Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European Banking Authority) as regards its interaction with Council Regulation (EU) No…/… conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions
Date: 2012-09-12
Institutions: European Commission
Subjects: EU office or agency, European Central Bank, banking supervision, coordination of EMU policies, credit institution, decision-making body (EU), division of powers, market intervention

EUROPEAN COMMISSION 

Brussels, 12.9.2012  
COM(2012) 512 final 

2012/0244 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) No 1093/2010 establishing a European Supervisory 
Authority (European Banking Authority) as regards its interaction with Council 
Regulation (EU) No…/… conferring specific tasks on the European Central Bank 
concerning policies relating to the prudential supervision of credit institutions 

EN 

   EN 

 
 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Today,  the  solidity  of  the  banking  sector  is  in  many  instances  still  closely  linked  to  the 
Member  State  in  which  they  are  established.  Doubts  about  the  sustainability  of  public  debt, 
economic  growth  prospects,  and  the  viability  of  credit  institutions  have  been  creating 
negative, mutually reinforcing market trends. This may lead to risks for the viability of some 
credit institutions as well as for the stability of the financial system, and may impose a heavy 
burden for already strained public finances of the Member States concerned.  

The situation poses specific risks within the euro area, where the single currency increases the 
likelihood that developments in one Member State can create risks for economic development 
and  the  stability  of  the  Euro  area  as  a  whole.  Furthermore,  the  current  risk  of  financial 
disintegration along national borders significantly undermines the Single Market for financial 
services and prevents it from contributing to economic recovery.  

The  establishment  of  the  European  Banking  Authority  (EBA)  by  Regulation  (EU)  No. 
1093/2010 of the European Parliament and the Council of 24 November 2010 establishing a 
European Supervisory Authority (European Banking Authority), and of the European System 
of  Financial  Supervision  (ESFS)  already  contributed  to  improved  cooperation  between 
national supervisors and to the development of a single rulebook for financial services in the 
EU. However, supervision of banks remains to a large extent within national boundaries and 
thereby fails to keep up with integrated banking markets. Supervisory failings have, since the 
onset  of  the  banking  crisis,  significantly  eroded  confidence  in  the  EU  banking  sector  and 
contributed to an aggravation of tensions in euro area sovereign debt markets.  

The  Commission  has  therefore  called  in  May  2012,  as  part  of  a  longer  term  vision  for 
economic and fiscal integration, for a banking union to restore confidence in banks and in the 
euro.  One  of  the  key  elements  of  the  banking  union  should  be  a  Single  Supervisory 
Mechanism (SSM) with direct oversight of banks, to enforce prudential rules in a strict and 
impartial manner and perform effective oversight of cross border banking markets. Ensuring 
that  banking  supervision  across  the  Euro  area  abides  by  high  common  standards  will 
contribute to build the necessary trust between Member States, which is a pre-condition for 
the introduction of any common backstops. 

At the Euro area summit on 29 June, 2012, the Heads of State or Government have called on 
the  Commission  "to  present  proposals  for  the  setting  up  of  a  single  supervisory  mechanism 
shortly. When such a mechanism will be in place for banks in the euro area the ESM could, 
following  a  regular  decision,  have  the  possibility  to  recapitalize  banks  directly".  The 
European Council conclusions of the meeting held on the 28/29 June 2012 state that this Euro 
Area  statement  and  the  proposals that  the  Commission  will  present  accordingly  should  take 
into account the development of "a specific and time-bound road map for the achievement of 
a genuine Economic and Monetary Union".  

Under this new mechanism, the ECB will carry out a wide range of key supervisory tasks over 
credit institutions in the Euro area Member States. With a view to maintaining and deepening 
the internal market, other Member States will be allowed to enter into close collaboration with 
the ECB. 

EN 

2 

   EN 

 
To  avoid  fragmentation  of  the  internal  market  following  the  establishment  of  the  single 
supervisory mechanism, the proper functioning of the EBA needs to be ensured. The role of 
the  EBA  should  therefore  be  preserved  in  order  to  further  develop  the  single  rulebook  and 
ensure convergence of supervisory practices over all EU.  

Along  with  the  proposal  for  a  Council  Regulation  conferring  specific  tasks  on  the  ECB 
concerning policies relating to the prudential supervision of credit institutions in accordance 
with  Article  127(6)  TFEU,  this  proposal  introduces  targeted  amendments  to  the  Regulation 
establishing the European Banking Authority. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

The Commission has taken into account the analysis done in the context of the adoption of the 
"supervisory  package"  creating  the  European  Supervisory  Authorities,  which  assessed 
operational, governance, financial and legal aspects relevant  to the establishment  of  a SSM. 
The preparation of a formal impact assessment was not possible within the timetable set by 
the Euro area Summit of 29 June.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

The proposal is based on Article 114 TFEU since it amends Regulation (EU) No. 1093/2010 
adopted under the same legal basis.  

The proposal is limited to an adjustment of the procedural modalities under which the EBA 
operates to take account of the conferral of supervisory tasks on the ECB and to ensure that 
the EBA can continue to pursue its functions to protect the  integrity, efficiency and  orderly 
functioning  of  the  internal  market  for  financial  services  and  maintaining  the  stability  of  the 
financial  system  within  the  internal  market.  It  does  not  alter  the  balance  of  respective 
competences between the EBA and national authorities. The provisions in the proposal do not 
go  beyond  what  is  strictly  necessary  to  achieve  the  objectives  pursued.  The  proposal  is 
therefore in line with the principles of subsidiarity and proportionality set out in Article 5 of 
the Treaty on the European Union. 

4. 

DETAILED EXPLANATION OF THE PROPOSAL  

EBA powers, in particular binding mediation/emergency situations 

The wording of Articles 4, 18(1) and 35(1) to (3) is amended to ensure that EBA can carry out 
its tasks also in relation to the ECB  by  clarifying that the notion of "competent authorities" 
includes  also  the  ECB,  as  it  does  in  the  other  articles  which  make  reference  to  "competent 
authorities". 

In  order  to  ensure  that  the  EBA  can  carry  out  its  tasks  to  settle  disagreements  and  act  in 
emergency situations also in relation to the ECB, in Articles 18 and 19, paragraphs 18(3a) and 
19(3a) are introduced to provide for a specific procedure in relation to the decision taken by 
the  EBA  under  Article  18(3)  or  19(3).  The  procedure  provides  that  if  the  ECB  does  not 
comply with an action by EBA to settle a disagreement or to address an emergency situation, 
it  should  be  required  to  explain  its  reasons.  In  that  unlikely  case,  where  the  relevant 

EN 

3 

   EN 

 
requirements  are  set  out  in  directly  applicable  Union  law,  the  EBA  can  adopt  an  individual 
decision  addressed  to  the  financial  institution  concerned  to  enforce  its  action,  and  it  is 
normally  expected  to  do  so.  This  will  ensure  full  enforceability  of  EBA's  settlement  of  a 
disagreement and its action in an emergency situation. 

Voting modalities 

The fact that the ECB will coordinate the position of the Euro area Member States requires a 
review  of  the  voting  modalities  currently  provided  for  in  the  EBA  regulation,  in  order  to 
ensure  that  EBA  decisions  are  taken  in  the  interest  of  maintaining  and  strengthening  the 
internal market for financial services. 

Under  the  EBA  Regulation,  decisions  concerning  regulatory  matters  (binding  technical 
standards,  guidelines  and  recommendations  provided  for  in  Articles  10,  15  and  16,  and 
decisions to reconsider restrictions on financial activities provided for in Article 9.5) as well 
as  budgetary  matters  (Chapter  VI)  are  taken  by  the  Board  of  Supervisors  on  the  basis  of  a 
qualified  majority  of  its  members,  as  defined  in  Article  16(4)  TEU  and  Article  3  of  the 
Protocol No 36 on transitional provisions.  

Decisions  on  other  issues  (e.g.  on  breach  of  law  according  to  Article  17,  on  settlement  of 
disagreement  under  Article  19,  on  the  election  of  Management  Board)  are  adopted  by  the 
Board  of  Supervisors  by  simple  majority  of  the  voting  members  according  to  the  rule  "one 
man one vote".  

If  voting  rights  remain  unchanged,  it  cannot  be  ensured  that  decisions  taken  by  simple 
majority  will  always  represent  the  interests  of  the  Union  as  a  whole.  Voting  arrangements 
need  therefore  to  be  adjusted  in  some  specific  cases  of  simple  majority  to  ensure  that  the 
integrity of the internal market remains preserved while avoiding at the same time the risk of 
paralysing the EBA decision making. 

The best option identified to achieve this objective is to confer decision making powers on an 
independent panel and provide for a strong reverse voting mechanism which will ensure that 
the proposal prepared by the independent panel is supported by Euro area and non-Euro area 
Member States. This will also ensure that Euro area Member States cannot have a blocking 
minority in case of actions taken against one of them.  

Article  41 of  the  EBA Regulation is therefore amended in order to confer stronger decision 
making  powers  to  the  independent  panel  on  breaches  of  EU  law  and  settlement  of 
disagreements, and adapt rules on its composition accordingly. 

Article 44 of the EBA Regulation is amended to provide that the decisions proposed by the 
independent panel are adopted unless they are rejected by a simple majority, including at least 
three votes of participating Member States and non-participating  Member  States.  A  specific 
provision is added on the appointment of the independent panel.  

Composition of the Management Board 

In view of the decisive influence of members from Member States participating in or closely 
cooperating  with  the  single  supervisory  mechanism  when  electing  the  Management  Board 
(simple majority of members present), members from Member States not participating in the 
SSM could not be appropriately represented adequately in the Management Board. To ensure 
a balanced composition of the Management Board, reflecting the EU as a whole and including 

EN 

4 

   EN 

 
Member  States  not  participating  in  the  single  supervisory  mechanism,  the  proposal  amends 
the composition of the Management Board of the EBA to ensure that at least two members 
from Member States not participating in the single supervisory mechanism are represented in 
the Management Board.  

Article 45 of the EBA Regulation is therefore amended to ensure that the Management Board 
includes at least two Member States which are not participating in the SSM.  

Review of voting modalities in light of future developments 

Finally,  in  order  to  take  into  account  any  developments  in  the  number  of  Member  States 
whose  currency  is  the  Euro  or  whose  competent  authorities  have  entered  into  a  close 
cooperation in accordance with Article 6 of Regulation …/…, the Commission is required to 
review the proposed provisions to examine whether in light of such developments any further 
adjustments  are  necessary  to  ensure  that  EBA  decisions  are  taken  in  the  interest  of 
maintaining and strengthening the internal market for financial services. 

5. 

BUDGETARY IMPLICATION  

The proposal has no implications for the EU budget.

EN 

5 

   EN 

 
2012/0244 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) No 1093/2010 establishing a European Supervisory 
Authority (European Banking Authority) as regards its interaction with Council 
Regulation (EU) No…/… conferring specific tasks on the European Central Bank 
concerning policies relating to the prudential supervision of credit institutions 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 114 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee1,  

Having regard to the opinion of the European Central Bank2 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

On  29  June  2012,  the  Euro  area  Heads  of  State  or  Government  have  called  on  the 
Commission  to  present  proposals  to  provide  for  a  single  supervisory  mechanism 
involving the European Central Bank (ECB). The European Council in its conclusions 
of  29  June  2012  invited  the  President  of  the  European  Council  to  develop,  in  close 
collaboration  with  the  President  of  the  Commission,  the  President  of  the  Eurogroup 
and the President of the ECB, a specific and time-bound road map for the achievement 
of  a  genuine  Economic  and  Monetary  Union,  which  includes  concrete  proposals  on 
preserving the unity and integrity of the Single Market in financial services and which 
takes account of the Euro Area statement and the intention of the Commission to bring 
forward  proposals  based  on  Article  127  of  the  Treaty  on  the  Functioning  of  the 
European Union (TFEU). 

(2) 

The provision for a single supervisory mechanism is the first step towards the creation 
of  a  European  banking  union,  underpinned  by  a  true  single  rulebook  for  financial 
services  and  composed  also  of  a  common  deposit  insurance  and  resolution 
framework..  

1 
2 

OJ C , , p. . 
OJC , , p. . 

EN 

6 

   EN 

 
                                                 
(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

In order to provide for the single supervisory mechanism, Council Regulation (EU) No 
…/…3[127(6)  Regulation]  confers  specific  tasks  on  the  ECB  concerning  policies 
relating to the prudential supervision of credit institutions in the Member States whose 
currency is the euro. Other Member States may enter in a close cooperation with the 
ECB.  Under  that  Regulation,  the  ECB  is  to  coordinate  and  express  the  position  of 
those Member States on the decisions to be taken by the Board of Supervisors of the 
European Banking Authority (EBA) falling within the scope of the ECB tasks.  

The  conferral  of  supervisory  tasks  to  the  ECB  in  the  banking  sector  for  part  of  the 
Member  States  of  the  Union  should  not  in  any  way  hamper  the  functioning  of  the 
internal market in the field of financial services. It is therefore necessary to ensure the 
proper functioning of the EBA following that conferral.  

In view of the supervisory tasks conferred on the ECB by Council Regulation (EU) No 
…/… [127(6) Regulation], EBA should be able to carry out its tasks also in relation to 
the ECB. In order to ensure that existing mechanisms for settlement of disagreements 
and  actions  in  emergency  situations  remain  effective,  a  specific  procedure  should  be 
provided for. In particular, if the ECB does not comply with an action by EBA to settle 
a disagreement or to address an emergency situation, it should be required to explain 
its reasons. In that case, whenever based on requirements set out in directly applicable 
Union law EBA can adopt an individual decision addressed to the financial institution 
concerned, it should do so. 

In order to ensure that interests of all Member States are adequately taken into account 
and to allow for the proper functioning of the EBA with a view to maintain and deepen 
the internal market in the field of financial services, the voting modalities within the 
Board of Supervisors should be adapted, in particular with regard to decisions taken by 
the EBA at simple majority.  

Decisions concerning breaches of Union law and settlement of disagreements should 
be examined  by an independent panel composed  of  voting  members  of  the  Board  of 
Supervisors  which  do  not  have  any  conflicts  of  interest,  appointed  by  the  Board  of 
Supervisors. The decisions proposed by the panel to the Board of Supervisors should 
be considered as adopted unless rejected by a simple majority, which should include 
an adequate number of votes from members from Member States participating in the 
SSM and from Member States that do not participate in the SSM. 

The members of the independent panel set up according to Article 41(2) of Regulation 
(EU) No 1093/2010 should not be considered to be in a situation of conflict of interest 
on the sole ground that they are representatives of competent authorities which are part 
of the SSM and a given case to be decided upon by the Panel concerns the SSM. The 
EBA should develop rules of procedure for the panel that ensure its independence and 
objectivity. 

(9) 

The  composition  of  the  Management  Board  should  be  balanced  and  proper 
representation of Member States not participating in the SSM should be ensured. 

(10) 

In order to ensure the proper functioning of the EBA and adequate representation of all 
Member States, the voting modalities, the composition of the Management Board, and 

3 

EN 

7 

   EN 

 
                                                 
 
the  composition  of  the  independent  panel  should  be  reviewed  after  an  appropriate 
period of time taking into account any experience gained and further developments.  

(11)  Since  the  objectives  of  this  Regulation,  namely  ensuring  a  high,  effective  and 
consistent  level  of  prudential  regulation  and  supervision  across  the  European  Union, 
protecting  the  integrity,  efficiency  and  orderly  functioning  of  financial  markets  and 
maintaining the stability of the financial system, cannot be sufficiently achieved by the 
Member  States  and  can,  therefore,  by  reason  of  the  scale  of  the  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  of  the  Treaty  on  European  Union.  In 
accordance  with  the  principle  of  proportionality,  as  set  out  in  that  Article,  this 
Regulation does not go beyond what is necessary in order to achieve those objectives, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Regulation (EU) No 1093/2010 is amended as follows: 

1. 

Article 4(2)(i) is replaced by the following:  

"(i) Competent authorities as defined in Directives 2006/48/EC and 2006/49/EC, including the 
ECB  for  matters  related  to  the  tasks  conferred  upon  it  by  Council  Regulation  (EU)  No 
…/…*[127(6)  TFEU  Council  Regulation],  in  Directive  2007/64/EC,  and  as  referred  to  in 
Directive 2009/110/EC. 

__________________________ 

* OJ L …, ….., p…. " 

2. 

Article 18 is amended as follows:  

(a) paragraph 1 is replaced by the following:  

"1.  In  the  case  of  adverse  developments  which  may  seriously  jeopardise  the  orderly 
functioning  and  integrity  of  financial  markets  or  the  stability  of  the  whole  or  part  of  the 
financial  system  in  the  Union,  the  Authority  shall  actively  facilitate  and,  where  deemed 
necessary,  coordinate  any  actions  undertaken  by  the  relevant  competent  supervisory 
authorities.  

In  order  to  be  able  to  perform  that  facilitating  and  coordinating  role,  the  Authority  shall  be 
fully informed of any relevant developments, and shall be invited to participate as an observer 
in any relevant gathering by the relevant competent supervisory authorities." 

(b) the following paragraph is inserted after paragraph 3: 

"3a  Where  the  Authority  requests  the  ECB  as  competent  authority  to  take  the  necessary 
action in accordance with paragraph 3,, the ECB shall comply with it or shall provide within 
48 hours at the latest adequate justification to the Authority for its non-compliance."  

3. 

In Article 19 the following paragraph is inserted after paragraph 3: 

EN 

8 

   EN 

 
"3a.Where the Authority requests the ECB as competent authority to take specific action or to 
refrain  from  action  in  accordance  with  paragraph  3,,  the  ECB  shall  comply  with  it  or  shall 
within  ten  working  days  of  the  receipt  of  the  request  provide  adequate  justification  to  the 
Authority for its non-compliance." 

4. 

In Article 35, paragraphs 1, 2 and 3 are replaced by the following: 

"1. At the request of the Authority, the competent authorities shall provide the Authority with 
all the necessary information to carry out the duties assigned to it by this Regulation, provided 
that they have legal access to the relevant information and that the request for information is 
necessary in relation to the nature of the duty in question. 

2.  The  Authority  may  also  request  information  to  be  provided  at  recurring  intervals  and  in 
specified  formats.  Such  requests  shall,  where  possible,  be  made  using  common  reporting 
formats.  

3. Upon a duly justified request from a competent authority, the Authority may provide any 
information  that  is  necessary  to  enable  the  competent  authority  to  carry  out  its  duties,  in 
accordance with the professional secrecy obligations laid down in sectoral legislation and in 
Article 70." 

5. 

Article 41, paragraphs 2, 3 and 4 are replaced by the following: 

"2.  For  the  purposes  of  Article  17  and  19,  the  Board  of  Supervisors  shall  establish  an 
independent panel consisting of the Chairperson and two members appointed by the Board of 
Supervisors among its voting members. At least one member of the independent panel shall 
be  from  a  Member  State  which  is  not  a  participating  Member  State  in  accordance  with 
Regulation (EU) No …/… [127(6) TFEU Council Regulation]. 

The members of the panel shall act independently and objectively in accordance with Article 
42,  shall  not  be  representatives  of  the  competent  authority  concerned  or  of  the  competent 
authorities which are party to the disagreement. 

3.  The  panel  shall  propose  a  decision  for  final  adoption  by  the  Board  of  Supervisors,  in 
accordance with the procedure set out in the third subparagraph of Article 44(1). 

4.  The  Board  of  Supervisors  shall  adopt  rules  of  procedure  for  the  panel  referred  to  in 
paragraph 2, including rules implementing the requirement set out in the second subparagraph 
of that paragraph." 

6. 

In Article 42 the following paragraph is added: 

"The first and second paragraphs are without prejudice to the tasks conferred upon the ECB 
by Regulation (EU) No …/… [127(6) TFEU Council Regulation]." 

7. 

Article 44(1) is replaced by the following: 

"1. Decisions of the Board of Supervisors shall be taken by a simple majority of its members. 
Each member shall have one vote. 

With  regard  to  the  acts  specified  in  Articles  10  to  16  and  measures  and  decisions  adopted 
under the third subparagraph of Article 9(5) and Chapter VI and by way of derogation from 

EN 

9 

   EN 

 
the first subparagraph of this paragraph, the Board of Supervisors shall take decisions on the 
basis  of  a  qualified  majority  of  its  members,  as  defined  in  Article  16(4)  of  the  Treaty  on 
European Union and in Article 3 of the Protocol (No 36) on transitional provisions. 

With regard to decisions in accordance with Articles 17 and 19, the decision proposed by the 
panel  shall  be  considered  as  adopted  unless  it  is  rejected  by  a  simple  majority  which  shall 
include  at  least  three  votes  from  members  of  participating  Member  States  and  three  votes 
from members of Member States which are neither participating Member States in accordance 
with  Regulation  (EU)  No  …/…[127(6)  TFEU  Council  Regulation]  nor  have  entered  into 
close cooperation with the ECB in accordance with that Regulation  

By derogation from the third subparagraph, from the date when four or less Member States 
are neither participating Member States in accordance with Regulation (EU) No …/… [127(6) 
TFEU  Council  Regulation]  nor  have  entered  into  close  cooperation  with  the  ECB  in 
accordance  with  that  Regulation,  the  decision  proposed  by  the  panel  shall  be  considered  as 
adopted unless it is rejected by a simple majority which shall include at least one vote from 
members of those Member States. 

Each member shall have one vote. 

With  regard  to  the  composition  of  the  panel in  accordance  with  Article  41(2),  the  Board  of 
Supervisors shall strive for consensus. In the absence of consensus, decisions of the Board of 
Supervisors shall be taken by a majority of three quarters of its members. Each member shall 
have one vote." 

8. 

In Article 45(1), the third subparagraph is replaced by the following: 

"The term of office of the members elected by the Board of Supervisors shall be 2 1/2 years. 
That  term  may  be  extended  once.  The  composition  of  the  Management  Board  shall  be 
balanced  and  proportionate  and  shall  reflect  the  Union  as  a  whole.  The  Management  Board 
shall  include  at  least  two  representatives  from  Member  States  which  are  not  participating 
Member  States  in  accordance  with  Regulation  [127(6)  TFEU  Council  Regulation]  nor  have 
entered  into  close  cooperation  with  the  ECB  in  accordance  with  that  Regulation.  Mandates 
shall be overlapping and an appropriate rotating arrangement shall apply." 

Article 2 

Without  prejudice  to  Article  81  of  Regulation  (EU)  No  1093/2010,  by  1  January  2016,  the 
Commission shall publish a report on the application of the provisions of this Regulation in 
relation to: 

(a) 

(b) 

(c) 

the suitability of the voting modalities;  

the composition of the Management Board; and 

the  composition  of  the  independent  panel  preparing  decisions  for  the  purposes  of 
Articles 17 and 19. 

The report shall take into account in particular any developments in the number of Member 
States whose currency is the Euro or whose competent authorities have entered into a close 
cooperation in accordance with Article 6 of  Regulation …/…  and shall examine whether in 

EN 

10 

   EN 

 
light  of  such  developments  any  further  adjustments  of  those  provisions  are  necessary  to 
ensure  that  EBA  decisions  are  taken  in  the  interest  of  maintaining  and  strengthening  the 
internal market for financial services. 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Article 3 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

EN 

11 

   EN