a third country to provide their benchmarks in the Union provided they fully comply with the requirements set out in this Regulation or with the provisions in the relevant IOSCO principles.

| (34c) | This Regulation introduces an endorsement regime allowing administrators located in the Union and authorised or registered in accordance with its provisions to endorse benchmarks provided in third countries, under certain conditions. Such an endorsement regime should be introduced for third country administrators that are affiliated or work closely with administrators located in the Union. An administrator that has endorsed benchmarks provided in a third country should be responsible for such endorsed benchmarks and ensure that they fulfil the relevant conditions referred to in this Regulation or that they fully fulfil the requirements of the relevant IOSCO principles. |
| --- | --- |

(34c)

This Regulation introduces an endorsement regime allowing administrators located in the Union and authorised or registered in accordance with its provisions to endorse benchmarks provided in third countries, under certain conditions. Such an endorsement regime should be introduced for third country administrators that are affiliated or work closely with administrators located in the Union. An administrator that has endorsed benchmarks provided in a third country should be responsible for such endorsed benchmarks and ensure that they fulfil the relevant conditions referred to in this Regulation or that they fully fulfil the requirements of the relevant IOSCO principles.

| (35) | The administrator
  of a critical benchmark
  should be authorised and supervised by the competent authority of the Member State where that administrator is located.
  An administrator that only provides benchmarks determined by the application of a formula using input data contributed entirely and directly by regulated venues, approved publication arrangements or reporting mechanisms, energy exchanges or emission allowance auctions and/or an administrator that provides only non-critical benchmarks, should be registered with, and supervised by, the competent authority. The registration of an administrator is not intended to affect supervision by the relevant competent authorities. ESMA should maintain a register of administrators at Union level. |
| --- | --- |

(35)

The administrator
  of a critical benchmark
  should be authorised and supervised by the competent authority of the Member State where that administrator is located.
  An administrator that only provides benchmarks determined by the application of a formula using input data contributed entirely and directly by regulated venues, approved publication arrangements or reporting mechanisms, energy exchanges or emission allowance auctions and/or an administrator that provides only non-critical benchmarks, should be registered with, and supervised by, the competent authority. The registration of an administrator is not intended to affect supervision by the relevant competent authorities. ESMA should maintain a register of administrators at Union level.

| (36) | In some circumstances a person may provide an index but be unaware that this index is being used as a reference for a financial instrument. This is particularly the case where the users and benchmark administrator are located in different Member States. It is therefore necessary
  to increase the level of transparency with regard to which benchmark is being used. This can be achieved by improving the content of the prospectuses or key information documents required by the Union law and the content of the notifications and list of financial instruments required by Regulation (EU) No 596/2014 of the European Parliament and of the Council

   (10). |
| --- | --- |

(36)

In some circumstances a person may provide an index but be unaware that this index is being used as a reference for a financial instrument. This is particularly the case where the users and benchmark administrator are located in different Member States. It is therefore necessary
  to increase the level of transparency with regard to which benchmark is being used. This can be achieved by improving the content of the prospectuses or key information documents required by the Union law and the content of the notifications and list of financial instruments required by Regulation (EU) No 596/2014 of the European Parliament and of the Council

   (10).

| (37) | A set of effective tools and powers and resources for the competent authorities of Member States
  and for ESMA
  guarantees supervisory effectiveness. This Regulation therefore should in particular provide for a minimum set of supervisory and investigative powers ▌which
  should be entrusted to
  competent authorities of Member States in accordance with national law
  and to ESMA
  . When exercising their powers under this Regulation competent authorities and ESMA should act objectively and impartially and remain autonomous in their decision making. |
| --- | --- |

(37)

A set of effective tools and powers and resources for the competent authorities of Member States
  and for ESMA
  guarantees supervisory effectiveness. This Regulation therefore should in particular provide for a minimum set of supervisory and investigative powers ▌which
  should be entrusted to
  competent authorities of Member States in accordance with national law
  and to ESMA
  . When exercising their powers under this Regulation competent authorities and ESMA should act objectively and impartially and remain autonomous in their decision making.

| (38) | For the purpose of detecting
  infringements
  of this Regulation, it is necessary for competent authorities
  and ESMA
  to be able to access, in accordance with national law, the premises of natural and legal persons in order to seize documents. The access to such premises is necessary when there is reasonable suspicion that documents and other data related to the subject matter of an inspection or investigation exist and may be relevant to prove
  an infringement
  of this Regulation. Additionally the access to such premises is necessary where: the person to whom a demand for information has already been made fails to comply with it; or where there are reasonable grounds for believing that if a demand were to be made, it would not be complied with, or that the documents or information to which the information requirement relates, would be removed, tampered with or destroyed. If prior authorisation is needed from the judicial authority of the Member State concerned, in accordance with national law, such power for access into premises shall be used after having obtained that prior judicial authorisation. |
| --- | --- |

(38)

For the purpose of detecting
  infringements
  of this Regulation, it is necessary for competent authorities
  and ESMA
  to be able to access, in accordance with national law, the premises of natural and legal persons in order to seize documents. The access to such premises is necessary when there is reasonable suspicion that documents and other data related to the subject matter of an inspection or investigation exist and may be relevant to prove
  an infringement
  of this Regulation. Additionally the access to such premises is necessary where: the person to whom a demand for information has already been made fails to comply with it; or where there are reasonable grounds for believing that if a demand were to be made, it would not be complied with, or that the documents or information to which the information requirement relates, would be removed, tampered with or destroyed. If prior authorisation is needed from the judicial authority of the Member State concerned, in accordance with national law, such power for access into premises shall be used after having obtained that prior judicial authorisation.

| (39) | Existing recordings of telephone conversations and data traffic records from supervised entities may constitute crucial, and sometimes the only evidence to detect and prove the existence of
  infringements
  of this Regulation, notably the compliance with governance and control requirements. Such records and recordings can help to verify the identity of the person responsible for the submission, those responsible for its approval and whether
  organisational
  separation of employees is maintained. Therefore, competent authorities should be able to require existing recordings of telephone conversations, electronic communications and data traffic records held by supervised entities, in those cases where a reasonable suspicion exists that such recordings or records related to the subject-matter of the inspection or investigation may be relevant to prove
  an infringement
  of this Regulation. |
| --- | --- |

(39)

Existing recordings of telephone conversations and data traffic records from supervised entities may constitute crucial, and sometimes the only evidence to detect and prove the existence of
  infringements
  of this Regulation, notably the compliance with governance and control requirements. Such records and recordings can help to verify the identity of the person responsible for the submission, those responsible for its approval and whether
  organisational
  separation of employees is maintained. Therefore, competent authorities should be able to require existing recordings of telephone conversations, electronic communications and data traffic records held by supervised entities, in those cases where a reasonable suspicion exists that such recordings or records related to the subject-matter of the inspection or investigation may be relevant to prove
  an infringement
  of this Regulation.

| (40) | Some of the provisions of this Regulation apply to natural or legal persons in third countries who may use benchmarks or be contributors to benchmarks or may be otherwise involved in the benchmark process. Competent authorities should therefore enter into arrangements with supervisory authorities in third countries. ESMA should coordinate the development of such cooperation arrangements and the exchange between competent authorities of information received from third countries. |
| --- | --- |

(40)

Some of the provisions of this Regulation apply to natural or legal persons in third countries who may use benchmarks or be contributors to benchmarks or may be otherwise involved in the benchmark process. Competent authorities should therefore enter into arrangements with supervisory authorities in third countries. ESMA should coordinate the development of such cooperation arrangements and the exchange between competent authorities of information received from third countries.

| (41) | This Regulation respects the fundamental rights and observes the principles recognised in the Treaty on the Functioning of the European Union (TFEU) and in the Charter of Fundamental Rights of the European Union
  (‘the Charter’)
  , in particular the right to respect for private and family
  life
  , the protection of personal data, the right to freedom of expression and information, the freedom to conduct a business, the right to property, the right to consumer protection, the right to an effective remedy, the right of defence.
  Accordingly
  , this Regulation should be interpreted and applied in accordance with those rights and principles.
  In particular, where this Regulation refers to rules governing the freedom of expression in other media and the rules or codes governing journalist professions, consideration should be given to those freedoms as they are guaranteed in the Union and in the Member States and as recognised under Article 11 of the Charter and under other relevant provisions. This Regulation should not apply to the press, other media and journalists where they merely publish or refer to a benchmark as part of their journalistic activities with no control over the provision of that benchmark. |
| --- | --- |

(41)

This Regulation respects the fundamental rights and observes the principles recognised in the Treaty on the Functioning of the European Union (TFEU) and in the Charter of Fundamental Rights of the European Union
  (‘the Charter’)
  , in particular the right to respect for private and family
  life
  , the protection of personal data, the right to freedom of expression and information, the freedom to conduct a business, the right to property, the right to consumer protection, the right to an effective remedy, the right of defence.
  Accordingly
  , this Regulation should be interpreted and applied in accordance with those rights and principles.
  In particular, where this Regulation refers to rules governing the freedom of expression in other media and the rules or codes governing journalist professions, consideration should be given to those freedoms as they are guaranteed in the Union and in the Member States and as recognised under Article 11 of the Charter and under other relevant provisions. This Regulation should not apply to the press, other media and journalists where they merely publish or refer to a benchmark as part of their journalistic activities with no control over the provision of that benchmark.

| (42) | The rights of defence of the persons concerned should be fully respected. In particular, persons subject to proceedings shall be provided with access to the findings upon which the competent authorities has based the decision and shall be given the right to be heard. |
| --- | --- |

(42)

The rights of defence of the persons concerned should be fully respected. In particular, persons subject to proceedings shall be provided with access to the findings upon which the competent authorities has based the decision and shall be given the right to be heard.

| (43) | Transparency regarding benchmarks is necessary for reasons of financial market stability and investor protection. Any exchange or transmission of information by competent authorities should take place in accordance with the rules on the transfer of personal data as laid down in Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (11). Any exchange or transmission of information by ESMA should take place in accordance with the rules on the transfer of personal data as laid down in Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (12). |
| --- | --- |

(43)

Transparency regarding benchmarks is necessary for reasons of financial market stability and investor protection. Any exchange or transmission of information by competent authorities should take place in accordance with the rules on the transfer of personal data as laid down in Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (11). Any exchange or transmission of information by ESMA should take place in accordance with the rules on the transfer of personal data as laid down in Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (12).

| (44) | Taking into consideration the principles set out in the Commission’s communication on reinforcing sanctioning regimes in the financial services sector and legal acts of the Union adopted as a follow-up to that Communication, Member States should lay down rules on penalties and administrative measures applicable to infringements of the provisions of this Regulation and should ensure that they are implemented. Those penalties and administrative measures should be effective, proportionate and dissuasive. |
| --- | --- |

(44)

Taking into consideration the principles set out in the Commission’s communication on reinforcing sanctioning regimes in the financial services sector and legal acts of the Union adopted as a follow-up to that Communication, Member States should lay down rules on penalties and administrative measures applicable to infringements of the provisions of this Regulation and should ensure that they are implemented. Those penalties and administrative measures should be effective, proportionate and dissuasive.

| (45) | Therefore, a set of administrative measures, sanctions and fines should be provided for to ensure a common approach in Member States and to enhance their deterrent effect. Sanctions applied in specific cases should be determined taking into account where appropriate factors such as
  the presence or absence of intent,
  the repayment of any identified financial benefit, the gravity and duration of the
  infringement
  , any aggravating or mitigating factors, the need for fines to have a deterrent effect and, where appropriate, include a reduction in return for cooperation with the competent authority.▌ |
| --- | --- |

(45)

Therefore, a set of administrative measures, sanctions and fines should be provided for to ensure a common approach in Member States and to enhance their deterrent effect. Sanctions applied in specific cases should be determined taking into account where appropriate factors such as
  the presence or absence of intent,
  the repayment of any identified financial benefit, the gravity and duration of the
  infringement
  , any aggravating or mitigating factors, the need for fines to have a deterrent effect and, where appropriate, include a reduction in return for cooperation with the competent authority.▌

| (46) | In order to ensure that decisions made by competent authorities have a deterrent effect on the public at large, they should normally be published. The publication of decisions is also an important tool for competent authorities to inform market participants of what behaviour is considered constitute a violation of this Regulation and to promote wider good behaviour amongst market participants. If such publication risks causing disproportionate damage to the persons involved, jeopardises the stability of financial markets or an on-going investigation the competent authority should publish the sanctions and measures on an anonymous basis or delay the publication. Competent authorities should have the option not to publish sanctions where anonymous or delayed publication is considered insufficient to ensure that the stability of financial markets are not be jeopardised. Competent authorities are also not required to publish measures which are deemed to be of a minor nature where publication would be disproportionate. |
| --- | --- |

(46)

In order to ensure that decisions made by competent authorities have a deterrent effect on the public at large, they should normally be published. The publication of decisions is also an important tool for competent authorities to inform market participants of what behaviour is considered constitute a violation of this Regulation and to promote wider good behaviour amongst market participants. If such publication risks causing disproportionate damage to the persons involved, jeopardises the stability of financial markets or an on-going investigation the competent authority should publish the sanctions and measures on an anonymous basis or delay the publication. Competent authorities should have the option not to publish sanctions where anonymous or delayed publication is considered insufficient to ensure that the stability of financial markets are not be jeopardised. Competent authorities are also not required to publish measures which are deemed to be of a minor nature where publication would be disproportionate.

| (47) | Critical benchmarks may involve contributors, administrators and users in more than one Member State. Thus, the cessation of the provision of such a benchmark or any events that may significantly undermine its integrity may have an impact in more than one Member State meaning that the supervision of such a benchmark by the competent authority of the Member State in which it is located alone will not be efficient and effective in terms of addressing the risks that the critical benchmark poses. To ensure the effective exchange of supervisory information among competent authorities, coordination of their activities and supervisory measures, colleges of competent authorities,
  with ESMA in the lead,
  should be formed. The activities of the colleges should contribute to the harmonised application of rules under this Regulation and to the convergence of supervisory practices. ESMA's legally binding mediation is a key element of the achievement of coordination, supervisory consistency and convergence of supervisory practices. Benchmarks may reference financial instruments and financial contracts that have a long duration. In certain cases such benchmarks may no longer be permitted to be provided once this Regulation comes into effect because they have characteristics that cannot be adjusted to conform to the requirements of this Regulation. However, prohibiting the continued provision of such a benchmark may result in the termination or frustration of the financial instruments or financial contracts and so harm investors. It is therefore necessary to make provision to allow for the continued provision of such benchmarks for a transitional period. |
| --- | --- |

(47)

Critical benchmarks may involve contributors, administrators and users in more than one Member State. Thus, the cessation of the provision of such a benchmark or any events that may significantly undermine its integrity may have an impact in more than one Member State meaning that the supervision of such a benchmark by the competent authority of the Member State in which it is located alone will not be efficient and effective in terms of addressing the risks that the critical benchmark poses. To ensure the effective exchange of supervisory information among competent authorities, coordination of their activities and supervisory measures, colleges of competent authorities,
  with ESMA in the lead,
  should be formed. The activities of the colleges should contribute to the harmonised application of rules under this Regulation and to the convergence of supervisory practices. ESMA's legally binding mediation is a key element of the achievement of coordination, supervisory consistency and convergence of supervisory practices. Benchmarks may reference financial instruments and financial contracts that have a long duration. In certain cases such benchmarks may no longer be permitted to be provided once this Regulation comes into effect because they have characteristics that cannot be adjusted to conform to the requirements of this Regulation. However, prohibiting the continued provision of such a benchmark may result in the termination or frustration of the financial instruments or financial contracts and so harm investors. It is therefore necessary to make provision to allow for the continued provision of such benchmarks for a transitional period.

| (47a) | In cases where this Regulation captures or potentially captures supervised entities and markets covered by Regulation (EU) No 1227/2011 of the European Parliament and the Council

   (13)

  (REMIT), the Agency for the Cooperation of Energy Regulators (ACER) should be fully consulted by ESMA in order to draw upon ACER's expertise in energy markets and to mitigate any dual regulation. |
| --- | --- |

(47a)

In cases where this Regulation captures or potentially captures supervised entities and markets covered by Regulation (EU) No 1227/2011 of the European Parliament and the Council

   (13)

  (REMIT), the Agency for the Cooperation of Energy Regulators (ACER) should be fully consulted by ESMA in order to draw upon ACER's expertise in energy markets and to mitigate any dual regulation.

| (47b) | Where an existing benchmark does not comply with the requirements of this Regulation but changing the benchmark to bring it into compliance with this Regulation would result in a force majeure event or breach the terms of a financial contract or financial instrument, the relevant competent authority may permit the continued use of the benchmark until such a time as it is possible for the benchmark to cease being used or to be substituted by another benchmark to avoid adverse effects on consumers caused by a disorderly and abrupt cessation of the benchmark. |
| --- | --- |

(47b)

Where an existing benchmark does not comply with the requirements of this Regulation but changing the benchmark to bring it into compliance with this Regulation would result in a force majeure event or breach the terms of a financial contract or financial instrument, the relevant competent authority may permit the continued use of the benchmark until such a time as it is possible for the benchmark to cease being used or to be substituted by another benchmark to avoid adverse effects on consumers caused by a disorderly and abrupt cessation of the benchmark.

| (48) | In order to ensure uniform conditions for the implementation of this Regulation and further specify technical elements of the proposal, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission▌.
  When proposing those acts, the prevailing international standards for administration, contribution and the use of benchmarks should be taken into account, especially the results of the work of IOSCO. Proportionality, especially in the case of non-critical benchmarks and commodity benchmarks, must be respected. |
| --- | --- |

(48)

In order to ensure uniform conditions for the implementation of this Regulation and further specify technical elements of the proposal, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission▌.
  When proposing those acts, the prevailing international standards for administration, contribution and the use of benchmarks should be taken into account, especially the results of the work of IOSCO. Proportionality, especially in the case of non-critical benchmarks and commodity benchmarks, must be respected.

| (49) | The Commission should adopt draft regulatory technical standards developed by ESMA
  concerning governance and control requirements and
  establishing the minimum content of cooperation arrangements with the competent authorities of third countries,
  amongst others,
  by means of delegated acts pursuant to Article 290 TFEU and in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. |
| --- | --- |

(49)

The Commission should adopt draft regulatory technical standards developed by ESMA
  concerning governance and control requirements and
  establishing the minimum content of cooperation arrangements with the competent authorities of third countries,
  amongst others,
  by means of delegated acts pursuant to Article 290 TFEU and in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

| (50) | In order to ensure uniform conditions for the implementation of this Regulation, in regard to certain of its aspects implementing powers should be granted to the Commission. Those aspects concern the ascertainment of the equivalence of the legal framework to which ▌ providers of benchmarks of third countries are subject, as well of the fact that a benchmark is critical in nature. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 (14) laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers. |
| --- | --- |

(50)

In order to ensure uniform conditions for the implementation of this Regulation, in regard to certain of its aspects implementing powers should be granted to the Commission. Those aspects concern the ascertainment of the equivalence of the legal framework to which ▌ providers of benchmarks of third countries are subject, as well of the fact that a benchmark is critical in nature. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 (14) laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers.

| (51) | The Commission should also be empowered to adopt implementing technical standards developed by ESMA establishing procedures and forms for exchange of information between competent authorities and ESMA, by means of implementing acts pursuant to Article 291 TFEU and in accordance with Article 15 of Regulation (EU) No 1095/2010. Since the objectives of this Regulation, namely to lay down a consistent and effective regime to address the vulnerabilities that benchmarks pose cannot be sufficiently achieved by the Member States, given that the overall impact of the problems relating to benchmarks can be fully perceived only in a Union context, and can therefore 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 in order to achieve those objectives, |
| --- | --- |

(51)

The Commission should also be empowered to adopt implementing technical standards developed by ESMA establishing procedures and forms for exchange of information between competent authorities and ESMA, by means of implementing acts pursuant to Article 291 TFEU and in accordance with Article 15 of Regulation (EU) No 1095/2010. Since the objectives of this Regulation, namely to lay down a consistent and effective regime to address the vulnerabilities that benchmarks pose cannot be sufficiently achieved by the Member States, given that the overall impact of the problems relating to benchmarks can be fully perceived only in a Union context, and can therefore 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 in order to achieve those objectives,

HAVE ADOPTED THIS REGULATION:

TITLE 1

SUBJECT MATTER, SCOPE AND DEFINITIONS

Article 1

Subject matter

This Regulation introduces a common framework to ensure the accuracy and integrity of indices used as benchmarks in financial instruments and financial contracts in the Union. The Regulation thereby contributes to the proper functioning of the internal market while achieving a high level of consumer and investor protection.

Article 2

Scope

1.   This Regulation shall apply to the provision of benchmarks, the contribution of input data to a benchmark and ▌the use of a benchmark within the Union.

2.   This Regulation shall not apply to
  the provision of benchmarks by
  :

| (a) | ▌central banks
  , where they are exercising powers or carrying out the tasks and duties conferred on them by the Treaties and by the Statute of the European System of Central Banks (ESCB) and of the ECB, or for which their independence is inherent in the constitutional structures of the Member State or third country concerned; |
| --- | --- |

(a)

▌central banks
  , where they are exercising powers or carrying out the tasks and duties conferred on them by the Treaties and by the Statute of the European System of Central Banks (ESCB) and of the ECB, or for which their independence is inherent in the constitutional structures of the Member State or third country concerned;

| (aa) | public authorities, where they provide, or have control over the provision of, benchmarks for public policy purposes, including measures of employment, economic activity, and inflation; |
| --- | --- |

(aa)

public authorities, where they provide, or have control over the provision of, benchmarks for public policy purposes, including measures of employment, economic activity, and inflation;

| (ab) | central counterparties; |
| --- | --- |

(ab)

central counterparties;

| (ac) | administrators where they provide single prices or single value reference prices; |
| --- | --- |

(ac)

administrators where they provide single prices or single value reference prices;

| (ad) | the press, other media and journalists where they merely publish or refer to a benchmark as part of their journalistic activities with no control over the provision of that benchmark; |
| --- | --- |

(ad)

the press, other media and journalists where they merely publish or refer to a benchmark as part of their journalistic activities with no control over the provision of that benchmark;

| (ae) | credit unions within the meaning of Directive 2013/36/EU of the European Parliament and the Council

   (15). |
| --- | --- |

(ae)

credit unions within the meaning of Directive 2013/36/EU of the European Parliament and the Council

   (15).

▌

2a.
     
  Article 5(1), (2a), (3b), (3c), and (3d), Articles 5a and 5b, Article 5d(b) to (g), Article 7(1)(aa), (b), (ba), (bb), (bc) and (c), Article 7(2a), (3a) and (3b), Article 7a, Article 8(1) and (2), Article 9(1) and (2), Article 11 and Article 17(1) shall not apply to administrators in respect of their non-critical benchmarks.

▌

Article 3

Definitions

1.   For the purposes of this Regulation, the following definitions ▌apply:

| (1) | ‘index’ means any figure:






  (a) | that is published or made available to the public; |
| --- | --- | --- |

(1)

‘index’ means any figure:

(a)

that is published or made available to the public;

| (b) | that is regularly determined, entirely or partially, by the application of a formula or any other method of calculation, or by an assessment;
  and |
| --- | --- |

(b)

that is regularly determined, entirely or partially, by the application of a formula or any other method of calculation, or by an assessment;
  and

| (c) | where this determination is made on the basis of the value of one or more underlying assets, or prices, including estimated prices,
  actual or estimated interest rates,
  or other values
  or surveys
  ; |
| --- | --- |

(c)

where this determination is made on the basis of the value of one or more underlying assets, or prices, including estimated prices,
  actual or estimated interest rates,
  or other values
  or surveys
  ;

| (1a) | ‘
  index provider
  ’
  means a natural or legal person that has control over the provision of an index; |
| --- | --- |

(1a)

‘
  index provider
  ’
  means a natural or legal person that has control over the provision of an index;

| (2) | ‘benchmark’ means any index by reference to which the amount payable under a financial instrument or a financial contract, or the value of a financial instrument is determined▌; |
| --- | --- |

(2)

‘benchmark’ means any index by reference to which the amount payable under a financial instrument or a financial contract, or the value of a financial instrument is determined▌;

| (2a) | ‘family of benchmarks’means a group of benchmarks provided by the same administrator determined from input data of a similar nature which provides specific measures of the same or similar market or economic reality; |
| --- | --- |

(2a)

‘family of benchmarks’means a group of benchmarks provided by the same administrator determined from input data of a similar nature which provides specific measures of the same or similar market or economic reality;

| (3) | ‘provision of a benchmark’ means:






  (a) | administering the arrangements for determining a benchmark; ▌ |
| --- | --- | --- |

(3)

‘provision of a benchmark’ means:

(a)

administering the arrangements for determining a benchmark; ▌

| (b) | collecting, analysing or processing input data for the purpose of determining a benchmark; and |
| --- | --- |

(b)

collecting, analysing or processing input data for the purpose of determining a benchmark; and

| (c) | determining a benchmark through the application of a formula or other method of calculation or by an assessment of input data provided for that purpose; |
| --- | --- |

(c)

determining a benchmark through the application of a formula or other method of calculation or by an assessment of input data provided for that purpose;

| (4) | ‘administrator’ means
  a
  natural or legal person that has control over the provision of a benchmark; |
| --- | --- |

(4)

‘administrator’ means
  a
  natural or legal person that has control over the provision of a benchmark;

| (5) | ‘
  use
  of a benchmark’ means:








  (a) | issuance of
  a financial instrument
  which references an index or a combination of indices; |
| --- | --- | --- |

(5)

‘
  use
  of a benchmark’ means:

(a)

issuance of
  a financial instrument
  which references an index or a combination of indices;

| (b) | determination of the amount payable under a financial instrument or a financial contract by referencing an index or a combination of indices; |
| --- | --- |

(b)

determination of the amount payable under a financial instrument or a financial contract by referencing an index or a combination of indices;

| (c) | being
  party to a financial contract which references
  an index or a combination of indices; |
| --- | --- |

(c)

being
  party to a financial contract which references
  an index or a combination of indices;

| (d) | determination of the performance of an investment fund through an index or a combination of indices for the purpose of tracking the return of such index or combination of indices, of defining the asset allocation of a portfolio or of computing the performance fees; |
| --- | --- |

(d)

determination of the performance of an investment fund through an index or a combination of indices for the purpose of tracking the return of such index or combination of indices, of defining the asset allocation of a portfolio or of computing the performance fees;

| (6) | ‘contribution of input data’ means providing any input data
  not publicly available
  to an administrator, or to another person for the purposes of passing to an administrator, that is required in connection with the determination of
  a
  benchmark, and is provided for that purpose; |
| --- | --- |

(6)

‘contribution of input data’ means providing any input data
  not publicly available
  to an administrator, or to another person for the purposes of passing to an administrator, that is required in connection with the determination of
  a
  benchmark, and is provided for that purpose;

| (7) | ‘contributor’ means a natural or legal person contributing input data
  that is not regulated data
  ; |
| --- | --- |

(7)

‘contributor’ means a natural or legal person contributing input data
  that is not regulated data
  ;

| (8) | ‘supervised contributor’ means a supervised entity that contributes input data to an administrator located in the Union; |
| --- | --- |

(8)

‘supervised contributor’ means a supervised entity that contributes input data to an administrator located in the Union;

| (9) | ‘submitter’ means
  a
  natural person employed by the contributor for the purpose of contributing input data; |
| --- | --- |

(9)

‘submitter’ means
  a
  natural person employed by the contributor for the purpose of contributing input data;

| (9a) | ‘assessor’ means an employee of an administrator of a commodity benchmark, or any other natural person or third party, whose services are placed at the administrator's disposal or under its control and who is responsible for applying a methodology or judgement to input data and other information to reach a conclusive assessment about the price of a certain commodity; |
| --- | --- |

(9a)

‘assessor’ means an employee of an administrator of a commodity benchmark, or any other natural person or third party, whose services are placed at the administrator's disposal or under its control and who is responsible for applying a methodology or judgement to input data and other information to reach a conclusive assessment about the price of a certain commodity;

| (10) | ‘input data’ means the data in respect of the value of one or more underlying assets, or prices, including estimated prices, or other values, used by the administrator to determine the benchmark; |
| --- | --- |

(10)

‘input data’ means the data in respect of the value of one or more underlying assets, or prices, including estimated prices, or other values, used by the administrator to determine the benchmark;

| (11) | ‘regulated data’ means:








  (i) | input data that is contributed
  entirely
  from:








  (a) | a trading venue as defined in point (
  24
  ) of ▌Article
  4(1) of Directive 2014/65/EU but only with reference to data concerning financial instruments; |
| --- | --- | --- | --- |

(11)

‘regulated data’ means:

(i)

input data that is contributed
  entirely
  from:

(a)

a trading venue as defined in point (
  24
  ) of ▌Article
  4(1) of Directive 2014/65/EU but only with reference to data concerning financial instruments;

| (b) | an
  approved publication arrangement as defined in point (
  52
  ) of
  Article 4(1)
  of
  Directive 2014/65/EU
  or
  a consolidated tape provider
  as defined in point (
  53
  ) of ▌Article
  4(1)
  of
  Directive 2014/65/EU,
  in accordance with mandatory
  post-trade transparency
  requirements
  , but only with reference to data of transactions concerning financial instruments that are traded on a trading venue; |
| --- | --- |

(b)

an
  approved publication arrangement as defined in point (
  52
  ) of
  Article 4(1)
  of
  Directive 2014/65/EU
  or
  a consolidated tape provider
  as defined in point (
  53
  ) of ▌Article
  4(1)
  of
  Directive 2014/65/EU,
  in accordance with mandatory
  post-trade transparency
  requirements
  , but only with reference to data of transactions concerning financial instruments that are traded on a trading venue;

| (c) | an approved reporting
  mechanism
  as defined in point
  (54)
  of
  Article 4(1) of Directive 2014/65/EU, but only with reference to data of transactions concerning financial instruments that are traded on a trading venue and that must be disclosed in accordance with mandatory post-trade transparency requirements; |
| --- | --- |

(c)

an approved reporting
  mechanism
  as defined in point
  (54)
  of
  Article 4(1) of Directive 2014/65/EU, but only with reference to data of transactions concerning financial instruments that are traded on a trading venue and that must be disclosed in accordance with mandatory post-trade transparency requirements;

| (d) | an electricity exchange as referred to in point (j) of paragraph 1 of Article 37 of Directive 2009/72/EC
  of the European Parliament and of the Council

   (16); |
| --- | --- |

(d)

an electricity exchange as referred to in point (j) of paragraph 1 of Article 37 of Directive 2009/72/EC
  of the European Parliament and of the Council

   (16);

| (e) | a natural gas exchange as referred to in point (j) of paragraph 1 of Article 41 of Directive 2009/73/EC
  of the European Parliament and of the Council

   (17); |
| --- | --- |

(e)

a natural gas exchange as referred to in point (j) of paragraph 1 of Article 41 of Directive 2009/73/EC
  of the European Parliament and of the Council

   (17);

| (f) | an auction platform referred to in Article 26 or ▌ 30 of
  Commission
  Regulation (EU) No 1031/2010 (18); |
| --- | --- |

(f)

an auction platform referred to in Article 26 or ▌ 30 of
  Commission
  Regulation (EU) No 1031/2010 (18);

| (g) | data provided under Article 8(1) of Regulation (EU) No 1227/2011 and elaborated in Commission Implementing Regulation (EU) No 1348/2014

   (19)

  ; or |
| --- | --- |

(g)

data provided under Article 8(1) of Regulation (EU) No 1227/2011 and elaborated in Commission Implementing Regulation (EU) No 1348/2014

   (19)

  ; or

| (h) | a third country trading venue, platform, exchange, publication arrangement or reporting mechanism equivalent to those specified in points (a) to (g) or any other entity such as a transactional data aggregator or a transactional data collector whose contribution of input data is already subject to appropriate supervision; and |
| --- | --- |

(h)

a third country trading venue, platform, exchange, publication arrangement or reporting mechanism equivalent to those specified in points (a) to (g) or any other entity such as a transactional data aggregator or a transactional data collector whose contribution of input data is already subject to appropriate supervision; and

| (ii) | net asset values of the units of undertakings for collective investment in transferable securities (UCITS) as defined in Article 1(2) of Directive 2009/65/EC

   (20). |
| --- | --- |

(ii)

net asset values of the units of undertakings for collective investment in transferable securities (UCITS) as defined in Article 1(2) of Directive 2009/65/EC

   (20).

| (12) | ‘transaction data’ means observable prices, rates, indices or values representing transactions between unaffiliated counterparties in an active market subject to competitive supply and demand forces; |
| --- | --- |

(12)

‘transaction data’ means observable prices, rates, indices or values representing transactions between unaffiliated counterparties in an active market subject to competitive supply and demand forces;

| (13) | ‘financial instrument’ means any of the instruments listed in Section C of Annex I to Directive
  2014/65/EU
  for which a request for admission to trading on a trading venue
  , as defined in point (24) of Article 4(1) of Directive 2014/65/EU,
  has been made or which are traded on a trading venue
  as defined in point (24) of Article 4(1) of Directive 2014/65/EU
  ; |
| --- | --- |

(13)

‘financial instrument’ means any of the instruments listed in Section C of Annex I to Directive
  2014/65/EU
  for which a request for admission to trading on a trading venue
  , as defined in point (24) of Article 4(1) of Directive 2014/65/EU,
  has been made or which are traded on a trading venue
  as defined in point (24) of Article 4(1) of Directive 2014/65/EU
  ;

| (14) | ‘supervised entity’ means the following:






  (a) | credit institutions as defined in point (1) of Article 3 of Directive 2013/36/EU; |
| --- | --- | --- |

(14)

‘supervised entity’ means the following:

(a)

credit institutions as defined in point (1) of Article 3 of Directive 2013/36/EU;

| (b) | investment firms as defined in point (1) of paragraph 1 of
  Article 4(1) of Directive 2014/65/EU
  ; |
| --- | --- |

(b)

investment firms as defined in point (1) of paragraph 1 of
  Article 4(1) of Directive 2014/65/EU
  ;

| (c) | insurance undertakings as defined in point (1) of Article 13 Directive 2009/138/EC of the European Parliament and of the Council (21); |
| --- | --- |

(c)

insurance undertakings as defined in point (1) of Article 13 Directive 2009/138/EC of the European Parliament and of the Council (21);

| (d) | reinsurance undertakings as defined in point (
  4
  ) of Article 13 Directive 2009/138/EC; |
| --- | --- |

(d)

reinsurance undertakings as defined in point (
  4
  ) of Article 13 Directive 2009/138/EC;

| (e) | UCITS as defined in Article 1(2) of Directive 2009/65/EC (22); |
| --- | --- |

(e)

UCITS as defined in Article 1(2) of Directive 2009/65/EC (22);

| (f) | alternative investment fund managers (AIFMs) as defined in point (b) of Article 4(1) of Directive 2011/61/EU of the European Parliament and of the Council (23); |
| --- | --- |

(f)

alternative investment fund managers (AIFMs) as defined in point (b) of Article 4(1) of Directive 2011/61/EU of the European Parliament and of the Council (23);

| (g) | central counterparties
  or CCPs ,
  as defined in point (1) of Article 2 of Regulation (EU) No 648/2012 of the European Parliament and of the Council (24); |
| --- | --- |

(g)

central counterparties
  or CCPs ,
  as defined in point (1) of Article 2 of Regulation (EU) No 648/2012 of the European Parliament and of the Council (24);

| (h) | trade repositories as defined in point (2) of Article 2 of Regulation (EU) No 648/2012; |
| --- | --- |

(h)

trade repositories as defined in point (2) of Article 2 of Regulation (EU) No 648/2012;

| (i) | administrators; |
| --- | --- |

(i)

administrators;

| (15) | ‘financial contract’ means:






  (a) | any credit agreement as defined in point (c) of Article 3 of Directive 2008/48/EC of the European Parliament and of the Council (25); |
| --- | --- | --- |

(15)

‘financial contract’ means:

(a)

any credit agreement as defined in point (c) of Article 3 of Directive 2008/48/EC of the European Parliament and of the Council (25);

| (b) | any credit agreement as defined in point 3 of Article
  4 of Directive 2014/17/EU of the European Parliament and of the Council

   (26); |
| --- | --- |

(b)

any credit agreement as defined in point 3 of Article
  4 of Directive 2014/17/EU of the European Parliament and of the Council

   (26);

| (16) | ‘investment fund’ means AIFs as defined in point (a) of paragraph 1 of Article 4 of Directive 2011/61/EU, or UCITS falling within the scope of Directive 2009/65/EC; |
| --- | --- |

(16)

‘investment fund’ means AIFs as defined in point (a) of paragraph 1 of Article 4 of Directive 2011/61/EU, or UCITS falling within the scope of Directive 2009/65/EC;

| (17) | ‘management body“means the governing body, comprising the supervisory and the management function, which has ultimate decision-making authority and is empowered to set the entity’s strategy, objectives and overall direction; |
| --- | --- |

(17)

‘management body“means the governing body, comprising the supervisory and the management function, which has ultimate decision-making authority and is empowered to set the entity’s strategy, objectives and overall direction;

| (18) | “consumer” means a natural person who, in financial contracts covered by this Regulation is acting for purposes which are outside his
  or her
  trade, business or profession; |
| --- | --- |

(18)

“consumer” means a natural person who, in financial contracts covered by this Regulation is acting for purposes which are outside his
  or her
  trade, business or profession;

| (19) | “interbank interest rate benchmark” means a benchmark where the underlying asset for the purposes of point (1)(c) of this Article is the rate at which banks may lend to, or borrow from other banks; |
| --- | --- |

(19)

“interbank interest rate benchmark” means a benchmark where the underlying asset for the purposes of point (1)(c) of this Article is the rate at which banks may lend to, or borrow from other banks;

| (19a) | “foreign exchange rate benchmark” means a benchmark the value of which is determined in relation to the price, expressed in one currency, of one or a basket of currencies; |
| --- | --- |

(19a)

“foreign exchange rate benchmark” means a benchmark the value of which is determined in relation to the price, expressed in one currency, of one or a basket of currencies;

| (20) | “commodity benchmark” means a benchmark where the underlying asset for the purposes of point (1)(c) of this Article is a commodity within the meaning of point (2) of Article 2 of Commission Regulation (EC) No 1287/2006 (27)

  , excluding
  emission allowances as
  referred to
  in point (11) of Section C of Annex I of
  Directive 2014/65/EU
  ; |
| --- | --- |

(20)

“commodity benchmark” means a benchmark where the underlying asset for the purposes of point (1)(c) of this Article is a commodity within the meaning of point (2) of Article 2 of Commission Regulation (EC) No 1287/2006 (27)

  , excluding
  emission allowances as
  referred to
  in point (11) of Section C of Annex I of
  Directive 2014/65/EU
  ;

| (20a) | “basis risk” means the risk related to the accuracy of the description by a benchmark of the underlying market or economic reality that the benchmark intends to measure; |
| --- | --- |

(20a)

“basis risk” means the risk related to the accuracy of the description by a benchmark of the underlying market or economic reality that the benchmark intends to measure;

| (21) | “critical benchmark” means:








  (a) | a benchmark
  that is not based on regulated data, the reference value of
  which
  exceeds EUR
  500 billion euro
  as defined in Article 13(1)
  ;
  or |
| --- | --- | --- |

(21)

“critical benchmark” means:

(a)

a benchmark
  that is not based on regulated data, the reference value of
  which
  exceeds EUR
  500 billion euro
  as defined in Article 13(1)
  ;
  or

| (b) | a benchmark, the cessation of which would have a significant adverse impact on financial stability, on the orderly functioning of the markets and on the real economy in one or more Member States; |
| --- | --- |

(b)

a benchmark, the cessation of which would have a significant adverse impact on financial stability, on the orderly functioning of the markets and on the real economy in one or more Member States;

| (21a) | “non-critical benchmark”
  means a benchmark
  which does not meet the criteria for a critical benchmark provided for in Article 13; |
| --- | --- |

(21a)

“non-critical benchmark”
  means a benchmark
  which does not meet the criteria for a critical benchmark provided for in Article 13;

| (22) | “located” means in relation to a legal person, the Member State or third country where that person’s registered office or other official address is situated and in relation to a natural person, the Member State or third country where that person is resident for tax purposes; |
| --- | --- |

(22)

“located” means in relation to a legal person, the Member State or third country where that person’s registered office or other official address is situated and in relation to a natural person, the Member State or third country where that person is resident for tax purposes;

| (22a) | “public authority” means:










  (a) | any government or public administration; |
| --- | --- | --- |

(22a)

“public authority” means:

(a)

any government or public administration;

| (b) | any entity or person either performing public administrative functions under national law or having public responsibilities or functions or providing public services, including measures of inflation, labour and economic activities, under the control of any government or public authority. |
| --- | --- |

(b)

any entity or person either performing public administrative functions under national law or having public responsibilities or functions or providing public services, including measures of inflation, labour and economic activities, under the control of any government or public authority.

2.   The Commission shall be empowered to adopt delegated acts in accordance with Article 37
  in order
  to specify further technical elements of the definitions laid down in paragraph 1, in particular specifying what constitutes making available to the public for the purposes of the definition of an index.
  In those delegated acts, the Commission shall ensure that
  “
  published
  ”
  or
  “
  'made available” to the public
  ”
  is understood as
  “
  made available to the wider public of users or potential users
  ”.

Where applicable, the Commission shall take into account
  market or technological developments and the
  international convergence of supervisory practice in relation to benchmarks.

2a.
     
  The Commission shall adopt implementing acts in order to establish a list of public authorities in the Union as referred to in point (22a) of paragraph 1 of this Article and to review that list. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 38(2).

Article 4

Exclusion of
  index providers
  unaware of the use of benchmarks provided by them ▌

▌This Regulation shall not apply to an
  index provider
  in respect of
  an index
  provided by him
  or her
  where that
  index provider
  is unaware and could not reasonably have been aware that that
  index
  is used for the purposes referred to in point (2) of Article 3(1).

▌

TITLE II

BENCHMARK INTEGRITY AND RELIABILITY

Chapter 1

Governance and Control of Administrators

Article 5

Governance
  and conflict of interest
  requirements

1.   The ▌administrator shall have robust governance arrangements which include a clear organisational structure with well-defined, transparent and consistent roles and responsibilities for all persons involved in the provision of a benchmark.

The administrator shall take all necessary steps to
  identify and to prevent or manage conflicts of interests between itself, including its managers, employees or any other natural person or third party whose services are placed at its disposal or under its control, and the contributors or users and to ensure that, where any discretion or judgement in the benchmark process is required, it is exercised independently and fairly.

▌

2a.
     
  The provision of a benchmark shall be operationally separated from any part of the administrator's business that may create an actual or potential conflict of interest. Where conflicts of interests may arise within the administrator due to its ownership structure, controlling
  interests
  or other activities conducted by any entity owning or controlling the administrator or by an entity that is owned or controlled by the administrator or any of its affiliates, the administrator shall establish an independent oversight function which shall include a balanced representation of a range of stakeholders, where the stakeholders are known, as well as subscribers and contributors. If such conflicts cannot be adequately managed, the administrator shall either cease any activities or relationships that create those conflicts or shall cease producing the benchmark.

▌

3a.
     
  An administrator shall publish or disclose all existing or potential conflicts of interest to users of the benchmark and the relevant competent authority and, where relevant, to contributors, including conflicts of interest arising from the ownership or control of the administrator.

3b.
     
  An administrator shall establish and operate adequate policies and procedures, as well as effective organisational arrangements, for the identification, disclosure, management, mitigation and avoidance of conflicts of interest in order to protect the integrity and independence of benchmark determinations. Such policies and procedures shall be regularly reviewed and updated. The policies and procedures shall take into account and address conflicts of interest, the degree of discretion exercised in the benchmark process and the risks that the benchmark poses, and shall:

| (a) | ensure the confidentiality of information contributed to or produced by the administrator, subject to the disclosure and transparency obligations under this Regulation; and |
| --- | --- |

(a)

ensure the confidentiality of information contributed to or produced by the administrator, subject to the disclosure and transparency obligations under this Regulation; and

| (b) | specifically mitigate conflicts due to the administrator’s ownership or control, or due to other interests in its group or as a result of other persons that may exercise influence or control over the administrator in relation to setting the benchmark. |
| --- | --- |

(b)

specifically mitigate conflicts due to the administrator’s ownership or control, or due to other interests in its group or as a result of other persons that may exercise influence or control over the administrator in relation to setting the benchmark.

3c.
     
  The administrator shall ensure that employees and any other natural persons whose services are placed at its disposal or under its control and who are directly involved in the provision of a benchmark:

| (a) | have the necessary skills, knowledge and experience for the duties assigned to them and are subject to effective management and supervision; |
| --- | --- |

(a)

have the necessary skills, knowledge and experience for the duties assigned to them and are subject to effective management and supervision;

| (b) | are not subject to undue influence or conflicts of interest and that the compensation and performance evaluation of those persons do not create conflicts of interest or otherwise impinge on the integrity of the benchmark process; |
| --- | --- |

(b)

are not subject to undue influence or conflicts of interest and that the compensation and performance evaluation of those persons do not create conflicts of interest or otherwise impinge on the integrity of the benchmark process;

| (c) | do not have any interests or business connections that compromise the administrator’s functions; |
| --- | --- |

(c)

do not have any interests or business connections that compromise the administrator’s functions;

| (d) | are prohibited from contributing to a benchmark determination by way of engaging in bids, offers and trades on a personal basis or on behalf of market participants; and |
| --- | --- |

(d)

are prohibited from contributing to a benchmark determination by way of engaging in bids, offers and trades on a personal basis or on behalf of market participants; and

| (e) | are subject to effective procedures to control the exchange of information with other employees, and are not involved in activities that may create a risk of conflict of interest. |
| --- | --- |

(e)

are subject to effective procedures to control the exchange of information with other employees, and are not involved in activities that may create a risk of conflict of interest.

3d.
     
  The administrator shall establish specific control procedures to ensure the integrity and reliability of the employee or person determining the benchmark, which could include an internal sign-off by management before the dissemination of a benchmark or an appropriate substitution, for example in the case of a benchmark that is updated intra-day or on a real-time basis.

3e.
     
  Any non-material change to the benchmark in respect of provisions covered in this Article shall not be considered to be a breach of any financial contract or financial instrument which references that benchmark. For a critical benchmark, the relevant competent authority shall have the power to deem a change to be material.

Article 5a

Oversight function requirements

1.
     
  The administrator shall establish and maintain a permanent and effective oversight function to ensure oversight of all aspects of the provision of its benchmarks.

2.
     
  An administrator shall develop and maintain robust procedures regarding its oversight function, which shall be made available to the relevant competent authorities.

The main features of the procedures shall include:

| (a) | the terms of reference of the oversight function; |
| --- | --- |

(a)

the terms of reference of the oversight function;

| (b) | criteria to select members of the oversight function; |
| --- | --- |

(b)

criteria to select members of the oversight function;

| (c) | the summary details of membership of any board or committee charged with the oversight function, along with any declarations of conflicts of interest and processes for election, nomination or removal and replacement of committee member. |
| --- | --- |

(c)

the summary details of membership of any board or committee charged with the oversight function, along with any declarations of conflicts of interest and processes for election, nomination or removal and replacement of committee member.

3.
     
  The oversight function shall operate independently and shall include the following responsibilities, which shall be adjusted for the complexity, use and vulnerability of the benchmark:

| (a) | at least annually reviewing the benchmark's definition and methodology; |
| --- | --- |

(a)

at least annually reviewing the benchmark's definition and methodology;

| (b) | overseeing any changes to the benchmark methodology and authorising the administrator to consult on such changes; |
| --- | --- |

(b)

overseeing any changes to the benchmark methodology and authorising the administrator to consult on such changes;

| (c) | overseeing the administrator's control framework, the management and operation of the benchmark, and, where a benchmark makes use of contributors, the code of conduct referred to in Article 9(1); |
| --- | --- |

(c)

overseeing the administrator's control framework, the management and operation of the benchmark, and, where a benchmark makes use of contributors, the code of conduct referred to in Article 9(1);

| (d) | reviewing and approving procedures for cessation of the benchmark, including any consultation about a cessation; |
| --- | --- |

(d)

reviewing and approving procedures for cessation of the benchmark, including any consultation about a cessation;

| (e) | overseeing any third party involved in the benchmark provision, including calculation or dissemination agents; |
| --- | --- |

(e)

overseeing any third party involved in the benchmark provision, including calculation or dissemination agents;

| (f) | assessing internal and external audits or reviews, and monitoring the implementation of remedial actions highlighted in the results of those audits; |
| --- | --- |

(f)

assessing internal and external audits or reviews, and monitoring the implementation of remedial actions highlighted in the results of those audits;

| (g) | where the benchmark makes use of contributors, monitoring the input data and contributors and the actions of the administrator in challenging or validating contributions of input data; |
| --- | --- |

(g)

where the benchmark makes use of contributors, monitoring the input data and contributors and the actions of the administrator in challenging or validating contributions of input data;

| (h) | where the benchmark makes use of contributors, taking effective measures in respect of any breaches of the code of conduct; and |
| --- | --- |

(h)

where the benchmark makes use of contributors, taking effective measures in respect of any breaches of the code of conduct; and

| (i) | where the benchmark makes use of contributors, reporting to the relevant competent authorities any misconduct by contributors or administrators of which the oversight function becomes aware, and any potentially anomalous or suspicious input data. |
| --- | --- |

(i)

where the benchmark makes use of contributors, reporting to the relevant competent authorities any misconduct by contributors or administrators of which the oversight function becomes aware, and any potentially anomalous or suspicious input data.

4.
     
  The oversight function shall be carried out by a separate committee or by another appropriate governance arrangement.

ESMA shall develop draft regulatory technical standards to determine the characteristics that the oversight function shall have in terms of composition as well as of positioning within the organisational structure of the administrator, so as to ensure the integrity of the function and the absence of conflicts of interest.

ESMA shall distinguish for different types of benchmarks and sectors as set out in this Regulation and shall take into consideration the differences in the ownership and control structure of administrators, the nature, scale and complexity of the provision of the benchmark, and the risk and impact of the benchmark, also in light of international convergence of supervisory practice in relation to governance requirements of benchmarks.

ESMA shall submit those draft regulatory technical standards to the Commission by [XXX].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010.

5.
     
  The oversight function may exercise oversight of more than one benchmark provided by an administrator provided that it otherwise complies with the other requirements of Titles I and IV.

6.
     
  Any non-material change to the benchmark in respect of provisions covered in this Article shall not be considered to be a breach of any financial contract or financial instrument which references that benchmark. For a critical benchmark, the relevant competent authority shall have the power to deem a change to be material.

Article 5b

Control framework requirements

1.
     
  The administrator shall have a control framework that ensures that the benchmark is provided and published or made available in accordance with this Regulation.

2.
     
  The control framework shall be proportionate to the level of conflicts of interest identified, the extent of discretion in the benchmark provision and the nature of benchmark input data and shall include:

| (a) | the management of operational risk; |
| --- | --- |

(a)

the management of operational risk;

| (b) | the contingency and recovery procedures that are in place in the event of a disruption to the benchmark provision. |
| --- | --- |

(b)

the contingency and recovery procedures that are in place in the event of a disruption to the benchmark provision.

3.
     
  Where input data is not transaction data, the administrator shall:

| (a) | establish measures to ensure, to the extent possible, that contributors comply with the code of conduct referred to in Article 9(1) and the applicable standards for the input data; |
| --- | --- |

(a)

establish measures to ensure, to the extent possible, that contributors comply with the code of conduct referred to in Article 9(1) and the applicable standards for the input data;

| (b) | establish measures to monitor input data, including monitoring the input data before publication of the benchmark and validating the input data after publication in order to identify errors and anomalies. |
| --- | --- |

(b)

establish measures to monitor input data, including monitoring the input data before publication of the benchmark and validating the input data after publication in order to identify errors and anomalies.

4.
     
  The control framework shall be documented, reviewed and updated as appropriate and made available to the relevant competent authority, and upon request, to the users.

5.
     
  Any non-material change to the benchmark in respect of provisions covered in this Article shall not be considered to be a breach of any financial contract or financial instrument which references that benchmark. For a critical benchmark, the relevant competent authority shall have the power to deem a change to be material.

Article 5c

Accountability Framework Requirements

1.
     
  The administrator shall have an accountability framework covering record keeping, auditing and review, and complaints process that provides evidence of compliance with the requirements of this Regulation.

2.
     
  The administrator shall appoint an independent internal or external function, with the necessary capability to review and report on the administrator's compliance with the benchmark methodology and this Regulation.

3.
     
  For non-critical benchmarks, the administrator shall publish and maintain a compliance statement in which the administrator shall report on its compliance with this Regulation. The compliance statement shall at least cover the requirements laid down in Articles 5(1), (2a), (3b), (3c) and (3d), Articles 5a and 5b, Article 5d(b) to (g), Article 7(1)(aa), (b), (ba), (bb), (bc) and (c), Article 7(2a), (3a) and (3b), Article 7a, Article 8(1) and (2), Article 9(1) and 9(2), Article 11, and Article 17(1).

Where the administrator does not comply with the requirements laid down in Articles 5(1), (2a), (3b), (3c) and (3d), Articles 5a and 5b, Article 5d(b) to (g), Article 7(1)(aa), (b), (ba), (bb), (bc) and (c), Article 7(2a), (3a) and (3b), Article 7a, Article 8(1) and (2), Article 9(1) and (2), Article 11 and Article 17(1), the compliance statement shall clearly state why it is appropriate for that administrator not to comply with those provisions.

4.
     
  The administrator of a non-critical benchmark shall appoint an independent external auditor to review, and report on, the accuracy of the administrator’s compliance statement. Such an audit shall take place at least every two years and whenever material changes to the benchmark occur.

5.
     
  The administrator shall provide the audits under paragraph 4 to the relevant competent authority. The administrator shall provide or publish details of the audits under paragraph 4 to any user of the benchmark upon request. Upon the request of the relevant competent authority, or any user of the benchmark, the administrator shall provide or publish details of the reviews referred to in paragraph 4.

6.
     
  The relevant competent authority may request additional information from the administrator in respect of their non-critical benchmarks in accordance with Article 30 and/or issue a recommendation to the administrator regarding the administrator’s compliance with the provisions covered by the compliance statement until the full satisfaction of the competent authority. The competent authority may publish the recommendation on its website.

Article 5d

Record keeping requirements

1.
     
  The administrator shall keep records of:

| (a) | all input data; |
| --- | --- |

(a)

all input data;

| (b) | any exercise of judgement or discretion by the administrator and, where applicable, by assessors, in the benchmark determination; |
| --- | --- |

(b)

any exercise of judgement or discretion by the administrator and, where applicable, by assessors, in the benchmark determination;

| (c) | records of the disregard of any input data, in particular where it conformed to the requirements of the benchmark methodology, and the rationale for such disregard; |
| --- | --- |

(c)

records of the disregard of any input data, in particular where it conformed to the requirements of the benchmark methodology, and the rationale for such disregard;

| (d) | other changes in or deviations from standard procedures and methodologies, including those made during periods of market stress or disruption; |
| --- | --- |

(d)

other changes in or deviations from standard procedures and methodologies, including those made during periods of market stress or disruption;

| (e) | the identities of the submitters and of the natural persons employed by the administrators for determining the benchmarks; |
| --- | --- |

(e)

the identities of the submitters and of the natural persons employed by the administrators for determining the benchmarks;

| (f) | all documents relating to any complaint; and |
| --- | --- |

(f)

all documents relating to any complaint; and

| (g) | records of relevant communications between any person employed by the administrator and the contributors or submitters in respect of the benchmark. |
| --- | --- |

(g)

records of relevant communications between any person employed by the administrator and the contributors or submitters in respect of the benchmark.

2.
     
  Where the benchmark is based on contributions from contributors, the contributor shall also keep records of any relevant communications, including with other contributors.

3.
     
  The administrator shall keep the records set out in paragraph 1 for at least five years in such a form that it is possible to replicate and fully understand the benchmark calculations and enable an audit or evaluation of the input data, calculations, judgements and discretion. Records of telephone conversation or electronic communications shall be provided to the persons involved in the conversation or communication upon request and shall be kept for a period of three years.

Article 5e

Complaint handling

The administrator shall have in place and publish written procedures for receiving, investigating and retaining records concerning complaints made about an administrator's calculation process. Such a complaint mechanism shall ensure that:

| (a) | an administrator shall have in place a mechanism detailed in a written complaints handling policy, through which its subscribers may submit complaints on whether a specific benchmark calculation is representative of market value, proposed benchmark calculation changes, applications of methodology in relation to a specific benchmark calculation, and other editorial decisions in relation to the benchmark calculation processes; |
| --- | --- |

(a)

an administrator shall have in place a mechanism detailed in a written complaints handling policy, through which its subscribers may submit complaints on whether a specific benchmark calculation is representative of market value, proposed benchmark calculation changes, applications of methodology in relation to a specific benchmark calculation, and other editorial decisions in relation to the benchmark calculation processes;

| (b) | there is a process and target timetable for the handling of complaints; |
| --- | --- |

(b)

there is a process and target timetable for the handling of complaints;

| (c) | formal complaints made against an administrator and its personnel are investigated by that administrator in a timely and fair manner; |
| --- | --- |

(c)

formal complaints made against an administrator and its personnel are investigated by that administrator in a timely and fair manner;

| (d) | the inquiry is conducted independently of any personnel who may be involved in the subject matter of the complaint; |
| --- | --- |

(d)

the inquiry is conducted independently of any personnel who may be involved in the subject matter of the complaint;

| (e) | an administrator shall aim to complete its investigation promptly. |
| --- | --- |

(e)

an administrator shall aim to complete its investigation promptly.

Article 5f

Regulatory technical standards on governance and control requirements

ESMA shall develop draft regulatory technical standards to specify further and calibrate the governance and control requirements under Articles 5(2a), 5(3a-3d), 5a(2), 5a(3), 5b(2), 5b(3), 5c(2), 5c(1) to (3). ESMA shall take account of the following:

| (a) | developments in benchmarks and financial markets in light of international convergence of supervisory practice in relation to governance requirements of benchmarks; |
| --- | --- |

(a)

developments in benchmarks and financial markets in light of international convergence of supervisory practice in relation to governance requirements of benchmarks;

| (b) | specific features of different types of benchmarks and administrators including sectoral features and the types of input data used; |
| --- | --- |

(b)

specific features of different types of benchmarks and administrators including sectoral features and the types of input data used;

| (c) | distinction between critical and non-critical benchmarks; |
| --- | --- |

(c)

distinction between critical and non-critical benchmarks;

| (d) | whether requirements are already partially or fully covered by other relevant regulatory requirements, particularly for benchmarks based on regulated data, and particularly but not limited to requirements under Directive 2014/65/EU or Regulation (EU) No 600/2014of the European Parliament and of the Council

   (28)

  , so as to ensure that no duplication of requirements or other unnecessary burdens for administrators result. |
| --- | --- |

(d)

whether requirements are already partially or fully covered by other relevant regulatory requirements, particularly for benchmarks based on regulated data, and particularly but not limited to requirements under Directive 2014/65/EU or Regulation (EU) No 600/2014of the European Parliament and of the Council

   (28)

  , so as to ensure that no duplication of requirements or other unnecessary burdens for administrators result.

ESMA shall submit those draft regulatory technical standards to the Commission by [...].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

Article 6

Outsourcing

1.   Administrators shall not outsource functions in the provision of a benchmark in such a way as to impair materially the administrator’s control over the provision of the benchmark or the ability of the relevant competent authority to supervise the benchmark.

▌

3.   Where an administrator outsources functions or any relevant services and activities in the provision of a benchmark to any service provider, it shall remain fully responsible for discharging all of its obligations under this Regulation.

3a.
     
  Where outsourcing takes place, the administrator shall ensure that the following conditions are satisfied:

| (a) | the service provider shall have the ability, capacity, and any authorisation required by law, to perform the outsourced functions, services or activities reliably and professionally; |
| --- | --- |

(a)

the service provider shall have the ability, capacity, and any authorisation required by law, to perform the outsourced functions, services or activities reliably and professionally;

| (b) | the administrator shall make available to the relevant competent authorities the identity and the tasks of the service provider who participates in the benchmark determination process; |
| --- | --- |

(b)

the administrator shall make available to the relevant competent authorities the identity and the tasks of the service provider who participates in the benchmark determination process;

| (c) | the administrator shall take appropriate action if it appears that the service provider may not be carrying out the outsourced functions effectively and in compliance with applicable law and regulatory requirements; |
| --- | --- |

(c)

the administrator shall take appropriate action if it appears that the service provider may not be carrying out the outsourced functions effectively and in compliance with applicable law and regulatory requirements;

| (d) | the administrator shall retain the necessary expertise to supervise the outsourced functions effectively and to manage the risks associated with the outsourcing; |
| --- | --- |

(d)

the administrator shall retain the necessary expertise to supervise the outsourced functions effectively and to manage the risks associated with the outsourcing;

| (e) | the service provider shall disclose to the administrator any development that may have a material impact on its ability to carry out the outsourced functions effectively and in compliance with applicable law and regulatory requirements; |
| --- | --- |

(e)

the service provider shall disclose to the administrator any development that may have a material impact on its ability to carry out the outsourced functions effectively and in compliance with applicable law and regulatory requirements;

| (f) | the service provider shall cooperate with the relevant competent authority in connection with the outsourced activities, and the administrator and the relevant competent authority shall have effective access to data related to the outsourced activities, as well as to the business premises of the service provider, and the relevant competent authority shall be able to exercise those rights of access; |
| --- | --- |

(f)

the service provider shall cooperate with the relevant competent authority in connection with the outsourced activities, and the administrator and the relevant competent authority shall have effective access to data related to the outsourced activities, as well as to the business premises of the service provider, and the relevant competent authority shall be able to exercise those rights of access;

| (g) | the administrator shall be able to terminate the arrangements where necessary. |
| --- | --- |

(g)

the administrator shall be able to terminate the arrangements where necessary.

| (h) | the administrator shall take reasonable steps, including contingency plans, to avoid undue operational risk related to the participation of the service provider in the benchmark determination process. |
| --- | --- |

(h)

the administrator shall take reasonable steps, including contingency plans, to avoid undue operational risk related to the participation of the service provider in the benchmark determination process.

Chapter 2

Input data, methodology and reporting of
  infringements

Article 7

Input data ▌

1.   The provision of a benchmark shall be governed by the following requirements in respect of its input data ▌:

| (a) | The input data shall be
  transaction data or, where more appropriate, non-transaction based data, including committed quotes and verifiable estimates, provided that it
  accurately and reliably
  represents
  the market or economic reality that the benchmark is intended to measure▐. |
| --- | --- |

(a)

The input data shall be
  transaction data or, where more appropriate, non-transaction based data, including committed quotes and verifiable estimates, provided that it
  accurately and reliably
  represents
  the market or economic reality that the benchmark is intended to measure▐.

| (aa) | The input data referred to in point (a) shall be verifiable. |
| --- | --- |

(aa)

The input data referred to in point (a) shall be verifiable.

| (b) | The administrator shall obtain the input data from a reliable and representative panel or sample of contributors so as to ensure that the resulting benchmark is reliable and representative of the market or economic reality that the benchmark is intended to measure▐. |
| --- | --- |

(b)

The administrator shall obtain the input data from a reliable and representative panel or sample of contributors so as to ensure that the resulting benchmark is reliable and representative of the market or economic reality that the benchmark is intended to measure▐.

| (ba) | The administrator shall only use input data from contributors which comply with the code of conduct referred to in Article 9. |
| --- | --- |

(ba)

The administrator shall only use input data from contributors which comply with the code of conduct referred to in Article 9.

| (bb) | The administrator shall maintain a list of persons who may contribute input data to the administrator including procedures to evaluate the identity of a contributor and any submitters. |
| --- | --- |

(bb)

The administrator shall maintain a list of persons who may contribute input data to the administrator including procedures to evaluate the identity of a contributor and any submitters.

| (bc) | The administrator shall ensure contributors provide all relevant input data; and |
| --- | --- |

(bc)

The administrator shall ensure contributors provide all relevant input data; and

| (c) | Where the input data of a benchmark is not transaction data and a contributor is a party to more than 50 % of
  the
  value of transactions in the market ▐ that the benchmark intends to measure, the administrator shall verify
  where possible,
  that the input data represents a market subject to competitive supply and demand forces. Where the administrator finds that the input data does not represent a market subject to competitive supply and demand forces, it shall either change the input data, the contributors or the methodology to ensure that the input data represents a market subject to competitive supply and demand forces, or cease to provide that benchmark ▌. |
| --- | --- |

(c)

Where the input data of a benchmark is not transaction data and a contributor is a party to more than 50 % of
  the
  value of transactions in the market ▐ that the benchmark intends to measure, the administrator shall verify
  where possible,
  that the input data represents a market subject to competitive supply and demand forces. Where the administrator finds that the input data does not represent a market subject to competitive supply and demand forces, it shall either change the input data, the contributors or the methodology to ensure that the input data represents a market subject to competitive supply and demand forces, or cease to provide that benchmark ▌.

▌

2a.
     
  The administrator shall ensure that the controls in respect of the input data include:

| (a) | criteria that define who may contribute input data to the administrator and a process for selecting the contributors; |
| --- | --- |

(a)

criteria that define who may contribute input data to the administrator and a process for selecting the contributors;

| (b) | a process for evaluating the contributor's input data and preventing the contributor from providing further input data or applying other sanctions for non-compliance against the contributor, where appropriate; and |
| --- | --- |

(b)

a process for evaluating the contributor's input data and preventing the contributor from providing further input data or applying other sanctions for non-compliance against the contributor, where appropriate; and

| (c) | a process for validating the input data including against other indicators or data, to ensure its integrity and accuracy. Where a benchmark meets the criteria laid down in Article 14a, this requirement shall only apply where compliance is possible within reason. |
| --- | --- |

(c)

a process for validating the input data including against other indicators or data, to ensure its integrity and accuracy. Where a benchmark meets the criteria laid down in Article 14a, this requirement shall only apply where compliance is possible within reason.

▌

3a.
     
  Where the input data of a benchmark is contributed from a front office function, meaning any department, division, group, or personnel of contributors or any of its affiliates that performs any pricing, trading, sales, marketing, advertising, solicitation, structuring, or brokerage activities, the administrator shall:

| (a) | obtain data from other sources that corroborates that input data; |
| --- | --- |

(a)

obtain data from other sources that corroborates that input data;

| (b) | ensure that contributors have adequate internal oversight and verification procedures that allow for:










  (i) | validation of input data contributed, including procedures for multiple reviews by senior staff to check inputs and internal sign off procedures by management for submitting inputs; |
| --- | --- | --- |

(b)

ensure that contributors have adequate internal oversight and verification procedures that allow for:

(i)

validation of input data contributed, including procedures for multiple reviews by senior staff to check inputs and internal sign off procedures by management for submitting inputs;

| (ii) | the physical separation of employees in the front office function and reporting lines; |
| --- | --- |

(ii)

the physical separation of employees in the front office function and reporting lines;

| (iii) | full consideration of conflict management measures to identify, disclose, manage, mitigate and avoid existing or potential incentives to manipulate or otherwise influence data inputs, including through remuneration policies and conflicts of interest between the contribution of input data activities and any other business of the contributor, its affiliates, or their respective clients or customers. |
| --- | --- |

(iii)

full consideration of conflict management measures to identify, disclose, manage, mitigate and avoid existing or potential incentives to manipulate or otherwise influence data inputs, including through remuneration policies and conflicts of interest between the contribution of input data activities and any other business of the contributor, its affiliates, or their respective clients or customers.

The provisions laid down in points (a) and (b) of the first subparagraph shall apply to benchmarks that meet the criteria laid down in Article 14a only where compliance with these provisions is possible within reason.

3b.
     
  Any non-material change to the benchmark in respect of provisions covered in this Article shall not be considered to be a breach of any financial contract or financial instrument which references that benchmark. For a critical benchmark, the relevant competent authority shall have the power to deem a change to be material.

3c.
     
  ESMA shall develop draft regulatory technical standards to specify further the internal oversight and verification procedures of a contributor that the administrator shall seek, in compliance with paragraph 2a and 3a, in order to ensure the integrity and accuracy of input data.

ESMA shall take into account the principle of proportionality with respect to non-critical and commodity benchmarks; the specificity of different types of benchmarks in particular those benchmarks based on contributions from entities that meet the criteria laid down in Article 14a; the nature of the input data, whether requirements are already partially or fully covered by other relevant regulatory requirements, particularly but not limited to requirements under Directive 2014/65/EU or Regulation (EU) No 600/2014, so as to ensure no duplication of requirements or other unnecessary burdens for administrators shall result, as well as the international convergence of supervisory practice in relation to benchmarks.

ESMA shall submit those draft regulatory technical standards to the Commission by [XXX].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010.

Article 7a

Methodology

1.
     
  The administrator shall use a methodology for the determination of the benchmark that:

| (a) | is robust and reliable; |
| --- | --- |

(a)

is robust and reliable;

| (b) | has clear rules identifying how and when discretion may be exercised in the determination of that benchmark; |
| --- | --- |

(b)

has clear rules identifying how and when discretion may be exercised in the determination of that benchmark;

| (c) | is rigorous, continuous and capable of validation, including back-testing; |
| --- | --- |

(c)

is rigorous, continuous and capable of validation, including back-testing;

| (d) | is resilient and ensures that the benchmark can be calculated in the widest set of possible circumstances; |
| --- | --- |

(d)

is resilient and ensures that the benchmark can be calculated in the widest set of possible circumstances;

| (e) | is traceable and verifiable. |
| --- | --- |

(e)

is traceable and verifiable.

2.
     
  When developing the benchmark methodology the benchmark administrator shall:

| (a) | take into account factors including the size and normal liquidity of the market, the transparency of trading and the positions of market participants, market concentration, market dynamics, and the adequacy of any sample to represent the market or the economic reality that the benchmark is intended to measure; |
| --- | --- |

(a)

take into account factors including the size and normal liquidity of the market, the transparency of trading and the positions of market participants, market concentration, market dynamics, and the adequacy of any sample to represent the market or the economic reality that the benchmark is intended to measure;

| (b) | determine what constitutes an active market for the purposes of that benchmark; and |
| --- | --- |

(b)

determine what constitutes an active market for the purposes of that benchmark; and

| (c) | establish the priority given to different types of input data. |
| --- | --- |

(c)

establish the priority given to different types of input data.

3.
     
  The administrator shall have in place clear published arrangements that identify the circumstances in which the quantity or quality of input data falls below the standards necessary for the methodology to determine the benchmark accurately and reliably, and that describe whether and how the benchmark will be calculated in such circumstances.

4.
     
  Any non-material change to the benchmark in respect of provisions covered in this Article shall not be considered to be a breach of any financial contract or financial instrument which references that benchmark. For a critical benchmark, the relevant competent authority shall have the power to deem a change to be material.

Article 7b

Transparency of methodology

1.
     
  The administrator shall transparently develop, operate and administer the benchmark data and methodology.

The administrator shall publish, by means that ensure a fair and easy access:

| (i) | the methodology used for each of the benchmark or family of benchmarks; and |
| --- | --- |

(i)

the methodology used for each of the benchmark or family of benchmarks; and

| (ii) | the procedure for consulting on, and the rationale for, any proposed material change in its methodology and the rationale for such a change, including a definition of what constitutes a material change and when it will notify users of any changes. |
| --- | --- |

(ii)

the procedure for consulting on, and the rationale for, any proposed material change in its methodology and the rationale for such a change, including a definition of what constitutes a material change and when it will notify users of any changes.

2.
     
  Where a benchmark meets the criteria laid down in Article 14a, the administrator of that benchmark shall describe and publish with each calculation, to the extent reasonable and without prejudicing due publication of the benchmark:

| (a) | a concise explanation, sufficient to facilitate a benchmark subscriber's or competent authority's ability to understand how the calculation was developed including, at a minimum, the size and liquidity of the physical market being assessed (such as the number and volume of transactions submitted), the range and average volume and range and average price, and indicative percentages of each type of input data that have been considered in a calculation; terms referring to the pricing methodology shall be included such as “transaction-based”, “spread-based” or “interpolated or extrapolated”; and |
| --- | --- |

(a)

a concise explanation, sufficient to facilitate a benchmark subscriber's or competent authority's ability to understand how the calculation was developed including, at a minimum, the size and liquidity of the physical market being assessed (such as the number and volume of transactions submitted), the range and average volume and range and average price, and indicative percentages of each type of input data that have been considered in a calculation; terms referring to the pricing methodology shall be included such as “transaction-based”, “spread-based” or “interpolated or extrapolated”; and

| (b) | a concise explanation of the extent to which, and the basis upon which, any judgement was exercised including any decision to exclude input data which otherwise conformed to the requirements of the relevant methodology for that calculation; base prices on spreads or interpolation, extrapolation, or weighting bids or offers higher than concluded transactions in any calculation. |
| --- | --- |

(b)

a concise explanation of the extent to which, and the basis upon which, any judgement was exercised including any decision to exclude input data which otherwise conformed to the requirements of the relevant methodology for that calculation; base prices on spreads or interpolation, extrapolation, or weighting bids or offers higher than concluded transactions in any calculation.

3.
     
  Where such a publication would not be compatible with applicable intellectual property law, the methodology shall be made available to the relevant competent authority.

4.
     
  Where a material change is made to the methodology of a critical benchmark, the administrator shall notify the relevant competent authority of the change. The competent authority shall have 30 days to approve the change.

Article 7c

Regulatory technical standards on input data and methodology

ESMA shall develop regulatory technical standards to specify the controls in respect of input data, the circumstances under which transaction data may not be sufficient and how this can be demonstrated to the relevant competent authorities and the requirements for developing methodologies, distinguishing for different types of benchmarks and sectors as set out in this Regulation. ESMA shall take account of the following:

| (a) | developments in benchmarks and financial markets in light of international convergence of supervisory practice in relation to benchmarks; |
| --- | --- |

(a)

developments in benchmarks and financial markets in light of international convergence of supervisory practice in relation to benchmarks;

| (b) | specific features of different benchmarks and types of benchmarks; |
| --- | --- |

(b)

specific features of different benchmarks and types of benchmarks;

| (c) | the principle of proportionality with respect to non-critical benchmarks; |
| --- | --- |

(c)

the principle of proportionality with respect to non-critical benchmarks;

| (d) | the vulnerability of benchmarks to manipulation in light of the methodologies and input data used; |
| --- | --- |

(d)

the vulnerability of benchmarks to manipulation in light of the methodologies and input data used;

| (e) | that sufficient detail should be available to users to allow them to understand how a benchmark is provided in order to assess its relevance and appropriateness as a reference; |
| --- | --- |

(e)

that sufficient detail should be available to users to allow them to understand how a benchmark is provided in order to assess its relevance and appropriateness as a reference;

| (f) | whether requirements are already partially or fully covered by other relevant regulatory requirements, particularly for benchmarks based on regulated data, and particularly but not limited to requirements under Directive 2014/65/EU or Regulation (EU) No 600/2014, so as to ensure no duplication of requirements or other unnecessary burdens for administrators shall result. |
| --- | --- |

(f)

whether requirements are already partially or fully covered by other relevant regulatory requirements, particularly for benchmarks based on regulated data, and particularly but not limited to requirements under Directive 2014/65/EU or Regulation (EU) No 600/2014, so as to ensure no duplication of requirements or other unnecessary burdens for administrators shall result.

ESMA shall submit those draft regulatory technical standards to the Commission by [...].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

Article 8

Reporting of
  infringements

1.   The administrator shall
  have procedures in place for its managers, employees, and any other natural persons whose services are placed at its disposal or under its control, to report internally infringements of this Regulation and other relevant applicable law
  .

2.   The administrator shall
  have procedures in place to report infringements of this Regulation and other relevant applicable law to the appropriate authorities.

▌

Chapter 3

Code of conduct and requirements for contributors

Article 9

Code of conduct

1.   
  Where a benchmark is based on input data from contributors,
  the administrator shall
  draw up, where possible in collaboration with the contributors,
  a code of conduct for each benchmark clearly specifying the ▌ contributors’ responsibilities ▌with respect to the
  contribution of input data and shall ensure submitters confirm their compliance with the code of conduct and reconfirm compliance in the event of any changes to it
  .

2.   The code of conduct shall
  include at least the following elements:

| (
  a) | a clear description of the input data to be provided and the requirements necessary to ensure that the input data is provided in accordance with Articles 7 and 8; |
| --- | --- |

(
  a)

a clear description of the input data to be provided and the requirements necessary to ensure that the input data is provided in accordance with Articles 7 and 8;

| (b) | policies to ensure contributors provide all relevant input data; and |
| --- | --- |

(b)

policies to ensure contributors provide all relevant input data; and

| (c) | the systems and controls that the contributor is required to establish, including:










  (i) | procedures for submitting input data, including requirements for the contributor to specify whether the input data is transaction data and whether the input data conforms with the administrator's requirements; |
| --- | --- | --- |

(c)

the systems and controls that the contributor is required to establish, including:

(i)

procedures for submitting input data, including requirements for the contributor to specify whether the input data is transaction data and whether the input data conforms with the administrator's requirements;

| (ii) | policies on the use of discretion in providing input data; |
| --- | --- |

(ii)

policies on the use of discretion in providing input data;

| (iii) | any requirement for the validation of input data before it is provided to the administrator; |
| --- | --- |

(iii)

any requirement for the validation of input data before it is provided to the administrator;

| (iv) | record keeping policies; |
| --- | --- |

(iv)

record keeping policies;

| (v) | suspicious input data reporting requirements; |
| --- | --- |

(v)

suspicious input data reporting requirements;

| (vi) | conflict management requirements. |
| --- | --- |

(vi)

conflict management requirements.

2a.
     
  The administrator may develop a single code of conduct for each family of benchmarks it provides.

2b.
     
  Within 20 days from the date of application of the decision to include a critical benchmark in the list referred to in Article 13(1), the administrator of that critical benchmark shall notify the code of conduct to the relevant competent authority. The relevant competent authority shall verify within 30 days whether the content of the code of conduct complies with this Regulation.

3.   
  ESMA
  shall
  develop draft regulatory technical standards to
  specify
  further
  the
  elements
  of the code of conduct
  referred to in paragraph 2
  for different types of benchmarks, and in order to take account of developments in benchmarks and financial markets.

ESMA, while developing those draft regulatory technical standards,
  shall take into account the
  principle of proportionality with respect to
  different characteristics of benchmarks and
  of
  contributors, notably in terms of differences in input data and methodologies, the risks of input data being manipulated, and the international convergence of supervisory practices in relation to benchmarks.
  ESMA shall consult with ACER, with regard to applicability of codes of conduct in particular with regard to relevant benchmarks.

ESMA shall submit those draft regulatory technical standards to the Commission by [XXX].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first paragraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010.

▌

Article 11

Requirements for supervised contributors

1.   The ▌governance and control requirements
  set out in paragraphs 2a and 3
  shall apply to a supervised contributor
  contributing input data to a critical benchmark.

2.   A supervised contributor shall
  have effective systems and controls in place to ensure the integrity and reliability of all contributions of input data to the administrator, including:

| (a) | controls regarding who may submit input data to an administrator including, where proportionate, a process for sign-off by a natural person senior to the submitter; |
| --- | --- |

(a)

controls regarding who may submit input data to an administrator including, where proportionate, a process for sign-off by a natural person senior to the submitter;

| (b) | appropriate training for submitters, covering at least this Regulation and Regulation (EU) No 596/2014; |
| --- | --- |

(b)

appropriate training for submitters, covering at least this Regulation and Regulation (EU) No 596/2014;

| (c) | conflict management measures, including organisational separation of employees where appropriate and a consideration of how to remove incentives to manipulate any benchmark created by remuneration polices; |
| --- | --- |

(c)

conflict management measures, including organisational separation of employees where appropriate and a consideration of how to remove incentives to manipulate any benchmark created by remuneration polices;

| (d) | record keeping of communications in relation to provision of input data for an appropriate period of time; |
| --- | --- |

(d)

record keeping of communications in relation to provision of input data for an appropriate period of time;

| (e) | record keeping of exposures of individual traders and trader desks to instruments referencing a benchmark in order to facilitate audits, investigations and for purposes of managing conflicts of interest; |
| --- | --- |

(e)

record keeping of exposures of individual traders and trader desks to instruments referencing a benchmark in order to facilitate audits, investigations and for purposes of managing conflicts of interest;

| (f) | record keeping of internal and external audits. |
| --- | --- |

(f)

record keeping of internal and external audits.

2a.
     
  Where input data is not transaction data or committed quotes, supervised contributors shall, in addition to the systems and controls referred to in paragraph 2, establish policies guiding any use of judgement or exercise of discretion and retain records of the rationale for any such judgement or discretion, where proportionate, taking into account the nature of the benchmark and input data.

3.   A supervised contributor shall fully cooperate with the administrator and the relevant competent authority in the auditing and supervision of the provision of a benchmark
  , including for the purposes set out in Article 5c(3),
  and make available the information and records kept in accordance with
  paragraphs 2 and 2a
  .

4.   
  ESMA
  shall
  develop draft regulatory technical standards to specify further
  the requirements concerning systems and controls set out in
  paragraphs 2, 2a and 3
  for different types of benchmarks.

ESMA shall submit those draft regulatory technical standards to the Commission by [XXX].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010.

TITLE III

▌REQUIREMENTS
  FOR
  CRITICAL BENCHMARKS

Chapter 1

Regulated data

▌

Article 12a

Regulated data

Where benchmarks are determined by the application of a formula to data set out in point 11(i) or point 11(ii) of Article 3(1), Articles 7(1)(b), 7(1)(ba), 7(1)(c), 7(2a), 7(3a), 8(1), 8(2), 9, 11 and 13a shall not apply to the provision of and the contribution to such benchmarks. Article 5d(1)(a) shall not apply to the provision of such benchmarks with reference to input data that are contributed entirely as specified in point 11 of Article 3(1). These requirements shall also not apply for purposes of Article 5c(3).

Chapter 2

Critical benchmarks

Article 13

Critical benchmarks

1.   
  A benchmark that is not based on regulated data shall be deemed to be a critical benchmark in the following circumstances:

| (a) | the benchmark is used as a reference for financial instruments and financial contracts having an average value of at least EUR 500 000 000 000, as measured over an appropriate period of time; |
| --- | --- |

(a)

the benchmark is used as a reference for financial instruments and financial contracts having an average value of at least EUR 500 000 000 000, as measured over an appropriate period of time;

| (b) | the benchmark is recognised as critical in accordance with the procedure laid down in paragraphs 2a, 2c and 2e-2 g. |
| --- | --- |

(b)

the benchmark is recognised as critical in accordance with the procedure laid down in paragraphs 2a, 2c and 2e-2 g.

ESMA shall develop draft regulatory technical standards to:

| — | specify how the market value of financial instruments is calculated; |
| --- | --- |

—

specify how the market value of financial instruments is calculated;

| — | specify how the gross notional value of derivatives is calculated; |
| --- | --- |

—

specify how the gross notional value of derivatives is calculated;

| — | specify the length of time to be used to measure appropriately the value of the benchmark; |
| --- | --- |

—

specify the length of time to be used to measure appropriately the value of the benchmark;

| — | review the EUR 500 000 000 000 threshold, at least every [three] years after the date of the entry into force of this Regulation. |
| --- | --- |

—

review the EUR 500 000 000 000 threshold, at least every [three] years after the date of the entry into force of this Regulation.

ESMA shall submit those draft regulatory technical standards to the Commission by [XXX].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010.

▌

2a.
     
  A competent authority of a Member State may deem a benchmark administered within its jurisdiction to be critical where it has an average notional value totalling less than the amount set in point (a) of the first subparagraph of paragraph 1 if it considers that the cessation of that benchmark would have a significant adverse impact on the integrity of markets, financial stability, consumers, the real economy, or the financing of households and corporations within its jurisdiction. In such a case, it shall notify ESMA of its decision within five days.

2b.
     
  Within 10 days following receipt of the notification provided for in paragraph 2a of this Article, ESMA shall publish the notification on its website and update the register referred to Article 25a.

2c.
     
  Where a national competent authority considers that a decision taken pursuant to paragraph 2a by another competent authority in the Union will have a significant adverse impact on financial market stability, the real economy, or supervised contributors to the relevant benchmark in its jurisdiction, it shall issue a request to that national competent authority to reconsider its decision. The competent authority that took the decision pursuant to paragraph 2a shall inform the requesting competent authority of its response within 30 days of the receipt of the request.

2d.
     
  In the absence of an agreement between the competent authorities, the requesting competent authority may refer the matter to ESMA. Within 60 days of receiving such a referral request, ESMA shall act in accordance with Article 19 of Regulation (EU) No 1095/2010.

2e.
     
  Where a competent authority of a Member State or ESMA considers that a benchmark administered in another Member State with an average notional value totalling less than the amount set in point (a) of the first subparagraph of paragraph 1 should nevertheless be deemed to be critical, as the cessation of that benchmark would have a significant adverse impact on the integrity of markets, financial stability, consumers, the real economy, or the financing of households and corporations within its jurisdiction, it shall issue a request to the national competent authority of the relevant benchmark administrator to categorise the benchmark as critical. The competent authority of the relevant benchmark administrator shall inform the requesting competent authority of its response within 30 days of the receipt of the request.

2f.
     
  Following the procedure laid down in paragraph 2e, and in the absence of an agreement between the competent authorities, the requesting competent authority may refer the matter to ESMA. It shall transmit a documented assessment of the impact of the cessation of the benchmark in its jurisdiction, which shall include at least the following:

| (a) | the variety of use in terms of market participants, as well as use in retail markets; |
| --- | --- |

(a)

the variety of use in terms of market participants, as well as use in retail markets;

| (b) | the availability of a feasible market-led substitute for the benchmark; |
| --- | --- |

(b)

the availability of a feasible market-led substitute for the benchmark;

| (c) | the value of financial instruments and financial contracts that reference the benchmark within the Member State and its relevance in terms of the gross national product of the Member State; |
| --- | --- |

(c)

the value of financial instruments and financial contracts that reference the benchmark within the Member State and its relevance in terms of the gross national product of the Member State;

| (d) | the concentration in use and, where applicable, of contribution to the benchmark among Member States; |
| --- | --- |

(d)

the concentration in use and, where applicable, of contribution to the benchmark among Member States;

| (e) | any other indicator to assess the potential impact of the discontinuity or unreliability of the benchmark on the integrity of markets, financial stability, or the financing of households and corporations of the Member State. |
| --- | --- |

(e)

any other indicator to assess the potential impact of the discontinuity or unreliability of the benchmark on the integrity of markets, financial stability, or the financing of households and corporations of the Member State.

Where ESMA is the requesting competent authority, it shall review its request and issue a binding opinion.

2 g.
     
  Within [10] weeks of receiving the notification referred to in paragraph 2d, and after consulting the ESRB and other relevant national competent authorities, ESMA shall issue a binding opinion on the criticality of the benchmark. ESMA shall transmit its opinion to the Commission, the national competent authorities and the administrator, together with the results of the consultations. ESMA shall base its opinion on the criteria listed in paragraph 2f and other relevant criteria.

2h.
     
  Once a benchmark has been defined as critical, the college of competent authorities shall be formed pursuant to Article 34.

The college of competent authorities shall request the information needed in order to grant the authorisation enabling this benchmark to be provided under the additional conditions imposed by this Regulation on account of the benchmark being critical, as provided for in Article 23.

| 2i. | The college of competent authorities shall review at least once every two years benchmarks previously classed as critical. |
| --- | --- |

2i.

| 2j. | Member States may, in exceptional circumstances, impose additional requirements on any benchmark administrator in respect of the matters covered by this Article. |
| --- | --- |

2j.

Article 13a

Mandatory administration of a critical benchmark

1.
     
  If an administrator of a critical benchmark intends to cease producing its critical benchmark, it shall:

| (a) | immediately notify its competent authority; and |
| --- | --- |

(a)

immediately notify its competent authority; and

| (b) | within four weeks of such notification submit an assessment of how the benchmark is to be transitioned to a new administrator; or |
| --- | --- |

(b)

within four weeks of such notification submit an assessment of how the benchmark is to be transitioned to a new administrator; or

| (c) | within four weeks of such notification submit an assessment of how the benchmark is to be ceased to be produced, taking into account the procedure established in Article 17(1). |
| --- | --- |

(c)

within four weeks of such notification submit an assessment of how the benchmark is to be ceased to be produced, taking into account the procedure established in Article 17(1).

During that period, the administrator shall not cease production of the benchmark.

2.
     
  Upon receipt of the assessment of the administrator referred to in paragraph 1, the competent authority shall within four weeks:

| (a) | inform ESMA; and |
| --- | --- |

(a)

inform ESMA; and

| (b) | make its own assessment of how the benchmark shall be transitioned to a new administrator or be ceased to be produced, taking into account the administrator's procedure for cessation of its benchmark established in accordance with Article 17(1). |
| --- | --- |

(b)

make its own assessment of how the benchmark shall be transitioned to a new administrator or be ceased to be produced, taking into account the administrator's procedure for cessation of its benchmark established in accordance with Article 17(1).

During that period of time, the administrator shall not cease production of the benchmark.

3.
     
  Following completion of the assessment under paragraph 2, the competent authority shall have the power to compel the administrator to continue publishing the benchmark until such time:

| (a) | as the provision of the benchmark has been transferred to a new administrator; or |
| --- | --- |

(a)

as the provision of the benchmark has been transferred to a new administrator; or

| (b) | as the benchmark can be ceased in an orderly fashion; or |
| --- | --- |

(b)

as the benchmark can be ceased in an orderly fashion; or

| (c) | as the benchmark is no longer critical. |
| --- | --- |

(c)

as the benchmark is no longer critical.

The competent authority may compel the administrator to continue to publish the benchmark for a limited period of time not exceeding six months, which the competent authority may extend where necessary by up to a further six months.

Article 13b

Mitigation of market power of critical benchmark administrators

1.
     
  The administrator, in controlling the provision of the critical benchmark, shall have due regard to the principles of market integrity and benchmark continuity including the need for legal certainty for contracts which reference the benchmark.

2.
     
  When providing the critical benchmark for use in a financial contract or a financial instrument, the administrator shall ensure that licences of, and information relating to, the benchmark are provided to all users on a fair, reasonable and non-discriminatory basis, as outlined in Article 37 of Regulation (EU) No 600/2014.

Article 14

Mandatory contribution
  to a critical benchmark

1.   
  The administrator of one or more
  critical
  benchmarks based on submissions by
  contributors
  the majority of which
  are
  supervised entities shall, every two years, submit to its
  competent authority
  an assessment of the capability of each critical benchmark it provides to measure the underlying market or economic reality.

2.   
  If one or more supervised contributors to
  a critical benchmark
  intend to cease contributing input data to that critical benchmark, they shall promptly notify in writing the administrator of the critical benchmark and the relevant competent authority. Within 14 days of receipt of such notification, the administrator shall inform
  the competent authority
  and provide an assessment
  of the
  implications of the cessation
  on the
  capability of the benchmark to measure the underlying market or economic reality. The administrator shall also inform the remaining supervised contributors to the critical benchmark of the notice to cease contributions and seek to determine whether others intend to cease contributing.

The competent authority shall promptly inform the college of competent authorities and shall complete its own assessment of the implications of the cessation within a reasonable period of time. The competent authority shall have the power to require the contributors which made the notification intending to cease contributing input data to a critical benchmark to continue to contribute such input data until the competent authority has completed its assessment.

3.   
  In the event that
  the competent authority
  considers that the representativeness of a critical
  benchmark
  is put at risk, it shall have the power to:

| (a) | require supervised entities in accordance with paragraph 4, including entities that are not already contributors to the relevant critical benchmark, to contribute input data to the administrator in accordance with the methodology, code of conduct or other rules. Such a requirement shall be in place for an appropriate transition period dependent upon the average length of contract referencing the relevant benchmark, but not exceeding 12 months from the date when the initial decision to mandate contribution was taken; |
| --- | --- |

(a)

require supervised entities in accordance with paragraph 4, including entities that are not already contributors to the relevant critical benchmark, to contribute input data to the administrator in accordance with the methodology, code of conduct or other rules. Such a requirement shall be in place for an appropriate transition period dependent upon the average length of contract referencing the relevant benchmark, but not exceeding 12 months from the date when the initial decision to mandate contribution was taken;

| (b) | following a review as laid down in paragraph 5b of the transitional period referred to in point (a) of this paragraph, extend the period of mandatory contribution by a period of time not exceeding 12 months; |
| --- | --- |

(b)

following a review as laid down in paragraph 5b of the transitional period referred to in point (a) of this paragraph, extend the period of mandatory contribution by a period of time not exceeding 12 months;

| (c) | determine the time by which input data shall be contributed, without obliging supervised entities to trade or commit to trade; |
| --- | --- |

(c)

determine the time by which input data shall be contributed, without obliging supervised entities to trade or commit to trade;

| (d) | require the administrator to make changes to the code of conduct, methodology or other rules of the critical benchmark to increase the benchmark’s representativeness and robustness, after discussion with the administrator; |
| --- | --- |

(d)

require the administrator to make changes to the code of conduct, methodology or other rules of the critical benchmark to increase the benchmark’s representativeness and robustness, after discussion with the administrator;

| (e) | request administrator to provide and make available to users of the benchmark a written report on measures that the administrator intends to adopt, to increase the representativeness and robustness of the benchmark. |
| --- | --- |

(e)

request administrator to provide and make available to users of the benchmark a written report on measures that the administrator intends to adopt, to increase the representativeness and robustness of the benchmark.

4.   
  The supervised entities referred to in point (a) of paragraph 3 shall be determined by
  the competent authority of the administrator
  , with the assistance of the competent authority of the supervised entities, on the basis of the size of the supervised entity's participation in the market that the benchmark seeks to measure, as well as the contributor’s expertise and ability to provide input data of the necessary quality. Due consideration shall be given to the existence of appropriate alternative benchmarks to which the financial contracts and financial instruments referencing the critical benchmark could transition.

5.   
  Where a benchmark is deemed to be critical in accordance with the procedure laid down in paragraphs 2a to 2d of Article 13, the competent authority of the administrator shall have the power to require the contribution of input data in accordance with points (a), (b) and (c) of paragraph 3 of this Article only from supervised contributors located in its Member State
  .

5a.
     
  The competent authority of a supervised entity referred to in paragraph 3 shall assist the competent authority of the administrator in enforcing measures pursuant to paragraph 3.

5b.
     
  By the end of the transitional period referred to in point (a) of paragraph 3, the competent authority of the administrator in cooperation with the college of competent authorities shall review the continued necessity of the measures laid down in point (a) of paragraph 3 and submit its conclusions in a written report. The competent authority of the administrator shall revoke the measures if it judges:

| (a) | that the benchmark can continue once the contributors mandated to contribute input data have ceased contributing; |
| --- | --- |

(a)

that the benchmark can continue once the contributors mandated to contribute input data have ceased contributing;

| (b) | that the contributors are likely to continue contributing input data for at least one year if the power were revoked; |
| --- | --- |

(b)

that the contributors are likely to continue contributing input data for at least one year if the power were revoked;

| (c) | following consultation with contributors and users, that an acceptable substitute benchmark is available and users of the critical benchmark are able to switch to that substitute at acceptable costs. Such a switch shall not be deemed to constitute a breach of an existing contract; or |
| --- | --- |

(c)

following consultation with contributors and users, that an acceptable substitute benchmark is available and users of the critical benchmark are able to switch to that substitute at acceptable costs. Such a switch shall not be deemed to constitute a breach of an existing contract; or

| (d) | that no appropriate alternative contributors can be identified and the cessation of contributions from the relevant supervised entities would weaken the benchmark sufficiently to require the winding down of the benchmark. |
| --- | --- |

(d)

that no appropriate alternative contributors can be identified and the cessation of contributions from the relevant supervised entities would weaken the benchmark sufficiently to require the winding down of the benchmark.

In the case of points (a) and (b) of the first subparagraph, the supervised entities intending to cease contributing shall do so on the same date to be determined by the competent authority of the administrator, not exceeding the periods laid down in point (b) of paragraph 3.

5c.
     
  In the event that a critical benchmark is to be wound down, each supervised contributor to the critical benchmark shall continue to contribute input data for an additional appropriate period of time determined by the competent authority, but not exceeding the periods laid down in point (b) of paragraph 3. Any changes or switches to another benchmark shall not be deemed to constitute a breach of an existing contract.

5d.
     
  The administrator shall, as soon as is practically possible, notify the relevant competent authority in the event that a contributor infringes the requirements of paragraph 2.

Article 14a

Commodity benchmarks based on contributions from non-supervised entities

Where a commodity benchmark is based on submissions from contributors the majority of which are not supervised entities whose main business is the provision of investment services within the meaning of Directive 2014/65/EU or banking activities under Directive 2013/36/EU, Articles 5a, 5b, 5c(1), 5c(2), 5d(2), 7(1)(ba), 7(1)(bc) and 9 shall not apply.

TITLE IV

TRANSPARENCY AND CONSUMER PROTECTION

Article 15

Benchmark statement

1.   
  Within two weeks of inclusion in the register referred to in Article 25a, an
  administrator shall publish a benchmark statement for each benchmark
  or, where applicable, for each family of benchmarks produced and published in order to obtain authorisation or registration, or in order to be endorsed under Article 21b, or recognised under Article 21a. The administrator shall update the benchmark statement for each benchmark or a family of benchmarks at least every two years. The statement shall
  :

| (a) | clearly and unambiguously defines the market or economic reality measured by the benchmark and the circumstances in which such measurement may become unreliable; |
| --- | --- |

(a)

clearly and unambiguously defines the market or economic reality measured by the benchmark and the circumstances in which such measurement may become unreliable;

▌

| (c) | ▌clearly and unambiguously identify the elements of the
  benchmark
  to which discretion may be exercised
  and
  the criteria applicable to the exercise of such discretion▌; |
| --- | --- |

(c)

▌clearly and unambiguously identify the elements of the
  benchmark
  to which discretion may be exercised
  and
  the criteria applicable to the exercise of such discretion▌;

| (d) | provide
  notice of the possibility that factors, including external factors beyond the control of the administrator, may necessitate changes to, or the cessation, of the benchmark; and |
| --- | --- |

(d)

provide
  notice of the possibility that factors, including external factors beyond the control of the administrator, may necessitate changes to, or the cessation, of the benchmark; and

| (e) | advise
  that any financial contracts or other financial instruments that reference the benchmark should be able to withstand, or otherwise address the possibility of changes to, or cessation of, the benchmark. |
| --- | --- |

(e)

advise
  that any financial contracts or other financial instruments that reference the benchmark should be able to withstand, or otherwise address the possibility of changes to, or cessation of, the benchmark.

2.   
  The benchmark statement shall contain at least:

| (a) | the definitions for all key terms relating to the benchmark; |
| --- | --- |

(a)

the definitions for all key terms relating to the benchmark;

| (b) | the rationale for adopting the benchmark methodology and procedures for the review and approval of the methodology; |
| --- | --- |

(b)

the rationale for adopting the benchmark methodology and procedures for the review and approval of the methodology;

| (c) | the criteria and procedures used to determine the benchmark, including a description of the input data, the priority given to different types of input data, minimum data needed to determine a benchmark, the use of any models or methods of extrapolation and any procedure for rebalancing the constituents of a benchmark's index; |
| --- | --- |

(c)

the criteria and procedures used to determine the benchmark, including a description of the input data, the priority given to different types of input data, minimum data needed to determine a benchmark, the use of any models or methods of extrapolation and any procedure for rebalancing the constituents of a benchmark's index;

| (d) | the controls and rules that govern any exercise of discretion or judgment by the administrator or any contributors, to ensure consistency in the use of such discretion or judgment; |
| --- | --- |

(d)

the controls and rules that govern any exercise of discretion or judgment by the administrator or any contributors, to ensure consistency in the use of such discretion or judgment;

| (e) | the procedures which govern benchmark determination in periods of stress, or periods where transaction data sources may be insufficient, inaccurate or unreliable and the potential limitations of the benchmark in such periods; |
| --- | --- |

(e)

the procedures which govern benchmark determination in periods of stress, or periods where transaction data sources may be insufficient, inaccurate or unreliable and the potential limitations of the benchmark in such periods;

| (f) | the procedures for dealing with errors in input data, or the benchmark determination, including when a re-determination of the benchmark will be required; and |
| --- | --- |

(f)

the procedures for dealing with errors in input data, or the benchmark determination, including when a re-determination of the benchmark will be required; and

| (g) | the identification of potential limitations of a benchmark, including its operation in illiquid or fragmented markets and the possible concentration of inputs. |
| --- | --- |

(g)

the identification of potential limitations of a benchmark, including its operation in illiquid or fragmented markets and the possible concentration of inputs.

▌

Article 17

Cessation of a benchmark

1.   An administrator shall publish
  , together with the benchmark statement referred to in Article 15,
  a procedure concerning the actions to be taken by the administrator in the event of changes to or the cessation of a benchmark
  or the cessation of the recognition of a benchmark pursuant to Article 21a or the endorsement pursuant to Article 21b. The procedure shall also be integrated into the code of conduct referred to in Article 9(1). The procedure may be drafted, where applicable, for families of benchmarks and shall be updated and published whenever a material change occurs
  .

2.   Supervised entities that
  use
  a benchmark shall produce
  and maintain
  robust written plans setting out the actions that they would take in the event that a benchmark materially changes or ceases to be produced.
  Where feasible and appropriate, such plans shall nominate one or several alternative benchmarks that might be referenced, indicating why such benchmarks would be suitable alternatives.
  The supervised entities shall provide the relevant competent authority with these plans
  upon
  request
  and where possible reflect them in the contractual relationship with clients
  .

Article 17a

Appropriateness of a benchmark

The administrator shall ensure the accuracy of the benchmark in relation to the description of the market or economic reality that the benchmark intends to measure in accordance with the benchmark statement requirements laid down in Article 15.

ESMA shall publish guidelines in accordance with Article 16 of Regulation (EU) No 1095/2010 six months after the entry into force of this Regulation setting out the definition of appropriateness in terms of acceptable levels of basis risk.

By December 2015, the Commission shall publish a report analysing existing practices with regard to managing basis risk in financial contracts, in relation to the use of benchmarks such as a interbank interest rate and a foreign exchange benchmark, and assessing if the conduct of business provisions laid down in Directive 2008/48/EC and Directive 2014/17/EU are sufficient to mitigate basis risk associated with benchmarks used in financial contracts.

▌

TITLE V

USE OF BENCHMARKS PROVIDED BY AUTHORISED
  OR REGISTERED
  ADMINISTRATORS OR BY ADMINISTRATORS FROM THIRD COUNTRIES

Article 19

Use of
  a benchmark

1.
     A supervised entity may use a benchmark
  or a combination of benchmarks
  in the Union as a reference in a financial instrument or financial contract
  if they are
  provided by an administrator authorised
  or registered
  in accordance with Article 23
  or 23a, respectively
  , or an administrator located in a third country
  pursuant to Article 20, 21a or 21b.

2.
     
  Where the object of a prospectus to be published under Directive 2003/71/EC or Directive 2009/65/EC is transferable securities or other investment that reference a benchmark, the issuer, offeror, or person asking for admission to trade on a regulated market shall ensure that the prospectus also includes clear and prominent information stating whether the benchmark has been registered or is provided by an administrator registered in the public register referred in Article 25a of this Regulation.

3.
     
  ESMA shall withdraw, or bring into line with paragraph 1 of this Article, paragraphs 49 to 62 of ESMA's Guidelines for competent authorities and UCITS management companies, Guidelines on ETFs and other UCITS issues

   (29).

Article 20

Equivalence

1.   Benchmarks provided by an administrator
  located
  in a third country may be used by supervised entities in the Union provided that the following conditions
  met, unless Article 21a or Article 21b applies
  :

| (a) | the Commission has adopted an equivalence decision in accordance with paragraph 2
  or 2a
  ; |
| --- | --- |

(a)

the Commission has adopted an equivalence decision in accordance with paragraph 2
  or 2a
  ;

| (b) | the administrator is authorised or registered in, and is subject to supervision in, that third country; |
| --- | --- |

(b)

the administrator is authorised or registered in, and is subject to supervision in, that third country;

| (c) | the administrator has notified ESMA of its consent that its actual or prospective benchmarks may be used by supervised entities in the Union▌; |
| --- | --- |

(c)

the administrator has notified ESMA of its consent that its actual or prospective benchmarks may be used by supervised entities in the Union▌;

| (d) | the administrator is duly registered under Article
  25a
  ; and |
| --- | --- |

(d)

the administrator is duly registered under Article
  25a
  ; and

| (e) | the cooperation arrangements referred to in paragraph 3 of this Article are operational. |
| --- | --- |

(e)

the cooperation arrangements referred to in paragraph 3 of this Article are operational.

2.   The Commission may adopt a decision stating that the legal framework and supervisory practice of a third country ensures that:

| (a) | administrators authorised or registered in that third country comply with binding requirements which are equivalent to the requirements resulting from this Regulation, in particular taking into account if the legal framework and supervisory practice of a third country ensures compliance with the IOSCO principles on financial benchmarks published on 17 July 2013
  and with the IOSCO Principles for Oil Price Reporting Agencies, published on 5 October 2012
  ; and |
| --- | --- |

(a)

administrators authorised or registered in that third country comply with binding requirements which are equivalent to the requirements resulting from this Regulation, in particular taking into account if the legal framework and supervisory practice of a third country ensures compliance with the IOSCO principles on financial benchmarks published on 17 July 2013
  and with the IOSCO Principles for Oil Price Reporting Agencies, published on 5 October 2012
  ; and

| (b) | the binding requirements are subject to effective supervision and enforcement on an on-going basis in that third country. |
| --- | --- |

(b)

the binding requirements are subject to effective supervision and enforcement on an on-going basis in that third country.

| (ba) | — | there is effective exchange of information with foreign tax authorities; |
| --- | --- | --- |

(ba)

—

there is effective exchange of information with foreign tax authorities;

| — | there is no lack of transparency in legislative, judicial or administrative provisions; |
| --- | --- |

—

there is no lack of transparency in legislative, judicial or administrative provisions;

| — | there is a requirement for a substantive local presence; |
| --- | --- |

—

there is a requirement for a substantive local presence;

| — | the third country does not act as an offshore financial centre; |
| --- | --- |

—

the third country does not act as an offshore financial centre;

| — | the third country does not provide for tax measures which entail no or nominal taxes or that no advantages are granted even without any real economic activity and substantial economic presence within the third country offering such tax advantages; |
| --- | --- |

—

the third country does not provide for tax measures which entail no or nominal taxes or that no advantages are granted even without any real economic activity and substantial economic presence within the third country offering such tax advantages;

| — | the third country is not listed as a Non-Cooperative Country and Territory by FATF; |
| --- | --- |

—

the third country is not listed as a Non-Cooperative Country and Territory by FATF;

| — | the third country fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements. |
| --- | --- |

—

the third country fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 38(2).

2a.
     
  Alternatively, the Commission may adopt a decision stating that specific rules or requirements in a third country with respect to individual and specific administrators or individual and specific benchmarks or families of benchmarks are equivalent to those of this Regulation and that those individual and specific administrators or individual and specific benchmarks or families of benchmarks may therefore be used by supervised entities in the Union.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 38(2).

3.   ESMA shall establish cooperation arrangements with the competent authorities of third countries whose legal
  frameworks
  and supervisory
  practices
  have been recognised as equivalent in accordance with paragraph 2
  or 2a
  . Such arrangements shall specify at least:

| (a) | the mechanism for the exchange of information between ESMA and the competent authorities of third countries concerned, including access to all
  relevant
  information regarding the administrator authorised in that third country that is requested by ESMA; |
| --- | --- |

(a)

the mechanism for the exchange of information between ESMA and the competent authorities of third countries concerned, including access to all
  relevant
  information regarding the administrator authorised in that third country that is requested by ESMA;

| (b) | the mechanism for prompt notification to ESMA where a third country competent authority deems that the administrator authorised in that third country that it is supervising is in breach of the conditions of its authorisation or other
  domestic
  legislation; |
| --- | --- |

(b)

the mechanism for prompt notification to ESMA where a third country competent authority deems that the administrator authorised in that third country that it is supervising is in breach of the conditions of its authorisation or other
  domestic
  legislation;

| (c) | the procedures concerning the coordination of supervisory activities ▌. |
| --- | --- |

(c)

the procedures concerning the coordination of supervisory activities ▌.

4.   ESMA shall develop draft regulatory technical standards to determine the minimum content of the cooperation arrangements referred to in paragraph 3 so as to ensure that the competent authorities and ESMA are able to exercise all their supervisory powers under this Regulation:

ESMA shall submit those draft regulatory technical standards to the Commission by [XXX].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010.

Article 21

Withdrawal of
  registration
  of third country administrators

▐

2.   ESMA shall withdraw the registration of an administrator referred to in
  point (d) of Article 20(1) where ESMA has well-founded reasons, based on documented evidence, that the administrator
  :

| (a) | ▌is acting in a manner which is clearly prejudicial to the interests of
  the
  users of its benchmarks or the orderly functioning of markets; or |
| --- | --- |

(a)

▌is acting in a manner which is clearly prejudicial to the interests of
  the
  users of its benchmarks or the orderly functioning of markets; or

| (b) | ▌has seriously infringed the national
  domestic
  legislation or other provisions applicable to it in the third country and on the basis of which the Commission has adopted the decision in concordance with Article 20(2)
  or (2a)
  . |
| --- | --- |

(b)

▌has seriously infringed the national
  domestic
  legislation or other provisions applicable to it in the third country and on the basis of which the Commission has adopted the decision in concordance with Article 20(2)
  or (2a)
  .

3.   ESMA shall take a decision under paragraph 2 only if the following conditions are fulfilled:

| (a) | ESMA has referred the matter to the competent authority of the third country and that competent authority has not taken the appropriate measures needed to protect investors and the proper functioning of the markets in the Union, or has failed to demonstrate that the administrator concerned complies with the requirements applicable to it in the third country; |
| --- | --- |

(a)

ESMA has referred the matter to the competent authority of the third country and that competent authority has not taken the appropriate measures needed to protect investors and the proper functioning of the markets in the Union, or has failed to demonstrate that the administrator concerned complies with the requirements applicable to it in the third country;

| (b) | ESMA has informed the competent authority of the third country of its intention to withdraw the registration of the administrator, at least 30 days before the withdrawal. |
| --- | --- |

(b)

ESMA has informed the competent authority of the third country of its intention to withdraw the registration of the administrator, at least 30 days before the withdrawal.

4.   ESMA shall inform the other competent authorities of any measure adopted in accordance with paragraph 2 without delay and shall publish its decision on its website.

Article 21a

Recognition of an administrator in a third country

1.
     
  Until such time as an equivalence decision in accordance with Article 20(2) is adopted, benchmarks provided by an administrator located in a third country may be used by supervised entities in the Union provided that the administrator acquires prior recognition by ESMA in accordance with this Article.

2.
     
  An administrator located in a third country intending to obtain prior recognition as referred to in paragraph 1 shall comply with all the requirements established in this Regulation but shall be exempt from Articles 11, 13a and 14. Where an administrator is able to demonstrate that a benchmark it provides is based on regulated data or is a commodity benchmark that is not based on submissions by contributors the majority of which are not supervised entities where the main business of the group is the provision of investment services within the meaning of Directive 2014/65/EU or banking activities under Directive 2013/36/EU, the exemptions for such benchmarks, as provided for in Articles 12a and 14a respectively, shall apply to the administrator.

3.
     
  An administrator located in a third country intending to obtain prior recognition as referred to in paragraph 1 shall also be able to do so by complying in full with all requirements established in the IOSCO principles for financial benchmarks, or where the administrator complies with the criteria laid down in Article 14a(1), the IOSCO principles for oil price reporting agencies . Such compliance shall be reviewed and certified by an independent external auditor at least every two years, and whenever a material change to the benchmark is made, and the audit reports shall be sent to ESMA and, upon request, made available to users.

4.
     
  An administrator located in a third country intending to obtain prior recognition as referred to in paragraph 1 shall have a representative established in the Union. The representative shall be a natural person domiciled in the Union or a legal person with its registered office in the Union. The representative shall be expressly designated by the administrator located in a third country to act on its behalf concerning all communication with the authorities including ESMA and relevant competent authorities and any other relevant person in the Union with regard to the administrator's obligations under this Regulation.

5.
     
  An administrator located in a third country intending to obtain prior recognition as referred to in paragraph 1 shall apply for recognition with ESMA. The applicant administrator shall provide all information, as set out in Article 23 or 23a, necessary to satisfy ESMA that it has established, at the time of recognition, all the necessary arrangements to meet the requirements referred to in paragraph 2 or 2a and shall indicate the list of its actual or prospective benchmarks which may be used in the Union and, where the administrator is supervised by a third-country authority, the competent authority responsible for its supervision in the third country.

Within [90] days of receiving the application referred to in the first subparagraph, ESMA, after consulting relevant competent authorities, shall verify that the conditions laid down in paragraphs 2 or 2a, 3 and 4 are fulfilled. ESMA may delegate this task to a relevant national competent authority.

If ESMA considers that this is not the case, it shall refuse the recognition request explaining the reasons for the refusal.

Without prejudice to the third subparagraph, no recognition shall be granted unless the following additional conditions are met:

| (i) | where the administrator located in a third country is supervised by a third country authority, an appropriate cooperation arrangement is in place between the relevant competent authority or ESMA and the third country authority of the administrator in order to ensure at least an efficient exchange of information; |
| --- | --- |

(i)

where the administrator located in a third country is supervised by a third country authority, an appropriate cooperation arrangement is in place between the relevant competent authority or ESMA and the third country authority of the administrator in order to ensure at least an efficient exchange of information;

| (ii) | the effective exercise by the competent authority or ESMA of its supervisory functions under this Regulation is not prevented by the laws, regulations or administrative provisions of the third country where the administrator is located. |
| --- | --- |

(ii)

the effective exercise by the competent authority or ESMA of its supervisory functions under this Regulation is not prevented by the laws, regulations or administrative provisions of the third country where the administrator is located.

6.
     
  Where an administrator located in a third country intends to obtain prior recognition through compliance with this Regulation as laid down in paragraph 2 of this Article, and where the administrator considers that a benchmark it provides may be entitled to the exemptions in Article 12a and 14a, it shall, without undue delay, notify ESMA thereof. It shall provide documentary evidence to support its assertion.

7.
     
  Where an administrator located in a third country considers that the cessation of a benchmark it provides would have a significant adverse impact on the integrity of markets, financial stability, consumers, the real economy, or the financing of households and corporations in one or more Member States, it may apply to ESMA for an exemption from one or more of the applicable requirements of this Regulation or of the relevant IOSCO principles, for a specific and limited period of time not exceeding 12 months. It shall provide documentary evidence to support its application.

ESMA shall consider the application within 30 days and inform the third country administrator whether it is exempt from one or more of the requirements as specified in its application and the length of time of the exemption.

ESMA may extend the exemption period upon its expiry by up to a further 12 months where there is good reason to do so

8.
     
  ESMA shall develop draft regulatory technical standards to specify further the recognition process, the form and content of the application referred to in paragraph 4, the presentation of the information required in paragraph 5 and any delegation of tasks and responsibilities to national competent authorities with respect to those paragraphs.

ESMA shall submit those draft regulatory technical standards to the Commission by [...].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010.

Article 21b

Endorsement

1.
     
  An administrator located in the Union and authorised in accordance with Article 23 or registered in accordance with Article 23a may apply to its competent authority to endorse a benchmark or a family of benchmarks provided in a third country for their use in the Union, provided that the following conditions are met:

| (a) | the endorsing administrator has verified and is able to demonstrate to its competent authority that the provision of the benchmark or family of benchmarks to be endorsed fulfils requirements which:










  (i) | are at least as stringent as the requirements set out in this Regulation; |
| --- | --- | --- |

(a)

the endorsing administrator has verified and is able to demonstrate to its competent authority that the provision of the benchmark or family of benchmarks to be endorsed fulfils requirements which:

(i)

are at least as stringent as the requirements set out in this Regulation;

| (ii) | ensure full compliance with the IOSCO Principles for Financial Benchmarks as reviewed and certified by an independent external auditor at least every two years or when a material change to the benchmark occurs; or |
| --- | --- |

(ii)

ensure full compliance with the IOSCO Principles for Financial Benchmarks as reviewed and certified by an independent external auditor at least every two years or when a material change to the benchmark occurs; or

| (iii) | ensure full compliance with the IOSCO Principles for Oil Price Reporting Agencies, as reviewed and certified by an independent external auditor at least every two years or when a material change to the benchmark occurs, where the benchmark to be endorsed meets the criteria laid down in Article 14a(1); |
| --- | --- |

(iii)

ensure full compliance with the IOSCO Principles for Oil Price Reporting Agencies, as reviewed and certified by an independent external auditor at least every two years or when a material change to the benchmark occurs, where the benchmark to be endorsed meets the criteria laid down in Article 14a(1);

| (b) | the endorsing administrator has the necessary expertise to monitor the provision of benchmark activities performed in a third country effectively and to manage the risks associated. |
| --- | --- |

(b)

the endorsing administrator has the necessary expertise to monitor the provision of benchmark activities performed in a third country effectively and to manage the risks associated.

2.
     
  The applicant administrator shall provide all information necessary to satisfy the competent authority that, at the time of application, all the conditions referred to in paragraph 1 are fulfilled, including the audit reports required under points (a) (ii) and (iii) of that paragraph.

3.
     
  Within 90 days of receipt of the application, the relevant competent authority shall examine the application for an endorsement and adopt a decision to approve or refuse it. The relevant competent authority shall notify ESMA of any benchmarks or families of benchmarks that have been approved for endorsement and the endorsing administrator.

4.
     
  A benchmark or family of benchmarks endorsed shall be considered to be a benchmark or family of benchmarks provided by the endorsing administrator.

5.
     
  The administrator that has endorsed a benchmark or family of benchmarks provided in a third country shall remain responsible for ensuring the endorsed benchmark or family of benchmarks fulfil the conditions set out in paragraph 1.

6.
     
  Where the competent authority of the endorsing administrator has well-founded reasons to consider that the conditions laid down under paragraph 1 are no longer fulfilled it shall have the power to withdraw its approval of the endorsement and shall inform ESMA. Article 17 shall apply in the event of a cessation of the endorsement.

TITLE VI

AUTHORISATION AND SUPERVISION OF ADMINISTRATORS

Chapter 1

Authorisation

▐

Article 23

Authorisation procedure for a critical benchmark

1.   
  A natural or legal person located in the Union that intends to act as an
  administrator
  of at least one critical benchmark
  shall
  apply
  to the competent authority
  designated under Article 29 for
  the Member State in which
  that person
  is located.

2.   The application for authorisation in accordance with paragraph 1 shall be made▌within 30 ▌ days of any agreement entered into by a supervised entity to use an index provided by that administrator as a reference to a financial instrument or financial contract ▌.

2a.
     
  Once a benchmark has been defined as critical, be this ’national’ or ’European’ in nature, the relevant competent authority shall be responsible for granting authorisation for the provision of that benchmark in line with its new legal status, after verifying that all the requirements have been fulfilled.

3.   The applicant administrator shall provide all information necessary to satisfy the competent authority that
  it
  has established, at the time of authorisation, all the necessary arrangements to meet the requirements laid down in this Regulation.
  It shall also provide the necessary data to calculate the value referred to in Article 13(1) or estimate thereof, where available, for each benchmark.

4.   Within
  20
  days of receipt of the application, the relevant competent authority shall assess whether the application is complete and shall notify the applicant accordingly. If the application is incomplete, then the applicant shall submit the additional information required by the relevant competent authority.

5.   ▌The relevant competent authority shall examine the application
  for an authorisation
  and adopt a decision to authorise or refuse
  within 60 days of receipt of a complete application
  .

Within five ▌days of the adoption of a decision whether to authorise or refuse authorisation, the competent authority shall notify ▌the
  applicant
  administrator concerned. Where the competent authority refuses to authorise the applicant administrator, it shall give reasons for its decision.

5a.
     
  If the relevant competent authority decides to refuse to grant authorisation for the provision of a critical benchmark which was already being provided without that status, the relevant competent authority may issue a temporary permit for a period of time not exceeding six months, during which the benchmark may continue to be provided on the basis of the previous model pending fulfilment of the relevant requirements for its authorisation as a critical benchmark.

The relevant competent authority may extend the permit for an additional period of time not exceeding six months.

5b.
     
  Should the administrator and/or the contributors fail to fulfil the requirements for continuing to provide a benchmark defined as critical by the end of that period, the provision of the benchmark will cease in accordance with Article 17.

6.   The competent authority shall notify ESMA of any decision to authorise an applicant administrator ▌within
  10 days
  .

7.   The Commission shall be empowered to adopt delegated acts in accordance with Article
  37
  concerning measures to further specify information to be provided in the application for authorisation
  and in the application for registration,
  taking into account the principle of proportionality and the costs to the
  applicants
  and competent authorities.

Article 23a

Registration process for a non-critical benchmark

1.
     
  A natural or legal person located in the Union that intends to act exclusively as an administrator of non-critical benchmarks shall apply for registration to the competent authority designated under Article 29 for the Member State in which that person is located.

2.
     
  A registered administrator shall comply at all times with the conditions laid down in this Regulation and shall notify the competent authority of any material changes thereof.

3.
     
  An application in accordance with paragraph 1 shall be made within 30 days of any agreement entered into by a supervised entity to use an index provided by the person as a reference to a financial instrument or financial contract or to measure the performance of an investment fund.

4.
     
  The applicant administrator shall provide:

| (a) | documentation to satisfy the competent authority that it meets the requirements laid down in Articles 5(3a), 5c, 6, where applicable, 7b and 15; and |
| --- | --- |

(a)

documentation to satisfy the competent authority that it meets the requirements laid down in Articles 5(3a), 5c, 6, where applicable, 7b and 15; and

| (b) | the total reference value, or estimate thereof, where available, of each benchmark. |
| --- | --- |

(b)

the total reference value, or estimate thereof, where available, of each benchmark.

5.
     
  Within 15 days of receipt of the application, the relevant competent authority shall assess whether the application is complete and shall notify the applicant accordingly. If the application is incomplete, the applicant shall submit the additional information required by the relevant competent authority.

6.
     
  The relevant competent authority shall register the applicant within 15 days of receipt of a complete application for registration.

7.
     
  Where the relevant competent authority believes a benchmark should be categorised as critical pursuant Article 13(1), it shall notify ESMA and the administrator within 30 days of receipt of the complete application.

8.
     
  Where the registering competent authority believes a benchmark should be categorised as critical pursuant Article 13(2a) or 13(2c), it shall notify ESMA and the administrator within 30 days after receipt of the complete application, and submit to ESMA its assessment pursuant to Article 13(2a) or 13(2c).

9.
     
  Where a registered administrator’s benchmark is categorised as critical, the administrator shall apply for authorisation pursuant to Article 23 within 90 days following the receipt of the notification laid down in Article 13(2b) or the opinion laid down Article 13(2 g).

Article 24

Withdrawal or suspension of authorisation
  or registration

1.   The competent authority shall withdraw or suspend the authorisation
  or registration
  of an administrator where the administrator:

| (a) | expressly renounces the authorisation or has provided no benchmarks for the preceding twelve months; |
| --- | --- |

(a)

expressly renounces the authorisation or has provided no benchmarks for the preceding twelve months;

| (b) | has obtained the authorisation
  or registration
  by making false statements or by any other irregular means; |
| --- | --- |

(b)

has obtained the authorisation
  or registration
  by making false statements or by any other irregular means;

| (c) | no longer meets the conditions under which it was authorised
  or registered
  ; or |
| --- | --- |

(c)

no longer meets the conditions under which it was authorised
  or registered
  ; or

| (d) | has seriously or repeatedly infringed the provisions of this Regulation. |
| --- | --- |

(d)

has seriously or repeatedly infringed the provisions of this Regulation.

2.   The competent authority shall notify ESMA of its decision within
  seven
  days.

2a.
     
  Following the adoption of a decision to suspend the authorisation or registration of an administrator, and where cessation of the benchmark would result in a force majeure event, or frustrate or otherwise breach the terms of any financial contract or financial instrument which references that benchmark, the provision of the benchmark may be permitted by the relevant competent authority of the Member State where the administrator is located until the decision of suspension has been withdrawn. During such period of time, the use of such benchmark by supervised entities shall be permitted only for financial instruments and financial contracts that already reference the benchmark. No new financial contracts or financial instruments shall reference the benchmark.

2b.
     
  Following the adoption of a decision to withdraw the authorisation or registration of an administrator, Article 17(2) shall apply.

Chapter 2

Notification of benchmarks

Article 25a

Administrators’ register and initial use of a benchmark

1.
     
  ESMA shall establish and maintain a public register that contains the following information:

| (a) | the identities of the administrators authorised or registered under the provisions of Articles 23 and 23a, as well as the competent authority responsible for the supervision thereof; |
| --- | --- |

(a)

the identities of the administrators authorised or registered under the provisions of Articles 23 and 23a, as well as the competent authority responsible for the supervision thereof;

| (b) | the identities of the administrators that have notified ESMA of their consent referred to in Article 20(1)(c) and the third country competent authority responsible for the supervision thereof; |
| --- | --- |

(b)

the identities of the administrators that have notified ESMA of their consent referred to in Article 20(1)(c) and the third country competent authority responsible for the supervision thereof;

| (c) | the identities of the administrators that acquired recognition in accordance with Article 21a and the third country competent authority responsible for the supervision thereof; |
| --- | --- |

(c)

the identities of the administrators that acquired recognition in accordance with Article 21a and the third country competent authority responsible for the supervision thereof;

| (d) | the benchmarks that are endorsed in accordance with the procedure laid down in Article 21b and the identities of the endorsing administrators. |
| --- | --- |

(d)

the benchmarks that are endorsed in accordance with the procedure laid down in Article 21b and the identities of the endorsing administrators.

2.
     
  Before an index is used by a supervised entity as a benchmark in the Union, the entity shall verify that the provider of the relevant index is referenced on the website of ESMA as an authorised, registered or recognised administrator in accordance with this Regulation.

Chapter 3

Supervisory cooperation

Article 26

Delegation of tasks between competent authorities

1.   In accordance with Article 28 of Regulation (EU) No 1095/2010 a competent authority may delegate its tasks under this Regulation to the competent authority of another Member State
  with its prior written consent.
  The competent authorities shall notify ESMA of any proposed delegation 60 days prior to such delegation taking effect.

2.   A competent authority may delegate ▌its tasks under this Regulation to ESMA subject to the agreement of ESMA.▐

3.   ESMA shall notify the Member States of a proposed delegation within seven days. ESMA shall publish details of any agreed delegation within
  seven
  days of notification.

Article 26a

Breach of Union law by national competent authorities

1.
     
  Where a national competent authority has not applied this Regulation or has applied it in a way which appears to be a breach of Union law, ESMA may use its powers under Article 17 of Regulation (EU) No 1095/2010 in accordance with the procedures laid down in that Article and may, for the purposes of Article 17(6) of Regulation (EU) No 1095/2010, adopt individual decisions addressed to benchmark administrators supervised by that national competent authority and to contributors to a benchmark supervised by that national competent authority where those contributors are supervised entities.

2.
     
  Where the relevant benchmark is a critical benchmark, ESMA shall ensure cooperation with the college of competent authorities in accordance with the procedure laid down Article 34.

Article 27

Disclosure of information from another Member State

1.   The competent authority may disclose information received from another competent authority only if:

| (a) | it has obtained the written agreement of that competent authority and the information is disclosed only for the purposes for which that competent authority gave its agreement; or |
| --- | --- |

(a)

it has obtained the written agreement of that competent authority and the information is disclosed only for the purposes for which that competent authority gave its agreement; or

| (b) | ▌such disclosure is necessary for legal proceedings. |
| --- | --- |

(b)

▌such disclosure is necessary for legal proceedings.

Article 28

Cooperation
  on
  investigations

1.   The relevant competent authority may request the assistance of another competent authority with regard to on-site inspections or investigations.
  The competent authority receiving the request shall cooperate to the extent possible and appropriate.

2.   The competent authority making the request referred to in paragraph 1 shall inform ESMA thereof. In the event of an investigation or inspection with cross-border effect, the competent authorities may request ESMA to coordinate the on-site inspection or investigation.

3.   Where a competent authority receives a request from another competent authority to carry out an on-site inspection or an investigation, it may:

| (a) | carry out the on-site inspection or investigation itself; |
| --- | --- |

(a)

carry out the on-site inspection or investigation itself;

| (b) | allow the competent authority which submitted the request to participate in an on-site inspection or investigation; |
| --- | --- |

(b)

allow the competent authority which submitted the request to participate in an on-site inspection or investigation;

| (c) | appoint auditors or experts to
  support or
  carry out the on-site inspection or investigation. |
| --- | --- |

(c)

appoint auditors or experts to
  support or
  carry out the on-site inspection or investigation.

Chapter 4

Role of Competent Authorities

Article 29

Competent authorities

1.   For administrators and supervised contributors, each Member State shall designate the relevant competent authority responsible for carrying out the duties resulting from this Regulation and shall inform the Commission and ESMA thereof.

2.   Where a Member State designates more than one competent authority, it shall clearly determine the respective roles and shall designate a single authority to be responsible for coordinating cooperation and the exchange of information with the Commission, ESMA and other Member States’ competent authorities.

3.   ESMA shall publish on its website a list of the competent authorities designated in accordance with paragraph 1
  of this Article and pursuant to point (a) of Article 25a(1)
  .

Article 30

Powers of competent authorities

1.   In order to fulfil their duties under this Regulation, competent authorities shall have in conformity with national law, at least the following supervisory and investigatory powers:

| (a) | have access to any
  relevant
  document and other data in any form, and to receive or take a copy thereof; |
| --- | --- |

(a)

have access to any
  relevant
  document and other data in any form, and to receive or take a copy thereof;

| (b) | require or demand information from any person ▌involved in the
  provision of, and contribution to, a benchmark, including any service provider pursuant to Article 6(3a),
  as well as their principals, and if necessary, ▌summon and question any such person with a view to
  obtaining
  information; |
| --- | --- |

(b)

require or demand information from any person ▌involved in the
  provision of, and contribution to, a benchmark, including any service provider pursuant to Article 6(3a),
  as well as their principals, and if necessary, ▌summon and question any such person with a view to
  obtaining
  information;

| (c) | in relation to
  commodity
  benchmarks ▌, request information from
  contributors
  on related spot markets according
  , where applicable,
  to
  standardised
  formats
  and
  reports on transactions, and have direct access to traders' systems; |
| --- | --- |

(c)

in relation to
  commodity
  benchmarks ▌, request information from
  contributors
  on related spot markets according
  , where applicable,
  to
  standardised
  formats
  and
  reports on transactions, and have direct access to traders' systems;

| (d) | carry out on-site inspections or investigations, at sites other than the private residences of natural persons; |
| --- | --- |

(d)

carry out on-site inspections or investigations, at sites other than the private residences of natural persons;

| (e) | enter premises of natural and legal persons in order to seize documents and other data in any form, where a reasonable suspicion exists that documents and other data related to the subject-matter of the inspection or investigation may be relevant to prove a breach of this Regulation. Where prior authorisation is needed from the judicial authority of the Member State concerned, in accordance with national law, such power shall only be used after having obtained that prior authorisation; |
| --- | --- |

(e)

enter premises of natural and legal persons in order to seize documents and other data in any form, where a reasonable suspicion exists that documents and other data related to the subject-matter of the inspection or investigation may be relevant to prove a breach of this Regulation. Where prior authorisation is needed from the judicial authority of the Member State concerned, in accordance with national law, such power shall only be used after having obtained that prior authorisation;

| (f) | require existing recordings of telephone conversations, electronic communications or other data traffic records held by supervised entities; |
| --- | --- |

(f)

require existing recordings of telephone conversations, electronic communications or other data traffic records held by supervised entities;

| (g) | request the freezing or sequestration of assets or both; |
| --- | --- |

(g)

request the freezing or sequestration of assets or both;

▌

| (i) | require temporary cessation of any practice that the competent authority considers contrary to this Regulation; |
| --- | --- |

(i)

require temporary cessation of any practice that the competent authority considers contrary to this Regulation;

| (j) | impose a temporary prohibition on the exercise of professional activity; |
| --- | --- |

(j)

impose a temporary prohibition on the exercise of professional activity;

| (k) | take all necessary measures to ensure that the public is correctly informed about the provision of a benchmark, including by requiring a person who has published or disseminated the benchmark to publish a corrective statement about past contributions to or figures of the benchmark; |
| --- | --- |

(k)

take all necessary measures to ensure that the public is correctly informed about the provision of a benchmark, including by requiring a person who has published or disseminated the benchmark to publish a corrective statement about past contributions to or figures of the benchmark;

| (ka) | review and require modifications of the compliance statement. |
| --- | --- |

(ka)

review and require modifications of the compliance statement.

2.   The competent authorities shall exercise their functions and powers, referred to in paragraph 1,
  and the powers to impose sanctions referred to in Article 31, in accordance with their national legal frameworks,
  in any of the following ways:

| (a) | directly; |
| --- | --- |

(a)

directly;

| (b) | in collaboration with other authorities or with market undertakings; |
| --- | --- |

(b)

in collaboration with other authorities or with market undertakings;

| (c) | under their responsibility by delegation to such authorities or to market undertakings; |
| --- | --- |

(c)

under their responsibility by delegation to such authorities or to market undertakings;

| (d) | by application to the competent judicial authorities. |
| --- | --- |

(d)

by application to the competent judicial authorities.

For the exercise of those powers, competent authorities shall have in place adequate and effective safeguards in regard to the right of defence and fundamental rights.

3.   Member States shall ensure that appropriate measures are in place so that competent authorities have all the supervisory and investigatory powers that are necessary to fulfil their duties.

4.   A person shall not be considered in breach of any restriction on disclosure of information posed by a contract or by any legislative, regulatory or administrative provision when making information available in accordance with paragraph 2.

Article 31

Administrative measures and sanctions

1.   Without prejudice to the supervisory powers of competent authorities in accordance with Article 34, Member States shall, in conformity with national law, provide for competent authorities to have the power to take appropriate administrative measures and impose administrative measures and sanctions at least for:

| (a) | the
  infringements
  of Articles 5,
  5a, 5b, 5c, 5d,
  6, 7,
  7a, 7b,
  8, 9, ▌11, 14, 15, 17, ▌19, ▌23
  and 23a
  of this Regulation where they are apply; and |
| --- | --- |

(a)

the
  infringements
  of Articles 5,
  5a, 5b, 5c, 5d,
  6, 7,
  7a, 7b,
  8, 9, ▌11, 14, 15, 17, ▌19, ▌23
  and 23a
  of this Regulation where they are apply; and

| (b) | failure to cooperate or comply in an investigation or with an inspection or request covered by Article 30. |
| --- | --- |

(b)

failure to cooperate or comply in an investigation or with an inspection or request covered by Article 30.

2.   In
  the event
  of
  an infringement
  referred to in paragraph 1, Member States shall, in conformity with national law, confer on competent authorities the power to apply at least the following administrative measures and sanctions:

| (a) | an order requiring the
  administrator or supervised entity
  responsible for the
  infringement
  to cease the conduct and to desist from repeating that conduct; |
| --- | --- |

(a)

an order requiring the
  administrator or supervised entity
  responsible for the
  infringement
  to cease the conduct and to desist from repeating that conduct;

| (b) | the disgorgement of the profits gained or losses avoided because of the
  infringement
  where those can be determined; |
| --- | --- |

(b)

the disgorgement of the profits gained or losses avoided because of the
  infringement
  where those can be determined;

| (c) | a public warning which indicates the
  administrator or supervised entity
  responsible and the nature of the
  infringement
  ; |
| --- | --- |

(c)

a public warning which indicates the
  administrator or supervised entity
  responsible and the nature of the
  infringement
  ;

| (d) | withdrawal or suspension of the authorisation of
  an administrator
  ; |
| --- | --- |

(d)

withdrawal or suspension of the authorisation of
  an administrator
  ;

| (e) | a temporary ban prohibiting any natural person, who is held responsible for such
  infringement
  , from exercising management functions in administrators or contributors; |
| --- | --- |

(e)

a temporary ban prohibiting any natural person, who is held responsible for such
  infringement
  , from exercising management functions in administrators or contributors;

| (f) | the imposition of maximum administrative pecuniary sanctions of at least three times the amount of the profits gained or losses avoided because of the
  infringement
  where those can be determined; or






  (1) | in respect of a natural person maximum administrative pecuniary sanctions of at least:






  (i) | for
  infringements
  of Articles
  5
  ,
  5a, 5b, 5c, 5d,
  6,
  7
  ,
  7a, 7b,
  8, 9, ▌11,
  12a(2),
  14, 15, ▌17, 18, 19▌ and 23, EUR 500 000 or in the Member States where the Euro is not the official currency, the corresponding value in the national currency on the date of entry
  into
  force of this Regulation; or |
| --- | --- | --- | --- |

(f)

the imposition of maximum administrative pecuniary sanctions of at least three times the amount of the profits gained or losses avoided because of the
  infringement
  where those can be determined; or

(1)

in respect of a natural person maximum administrative pecuniary sanctions of at least:

(i)

for
  infringements
  of Articles
  5
  ,
  5a, 5b, 5c, 5d,
  6,
  7
  ,
  7a, 7b,
  8, 9, ▌11,
  12a(2),
  14, 15, ▌17, 18, 19▌ and 23, EUR 500 000 or in the Member States where the Euro is not the official currency, the corresponding value in the national currency on the date of entry
  into
  force of this Regulation; or

| (ii) | for
  infringements
  of point (b)▌ of
  Article
  7(1)
  or of Article 7(4)
  EUR 100 000 or in the Member States where the Euro is not the official currency, the corresponding value in the national currency on the date of entry
  into
  force of this Regulation; |
| --- | --- |

(ii)

for
  infringements
  of point (b)▌ of
  Article
  7(1)
  or of Article 7(4)
  EUR 100 000 or in the Member States where the Euro is not the official currency, the corresponding value in the national currency on the date of entry
  into
  force of this Regulation;

| (2) | in respect of a legal person up to maximum administrative pecuniary sanctions of at least:






  (i) | for
  infringements
  of Articles
  5
  ,
  5a, 5b, 5c, 5d,
  6,
  7
  ,
  7a, 7b,
  8, 9, ▌11, 14, 15, ▌17, 18, 19▌ and 23, whichever is the higher of EUR 1 000 000 or 10 % of its total annual turnover according to the last available accounts approved by the management body. Where the legal person is a parent undertaking or a subsidiary of a parent undertaking which has to prepare consolidated financial accounts according to Directive 2013/34/EU, the relevant total annual turnover shall be the total annual turnover or the corresponding type of income according to Directive 86/635/EEC for banks and Directive 91/674/EEC for insurance companies according to the last available consolidated accounts approved by the management body of the ultimate parent undertaking or if the person is an association, 10 % of the aggregate turnovers of its members; or |
| --- | --- | --- |

(2)

in respect of a legal person up to maximum administrative pecuniary sanctions of at least:

(i)

for
  infringements
  of Articles
  5
  ,
  5a, 5b, 5c, 5d,
  6,
  7
  ,
  7a, 7b,
  8, 9, ▌11, 14, 15, ▌17, 18, 19▌ and 23, whichever is the higher of EUR 1 000 000 or 10 % of its total annual turnover according to the last available accounts approved by the management body. Where the legal person is a parent undertaking or a subsidiary of a parent undertaking which has to prepare consolidated financial accounts according to Directive 2013/34/EU, the relevant total annual turnover shall be the total annual turnover or the corresponding type of income according to Directive 86/635/EEC for banks and Directive 91/674/EEC for insurance companies according to the last available consolidated accounts approved by the management body of the ultimate parent undertaking or if the person is an association, 10 % of the aggregate turnovers of its members; or

| (ii) | for
  infringements
  of points (b) and (c) of
  Article 7
  (1), whichever is the higher of EUR 250 000 or 2 % of its total annual turnover according to the last available accounts approved by the management body; where the legal person is a parent undertaking or a subsidiary of a parent undertaking which has to prepare consolidated financial accounts according to Directive 2013/34/EU, the relevant total annual turnover shall be the total annual turnover or the corresponding type of income according to Directive 86/635/EEC for banks and Directive 91/674/EEC for insurance companies according to the last available consolidated accounts approved by the management body of the ultimate parent undertaking or if the person is an association, 10 % of the aggregate turnovers of its members. |
| --- | --- |

(ii)

for
  infringements
  of points (b) and (c) of
  Article 7
  (1), whichever is the higher of EUR 250 000 or 2 % of its total annual turnover according to the last available accounts approved by the management body; where the legal person is a parent undertaking or a subsidiary of a parent undertaking which has to prepare consolidated financial accounts according to Directive 2013/34/EU, the relevant total annual turnover shall be the total annual turnover or the corresponding type of income according to Directive 86/635/EEC for banks and Directive 91/674/EEC for insurance companies according to the last available consolidated accounts approved by the management body of the ultimate parent undertaking or if the person is an association, 10 % of the aggregate turnovers of its members.

3.   By [12 months after entry into force of this Regulation] Member States shall notify the rules regarding paragraphs 1 and 2 to the Commission and ESMA.

Member States may decide not to lay down rules for administrative sanctions for infringements which are subject to criminal sanctions under their national law. In that case, Member States shall communicate to the Commission and ESMA the relevant criminal law provisions along with the notification referred to in the first subparagraph.

They shall notify the Commission and ESMA without delay of any subsequent amendment thereto.

4.   Member States may provide competent authorities under national law to have other sanctioning powers in addition to those referred to in paragraph 1 and may provide for higher levels of sanctions than those established in that paragraph.

Article 32

Exercise of supervisory and sanctioning powers
  and obligation to cooperate

1.   Member States shall ensure that, when determining the type, level
  and proportionality
  of administrative sanctions, competent authorities take into account all relevant circumstances, including where appropriate:

| (a) | the gravity and duration of the
  infringement
  ; |
| --- | --- |

(a)

the gravity and duration of the
  infringement
  ;

| (aa) | the criticality of the benchmark to financial stability and the real economy; |
| --- | --- |

(aa)

the criticality of the benchmark to financial stability and the real economy;

| (b) | the degree of responsibility of the responsible person; |
| --- | --- |

(b)

the degree of responsibility of the responsible person;

| (c) | ▌the total turnover of the responsible legal person or the annual income of the responsible natural person; |
| --- | --- |

(c)

▌the total turnover of the responsible legal person or the annual income of the responsible natural person;

| (d) | the level of the profits gained or losses avoided by the responsible person, insofar as they can be determined; |
| --- | --- |

(d)

the level of the profits gained or losses avoided by the responsible person, insofar as they can be determined;

| (e) | the level of cooperation of the responsible person with the competent authority, without prejudice to the need to ensure disgorgement of profits gained or losses avoided by that person; |
| --- | --- |

(e)

the level of cooperation of the responsible person with the competent authority, without prejudice to the need to ensure disgorgement of profits gained or losses avoided by that person;

| (f) | previous breaches by the person concerned; |
| --- | --- |

(f)

previous breaches by the person concerned;

| (g) | measures taken, after the breach, by a responsible person to prevent the repetition of the breach. |
| --- | --- |

(g)

measures taken, after the breach, by a responsible person to prevent the repetition of the breach.

2.   In the exercise of their sanctioning powers under circumstances defined in Article 31 competent authorities shall cooperate closely to ensure that the supervisory and investigative powers and administrative sanctions produce the desired results of this Regulation. They shall also coordinate their action in order to avoid possible duplication and overlap when applying supervisory and investigative powers and administrative sanctions and fines to cross border cases.

2a.
     
  Where Member States have chosen, in accordance with Article 31, to lay down criminal sanctions for infringements of the provisions referred to in that Article, they shall ensure that appropriate measures are in place so that competent authorities have all the necessary powers to liaise with judicial authorities within their jurisdiction to receive specific information relating to criminal investigations or proceedings commenced for possible infringements of this Regulation and provide the same to other competent authorities and ESMA to fulfil their obligation to cooperate with each other and ESMA for the purposes of this Regulation.

2b.
     
  Competent authorities shall provide assistance to competent authorities of other Member States. In particular, they shall exchange information and cooperate in any investigation or supervisory activities. Competent authorities may also cooperate with competent authorities of other Member States with respect to facilitating the recovery of fines.

Article 33

Publication of decisions

1.   A decision imposing an administrative sanction or measure for
  infringements
  of this Regulation shall be published by competent authorities on their official website immediately after the person sanctioned is informed of that decision. The publication shall include at least information on the type and nature of the
  infringement
  and the identity of the persons responsible. This obligation does not apply to decisions imposing measures that are of an investigatory nature.

2.   Where the publication of the identity of the legal persons or personal data of natural persons is considered by the competent authority to be disproportionate following a case-by-case assessment conducted on the proportionality of the publication of such data, or where publication jeopardises the stability of financial markets or an on-going investigation, competent authorities shall either:

| (a) | delay the publication of the decision to impose a sanction or a measure until the moment where the reasons for non-publication cease to exist; |
| --- | --- |

(a)

delay the publication of the decision to impose a sanction or a measure until the moment where the reasons for non-publication cease to exist;

| (b) | publish the decision to impose a sanction or a measure on an anonymous basis in a manner which is in conformity with national law, if such anonymous publication ensures an effective protection of the personal data concerned; In the case of a decision to publish a sanction or measure on an anonymous basis the publication of the relevant data may be postponed for a reasonable period of time if it is foreseen that within that period the reasons for anonymous publication shall cease to exist; |
| --- | --- |

(b)

publish the decision to impose a sanction or a measure on an anonymous basis in a manner which is in conformity with national law, if such anonymous publication ensures an effective protection of the personal data concerned; In the case of a decision to publish a sanction or measure on an anonymous basis the publication of the relevant data may be postponed for a reasonable period of time if it is foreseen that within that period the reasons for anonymous publication shall cease to exist;

| (c) | not publish the decision to impose a sanction or measure at all in the event that the options set out in (a) and (b) above are considered insufficient to ensure:







  (i) | that the stability of financial markets would not be put in jeopardy; or |
| --- | --- | --- |

(c)

not publish the decision to impose a sanction or measure at all in the event that the options set out in (a) and (b) above are considered insufficient to ensure:

(i)

that the stability of financial markets would not be put in jeopardy; or

| (ii) | the proportionality of the publication of such decisions with regard to measures which are deemed to be of a minor nature. |
| --- | --- |

(ii)

the proportionality of the publication of such decisions with regard to measures which are deemed to be of a minor nature.

3.   Where the decision to impose a sanction or measure is subject to an appeal before the relevant judicial or other authorities, competent authorities shall also publish, immediately, on their official website such information and any subsequent information on the outcome of such appeal. Moreover, any decision annulling a previous decision to impose a sanction or a measure shall also be published.

4.   Competent authorities shall ensure that any publication, in accordance with this Article, shall remain on their official website for a period of at least five years after its publication. Personal data contained in the publication shall only be kept on the official website of the competent authority for the period which is necessary in accordance with the applicable data protection rules.

4a.
     
  Member States shall annually provide ESMA with aggregated information regarding all sanctions and measures imposed pursuant to Article 31. That obligation does not apply to measures of an investigatory nature. ESMA shall publish that information in an annual report.

Where Member States have chosen, in accordance with Article 31, to lay down criminal sanctions for infringements of the provisions referred to in that Article, their competent authorities shall annually provide ESMA with anonymised and aggregated data regarding all criminal investigations undertaken and criminal sanctions imposed. ESMA shall publish data on criminal sanctions imposed in an annual report.

Article 34

College
  of competent authorities

1.   Within 30 ▌ days from the
  inclusion of
  a benchmark
  in the list of
  critical
  benchmarks pursuant to Article 25a, with the exception of critical benchmarks that are national in nature as laid down in point 21 of Article 3(1)
  , the
  relevant
  competent authority shall establish a college of competent authorities.

2.   The college shall comprise the competent authority of the administrator, ESMA, and the competent authorities of the
  major
  contributors.

3.   Competent authorities of other Member States shall have the right to be member of the college where, if that ▌benchmark were to cease to be provided, it would have a significant adverse impact on the financial stability, or the orderly functioning of markets, or consumers, or the real economy of those Member States.

Where a competent authority intends to become a member of a college pursuant to the first subparagraph, it shall submit a request to the competent authority of the administrator containing evidence that the requirements of that provision are fulfilled. The relevant competent authority of the administrator shall consider the request and notify the requesting authority within
  30
  days of receipt of the request whether or not it considers those requirements to be fulfilled. Where it considers those requirements not to be fulfilled, the requesting authority may refer the matter to ESMA in accordance with paragraph 10.

4.   ESMA shall contribute to promoting and monitoring the efficient, effective and consistent functioning of colleges of supervisors referred to in this Article in accordance with Article 21 of Regulation (EU) No 1095/2010. To that end, ESMA shall participate as appropriate and shall be considered to be a competent authority for that purpose.

5.   
  ESMA
  shall chair the meetings of the college, coordinate the actions of the college and ensure efficient exchange of information among members of the college.

6.   The competent authority of the administrator shall establish written arrangements within the framework of the college regarding the following matters:

| (a) | information to be exchanged between competent authorities; |
| --- | --- |

(a)

information to be exchanged between competent authorities;

| (b) | the decision-making process between the competent authorities; |
| --- | --- |

(b)

the decision-making process between the competent authorities;

| (c) | cases in which the competent authorities must consult each other; |
| --- | --- |

(c)

cases in which the competent authorities must consult each other;

| (d) | the assistance to be provided under Article
  14(5a)
  in the enforcement of the measures referred to in Article
  14(3)
  . |
| --- | --- |

(d)

the assistance to be provided under Article
  14(5a)
  in the enforcement of the measures referred to in Article
  14(3)
  .

Where the administrator provides more than one benchmark,
  ESMA
  may establish a single college in respect of all the benchmarks provided by that administrator.

7.   In the absence of agreement concerning the arrangements under paragraph 6, any members of the college, other than ESMA, may refer the matter to ESMA. The competent authority of the administrator shall give due consideration to any advice provided by ESMA concerning the written coordination arrangements before agreeing their final text. The written coordination arrangements shall be set out in a single document containing full reasons for any significant deviation from the advice of ESMA. The competent authority of the administrator shall transmit the written coordination arrangements to the members of the college and to ESMA.

8.   Before taking any measures referred to
  in
  Article ▌24 and ▌
  , where applicable, Articles 14 and 23,
  the competent authority of the administrator shall consult the members of the college. The members of the college shall do everything reasonable within their power to reach an agreement
  within the timeframe specified in the written arrangements referred to in paragraph 6
  .
  A mediation mechanism shall be established to assist in finding a common view among the competent authorities in the event of any disagreement.

9.   In the absence of agreement between the members of the college ▌competent authorities other than ESMA may refer to ESMA any of the following situations:

| (a) | where a competent authority has not communicated essential information; |
| --- | --- |

(a)

where a competent authority has not communicated essential information;

| (b) | where, following a request made under paragraph 3, the competent authority of the administrator has notified the requesting authority that the requirements of that paragraph are not fulfilled or where it has not acted upon such request within a reasonable time; |
| --- | --- |

(b)

where, following a request made under paragraph 3, the competent authority of the administrator has notified the requesting authority that the requirements of that paragraph are not fulfilled or where it has not acted upon such request within a reasonable time;

| (c) | where the competent authorities have failed to agree the matters set out in paragraph 6; |
| --- | --- |

(c)

where the competent authorities have failed to agree the matters set out in paragraph 6;

| (d) | ▌where there is a disagreement with the measure taken in accordance with Articles ▌23
  and
  24▌. |
| --- | --- |

(d)

▌where there is a disagreement with the measure taken in accordance with Articles ▌23
  and
  24▌.

Where, 20 days after the referral to ESMA provided for in the first subparagraph, the issue is not settled, the competent authority of the administrator shall take the final decision and provide a detailed explanation in writing of its decision to the authorities referred to in the first subparagraph and to ESMA.

Where ESMA considers that the competent authority of the administrator has taken any measures referred to in paragraph 8 which may not be in conformity with Union law it shall act in accordance with Article 17 of Regulation (EU) No 1095/2010.

9a.
     
  Any of the competent authorities within a college that fails to agree on any of the measures to be taken under Article 13a or 14 may refer the matter to ESMA. Without prejudice to Article 258 TFEU, ESMA may act in accordance Article 19 of Regulation (EU) No 1095/2010.

9b.
     
  Any measure taken under Article 13a or 14 shall remain in force at least until there is agreement by the college, pursuant to paragraphs 8 and 9a.

Article 35

Cooperation with ESMA

1.   The competent authorities shall cooperate with ESMA for the purposes of this Regulation, in accordance with Regulation (EU) No 1095/2010.

2.   The competent authorities shall, without delay, provide ESMA with all information necessary to carry out its duties, in accordance with Article 35 of Regulation (EU) No 1095/2010.

2a.
     
  Performing its role in the implementation and monitoring of Regulation (EU) No 1227/2011, the Agency for the Cooperation of Energy Regulators (ACER) and other relevant supervisors shall cooperate with ESMA for the purposes of this Regulation and shall be consulted during the drafting of all regulatory technical standards and delegated acts and, without delay, shall supply all information necessary to fulfil its obligations.

3.   ESMA shall develop draft implementing technical standards to determine the procedures and forms for exchange of information as referred to in paragraph 2.

ESMA shall submit the draft implementing technical standards referred to in the first subparagraph to the Commission by [XXXX].

Power is conferred to the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010.

Article 36

Professional secrecy

1.   Any confidential information received, exchanged or transmitted pursuant to this Regulation shall be subject to the conditions of professional secrecy laid down in paragraph 2.

2.   The obligation of professional secrecy applies to all persons who work or who have worked for the competent authority or for any authority or market undertaking or natural or legal person to whom the competent authority has delegated its powers, including auditors and experts contracted by the competent authority.

3.   Information covered by professional secrecy may not be disclosed to any other person or authority except by virtue of provisions laid down by law.

4.   All the information exchanged between the competent authorities under this Regulation that concerns business or operational conditions and other economic or personal affairs shall be considered confidential and shall be subject to the requirements of professional secrecy, except where the competent authority states at the time of communication that such information may be disclosed or such disclosure is necessary for legal proceedings.

TITLE VII

DELEGATED AND IMPLEMENTING ACTS

Article 37

Exercise of the delegation

1.   The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.   The power to adopt delegated acts referred to in Articles 3(2) ▌and 23(7) shall be conferred on the Commission for an indeterminate period of time from [date of entry into force of this Regulation].

3.   The delegation of power referred to in Articles 3(2) ▌and 23(7) 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 power specified in that decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or on a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.   As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

5.   A delegated act adopted pursuant to Articles 3(2) ▌and 23(7) shall enter into force only if no objection has been expressed by either the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Article 38

Committee procedure

1.   The Commission shall be assisted by the European Securities Committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2.   Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply, having regard to the provisions of Article 8 thereof.

TITLE VIII

TRANSITIONAL AND FINAL PROVISIONS

Article 39

Transitional provisions

1.   An administrator providing a benchmark on [the date of entry into force of this Regulation] shall apply for authorisation
  or registration
  under Article 23
  or 23a
  within [
  12
  months after the date of application].

1a.
     
  The competent national authorities shall decide which of the registered benchmarks are to be considered ‘critical’. Those benchmarks shall be authorised in accordance with the provisions of Article 23.

2.   
  A natural or legal person
  that submitted an application for authorisation
  or registration
  in accordance with paragraph 1 may continue to produce an existing benchmark
  which may be used by supervised entities
  unless and until such authorisation is refused.

3.   Where an existing benchmark does not meet the requirements of this Regulation, but changing that benchmark to
  comply
  with the requirements of this Regulation would result in a force majeure event, frustrate or otherwise breach the terms of any financial contract or financial instrument which references that benchmark,
  the continued use of the benchmark in existing financial contracts and financial instruments may be permitted by the relevant competent authority of the Member State where the natural or legal person providing the benchmark is located until such time as the competent authority considers it possible for the benchmark to cease being used or be substituted by another benchmark without causing detriment to either party to the contract
  .

3a.
     
  New financial instruments or financial contracts shall not reference an existing benchmark that does not meet the requirements of this Regulation after [the entry into application of this Regulation]
  .

3b.
     
  By way of derogation from paragraph 3a, new financial instruments may reference an existing benchmark that does not meet the requirements of this Regulation for a period of one year after [the date of application of this Regulation], provided that the financial instrument is necessary for hedging purposes in order to manage the risk of an existing financial instrument that references that benchmark.

4.   
  Unless the Commission has adopted an equivalence decision as referred to in Article 20(2) or (2a), supervised entities in the Union shall only use a benchmark provided by an administrator located in a third country, where it is used as a reference in existing
  financial instruments and financial contracts ▌at the time of entry into force of this Regulation ▌or
  where it is used in new financial instruments and
  financial contracts
  for three years from the date of
  application of this Regulation.

Article 39a

Deadline for updating the prospectuses and key information documents

Article 19(2) is without prejudice to existing prospectuses approved under Directive 2003/71/EC prior to [the entry into force of this Regulation]. For prospectuses approved prior to [the entry into force of this Regulation] under Directive 2009/65/EC the underlying documents shall be updated at the first opportunity and in any event by ...* [[twelve] months after the entry into force of this Regulation].

Article 40

Review

1.
     By 1
  January
  2018, the Commission shall review and
  submit a
  report to the European Parliament and
  to
  the Council on this Regulation and in particular:

| (a) | the functioning and effectiveness of the critical benchmark and mandatory participation regime under Articles 13 and 14 and the definition of a critical benchmark in Article 3;
  and |
| --- | --- |

(a)

the functioning and effectiveness of the critical benchmark and mandatory participation regime under Articles 13 and 14 and the definition of a critical benchmark in Article 3;
  and

| (b) | the effectiveness of the supervisory regime in Title VI and the colleges under Article 34 and the appropriateness of supervision of certain benchmarks by a Union body. |
| --- | --- |

(b)

the effectiveness of the supervisory regime in Title VI and the colleges under Article 34 and the appropriateness of supervision of certain benchmarks by a Union body.

▌

1a.
     
  The Commission shall review the evolution of international principles, particularly those applicable to PRA commodity benchmarks, as well as the evolution of legal frameworks and supervisory practices in third countries concerning the provision of benchmarks, and shall submit a report to the European Parliament and to the Council by ...* [four years after the date of the entry into force of this Regulation] and every four years thereafter. Those reports shall be accompanied by a legislative proposal, if appropriate.

Article 41

Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

It shall apply from
  6
  months after ... [
  the
  entry into force
  of the delegated acts adopted by the Commission under this Regulation]
  .

However, Article 13(1)
  and Articles 14
  and 34 shall apply from ...[6 months after entry into force].

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament

The President

For the Council

The President

▌

---

(1)  The matter was referred back to the committee responsible for reconsideration pursuant to Rule 61(2), second subparagraph (A8-0131/2015).

1

(*)  Amendments: new or amended text is highlighted in bold italics; deletions are indicated by the symbol ▌.

*

(2)  OJ C 177, 11.6.2014, p. 42.

2

(3)  OJ C 113, 15.4.2014, p. 1.

3

(4)  OJ L 145, 30.4.2004, p. 1.

4

(5)  OJ L 345, 31.12.2003, p. 64.

5

(6)  OJ L 302, 17.11.2009, p. 32.

6

(7)  OJ L 326, 8.12.2011, p. 1.

7

(8)  Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (OJ L 60, 28.2.2014, p. 34).

8

(9)  
  Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).

9

Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).

(10)  
  Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 12.6.2014, p. 1).

10

Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 12.6.2014, p. 1).

(11)  OJ L 281, 23.11.1995, p. 31.

11

(12)  OJ L 8, 12.1.2001, p. 1.

12

(13)  
  Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (OJ L 326, 8.12.2011, p. 1).

13

Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (OJ L 326, 8.12.2011, p. 1).

(14)  OJ L 55, 28.2.2011, p. 13.

14

(15)  Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).

15

(16)  
  Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC (

  OJ L 211, 14.8.2009, p. 55).

16

Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC (

(17)  
  Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (

  OJ L 9, 14.8.2009, p. 112).

17

Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (

(18)  
  Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community (OJ L 302, 18.11.2010, p. 1).

18

Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community (OJ L 302, 18.11.2010, p. 1).

(19)  
  Commission Implementing Regulation (EU) No 1348/2014 of 17 December 2014 on data reporting implementing Article 8(2) and Article 8(6) of Regulation (EU) No 1227/2011 of the European Parliament and of the Council on wholesale energy market integrity and transparency (OJ L 363, 18.12.2014, p. 121).

19

Commission Implementing Regulation (EU) No 1348/2014 of 17 December 2014 on data reporting implementing Article 8(2) and Article 8(6) of Regulation (EU) No 1227/2011 of the European Parliament and of the Council on wholesale energy market integrity and transparency (OJ L 363, 18.12.2014, p. 121).

(20)  
  Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32).

20

Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32).

(21)  Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1).

21

(22)  OJ L 302, 17.11.2009, p. 32.

22

(23)  
  Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (

  OJ L 174, 1.7.2011, p. 1).

23

Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (

(24)  
  Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1)
  .

24

Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1)

(25)  
  Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EEC (

  OJ L 133, 22.5.2008, p. 66).

25

Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EEC (

(26)  
  Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (OJ L 60, 28.2.2014, p. 34).

26

Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (OJ L 60, 28.2.2014, p. 34).

(27)  
  Commission Regulation (EC) No 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards record-keeping obligations for investment firms, transaction reporting, market transparency, admission of financial instruments to trading, and defined terms for the purposes of that Directive (

  OJ L 241, 2.9.2006, p. 1).

27

Commission Regulation (EC) No 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards record-keeping obligations for investment firms, transaction reporting, market transparency, admission of financial instruments to trading, and defined terms for the purposes of that Directive (

(28)  
  Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, p. 84).

28

Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, p. 84).

(29)  
  1.8.2014, ESMA/2014/937.

29

1.8.2014, ESMA/2014/937.

---

Wednesday 20 May 2015

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| --- | --- | --- | --- |

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P8_TA(2015)0199

Non-objection to a delegated act: support for rural development by the European Agricultural Fund for Rural Development

European Parliament decision to raise no objections to the Commission delegated regulation of 27 April 2015 amending Annex I to Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (C(2015)02802 — 2015/2673(DEA))

(2016/C 353/23)

The European Parliament,

| — | having regard to the Commission delegated regulation (C(2015)02802), |
| --- | --- |

—

having regard to the Commission delegated regulation (C(2015)02802),

| — | having regard to the Commission’s letter of 3 February 2015 asking Parliament to declare that it will raise no objections to the delegated regulation, |
| --- | --- |

—

having regard to the Commission’s letter of 3 February 2015 asking Parliament to declare that it will raise no objections to the delegated regulation,

| — | having regard to the letter from the Committee on Agriculture and Rural Development to the Chair of the Conference of Committee Chairs of 6 May 2015, |
| --- | --- |

—

having regard to the letter from the Committee on Agriculture and Rural Development to the Chair of the Conference of Committee Chairs of 6 May 2015,

| — | having regard to Article 290 of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 290 of the Treaty on the Functioning of the European Union,

| — | having regard to Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005 (1), and in particular to Article 58(7) and Article 83(5) thereof, |
| --- | --- |

—

having regard to Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005 (1), and in particular to Article 58(7) and Article 83(5) thereof,

| — | having regard to the recommendation for a decision by the Committee on Agriculture and Rural Development, |
| --- | --- |

—

having regard to the recommendation for a decision by the Committee on Agriculture and Rural Development,

| — | having regard to Rule 105(6) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 105(6) of its Rules of Procedure,

| — | having regard to the fact that no objections have been raised within the period laid down in the third and fourth indents of Rule 105(6) of its Rules of Procedure, which expired on 19 May 2015, |
| --- | --- |

—

having regard to the fact that no objections have been raised within the period laid down in the third and fourth indents of Rule 105(6) of its Rules of Procedure, which expired on 19 May 2015,

| A. | whereas Article 19(1) of Council Regulation (EU, Euratom) No 1311/2013 provides for a revision of the multiannual financial framework in the event of the adoption after 1 January 2014 of programmes under shared management for, inter alia, the European Agricultural Fund for Rural Development in order to transfer to subsequent years, in excess of the corresponding expenditure ceilings, allocations not used in 2014; |
| --- | --- |

A.

whereas Article 19(1) of Council Regulation (EU, Euratom) No 1311/2013 provides for a revision of the multiannual financial framework in the event of the adoption after 1 January 2014 of programmes under shared management for, inter alia, the European Agricultural Fund for Rural Development in order to transfer to subsequent years, in excess of the corresponding expenditure ceilings, allocations not used in 2014;

| B. | whereas the rural development programmes of Bulgaria, the Czech Republic, Ireland, Greece, Spain, Croatia, Italy, Cyprus, Luxembourg, Hungary, Malta, Romania and Sweden and certain regional programmes of Belgium, Germany, France and the United Kingdom were not ready for adoption by the end of 2014; |
| --- | --- |

B.

whereas the rural development programmes of Bulgaria, the Czech Republic, Ireland, Greece, Spain, Croatia, Italy, Cyprus, Luxembourg, Hungary, Malta, Romania and Sweden and certain regional programmes of Belgium, Germany, France and the United Kingdom were not ready for adoption by the end of 2014;

| C. | whereas Regulation (EU, Euratom) No 1311/2013 has been revised accordingly by Council Regulation (EU, Euratom) 2015/623, which transfers, for the European Agricultural Fund for Rural Development, the corresponding unused 2014 allocations to 2015 and 2016 expenditure ceilings; |
| --- | --- |

C.

whereas Regulation (EU, Euratom) No 1311/2013 has been revised accordingly by Council Regulation (EU, Euratom) 2015/623, which transfers, for the European Agricultural Fund for Rural Development, the corresponding unused 2014 allocations to 2015 and 2016 expenditure ceilings;

| D. | whereas Annex I to Regulation (EU) No 1305/2013, which lays down the breakdown of Union support for rural development for the 2014 to 2020 period, should therefore be amended accordingly; |
| --- | --- |

D.

whereas Annex I to Regulation (EU) No 1305/2013, which lays down the breakdown of Union support for rural development for the 2014 to 2020 period, should therefore be amended accordingly;

| E. | whereas the delegated regulation is essential for the smooth and timely adoption of rural development programmes, and whereas it is appropriate that it enter into force on the day following that of its publication in the Official Journal of the European Union; |
| --- | --- |

E.

whereas the delegated regulation is essential for the smooth and timely adoption of rural development programmes, and whereas it is appropriate that it enter into force on the day following that of its publication in the Official Journal of the European Union;

| 1. | Declares that it has no objections to the delegated regulation; |
| --- | --- |

1.

Declares that it has no objections to the delegated regulation;

| 2. | Instructs its President to forward this decision to the Council and the Commission. |
| --- | --- |

2.

Instructs its President to forward this decision to the Council and the Commission.

---

(1)  OJ L 347, 20.12.2013, p. 487.

---

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P8_TA(2015)0200

Trade, Development and Cooperation Agreement with South Africa (Protocol to take account of the accession of Croatia) ***

European Parliament legislative resolution of 20 May 2015 on the draft Council decision on the conclusion, on behalf of the European Union and its Member States, of the Additional Protocol to the Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, of the other part, to take account of the accession of the Republic of Croatia to the European Union (07657/2015 — C8-0103/2015 — 2014/0236(NLE))

(Consent)

(2016/C 353/24)

The European Parliament,

| — | having regard to the draft Council decision (07657/2015), |
| --- | --- |

—

having regard to the draft Council decision (07657/2015),

| — | having regard to the draft Additional Protocol to the Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, of the other part, to take account of the accession of the Republic of Croatia to the European Union (13175/2014), |
| --- | --- |

—

having regard to the draft Additional Protocol to the Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, of the other part, to take account of the accession of the Republic of Croatia to the European Union (13175/2014),

| — | having regard to the request for consent submitted by the Council in accordance with Article 217 and Article 218(6), second subparagraph, point (a) (v) of the Treaty on the Functioning of the European Union (C8-0103/2015), |
| --- | --- |

—

having regard to the request for consent submitted by the Council in accordance with Article 217 and Article 218(6), second subparagraph, point (a) (v) of the Treaty on the Functioning of the European Union (C8-0103/2015),

| — | having regard to Rule 99(1), first and third subparagraphs, Rule 99(2), and Rule 108(7) of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 99(1), first and third subparagraphs, Rule 99(2), and Rule 108(7) of its Rules of Procedure,

| — | having regard to the recommendation of the Committee on Development (A8-0146/2015), |
| --- | --- |

—

having regard to the recommendation of the Committee on Development (A8-0146/2015),

| 1. | Gives its consent to the conclusion of the protocol; |
| --- | --- |

1.

Gives its consent to the conclusion of the protocol;

| 2. | Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of the Republic of South Africa. |
| --- | --- |

2.

Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of the Republic of South Africa.

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EN

Official Journal of the European Union

C 353/170

---

P8_TA(2015)0201

Prevention of the use of the financial system for the purposes of money laundering and terrorist financing ***II

European Parliament legislative resolution of 20 May 2015 on the Council position at first reading with a view to the adoption of a directive of the European Parliament and of the Council 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 (05933/4/2015 — C8-0109/2015 — 2013/0025(COD))

(Ordinary legislative procedure: second reading)

(2016/C 353/25)

The European Parliament,

| — | having regard to the Council position at first reading (05933/4/2015 — C8-0109/2015), |
| --- | --- |

—

having regard to the Council position at first reading (05933/4/2015 — C8-0109/2015),

| — | having regard to the opinion of the European Central Bank of 17 May 2013 (1), |
| --- | --- |

—

having regard to the opinion of the European Central Bank of 17 May 2013 (1),

| — | having regard to the opinion of the European Economic and Social Committee of 23 May 2013 (2), |
| --- | --- |

—

having regard to the opinion of the European Economic and Social Committee of 23 May 2013 (2),

| — | having regard to its position at first reading (3) on the Commission proposal to Parliament and the Council (COM(2013)0045), |
| --- | --- |

—

having regard to its position at first reading (3) on the Commission proposal to Parliament and the Council (COM(2013)0045),

| — | 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 Rule 76 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 76 of its Rules of Procedure,

| — | having regard to the joint deliberations of the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties, Justice and Home Affairs under Rule 55 of the Rules of Procedure, |
| --- | --- |

—

having regard to the joint deliberations of the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties, Justice and Home Affairs under Rule 55 of the Rules of Procedure,

| — | having regard to the recommendation for second reading of the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties, Justice and Home Affairs (A8-0153/2015), |
| --- | --- |

—

having regard to the recommendation for second reading of the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties, Justice and Home Affairs (A8-0153/2015),

| 1. | Approves the Council position at first reading; |
| --- | --- |

1.

Approves the Council position at first reading;

| 2. | Notes that the act is adopted in accordance with the Council position; |
| --- | --- |

2.

Notes that the act is adopted in accordance with the Council position;

| 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.

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;

| 4. | Instructs its Secretary-General to sign the act, once it has been verified that all the procedures have been duly completed, and, in agreement with the Secretary-General of the Council, to arrange for its publication in the Official Journal of the European Union; |
| --- | --- |

4.

Instructs its Secretary-General to sign the act, once it has been verified that all the procedures have been duly completed, and, in agreement with the Secretary-General of the Council, to arrange for its publication in the Official Journal of the European Union;

| 5. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

5.

Instructs its President to forward its position to the Council, the Commission and the national parliaments.

---

(1)  OJ C 166, 12.6.2013, p. 2.

(2)  OJ C 271, 19.9.2013, p. 31.

(3)  Texts adopted of 11.3.2014, P7_TA(2014)0191.

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| 27.9.2016 | EN | Official Journal of the European Union | C 353/171 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/171

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P8_TA(2015)0202

Information accompanying transfers of funds ***II

European Parliament legislative resolution of 20 May 2015 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 information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (05932/2/2015 — C8-0108/2015 — 2013/0024(COD))

(Ordinary legislative procedure: second reading)

(2016/C 353/26)

The European Parliament,

| — | having regard to the Council position at first reading (05932/2/2015 — C8-0108/2015), |
| --- | --- |

—

having regard to the Council position at first reading (05932/2/2015 — C8-0108/2015),

| — | having regard to the opinion of the European Central Bank of 17 May 2013 (1), |
| --- | --- |

—

having regard to the opinion of the European Central Bank of 17 May 2013 (1),

| — | having regard to the opinion of the European Economic and Social Committee of 23 May 2013 (2), |
| --- | --- |

—

having regard to the opinion of the European Economic and Social Committee of 23 May 2013 (2),

| — | having regard to its position at first reading (3) on the Commission proposal to Parliament and the Council (COM(2013)0044), |
| --- | --- |

—

having regard to its position at first reading (3) on the Commission proposal to Parliament and the Council (COM(2013)0044),

| — | 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 Rule 76 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 76 of its Rules of Procedure,

| — | having regard to the joint deliberations of the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties, Justice and Home Affairs under Rule 55 of the Rules of Procedure, |
| --- | --- |

—

having regard to the joint deliberations of the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties, Justice and Home Affairs under Rule 55 of the Rules of Procedure,

| — | having regard to the recommendation for second reading of the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties, Justice and Home Affairs (A8-0154/2015), |
| --- | --- |

—

having regard to the recommendation for second reading of the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties, Justice and Home Affairs (A8-0154/2015),

| 1. | Approves the Council position at first reading; |
| --- | --- |

1.

Approves the Council position at first reading;

| 2. | Notes that the act is adopted in accordance with the Council position; |
| --- | --- |

2.

Notes that the act is adopted in accordance with the Council position;

| 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.

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;

| 4. | Instructs its Secretary-General to sign the act, once it has been verified that all the procedures have been duly completed, and, in agreement with the Secretary-General of the Council, to arrange for its publication in the Official Journal of the European Union; |
| --- | --- |

4.

Instructs its Secretary-General to sign the act, once it has been verified that all the procedures have been duly completed, and, in agreement with the Secretary-General of the Council, to arrange for its publication in the Official Journal of the European Union;

| 5. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

5.

Instructs its President to forward its position to the Council, the Commission and the national parliaments.

---

(1)  OJ C 166, 12.6.2013, p. 2.

(2)  OJ C 271, 19.9.2013, p. 31.

(3)  Texts adopted of 11.3.2014, P7_TA(2014)0190.

---

| 27.9.2016 | EN | Official Journal of the European Union | C 353/172 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/172

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P8_TA(2015)0203

Insolvency proceedings ***II

European Parliament legislative resolution of 20 May 2015 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 insolvency proceedings (recast) (16636/5/2014 — C8-0090/2015 — 2012/0360(COD))

(Ordinary legislative procedure: second reading)

(2016/C 353/27)

The European Parliament,

| — | having regard to the Council position at first reading (16636/5/2014 — C8-0090/2015), |
| --- | --- |

—

having regard to the Council position at first reading (16636/5/2014 — C8-0090/2015),

| — | having regard to the opinion of the European Economic and Social Committee of 22 May 2013 (1), |
| --- | --- |

—

having regard to the opinion of the European Economic and Social Committee of 22 May 2013 (1),

| — | having regard to its position at first reading (2) on the Commission proposal to Parliament and the Council (COM(2012)0744), |
| --- | --- |

—

having regard to its position at first reading (2) on the Commission proposal to Parliament and the Council (COM(2012)0744),

| — | 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 Rule 76 of its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 76 of its Rules of Procedure,

| — | having regard to the recommendation for second reading of the Committee on Legal Affairs (A8-0155/2015), |
| --- | --- |

—

having regard to the recommendation for second reading of the Committee on Legal Affairs (A8-0155/2015),

| 1. | Approves the Council position at first reading; |
| --- | --- |

1.

Approves the Council position at first reading;

| 2. | Notes that the act is adopted in accordance with the Council position; |
| --- | --- |

2.

Notes that the act is adopted in accordance with the Council position;

| 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.

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;

| 4. | Instructs its Secretary-General to sign the act, once it has been verified that all the procedures have been duly completed, and, in agreement with the Secretary-General of the Council, to arrange for its publication in the Official Journal of the European Union; |
| --- | --- |

4.

Instructs its Secretary-General to sign the act, once it has been verified that all the procedures have been duly completed, and, in agreement with the Secretary-General of the Council, to arrange for its publication in the Official Journal of the European Union;

| 5. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
| --- | --- |

5.

Instructs its President to forward its position to the Council, the Commission and the national parliaments.

---

(1)  OJ C 271, 19.9.2013, p. 55.

(2)  Texts adopted of 5.2.2014, P7_TA(2014)0093.

---

| 27.9.2016 | EN | Official Journal of the European Union | C 353/173 |
| --- | --- | --- | --- |

27.9.2016

EN

Official Journal of the European Union

C 353/173

---

P8_TA(2015)0204

Union system for self-certification of importers of certain minerals and metals originating in conflict-affected and high-risk areas ***I

Amendments adopted by the European Parliament on 20 May 2015 on the proposal for a regulation of the European Parliament and of the Council setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas (COM(2014)0111 — C7-0092/2014 — 2014/0059(COD)) (1)

(Ordinary legislative procedure: first reading)

(2016/C 353/28)

Amendment 1

Proposal for a regulation

Recital 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| (1) | Natural mineral resources in conflict-affected or high risk areas — although holding great potential for development — can be a cause of dispute where their revenues are fuelling the outbreak or continuation of violent conflict, undermining
  national
  endeavours towards development, good governance and the rule of law. In these areas, breaking the nexus between conflict and illegal exploitation of minerals is critical
  to
  peace and stability. |

Text proposed by the Commission

Amendment

(1)

Natural mineral resources in conflict-affected or high risk areas — although holding great potential for development — can be a cause of dispute where their revenues are fuelling the outbreak or continuation of violent conflict, undermining
  national
  endeavours towards development, good governance and the rule of law. In these areas, breaking the nexus between conflict and illegal exploitation of minerals is critical
  to
  peace and stability.

| (1) | Natural mineral resources in conflict-affected or high risk areas — although holding great potential for development — can be a cause of dispute where their revenues are fuelling the outbreak or continuation of violent conflict, undermining endeavours towards development, good governance and the rule of law. In these areas, breaking the nexus between conflict and illegal exploitation of minerals is
  a
  critical
  element in guaranteeing
  peace
  , development
  and stability. |
| --- | --- |

(1)

Natural mineral resources in conflict-affected or high risk areas — although holding great potential for development — can be a cause of dispute where their revenues are fuelling the outbreak or continuation of violent conflict, undermining endeavours towards development, good governance and the rule of law. In these areas, breaking the nexus between conflict and illegal exploitation of minerals is
  a
  critical
  element in guaranteeing
  peace
  , development
  and stability.

Amendment 2

Proposal for a regulation

Recital 1 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (1a) | Human rights abuses are common within the extractive industry and may include child labour, sexual violence, enforced disappearance, forced resettlement and the destruction of ritually or culturally significant sites. |

Text proposed by the Commission

Amendment

(1a)

Human rights abuses are common within the extractive industry and may include child labour, sexual violence, enforced disappearance, forced resettlement and the destruction of ritually or culturally significant sites.

Amendment 3

Proposal for a regulation

Recital 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| (2) | The issue concerns resource-rich
  regions
  where the challenge posed by the desire to
  minimise
  the financing of armed groups and security forces has been taken up by governments and international organisations together with business operators and civil society organisations. |

Text proposed by the Commission

Amendment

(2)

The issue concerns resource-rich
  regions
  where the challenge posed by the desire to
  minimise
  the financing of armed groups and security forces has been taken up by governments and international organisations together with business operators and civil society organisations.

| (2) | The issue concerns resource-rich
  areas
  where the challenge posed by the desire to
  prevent
  the financing of armed groups and security forces has been taken up by governments and international organisations together with business operators and civil society organisations
  , including women's organisations that are at the forefront of drawing attention to the exploitative conditions imposed by these groups, as well as to rape and violence used to control local populations
  . |
| --- | --- |

(2)

The issue concerns resource-rich
  areas
  where the challenge posed by the desire to
  prevent
  the financing of armed groups and security forces has been taken up by governments and international organisations together with business operators and civil society organisations
  , including women's organisations that are at the forefront of drawing attention to the exploitative conditions imposed by these groups, as well as to rape and violence used to control local populations
  .

(The amendment resulting in the replacement of the word ‘regions’ by ‘areas’' applies throughout the text.)

Amendment 4

Proposal for a regulation

Recital 5 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (5a) | This Regulation is one of the ways of eliminating the financing of armed groups by means of controlling trade of minerals from conflict regions; this does not alter the fact that the European Union’s foreign and development policy actions should focus on countering local corruption and the porosity of borders, and on providing training for local populations and their representatives in order to highlight abuses. |

Text proposed by the Commission

Amendment

(5a)

This Regulation is one of the ways of eliminating the financing of armed groups by means of controlling trade of minerals from conflict regions; this does not alter the fact that the European Union’s foreign and development policy actions should focus on countering local corruption and the porosity of borders, and on providing training for local populations and their representatives in order to highlight abuses.

Amendment 5

Proposal for a regulation

Recital 7

| Text proposed by the Commission | Amendment |
| --- | --- |
| (7) | On 7 October 2010, the European Parliament
  passed a Resolution calling for
  the Union to legislate along the lines of the US ‘conflict minerals’ law alias Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act; and the Commission announced in its Communications of 2011 and 2012 its intention to explore ways of improving transparency throughout the supply chain, including aspects of due diligence. In the latter communication and in line with the commitment it had made at the May 2011 OECD Ministerial Council, the Commission also advocated greater support for and use of the OECD Guidelines for Multinational Enterprises, and of the OECD Due Diligence Guidance — even outside the OECD membership. |

Text proposed by the Commission

Amendment

(7)

On 7 October 2010, the European Parliament
  passed a Resolution calling for
  the Union to legislate along the lines of the US ‘conflict minerals’ law alias Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act; and the Commission announced in its Communications of 2011 and 2012 its intention to explore ways of improving transparency throughout the supply chain, including aspects of due diligence. In the latter communication and in line with the commitment it had made at the May 2011 OECD Ministerial Council, the Commission also advocated greater support for and use of the OECD Guidelines for Multinational Enterprises, and of the OECD Due Diligence Guidance — even outside the OECD membership.

| (7) | In its resolutions of
  7 October 2010

  , of 8 March 2011, of 5 July 2011 and of 26 February 2014
  , the European Parliament
  called
  for the Union to legislate along the lines of the US ‘conflict minerals’ law alias Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act; and the Commission announced in its Communications of 2011 and 2012 its intention to explore ways of improving transparency throughout the supply chain, including aspects of due diligence. In the latter communication and in line with the commitment it had made at the May 2011 OECD Ministerial Council, the Commission also advocated greater support for and use of the OECD Guidelines for Multinational Enterprises, and of the OECD Due Diligence Guidance — even outside the OECD membership. |
| --- | --- |

(7)

In its resolutions of
  7 October 2010

  , of 8 March 2011, of 5 July 2011 and of 26 February 2014
  , the European Parliament
  called
  for the Union to legislate along the lines of the US ‘conflict minerals’ law alias Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act; and the Commission announced in its Communications of 2011 and 2012 its intention to explore ways of improving transparency throughout the supply chain, including aspects of due diligence. In the latter communication and in line with the commitment it had made at the May 2011 OECD Ministerial Council, the Commission also advocated greater support for and use of the OECD Guidelines for Multinational Enterprises, and of the OECD Due Diligence Guidance — even outside the OECD membership.

Amendment 6

Proposal for a regulation

Recital 8

| Text proposed by the Commission | Amendment |
| --- | --- |
| (8) | Union citizens and civil society actors have raised awareness with respect to companies operating under the Union's jurisdiction for not being held accountable for their potential connection to the illicit extraction and trade of minerals from conflict regions. The consequence is that such minerals, potentially present in consumer products, link consumers to conflicts outside the Union. To this end, citizens have requested, notably through petitions, that legislation be proposed to the European Parliament and the Council holding companies accountable under the Guidelines as established by the UN and OECD. |

Text proposed by the Commission

Amendment

(8)

Union citizens and civil society actors have raised awareness with respect to companies operating under the Union's jurisdiction for not being held accountable for their potential connection to the illicit extraction and trade of minerals from conflict regions. The consequence is that such minerals, potentially present in consumer products, link consumers to conflicts outside the Union. To this end, citizens have requested, notably through petitions, that legislation be proposed to the European Parliament and the Council holding companies accountable under the Guidelines as established by the UN and OECD.

| (8) | Union citizens and civil society actors have raised awareness with respect to companies operating under the Union's jurisdiction for not being held accountable for their potential connection to the illicit extraction and trade of minerals from conflict regions. The consequence is that such minerals, potentially present in consumer products, link consumers to conflicts outside the Union.
  As such, consumers are indirectly linked to conflicts that have severe impacts on human rights, notably the rights of women, as armed groups often use mass rape as a deliberate strategy to intimidate and control local populations in order to protect their interests.
  To this end, citizens have requested, notably through petitions, that legislation be proposed to the European Parliament and the Council holding companies accountable under the Guidelines as established by the UN and OECD. |
| --- | --- |

(8)

Union citizens and civil society actors have raised awareness with respect to companies operating under the Union's jurisdiction for not being held accountable for their potential connection to the illicit extraction and trade of minerals from conflict regions. The consequence is that such minerals, potentially present in consumer products, link consumers to conflicts outside the Union.
  As such, consumers are indirectly linked to conflicts that have severe impacts on human rights, notably the rights of women, as armed groups often use mass rape as a deliberate strategy to intimidate and control local populations in order to protect their interests.
  To this end, citizens have requested, notably through petitions, that legislation be proposed to the European Parliament and the Council holding companies accountable under the Guidelines as established by the UN and OECD.

Amendments 71, 91 and 112

Proposal for a regulation

Recital 9 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (9a) | The Regulation reflects the need for due diligence along the entire supply chain from the sourcing site to the final product, by requiring all companies who first place covered resources, including products that contain those resources on the Union market to conduct and publicly report on their supply chain due diligence. In line with the nature of due diligence, the individual due diligence obligations contained in this Regulation should reflect the progressive and flexible nature of due diligence processes, and the need for obligations that are appropriately tailored to enterprises' individual circumstances. Obligations should be tailored to a company's size, leverage, and position in its supply chain. |

Text proposed by the Commission

Amendment

(9a)

The Regulation reflects the need for due diligence along the entire supply chain from the sourcing site to the final product, by requiring all companies who first place covered resources, including products that contain those resources on the Union market to conduct and publicly report on their supply chain due diligence. In line with the nature of due diligence, the individual due diligence obligations contained in this Regulation should reflect the progressive and flexible nature of due diligence processes, and the need for obligations that are appropriately tailored to enterprises' individual circumstances. Obligations should be tailored to a company's size, leverage, and position in its supply chain.

Amendment 57

Proposal for a regulation

Recital 11 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (11a) | Directive 2014/95/EU of the European Parliament and of the Council

   (1bis)

  requires companies with more than 500 employees to disclose information on a number of policies including human rights, anti-corruption and supply chain due diligence. That Directive provides for the Commission to develop guidelines in order to facilitate the disclosure of this information. The Commission should consider including in those guidelines performance indicators with regard to responsible sourcing of minerals and metals. |

Text proposed by the Commission

Amendment

(11a)

Directive 2014/95/EU of the European Parliament and of the Council

   (1bis)

  requires companies with more than 500 employees to disclose information on a number of policies including human rights, anti-corruption and supply chain due diligence. That Directive provides for the Commission to develop guidelines in order to facilitate the disclosure of this information. The Commission should consider including in those guidelines performance indicators with regard to responsible sourcing of minerals and metals.

Amendment 9

Proposal for a regulation

Recital 11 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (11b) | Many existing supply chain due diligence systems could contribute to achieving the aims of this Regulation. There already exist industry schemes aimed at breaking the link between conflict and the sourcing of tin, tantalum, tungsten and gold. Those schemes use independent third-party audits to certify smelters and refiners with systems in place to ensure responsible sourcing of minerals only. Those industry schemes could be recognised in the Union system. However, the criteria and procedures for such schemes to be recognised as equivalent to the requirements of this Regulation need to be clarified to allow for respect for high standards and the avoidance of double auditing. |

Text proposed by the Commission

Amendment

(11b)

Many existing supply chain due diligence systems could contribute to achieving the aims of this Regulation. There already exist industry schemes aimed at breaking the link between conflict and the sourcing of tin, tantalum, tungsten and gold. Those schemes use independent third-party audits to certify smelters and refiners with systems in place to ensure responsible sourcing of minerals only. Those industry schemes could be recognised in the Union system. However, the criteria and procedures for such schemes to be recognised as equivalent to the requirements of this Regulation need to be clarified to allow for respect for high standards and the avoidance of double auditing.

Amendment 10

Proposal for a regulation

Recital 12

| Text proposed by the Commission | Amendment |
| --- | --- |
| (12) | Union companies have expressed their interest through the public consultation in the responsible sourcing of minerals and reported on current industry schemes designed to pursue their corporate social responsibility objectives, customer requests, or the security of their supplies. However, Union companies have also reported countless difficulties in the exercise of supply chain due diligence because of lengthy and complex global supply chains involving a high number of operators that are often insufficiently aware or ethically unconcerned. The cost of responsible sourcing and their potential impact on competitiveness notably on SMEs should be monitored by the Commission. |

Text proposed by the Commission

Amendment

(12)

Union companies have expressed their interest through the public consultation in the responsible sourcing of minerals and reported on current industry schemes designed to pursue their corporate social responsibility objectives, customer requests, or the security of their supplies. However, Union companies have also reported countless difficulties in the exercise of supply chain due diligence because of lengthy and complex global supply chains involving a high number of operators that are often insufficiently aware or ethically unconcerned. The cost of responsible sourcing and their potential impact on competitiveness notably on SMEs should be monitored by the Commission.

| (12) | Union companies have expressed their interest through the public consultation in the responsible sourcing of minerals and reported on current industry schemes designed to pursue their corporate social responsibility objectives, customer requests, or the security of their supplies. However, Union companies have also reported countless difficulties
  and practical challenges
  in the exercise of supply chain due diligence because of lengthy and complex global supply chains involving a high number of operators that are often insufficiently aware or ethically unconcerned. The cost of responsible sourcing
  , third party auditing, their administrative consequences
  and their potential impact on competitiveness notably on SMEs should be
  closely
  monitored
  and reported
  by the Commission.
  The Commission should provide micro- small and medium size enterprises with technical and financial assistance and should facilitate the exchange of information in order to implement this Regulation
  .
  SMEs established in the Union which import minerals and metals and which establish due diligence systems should receive financial aid through the Commission’s COSME programme. |
| --- | --- |

(12)

Union companies have expressed their interest through the public consultation in the responsible sourcing of minerals and reported on current industry schemes designed to pursue their corporate social responsibility objectives, customer requests, or the security of their supplies. However, Union companies have also reported countless difficulties
  and practical challenges
  in the exercise of supply chain due diligence because of lengthy and complex global supply chains involving a high number of operators that are often insufficiently aware or ethically unconcerned. The cost of responsible sourcing
  , third party auditing, their administrative consequences
  and their potential impact on competitiveness notably on SMEs should be
  closely
  monitored
  and reported
  by the Commission.
  The Commission should provide micro- small and medium size enterprises with technical and financial assistance and should facilitate the exchange of information in order to implement this Regulation
  .
  SMEs established in the Union which import minerals and metals and which establish due diligence systems should receive financial aid through the Commission’s COSME programme.

Amendment 12

Proposal for a regulation

Recital 12 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (12a) | Companies established in the Union operating downstream of the supply chain that voluntarily establish a responsible sourcing system for minerals and metals should be certified by the Member States’ competent authorities by means of a label. The Commission should rely on the OECD Due Diligence Guidance to set out the criteria for the granting of certification and, to that end, may consult the OECD Secretariat. The conditions for granting the ‘European certification of responsibility’ should be as stringent as those required by the OECD certification system. Companies benefitting from the ‘European certification of responsibility’ are encouraged to indicate this fact on their website and to include it in the information given to European consumers. |

Text proposed by the Commission

Amendment

(12a)

Companies established in the Union operating downstream of the supply chain that voluntarily establish a responsible sourcing system for minerals and metals should be certified by the Member States’ competent authorities by means of a label. The Commission should rely on the OECD Due Diligence Guidance to set out the criteria for the granting of certification and, to that end, may consult the OECD Secretariat. The conditions for granting the ‘European certification of responsibility’ should be as stringent as those required by the OECD certification system. Companies benefitting from the ‘European certification of responsibility’ are encouraged to indicate this fact on their website and to include it in the information given to European consumers.

Amendment 14

Proposal for a regulation

Recital 13

| Text proposed by the Commission | Amendment |
| --- | --- |
| (13) | Smelters and refiners are an important point in global mineral supply chains as they are typically the last stage in which due diligence can effectively be assured by collecting, disclosing and verifying information on the mineral's origin and chain of custody. After this stage of transformation it is often considered unfeasible to trace back the origins of minerals. A Union list of responsible smelters and refiners could therefore provide transparency and certainty to downstream companies as regards supply chain due diligence practices. |

Text proposed by the Commission

Amendment

(13)

Smelters and refiners are an important point in global mineral supply chains as they are typically the last stage in which due diligence can effectively be assured by collecting, disclosing and verifying information on the mineral's origin and chain of custody. After this stage of transformation it is often considered unfeasible to trace back the origins of minerals. A Union list of responsible smelters and refiners could therefore provide transparency and certainty to downstream companies as regards supply chain due diligence practices.

| (13) | Smelters and refiners are an important point in global mineral supply chains as they are typically the last stage in which due diligence can effectively be assured by collecting, disclosing and verifying information on the mineral's origin and chain of custody. After this stage of transformation it is often considered unfeasible to trace back the origins of minerals.
  The same applies to recycled metals, which have undergone even further steps in the transformation process.
   A Union list of responsible smelters and refiners could therefore provide transparency and certainty to downstream companies as regards supply chain due diligence practices.
  In accordance with the OECD Due Diligence Guidance, upstream undertakings such as smelters and refiners should undergo an independent third-party audit of their supply chain due diligence practices, with a view to also being included in the list of responsible smelters and refiners. |
| --- | --- |

(13)

Smelters and refiners are an important point in global mineral supply chains as they are typically the last stage in which due diligence can effectively be assured by collecting, disclosing and verifying information on the mineral's origin and chain of custody. After this stage of transformation it is often considered unfeasible to trace back the origins of minerals.
  The same applies to recycled metals, which have undergone even further steps in the transformation process.
   A Union list of responsible smelters and refiners could therefore provide transparency and certainty to downstream companies as regards supply chain due diligence practices.
  In accordance with the OECD Due Diligence Guidance, upstream undertakings such as smelters and refiners should undergo an independent third-party audit of their supply chain due diligence practices, with a view to also being included in the list of responsible smelters and refiners.

Amendment 15

Proposal for a regulation

Recital 13 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (13a) | Smelters and refiners which process and import minerals and concentrates thereof should have an obligation to apply the Union system for supply chain due diligence. |

Text proposed by the Commission

Amendment

(13a)

Smelters and refiners which process and import minerals and concentrates thereof should have an obligation to apply the Union system for supply chain due diligence.

Amendment 16

Proposal for a regulation

Recital 13 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (13b) | All minerals and metals within the scope of this Regulation should be used in accordance with the requirements laid down herein. It is essential that importers comply with the provisions of this Regulation. |

Text proposed by the Commission

Amendment

(13b)

All minerals and metals within the scope of this Regulation should be used in accordance with the requirements laid down herein. It is essential that importers comply with the provisions of this Regulation.

Amendment 18

Proposal for a regulation

Recital 15 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (15a) | In order to guarantee the efficient implementation of this Regulation, provision should be made for a two-year transitional period to allow the Commission to set up a third-party audit system and for responsible importers to become familiar with their obligations under this Regulation. |

Text proposed by the Commission

Amendment

(15a)

In order to guarantee the efficient implementation of this Regulation, provision should be made for a two-year transitional period to allow the Commission to set up a third-party audit system and for responsible importers to become familiar with their obligations under this Regulation.

Amendment 19

Proposal for a regulation

Recital 15 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (15b) | The Commission should regularly review its financial assistance and political commitments with regard to conflict-affected and high risk areas where tin, tantalum, tungsten and gold are mined, especially in the Great Lake Region, in order to ensure policy coherence, and in order to incentivise and strengthen the respect for good governance, the rule of law but above all ethical mining. |

Text proposed by the Commission

Amendment

(15b)

The Commission should regularly review its financial assistance and political commitments with regard to conflict-affected and high risk areas where tin, tantalum, tungsten and gold are mined, especially in the Great Lake Region, in order to ensure policy coherence, and in order to incentivise and strengthen the respect for good governance, the rule of law but above all ethical mining.

Amendment 20

Proposal for a regulation

Recital 16

| Text proposed by the Commission | Amendment |
| --- | --- |
| (16) | The Commission should report regularly to the
  Council
  and the
  European Parliament
  on the effects of the scheme.
  No later than three years after entering into force
  and every
  six
  years thereafter, the Commission should review the functioning and the effectiveness of this Regulation,
  including
  as regards the promotion of responsible sourcing of the minerals within its scope from conflict-affected and high-risk areas. The reports may be accompanied, if necessary, by appropriate legislative proposals, which may include mandatory measures, |

Text proposed by the Commission

Amendment

(16)

The Commission should report regularly to the
  Council
  and the
  European Parliament
  on the effects of the scheme.
  No later than three years after entering into force
  and every
  six
  years thereafter, the Commission should review the functioning and the effectiveness of this Regulation,
  including
  as regards the promotion of responsible sourcing of the minerals within its scope from conflict-affected and high-risk areas. The reports may be accompanied, if necessary, by appropriate legislative proposals, which may include mandatory measures,

| (16) | The Commission should report regularly to the
  European Parliament
  and the
  Council
  on the effects of the scheme.
  Two years after the date of application of this Regulation
  and every
  three
  years thereafter, the Commission should review the functioning and the effectiveness of this Regulation
  and the latest impact of the scheme on the ground
  as regards the promotion of responsible sourcing of the minerals within its scope from conflict-affected and high-risk areas
  and report to the European Parliament and to the Council
  . The reports may be accompanied, if necessary, by appropriate legislative proposals, which may include
  further
  mandatory measures. |
| --- | --- |

(16)

The Commission should report regularly to the
  European Parliament
  and the
  Council
  on the effects of the scheme.
  Two years after the date of application of this Regulation
  and every
  three
  years thereafter, the Commission should review the functioning and the effectiveness of this Regulation
  and the latest impact of the scheme on the ground
  as regards the promotion of responsible sourcing of the minerals within its scope from conflict-affected and high-risk areas
  and report to the European Parliament and to the Council
  . The reports may be accompanied, if necessary, by appropriate legislative proposals, which may include
  further
  mandatory measures.

Amendment 21

Proposal for a regulation

Recital 16 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (16a) | In their Joint Communication of 5 March 2014, the Commission and the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy committed to the implementation of accompanying measures leading to an integrated EU approach to responsible sourcing in parallel with this Regulation, with the aim not only of reaching a high level of participation by companies in the Union system provided for in this Regulation but also ensuring that a global, coherent and comprehensive approach is taken to promote responsible sourcing from conflict affected and high-risk areas. |

Text proposed by the Commission

Amendment

(16a)

In their Joint Communication of 5 March 2014, the Commission and the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy committed to the implementation of accompanying measures leading to an integrated EU approach to responsible sourcing in parallel with this Regulation, with the aim not only of reaching a high level of participation by companies in the Union system provided for in this Regulation but also ensuring that a global, coherent and comprehensive approach is taken to promote responsible sourcing from conflict affected and high-risk areas.

Amendment 60

Proposal for a regulation

Article 1 — paragraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| 1.   This Regulation sets up a Union system for supply chain due diligence
  self-certification
  in order to curtail opportunities for armed groups and security forces (12) to trade in tin, tantalum and tungsten, their ores, and gold. It is designed to provide transparency and certainty as regards the supply practices of importers, smelters and refiners sourcing from conflict-affected and high-risk areas. | 1.   This Regulation sets up a Union system for supply chain due diligence
  certification
  in order to curtail opportunities for armed groups and security forces (12) to trade in tin, tantalum and tungsten, their ores, and gold. It is designed to provide transparency and certainty as regards the supply practices of importers, smelters and refiners sourcing from conflict-affected and high-risk areas. |

Text proposed by the Commission

Amendment

1.   This Regulation sets up a Union system for supply chain due diligence
  self-certification
  in order to curtail opportunities for armed groups and security forces (12) to trade in tin, tantalum and tungsten, their ores, and gold. It is designed to provide transparency and certainty as regards the supply practices of importers, smelters and refiners sourcing from conflict-affected and high-risk areas.

1.   This Regulation sets up a Union system for supply chain due diligence
  certification
  in order to curtail opportunities for armed groups and security forces (12) to trade in tin, tantalum and tungsten, their ores, and gold. It is designed to provide transparency and certainty as regards the supply practices of importers, smelters and refiners sourcing from conflict-affected and high-risk areas.

Amendment 154

Proposal for a regulation

Article 1 — paragraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| 2.   This Regulation lays down the supply chain due diligence obligations of Union importers who
  choose to be self-certified as responsible importers of minerals or metals containing or consisting of tin, tantalum, tungsten and gold, as set out in Annex I
  . | 2.   This Regulation lays down the supply chain due diligence obligations of
  all
  Union importers who
  source minerals and metals falling within the scope of this Regulation, in accordance with the OECD Due Diligence Guidance
  .
  That guidance is designed to guarantee transparency and traceability in respect of importers’ sourcing practices in conflict-affected or high-risk areas, in order to minimise or prevent violent conflicts and human rights abuses by curtailing the opportunities for armed groups and security forces, as defined in Annex II to the OECD Due Diligence Guidance, to trade in those minerals and metals. |

Text proposed by the Commission

Amendment

2.   This Regulation lays down the supply chain due diligence obligations of Union importers who
  choose to be self-certified as responsible importers of minerals or metals containing or consisting of tin, tantalum, tungsten and gold, as set out in Annex I
  .

2.   This Regulation lays down the supply chain due diligence obligations of
  all
  Union importers who
  source minerals and metals falling within the scope of this Regulation, in accordance with the OECD Due Diligence Guidance
  .
  That guidance is designed to guarantee transparency and traceability in respect of importers’ sourcing practices in conflict-affected or high-risk areas, in order to minimise or prevent violent conflicts and human rights abuses by curtailing the opportunities for armed groups and security forces, as defined in Annex II to the OECD Due Diligence Guidance, to trade in those minerals and metals.

Amendment 23

Proposal for a regulation

Article 1 — paragraph 2 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 2a.
     
  Metals reasonably assumed to be recycled shall be excluded from the scope of this Regulation. |

Text proposed by the Commission

Amendment

2a.
     
  Metals reasonably assumed to be recycled shall be excluded from the scope of this Regulation.

Amendments 76, 97, 117 and 135

Proposal for a regulation

Article 1 — paragraph 2 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 2b.
     
  In order to prevent unintended distortions of the market, this Regulation shall draw a distinction between the roles of undertakings situated upstream of and those situated downstream from the supply chain. The exercise of due diligence must be tailored to the activities of the undertaking in question, its size and its position in the supply chain. |

Text proposed by the Commission

Amendment

2b.
     
  In order to prevent unintended distortions of the market, this Regulation shall draw a distinction between the roles of undertakings situated upstream of and those situated downstream from the supply chain. The exercise of due diligence must be tailored to the activities of the undertaking in question, its size and its position in the supply chain.

Amendments 77, 98, 118 and 136

Proposal for a regulation

Article 1 — paragraph 2 c (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 2c.
     
  The Commission, working with industry schemes and in accordance with the OECD Guidance, may provide further guidelines on the obligations to be met by undertakings, depending on their position in the supply chain, to ensure that the system involves a flexible procedure that takes into account the position of SMEs. |

Text proposed by the Commission

Amendment

2c.
     
  The Commission, working with industry schemes and in accordance with the OECD Guidance, may provide further guidelines on the obligations to be met by undertakings, depending on their position in the supply chain, to ensure that the system involves a flexible procedure that takes into account the position of SMEs.

Amendment 155

Proposal for a regulation

Article 1 — paragraph 2 d (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 2d.
     
  Under this Regulation and in accordance with the OECD Due Diligence Guidance, downstream companies shall take all reasonable steps to identify and address any risks arising in their supply chains for minerals and metals coming within the scope of this Regulation. In this connection, they shall be required to provide information on the due diligence practices they employ for responsible sourcing. |

Text proposed by the Commission

Amendment

2d.
     
  Under this Regulation and in accordance with the OECD Due Diligence Guidance, downstream companies shall take all reasonable steps to identify and address any risks arising in their supply chains for minerals and metals coming within the scope of this Regulation. In this connection, they shall be required to provide information on the due diligence practices they employ for responsible sourcing.

Amendment 26

Proposal for a regulation

Article 2 — point b a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (ba) | ‘recycled metals’ means reclaimed end-user or post-consumer products, or scrap processed metals created during product manufacturing; ‘recycled metals’ includes excess, obsolete, defective, and scrap metal materials which contain refined or processed metals that are appropriate to recycle in the production of tin, tantalum, tungsten and/or gold; minerals partially processed, unprocessed or a bi-product from another ore are not recycled metals; |

Text proposed by the Commission

Amendment

(ba)

‘recycled metals’ means reclaimed end-user or post-consumer products, or scrap processed metals created during product manufacturing; ‘recycled metals’ includes excess, obsolete, defective, and scrap metal materials which contain refined or processed metals that are appropriate to recycle in the production of tin, tantalum, tungsten and/or gold; minerals partially processed, unprocessed or a bi-product from another ore are not recycled metals;

Amendment 24

Proposal for a regulation

Article 2 — point e

| Text proposed by the Commission | Amendment |
| --- | --- |
| (e) | ‘conflict-affected and high-risk areas’ means areas in a state of armed conflict, fragile post-conflict as well as areas
  witnessing
  weak or non-existent governance and security, such as failed states,
  and
  widespread and systematic violations of
  international law, including human rights abuses
  ; |

Text proposed by the Commission

Amendment

(e)

‘conflict-affected and high-risk areas’ means areas in a state of armed conflict, fragile post-conflict as well as areas
  witnessing
  weak or non-existent governance and security, such as failed states,
  and
  widespread and systematic violations of
  international law, including human rights abuses
  ;

| (e) | ‘conflict-affected and high-risk areas’ means areas in a state of armed conflict,
  with presence of widespread violence, collapse of civil infrastructure,
  fragile post-conflict areas as well as areas
  of
  weak or non-existent governance and security, such as failed states,
  characterised by
  widespread and systematic violations of
  human rights, as established under international law
  ; |
| --- | --- |

(e)

‘conflict-affected and high-risk areas’ means areas in a state of armed conflict,
  with presence of widespread violence, collapse of civil infrastructure,
  fragile post-conflict areas as well as areas
  of
  weak or non-existent governance and security, such as failed states,
  characterised by
  widespread and systematic violations of
  human rights, as established under international law
  ;

Amendment 25

Proposal for a regulation

Article 2 — point g

| Text proposed by the Commission | Amendment |
| --- | --- |
| (g) | ‘importer’ means any natural or legal person
  declaring
  minerals
  or
  metals within the scope of this Regulation
  for release for free circulation within the meaning of Article 79 of Council Regulation (EEC) No 2913/1992

   (13); |

Text proposed by the Commission

Amendment

(g)

‘importer’ means any natural or legal person
  declaring
  minerals
  or
  metals within the scope of this Regulation
  for release for free circulation within the meaning of Article 79 of Council Regulation (EEC) No 2913/1992

   (13);

| (g) | ‘importer’ means any natural or legal person
  established in the Union making a declaration for the release for free circulation of
  minerals
  and
  metals within the scope of this Regulation
  in his own name or the person on whose behalf such declaration is made; a representative making the declaration while acting in the name of and on behalf of another person or a representative acting in his own name and on behalf of another person are equally considered to be importers for the purposes of this Regulation; |
| --- | --- |

(g)

‘importer’ means any natural or legal person
  established in the Union making a declaration for the release for free circulation of
  minerals
  and
  metals within the scope of this Regulation
  in his own name or the person on whose behalf such declaration is made; a representative making the declaration while acting in the name of and on behalf of another person or a representative acting in his own name and on behalf of another person are equally considered to be importers for the purposes of this Regulation;

Amendment 100

Proposal for a regulation

Article 2 — point h

| Text proposed by the Commission | Amendment |
| --- | --- |
| (h) | ‘responsible importer’ means any importer who chooses to self-certify according to the rules set out in this Regulation; |

Text proposed by the Commission

Amendment

(h)

‘responsible importer’ means any importer who chooses to self-certify according to the rules set out in this Regulation;

deleted

Amendment 138

Proposal for a regulation

Article 2 — point i

| Text proposed by the Commission | Amendment |
| --- | --- |
| (i) | ‘self-certification’ means the act of declaring one's adherence to the obligations relating to management systems, risk management, third-party audits and disclosure as set out in this Regulation; |

Text proposed by the Commission

Amendment

(i)

‘self-certification’ means the act of declaring one's adherence to the obligations relating to management systems, risk management, third-party audits and disclosure as set out in this Regulation;

deleted

(This amendment applies throughout the text)

Amendment 29

Proposal for a regulation

Article 2 — point q a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (qa) | ‘industry scheme’ means a combination of voluntary supply chain due diligence procedures, tools and mechanisms, developed and overseen by relevant industry associations, including third-party conformity assessments; |

Text proposed by the Commission

Amendment

(qa)

‘industry scheme’ means a combination of voluntary supply chain due diligence procedures, tools and mechanisms, developed and overseen by relevant industry associations, including third-party conformity assessments;

Amendment 30

Proposal for a regulation

Article 2 — point q b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (qb) | ‘armed groups and security forces’ means groups referred to in Annex II of the OECD Due Diligence Guidance; |

Text proposed by the Commission

Amendment

(qb)

‘armed groups and security forces’ means groups referred to in Annex II of the OECD Due Diligence Guidance;

Amendment 31

Proposal for a regulation

Article 4 — point a

| Text proposed by the Commission | Amendment |
| --- | --- |
| (a) | adopt and clearly communicate to suppliers and the public its supply chain policy for the minerals and metals potentially originating from conflict-affected and high-risk areas, |

Text proposed by the Commission

Amendment

(a)

adopt and clearly communicate to suppliers and the public its supply chain policy for the minerals and metals potentially originating from conflict-affected and high-risk areas,

| (a) | adopt and clearly
  and systematically
  communicate to suppliers and the public its supply chain policy for the minerals and metals potentially originating from conflict-affected and high-risk areas, |
| --- | --- |

(a)

adopt and clearly
  and systematically
  communicate to suppliers and the public its supply chain policy for the minerals and metals potentially originating from conflict-affected and high-risk areas,

Amendments 85, 126 and 145

Proposal for a regulation

Article 4 — paragraph 1 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Where any undertaking can reasonably conclude that resources are derived only from recycled or scrap sources, it shall, with due regard to business confidentiality and competitive concerns: |
| | (a) | publicly disclose its determination; and |

Text proposed by the Commission

Amendment

Where any undertaking can reasonably conclude that resources are derived only from recycled or scrap sources, it shall, with due regard to business confidentiality and competitive concerns:

(a)

publicly disclose its determination; and

| (b) | describe in reasonable detail the due diligence measures it exercised in making that determination. |
| --- | --- |

(b)

describe in reasonable detail the due diligence measures it exercised in making that determination.

Amendment 67

Proposal for a regulation

Article 6 — paragraph 2 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Certified responsible importers of smelted and refined metals shall be exempted from carrying out independent third-party audits pursuant to Article 3(1a) of this Regulation provided they submit substantive evidence that all smelters and refiners in their supply chain conform to the provisions of this Regulation. |

Text proposed by the Commission

Amendment

Certified responsible importers of smelted and refined metals shall be exempted from carrying out independent third-party audits pursuant to Article 3(1a) of this Regulation provided they submit substantive evidence that all smelters and refiners in their supply chain conform to the provisions of this Regulation.

Amendment 40

Proposal for a regulation

Article 7 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Article 7a |
| | List of responsible importers |
| | 1.
     
  On the basis of the information provided by the Member States in their reports, as referred to in Article 15, the Commission shall adopt and make publicly available a decision listing the names and addresses of responsible importers of minerals and metals within the scope of this Regulation. |
| | 2.
     
  The Commission shall adopt the list using the template set out in Annex Ia and in accordance with the advisory procedure referred to in Article 13(2). |
| | 3.
     
  The Commission shall update and publish, including on the internet, the information included in the list in a timely manner. The Commission shall remove from the list the names of the importers that, in case of inadequate remedial action by the responsible importers, are no longer recognised as responsible importers by Member States in accordance with Article 14(3). |

Text proposed by the Commission

Amendment

Article 7a

List of responsible importers

1.
     
  On the basis of the information provided by the Member States in their reports, as referred to in Article 15, the Commission shall adopt and make publicly available a decision listing the names and addresses of responsible importers of minerals and metals within the scope of this Regulation.

2.
     
  The Commission shall adopt the list using the template set out in Annex Ia and in accordance with the advisory procedure referred to in Article 13(2).

3.
     
  The Commission shall update and publish, including on the internet, the information included in the list in a timely manner. The Commission shall remove from the list the names of the importers that, in case of inadequate remedial action by the responsible importers, are no longer recognised as responsible importers by Member States in accordance with Article 14(3).

Amendment 43

Proposal for a regulation

Article 7 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Article 7b |
| | Due diligence obligations applicable to smelters and refiners |
| | 1.
     
  Smelters and refiners established in the Union which process and import minerals and concentrates thereof shall have an obligation to apply the Union system for supply chain due diligence or a due diligence system recognised as equivalent by the Commission. |
| | 2.
     
  The Member States competent authorities shall ensure the proper application of the European due diligence system by smelters and refiners. If there is a failure to comply with these obligations, the authorities shall notify the fact to the smelter or refiner, and shall ask them to take corrective measures in order to comply with the European due diligence system. In the event of a persistent failure to comply, the Member States competent authorities shall impose penalties for the infringement of this Regulation. These penalties shall cease when the smelter or refiner complies with the provisions of this Regulation. |

Text proposed by the Commission

Amendment

Article 7b

Due diligence obligations applicable to smelters and refiners

1.
     
  Smelters and refiners established in the Union which process and import minerals and concentrates thereof shall have an obligation to apply the Union system for supply chain due diligence or a due diligence system recognised as equivalent by the Commission.

2.
     
  The Member States competent authorities shall ensure the proper application of the European due diligence system by smelters and refiners. If there is a failure to comply with these obligations, the authorities shall notify the fact to the smelter or refiner, and shall ask them to take corrective measures in order to comply with the European due diligence system. In the event of a persistent failure to comply, the Member States competent authorities shall impose penalties for the infringement of this Regulation. These penalties shall cease when the smelter or refiner complies with the provisions of this Regulation.

Amendment 44

Proposal for a regulation

Article 8 — paragraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| 1.   On the basis of the information provided by the Member States in their reports as referred to in Article 15, the Commission shall adopt and make publicly available a decision listing the names and addresses of responsible smelters and refiners
  of minerals within the scope of this Regulation
  . | 1.   On the basis of the information provided by the Member States in their reports as referred to in Article 15, the Commission shall adopt and make publicly available a decision listing the names and addresses of responsible smelters and refiners. |

Text proposed by the Commission

Amendment

1.   On the basis of the information provided by the Member States in their reports as referred to in Article 15, the Commission shall adopt and make publicly available a decision listing the names and addresses of responsible smelters and refiners
  of minerals within the scope of this Regulation
  .

1.   On the basis of the information provided by the Member States in their reports as referred to in Article 15, the Commission shall adopt and make publicly available a decision listing the names and addresses of responsible smelters and refiners.

Amendment 45

Proposal for a regulation

Article 8 — paragraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| 2.   The Commission shall identify on the list referred to in paragraph 1 those responsible smelters and refiners that source — at least partially — from conflict-affected and high-risk areas. | 2.   The Commission shall identify on the list referred to in paragraph 1 those responsible smelters and refiners that source — at least partially — from conflict-affected and high-risk areas.
  This list shall be drawn up taking into account existing equivalent industry, governmental or other due diligence schemes covering the minerals and metals within the scope of this Regulation. |

Text proposed by the Commission

Amendment

2.   The Commission shall identify on the list referred to in paragraph 1 those responsible smelters and refiners that source — at least partially — from conflict-affected and high-risk areas.

2.   The Commission shall identify on the list referred to in paragraph 1 those responsible smelters and refiners that source — at least partially — from conflict-affected and high-risk areas.
  This list shall be drawn up taking into account existing equivalent industry, governmental or other due diligence schemes covering the minerals and metals within the scope of this Regulation.

Amendment 46

Proposal for a regulation

Article 8 — paragraph 3

| Text proposed by the Commission | Amendment |
| --- | --- |
| 3.   The Commission shall adopt the list
  in accordance with
  the template in Annex II and the
  regulatory
  procedure referred to in Article 13(2). The OECD Secretariat shall be consulted. | 3.   The Commission shall adopt the list
  using
  the template in Annex II and
  in accordance with
  the
  advisory
  procedure referred to in Article 13(2). The OECD Secretariat shall be consulted. |

Text proposed by the Commission

Amendment

3.   The Commission shall adopt the list
  in accordance with
  the template in Annex II and the
  regulatory
  procedure referred to in Article 13(2). The OECD Secretariat shall be consulted.

3.   The Commission shall adopt the list
  using
  the template in Annex II and
  in accordance with
  the
  advisory
  procedure referred to in Article 13(2). The OECD Secretariat shall be consulted.

Amendment 47

Proposal for a regulation

Article 8 — paragraph 4

| Text proposed by the Commission | Amendment |
| --- | --- |
| 4.   The Commission shall update the information included in the list in a timely manner. The Commission shall remove from the list the names of the smelters and refiners that are no longer recognised as responsible importers by Member States in accordance with Article 14(3), or the names of the smelters and refiners in the supply chain of the no longer recognised responsible importers. | 4.   The Commission shall update
  and publish
  ,
  including on the internet,
  the information included in the list in a timely manner. The Commission shall remove from the list the names of the smelters and refiners that are no longer recognised as responsible importers by Member States in accordance with Article 14(3), or the names of the smelters and refiners in the supply chain of the no longer recognised responsible importers. |

Text proposed by the Commission

Amendment

4.   The Commission shall update the information included in the list in a timely manner. The Commission shall remove from the list the names of the smelters and refiners that are no longer recognised as responsible importers by Member States in accordance with Article 14(3), or the names of the smelters and refiners in the supply chain of the no longer recognised responsible importers.

4.   The Commission shall update
  and publish
  ,
  including on the internet,
  the information included in the list in a timely manner. The Commission shall remove from the list the names of the smelters and refiners that are no longer recognised as responsible importers by Member States in accordance with Article 14(3), or the names of the smelters and refiners in the supply chain of the no longer recognised responsible importers.

Amendment 48

Proposal for a regulation

Article 9 — paragraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| 2.   The Commission shall make a decision to publish, including on the internet, a list of competent authorities
  in accordance with
  the template in Annex III and the
  regulatory
  procedure referred to in
  paragraph 2 of
  Article 13. The Commission shall update the list regularly. | 2.   The Commission shall make a decision to publish, including on the internet, a list of competent authorities
  using
  the template in Annex III and
  in accordance with
  the
  advisory
  procedure referred to in Article 13
  (2)
  . The Commission shall update the list regularly. |

Text proposed by the Commission

Amendment

2.   The Commission shall make a decision to publish, including on the internet, a list of competent authorities
  in accordance with
  the template in Annex III and the
  regulatory
  procedure referred to in
  paragraph 2 of
  Article 13. The Commission shall update the list regularly.

2.   The Commission shall make a decision to publish, including on the internet, a list of competent authorities
  using
  the template in Annex III and
  in accordance with
  the
  advisory
  procedure referred to in Article 13
  (2)
  . The Commission shall update the list regularly.

Amendment 151

Proposal for a regulation

Article 10 — paragraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| 1.   The competent authorities of the Member States shall carry out appropriate ex-post checks in order to ensure whether
  self-certified
  responsible importers of minerals and metals within scope of this Regulation comply with the obligations set out in Articles 4, 5, 6 and 7. | 1.   The competent authorities of the Member States shall carry out appropriate ex-post checks in order to ensure whether responsible importers of minerals and metals within the scope of this Regulation comply with the obligations set out in Articles 4, 5, 6 and 7. |

Text proposed by the Commission

Amendment

1.   The competent authorities of the Member States shall carry out appropriate ex-post checks in order to ensure whether
  self-certified
  responsible importers of minerals and metals within scope of this Regulation comply with the obligations set out in Articles 4, 5, 6 and 7.

1.   The competent authorities of the Member States shall carry out appropriate ex-post checks in order to ensure whether responsible importers of minerals and metals within the scope of this Regulation comply with the obligations set out in Articles 4, 5, 6 and 7.

Amendment 49

Proposal for a regulation

Article 10 — paragraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| 2.   The checks referred to in paragraph 1 shall be conducted by taking a risk-based approach. In addition, checks
  may
  be conducted when a competent authority is in possession of relevant information, including on the basis of substantiated concerns provided by third parties, concerning the compliance by a responsible importer with this Regulation. | 2.   The checks referred to in paragraph 1 shall be conducted by taking a risk-based approach. In addition, checks
  shall
  be conducted when a competent authority is in possession of relevant information, including on the basis of substantiated concerns provided by third parties, concerning the compliance by a responsible importer with this Regulation. |

Text proposed by the Commission

Amendment

2.   The checks referred to in paragraph 1 shall be conducted by taking a risk-based approach. In addition, checks
  may
  be conducted when a competent authority is in possession of relevant information, including on the basis of substantiated concerns provided by third parties, concerning the compliance by a responsible importer with this Regulation.

2.   The checks referred to in paragraph 1 shall be conducted by taking a risk-based approach. In addition, checks
  shall
  be conducted when a competent authority is in possession of relevant information, including on the basis of substantiated concerns provided by third parties, concerning the compliance by a responsible importer with this Regulation.

Amendment 51

Proposal for a regulation

Article 12 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Article 12a |
| | In order to create clarity and certainty for and consistency among economic operators, in particular SMEs, the Commission, in consultation with the European External Action Service and the OECD, shall prepare non-binding guidelines in the form of a handbook for companies, explaining how best to apply the criteria for those areas that may fall within the scope of this Regulation. This handbook shall be based on the definition of conflict-affected and high-risk areas as laid down in Article 2(e) of this Regulation and take into account the OECD Due Diligence Guidance in this field. |

Text proposed by the Commission

Amendment

Article 12a

In order to create clarity and certainty for and consistency among economic operators, in particular SMEs, the Commission, in consultation with the European External Action Service and the OECD, shall prepare non-binding guidelines in the form of a handbook for companies, explaining how best to apply the criteria for those areas that may fall within the scope of this Regulation. This handbook shall be based on the definition of conflict-affected and high-risk areas as laid down in Article 2(e) of this Regulation and take into account the OECD Due Diligence Guidance in this field.

Amendment 52

Proposal for a regulation

Article 13 — paragraph 2 — subparagraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| Where the opinion of the committee is to be obtained by written procedure, that procedure shall be terminated without result when, within the time-limit for delivery of the opinion, the chair of the committee so decides or a simple majority of committee members so request. | deleted |

Text proposed by the Commission

Amendment

Where the opinion of the committee is to be obtained by written procedure, that procedure shall be terminated without result when, within the time-limit for delivery of the opinion, the chair of the committee so decides or a simple majority of committee members so request.

deleted

Amendment 53

Proposal for a regulation

Article 13 — paragraph 2 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (2a)
     
  Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. |

Text proposed by the Commission

Amendment

(2a)
     
  Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Amendment 55

Proposal for a regulation

Article 15 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Article 15a




  Accompanying measures




  1.
     
  The Commission shall submit a legislative proposal, as appropriate, within the transitional period setting up accompanying measures in order to enhance the effectiveness of this Regulation in line with the Joint Communication to the European Parliament and the Council entitled ‘Responsible sourcing of minerals originating in conflict-affected and high risk areas. Towards an integrated EU approach’ (JOIN (2014)0008).




  Accompanying measures to ensure an integrated EU approach to the duty of responsible sourcing shall foresee:










  (a) | support for responsibly sourcing enterprises in the form of incentives, technical assistance and guidance to enterprises, taking into account the situation of small and medium-sized enterprises and their position in the supply chain, in order to facilitate compliance with the requirements of this Regulation; |

Text proposed by the Commission

Amendment

Article 15a

Accompanying measures

1.
     
  The Commission shall submit a legislative proposal, as appropriate, within the transitional period setting up accompanying measures in order to enhance the effectiveness of this Regulation in line with the Joint Communication to the European Parliament and the Council entitled ‘Responsible sourcing of minerals originating in conflict-affected and high risk areas. Towards an integrated EU approach’ (JOIN (2014)0008).

Accompanying measures to ensure an integrated EU approach to the duty of responsible sourcing shall foresee:

(a)

support for responsibly sourcing enterprises in the form of incentives, technical assistance and guidance to enterprises, taking into account the situation of small and medium-sized enterprises and their position in the supply chain, in order to facilitate compliance with the requirements of this Regulation;

| (b) | ongoing policy dialogues with third countries and other stakeholders, including the possibility of harmonization with national and regional certification systems and cooperation with public-private initiatives; |
| --- | --- |

(b)

ongoing policy dialogues with third countries and other stakeholders, including the possibility of harmonization with national and regional certification systems and cooperation with public-private initiatives;

| (c) | continued, targeted development cooperation with third countries, in particular aid for the marketing of non-conflict minerals and placing local enterprises in a better position to comply with this Regulation; |
| --- | --- |

(c)

continued, targeted development cooperation with third countries, in particular aid for the marketing of non-conflict minerals and placing local enterprises in a better position to comply with this Regulation;

| (d) | close cooperation with Member States for the launching of complementary initiatives in the area of consumer, investor and customer information and further incentives for responsible business conduct and performance clauses in procurement contracts signed by the national authorities under the terms of Directive 2014/24/EU of the European Parliament and of the Council

   (1a)

  . |
| --- | --- |

(d)

close cooperation with Member States for the launching of complementary initiatives in the area of consumer, investor and customer information and further incentives for responsible business conduct and performance clauses in procurement contracts signed by the national authorities under the terms of Directive 2014/24/EU of the European Parliament and of the Council

   (1a)

  .

2.
     
  The Commission shall present an annual performance report of the accompanying measures implemented pursuant to paragraph 1 and of their impact and effectiveness.

Amendment 56

Proposal for a regulation

Article 16 — paragraph 1 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | This Regulation shall apply from...

   (*) |

Text proposed by the Commission

Amendment

This Regulation shall apply from...

   (*)

Amendment 59

Proposal for a regulation

Annex II — Column C a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | Column Ca: Type of mineral |

Text proposed by the Commission

Amendment

Column Ca: Type of mineral

---

(1)  The matter was referred back to the committee responsible for reconsideration pursuant to Rule 61(2), second subparagraph (A8-0141/2015).

(1bis)  
  Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups (OJ L 330, 15.11.2014, p. 1).

(12)  ‘Armed groups and security forces’ as defined in Annex II of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Second Edition, OECD Publishing (OECD (2013). http://dx.doi.org/10.1787/9789264185050-en.

(12)  ‘Armed groups and security forces’ as defined in Annex II of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Second Edition, OECD Publishing (OECD (2013). http://dx.doi.org/10.1787/9789264185050-en.

(13)  
  Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (OJ L 302, 19.10.1992, p. 1).

(1a)  
  Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).

(*)  
  Two years after the date of entry into force of this Regulation

---