P8_TC1-COD(2018)0231

Position of the European Parliament adopted at first reading on 12 February 2019 with a view to the adoption of Regulation (EU) …/… of the European Parliament and of the Council establishing the Programme for single market, competitiveness of enterprises, including small and medium-sized enterprises, and European statistics and repealing Regulations (EU) No 99/2013, (EU) No 1287/2013, (EU) No 254/2014, (EU) No 258/2014, (EU) No 652/2014 and (EU) 2017/826

(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 43(2), Article 168(4)(b) and Articles 114, 173 and 338 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 (1),

Having regard to the opinion of the Committee of the Regions (2),

Acting in accordance with the ordinary legislative procedure (3),

Whereas:

(1) The internal market is a cornerstone of the Union. Since its inception, it has proved a major contributor to growth, competitiveness and employment. It has generated new opportunities and economies of scale for European businesses, notably micro, small and medium-sized enterprises (SMEs), and strengthened their industrial competitiveness, and it should continue benefitting all citizens equally. The internal market contributed to the creation of jobs and offered greater choice at lower prices for consumers while guaranteeing the high quality of products and services offered. It continues to be an engine for building a more integrated market and a stronger, more balanced and fairer economy. It is one of the Union's major achievements and its best asset in an increasingly global world, as well as being a core element in achieving the transformation into a resource- and energy-efficient sustainable economy to respond to the increasing pressure of climate change. [Am. 1]

(2) The internal market has to continuously adapt to a rapidly changing environment of digital revolution and globalisation. A new era of digital innovation continues to provide opportunities and benefits to the economy and to daily lives, especially for businesses and individuals, creates new products and business models but equally constitutes a challenge to regulation and enforcement, and to consumer protection and safety. [Am. 2]

(3) The substantial body of Union legislation underpins the functioning of the internal market. This concerns, in particular, competitiveness, standardisation, mutual recognition, consumer protection, market surveillance and food chain regulation but also rules concerning business, trade and financial transactions and the promotion of fair competition providing for a level playing field essential for the functioning of the internal market for the benefit of consumers and businesses. [Am. 3]

(4) Still, unjustified, discriminatory and disproportionate barriers to the proper functioning of the internal market, remain and the new obstacles emerge. Adopting rules is only a first step, but making them work is as important. This Inadequate enforcement of existing rules, barriers to free movement of goods and services, and low levels of cross-border public procurement limit the opportunities for businesses and consumers. Addressing such obstacles is ultimately a matter of citizens' trust in the Union, in its capacity to deliver, and its ability to create quality jobs and growth while protecting the public interest. [Am. 4]

(5) Several programmes for Union action exist currently in the fields of competitiveness of enterprises including SMEs, especially micro, small and medium-sized enterprises, consumer protection, customers and end-users in financial services, policy making in financial services and food chain. Some additional activities are financed directly under the internal market budget lines. It is necessary to streamline and exploit synergies between various actions and provide for a more flexible, transparent, simplified and agile framework to finance activities aiming to achieve a well-functioning and sustainable internal market in the most cost-efficient manner. It is therefore necessary to establish a new programme bringing together activities financed previously under those other programmes and other relevant budget lines that draws the lessons to be learned from existing programmes. The programme should also include new initiatives which aim to improve the functioning of the internal market, avoiding duplication with related Union programmes and actions. [Am. 5]

(6) The development, production and dissemination of European statistics are subject to a separate European Statistical Programme established by Regulation (EU) No 99/2013 of the European Parliament and of the Council (4). In order to provide continuity of producing and disseminating European statistics, the new programme should also include activities covered by the existing European Statistical Programme by providing a framework for the collection of data, as well as for the development, production, the correct use, application and dissemination of European statistics. The new programme should establish the financial framework for European statistics to provide high-quality, comparable and reliable European statistics on Europe, also on matters such trade and migration, in order to underpin the design, implementation, monitoring and evaluation of all Union policies in accordance with Article 3 of the Treaty on European Union (TEU). [Am. 6]

(7) It is therefore appropriate to establish a the Single Market Programme for strengthening the internal market, and improving its functioning in the fields of competitiveness and sustainability of enterprises, including especially micro, small and medium-sized enterprises, standardisation, market surveillance, consumer protection, food supply chain and European statistics (the ‘Programme’). The Programme should be established for the duration of seven years from 2021 to 2027. [Am. 7]

(8) The Programme should support the design, implementation and enforcement of Union legislation underpinning the proper functioning of the internal market. The Programme should support the creation of the right conditions to empower all actors of the internal market: businesses, citizens including consumers, and employees, civil society and public authorities. To that end, the Programme should aim to ensure the competitiveness and sustainability of businesses, notably SMEs, especially micro, small and medium-sized enterprises, including those in the tourism sector, but also supporting the enforcement of consumer protection and safety rules as well as environmental and social standards, and by raising the awareness of businesses and individuals by providing them with the right tools, appropriate information and assistance, knowledge and competence to make informed decisions and strengthen their participation in Union’s policy-making. Furthermore, the Programme should aim to enhance regulatory and administrative cooperation, notably through training programmes, exchange of best practices, building of knowledge and competence bases, including the use of strategic public procurement. The Programme should also aim to support the development of high-quality international standards that underpin the implementation of Union legislation. This also includes standard setting in the field of financial reporting and audit, thereby contributing to the transparency and well-functioning of the Union’s capital markets and to enhancing investor protection. The Programme should support rulemaking and standard setting also by ensuring the broadest possible stakeholder involvement. The objective of the Programme should also be to support the implementation and enforcement of Union legislation providing for a high level of health for humans, animals and plants along the food chain and the improvement of the welfare of animals. [Am. 8]

(9) A modern internal market that is based on principles of fairness, transparency and mutual trust, promotes competition and benefits consumers, businesses and employees. Making better use of the ever evolving internal market in services should help European businesses create jobs and grow across borders, offer wider choice of services at better prices, and maintain high standards for consumers and workers. To achieve this, the Programme should contribute to better monitoring of internal market developments, including of the impact of new technological development, the identification and the removal of remaining unjustified, discriminatory and disproportionate barriers, and to ensure a that the regulatory framework that can accommodate new innovative business models, including collaborative economy models and social entrepreneurship, while ensuring a high-level of social protection, including for entrepreneurs. [Am. 9]

(10) Regulatory obstacles in the internal market have been removed for many industrial products through prevention mechanisms, the adoption of common rules and standards, and, where no such Union rules exist, through the principle of mutual recognition. In areas where no Union legislation exists, the principle of mutual recognition means that goods that are lawfully marketed in one Member State enjoy the right to free movement and can be sold in another Member State, unless the Member State concerned has grounds to oppose the marketing of the goods, provided that such a restriction is non-discriminatory, justified by legitimate public interest objectives, as set out in Article 36 of the Treaty on the Functioning of the European Union (TFEU) or recognised by the case-law of the Court of Justice, and proportionate to the aim pursued. However, inadequate application of mutual recognition such as unjustified or disproportionate restrictions makes it harder for companies to access markets in other Member States. Despite the high degree of market integration in the area of goods, this leads to lost opportunities for the economy at large. The revision of Regulation (EU) No xxx/ 2018 on Mutual Recognition will help to boost the economic benefits in this area. The Programme should therefore aim to improve the application of mutual recognition in the area of goods, realising its full potential and to reduce the number of illegal and non-compliant goods entering the market, through targeted awareness raising and training, support for Product Contact Points and better cooperation among competent authorities for mutual recognition and by strengthening market surveillance. [Am. 10]

(11) New regulatory and enforcement challenges relate to a rapidly changing environment of the digital revolution, concerning issues such as cybersecurity, data protection and privacy, internet of things or artificial intelligence and related ethical standards. Should damage occur, stringent rules on product safety and clarity with regard to liability, as well as strict enforcement of rules are essential to ensure a policy response that allows European citizens, including consumers and businesses, to benefit from such rules. The Programme should therefore contribute to the rapid adaptation and better enforcement of a Union product liability regime which fosters innovation whilst ensuring the safety and security of users. [Am. 11]

(12) Placing on the market of products that are not compliant with Union law puts regardless of whether such products are placed on the market by traditional or electronic means and regardless of whether they are produced in the Union or enter it from third countries, puts Union citizens and consumers at risk. Economic operators selling compliant products face distorted competition from those who do not comply at disadvantage and may endanger consumers. Many entrepreneurs disregard with the rules either through due to lack of knowledge or intentionally to gain a competitive advantage. Market surveillance authorities are often underfunded and constrained by national boundaries, while entrepreneurs trade at Union or even global level. In particular, in the case of e-commerce, market surveillance authorities have great difficulties in tracing non-compliant products imported from third countries and identifying the responsible entity within their jurisdiction or conducting risk-assessments or safety tests due to the lack of physical access to products. The Programme should therefore seek to strengthen product compliance by strengthening market surveillance, providing the right incentives to entrepreneursclear, transparent and comprehensive rules to economic operators, raising awareness of applicable Union product safety rules, intensifying compliance checks and, including through systematic use of checks on samples of products representing significant percentages of each type of products placed on the market and mystery shopping carried out by market surveillance authorities as well as by promoting closer cross-border cooperation among enforcement authorities. The Programme should also contribute to the consolidation of the existing framework for market surveillance activities, encourage joint actions of market surveillance authorities from different Member States, improve the exchange of information and promote convergence and closer integration of market surveillance activities, in particular by ensuring that the new requirements introduced by the Regulation (EU) 2018/858 of the European Parliament and of the Council (5) are strictly enforced so as to avoid the sale of non-compliant products to European citizens. The Programme should thus strengthen the capacity of the market surveillance authorities across the Union and contribute to a greater homogeneity between Member States, equally benefitting from the Internal Market in terms of economic prosperity and sustainable growth, while addressing their specific needs in a tailored manner. [Am. 12]

(13) Product safety is a common concern. The conformity assessment bodies verify whether products meet the safety requirements before they are placed on the market. It is therefore of paramount importance that the conformity assessment bodies are reliable and competent. The Union has put in place a system of accreditation of the conformity assessment bodies, verifying their competence, impartiality and independence. However, Regulation (EC) No 765/2008 of the European Parliament and of the Council (6) has been implemented in many different ways at national level. Those differences concern the distribution of competences between market surveillance authorities and the internal coordination mechanisms at national level, the level of deployed financial resources dedicated to market surveillance and the market surveillance strategies and approaches, as well as the powers with regard to non-compliant products and the level of penalties for infringements, resulting in the fragmented enforcement of Union harmonisation legislation. This fragmentation has led to market surveillance being more rigorous in some Member States than in others, potentially undermining the deterrent effect of the legislation, creating an unequal playing field among businesses in some Member States and resulting in imbalances in the level of product safety in the Union. The main challenge is now to keep the accreditation system in line with the latest state of the art and to ensure that it is applied with the same stringency across the Union. The Programme should therefore support measures to ensure that conformity assessment bodies continue fulfilling the regulatory requirements, especially through the use of third-party assessment in order to improve impartial and independent procedures, and to enhance the European accreditation system, in particular in new policy areas, by supporting the uniformity of checks and penalties, as well as the European co-operation for Accreditation (EA) referred to in Article 14 of Regulation (EC) No 765/2008. [Am. 13]

(14) The development of e-commerce could raise certain issues regarding the protection of health and safety of end users from non- compliant products. As consumer markets know no borders with the development of online trade and travel services, it is important to ensure that consumers residing in the Union can benefit from adequate equivalent protection when importing goods and services from economic operators based in third countries. The Programme should therefore allow supporting cooperation with relevant bodies located in key trading third country partners of the Union where necessary with regard to the exchange of information on non-compliant products, on recent scientific developments and new technologies, on emerging risks and on other aspects related to control activities. [Am. 14]

(15) Public procurement is used by public authorities to ensure value for public money spent and to contribute to a more innovative, sustainable, inclusive and competitive internal market, including, where this is in accordance with applicable Union law, by applying criteria other than simply the lowest price or cost effectiveness, taking into account, among others, qualitative, environmental, fair trade and social aspects and by facilitating the division of tenders into lots for large infrastructure. Directives 2014/23/EU (7), 2014/24/EU (8) and 2014/25/EU (9) of the European Parliament and of the Council provide the legal framework for the integration and effective functioning of the public procurement markets representing 14 % of Union’s gross domestic product, to the benefit of public authorities, businesses as well as citizens, including consumers. Correctly implemented public procurement rules are a crucial tool for strengthening the single market and for boosting the growth of Union companies and Union jobs. The Programme should therefore support measures to ensure a wider uptake of strategic public procurement, the professionalisation of public buyers, improved to facilitate and improve access to procurement markets for SMEs and micro enterprises, in particular through advisory services and training, increase of transparency, integrity and better data, boosting the digital transformation of procurement and promotion of joint procurement, through strengthening a partnership approach with the Member States, improving data gathering and data analysis including through development of dedicated IT tools, supporting exchange of experiences and good practices, referencing European and international standards, providing guidance, pursuing beneficial trade agreements, strengthening cooperation among national authorities and launching pilot projects. [Am. 15]

(16) In order to meet the objectives of the Programme and to facilitate the lives of citizens and businesses, high-quality user-centric public services, increasingly digitally-oriented and fully accessible, need to be put in place and e-administration and e-government efforts further boosted while ensuring appropriate data protection and privacy. This implies that public administrations will need to start working in new, more innovative ways, in order to bring down silos between the different parts of their administrations, and to engage in the co-creation of these public services with citizens and businesses. Moreover, the continuous and steady increase of cross-border activities in the internal market requires provision the availability of up-to-date, accurate and easy to understand information on the rights of businesses and citizens, but also information explaining the administrative formalities, as well as simplifying them. In addition, provision of legal advice and helping to solve problems which occur at cross national level becomes essential. Furthermore, connecting national administrations in a simple and efficient manner, supporting public authorities in achieving those objectives, as well as evaluating how the internal market works on the ground is necessary. The existing internal market governance tools already play an important role in facilitating the achievement of those objectives. To this end, and in order to keep up with technology and market developments, as well as with new regulatory and enforcement challenges, the Programme should support the enhancement of quality, visibility and transparency and of the reliability of the internal market governance tools. The Programme should therefore support, amongst others the following existing internal market governance tools: the Your Europe Portal which should be a backbone of the upcoming Single Digital Gateway, Your Europe Advice, SOLVIT, the Internal Market Information system and the Single Market Scoreboard in order to improve citizens' daily lives and businesses' ability to trade across borders. [Am. 16]

(17) The Programme should support the development of the Union regulatory framework in the area of company law and corporate governance, as well as contract law, with a view to make business, especially SMEs, more efficient and competitive while providing protection for stakeholders affected by company operations, and to react to emerging policy challenges. It should also ensure appropriate evaluation, implementation and enforcement of the relevant acquis, inform and assist stakeholders and promote information exchange in the area. The Programme should further support the Commission's initiatives in favour of a clear and adapted legal framework for the data economy and innovation. Those initiatives are necessary to enhance legal certainty with regard to contractual and extra contractual law, in particular with regard to liability and ethics in the context of emerging technologies, such as internet of things, artificial intelligence, robotics, 3D Printing. The Programme should aim at stimulating the development of data-driven business whilst ensuring a high level of privacy protection, as it will be decisive for the position of the Union economy in a global competition. [Am. 17]

(18) The Programme should also promote the correct and full implementation and application of the Union legal framework for anti-money laundering and countering terrorism financing by the Member States and the development of future policies to address new challenges in the field. It should also support the relevant activities of the international organisations of European interest, such as the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism of the Council of Europe.

(19) The implementation and development of the internal market in the area of financial services, financial stability and the Capital Markets Union including sustainable finance, highly depends on the evidence based policy measures taken by the Union. In order to achieve this objective, the Commission should have an active role in constantly monitoring financial markets and financial stability, assessing the implementation of Union legislation by Member States, evaluating whether the existing legislation is fit for purpose and identifying potential areas of action where new risks emerge, with a continuous involvement of stakeholders throughout the policy cycle. Such activities rely on the production of analyses, studies, training materials, surveys, conformity assessments, evaluations and statistics and are supported by IT systems and communication tools.

(20) Considering that the internal market as set out in Article 3 of the TFEU European Union includes a system of rules ensuring that competition is not distorted in the internal market, the Programme should contribute to support the Union’s competition policy, networks and by improving and reinforcing the cooperation with the European Competition Network and with national authorities and courts, including by way of strengthening international cooperation as well as outreach to a wider group of stakeholders in communicating and explaining the rights, benefits and obligations of Union competition policy. The Programme should in particular help the Commission to enhance its analysis and assessment of market developments, also through extensive use of sector inquiries and by systematic sharing of results and best practices within the European Competition Network. This should contribute to ensuring fair competition and a level playing field, also at international level, and empowering businesses, in particular SMEs, and consumers in order to reap the benefits of the Single Market. [Am. 18]

(21) The Programme in particular needs to tackle the radical implications for competition and the functioning of the internal market resulting from the ongoing transformation of the economy and business environment, in particular through the exponential growth and use of data, taking account of the increasing recourse to artificial intelligence, big data and algorithms and other IT tools and expertise by companies and their advisors. It is also essential that the Programme supports networks and cooperation a wider and deeper engagement with Member State authorities and courts, considering that undistorted competition and the functioning of the internal market depend critically on action by those entities. In view of the particular role of competition policy in preventing harm to the internal market resulting from anticompetitive conduct beyond the Union’s border, the Programme should also support cooperation with third country authorities, as appropriate. Finally, widening outreach activities is necessary in order to allow more citizens and businesses to reap the full benefits of fair competition in the internal market. In particular, it is necessary to demonstrate the tangible benefits of the Union`s competition policy to the European citizens through engagement with civil society groups and relevant directly impacted stakeholders. Given that a number of initiatives in the Programme are new and that the competition part of the Programme is particularly affected by dynamic and rapid developments in the conditions of competition in the internal market, notably relating to digital developments, Artificial Intelligence, algorithms, big data, cybersecurity and forensic technology, the pace and magnitude of which are difficult to estimate, it is anticipated that flexibility will be required to face the evolving needs under this part of the Programme. [Am. 19]

(22) Strengthening the competitiveness and sustainability of European enterprises while reassuring an effective level playing field and an open and competitive internal market is of outmost importance. SMEs are the engine of the European economy making up 99 % of all businesses in Europe, providing two thirds of jobs, and contributing substantially to the creation of new jobs quality jobs in all sectors with a regional and local dimension, and hence social cohesion. SMEs are instrumental in pursuing the energy transition and contributing to the achievement of the Union's climate objectives deriving from the Paris Agreement. The Programme should therefore enhance their capacity to develop environmentally-friendly high quality products and services and support their efforts to increase resource-efficiency, in line with the ‘energy efficiency first’ principle. In doing so, the Programme also contributes to improve Union SMEs competitiveness on the global market. [Am. 20]

(23) SMEs share common challenges that do not affect larger firms to the same extent to obtain finance, to find skilled work force, to alleviate administrative burden, to take-up creativity and innovation, to access markets and foster internationalisation activities. The Programme should address such market failures proportionally, while not unduly distorting competition in the internal market. The Programme should in particular create appropriate conditions to introduce technological and organisational innovation in the production processes, paying attention to specific forms of SMEs such as micro enterprises, enterprises engaged in craft activities, the self-employed, the liberal professions and social economy enterprises. Attention should also be paid to potential, new, young and female entrepreneurs, as well as to other specific target groups, such as older people, migrants and entrepreneurs belonging to socially disadvantaged or vulnerable groups such as persons with disabilities. [Am. 21]

(23a) The programme should support and promote a culture of innovation, developing an ecosystem capable of encouraging business start-ups and nurturing their growth, focusing on micro-enterprises and innovative SMEs able to meet the challenges of an increasingly competitive and fast-moving environment. Radically new innovation processes require the development of an open innovation model with an increase in collaborative research and the sharing of knowledge and intellectual property between different organisations. The Programme should accordingly seek to support the innovation process by incorporating new collaborative business models, focusing on networking and the sharing of knowledge and resources within inter-organisational communities. [Am. 22]

(23b) The Programme should address such market failures proportionally, paying special attention to actions that benefit directly SMEs and enterprise networks, and while not unduly distorting competition in the internal market. [Am. 23]

(24) Many of the Union's competitiveness problems involve SMEs' difficulties in obtaining access to finance because they lack information, struggle to demonstrate their credit-worthiness and have insufficient collateral or simply due to low awareness of existing mechanism to support their activities at Union, national or local level. Additional financing challenges arise from the smaller size of micro-enterprises and SMEs' need to stay competitive by engaging e.g. in digitisation, internationalisation and innovation activities and skilling up their workforce. Limited access to finance has a negative effect on businesses creation, growth and survival rates, as well as on the readiness of new entrepreneurs to take over viable companies in the context of a business succession. [Am. 24]

(25) To overcome these market failures and to ensure that SMEs continue to play their role as the foundation for the Union economy's competitiveness, and as a driver for a sustainable economy, small and medium-sized enterprises need extra support through debt and equity instruments to be established under the SME window of the InvestEU Fund established by Regulation […] of the European Parliament and of the Council (10). The loan guarantee facility put in place under former COSME programme established by Regulation (EU) No 1287/2013 of the European Parliament and of the Council (11) has a proven added value and is expected to bring a positive contribution to at least 500 000 SMEs; a successor will be established under the SME window of the InvestEU Fund. More attention should be paid to better communication and public campaigns in order to increase awareness to potential beneficiaries of the availability of the Programme for SMEs. To raise the awareness of Union’s actions supporting SMEs, actions that are wholly or partially funded by this Programme, including intermediaries, should incorporate the European emblem (flag) associated to a sentence acknowledging the support received by this Programme. [Am. 25]

(26) The policy objectives of this Programme will be also addressed through financial instruments and budgetary guarantee under the SME window of the InvestEU Fund. The SME window of the InvestEU Fund should have a central overarching point providing information about the Programme in each Member State, in order to increase the accessibility and awareness of the funds for SMEs. Financial support should be used to address market failures or sub-optimal investment situations, in a proportionate manner and actions should not duplicate or crowd out private financing or distort competition in the internal market, and should clearly offer additionality and enhancing synergies with other European programmes. Actions should have a clear European added value. [Am. 26]

(26a) The actions supported by the InvestEU Fund through the EU compartment or the Member States compartment should not duplicate or replace private funding, or distort competition in the internal market, but, with reference to the local public and private guarantee schemes already operating, should facilitate their integration with such schemes, the overriding objective being to enhance and extend the actual benefits to final recipients, who are SMEs within the meaning of Commission Recommendation 2003/361/EC (12) in order to achieve genuine additionality of the measures. [Am. 27]

(26b) Besides access to finance also access to skills is crucial, including managerial skills and knowledge are critical factors for SMEs to access existing funds, innovate, compete and grow. The delivery of financial instruments as envisaged under InvestEU Fund should therefore be accompanied by the development of appropriate mentoring, coaching schemes and by the delivery of knowledge-based business services. [Am. 28]

(27) The Programme should provide effective support for SMEs throughout their life-cycle, providing assistance ranging from project preparation through to commercialisation and access to the market, and encouraging the creation of business enterprise networks. It should build on the unique knowledge and expertise developed with regard to SMEs and industrial economic and entrepreneurial sectors and on a long experience in working with European, national and regional stakeholders. This support should build on the successful experience of the Enterprise Europe Network as a one-stop-shop to improve SMEs competitiveness and develop their business in the Single Market and beyond. The Network plans to continue delivering services on behalf of other Union programmes, notably for the Horizon2020 programme, using the financial resources of these programmes. It should also support enhanced participation of SMEs representatives’ organisation in the development of Single Market Policy initiative, such as public procurement, standardisation processes and intellectual property regimes. The Network should also increase the number of actions, providing more targeted advice to SMEs, in drafting projects and supporting networking and technological and organisational transition. The Network should also improve cooperation and liaison with other Advisory hubs established in the Digital programme and InvestEU Fund as regards access to finance. The actions for SMEs in the Network should also aim to provide high quality services across Europe, paying particular attention to areas of activities and geographical parts of the Union where the Networks and intermediary stakeholders do not meet expected results. Also the successful mentoring scheme for new entrepreneurs — Erasmus for Young Entrepreneurs — should remain the tool to enable new or aspiring entrepreneurs to gain business and managerial experience by matching with an experienced entrepreneur from another country and thus allow strengthening entrepreneurial talents. The Programme should further strive to grow and extend its geographical coverage and thus offer wider range of matching possibilities to entrepreneurs in complementarity with other Union initiatives where relevant. In order to increase the value added by the promotion of entrepreneurship initiatives, special attention should be paid to micro-enterprises and to those that have benefited the least from the existing programme, and where the culture of entrepreneurship remains at a very basic level, and faces more barriers. Every effort should be made to achieve reasonably geographically balanced distribution of the funds. [Am. 29]

(27a) More effort should be made to reduce the administrative burden and to increase the accessibility of the programmes in order to reduce costs of SMEs and microenterprises due to a complicated application process and participation requirements. Member States should also consider establishing a single information point for undertakings interested in using Union's funds functioning as a one-stop-shop. Evaluation procedure should be as simple and fast as possible in order to allow for timely use of the benefits the Programme offers. [Am. 30]

(28) Clusters are a strategic tool for supporting the competitiveness and scaling-up of SMEs as they offer favourable business environments, increase sustainable development of industry and services and strengthen the economic development of the regions through the creation of quality jobs. Joint Cluster Initiatives should achieve critical mass to accelerate the growth of SMEs. By connecting specialised eco-systems, clusters create new business opportunities for SMEs and integrate them better in European and global strategic value chains. Support should be provided for the development of transnational partnership strategies and the implementation of joint activities, supported by the European Cluster Collaboration Platform. Sustainable partnering should be encouraged with continuation funding if performance and participation milestones are reached. Direct support to SMEs should be channelled through cluster organisations for the following: uptake of advanced technologies, new business models, low-carbon and resource-efficient solutions, creativity and design, skills upgrading, talent attraction, entrepreneurship acceleration, and internationalisation. Other specialised SME support actors should be associated to facilitate industrial transformation and implementations of smart specialisation strategies. The Programme should thus contribute to growth sustainable economic development and build linkages with the Union's (digital) innovation hubs and investments made under Cohesion Policy and Horizon Europe. Synergies with the Erasmus programme can also be explored. [Am. 31]

(28a) The Programme could help build up and/or improve the relationship between micro-enterprises and SMEs and universities, research centres and other institutions involved in knowledge creation and dissemination. This relationship could help improve firms’ abilities to tackle the strategic challenges posed by the new international context. [Am. 32]

(28b) SMEs, owing to their smaller size, face specific obstacles to growth and have mayor difficulties in growing and scaling up some of their business activities. The Union has been providing support to scale up activities focusing on innovation on research mainly through the SME Instrument and the recently European Innovation Council pilot within the Horizon 2020 programme. Based on the working methods and experiences of the SME Instrument, the Single Market Programme should also provide support for scale-up activities by SMEs complimentary to the new EIC with its specific focus on break-through innovation under Horizon Europe. Scale up actions for SMEs under this programme should focus for instance in helping SMEs to scale up through commercialisation, internationalisation and on market driven-opportunities. [Am. 33]

(29) Creativity and innovation, technological and organisational transformation, enhanced sustainability in terms of production processes, in particular resource and energy efficiency, are crucial for the competitiveness of the Union's industrial value chains. They represent catalysts for industrial the modernisation of the business and industry sectors and contribute to smart, inclusive sustainable growth. However, uptake by SMEs is still lagging behind. The Programme should therefore support targeted actions, networks and partnerships for creativity-driven innovation throughout the industrial value chain. [Am. 34]

(29a) Recognising that the SME Instrument under Horizon 2020 has been extremely successful for entrepreneurs through both phase1 and phase2 grants in advancing and their new business idea and testing and developing a prototype. While the selection process is already very rigorous, still many very good projects cannot be financed because of limited financial resources. The implementation in the frame of the Executive Agency for Small and Medium-sized Enterprises (EASME) has been working very efficiently. While the focus of that programme is on high-tech projects, this Program should extend the methodology to any type of scale-up SMEs. [Am. 35]

(29b) The actions for SMEs should also focus in sectors characterised by a significant growth and social potential and with a high proportion of SMEs. Tourism is a singular sector of the Union Economy which contributes substantially to the Union’s GDP and is run mainly by SMEs. The Union should continue and increase actions supporting the specificities of this sector. [Am. 36]

(30) European standards play an important role in the internal market. They are of vital interest for the competitiveness of undertakings, and especially SMEs. They are also a crucial tool to support Union legislation and policies in a number of key areas such as energy transition, climate change and environmental protection, information and communication technology, sustainable use and recycling of resources, innovation, product safety, consumer protection, worker's safety and working conditions and ageing population, thus positively contributing to the society as a whole. However, experience has shown that the speed and timeliness of the elaboration of standards needs to be improved and more efforts need to be made to better involve all relevant stakeholders, including those representing consumers. [Am. 37]

(31) European standardisation activities are governed by Regulation (EU) No 1025/2012 of the European Parliament and of the Council (13) and implemented through a long standing Public-Private-Partnership which is fundamental to achieve the objectives set in that Regulation as well as in general and sectorial Union standardisation policies.

(32) A well-functioning common financial reporting framework is essential for the internal market, for the effective functioning of the capital financial markets and for the realisation of the integrated market for financial services in the context of the Banking Union and the Capital Markets Union. [Am. 38]

(33) In accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (14), International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board and related interpretations from the IFRS Interpretations Committee are to be incorporated into Union law in order to be applied by companies with securities listed on a regulated market in the Union, only if IFRS meet the criteria set out in that Regulation, including the requirement that accounts give a ‘true and fair view’ as laid down in Article 4(3) of Directive 2013/34/EU of the European Parliament and of the Council (15) and that they are conducive to the European public good. Such international accounting standards need to be developed under a transparent and democratically accountable process. IFRS therefore plays a major role in the functioning of the internal market and thus the Union has a direct interest in ensuring that the process through which IFRS are developed and approved delivers standards that are consistent with the requirements of the legal framework of the internal market. It is therefore important to establish appropriate funding arrangements for the IFRS Foundation.

(34) Taking into account the European Financial Reporting Advisory Group's (EFRAG) role in assessing whether IFRS comply with the requirement of Union law and policy, as laid down in Regulation (EC) No 1606/2002, it also is necessary for the Union to ensure EFRAG’s stable financing and thus contribute to its funding. The technical work of EFRAG should be focused on technical advice to the Commission on the endorsement of IFRS as well as on the appropriate participation in the process of development of such IFRS and should ensure that Union interests are adequately taken into account in the international standard-setting process. Those interests should include the notion of ‘prudence’, the maintenance of the requirement of a ‘true and fair view,’ as laid down in Directive 2013/34/EU, and of the European public good as laid down in Regulation (EC) No 1606/2002, taking into account the impact of IFRS on financial stability and the economy. A European Corporate Reporting Lab should also be established as part of the European Financial Reporting Advisory Group (EFRAG), to promote innovation and the development of best practices in corporate reporting. In this forum, companies and investors can share best practices notably in the field of non-financial and sustainability reporting.

(35) In the field of statutory audit, the Public Interest Oversight Board (PIOB) was created in 2005 by the Monitoring Group, an international organisation responsible for monitoring the governance reform of the International Federation of Accountants (IFAC). The role of the PIOB is to oversee the process leading to the adoption of International Standards on Auditing (ISAs) and other public interest activities of the IFAC. It is possible for ISAs to be adopted for their application in the Union provided, in particular, that they have been developed with due process, public oversight and transparency as required under Article 26 of Directive 2006/43/EC of the European Parliament and of the Council (16). Considering the introduction of ISAs in the Union and the key role of the PIOB in ensuring that they fulfil the requirements laid down in Directive 2006/43/EC, it is therefore important to ensure appropriate funding arrangements for the PIOB.

(36) The Union contributes to ensuring a high level of consumer protection, empowering consumers and putting them at the heart of the internal market by supporting and complementing Member States’ policies in seeking to ensure that citizens when acting as consumers can fully reap the benefits of the internal market and that, in so doing, their safety and legal and economic interests are properly protected by means of concrete actions. The Union has also to ensure that consumer and product safety laws are properly and equally enforced on the ground and that businesses enjoy a level playing field with fair competition in the internal market. Moreover, it is necessary to empower, encourage and assist consumers in making sustainable and informed choices, thus contributing to a sustainable, energy and resource efficient and circular economy. [Am. 39]

(37) The Programme should aim to raise the awareness of consumers, businesses, civil society and authorities on Union consumer and safety laws and to empower consumers and their representative organisations at national level and at the Union level notably by supporting the Bureau Européen des Unions de Consommateurs (BEUC) which is the long established and recognised NGO representing consumer interests in relation to all relevant Union policies, and the European Association for the Co-ordination of Consumer Representation in Standardisation (ANEC) which represents consumers interest in relation to standardisation issues. In doing so, particular attention should be given to new market needs regarding the promotion of sustainable consumption and the prevention of in particular to actions to tackle the issue of planned obsolescence of products and to prevent vulnerabilities as well as challenges created by the digitisation of the economy, connected products, internet of things, artificial intelligence and use of algorithms or the development of new consumption patterns and business models, such as the collaborative economy and social entrepreneurship. The Programme should support the development of relevant information on markets, including actions aiming at improving product traceability along the supply chain, quality standards across the Union, and addressing the issue of the dual quality of products, policy challenges, emerging issues and behaviours, and the publication of the Union consumer scoreboards. [Am. 40]

(38) The Programme should support national competent authorities, including those responsible for monitoring product safety, who cooperate notably via the Union’s rapid alert system for dangerous products. It should also support the enforcement of Directive 2001/95/EC of the European Parliament and of the Council (17) and Regulation (EC) No 765/2008 regarding consumer protection and product safety, and the Consumer Protection Cooperation network and international cooperation between the relevant authorities in third countries and in the Union. The Programme should also aim to ensure access for all consumers and traders to quality out of court dispute resolution and online dispute resolution and information on the process for participating in actions seeking redress possibilities, at the lowest cost. [Am. 41]

(39) The Programme should also support a European Consumer Centres Network is assisting which assists consumers to obtain the benefit of their Union consumer rights when they purchase goods and services cross border in the Internal Market and EEA, either on-line or when travelling. The 30 centres strong network, jointly funded by the Union consumer programmes since more than 10 years has proven its added value to strengthen consumers and traders trust in the Internal Market. It deals with more than 100 000 consumers’ requests per year and reaches millions of citizens via its press and online information activities. It is one of the most valued citizens’ assistance network of the Union and most of its centres host contact points for internal market law, such as the Directive 2006/123/EC of the European Parliament and of the Council (18) and its evaluation stresses the importance to continue its operation. European Consumer Centres Network can be also an important source of information about challenges and problems that consumers encounter at local level, which are relevant for Union policy-making and for the protection of the interests of consumers. Therefore, the Programme should allow for the building and enhancing of synergies between consumer representation at local and Union level in order to strengthen consumer advocacy. The network also intends to develop reciprocity arrangements with similar bodies in third countries. [Am. 42]

(40) The fitness check of Union consumer and marketing law carried out by the Commission in May 2017 exposed the need to better enforce rules and facilitate redress when consumers have been harmed by breaches to consumer laws. As a result the Commission adopted a ‘New Deal for Consumers’ in April 2018 to ensure, inter alia, the equal treatment of consumers across the internal market in relation to cross-border cases, such as selling of non-compliant products in the motor vehicles sector, dual quality standards of products or the problems of passengers stranded as a result of the cancellation of a large number of flights, stronger enforcement capacities of Member States, enhanced product safety, increased international cooperation and new possibilities for redress notably through representative actions by qualified entities. The Programme should aim to support consumer policy with awareness raising and knowledge building, capacity building and exchange of best practices of the consumer organisations and consumer protection authorities, networking and development of market intelligence, strengthening the evidence base on the functioning of the internal market for consumers, IT systems and communication tools, inter alia. [Am. 43]

(41) Citizens are particularly affected by the functioning of financial services markets and should, therefore, be further informed on pertinent rights, risks and benefits. These are a key component of the internal market and require a solid framework for regulation and supervision which ensures not only financial stability and a sustainable economy, but also provides a high level of protection to consumers and other financial services end users, including retail investors, savers, insurance policyholders, pension fund members and beneficiaries, individual shareholders, borrowers and SMEs. It is important The Programme should contribute to enhance their capacity to participate in policy making for, also through production and dissemination of clear, complete and user-friendly information about products commercialised in the financial sector markets. [Am. 44]

(42) The Programme should therefore continue to support the specific activities covered by the 2017-2020 Capacity-Building Programme enhancing the involvement of consumers and other financial services end-users in Union policy-making, as set out in Regulation (EU) 2017/826 of the European Parliament and of the Council (19) which continued the pilot programme and preparatory action of the years 2012-2017. This is necessary in order to provide policy makers with views from stakeholders other than financial sector professionals and ensure a better representation of the interests of consumers and other financial services end-users. The Programme should continuously develop its methodology and best practices on how to increase the engagement of consumers and financial-services end-users in order to identify issues relevant for Union policy-making and ensuring the interests of consumers in the area of financial services. This should result in better improve financial services policies, notably thanks to a better public understanding of the issues at stake in financial regulation and enhanced financial literacy. The public resources of this Programme should focus on what is essential for the final users and avoid any form of direct or indirect financial support to commercial activities proposed by private financial operators. [Am. 45]

(43) In the context of a pilot project, between 2012 and 2013, and of a preparatory action, between 2014 and 2016, the Commission awarded grants to two organisations following an annual open call for proposals. The two organisations are Finance Watch, set up with Union grants in 2011 as an international non-profit association under Belgian law, and Better Finance, which is the product of successive re-organisations and rebranding of pre-existing European federations and shareholders since 2009. The Capacity-Building Programme established under Regulation (EU) 2017/826, identifies these same two organisations as sole beneficiaries. It is therefore necessary to continue to co-finance these organisations in the context of the Programme. However, this financing should be subject to review. In this respect, it should be recalled that in the event that the Capacity-Building Programme and corresponding funding are extended beyond 2020 and other potential beneficiaries emerge, the call for applicants should be open to any other organisations that fulfil the criteria, and contribute to the objectives, of the Programme and this in accordance with Regulation (EU) 2017/826. [Am. 46]

(44) A high level of health protection through the food and feed supply chain is necessary to protect consumers as well as to allow the internal market to operate efficiently and smoothly. A safe and sustainable agricultural and food supply chain is a prerequisite for society and for the internal market. As demonstrated by recent incidents such as the fipronil egg contamination in 2017 and the horse meat scandal in 2013, cross border health crises, such as avian influenza or African swine fever and food scares disrupt the functioning of the internal market by limiting the movements of persons and goods and disrupting production. Preventing cross border health crises and food scares is of utmost importance. Therefore, the Programme should support concrete actions, such as establishing emergency measures in the event of crisis situations and unforeseeable events affecting animal and plant health, creating a mechanism for direct access to the emergency aid reserve in order to deal with these emergency situations more promptly, effectively and efficiently. [Am. 47]

(45) The general objective of Union law in the food chain area is to contribute guarantee to a high level of health for humans, animals and plants along the food chain, to support the improvement of the welfare of animals, to contribute to a high level of protection and information for consumers and a high level of protection of the environment, including the preservation of biodiversity, while improving the sustainability of European food and feed productions, cutting food waste, increasing the quality standards of products across the Union, enhancing the competitiveness of the Union food and feed industry and favouring the creation of jobs. [Am. 48]

(46) Considering the specific nature of the actions concerning a high level of health for humans, animals and plants along the food chain special eligibility criteria concerning provision of grants and use of public procurement need to be provided in this Regulation. In particular, by way of derogation from Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (20) (the ‘Financial Regulation’), as an exception to the principle of non-retroactivity, the costs for the emergency measures, due to their urgent and unforeseeable nature, should be eligible and include also costs incurred as a result of a suspected occurrence of a disease or pest provided that that occurrence is subsequently confirmed and notified to the Commission. The corresponding budgetary commitments and the payment of eligible expenditure should be made by the Commission, after signature of the legal commitments and after assessment of the payment applications submitted by the Member States. Costs should also be eligible for protection measures taken in the case of a direct threat to the status of health in the Union as a result of the occurrence or development, in the territory of a third country, a Member State or overseas countries and territories, of certain animal diseases and zoonoses as well as in respect of protection measures, or other relevant activities, taken in support of the health status of plants in the Union. [Am. 49]

(47) In view of the fact the food chain is increasingly globalised, official controls carried out by the Member States are an essential tool for verifying and monitoring that relevant Union requirements are being implemented, complied with and enforced, especially as regards products imported from third countries. The effectiveness and efficiency of official control systems is vital for maintaining a high level of safety for humans, animals and plants along the food chain, as well as consumer confidence, whilst ensuring a high level of protection of the environment and of animal welfare. Union financial support should be made available for such control measures. In particular, a financial contribution should be available to Union reference laboratories in order to help them bear the costs arising from the implementation of work programmes approved by the Commission. Moreover, since the effectiveness of official controls also depends on the availability to the control authorities of well trained staff with an appropriate knowledge of Union law, the Union should be able to contribute to their training and relevant exchange programmes organised by competent authorities. [Am. 50]

(48) High-quality European statistics developed, produced and disseminated under the European Statistical Programme are essential for evidence-based decision making European statistics should be available in a timely manner and should contribute to the implementation of Union policies as reflected in the TFEU, notably strengthened and integrated economic governance, social, economic and territorial cohesion, sustainable development, agricultural policy, the social dimension of Europe and globalisation.

(49) European statistics are indispensable for Union decision-making and for the measurement of the performance and impact of Union initiatives. Therefore, the continued provision and development of European statistics, taking a Union-wide approach and going beyond an internal market perspective should be ensured in order to cover all Union activities and policy areas, including empowering businesses and citizens to take informed decisions.

(50) In view of its horizontal character, the European Statistical Programme is subject to specific requirements and notably those laid down in Regulation (EC) No 223/2009 of the European Parliament and of the Council (21), in particular with regard to the respect of statistical principles, the functioning of the European statistical system and its governance, including the role and tasks assigned to the European statistical system committee and to the Commission, the establishment and implementation of the programming of the statistical activities.

(51) The Programme has been submitted for prior examination to the European Statistical System Committee in accordance with Regulation (EC) No 223/2009, and should be implemented by ensuring effective parliamentary scrutiny. [Am. 51]

(52) The Union and Member States are committed to the implementation of deliver on in being a frontrunner in implementing the United Nations 2030 Agenda for Sustainable Development. By contributing to the achievement of the 2030 Agenda, the Union and Member States will foster a stronger, more sustainable, inclusive, secure and prosperous Europe. The Programme should contribute to the implementation of the 2030 Agenda, including by balancing the economic, social and environmental dimensions of sustainable development, providing to that end clear and visible commitment in its MFF regulation, and mainstreaming the Sustainable Development Goals, as requested by the European Parliament resolutions of the 14 March and 30 May 2018 on the 2021-2027 MFF. [Am. 52]

(53) Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, this Programme should contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the Union budget expenditures supporting climate objectives. Relevant actions will be identified during the Programme's preparation and implementation, and reassessed in the context of the relevant evaluations and review processes.

(54) This Regulation lays down a financial envelope for the Programme which is to constitute the prime reference amount, within the meaning of [reference to be updated as appropriate according to the new inter-institutional agreement: point 17 of 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 (22)], for the European Parliament and the Council during the annual budgetary procedure.

(55) The Agreement on the European Economic Area provides for cooperation in the fields subject to the Programme between the Union and its Member States, on the one hand, and the countries of the European Free Trade Association participating in the European Economic Area, on the other. Provision should also be made to open the Programme to participation by other countries, including the neighbouring countries of the Union and countries which are applying for, are candidates for or are acceding to, membership of the Union. In addition, in the field of European statistics, the Programme should be open to Switzerland in accordance with the Agreement between the European Community and the Swiss Confederation on cooperation in the field of statistics (23).

(56) Third countries which are members of the European Economic Area (EEA) may participate in Union programmes in the framework of the cooperation established under the EEA agreement, which provides for the implementation of the programmes by a decision under that agreement. Third countries may also participate on the basis of other legal instruments. A specific provision should be introduced in this Regulation to grant the necessary rights for and access to the authorising officer responsible, the European Anti-Fraud Office (OLAF) as well as the European Court of Auditors to comprehensively exert their respective competences.

(57) The Financial Regulation applies to this Programme. It lays down rules on the implementation of the Union budget, including rules on grants, prizes, procurement.

(58) The actions implemented under the predecessor programmes and budget lines have proven to be adequate and should be retained. The new actions introduced under the Programme aim to reinforce in particular the well-functioning internal market. In order to provide more simplicity and flexibility in the execution of the Programme and thereby to better deliver on its objectives, the actions should be defined only in terms of overall, generic categories. Lists of indicative activities concerning specific objectives in the area of competitiveness, consumer protection, or specific activities stemming from regulatory requirements, like in the area of standardisation, market surveillance, food chain regulation and European statistics should also be included in the Programme. [Am. 53]

(59) It is necessary to specify certain categories of entities eligible for funding as well as those entities which should be eligible for funding without a call for proposals.

(60) Considering the increasing interconnectivity of the world economy, including the digital economy, the Programme should continue to provide the possibility of involving external experts, such as officials of third countries, representatives of international organisations or economic operators in certain activities. [Am. 54]

(61) It is necessary to indicate special criteria concerning co-financing rules and eligible costs.

(62) In line with the Commission's commitment, set out in its Communication of 19 October 2010 entitled ‘The EU Budget Review’ (24), and in order to provide for coherence and simplification of funding programmes, resources should be shared with other Union funding instruments if the envisaged actions under the Programme pursue objectives which are common to various funding instruments, excluding however double financing.

(63) This Programme should contribute to the overall support addressing specific needs of outermost regions and their integration in the internal market, as recently reconfirmed in the Commission's Communication ‘A stronger and renewed strategic partnership with the EU's outermost regions (25).

(64) The Programme should promote synergies, while avoiding duplication with related Union programmes and actions. The actions under this Programme should be complementary to those of the Customs and Fiscalis Programmes established by Regulation (EU) […] of the European Parliament and of the Council (26) and Regulation (EU) […] of the European Parliament and of the Council (27) which also aim at supporting and improving the functioning of the internal market. [Am. 55]

(65) The Programme should promote synergies and, complementarities and additionality with respect to the SMEs and entrepreneurship support under the European Regional Development Fund established by Regulation (EU) […] of the European Parliament and of the Council (28). Moreover, the SME window of InvestEU Fund established by Regulation (EU) […] of the European Parliament and of the Council (29) will guarantee debt and equity support to enhance access and availability of finance for SMEs and micro enterprises. The Programme should also seek synergies with the Space Programme established by Regulation (EU) […] of the European Parliament and of the Council (30) in respect of encouragement of SMEs to benefit from breakthrough innovation and other solutions developed under those programmes. [Am. 56]

(66) This Programme should promote synergies with Horizon Europe established by Regulation (EU) No […] of the European Parliament and of the Council (31) which aims to promote research and innovation. This should concern in particular complementarity with the actions of the future European Innovation Council for innovative companies, as well as the support of services for SMEs.

(67) The Programme should promote synergies and complementarities with respect to the Digital Europe Programme established by Regulation (EU) […] of the European Parliament and of the Council (32) which aims to promote the digitalisation of the Union economy and the public sector and increased cybersecurity. [Am. 57]

(68) In addition, the Programme, should also seek synergies with the Justice, Rights and Values Fund established by Regulation (EU) […] of the European Parliament and of the Council (33) which aims to support the further development of a European area of justice for the effectiveness of national justice systems, a key enabler of a fair and cost effective European economy.

(69) This Programme should promote synergies with Erasmus programme established by Regulation (EU) […] of the European Parliament and of the Council (34), the European Union Solidarity Fund established by Regulation (EU) […] of the European Parliament and of the Council (35) and the European Social Fund Plus established by Regulation (EU) […] of the European Parliament and of the Council (36) in the area of labour and youth mobility which is essential for the well-functioning internal market.

(70) Finally, food chain actions such as veterinary and phytosanitary measures in case of animal and plant health crises could be complemented by market based interventions from the Union’s Common Agriculture Policy programming established by Regulation (EU) […] of the European Parliament and of the Council (37).

(71) Where relevant The Programme's actions should be used have a clear European added value and to address market failures or sub-optimal investment situations, in a proportionate manner, without duplicating or crowding out private financing and have a clear European added value. [Am. 58]

(72) The implementing powers should be conferred on the Commission in respect of the adoption of work programmes implementing the actions contributing to a high level of health for humans, animals and plants along the food chain. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (38) . [Am. 59]

(73) The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the Union added value, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation. [Am. 60]

(74) To ensure regular monitoring and reporting on the progress achieved and on the effectiveness and efficiency of the Programme, a proper framework for monitoring the actions and results of the Programme should be put in place from the very beginning. Such monitoring and reporting should be based on indicators, measuring the effects of the actions under the Programme against pre-defined baselines. [Am. 61]

(75) Pursuant to paragraph 22 and 23 of the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (39), there is a need to evaluate this Programme on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, should include measurable indicators, as a basis for evaluating the effects of the Programme on the ground. The Commission should draw up an interim evaluation report on the achievement of the objectives of the actions supported under the Programme, on the results and impacts, on the efficiency of the use of resources and on its Union added value, as well as a final evaluation report on the longer impact, the results and the sustainability of the actions, and the synergies with other Programmes. [Am. 62]

(75a) In order to supplement certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of the adoption of work programme(s). [Am. 63]

(76) The An open list of animal diseases and zoonosis which qualify for funding under emergency measures and for funding under the eradication, control and surveillance programmes should be established on the basis of animal diseases referred to in Chapter 2 of Part I of Regulation (EU) 2016/429 of the European Parliament and of the Council (40), Regulation (EC) No 2160/2003 of the European Parliament and of the Council (41) and Regulation (EC) No 999/2001 of the European Parliament and of the Council (42). [Am. 64]

(77) In order to take account of situations that are provoked by animal diseases that have a significant impact on livestock production or trade, the development of zoonoses which pose a threat to humans, or new scientific or epidemiological developments, as well as animal diseases, which are likely to constitute a new threat for the Union, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission, in respect of amending the list of animal diseases and zoonoses. In order to ensure effective assessment of progress of the Programme towards the achievement of its objectives the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of reviewing or complementing the indicators to measure the achievement of the specific objectives where considered necessary and to supplement this Regulation with provisions on the establishment of a monitoring and evaluation framework. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. In particular, Stakeholders and consumer associations should be consulted as well. To ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. [Am. 65]

(78) Pursuant to [reference to be updated as appropriate according to a new decision on OCTs: Article 94 of Council Decision 2013/755/EU (43)], persons and entities established in overseas countries and territories are eligible for funding subject to the rules and objectives of the Programme and possible arrangements applicable to the Member State to which the relevant overseas country or territory is linked.

(79) In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (44), Council Regulation (Euratom, EC) No 2988/95 (45),Council Regulation (Euratom, EC) No 2185/96 (46) and Council Regulation (EU) 2017/1939 (47), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96 the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (48). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors (ECA) and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(80) Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 TFEU apply to this Regulation. These rules are laid down in and in particular the Financial Regulation and determine in particular which lays down the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide provides for checks on the responsibility of financial actors should apply to the actions under this Programme, subject to specific derogations, provided for in this Regulation. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective Union funding. [Am. 66]

(81) Regulation (EU) 2016/679 of the European Parliament and of the Council (49) governs the processing of personal data carried out in the Member States in the context of this Regulation and under the supervision of the Member States competent authorities. Regulation (EC) No 45/2001 of the European Parliament and of the Council (50) governs the processing of personal data carried out by the Commission within the framework of this Regulation and under the supervision of the European Data Protection Supervisor. Any exchange or transmission of information by competent authorities is to comply with the rules on the transfer of personal data as laid down in Regulation (EU) 2016/679 and in Regulation XXX [Regulation on privacy and electronic communications] and any exchange or transmission of information by the Commission is to comply with the rules on the transfer of personal data as laid down in Regulation (EC) No 45/2001. [Am. 67]

(82) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States due to the cross-border nature of the issues involved, but can rather, by reason of the greater potential of Union action, be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 TEU. 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.

(83) The Programme should also be to ensure greater visibility and coherence of the Union’s internal market, competitiveness and sustainability of enterprises including SMEs especially micro, small and medium-sized enterprises and European statistics actions towards European citizens, businesses and administrations. [Am. 68]

(84) Regulation (EU) No 99/2013, Regulation (EU) No 1287/2013, Regulation (EU) No 254/2014 of the European Parliament and of the Council (51), Regulation (EU) No 258/2014 of the European Parliament and of the Council (52), Regulation (EU) No 652/2014 of the European Parliament and of the Council (53), Regulation (EU) 2017/826, should be repealed with effect from 1 January 2021.

(85) It is appropriate to ensure a smooth transition without interruption between the programmes in the fields of competitiveness and sustainability of enterprises and SMEs, especially micro, small and medium-sized enterprises, consumer protection, customers and end-users in financial services, policy making in financial services, food chain and European statistics, established by Regulation (EU) No 1287/2013, Regulation (EU) No 254/2014, Regulation (EU) 2017/826, Regulation (EU) No 258/2014, Regulation (EU) No 652/2014, Regulation (EU) No 99/2013 and this Programme, in particular regarding the continuation of multiannual measures, and the evaluation of the previous programmes successes, [Am. 69]

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1 Subject matter This Regulation establishes the Single Market programme for improving the functioning of strengthening the internal market and the improving its functioning in the fields of competitiveness and sustainability of enterprises, including especially micro, small and medium-sized enterprises, standardisation, consumer protection, market surveillance, food supply chain and the framework for financing of development, production and dissemination of European statistics within the meaning of Article 13 of Regulation (EC) No 223/2009 (the ‘Programme’). [Am. 70] It lays down the objectives of the Programme, the budget for the period 2021 to 2027, the forms of Union funding and the rules for providing such funding.

Article 2 Definitions For the purposes of this Regulation, the following definitions apply: (1) ‘blending operation’ means actions supported by the Union budget, including within blending facilities pursuant to Article 2(6) of the Financial Regulation, combining non-repayable forms of support and/or financial instruments from the Union budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors; (2) ‘European statistics’ means statistics developed, produced and disseminated at the Union level and in the Member States in accordance with Article 3 TEU and Regulation (EC) No 223/2009; [Am. 71] (3) ‘legal entity’ means any natural or legal person created and recognised as such under national law, Union law or international law, which has legal personality and which may, acting in its own name, exercise rights and be subject to obligations, or an entity without a legal personality in accordance with point (c) of the Article 197(2) of Regulation (EU, Euratom) 2018/1046 (the ‘Financial Regulation’); [Am. 72] (4) ‘micro, small and medium-sized enterprises’ means micro, small and medium-sized enterprises as defined in Recommendation 2003/361/EC in the version of 6 May 2003; (4a) ‘social economy enterprise’ means an enterprise whose main objective is to have a social impact rather than make a profit for their owners or shareholders, which operates by providing goods and services for the market and which is managed in an open and responsible manner involving employees, consumers and stakeholders; [Am. 73] (4b) ‘local Public Enterprise’ means a small local public service enterprise that meets the SME criteria and fulfils important tasks for local communities; [Am. 74] (4c) ‘enterprise networks’ means the coming together of entrepreneurs in order to carry out a shared project and in which two or more SMEs jointly exercise one or more economic activities in order to increase their competitiveness in the market; [Am. 75] (5) ‘third country’ means a country that is not a member of the Union.

Article 3 Programme objectives 1. The Programme has the following general objectives: (a) to improve the functioning of the internal market, and especially to protect and empower citizens, consumers and businesses, in particular micro, small and medium-sized enterprises (SMEs), by enforcement of Union law, facilitation of legal, social and environmental framework; to facilitate market access and access to finance, to promote fair competition between companies, and standard setting, and by promoting to ensure a uniform and high level of consumer protection, to strengthen the market surveillance across the Union, to improve mutual recognition and to promote human, animal and plant health and animal welfare; as well as to enhance cooperation between the competent authorities of Member States and between the competent authorities of Member States and the Commission and the decentralised Union agencies; [Am. 76] (b) to provide develop, produce and disseminate high-quality, comparable and reliable European statistics on Europe which underpin the design, monitoring and evaluation of all the Union policies, including trade and migration, and help citizens, policy makers and regulators, supervisory authorities, businesses, academia, citizens civil society and media to make informed decisions and actively participate in the democratic process. [Am. 77] 2. The Programme has the following specific objectives: (a) making the internal market more effective, by: (i) facilitating the prevention and removal of obstacles, and supporting the development, implementation and enforcement of the Union law, in the areas of the internal market for goods and services, and public procurement, market surveillance as well as in the areas of company law and contract and extra-contractual law, anti-money laundering, free movement of capital, financial services and competition, including the development of governance tools; (ii) supporting effective market surveillance and product safety throughout the Union, and contributing to the fight against the counterfeiting of products, with a view to ensuring that only safe and compliant products that offer a high level of consumer protection are made available on the Union market, including those sold online, as well as to greater homogeneity and capacity of the market surveillance authorities across the Union. [Am. 78] (b) improving strengthening both the competitiveness and sustainability of enterprises with special emphasis on SMEs and achieving additionality through the provision of measures that provide (objectives for SMEs), paying particular attention to their specific needs, by: (i) providing various forms of support to SMEs, fostering the growth, promotion and creation of SMEs, including enterprise networks, development of managerial skills and fostering measures to scale-up that will allow them to better access to markets including the and internationalisation of SMEs, processes, as well as marketing of their products and services; (ii) fostering a favourable business environment and framework for SMEs, reducing administrative burden, enhancing the competitiveness of sectors, ensuring the modernisation of industry including their digital transformation contributing to a resilient, energy and resource efficient economy; (iii) promoting entrepreneurial culture and contributing to the high-quality training of SMEs’ staff; (iv) promoting new business opportunities for SMEs overcoming structural changes through targeted measures, and other innovative forms of actions such as workers buy-outs facilitating job creation and the promotion of entrepreneurship continuity of businesses, in territories affected by these changes; [Am. 79] (c) ensuring the effective functioning of the internal market through standardisation processes that: (i) enable the financing of European standardisation and stakeholder bodies and the participation of all relevant stakeholders in setting up European standards; [Am. 80] (ii) support the development of high-quality international financial reporting and auditing standards, facilitate their integration into the Union law and and/or promote the innovation and development of best practices in corporate reporting for both small and big companies; [Am. 81] (d) promoting the interests of consumers and ensuring a uniform and high level of consumer protection and product safety by: [Am. 82] (i) empowering, assisting and educating consumers, businesses and civil society; ensuring a high level of consumer protection, sustainable consumption and product safety notably by in particular for the most vulnerable consumers in order to enhance fairness, transparency and trust in the single market; supporting competent enforcement authorities and consumer representative organisations and cooperation actions, by addressing, among others, issues raised by existing and emerging technologies, including actions aiming at improving product traceability along the supply chain; quality standards across the Union, and addressing the issue of the dual quality of products; raising awareness about consumer's rights under Union law and ensuring that all consumers have access to efficient redress mechanisms and provision of adequate information on markets and consumers, as well as promoting sustainable consumption through enhanced information to consumers on specific characteristics and environmental impact of goods and services; [Am. 83] (ii) enhancing the participation of consumers, other financial services end-users and civil society in financial services policy-making; promoting a better understanding of the financial sector and of the different categories of commercialised financial products and ensuring the interests of consumers in the area of retail financial services; [Am. 84] (e) contributing to a high level of health and safety for humans, animals and plants along the food and feed supply chain and in related areas, including by preventing and eradicating diseases and pests, and to support the improvement of the welfare of animals including, by means of emergency measures in the event of large-scale crisis situations and unforeseeable events affecting animal or plant health, as well as supporting improvements in animal welfare and developing the a sustainable food production and consumption at affordable prices, as well as by stimulating research, innovation and the exchange of best practices between stakeholders in those fields; [Am. 85] (f) developing, producing, disseminating and communicating high quality European statistics on Europe in a timely, impartial and cost-efficient manner, through enhanced partnerships within the European Statistical System referred to in Article 4 of Regulation (EC) No 223/2009 and with all relevant external parties, using multiple data sources, advanced data analytics methods, smart systems and digital technologies, and providing a national and, where possible, regional breakdown. [Am. 86]

Article 4 Budget 1. The financial envelope for the implementation of the Programme for the period 2021 to 2027 shall be EUR 4 088 580 0006 563 000 000 in current prices. [Am. 87] 2. Within the amount referred to in paragraph 1 the following indicative amounts shall be allocated to the following objectives: (-a) EUR 394 590 000 to the objective referred to in Article 3(2)(a)(i); [Am. 88] (-aa) EUR 396 200 000 to the objective referred to in Article 3(2)(a)(ii); [Am. 89] (a) EUR 1 000 000 0003 122 000 000 to the objective referred to in Article 3(2)(b); [Am. 90] (aa) EUR 220 510 000 to the objective referred to in Article 3(2)(c); [Am. 91] (b) EUR 188 000 000 198 000 000 to the objective referred to in Article 3(2)(d)(i) 3(2)(d); [Am. 92] (c) EUR 1 680 000 000 to the objective referred to in Article 3(2)(e); (d) EUR 552 000 000 to the objective referred to in Article 3(2)(f). 3. The amount referred to in paragraph 1 may be used for technical and administrative assistance for the implementation of the Programme, concerning in particular preparatory, monitoring, control, audit and evaluation activities as well as use of information technology networks focusing on information processing and exchange, and use and development of corporate information technology tools. In order to ensure maximum availability of the Programme to finance actions covered by the objectives of the Programme, the total costs of administrative and technical support shall not exceed 5 % of the value of the financial envelope referred to in paragraph 1. [Am. 93] 4. For the objective referred to in Article 3(2)(e), budgetary commitments extending over more than one financial year, may be broken down over several years into annual instalments. 5. By derogation from Article 111(2) of the Financial Regulation, the Commission shall make the budgetary commitment for the grant awarded for veterinary and phytosanitary emergency measures under the specific objective referred to in point (e) of the Article 3(2) of this Regulation after assessment of the payment applications submitted by Member States. 5a. A specific mechanism should be introduced for direct food chain access to the Commission’s crisis reserve in case of large-scale emergencies, in order to guarantee financing for the measures set out in Article 3(2)(e). [Am. 94] 6. Resources allocated to Member States under shared management may, at their request, be transferred to the Programme. The Commission shall implement those resources directly in accordance with point (a) of Article 62(1) of the Financial Regulation or indirectly in accordance with point (c) of that Article. Where possible those resources shall be used for the benefit of the Member State concerned.

Article 5 Third countries associated to the Programme The Programme shall be open to the following third countries: (a) European Free Trade Association (EFTA) members which are members of the European Economic Area (EEA), in accordance with the conditions laid down in the EEA agreement; (b) acceding countries, candidate countries and potential candidates, in accordance with the general principles and general terms and conditions for their participation in Union programmes established in the respective framework agreements and Association Council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and them; (c) countries covered by the European Neighbourhood Policy, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and association council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and those countries; (d) third countries, in accordance with the conditions laid down in a specific agreement covering the participation of the third country to any Union programme, provided that the agreement: (i) ensures a fair balance as regards the contributions and benefits of the third country participating in the Union programmes; (ii) lays down the conditions of participation in the programmes, including the calculation of financial contributions to individual programmes and their administrative costs; (iii) does not confer to the third country a decisional power on the programme; (iv) guarantees the rights of the Union to ensure sound financial management and to protect its financial interests. The contributions referred to in point (ii) shall constitute assigned revenues in accordance with Article 21(5) of the Financial Regulation.

Article 6 Implementation and forms of EU funding 1. The Programme shall be implemented in direct management in accordance with the Financial Regulation or in indirect management with bodies referred to in point (c) of the Article 62(1) of the Financial Regulation. 2. The Programme may provide funding in any of the forms laid down in the Financial Regulation, in particular grants, prizes and procurement. It may also provide financing in the form of financial instruments within blending operations. 3. Contributions to a mutual insurance mechanism may cover the risk associated with the recovery of funds due by recipients and shall be considered as sufficient guarantee under the Financial Regulation. The provisions laid down in [Article X of] Regulation XXX [successor of the Regulation on the Guarantee Fund] shall apply (54).

CHAPTER II

GRANTS

Article 7 Grants Grants under the Programme shall be awarded and managed in accordance with Title VIII of the Financial Regulation.

Article 8 Eligible actions 1. Only actions implementing the objectives referred in Article 3 shall be eligible for funding. 2. In particular the following actions implementing the objectives referred in Article 3 shall be eligible: (a) creation of the right conditions to empower all actors of the internal market, including businesses, citizens and, consumers, civil society and public authorities through transparent information exchange and awareness raising campaigns, particularly as regards to applicable Union rules and the rights of consumers and businesses, best practice exchange, promotion of good practices and innovative solutions, exchange and dissemination of expertise and knowledge and organization of trainings for the promotion of digital literacy of citizens and businesses; [Am. 95] (b) provision of mechanisms for citizens, consumers, end-users, civil society, trade unions and businesses representatives from the Union, in particular those representing SMEs to contribute to political discussions, policies and decision making process, notably by supporting the functioning of representative organisations at national and the Union level; [Am. 96] (c) capacity building, facilitation and coordination of joint actions between Member States and between the competent authorities of Member States and between the competent authorities of Member States and the Commission, the decentralised Union agencies and third country authorities, and more particularly joint actions aimed at strengthening product safety, enforcement of consumer protection rules in the Union and product traceability; [Am. 97] (d) support for the effective enforcement and by Member States and the modernisation of the Union legal framework and its rapid adaptation to the ever-changing environment as well as support for dealing with issues raised by digitalisation, including through data gathering and analyses; studies, evaluations and policy recommendations; organization of demonstration activities and pilot projects; communication activities; development of dedicated IT tools ensuring transparent, fair and efficient functioning of the internal market. [Am. 98] 2a. The following actions implementing the specific objectives referred to in Article 3(2)(a)(ii) shall be eligible for funding: (a) coordination and cooperation between market surveillance authorities and other relevant authorities of Member States, in particular through the Union Product Compliance Network; (b) development and maintenance of IT tools to exchange information on market surveillance and controls at the external borders; (c) support for the development of joint actions and testing in the field of product safety and compliance including in relation to connected products and products sold online; (d) cooperation, exchange of best practices and joint projects between market surveillance authorities and relevant bodies from third countries; (e) support for market surveillance strategies, knowledge and intelligence gathering, testing capabilities and facilities, peer reviews, training programmes, technical assistance and capacity building for market surveillance authorities; (f) assessment of type approval procedures and compliance verification of motor vehicles by the Commission. [Am. 99] 3. The following actions implementing the specific objective referred to in Article 3(2)(b) shall be eligible for funding: (a) to provide various forms of support to SMEs; [Am. 100] (b) facilitating SMEs' micro-enterprises,