Index 
Texts adopted
Thursday, 28 March 2019 - Strasbourg 
Listing the third countries whose nationals must be in possession of visas when crossing the external borders and those whose nationals are exempt from that requirement (Kosovo) ***I
 Quality of water intended for human consumption ***I
 Increasing the efficiency of restructuring, insolvency and discharge procedures ***I
 Exercise of copyright and related rights applicable to certain online transmissions and retransmissions of television and radio programmes ***I
 Creative Europe programme 2021-2027 ***I
 ‘Erasmus’: the Union programme for education, training, youth and sport ***I
 Establishment of a framework to facilitate sustainable investment ***I
 Estimates of revenue and expenditure for the financial year 2020 – Section I – European Parliament
 Emergency situation in Venezuela
 Situation of rule of law and fight against corruption in the EU, specifically in Malta and Slovakia
 Recent developments on the Dieselgate scandal
 Decision establishing a European Peace Facility

Listing the third countries whose nationals must be in possession of visas when crossing the external borders and those whose nationals are exempt from that requirement (Kosovo) ***I
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European Parliament legislative resolution of 28 March 2019 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 539/2001 listing the third countries whose nationals must be in possession of visas when crossing the external borders and those whose nationals are exempt from that requirement (Kosovo) (COM(2016)0277 – C8-0177/2016 – 2016/0139(COD))
P8_TA(2019)0319A8-0261/2016

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Quality of water intended for human consumption ***I
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European Parliament legislative resolution of 28 March 2019 on the proposal for a directive of the European Parliament and of the Council on the quality of water intended for human consumption (recast) (COM(2017)0753 – C8-0019/2018 – 2017/0332(COD))
P8_TA-PROV(2019)0320A8-0288/2018

(Ordinary legislative procedure – recast)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2017)0753),

–  having regard to Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0019/2018),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the reasoned opinions submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Czech Chamber of Deputies, the Irish Houses of the Oireachtas, the Austrian Federal Council and the United Kingdom House of Commons, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to the opinion of the European Economic and Social Committee of 12 July 2018(1),

–  having regard to the opinion of the Committee of the Regions of 16 May 2018(2),

–  having regard to the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts(3),

–  having regard to the letter of 18 May 2018 sent by the Committee on Legal Affairs to the Committee on the Environment, Public Health and Food Safety in accordance with Rule 104(3) of its Rules of Procedure,

–  having regard to Rules 104 and 59 of its Rules of Procedure,

–  having regard to the report of the Committee on the Environment, Public Health and Food Safety (A8-0288/2018),

A.  whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the Commission proposal does not include any substantive amendments other than those identified as such in the proposal and whereas, as regards the codification of the unchanged provisions of the earlier acts together with those amendments, the proposal contains a straightforward codification of the existing texts, without any change in their substance;

1.  Adopts its position at first reading hereinafter set out(4), taking into account the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission;

2.  Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Text proposed by the Commission   Amendment
Amendments 161, 187, 206 and 213
Proposal for a directive
Recital 2
(2)  Directive 98/83/EC set the legal framework to protect human health from the adverse effects of any contamination of water intended for human consumption by ensuring that it is wholesome and clean. This Directive should pursue the same objective. To that end, it is necessary to lay down at Union level the minimum requirements with which water intended for that purpose must comply. Member States should take the necessary measures to ensure that water intended for human consumption is free from any micro-organisms and parasites and from substances which, in certain cases, constitute a potential danger to human health, and that it meets those minimum requirements.
(2)  Directive 98/83/EC set the legal framework to protect human health from the adverse effects of any contamination of water intended for human consumption by ensuring that it is wholesome and clean. This Directive should pursue the same objective and should provide universal access to such water for all in the Union. To that end, it is necessary to lay down at Union level the minimum requirements with which water intended for that purpose must comply. Member States should take all necessary measures to ensure that water intended for human consumption is free from any micro-organisms and parasites and from substances which, in certain cases, constitute a potential danger to human health, and that it meets those minimum requirements.
Amendment 2
Proposal for a directive
Recital 2 a (new)
(2a)   In line with the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 2 December 2015 entitled “Closing the loop - An EU action plan for the Circular Economy”, this Directive should strive to encourage water resource efficiency and sustainability, thereby meeting circular economy goals.
Amendment 3
Proposal for a directive
Recital 2 b (new)
(2b)   The Human Right to Water and Sanitation (HRWS) was recognised as a human right by the United Nations (UN) General Assembly on 28 July 2010 and thus, access to clean, potable water should not be restricted due to unaffordability by the end user.
Amendment 4
Proposal for a directive
Recital 2 c (new)
(2c)   Coherence between Directive 2000/60/EC of the European Parliament and of the Council1a and this Directive is necessary.
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1a Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p. 1).
Amendment 5
Proposal for a directive
Recital 2 d (new)
(2d)   The requirements set out in this Directive should reflect the national situation and conditions of the water suppliers in the Member States.
Amendment 6
Proposal for a directive
Recital 3
(3)  It is necessary to exclude from the scope of this Directive natural mineral waters and waters which are medicinal products, since these waters are respectively covered by Directive 2009/54/EC of the European Parliament and of the Council68and Directive 2001/83/EC of the European Parliament and of the Council69. However, Directive 2009/54/EC deals with both natural mineral waters and spring waters, and only the former category should be exempted from the scope of this Directive. In accordance with the third subparagraph of Article 9(4) of Directive 2009/54/EC, spring waters should comply with the provisions of this Directive. In the case of water intended for human consumption put into bottles or containers intended for sale or used in the manufacture, preparation or treatment of food, the water should comply with the provisions of this Directive until the point of compliance (i.e. the tap), and should afterwards be considered as food, in accordance with the second subparagraph of Article 2 of Regulation (EC) No 178/2002 of the European Parliament and of the Council70.
(3)  It is necessary to exclude from the scope of this Directive natural mineral waters and waters which are medicinal products, since these waters are respectively covered by Directive 2009/54/EC of the European Parliament and of the Council68 and Directive 2001/83/EC of the European Parliament and of the Council69. However, Directive 2009/54/EC deals with both natural mineral waters and spring waters, and only the former category should be exempted from the scope of this Directive. In accordance with the third subparagraph of Article 9(4) of Directive 2009/54/EC, spring waters should comply with the provisions of this Directive. However, that obligation should not extend to the microbiological parameters set out in Part A of Annex I to this Directive. In the case of water intended for human consumption from public water supply or private wells put into bottles or containers intended for sale or used in the commercial manufacture, preparation or treatment of food, the water should, as a matter of principle, continue to comply with the provisions of this Directive until the point of compliance, and should afterwards be considered as food, in accordance with the second subparagraph of Article 2 of Regulation (EC) No 178/2002 of the European Parliament and of the Council70. Where applicable food safety requirements are met, competent authorities in the Member States should have the power to authorise the reuse of water in food processing industries.
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68 Directive 2009/54/EC of the European Parliament and of the Council of 18 June 2009 on the exploitation and marketing of natural mineral waters (Recast) (OJ L 164, 26.6.2009, p. 45).
68 Directive 2009/54/EC of the European Parliament and of the Council of 18 June 2009 on the exploitation and marketing of natural mineral waters (Recast) (OJ L 164, 26.6.2009, p. 45).
69 Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use (OJ L 311, 28.11.2001, p. 67).
69 Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use (OJ L 311, 28.11.2001, p. 67).
70 Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1).
70 Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1).
Amendment 7
Proposal for a directive
Recital 4
(4)  Following the conclusion of the European citizens' initiative on the right to water (Right2Water)71 , a Union-wide public consultation was launched and a Regulatory Fitness and Performance (REFIT) Evaluation of Directive 98/83/EC was performed72 . It became apparent from that exercise that certain provisions of Directive 98/83/EC needed to be updated. Four areas were identified as offering scope for improvement, namely the list of quality-based parametric values, the limited reliance on a risk-based approach, the imprecise provisions on consumer information, and the disparities between approval systems for materials in contact with water intended for human consumption. In addition, the European citizens' initiative on the right to water identified as a distinct problem the fact that part of the population, especially marginalised groups, has no access to water intended for human consumption, which is also a commitment under Sustainable Development Goal 6 of UN Agenda 2030. A final issue identified is the general lack of awareness of water leakages, which are driven by underinvestment in maintenance and renewal of the water infrastructure, as also pointed out in the European Court of Auditors' Special Report on water infrastructure73 .
(4)  Following the conclusion of the European citizens' initiative on the right to water (Right2Water)71 which called on the Union to increase its efforts to achieve universal access to water, a Union-wide public consultation was launched and a Regulatory Fitness and Performance (REFIT) Evaluation of Directive 98/83/EC was performed72 . It became apparent from that exercise that certain provisions of Directive 98/83/EC needed to be updated. Four areas were identified as offering scope for improvement, namely the list of quality-based parametric values, the limited reliance on a risk-based approach, the imprecise provisions on consumer information, and the disparities between approval systems for materials in contact with water intended for human consumption and the implications this has for human health. In addition, the European citizens' initiative on the right to water identified as a distinct problem the fact that part of the population, among vulnerable and marginalised groups, has limited or no access to affordable water intended for human consumption, which is also a commitment made under Sustainable Development Goal 6 of UN Agenda 2030. In this context, the European Parliament recognised a right of access to water intended for human consumption for all in the Union. A final issue identified is the general lack of awareness of water leakages, which are driven by underinvestment in maintenance and renewal of the water infrastructure, as also pointed out in the European Court of Auditors' Special Report on water infrastructure73, and by what is sometimes insufficient knowledge of water systems.
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71 COM(2014)0177
71 COM(2014)0177
72 SWD(2016)0428
72 SWD(2016)0428
73 Special report of the European Court of Auditors SR 12/2017: "Implementing the Drinking Water Directive: water quality and access to it improved in Bulgaria, Hungary and Romania, but investment needs remains substantial".
73 Special report of the European Court of Auditors SR 12/2017: "Implementing the Drinking Water Directive: water quality and access to it improved in Bulgaria, Hungary and Romania, but investment needs remains substantial".
Amendment 8
Proposal for a directive
Recital 4 a (new)
(4a)   In order to fulfil the ambitious goals set up under the United Nations' Sustainable Development Goal No 6, Member States should be obliged to implement action plans to ensure universal and equitable access to safe and affordable drinking water for all by 2030.
Amendment 9
Proposal for a directive
Recital 4 b (new)
(4b)   The European Parliament adopted resolution of 8 September 2015 on the follow-up to the European Citizens’ Initiative Right2Water.
Amendment 11
Proposal for a directive
Recital 5 a (new)
(5a)   Water intended for human consumption plays a fundamental role in the Union's ongoing efforts to strengthen the protection of human health and the environment against endocrine-disrupting chemicals. The regulation of endocrine-disrupting compounds in this Directive constitutes a promising step in line with the updated Union strategy on endocrine disruptors, which the Commission is obliged to deliver without any further delay.
Amendment 13
Proposal for a directive
Recital 6 a (new)
(6a)  Where scientific knowledge is not sufficient to determine the human health risk, or absence thereof, of a substance present in water intended for human consumption, or the permissible value for the presence of that substance, it should be placed on a watchlist, on the basis of the precautionary principle, until there are clearer scientific data. Accordingly, Member States should monitor such emerging parameters separately.
Amendment 14
Proposal for a directive
Recital 6 b (new)
(6b)   Indicator parameters have no direct public-health impact. However, they are important as a means of determining how water production and distribution facilities are functioning and of evaluating water quality. They can help to identify water treatment deficiencies and they also play an important role in increasing and maintaining consumer confidence in water quality. Therefore, they should be monitored by Member States.
Amendment 15
Proposal for a directive
Recital 7
(7)  Where necessary to protect human health within their territories, Member States should be required to set values for additional parameters not included in Annex I .
(7)  Where necessary for full implementation of the precautionary principle and to protect human health within their territories, Member States should be required to set values for additional parameters not included in Annex I .
Amendment 16
Proposal for a directive
Recital 8
(8)  Preventive safety planning and risk-based elements were only considered to a limited extent in Directive 98/83/EC. The first elements of a risk-based approach were already introduced in 2015 with Directive (EU) 2015/1787, which amended Directive 98/83/EC so as to allow Member States to derogate from the monitoring programmes they have established, provided credible risk assessments are performed, which may be based on the WHO’s Guidelines for Drinking Water Quality76 . Those Guidelines, laying down the so-called "Water Safety Plan" approach, together with standard EN 15975-2 concerning security of drinking water supply, are internationally recognised principles on which the production, distribution, monitoring and analysis of parameters in water intended for human consumption are based. They should be maintained in this Directive. To ensure that those principles are not limited to monitoring aspects, to focus time and resources on risks that matter and on cost-effective source measures, and to avoid analyses and efforts on non-relevant issues, it is appropriate to introduce a complete risk-based approach, throughout the supply chain, from the abstraction area to distribution until the tap. That approach should consist of three components: first, an assessment by the Member State of the hazards associated with the abstraction area ("hazard assessment"), in line with the WHO’s Guidelines and Water Safety Plan Manual77 ; second, a possibility for the water supplier to adapt monitoring to the main risks ("supply risk assessment"); and third, an assessment by the Member State of the possible risks stemming from the domestic distribution systems (e.g. Legionella or lead) ("domestic distribution risk assessment"). Those assessments should be regularly reviewed, inter alia, in response to threats from climate-related extreme weather events, known changes of human activity in the abstraction area or in response to source-related incidents. The risk-based approach ensures a continuous exchange of information between competent authorities and water suppliers.
(8)  Preventive safety planning and risk-based elements were only considered to a limited extent in Directive 98/83/EC. The first elements of a risk-based approach were already introduced in 2015 with Directive (EU) 2015/1787, which amended Directive 98/83/EC so as to allow Member States to derogate from the monitoring programmes they have established, provided credible risk assessments are performed, which may be based on the WHO’s Guidelines for Drinking Water Quality76. Those Guidelines, laying down the so-called "Water Safety Plan" approach, together with standard EN 15975-2 concerning security of drinking water supply, are internationally recognised principles on which the production, distribution, monitoring and analysis of parameters in water intended for human consumption are based. They should be maintained in this Directive. To ensure that those principles are not limited to monitoring aspects, to focus time and resources on risks that matter and on cost-effective source measures, and to avoid analyses and efforts on non-relevant issues, it is appropriate to introduce a complete risk-based approach, throughout the supply chain, from the abstraction area to distribution until the tap. That approach should be based on the knowledge gained and actions carried out under Directive 2000/60/EC and should take into account more effectively the impact of climate change on water resources. A risk-based approach should consist of three components: first, an assessment by the Member State of the hazard associated with the abstraction area ("hazard assessment"), in line with the WHO’s Guidelines and Water Safety Plan Manual77; second, a possibility for the water supplier to adapt monitoring to the main risks ("supply risk assessment"); and third, an assessment by the Member State of the possible risks stemming from domestic distribution systems (e.g. Legionella or lead), with special focus on priority premises ("domestic distribution risk assessment"). Those assessments should be regularly reviewed, inter alia, in response to threats from climate-related extreme weather events, known changes of human activity in the abstraction area or in response to source-related incidents. The risk-based approach ensures a continuous exchange of information between competent authorities, water suppliers and other stakeholders, including those responsible for the pollution source or the risk of pollution. As an exception, the implementation of the risk-based approach should be adapted to the specific constraints of maritime vessels that desalinate water and carry passengers. European flag maritime vessels comply with the international regulatory framework when sailing in international waters. Furthermore, there are particular constraints for the transport and production of water intended for human consumption on board which means that the provisions of this Directive should be adapted accordingly.
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76 Guidelines for drinking water quality, Fourth Edition, World Health Organisation, 2011 http://www.who.int/water_sanitation_health/publications/2011/dwq_guidelines/en/index.html
76 Guidelines for drinking water quality, Fourth Edition, World Health Organisation, 2011 http://www.who.int/water_sanitation_health/publications/2011/dwq_guidelines/en/index.html
77 Water Safety Plan Manual: step-by-step risk management for drinking water suppliers, World Health Organisation, 2009, http://apps.who.int/iris/bitstream/10665/75141/1/9789241562638_eng.pdf
77 Water Safety Plan Manual: step-by-step risk management for drinking water suppliers, World Health Organisation, 2009, http://apps.who.int/iris/bitstream/10665/75141/1/9789241562638_eng.pdf
Amendment 17
Proposal for a directive
Recital 8 a (new)
(8a)   Ineffective use of water resources, in particular leakage in the water supply infrastructure, leads to over exploitation of scarce resources of water intended for human consumption. This severely hinders the Member States in reaching the objectives set under Directive 2000/60/EC.
Amendment 18
Proposal for a directive
Recital 9
(9)  The hazard assessment should be geared towards reducing the level of treatment required for the production of water intended for human consumption, for instance by reducing the pressures causing the pollution of water bodies used for abstraction of water intended for human consumption. To that end, Member States should identify hazards and possible pollution sources associated with those water bodies and monitor pollutants which they identify as relevant, for instance because of the hazards identified (e.g. microplastics, nitrates, pesticides or pharmaceuticals identified under Directive 2000/60/EC of the European Parliament and of the Council78 ), because of their natural presence in the abstraction area (e.g. arsenic), or because of information from the water suppliers (e.g. sudden increase of a specific parameter in raw water). Those parameters should be used as markers that trigger action by competent authorities to reduce the pressure on the water bodies, such as prevention or mitigating measures (including research to understand impacts on health where necessary), to protect those water bodies and address the pollution source, in cooperation with water suppliers and stakeholders.
(9)  The hazard assessment should take a holistic approach to risk assessment, founded on the explicit aim of reducing the level of treatment required for the production of water intended for human consumption, for instance by reducing the pressures causing the pollution of, or a risk of pollution of, water bodies used for abstraction of water intended for human consumption. To that end, Member States should identify hazard and possible pollution sources associated with those water bodies and monitor pollutants which they identify as relevant, for instance because of the hazard identified (e.g. microplastics, nitrates, pesticides or pharmaceuticals identified under Directive 2000/60/EC of the European Parliament and of the Council78), because of their natural presence in the abstraction area (e.g. arsenic), or because of information from the water suppliers (e.g. sudden increase of a specific parameter in raw water). In accordance with Directive 2000/60/EC, those parameters should be used as markers that trigger action by competent authorities to reduce the pressure on the water bodies, such as prevention or mitigating measures (including research to understand impacts on health where necessary), to protect those water bodies and address the pollution source or risk, in cooperation with all stakeholders, including those responsible for pollutant or potential pollutant sources. Where a Member State finds, via the hazard assessment, that a parameter is not present in a given abstraction area, for instance because that substance never occurs in groundwaters or surface waters, the Member State should inform the relevant water suppliers and should be able to allow them to decrease the monitoring frequency for that parameter, or remove that parameter from the list of parameters to be monitored, without carrying out a supply risk assessment.
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78 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p. 1).
78 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p. 1).
Amendment 19
Proposal for a directive
Recital 11
(11)  The parametric values used to assess the quality of water intended for human consumption are to be complied with at the point where water intended for human consumption is made available to the appropriate user. However, the quality of water intended for human consumption can be influenced by the domestic distribution system. The WHO notes that, in the Union, Legionella causes the highest health burden of all waterborne pathogens. It is transmitted by warm water systems through inhalation, for instance during showering. It is therefore clearly linked to the domestic distribution system. Since imposing a unilateral obligation to monitor all private and public premises for this pathogen would lead to unreasonably high costs, a domestic distribution risk assessment is therefore more suited to address this issue. In addition, the potential risks stemming from products and materials in contact with water intended for human consumption should also be considered in the domestic distribution risk assessment. The domestic distribution risk assessment should therefore include, inter alia, focusing monitoring on priority premises, assessing the risks stemming from the domestic distribution system and related products and materials, and verifying the performance of construction products in contact with water intended for human consumption on the basis of their declaration of performance in accordance with Regulation (EU) No 305/2011 of the European Parliament and of the Council79 . The information referred to in Articles 31 and 33 of Regulation (EC) No 1907/2006 of the European Parliament and of the Council80 is also to be supplied together with the declaration of performance. On the basis of this assessment, Member States should take all necessary measures to ensure, inter alia, that appropriate control and management measures (e.g. in case of outbreaks) are in place, in line with the guidance of the WHO81 , and that the migration from construction products does not endanger human health. However, without prejudice to Regulation (EU) No 305/2011, where these measures would imply limits to the free movement of products and materials in the Union, these limits need to be duly justified and strictly proportionate, and not constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.
(11)  The parametric values used to assess the quality of water intended for human consumption are to be complied with at the point where water intended for human consumption is made available to the appropriate user. However, the quality of water intended for human consumption can be influenced by the domestic distribution system. The WHO notes that, in the Union, Legionella causes the highest health burden of all waterborne pathogens, in particular Legionella pneumophila, which accounts for most cases of Legionnaires’ disease in the Union. It is transmitted by warm water systems through inhalation, for instance during showering. It is therefore clearly linked to the domestic distribution system. Since imposing a unilateral obligation to monitor all private and public premises for this pathogen would lead to unreasonably high costs and would contravene the principle of subsidiarity, a domestic distribution risk assessment is therefore more suited to address this issue, with a special focus on priority premises. In addition, the potential risks stemming from products and materials in contact with water intended for human consumption should also be considered in the domestic distribution risk assessment. The domestic distribution risk assessment should therefore include, inter alia, focusing monitoring on priority premises, assessing the risks stemming from the domestic distribution system and related products and materials in contact with water intended for human consumption. The information referred to in Articles 31 and 33 of Regulation (EC) No 1907/2006 of the European Parliament and of the Council80 is also to be supplied together with the declaration of performance. On the basis of this assessment, Member States should take all necessary measures to ensure, inter alia, that appropriate control and management measures (e.g. in case of outbreaks) are in place, in line with the guidance of the WHO81, and that the migration from substances and materials in contact with water intended for human consumption does not endanger human health.
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79 Regulation (EU) No 305/2011 of the European Parliament and of the Council of 9 March 2011 laying down harmonised conditions for the marketing of construction products and repealing Council Directive 89/106/EEC (OJ L 88, 4.4.2011, p. 5).
80 Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), establishing a European Chemicals Agency, amending Directive 1999/45/EC and repealing Council Regulation (EEC) No 793/93 and Commission Regulation (EC) No 1488/94 as well as Council Directive 76/769/EEC and Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC (OJ L 396, 30.12.2006, p. 1).
80 Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), establishing a European Chemicals Agency, amending Directive 1999/45/EC and repealing Council Regulation (EEC) No 793/93 and Commission Regulation (EC) No 1488/94 as well as Council Directive 76/769/EEC and Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC (OJ L 396, 30.12.2006, p. 1).
81 "Legionella and the prevention of Legionellosis", World Health Organisation, 2007, http://www.who.int/water_sanitation_health/emerging/legionella.pdf
81 "Legionella and the prevention of Legionellosis", World Health Organisation, 2007, http://www.who.int/water_sanitation_health/emerging/legionella.pdf
Amendment 20
Proposal for a directive
Recital 12
(12)  The provisions of Directive 98/83/EC on quality assurance of treatment, equipment and materials did not succeed in addressing obstacles to the internal market when it comes to the free circulation of construction products in contact with water intended for human consumption. National product approvals are still in place, with different requirements from one Member State to another. This renders it difficult and costly for manufacturers to market their products all over the Union. The removal of technical barriers may only be effectively achieved by establishing harmonised technical specifications for construction products in contact with water intended for human consumption under Regulation (EU) No 305/2011. That Regulation allows for the development of European standards harmonising the assessment methods for construction products in contact with water intended for human consumption and for threshold levels and classes to be set in relation to the performance level of an essential characteristic. To that end, a standardisation request specifically requiring standardisation work on hygiene and safety for products and materials in contact with water intended for human consumption under Regulation (EU) No 305/2011 has been included in the 2017 standardisation Work Programme82, and a standard is to be issued by 2018. The publication of this harmonised standard in the Official Journal of the European Union will ensure a rational decision-making for placing or making available on the market safe construction products in contact with water intended for human consumption. As a consequence, the provisions on equipment and material in contact with water intended for human consumption should be deleted, partly replaced by provisions related to the domestic distribution risk assessment and complemented by relevant harmonised standards under Regulation (EU) No 305/2011.
(12)  The provisions of Directive 98/83/EC on quality assurance of treatment, equipment and materials did not succeed in addressing obstacles to the internal market when it comes to the free circulation of construction products in contact with water intended for human consumption or providing sufficient protection with regard to human health. National product approvals are still in place, with different requirements from one Member State to another. This renders it difficult and costly for manufacturers to market their products all over the Union. That situation stems from the fact that there are no minimum European hygiene standards for all products and materials in contact with water intended for human consumption, which is essential for fully ensuring mutual recognition between Member States. The removal of technical barriers and conformity of all products and materials in contact with water intended for human consumption at Union level can, therefore, only be effectively achieved by establishing minimum quality requirements at Union level. As a consequence, those provisions should be strengthened by means of a procedure for harmonisation of such products and materials. That work should draw on the experience gained and advances made by a number of Member States that have been working together for some years, in a concerted effort, to bring about regulatory convergence.
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82 SWD(2016)0185
Amendment 21
Proposal for a directive
Recital 13
(13)  Each Member State should ensure that monitoring programmes are established to check that water intended for human consumption meets the requirements of this Directive. Most of the monitoring carried out for the purposes of this Directive is performed by water suppliers. A certain flexibility should be granted to water suppliers as regards the parameters they monitor for the purposes of the supply risk assessment. If a parameter is not detected, water suppliers should be able to decrease the monitoring frequency or stop monitoring that parameter altogether. The supply risk assessment should be applied to most parameters. However, a core list of parameters should always be monitored with a certain minimum frequency. This Directive mainly sets provisions on monitoring frequency for the purposes of compliance checks and only limited provisions on monitoring for operational purposes. Additional monitoring for operational purposes may be necessary to ensure the correct functioning of water treatment, at the discretion of water suppliers. In that regard, the water suppliers may refer to the WHO's Guidelines and Water Safety Plan Manual.
(13)  Each Member State should ensure that monitoring programmes are established to check that water intended for human consumption meets the requirements of this Directive. Most of the monitoring carried out for the purposes of this Directive is performed by water suppliers but, where necessary, Member States should clarify with which competent authorities the obligations stemming from the transposition of this Directive lie. A certain flexibility should be granted to water suppliers as regards the parameters they monitor for the purposes of the supply risk assessment. If a parameter is not detected, water suppliers should be able to decrease the monitoring frequency or stop monitoring that parameter altogether. The supply risk assessment should be applied to most parameters. However, a core list of parameters should always be monitored with a certain minimum frequency. This Directive mainly sets provisions on monitoring frequency for the purposes of compliance checks and only limited provisions on monitoring for operational purposes. Additional monitoring for operational purposes may be necessary to ensure the correct functioning of water treatment, at the discretion of water suppliers. In that regard, the water suppliers may refer to the WHO's Guidelines and Water Safety Plan Manual.
Amendment 188
Proposal for a directive
Recital 14
(14)  The risk-based approach should gradually be applied by all water suppliers, including small water suppliers, as the evaluation of Directive 98/83/EC showed deficiencies in its implementation by those suppliers, which were sometimes due to the cost of performing unnecessary monitoring operations. When applying the risk-based approach, security concerns should be taken into account.
(14)  The risk-based approach should be applied by all water suppliers, including very small, small and medium-sized water suppliers, as the evaluation of Directive 98/83/EC showed deficiencies in its implementation by those suppliers, which were sometimes due to the cost of performing unnecessary monitoring operations, while allowing for the possibility for derogations for very small suppliers. When applying the risk-based approach, security concerns and concerns relating to the ‘polluter pays’ principle should be taken into account. For smaller suppliers, the competent authority should support the monitoring operations by providing expert support.
Amendment 24
Proposal for a directive
Recital 14 a (new)
(14a)   In order to deliver the strongest protection for public health, Member States should ensure a clear and balanced distribution of responsibilities for the application of the risk-based approach in line with their national institutional and legal framework.
Amendment 25
Proposal for a directive
Recital 15
(15)  In the event of non-compliance with the standards imposed by this Directive the Member State concerned should immediately investigate the cause and ensure that the necessary remedial action is taken as soon as possible to restore the quality of the water. In cases where the water supply constitutes a potential danger to human health, the supply of such water should be prohibited or its use restricted. In addition, it is important to clarify that failure to meet the minimum requirements for values relating to microbiological and chemical parameters should automatically be considered by Member States as a potential danger to human health. In cases where remedial action is necessary to restore the quality of water intended for human consumption, in accordance with Article 191(2) of the Treaty, priority should be given to action which rectifies the problem at source.
(15)  In the event of non-compliance with the standards imposed by this Directive the Member State concerned should immediately investigate the cause and ensure that the necessary remedial action is taken as soon as possible to restore the quality of the water. In cases where the water supply constitutes a potential danger to human health, the supply of such water should be prohibited or its use restricted, and citizens who could be affected should be duly informed. In addition, in the event of failure to meet the minimum requirements for values relating to microbiological and chemical parameters, Member States should determine whether exceeding the values constitutes a potential risk to human health. To that end, Member States should take account of, in particular, the extent to which minimum requirements have not been met and the type of parameter concerned. In cases where remedial action is necessary to restore the quality of water intended for human consumption, in accordance with Article 191(2) of the Treaty, priority should be given to action which rectifies the problem at source.
Amendment 26
Proposal for a directive
Recital 15 a (new)
(15a)   It is important to prevent contaminated water causing a potential danger to human health. Therefore, the supply of such water should be prohibited or its use restricted.
Amendment 27
Proposal for a directive
Recital 16
(16)  Member States should no longer be authorised to grant derogations from this Directive. Derogations were initially used to allow Member States up to nine years to resolve a non-compliance with a parametric value. This procedure proved to be burdensome for Member States and Commission alike. In addition, in some cases, it led to delays in remedial actions being taken, as the possibility for derogation was considered as a transitional period. The provision on derogations should therefore be deleted. For reasons of protection of human health, when parametric values are exceeded, the provisions related to remedial actions should apply immediately without the possibility of granting a derogation from the parametric value. Derogations granted by Member States pursuant to Article 9 of Directive 98/83/EC and still applicable at the date of entry into force of this Directive should, however, continue to apply until the end of the derogation but should not be renewed.
(16)  Member States should be authorised to grant derogations from this Directive. Derogations were initially used to allow Member States up to nine years to resolve a non-compliance with a parametric value. This procedure has proved to be useful for Member States, given the level of ambition of the Directive. It should be noted, however, that, in some cases, it has led to delays in remedial actions being taken, as the possibility for derogation was sometimes considered to be a transitional period. In the light of the fact, firstly, that the quality parameters in this Directive are to be strengthened and, secondly, that emerging pollutants are being increasingly detected, requiring stepped-up evaluation, monitoring and management actions, it remains, nonetheless, necessary to maintain a derogation procedure that is in keeping with those circumstances, provided that they do not constitute a potential risk to human health and provided that the supply of water intended for human consumption in the area concerned cannot otherwise be maintained by any other reasonable means. The provision in Directive 98/83/EC on derogations should therefore be amended so as to ensure faster and more effective compliance by Member States with the requirements of this Directive. Derogations granted by Member States pursuant to Article 9 of Directive 98/83/EC and still applicable at the date of entry into force of this Directive should continue to apply in accordance with the arrangements laid down by the provisions in force when the derogation was granted.
Amendment 28
Proposal for a directive
Recital 17
(17)  The Commission, in its reply to the European citizens’ initiative ‘Right2Water’ in 201483 , invited Member States to ensure access to a minimum water supply for all citizens, in accordance with the WHO recommendations. It also committed to continue to "improve access to safe drinking water […] for the whole population through environmental policies"84 . This is in line with UN Sustainable Development Goal 6 and the associated target to "achieve universal and equitable access to safe and affordable drinking water for all". The concept of equitable access covers a wide array of aspects such as availability (due for instance to geographic reasons, lack of infrastructure or the specific situation of certain parts of the populations), quality, acceptability, or financial affordability. Concerning affordability of water, it is important to recall that, when setting water tariffs in accordance with the principle of recovery of costs set out in Directive 2000/60/EC, Member States may have regard to the variation in the economic and social conditions of the population and may therefore adopt social tariffs or take measures safeguarding populations at a socio-economic disadvantage. This Directive deals, in particular, with the aspects of access to water which are related to quality and availability. To address those aspects, as part of the reply to the European citizens' initiative and to contribute to the implementation of Principle 20 of the European Pillar of Social Rights85 that states that "everyone has the right to access essential services of good quality, including water", Member States should be required to tackle the issue of access to water at national level whilst enjoying some discretion as to the exact type of measures to be implemented. This can be done through actions aimed, inter alia, at improving access to water intended for human consumption for all, for instance with freely accessible fountains in cities, and promoting its use by encouraging the free provision of water intended for human consumption in public buildings and restaurants.
(17)  The Commission, in its reply to the European citizens’ initiative ‘Right2Water’ in 201483, invited Member States to ensure access to a minimum water supply for all citizens, in accordance with the WHO recommendations. It also committed to continue to "improve access to safe drinking water […] for the whole population through environmental policies"84. This is in line with Articles 1 and 2 of the Charter of Fundamental Rights of the European Union. This is also in line with UN Sustainable Development Goal 6 and the associated target to "achieve universal and equitable access to safe and affordable drinking water for all". The concept of equitable access covers a wide array of aspects such as availability (due for instance to geographic reasons, lack of infrastructure or the specific situation of certain parts of the populations), quality, acceptability, or financial affordability. Concerning affordability of water, it is important to recall that, without prejudice to Article 9(4) of Directive 2000/60/EC, when setting water tariffs in accordance with the principle of recovery of costs set out in that Directive, Member States may have regard to the variation in the economic and social conditions of the population and may therefore adopt social tariffs or take measures safeguarding populations at a socio-economic disadvantage. This Directive deals, in particular, with the aspects of access to water which are related to quality and availability. To address those aspects, as part of the reply to the European citizens' initiative and to contribute to the implementation of Principle 20 of the European Pillar of Social Rights85 that states that "everyone has the right to access essential services of good quality, including water", Member States should be required to tackle the issue of affordable access to water at national level whilst enjoying a certain margin of discretion as to the exact type of measures to be implemented. This can be done through actions aimed, inter alia, at improving access to water intended for human consumption for all, for instance by not unjustifiably making water quality requirements more stringent on public-health grounds, which would increase the price of water for citizens, with freely accessible fountains in cities, and promoting its use by encouraging the free provision of water intended for human consumption in public buildings, restaurants, shopping and recreational centres, as well as areas of transit and large footfall such as train stations or airports. Member States should be free to determine the right mix of such instruments with regard to their specific national circumstances.
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_________________
83 COM(2014)0177
83 COM(2014)0177
84 COM(2014)0177, p. 12.
84 COM(2014)0177, p. 12.
85 Interinstitutional Proclamation on the European Pillar of Social Rights (2017/C 428/09) of 17 November 2017 (OJ C 428, 13.12.2017, p. 10).
85 Interinstitutional Proclamation on the European Pillar of Social Rights (2017/C 428/09) of 17 November 2017 (OJ C 428, 13.12.2017, p. 10).
Amendment 29
Proposal for a directive
Recital 18
(18)  The European Parliament, in its Resolution on the "follow-up to the European citizens’ initiative Right2Water"86 , "requested that Member States should pay special attention to the needs of vulnerable groups in society"87 . The specific situation of minority cultures, such as Roma, Sinti, Travellers, Kalé, Gens du voyage etc., whether sedentary or not – in particular their lack of access to drinking water – was also acknowledged in the Commission Report on the implementation of the EU Framework for National Roma Integration Strategies88 and the Council Recommendation on effective Roma integration measures in the Member States89 . In light of that general context, it is appropriate that Member States pay particular attention to vulnerable and marginalised groups by taking the necessary measures to ensure that those groups have access to water. Without prejudice to the right of the Member States to define those groups, they should at least include refugees, nomadic communities, homeless people and minority cultures such as Roma, Sinti, Travellers, Kalé, Gens du voyage, etc., whether sedentary or not. Such measures to ensure access, left to the appreciation of the Member States, might for example include providing alternative supply systems (individual treatment devices), providing water via tankers (trucks and cisterns) and ensuring the necessary infrastructure for camps.
(18)  The European Parliament, in its Resolution on the "follow-up to the European citizens’ initiative Right2Water"86, "requested that Member States should pay special attention to the needs of vulnerable groups in society"87. The specific situation of minority cultures, such as Roma and Travellers, whether sedentary or not – in particular their lack of access to drinking water – was also acknowledged in the Commission Report on the implementation of the EU Framework for National Roma Integration Strategies88 and the Council Recommendation on effective Roma integration measures in the Member States89. In light of that general context, it is appropriate that Member States pay particular attention to vulnerable and marginalised groups by taking the necessary measures to ensure that those groups have access to water. Taking into account the principle of recovery of costs set out in Directive 2000/60/EC, Member States should improve access to water for vulnerable and marginalised groups without jeopardising the supply of universally affordable high-quality water. Without prejudice to the right of the Member States to define those groups, they should at least include refugees, nomadic communities, homeless people and minority cultures such as Roma and Travellers, whether sedentary or not. Such measures to ensure access, left to the appreciation of the Member States, might for example include providing alternative supply systems (individual treatment devices), providing water via tankers (trucks and cisterns) and ensuring the necessary infrastructure for camps. Where local public authorities are made responsible for meeting those obligations, Member States should ensure that they have sufficient financial resources and technical and material capacities and should support them accordingly, by providing expert support for example. In particular, the distribution of water for vulnerable and marginalised groups should not be disproportionately costly for local public authorities.
_________________
_________________
86 P8_TA(2015)0294
86 P8_TA(2015)0294
87 P8_TA(2015)0294, paragraph 62.
87 P8_TA(2015)0294, paragraph 62.
88 COM(2014)0209
88 COM(2014)0209
89 Council Recommendation (2013/C 378/01) of 9 December 2013 on effective Roma integration measures in the Member States (OJ C 378, 24.12.2013, p. 1).
89 Council Recommendation (2013/C 378/01) of 9 December 2013 on effective Roma integration measures in the Member States (OJ C 378, 24.12.2013, p. 1).
Amendment 30
Proposal for a directive
Recital 19
(19)  The 7th Environment Action Programme to 2020 ‘Living well, within the limits of our planet’90 , requires that the public have access to clear environmental information at national level. Directive 98/83/EC only provided for passive access to information, meaning that Member States merely had to ensure that information was available. Those provisions should therefore be replaced to ensure that up-to-date information is easily accessible, for instance on a website whose link should be actively distributed. The up-to-date information should not only include results from the monitoring programmes, but also additional information that the public may find useful, such as information on indicators (iron, hardness, minerals, etc.), which often influence consumers' perception of tap water. To that end, the indicator parameters of Directive 98/83/EC that did not provide health-related information should be replaced by on-line information on those parameters. For very large water suppliers, additional information on, inter alia, energy efficiency, management, governance, cost structure, and treatment applied, should also be available on-line. It is assumed that better consumer knowledge and improved transparency will contribute to increasing citizens' confidence in the water supplied to them. This in turn is expected to lead to increased use of tap water, thereby contributing to reduced plastic litter and greenhouse gas emissions, and a positive impact on climate change mitigation and the environment as a whole.
(19)  The 7th Environment Action Programme to 2020 ‘Living well, within the limits of our planet’90, requires that the public have access to clear environmental information at national level. Directive 98/83/EC only provided for passive access to information, meaning that Member States merely had to ensure that information was available. Those provisions should therefore be replaced to ensure that up-to-date information that is comprehensible and relevant to consumers and easily accessible, for instance in a booklet, a website or a smart application. The up-to-date information should not only include results from the monitoring programmes, but also additional information that the public may find useful, such as the outcome of actions taken to monitor water suppliers as regards water quality parameters and information on indicator parameters listed in Part Ba of Annex I. For very large water suppliers, additional information on, inter alia, management, tariff structure and treatment applied, should also be available on-line. The purpose of better consumer knowledge of relevant information and improved transparency should be to increase citizens' confidence in the water supplied to them, as well as in water services, and should lead to an increased use of tap water as drinking water, which could contribute to reduced plastic usage and litter and greenhouse gas emissions, and a positive impact on climate change mitigation and the environment as a whole.
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90 Decision No 1386/2013/EU of the European Parliament and of the Council of 20 November 2013 on a General Union Environment Action Programme to 2020 ‘Living well, within the limits of our planet’ (OJ L 354, 28.12.2013, p. 171).
90 Decision No 1386/2013/EU of the European Parliament and of the Council of 20 November 2013 on a General Union Environment Action Programme to 2020 ‘Living well, within the limits of our planet’ (OJ L 354, 28.12.2013, p. 171).
Amendment 31
Proposal for a directive
Recital 20
(20)  For the same reasons, and in order to make consumers more aware of the implications of water consumption, they should also receive information (for instance on their invoice or by smart applications) on the volume consumed, the cost structure of the tariff charged by the water supplier, including variable and fixed costs, as well as on the price per litre of water intended for human consumption, thereby allowing a comparison with the price of bottled water.
(20)  For the same reasons, and in order to make consumers more aware of the implications of water consumption, they should also receive information in an easily accessible manner, for instance on their invoice or by smart application on the volume consumed per year, changes in consumption, a comparison with average household consumption, where such information is available to the water supplier, the structure of the tariff charged by the water supplier, including the distribution of variable and fixed parts of it, as well as on the price per litre of water intended for human consumption, thereby allowing a comparison with the price of bottled water.
Amendment 32
Proposal for a directive
Recital 21
(21)  The principles to be considered in the setting of water tariffs, namely recovery of costs for water services and polluter pays, are set out in Directive 2000/60/EC. However, the financial sustainability of the provision of water services is not always ensured, sometimes leading to under-investment in the maintenance of water infrastructure. With the improvement of monitoring techniques, leakage rates – mainly due to such under-investment – have become increasingly apparent and reduction of water losses should be encouraged at Union level to improve the efficiency of water infrastructure. In line with the principle of subsidiarity, that issue should be addressed by increasing transparency and consumer information on leakage rates and energy efficiency.
(21)  The fundamental principles to be considered in the setting of water tariffs, without prejudice to Article 9(4) of Directive 2000/60/EC, namely recovery of costs for water services and polluter pays, are set out in that Directive. However, the financial sustainability of the provision of water services is not always ensured, sometimes leading to under-investment in the maintenance of water infrastructure. With the improvement of monitoring techniques, leakage levels – mainly due to such under-investment – have become increasingly apparent and reduction of water losses should be encouraged at Union level to improve the efficiency of water infrastructure. In line with the principle of subsidiarity, in order to raise awareness of this issue, the information related to it should be shared in a more transparent way with consumers.
Amendment 34
Proposal for a directive
Recital 25
(25)  Pursuant to paragraph 22 of the Interinstitutional Agreement on Better Law-Making, the Commission should carry out an evaluation of this Directive within a certain period of time from the date set for its transposition. That evaluation should be based on experience gathered and data collected during the implementation of the Directive, on relevant scientific, analytical, epidemiological data, and on any available WHO recommendations.
(25)  Pursuant to paragraph 22 of the Interinstitutional Agreement on Better Law-Making, the Commission should carry out an evaluation of this Directive within a certain period of time from the date set for its transposition. That evaluation should be based on experience gathered and data collected during the implementation of the Directive, on any available WHO recommendations, and on relevant scientific, analytical and epidemiological data.
Amendment 35
Proposal for a directive
Recital 28
(28)  In order to adapt this Directive to scientific and technical progress or to specify monitoring requirements for the purposes of the hazard and domestic distribution risk assessments, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission to amend Annexes I to IV to this Directive. It is of particular importance that the Commission carry 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, 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. In addition, the empowerment laid down in Annex I, part C, Note 10, of Directive 98/83/EC, to set monitoring frequencies and monitoring methods for radioactive substances has become obsolete due to the adoption of Council Directive 2013/51/Euratom96 and should therefore be deleted. The empowerment laid down in the second subparagraph of part A of Annex III to Directive 98/83/EC concerning amendments of the Directive is no longer necessary and should be deleted.
(28)  In order to adapt this Directive to scientific and technical progress or to specify monitoring requirements for the purposes of the hazard and domestic distribution risk assessments, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission to amend Annexes I to IV to this Directive, and take measures necessary under the changes set out under Article 10a. It is of particular importance that the Commission carry 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, 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. In addition, the empowerment laid down in Annex I, part C, Note 10, of Directive 98/83/EC, to set monitoring frequencies and monitoring methods for radioactive substances has become obsolete due to the adoption of Council Directive 2013/51/Euratom96 and should therefore be deleted. The empowerment laid down in the second subparagraph of part A of Annex III to Directive 98/83/EC concerning amendments of the Directive is no longer necessary and should be deleted.
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96 Council Directive 2013/51/Euratom of 22 October 2013 laying down requirements for the protection of the health of the general public with regard to radioactive substances in water intended for human consumption (OJ L 296, 7.11.2013, p. 12).
96 Council Directive 2013/51/Euratom of 22 October 2013 laying down requirements for the protection of the health of the general public with regard to radioactive substances in water intended for human consumption (OJ L 296, 7.11.2013, p. 12).
Amendment 36
Proposal for a directive
Article 1 – paragraph 1
1.  This Directive concerns the quality of water intended for human consumption.
1.  This Directive concerns the quality of water intended for human consumption for all in the Union.
Amendments 163, 189, 207 and 215
Proposal for a directive
Article 1 – paragraph 2
2.  The objective of this Directive shall be to protect human health from the adverse effects of any contamination of water intended for human consumption by ensuring that it is wholesome and clean.
2.  The objective of this Directive shall be to protect human health from the adverse effects of any contamination of water intended for human consumption by ensuring that it is wholesome and clean, and to provide universal access to water intended for human consumption.
Amendment 38
Proposal for a directive
Article 2 – paragraph 1 – point 1
1.  ‘water intended for human consumption’ shall mean all water either in its original state or after treatment, intended for drinking, cooking, food preparation or production, or other domestic purposes in both public and private premises, regardless of its origin and whether it is supplied from a distribution network, supplied from a tanker or, for spring waters, put in bottles .
1.  ‘water intended for human consumption’ shall mean all water either in its original state or after treatment, intended for drinking, cooking, food preparation or production, or for other food purposes, or other domestic purposes in both public and private premises, including food businesses, regardless of its origin and whether it is supplied from a distribution network, supplied from a tanker or put in bottles or containers.
Amendment 39
Proposal for a directive
Article 2 – paragraph 1 – point 2
2.  ‘domestic distribution system’ shall mean the pipework, fittings and appliances which are installed between the taps that are normally used for human consumption in both public and private premises and the distribution network but only if they are not the responsibility of the water supplier, in its capacity as a water supplier, according to the relevant national law.
(Does not affect the English version.)
Amendment 40
Proposal for a directive
Article 2 – paragraph 1 – point 3
3.  'water supplier' shall mean an entity supplying at least 10 m3 of water intended for human consumption a day as an average.
3.  'water supplier' shall mean a legal entity supplying at least 10 m3 of water intended for human consumption a day as an average.
Amendment 41
Proposal for a directive
Article 2 – paragraph 1 – point 3 a (new)
3a.  'very small water supplier' shall mean a water supplier supplying less than 50 m3 per day or serving less than 250 people.
Amendment 42
Proposal for a directive
Article 2 – paragraph 1 – point 4
4.  'small water supplier' shall mean a water supplier supplying less than 500 m3 per day or serving less than 5 000 people.
4.  'small water supplier' shall mean a water supplier supplying less than 500 m3 per day or serving less than 2 500 people.
Amendment 43
Proposal for a directive
Article 2 – paragraph 1 – point 4 a (new)
4a.  'medium water supplier' shall mean a water supplier supplying at least 500 m3 per day or serving at least 2 500 people.
Amendment 44
Proposal for a directive
Article 2 – paragraph 1 – point 5
5.  'large water supplier' shall mean a water supplier supplying at least 500 m3 per day or serving at least 5 000 people.
5.  'large water supplier' shall mean a water supplier supplying at least 5 000 m3 per day or serving at least 25 000 people.
Amendment 45
Proposal for a directive
Article 2 – paragraph 1 – point 6
6.  'very large water supplier' shall mean a water supplier supplying at least 5 000 m3 per day or serving at least 50 000 people.
6.  'very large water supplier' shall mean a water supplier supplying at least 20 000 m3 per day or serving at least 100 000 people.
Amendment 46
Proposal for a directive
Article 2 – paragraph 1 – point 7
7.  'priority premises' shall mean large premises with many users potentially exposed to water-related risks, such as hospitals, healthcare institutions, buildings with a lodging facility, penal institutions and campgrounds, as identified by Member States.
7.  'priority premises' shall mean large non-household premises with many people, in particular vulnerable people, potentially exposed to water-related risks, such as hospitals, healthcare institutions, retirement homes, schools, universities and other education facilities, crèches and nurseries, sport, recreation, leisure and exhibition facilities, buildings with a lodging facility, penal institutions and campgrounds, as identified by Member States.
Amendment 47
Proposal for a directive
Article 2 – paragraph 1 – point 8 a (new)
8a.   ‘food business’ shall mean a food business as defined in point (2) of Article 3 of Regulation (EC) No 178/2002.
Amendment 48
Proposal for a directive
Article 3 – paragraph 1 a (new)
1a.  For water used in food businesses for the manufacture, processing, preservation or marketing of products or substances intended for human consumption, only Articles 4, 5, 6 and 11 of this Directive shall apply. However, none of the articles of this Directive shall apply where an operator of a food business can demonstrate to the satisfaction of the competent national authorities that the quality of the water it uses does not affect the hygiene of the products or substances resulting from its activities and that such products or substances comply with Regulation (EC) No 852/2004 of the European Parliament and of the Council1a.
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1a Regulation (EC) No 852/2004 of the European Parliament and of the Council of 29 April 2004 on the hygiene of foodstuffs (OJ L 139, 30.4.2004, p. 1).
Amendment 49
Proposal for a directive
Article 3 – paragraph 1 b (new)
1b.  A producer of water intended for human consumption that is put into bottles or containers shall not be considered a water supplier.
Provisions of this Directive shall apply to water intended for human consumption put into bottles or containers insofar as they are not covered by obligations under other Union legislation.
Amendment 50
Proposal for a directive
Article 3 – paragraph 1 c (new)
1c.  Maritime vessels that desalinate water, carry passengers and act as water suppliers shall only be subject to Articles 1 to 7 and 9 to 12 of this Directive and its Annexes.
Amendment 51
Proposal for a directive
Article 4 – paragraph 1 – point c
(c)  Member States have taken all other measures necessary to comply with the requirements set out in Articles 5 to 12 of this Directive.
(c)  Member States have taken all other measures necessary to comply with the requirements set out:
(i)   in Articles 4 to 12 of this Directive for water intended for human consumption supplied to the final consumers from a distribution network or from a tanker;
(ii)  in Articles 4, 5 and 6 and Article 11(4) of this Directive for water intended for human consumption put into bottles or containers in a food business;
(iii)  in Articles 4, 5, 6 and 11 of this Directive for water intended for human consumption produced and used in a food business for the production, processing and distribution of food.
Amendment 52
Proposal for a directive
Article 4 – paragraph 2
2.  Member States shall ensure that the measures taken to implement this Directive in no circumstances have the effect of allowing, directly or indirectly, any deterioration of the present quality of water intended for human consumption or any increase in the pollution of waters used for the production of water intended for human consumption .
2.  Member States shall ensure that the measures taken to implement this Directive adhere fully to the precautionary principle and in no circumstances have the effect of allowing, directly or indirectly, any deterioration of the present quality of water intended for human consumption or any increase in the pollution of waters used for the production of water intended for human consumption .
Amendment 53
Proposal for a directive
Article 4 – paragraph 2 a (new)
2a.  Member States shall take measures to ensure that competent authorities carry out an assessment of the water leakage levels on their territory and of the potential for improvements in water leakage reduction in the drinking water sector. That assessment shall take into account relevant public health, environmental, technical and economic aspects. Member States shall adopt, by 31 December 2022, national targets to reduce the leakage levels of water suppliers in their territory by 31 December 2030. Member States may provide meaningful incentives to ensure that water suppliers in their territory meet the national targets.
Amendment 54
Proposal for a directive
Article 4 – paragraph 2 b (new)
2b.  If a competent authority in charge of the production and distribution of water intended for human consumption hands over the management of all or part of the water production or supply activities to a water supplier, the contract between the competent authority and the water supplier shall specify each party’s responsibilities under this Directive.
Amendment 55
Proposal for a directive
Article 5 – paragraph 1
1.  Member States shall set values applicable to water intended for human consumption for the parameters set out in Annex I, which shall not be less stringent than the values set out therein.
1.  Member States shall set values applicable to water intended for human consumption for the parameters set out in Annex I.
Amendment 56
Proposal for a directive
Article 5 – paragraph 1 a (new)
1a.  The values set pursuant to paragraph 1 shall not be less stringent than those set out in Parts A, B and Ba of Annex I. As regards the parameters set out in Part Ba of Annex I, the values shall be set only for monitoring purposes and for the sake of ensuring that the requirements set out in Article 12 are met.
Amendment 57
Proposal for a directive
Article 5 – paragraph 2 – subparagraph 1 a (new)
The Member States shall take all necessary measures to ensure that the treatment agents, the materials, and the disinfection procedures used for disinfection purposes in water supply systems do not adversely affect the quality of water intended for human consumption. Any contamination of water intended for human consumption from the use of such agents, materials and procedures shall be minimised without, however, compromising the effectiveness of the disinfection.
Amendment 58
Proposal for a directive
Article 6 – paragraph 1 – introductory part
The parametric values set in accordance with Article 5 for the parameters listed in Annex I, parts A and B, shall be complied with:
The parametric values set in accordance with Article 5 for the parameters listed in Annex I, parts A, B and C, shall be complied with:
Amendment 59
Proposal for a directive
Article 6 – paragraph 1 – point c
(c)  in the case of spring waters , at the point at which the water is put into the bottles.
(c)  in the case of water intended for human consumption put into bottles or containers, at the point at which the water is put into the bottles or containers;
Amendment 60
Proposal for a directive
Article 6 – paragraph 1 – point c a (new)
(ca)  in the case of water used in a food business where water is supplied by a water supplier, at the point of delivery in the food business.
Amendment 61
Proposal for a directive
Article 6 – paragraph 1 a (new)
1a.  In the case of water covered by point (a) of paragraph 1, Member States shall be deemed to have fulfilled their obligations under this Article, where it can be established that non-compliance with the parameters provided for in Article 5 is caused by a private distribution system or the maintenance thereof, except as regards priority premises.
Amendment 62
Proposal for a directive
Article 7 – paragraph 1 – point a
(a)  a hazard assessment of bodies of water used for the abstraction of water intended for human consumption, in accordance with Article 8;
(a)  a hazard assessment of bodies of water or parts of bodies of water used for the abstraction of water intended for human consumption, carried out by Member States in accordance with Article 8;
Amendment 63
Proposal for a directive
Article 7 – paragraph 1 – point b
(b)  a supply risk assessment carried out by the water suppliers for the purposes of monitoring the quality of the water they supply, in accordance with Article 9 and Annex II, part C;
(b)  a supply risk assessment carried out by the water suppliers in each water supply system for the purposes of safeguarding and monitoring the quality of the water they supply, in accordance with Article 9 and Annex II, part C;
Amendment 64
Proposal for a directive
Article 7 – paragraph 1 a (new)
1a.  Member States may adapt the implementation of the risk-based approach, without compromising the objective of this Directive concerning the quality of water intended for human consumption and the health of consumers, when there are particular constraints due to geographical circumstances such as remoteness or accessibility of water supply zone.
Amendment 65
Proposal for a directive
Article 7 – paragraph 1 b (new)
1b.  Member States shall ensure a clear and appropriate distribution of responsibilities between stakeholders, as defined by the Member States, for the application of the risk-based approach with regard to the bodies of water used for the abstraction of water intended for human consumption and domestic distribution systems. Such distribution of responsibilities shall be tailored to their institutional and legal framework.
Amendment 66
Proposal for a directive
Article 7 – paragraph 2
2.  Hazard assessments shall be carried out by [3 years after the end-date for transposition of this Directive]. They shall be reviewed every 3 years, and updated where necessary.
2.  Hazard assessments shall be carried out by [3 years after the end-date for transposition of this Directive]. They shall be reviewed every 3 years, taking account of the requirement, provided for in Article 7 of Directive 2000/60/EC, for Member States to identify bodies of water, and updated where necessary.
Amendment 67
Proposal for a directive
Article 7 – paragraph 3
3.  Supply risk assessments shall be carried out by very large water suppliers and large water suppliers by [3 years after the end-date for transposition of this Directive], and by small water suppliers by [6 years after the end-date for transposition of this Directive]. They shall be reviewed at regular intervals of no longer than 6 years, and updated where necessary.
3.  Supply risk assessments shall be carried out by water suppliers by [6 years after the end-date for transposition of this Directive]. They shall be reviewed at regular intervals of no longer than 6 years, and updated where necessary.
Amendment 68
Proposal for a directive
Article 7 – paragraph 3 a (new)
3a.  Pursuant to Articles 8 and 9 of this Directive, Member States shall take the necessary corrective measures under the programmes of measures and river basin management plans provided for in Articles 11 and 13 of Directive 2000/60/EC respectively.
Amendment 69
Proposal for a directive
Article 7 – paragraph 4
4.   Domestic distribution risk assessments shall be carried out by [3 years after the end-date for transposition of this Directive]. They shall be reviewed every 3 years, and updated where necessary.
4.   Domestic distribution risk assessments in the premises referred to in Article 10(1) shall be carried out by [3 years after the end-date for transposition of this Directive]. They shall be reviewed every 3 years, and updated where necessary.
Amendment 70
Proposal for a directive
Article 8 – title
Hazard assessment of bodies of water used for the abstraction of water intended for human consumption
Hazard assessment, monitoring and management of bodies of water used for the abstraction of water intended for human consumption
Amendment 71
Proposal for a directive
Article 8 – paragraph 1 – introductory part
1.  Without prejudice to Articles 6 and 7 of Directive 2000/60/EC, Member States shall ensure that a hazard assessment is performed covering the bodies of water used for the abstraction of water intended for human consumption that provide more than 10 m3 a day as an average. The hazard assessment shall include the following elements:
1.  Without prejudice to Directive 2000/60/EC, in particular Articles 4 to 8, Member States shall, in cooperation with their competent water authorities, ensure that a hazard assessment is performed covering the bodies of water used for the abstraction of water intended for human consumption that provide more than 10 m3 a day as an average. The hazard assessment shall include the following elements:
Amendment 72
Proposal for a directive
Article 8 – paragraph 1 – point a
(a)  identification of and geo-references for all abstraction points in the bodies of water covered by the hazard assessment;
(a)  identification of and geo-references for all abstraction points in the bodies or parts of bodies of water covered by the hazard assessment. Given that the data referred to in this point are potentially sensitive, in particular in the context of public health protection, the Member States shall ensure that such data are protected and communicated only to the relevant authorities;
Amendment 73
Proposal for a directive
Article 8 – paragraph 1 – point b
(b)  mapping of the safeguard zones, where those zones have been established in accordance with Article 7(3) of Directive 2000/60/EC, and the protected areas referred to in Article 6 of that Directive;
(b)  mapping of the safeguard zones, where those zones have been established in accordance with Article 7(3) of Directive 2000/60/EC;
Amendment 216
Proposal for a directive
Article 8 – paragraph 1 – point c
(c)  identification of hazards and possible pollution sources affecting the bodies of water covered by the hazard assessment. To that end, Member States may use the review of the impact of human activity undertaken in accordance with Article 5 of Directive 2000/60/EC and information on significant pressures collected in accordance with point 1.4 of Annex II to that Directive;
(c)  identification of hazards and possible pollution sources affecting the bodies of water covered by the hazard assessment. Such research and identification of pollution sources shall be regularly updated to detect new substances that affect micro-plastics, notably PFAS. To that end, Member States may use the review of the impact of human activity undertaken in accordance with Article 5 of Directive 2000/60/EC and information on significant pressures collected in accordance with point 1.4 of Annex II to that Directive;
Amendment 75
Proposal for a directive
Article 8 – paragraph 1 – point d – introductory part
(d)  regular monitoring in the bodies of water covered by the hazard assessment of relevant pollutants selected from the following lists:
(d)  regular monitoring in the bodies or parts of bodies of water covered by the hazard assessment of pollutants that are relevant for the water supply and that are selected from the following lists:
Amendment 76
Proposal for a directive
Article 8 – paragraph 1 – point d – point iv
(iv)  other relevant pollutants, such as microplastics, or river basin specific pollutants established by Member States on the basis of the review of the impact of human activity undertaken in accordance with Article 5 of Directive 2000/60/EC and information on significant pressures collected in accordance with point 1.4 of Annex II to that Directive.
(iv)  parameters for monitoring purposes only in Part Ca of Annex I, or other relevant pollutants, such as microplastics, provided that a methodology to measure microplastics as specified in Article 11(5b) is in place, or river basin specific pollutants established by Member States on the basis of the review of the impact of human activity undertaken in accordance with Article 5 of Directive 2000/60/EC and information on significant pressures collected in accordance with point 1.4 of Annex II to that Directive.
Amendment 77
Proposal for a directive
Article 8 – paragraph 1 – subparagraph 1 a (new)
Very small water suppliers may be exempted from the requirements referred to in points (a), (b) and (c) of this paragraph, provided that the competent authority has prior and up to date documented knowledge of the relevant parameters referred to in those points. This exemption shall be reviewed by the competent authority at least every three years and updated where necessary.
Amendment 217
Proposal for a directive
Article 8 – paragraph 1 – subparagraph 3
For the purpose of the regular monitoring, Member States may use the monitoring carried out in accordance with other Union legislation.
For the purpose of the regular monitoring, as well as for the purpose of detecting new harmful substances through new investigations, Member States may use the monitoring carried out, and the investigation capacity provided for, in accordance with other Union legislation.
Amendment 78
Proposal for a directive
Article 8 – paragraph 3
3.  Member States shall inform water suppliers using the body of water covered by the hazard assessment of the results of the monitoring carried out under paragraph 1(d) and may, on the basis of those monitoring results:
deleted
(a)   require water suppliers to carry out additional monitoring or treatment of certain parameters;
(b)   allow water suppliers to decrease the monitoring frequency of certain parameters, without being required to carry out a supply risk assessment, provided that they are not core parameters within the meaning of Annex II, part B, point 1, and provided that no factor that can be reasonably anticipated is likely to cause deterioration of the quality of the water.
Amendment 79
Proposal for a directive
Article 8 – paragraph 4
4.  In such cases where a water supplier is allowed to decrease the monitoring frequency as referred to in paragraph 2(b), Member States shall continue to regularly monitor those parameters in the body of water covered by the hazard assessment.
deleted
Amendment 80
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1 – introductory part
On the basis of the information collected under paragraphs 1 and 2 and gathered under Directive 2000/60/EC, Member States shall take the following measures in cooperation with water suppliers and other stakeholders, or ensure that those measures are taken by the water suppliers:
On the basis of the information collected under paragraphs 1 and 2 and gathered under Directive 2000/60/EC, Member States shall take the following measures in cooperation with water suppliers and other stakeholders:
Amendment 178
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1 – point a
(a)  prevention measures to reduce the level of treatment required and to safeguard the water quality, including measures referred to in Article 11(3)(d) of Directive 2000/60/EC;
deleted
Amendment 82
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1 – point a a (new)
(aa)  ensure that polluters, in cooperation with water suppliers and other relevant stakeholders, take preventive measures to reduce or avoid the level of treatment required and to safeguard the water quality, including measures referred to in point (d) of Article 11(3) of Directive 2000/60/EC as well as additional measures deemed necessary on the basis of the monitoring carried out under point (d) of paragraph 1 of this Article;
Amendment 83
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1 – point b
(b)  mitigating measures, which are considered necessary on the basis of the monitoring carried out under paragraph 1(d), in order to identify and address the pollution source.
(b)  mitigating measures, which are considered necessary on the basis of the monitoring carried out under paragraph 1(d), in order to identify and address the pollution source and avoid any additional treatment, when prevention measures are considered not viable or not effective enough to address the pollution source in a timely manner;
Amendment 84
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1 – point b a (new)
(ba)  where measures set out in points (aa) and (b) have not been deemed sufficient to provide adequate protection for human health, require water suppliers to carry out additional monitoring of certain parameters at the point of abstraction or treatment, if strictly necessary to prevent health risks.
Amendment 85
Proposal for a directive
Article 8 – paragraph 5 a (new)
5a.  Member States shall inform water suppliers using the body or parts of bodies of water covered by the hazard assessment of the results of the monitoring carried out under point (d) of paragraph 1 and may, on the basis of those monitoring results, and of the information collected under paragraphs 1 and 2 and gathered under Directive 2000/60/EC:
(a)  allow water suppliers to decrease the monitoring frequency of certain parameters, or the number of parameters being monitored, without requiring them to carry out a supply risk assessment, provided that the parameters concerned are not core parameters within the meaning of point 1 of Part B of Annex II, and provided that no factor that can be reasonably anticipated is likely to cause deterioration of the quality of the water;
(b)  where a water supplier is allowed to decrease the monitoring frequency as referred to in point (a), continue to regularly monitor those parameters in the body of water covered by the hazard assessment.
Amendment 86
Proposal for a directive
Article 9 – title
Supply risk assessment
Supply risk assessment, monitoring and management
Amendment 87
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 1
Member States shall ensure that water suppliers perform a supply risk assessment providing for the possibility to adjust the monitoring frequency for any parameter listed in Annex I, parts A and B that are not core parameters according to part B of Annex II, depending on their occurrence in the raw water.
Member States shall ensure that water suppliers perform a supply risk assessment in accordance with Part C of Annex II, providing for the possibility to adjust the monitoring frequency for any parameter listed in Annex I, parts A, B and Ba that are not core parameters according to part B of Annex II, depending on their occurrence in the raw water.
Amendment 88
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2
For those parameters Member States shall ensure that water suppliers can deviate from the sampling frequencies set out in Annex II, part B, in accordance with the specifications set out in Annex II, part C.
For those parameters Member States shall ensure that water suppliers can deviate from the sampling frequencies set out in Annex II, part B, in accordance with the specifications set out in Part C of Annex II, and depending on their occurrence in the raw water and the treatment set-up.
Amendment 89
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 3
To that end, water suppliers shall be required to take into account the results of the hazard assessment carried out in accordance with Article 8 of this Directive and of the monitoring carried out pursuant to Article 7(1) and Article 8 of Directive 2000/60/EC.
To that end, water suppliers shall take into account the results of the hazard assessment carried out in accordance with Article 8 of this Directive and of the monitoring carried out pursuant to Article 7(1) and Article 8 of Directive 2000/60/EC.
Amendment 90
Proposal for a directive
Article 9 – paragraph 1 a (new)
1a.  Member States may exempt very small water suppliers from paragraph 1, provided that the competent authority has prior and up to date documented knowledge of the relevant parameters and deems there to be no risk to human health as a result of such exemptions, and without prejudice to the authority’s obligations under Article 4.
The exemption shall be reviewed by the competent authority every three years or when any new pollution hazard is detected in the catchment area, and updated where necessary.
Amendment 91
Proposal for a directive
Article 9 – paragraph 2
2.  Supply risk assessments shall be approved by the competent authorities.
2.  Supply risk assessments shall be the responsibility of the water suppliers who shall ensure that they comply with this Directive. To this end, water suppliers may request the support of competent authorities.
Member States may require competent authorities to approve or monitor water suppliers’ supply risk assessments.
Amendment 92
Proposal for a directive
Article 9 – paragraph 2 a (new)
2a.  On the basis of the results of the supply risk assessment carried out pursuant to paragraph 1, Member States shall ensure that water suppliers establish a water safety plan tailored to the risks identified and proportionate to the size of the water supplier. By way of example, that water safety plan may concern the use of materials in contact with water, water treatment products, possible risks stemming from leaking pipes, or measures to adapt to present and future challenges, such as climate change, and shall be further specified by the Member States.
Amendment 93
Proposal for a directive
Article 10 – title
Domestic Distribution Risk Assessment
Domestic distribution risk assessment, monitoring and management
Amendment 94
Proposal for a directive
Article 10 – paragraph 1 – introductory part
1.  Member States shall ensure that a domestic distribution risk assessment is performed, comprising the following elements:
1.  Member States shall ensure that a domestic distribution risk assessment is performed in priority premises, comprising the following elements:
Amendment 95
Proposal for a directive
Article 10 – paragraph 1 – point a
(a)  an assessment of the potential risks associated with the domestic distribution systems, and with the related products and materials, and whether they affect the quality of water at the point where it emerges from the taps normally used for human consumption, in particular where water is supplied to the public in priority premises;
(a)  an assessment of the potential risks associated with the domestic distribution systems, and with the related products and materials and whether they affect the quality of water at the point where it emerges from the taps normally used for human consumption;
Amendment 96
Proposal for a directive
Article 10 – paragraph 1 – point b – subparagraph 1
(b)  regular monitoring of the parameters listed in Annex I, part C, in premises where the potential danger to human health is considered highest. Relevant parameters and premises for monitoring shall be selected on the basis of the assessment performed under point (a).
(b)  regular monitoring of the parameters listed in Annex I, part C, in priority premises where specific risks to water quality have been identified during the assessment performed under point (a).
Amendment 97
Proposal for a directive
Article 10 – paragraph 1 – point b – subparagraph 2
With regard to the regular monitoring referred to in the first subparagraph, Member States may set up a monitoring strategy focusing on priority premises;
With regard to the regular monitoring, Member States shall ensure access to installations in priority premises for the purposes of sampling and may set up a monitoring strategy, in particular as regards Legionella pneumophila;
Amendment 98
Proposal for a directive
Article 10 – paragraph 1 – point c
(c)  a verification of whether the performance of construction products in contact with water intended for human consumption is adequate in relation to the essential characteristics linked to the basic requirement for construction works specified in point 3(e) of Annex I to Regulation (EU) No 305/2011.
(c)  a verification of whether the performance of products and materials in contact with water intended for human consumption is adequate in relation to the protection of human health.
Amendment 99
Proposal for a directive
Article 10 – paragraph 1 – point c a (new)
(ca)  a verification of whether the materials used are suitable for contact with water intended for human consumption and whether the requirements specified in Article 11 are met.
Amendment 100
Proposal for a directive
Article 10 – paragraph 2
2.  Where Member States consider, on the basis of the assessment carried out under paragraph 1(a), that there is a risk to human health stemming from the domestic distribution system or from the related products and materials, or where monitoring carried out in accordance with paragraph 1(b) demonstrates that the parametric values set out in Annex I, part C, are not met, Member States shall:
2.  Where Member States consider, on the basis of the assessment carried out under paragraph 1(a), that there is a risk to human health stemming from the domestic distribution system in priority premises or from the related products and materials, or where monitoring carried out in accordance with paragraph 1(b) demonstrates that the parametric values set out in Annex I, part C, are not met, Member States shall ensure that appropriate measures are taken to eliminate or reduce the risk of non-compliance with the parametric values set out in Part C of Annex I.
(a)  take appropriate measures to eliminate or reduce the risk of non-compliance with the parametric values set out in Annex I, part C;
(b)  take all necessary measures to ensure that the migration of substances or chemicals from construction products used in the preparation or distribution of water intended for human consumption does not, either directly or indirectly, endanger human health;
(c)  take other measures, such as appropriate conditioning techniques, in cooperation with water suppliers, to change the nature or properties of the water before it is supplied so as to eliminate or reduce the risk of non-compliance with the parametric values after supply;
(d)  duly inform and advise consumers about the conditions of consumption and use of the water and about possible action to avoid the risk from reoccurring;
(e)  organise training for plumbers and other professionals dealing with domestic distribution systems and the installation of construction products;
(f)  for Legionella, ensure that effective control and management measures in place to prevent and address possible disease outbreaks.
Amendment 101
Proposal for a directive
Article 10 – paragraph 2 a (new)
2a.  With a view to reducing the risks connected to domestic distribution across all the domestic distribution systems, Member States shall:
(a)  encourage owners of public and private premises to carry out a domestic distribution risk assessment;
(b)  inform consumers and owners of public and private premises about measures to eliminate or reduce the risk of non-compliance with the quality standards for water intended for human consumption due to the domestic distribution system;
(c)  duly inform and advise consumers about the conditions of consumption and use of the water and about possible action to avoid the risk from reoccurring;
(d)  promote training for plumbers and other professionals dealing with domestic distribution systems and the installation of construction products and materials in contact with water; and
(e)  for Legionella, in particular Legionella pneumophila, ensure that effective control and management measures which are proportionate to the risk are in place to prevent and address possible outbreaks of the disease.
Amendment 102
Proposal for a directive
Article 10 a (new)
Article 10a
Minimum hygiene requirements for products, substances and materials in contact with water intended for human consumption
1.   Member States shall take all necessary measures to ensure that substances and materials for the manufacture of all new products in contact with water intended for human consumption, placed on the market and used for abstraction, treatment or distribution, or the impurities associated with such substances:
(a)  do not directly or indirectly reduce the protection of human health provided for in this Directive;
(b)  do not affect the smell or taste of water intended for human consumption;
(c)  are not present in water intended for human consumption at a concentration above the level necessary to achieve the purpose for which they are used; and
(d)  do not promote microbial growth.
2.   For the purposes of ensuring the harmonised application of paragraph 1, by ... [three years after the date of entry into force of this Directive], the Commission shall adopt delegated acts in accordance with Article 19 in order to supplement this Directive by laying down the minimum hygiene requirements and the list of substances that are used for production of materials in contact with water intended for human consumption, and are approved in the Union, including specific migration limits and special conditions of use wherever applicable. The Commission shall regularly review and update this list in line with the latest scientific and technological developments.
3.  In order to support the Commission in adopting and amending the delegated acts pursuant to paragraph 2, a standing committee shall be set up consisting of representatives appointed by the Member States who may call on the assistance of experts or advisers.
4.  Materials in contact with water intended for human consumption, which are covered by other Union legislation, such as Regulation (EU) No 305/2011 of the European Parliament and of Council1a, shall comply with paragraphs 1 and 2 of this Article.
______________
1a Regulation (EU) No 305/2011 of the European Parliament and of the Council of 9 March 2011 laying down harmonised conditions for the marketing of construction products and repealing Council Directive 89/106/EEC (OJ L 88, 4.4.2011, p. 5).
Amendment 103
Proposal for a directive
Article 11 – paragraph 1
1.  Member States shall take all measures necessary to ensure that regular monitoring of the quality of water intended for human consumption is carried out, in order to check that the water available to consumers meets the requirements of this Directive and in particular the parametric values set in accordance with Article 5. Samples shall be taken so that they are representative of the quality of the water consumed throughout the year. In addition, Member States shall take all measures necessary to ensure that, where disinfection forms part of the preparation or distribution of water intended for human consumption, the efficiency of the disinfection treatment applied is verified, and that any contamination from disinfection by-products is kept as low as possible without compromising the disinfection.
1.  Member States shall take all measures necessary to ensure that regular monitoring of the quality of water intended for human consumption is carried out, in order to check that it meets the requirements of this Directive and in particular the parametric values set in accordance with Article 5. Samples shall be taken so that they are representative of the quality of the water consumed throughout the year. In addition, Member States shall take all measures necessary to ensure that, where disinfection forms part of the preparation or distribution of water intended for human consumption, the efficiency of the disinfection treatment applied is verified, and that any contamination from disinfection by-products is kept as low as possible without compromising the disinfection.
Amendment 104
Proposal for a directive
Article 11 – paragraph 5 a (new)
5a.  Member States shall communicate to the Commission the results of the monitoring carried out in accordance with the monitoring of parameters listed in Part Ca of Annex I by ... [three years from the date of entry into force of this Directive], and thereafter once a year.
The Commission is empowered to adopt delegated acts in accordance with Article 19 in order to amend this Directive by updating the substances included on the watch list set out in Part Ca of Annex I. The Commission may decide to add substances where there is a risk of such substances being present in water intended for human consumption and posing a potential risk to human health, but in respect of which scientific knowledge has not demonstrated a risk to human health. To that end, the Commission shall make use in particular of the scientific research of the WHO. The addition of any new substance shall be duly justified under Article 1 of this Directive.
Amendment 105
Proposal for a directive
Article 11 – paragraph 5 b (new)
5b.  By ... [one year after the date of entry into force of this Directive], the Commission shall adopt delegated acts in accordance with Article 19 in order to supplement this Directive by adopting a methodology to measure the microplastics listed in the watch list set out in Part Ca of Annex I.
Amendment 106
Proposal for a directive
Article 12 – paragraph 1
1.  Member States shall ensure that any failure to meet the parametric values set in accordance with Article 5 is immediately investigated in order to identify the cause.
1.  Member States shall ensure that any failure to meet the parametric values set in accordance with Article 5 at the point of compliance referred to in Article 6 is immediately investigated in order to identify the cause.
Amendment 107
Proposal for a directive
Article 12 – paragraph 2 – subparagraph 2
In case of non-compliance with the parametric values set out in Annex I, part C, remedial action shall include the measures set out in points (a) to (f) of Article 10(2).
In case of non-compliance with the parametric values set out in Annex I, part C, remedial action shall include the measures set out in Article 10(2a).
Amendment 108
Proposal for a directive
Article 12 – paragraph 3 – subparagraph 2
Member States shall automatically consider any failure to meet the minimum requirements for parametric values set out in Annex I, parts A and B, as a potential danger to human health.
Member States shall consider a failure to meet the minimum requirements for parametric values set out in Annex I, parts A and B, as a potential danger to human health, except where the competent authorities consider the non-compliance with the parametric value to be trivial.
Amendment 109
Proposal for a directive
Article 12 – paragraph 4 – introductory part
4.  In the cases described in paragraphs 2 and 3, Member States shall as soon as possible take all of the following measures:
4.  In the cases described in paragraphs 2 and 3, where the non-compliance with the parametric values is considered to be a potential danger to human health, Member States shall as soon as possible take all of the following measures:
Amendment 110
Proposal for a directive
Article 12 – paragraph 4 – subparagraph 1 a (new)
The measures referred to in points (a), (b) and (c) shall be taken in cooperation with the water supplier concerned.
Amendment 111
Proposal for a directive
Article 12 – paragraph 5
5.  The competent authorities or other relevant bodies shall decide what action under paragraph 3 shall be taken, bearing in mind the risks to human health which would be caused by an interruption of the supply or a restriction in the use of water intended for human consumption.
5.  Where non-compliance is established at the point of compliance, the competent authorities or other relevant bodies shall decide what action under paragraph 3 shall be taken, bearing in mind the risks to human health which would be caused by an interruption of the supply or a restriction in the use of water intended for human consumption.
Amendment 112
Proposal for a directive
Article 12 a (new)
Article 12a
Derogations
1.  Member States may provide for derogations from the parametric values set out in Part B of Annex I, or set in accordance with Article 5(2), up to a maximum value to be determined by them, provided that such derogations do not constitute a potential danger to human health and provided that the supply of water intended for human consumption in the area concerned cannot otherwise be maintained by any other reasonable means. Such derogations shall be limited to the following cases:
(a)  a new water supply zone;
(b)  a new source of pollution detected in a water supply zone or parameters newly searched or detected.
Derogations shall be limited to as short a time as possible and shall not exceed three years in duration, towards the end of which period Member States shall conduct a review to determine whether sufficient progress has been made.
In exceptional circumstances, a Member State may grant a second derogation in respect of points (a) and (b) of the first subparagraph. Where a Member State intends to grant such a second derogation, it shall communicate the review, along with the grounds for its decision on the second derogation, to the Commission. Such second derogation shall not exceed three years in duration.
2.  Any derogation granted in accordance with paragraph 1 shall specify the following:
(a)  the grounds for the derogation;
(b)  the parameter concerned, previous relevant monitoring results, and the maximum permissible value under the derogation;
(c)  the geographical area, the quantity of water supplied each day, the population concerned and whether or not any relevant food-production undertaking would be affected;
(d)  an appropriate monitoring scheme, with an increased monitoring frequency where necessary;
(e)  a summary of the plan for the necessary remedial action, including a timetable for the work and an estimate of the cost and provisions for reviewing; and
(f)  the required duration of the derogation.
3.  If the competent authorities consider the non-compliance with the parametric value to be trivial, and if action taken in accordance with Article 12(2) is sufficient to remedy the problem within 30 days, the information provided for in paragraph 2 of this Article need not be specified in the derogation.
In that event, only the maximum permissible value for the parameter concerned and the time allowed to remedy the problem shall be set by the competent authorities or other relevant bodies in the derogation.
4.  Recourse may no longer be had to paragraph 3, if failure to comply with any one parametric value for a given water supply has occurred on more than 30 days on aggregate during the previous 12 months.
5.  Any Member State which has had recourse to the derogations provided for in this Article shall ensure that the population affected by any such derogation is promptly informed in an appropriate manner of the derogation and of the conditions governing it. In addition, the Member State shall, where necessary, ensure that advice is given to particular population groups for which the derogation could present a special risk.
The obligations referred to in the first subparagraph shall not apply in the circumstances described in paragraph 3 unless the competent authorities decide otherwise.
6.  With the exception of derogations granted in accordance with paragraph 3, a Member State shall inform the Commission within two months of any derogation concerning an individual supply of water exceeding 1 000 m3 a day as an average or serving more than 5 000 people, including the information specified in paragraph 2.
7.  This Article shall not apply to water intended for human consumption offered for sale in bottles or containers.
Amendments 113, 165, 191, 208, 166, 192, 169, 195, 170, 196, 197, 220
Proposal for a directive
Article 13 – paragraph 1
1.  Without prejudice to Article 9 of Directive 2000/60/EC, Member States shall take all necessary measures to improve access for all to water intended for human consumption and promote its use on their territory. This shall include all of the following measures:
1.  Without prejudice to Article 9 of Directive 2000/60/EC and to the principles of subsidiarity and proportionality, Member States shall, whilst taking into account the local and regional perspectives and circumstances for water distribution, take all necessary measures to improve universal access for all to water intended for human consumption and promote its use on their territory.
(a)  identifying people without access to water intended for human consumption and reasons for lack of access (such as belonging to a vulnerable and marginalised group), assessing possibilities to improve access for those people and informing them about possibilities of connecting to the distribution network or about alternative means to have access to such water;
(a)  identifying people without access, or with limited access, to water intended for human consumption, including vulnerable and marginalised groups, and reasons for lack of access, assessing possibilities and taking actions to improve access for those people and informing them about possibilities of connecting to the distribution network or about alternative means to have access to such water;
(aa)   ensuring the public supply of water intended for human consumption;
(b)   setting up and maintaining outdoors and indoors equipment for free access to water intended for human consumption in public spaces;
(b)  setting up and maintaining outdoors and indoors equipment, including refill points, for free access to water intended for human consumption in public spaces, particularly in areas of high footfall; this shall be done where technically feasible, in a manner that is proportionate to the need for such measures and taking into account specific local conditions, such as climate and geography;
(c)  promoting water intended for human consumption by:
(c)  promoting water intended for human consumption by:
(i)  launching campaigns to inform citizens about the quality of such water;
(i)  launching campaigns to inform citizens about the high quality of tap water and to raise awareness of the nearest designated refill point;
(ia)  launching campaigns to encourage the general public to carry reusable water bottles and launching initiatives to raise awareness of the location of refill points;
(ii)  encouraging the provision of such water in administrations and public buildings;
(ii)  ensuring the free provision of such water in administrations and public buildings, as well as discouraging the use of water put in single use plastic bottles or containers in such administrations and buildings;
(iii)  encouraging the free provision of such water in restaurants, canteens, and catering services.
(iii)  encouraging the provision of such water for free or for a low service fee, for customers in restaurants, canteens, and catering services.
Amendment 114
Proposal for a directive
Article 13 – paragraph 2 – subparagraph 1
On the basis of the information gathered under paragraph 1(a), Member States shall take all necessary measures to ensure access to water intended for human consumption for vulnerable and marginalised groups.
On the basis of the information gathered under paragraph 1(a), Member States shall take measures that they consider necessary and appropriate to ensure access to water intended for human consumption for vulnerable and marginalised groups.
Amendments 173, 199 and 209
Proposal for a directive
Article 13 – paragraph 2 a (new)
2a.   Where obligations laid down in this Article are incumbent on local public authorities under national law, Member States shall ensure that such authorities have the means and resources to ensure access to water intended for human consumption and that any measures in that regard are proportionate to the capacities and size of the distribution network concerned.
Amendments 174, 200 and 210
Proposal for a directive
Article 13 – paragraph 2 b (new)
2b.   Taking into account the data collected under the provisions set out in point (a) of Article 15(1), the Commission shall collaborate with Member States and the European Investment Bank to support municipalities in the Union which lack the necessary capital in order to enable them to access technical assistance, available Union funding and long-term loans at a preferential interest rate, particularly for the purpose of maintaining and renewing water infrastructure in order to ensure the provision of high quality water, and to extend water and sanitation services to vulnerable and marginalised population groups.
Amendment 116
Proposal for a directive
Article 14 – paragraph 1
1.  Member States shall ensure that adequate and up-to-date information on water intended for human consumption is available online to all persons supplied, in accordance with Annex IV.
1.  Member States shall ensure that adequate, up-to-date and accessible information on water intended for human consumption is available, online or in other user-friendly ways, to all persons supplied, in accordance with Annex IV, while complying with applicable data protection rules.
Amendment 117
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1 – introductory part
Member States shall ensure that all persons supplied receive regularly and at least once a year, and in the most appropriate form (for instance on their invoice or by smart applications) without having to request it, the following information:
Member States shall ensure that all persons supplied receive regularly and at least once a year, and in the most appropriate and easily accessible form (for instance on their invoice or by smart applications) as determined by the competent authorities, the following information:
Amendment 118
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1 – point a – introductory part
(a)  information on the cost structure of the tariff charged per cubic metre of water intended for human consumption, including fixed and variable costs, presenting at least costs related to the following elements:
(a)  where costs are recovered through a tariff system, information on the tariff charged per cubic metre of water intended for human consumption, including the distribution of fixed and variable costs;
Amendment 119
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1 – point a – point i
(i)  measures taken by water suppliers for the purposes of the hazard assessment pursuant to Article 8(5);
deleted
Amendment 120
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1 – point a – point ii
(ii)  treatment and distribution of water intended for human consumption;
deleted
Amendment 121
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1 – point a – point iii
(iii)  waste water collection and treatment;
deleted
Amendment 122
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1 – point a – point iv
(iv)  measures taken pursuant to Article 13, in case such measures have been taken by water suppliers;
deleted
Amendment 123
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1 – point a a (new)
(aa)  information on the quality of water intended for human consumption, including the indicator parameters;
Amendment 124
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1 – point b
(b)  the price of water intended for human consumption supplied per litre and cubic metre;
(b)  where the costs are recovered through a tariff system, the price of the supply of water intended for human consumption per cubic metre, and the price invoiced per litre; where the costs are not recovered through a tariff system, the total annual costs borne by the water system to ensure compliance with this Directive, accompanied by contextual and relevant information on how water intended for human consumption is supplied to the area;
Amendment 125
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1 – point b a (new)
(ba)   the treatment and distribution of water intended for human consumption;
Amendment 126
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1 – point c
(c)  the volume consumed by the household, at least per year or per billing period, together with yearly trends of consumption;
(c)  the volume consumed by the household, at least per year or per billing period, together with yearly trends of household consumption, if technically feasible and only if this information is available to the water supplier;
Amendment 127
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1 – point d
(d)  comparisons of the yearly water consumption of the household with an average consumption for a household in the same category;
(d)  comparisons of the yearly water consumption of the household with an average consumption for a household, when applicable in accordance with point (c);
Amendment 128
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 2
The Commission may adopt implementing acts specifying the format of, and modalities to present, the information to be provided under the first subparagraph. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 20(2).
Member States shall set out a clear division of responsibilities with regard to the provision of information under the first subparagraph between water suppliers, stakeholders and competent local bodies. The Commission is empowered to adopt delegated acts in accordance with Article 19 supplementing this Directive by specifying the format of, and modalities to present, the information to be provided under the first subparagraph.
Amendment 129
Proposal for a directive
Article 15 – paragraph 1 – subparagraph 1 – point d
(d)  set up, and update annually thereafter, a data set containing information on drinking water incidents that have caused potential danger to human health, regardless of whether any failure to meet the parametric values occurred, that lasted for more than 10 consecutive days and that affected at least 1 000 people, including the causes of those incidents and remedial actions taken in accordance with Article 12.
(d)  set up, and update annually thereafter, a data set containing information on drinking water incidents that have caused potential risk to human health, regardless of whether any failure to meet the parametric values occurred, that lasted for more than 10 consecutive days and that affected at least 1 000 people, including the causes of those incidents and remedial actions taken in accordance with Article 12.
Amendment 130
Proposal for a directive
Article 15 – paragraph 4 – subparagraph 1
4.  The Commission may adopt implementing acts specifying the format of, and modalities to present, the information to be provided in accordance with paragraphs 1 and 3, including detailed requirements regarding the indicators, the Union-wide overview maps and the Member State overview reports referred to in paragraph 3.
4.  The Commission is empowered to adopt delegated acts in accordance with Article 19 supplementing this Directive by specifying the format of, and modalities to present, the information to be provided in accordance with paragraphs 1 and 3, including detailed requirements regarding the indicators, the Union-wide overview maps and the Member State overview reports referred to in paragraph 3.
Amendment 131
Proposal for a directive
Article 15 – paragraph 4 – subparagraph 2
The implementing acts referred to in the first subparagraph shall be adopted in accordance with the examination procedure referred to in Article 20(2).
deleted
Amendment 132
Proposal for a directive
Article 17 – paragraph 2 – point b
(b)  provisions related to access to water set out in Article 13;
(b)  provisions related to access to water set out in Article 13 and the share of the population without access to water;
Amendment 133
Proposal for a directive
Article 17 – paragraph 2 – point c
(c)  provisions concerning the information to be provided to the public under Article 14 and Annex IV.
(c)  provisions concerning the information to be provided to the public under Article 14 and Annex IV, including a user friendly overview at Union level of the information listed in point 7 of Annex IV.
Amendment 134
Proposal for a directive
Article 17 – paragraph 2 a (new)
2a.   The Commission shall, no later than ... [five years after the final deadline for transposition of this Directive] — and afterwards where appropriate — submit a report to the European Parliament and to the Council on the potential threat to sources of water intended for human consumption from microplastics, medicines and, if necessary, other newly occurring pollutants and on the appropriate associated potential health risks. The Commission is empowered to adopt, if necessary, delegated acts in accordance with Article 19 in order to supplement this Directive by establishing maximum levels for microplastics, medicinal products and other newly occurring pollutants in water intended for human consumption.
Amendment 135
Proposal for a directive
Article 18 – paragraph 2 a (new)
2a.   By ... [five years after the date of entry into force of this Directive], the Commission shall review whether Article 10a has led to a sufficient level of harmonisation of hygienic requirements on materials and products in contact with water intended for human consumption and, if necessary, take further appropriate measures.
Amendment 136
Proposal for a directive
Article 23 – paragraph 2
2.  Derogations granted by Member States in accordance with Article 9 of Directive 98/83/EC that are still applicable by [end-date for transposition of this Directive] shall remain applicable until the end of their duration. They may not be renewed further.
2.  Derogations granted by Member States in accordance with Article 9 of Directive 98/83/EC that are still applicable by [end-date for transposition of this Directive] shall remain applicable until the end of their duration.
Amendment 179
Proposal for a directive
Annex I – part A – table

Text proposed by the Commission

Parameter

Parametric value

Unit

Clostridium perfringens spores

0

Number/100 ml

Coliform bacteria

0

Number/100 ml

Enterococci

0

Number/100 ml

Escherichia coli (E. coli)

0

Number/100 ml

Heterotrophic plate counts (HPC) 22°C

No abnormal change

 

Somatic coliphages

0

Number/100 ml

Turbidity

< 1

NTU

Amendment

Parameter

Parametric value

Parameter

Clostridium perfringens spores

0

Number/100 ml

Enterococci

0

Number/100 ml

Escherichia coli (E. coli)

0

Number/100 ml

Somatic coliphages

0

Number/100 ml

Note

The parameters set out in this Part shall not apply to spring and mineral waters in accordance with Directive 2009/54/EC.

Amendments 138 and 180
Proposal for a directive
Annex I – part B – table

Text proposed by the Commission

Chemical parameters

Parameter

Parametric value

Unit

Notes

Acrylamide

0,10

μg/l

The parametric value refers to the residual monomer concentration in the water as calculated according to specifications of the maximum release from the corresponding polymer in contact with the water.

Antimony

5,0

μg/l

 

Arsenic

10

μg/l

 

Benzene

1,0

μg/l

 

Benzo(a)pyrene

0,010

μg/l

 

Beta-estradiol (50-28-2)

0,001

μg/l

 

Bisphenol A

0,01

μg/l

 

Boron

1,0

mg/l

 

Bromate

10

μg/l

 

Cadmium

5,0

μg/l

 

Chlorate

0,25

mg/l

 

Chlorite

0,25

mg/l

 

Chromium

25

μg/l

The value shall be met, at the latest, by [10 years after the entry into force of this Directive]. The parametric value for chromium until that date is 50 μg/l.

Copper

2,0

mg/l

 

Cyanide

50

μg/l

 

1,2-dichloroethane

3,0

μg/l

 

Epichlorohydrin

0,10

μg/l

The parametric value refers to the residual monomer concentration in the water as calculated according to specifications of the maximum release from the corresponding polymer in contact with the water.

Fluoride

1,5

mg/l

 

Haloacetic acids (HAAs)

80

μg/l

Sum of the following nine representative substances: monochloro-, dichloro-, and trichloro-acetic acid, mono- and dibromo-acetic acid, bromochloroacetic acid, bromodichloroacetic acid, dibromochloroaetic acid and tribromoacetic acid.

Lead

5

μg/l

The value shall be met, at the latest, by [10 years after the entry into force of this Directive]. The parametric value for lead until that date is 10 μg/l.

Mercury

1,0

μg/l

 

Microcystin-LR

10

μg/l

 

Nickel

20

μg/l

 

Nitrate

50

mg/l

Member States shall ensure that the condition [nitrate]/50 + [nitrite]/3 ≤ 1, where the square brackets signify the concentrations in mg/l for nitrate (NO3) and nitrite (NO2), is complied with and that the value of 0,10 mg/l for nitrites is complied with ex water treatment works.

Nitrite

0.50

mg/l

Member States shall ensure that the condition [nitrate]/50 + [nitrite]/3 ≤ 1, where the square brackets signify the concentrations in mg/l for nitrate (NO3) and nitrite (NO2), is complied with and that the value of 0,10 mg/l for nitrites is complied with ex water treatment works.

Nonylphenol

0,3

μg/l

 

Pesticides

0,10

μg/l

‘Pesticides’ means:

 

 

 

organic insecticides,

 

 

 

organic herbicides,

 

 

 

organic fungicides,

 

 

 

organic nematocides,

 

 

 

organic acaricides,

 

 

 

organic algicides,

 

 

 

organic rodenticides

 

 

 

organic slimicides,

 

 

 

related products (inter alia, growth regulators) and their relevant metabolites as defined in Article 3(32) of Regulation (EC) No 1107/20091.

 

 

 

The parametric value applies to each individual pesticide.

 

 

 

In the case of aldrin, dieldrin, heptachlor and heptachlor epoxide, the parametric value is 0,030 μg/l.

Pesticides — Total

0,50

μg/l

‘Pesticides — Total’ means the sum of all individual pesticides, as defined in the previous row, detected and quantified in the monitoring procedure.

PFAS

0,10

μg/l

'PFAS' means each individual per- and polyfluoroalkyl substance (chemical formula: CnF2n+1−R).

PFASs - Total

0,50

μg/l

'PFASs Total' means the sum of per- and polyfluoroalkyl substances (chemical formula: CnF2n+1−R).

Polycyclic aromatic hydrocarbons

0,10

μg/l

Sum of concentrations of the following specified compounds: benzo(b)fluoranthene, benzo(k)fluoranthene, benzo(ghi)perylene, and indeno(1,2,3-cd)pyrene.

Selenium

10

μg/l

 

Tetrachloroethene and trichloroethene

10

μg/l

Sum of concentrations of specified parameters

Trihalomethanes — Total

100

μg/l

Where possible, without compromising disinfection, Member States shall strive for a lower value.

 

 

 

Sum of concentrations of the following specified compounds: chloroform, bromoform, dibromochloromethane, bromodichloromethane.

Uranium

30

μg/l

 

Vinyl chloride

0,50

μg/l

The parametric value refers to the residual monomer concentration in the water as calculated according to specifications of the maximum release from the corresponding polymer in contact with the water.

__________________

1.   Regulation (EC) No 1107/2009 of the European Parliament and of the Council of 21 October 2009 concerning the placing of plant protection products on the market and repealing Council Directives 79/117/EEC and 91/414/EEC (OJ L 309 24.11.2009, p. 1).

Amendment

Chemical parameters

Parameter

Parametric value

Unit

Notes

Acrylamide

0,10

μg/l

The parametric value refers to the residual monomer concentration in the water as calculated according to specifications of the maximum release from the corresponding polymer in contact with the water.

Antimony

5,0

μg/l

 

Arsenic

10

μg/l

 

Benzene

1,0

μg/l

 

Benzo(a)pyrene

0,010

μg/l

 

Beta-estradiol (50-28-2)

0,001

μg/l

 

Bisphenol A

0,1

μg/l

 

Boron

1,5

mg/l

 

Bromate

10

μg/l

 

Cadmium

5,0

μg/l

 

Chlorate

0,25

mg/l

 

Chlorite

0,25

mg/l

 

Chromium

25

μg/l

The value shall be met, at the latest, by [10 years after the entry into force of this Directive]. The parametric value for chromium until that date is 50 μg/l.

Copper

2,0

mg/l

 

Cyanide

50

μg/l

 

1,2-dichloroethane

3,0

μg/l

 

Epichlorohydrin

0,10

μg/l

The parametric value refers to the residual monomer concentration in the water as calculated according to specifications of the maximum release from the corresponding polymer in contact with the water.

Fluoride

1,5

mg/l

 

Haloacetic acids (HAAs)

80

μg/l

Sum of the following nine representative substances: monochloro-, dichloro-, and trichloro-acetic acid, mono- and dibromo-acetic acid, bromochloroacetic acid, bromodichloroacetic acid, dibromochloroaetic acid and tribromoacetic acid.

Lead

5

μg/l

The value shall be met, at the latest, by [10 years after the entry into force of this Directive]. The parametric value for lead until that date is 10 μg/l.

Mercury

1,0

μg/l

 

Microcystin-LR

10

μg/l

 

Nickel

20

μg/l

 

Nitrate

50

mg/l

Member States shall ensure that the condition [nitrate]/50 + [nitrite]/3 ≤ 1, where the square brackets signify the concentrations in mg/l for nitrate (NO3) and nitrite (NO2), is complied with and that the value of 0,10 mg/l for nitrites is complied with ex water treatment works.

Nitrite

0.50

mg/l

Member States shall ensure that the condition [nitrate]/50 + [nitrite]/3 ≤ 1, where the square brackets signify the concentrations in mg/l for nitrate (NO3) and nitrite (NO2), is complied with and that the value of 0,10 mg/l for nitrites is complied with ex water treatment works.

Nonylphenol

0,3

μg/l

 

Pesticides

0,10

μg/l

‘Pesticides’ means:

 

 

 

organic insecticides,

 

 

 

organic herbicides,

 

 

 

organic fungicides,

 

 

 

organic nematocides,

 

 

 

organic acaricides,

 

 

 

organic algicides,

 

 

 

organic rodenticides

 

 

 

organic slimicides,

 

 

 

related products (inter alia, growth regulators) and their relevant metabolites as defined in Article 3(32) of Regulation (EC) No 1107/20091.

 

 

 

The parametric value applies to each individual pesticide.

 

 

 

In the case of aldrin, dieldrin, heptachlor and heptachlor epoxide, the parametric value is 0,030 μg/l.

Pesticides — Total

0,50

μg/l

‘Pesticides — Total’ means the sum of all individual pesticides, as defined in the previous row, detected and quantified in the monitoring procedure.

PFAS

0,10

μg/l

'PFAS' means each individual per- and polyfluoroalkyl substance (chemical formula: CnF2n+1−R).

 

 

 

The formula shall also introduce a differentiation between “long-chain” and “short-chain” PFASs. This Directive shall apply only to “long-chain” PFASs.

 

 

 

This parametric value for individual PFAS substances shall only apply to those PFAS substances, which are likely to be present and which are hazardous to human health, according to the hazard assessment referred to in Article 8 of this Directive.

PFASs - Total

0,50

μg/l

'PFASs Total' means the sum of per- and polyfluoroalkyl substances (chemical formula: CnF2n+1−R).

 

 

 

This parametric value for PFASs Total shall only apply to those PFAS substances, which are likely to be present and which are hazardous to human health, according to the hazard assessment referred to in Article 8 of this Directive.

Polycyclic aromatic hydrocarbons

0,10

μg/l

Sum of concentrations of the following specified compounds: benzo(b)fluoranthene, benzo(k)fluoranthene, benzo(ghi)perylene, and indeno(1,2,3-cd)pyrene.

Selenium

10

μg/l

 

Tetrachloroethene and trichloroethene

10

μg/l

Sum of concentrations of specified parameters

Trihalomethanes — Total

100

μg/l

Where possible, without compromising disinfection, Member States shall strive for a lower value.

 

 

 

Sum of concentrations of the following specified compounds: chloroform, bromoform, dibromochloromethane, bromodichloromethane.

Uranium

30

μg/l

 

Vinyl chloride

0,50

μg/l

The parametric value refers to the residual monomer concentration in the water as calculated according to specifications of the maximum release from the corresponding polymer in contact with the water.

__________________

1.   Regulation (EC) No 1107/2009 of the European Parliament and of the Council of 21 October 2009 concerning the placing of plant protection products on the market and repealing Council Directives 79/117/EEC and 91/414/EEC (OJ L 309 24.11.2009, p. 1).

Amendment 139
Proposal for a directive
Annex I – Part B a (new)

Text proposed by the Commission

Amendment

Indicator parameters

Parameter

Parametric value

Unit

Notes

Aluminium

200

μg/l

 

Ammonium

0,50

mg/l

 

Chloride

250

mg/l

Note 1

Colour

Acceptable to consumers and no abnormal change

 

 

Conductivity

2 500

μS cm-1 at 20°C

Note 1

Hydrogen ion concentration

≥ 6,5 and ≤ 9,5

pH units

Notes 1 and 3

Iron

200

μg/l

 

Manganese

50

μg/l

 

Odour

Acceptable to consumers and no abnormal change

 

 

Sulphates

250

mg/l

Note 1

Sodium

200

mg/l

 

Taste

Acceptable to consumers and no abnormal change

 

 

Colony count at 22°C

No abnormal change

 

 

Coliform bacteria

0

Number/100 ml

 

Total organic carbon (TOC)

No abnormal change

 

 

Turbidity

Acceptable to consumers and no abnormal change

 

 

Note 1:

The water should not be aggressive.

Note 2:

This parameter need not be measured unless the water originates from or is influenced by surface water. In the event of non-compliance with this parametric value, the Member State concerned shall investigate the supply to ensure that there is no potential danger to human health arising from the presence of pathogenic micro-organisms, e.g. cryptosporidium.

Note 3:

For still water put into bottles or containers, the minimum value may be reduced to 4,5 pH units.

For water put into bottles or containers which is naturally rich in or artificially enriched with carbon dioxide, the minimum value may be lower.

Amendment 140
Proposal for a directive
Annex I – Part C

Text proposed by the Commission

Parameters relevant for the domestic distribution risk assessment

Parameter

Parametric value

Unit

Notes

Legionella

< 1 000

Number/l

If the parametric value <1 000/l is not met for Legionella, resampling for Legionella pneumophila shall be done. If Legionella pneumophila is not present, the parametric value for Legionella is <10 000/l.

Lead

5

μg/l

The value shall be met, at the latest, by ... [ten years after the date of entry into force of this Directive]. The parametric value for lead until that date is 10 μg/l.

Amendment

Parameters relevant for the domestic distribution risk assessment

Parameter

Parametric value

Unit

Notes

Legionella pneumophila

< 1 000

Number/l

 

Legionella

< 10 000

Number/l

If Legionella pneumophila, whose parametric value is < 1 000/l, is not present, the parametric value for Legionella shall be <10 000/l.

Lead

5

μg/l

The value shall be met, at the latest, by ... [ten years after the date of entry into force of this Directive]. The parametric value for lead until that date shall be 10 μg/l.

Amendment 141
Proposal for a directive
Annex I – Part C a (new)

Text proposed by the Commission

Amendment

Emerging parameters under monitoring

Microplastics

The monitoring shall be carried out in accordance with the methodology for measuring microplastics laid down in the delegated act referred to in Article 11(5b)

Amendment 142
Proposal for a directive
Annex II – part B – point 1 – paragraph 1
Escherichia coli (E. coli), Clostridium perfringens spores, and somatic coliphages are considered 'core parameters' and may not be subject to a supply risk assessment in accordance with part C of this Annex. They shall always be monitored at the frequencies set out in Table 1 of point 2.
Escherichia coli (E. coli) and enterococci are considered 'core parameters' and may not be subject to a supply risk assessment in accordance with part C of this Annex. They shall always be monitored at the frequencies set out in Table 1 of point 2.
Amendment 186
Proposal for a directive
Annex II – Part B – point 2

Text proposed by the Commission

Sampling frequencies

All parameters set in accordance with Article 5 shall be monitored at least at the frequencies set out in the following Table, unless a different sampling frequency is determined on the basis of a supply risk assessment carried out in accordance with Article 9 and part C of this Annex:

Table 1

Minimum frequency of sampling and analysis for compliance monitoring

Volume (m3) of water distributed or produced each day within a supply zone

Minimum number of samples per

year

≤ 100

> 100 ≤ 1 000

> 1 000 ≤ 10 000

>10 000 ≤ 100 000

>100 000

10a

10a

50b

365

365

a: all samples are to be taken during times when the risk of treatment breakthrough of enteric pathogens is high.

b: at least 10 samples are to be taken during times when the risk of treatment breakthrough of enteric pathogens is high.

Note 1: A supply zone is a geographically defined area within which water intended for human consumption comes from one or more sources and water quality may be considered as being approximately uniform

Note 2: The volumes are calculated as averages taken over a calendar year. The number of inhabitants in a supply zone may be used instead of the volume of water to determine the minimum frequency, assuming water consumption of 200 l/(day*capita).

Note 3: Member States that have decided to exempt individual supplies under Article 3(2)(b) of this Directive shall apply these frequencies only for supply zones that distribute between 10 and 100 m 3 per day

Amendment

Sampling frequencies

All parameters set in accordance with Article 5 shall be monitored at least at the frequencies set out in the following Table, unless a different sampling frequency is determined on the basis of a supply risk assessment carried out in accordance with Article 9 and part C of this Annex:

Table 1

Minimum frequency of sampling and analysis for compliance monitoring

Volume of water distributed or produced each day within a supply zone

(See Notes 1 and 2) m3

Group A parameter (microbiological parameter) -

number of samples per year

(See Note 3)

Group B parameter (chemical parameter) -

number of samples per year

 

≤ 100

> 0

(See Note 4)

> 0

(See Note 4)

> 100

≤ 1000

4

1

> 1000

≤ 10000

4

+3

For each 1000m3/d and part thereof of the total volume

1

+1

For each 1000m3/d and part thereof of the total volume

> 10000

 

≤ 100000

3

+ 1

for each 10000 m3/day and

part thereof of the total volume

> 100000

 

12

+ 1

for each 25000 m3/day and part thereof of the total volume

Note 1: A supply zone is a geographically defined area within which water intended for human consumption comes from one or more sources and water quality may be considered as being approximately uniform.

Note 2: The volumes are calculated as averages taken over a calendar year. The number of inhabitants in a supply zone may be used instead of the volume of water to determine the minimum frequency, assuming water consumption of 200 l/(day*capita).

Note 3: The frequency indicated is calculated as follows: e.g. 4 300 m 3 /day = 16 samples (four for the first 1 000 m 3 /day + 12 for additional 3 300 m 3 /day).

Note 4: Member States that have decided to exempt individual supplies under Article 3(2)(b) of this Directive shall apply these frequencies only for supply zones that distribute between 10 and 100 m 3 per day.

Amendment 144
Proposal for a directive
Annex II – part D – point 2 a (new)
2a.  samples for Legionella in domestic distribution systems shall be taken at risk points for proliferation of and/or exposure to Legionella pneumophila. Member States shall establish guidelines for sampling methods for Legionella;
Amendment 145
Proposal for a directive
Annex II a (new)
Minimum hygiene requirements for substances and materials for the manufacture of new products coming into contact with water intended for human consumption:
(a)  a list of substances approved for use in the manufacture of materials, including, but not limited to, organic materials, elastomers, silicones, metals, cement, ion exchange resins and composite materials, and products made therefrom.
(b)  specific requirements for the use of substances in materials and products made therefrom.
(c)  specific restrictions on the migration of certain substances into water intended for human consumption.
(d)  hygiene rules regarding other properties required for compliance.
(e)  basic rules to verify compliance with points (a) to (d).
(f)  rules concerning sampling and analysis methods to verify compliance with points (a) to (d).
Amendments 177 and 224
Proposal for a directive
Annex III – part B – point 1 – table 1 – row 28

Text proposed by the Commission

PFASs

50

 

Amendment

PFASs

20

 

Amendment 146
Proposal for a directive
Annex IV – title
INFORMATION TO THE PUBLIC TO BE PROVIDED ONLINE
INFORMATION TO THE PUBLIC
Amendment 147
Proposal for a directive
Annex IV – paragraph 1 – introductory part
The following information shall be accessible to consumers on-line in a user-friendly and customized way:
The following information shall be accessible to consumers on-line or in equally user-friendly and customized ways:
Amendment 148
Proposal for a directive
Annex IV – paragraph 1 – point 1
(1)  identification of the relevant water supplier;
(1)  identification of the relevant water supplier, the area and number of people supplied, and the method of water production;
Amendment 149
Proposal for a directive
Annex IV – paragraph 1 – point 2 – introductory part
(2)  the most recent monitoring results for parameters listed in Annex I, parts A and B, including frequency and location of sampling points, relevant to the area of interest to the person supplied, together with the parametric value set in accordance with Article 5. The monitoring results must not be older than:
(2)  a review of the most recent monitoring results per water supplier, for parameters listed in Annex I, parts A, B and Ba, including frequency relevant to the area of interest to the person supplied, together with and the parametric value set in accordance with Article 5.The monitoring results must not be older than:
Amendment 202
Proposal for a directive
Annex IV – paragraph 1 – point 2 – point b
(b)  six months for large water suppliers;
(b)  six months for medium and large water suppliers;
Amendment 203
Proposal for a directive
Annex IV – paragraph 1 – point 2 – point c
(c)  one year for small water suppliers;
(c)  one year for very small and small water suppliers;
Amendment 150
Proposal for a directive
Annex IV – paragraph 1 – point 3
(3)  in case of exceedance of the parametric values set in accordance with Article 5, information on the potential danger to human health and the associated health and consumption advice or a hyperlink providing access to such information;
(3)  in case of potential danger to human health as determined by competent authorities following an exceedance of the parametric values set in accordance with Article 5, information on the potential danger to human health and the associated health and consumption advice or a hyperlink providing access to such information;
Amendment 151
Proposal for a directive
Annex IV – paragraph 1 – point 4
(4)  a summary of the relevant supply risk assessment;
deleted
Amendment 152
Proposal for a directive
Annex IV – paragraph 1 – point 5
(5)  information on the following indicator parameters and associated parametric values:
(5)  information on the indicator parameters listed in part Ba of Annex 1 and associated parametric values;
(a)  Colour;
(b)  pH (Hydrogen ion concentration);
(c)  Conductivity;
(d)  Iron;
(e)  Manganese;
(f)  Odour;
(g)  Taste;
(h)  Hardness;
(i)  Minerals, anions/cations dissolved in water:
—  Borate BO3-
—  Carbonate CO32-
—  Chloride Cl-
—  Fluoride F-
—  Hydrogen Carbonate HCO3-
—  Nitrate NO3-
—  Nitrite NO2-
—  Phosphate PO43-
—  Silicate SiO2
—  Sulphate SO42-
—  Sulphide S2-
—  Aluminium Al
—  Ammonium NH4+
—  Calcium Ca
—  Magnesium Mg
—  Potassium K
—  Sodium Na
Those parametric values and other non-ionised compounds and trace elements may be displayed with a reference value and/or an explanation;
Amendment 153
Proposal for a directive
Annex IV – paragraph 1 – point 6
(6)  advice to consumers including on how to reduce water consumption;
(6)  advice to consumers including on how to reduce water consumption where appropriate and use water responsibly according to local conditions;
Amendment 154
Proposal for a directive
Annex IV – paragraph 1 – point 7
(7)  for very large water suppliers, annual information on:
(7)  for large and very large water suppliers, annual information on:
Amendment 155
Proposal for a directive
Annex IV – paragraph 1 – point 7 – point a
(a)  the overall performance of the water system in terms of efficiency, including leakage rates and energy consumption per cubic meter of delivered water;
(a)  the overall performance of the water system in terms of efficiency, including leakage levels as determined by the Member States;
Amendment 156
Proposal for a directive
Annex IV – paragraph 1 – point 7 – point b
(b)  information on management and governance of the water supplier, including the composition of the board;
(b)  information on management model and the ownership structure of the water supply by the water supplier
Amendment 157
Proposal for a directive
Annex IV – paragraph 1 – point 7 – point d
(d)  information on the cost structure of the tariff charged to consumers per cubic meter of water, including fixed and variable costs, presenting at least costs related to energy use per cubic meter of delivered water, measures taken by water suppliers for the purposes of the hazard assessment pursuant to Article 8(4), treatment and distribution of water intended for human consumption, waste water collection and treatment, and costs related to measures for the purposes of Article 13, where such measures have been taken by water suppliers;
(d)  where costs are recovered through a tariff system, information on the structure of the tariff per cubic meter of water, including fixed and variable costs as well as costs related to measures taken by water suppliers for the purposes of the hazard assessment pursuant to Article 8(4), treatment and distribution of water intended for human consumption, and costs related to measures for the purposes of Article 13, where such measures have been taken by water suppliers;
Amendment 158
Proposal for a directive
Annex IV – paragraph 1 – point 7 – point e
(e)  the amount of investment considered necessary by the supplier to ensure the financial sustainability of the provision of water services (including maintenance of infrastructure) and the amount of investment actually received or recouped;
(e)  the amount of investment undertaken, under way and planned, as well as the financing plan;
Amendment 159
Proposal for a directive
Annex IV – paragraph 1 – point 7 – point g
(g)  summary and statistics of consumer complaints, and of timeliness and adequacy of responses to problems;
(g)  summary and statistics of consumer complaints, and how they are resolved;
Amendment 160
Proposal for a directive
Annex IV – paragraph 1 – point 8
(8)  access to historical data for information under points (2) and (3), dating back up to 10 years, upon request.
(8)  access to historical data for information under points (2) and (3), dating back up to 10 years, and not earlier than the date of transposition of this Directive upon request.

(1) OJ C 367, 10.10.2018, p. 107.
(2) OJ C 361, 5.10.2018, p. 46.
(3) OJ C 77, 28.3.2002, p. 1.
(4) This position corresponds to the amendments adopted on 23 October 2018 (Texts adopted, P8_TA (2018)0397).


Increasing the efficiency of restructuring, insolvency and discharge procedures ***I
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Resolution
Consolidated text
European Parliament legislative resolution of 28 March 2019 on the proposal for a directive of the European Parliament and of the Council on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures and amending Directive 2012/30/EU (COM(2016)0723 – C8-0475/2016 – 2016/0359(COD))
P8_TA-PROV(2019)0321A8-0269/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0723),

–  having regard to Article 294(2) and Articles 53 and 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0475/2016),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the reasoned opinions submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Dáil Éireann and the Seanad Éireann, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to the opinion of the European Economic and Social Committee of 29 March 2017(1),

–  having regard to the opinion of the Committee of the Regions of 12 July 2017 (2)

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 19 December 2018 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rule 59 of its Rules of Procedure,

–  having regard to the report of the Committee on Legal Affairs and the opinions of the Committee on Economic and Monetary Affairs and the Committee on Employment and Social Affairs (A8-0269/2018),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Position of the European Parliament adopted at first reading on 28 March 2019 with a view to the adoption of Directive (EU) 2019/… of the European Parliament and of the Council on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 ▌(Directive on restructuring and insolvency)

P8_TC1-COD(2016)0359


(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 Articles 53 and 114 thereof,

Having regard to the proposal from the European Commission,

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

Having regard to the opinion of the European Economic and Social Committee(3),

Having regard to the opinion of the Committee of the Regions(4),

Acting in accordance with the ordinary legislative procedure(5),

Whereas:

(1)  The objective of this Directive is to contribute to the proper functioning of the internal market and remove obstacles to the exercise of fundamental freedoms, such as the free movement of capital and freedom of establishment, which result from differences between national laws and procedures concerning preventive restructuring, insolvency, discharge of debt, and disqualifications. Without affecting workers’ fundamental rights and freedoms, this Directive aims to remove such obstacles by ensuring that: viable enterprises and entrepreneurs that are in financial difficulties have access to effective national preventive restructuring frameworks which enable them to continue operating; honest insolvent or over-indebted entrepreneurs can benefit from a full discharge of debt after a reasonable period of time, thereby allowing them a second chance; and that the effectiveness of procedures concerning restructuring, insolvency and discharge of debt is improved, in particular with a view to shortening their length.

(2)  Restructuring should enable debtors in financial difficulties to continue business, in whole or in part, by changing the composition, conditions or structure of their assets and their liabilities or any other part of their capital structure - including by sales of assets or parts of the business or, where so provided under national law, the business as a whole - as well as by carrying out operational changes. Unless otherwise specifically provided for by national law, operational changes, such as the termination or amendment of contracts or the sale or other disposal of assets, should comply with the general requirements that are provided for under national law for such measures, in particular civil law and labour law rules. Any debt-to-equity swaps should also comply with safeguards provided for by national law. Preventive restructuring frameworks should, above all, enable debtors to restructure effectively at an early stage and to avoid insolvency, thus limiting the unnecessary liquidation of viable enterprises. Those frameworks should help to prevent job losses and the loss of know-how and skills, and maximise the total value to creditors - in comparison to what they would receive in the event of the liquidation of the enterprise's assets or in the event of the next-best-alternative scenario in the absence of a plan -, as well as to owners and the economy as a whole ▌.

(3)  Preventive restructuring frameworks should also prevent the build-up of non-performing loans. The availability of effective preventive restructuring frameworks would ensure that action is taken before enterprises default on their loans, thereby helping to reduce the risk of loans becoming non-performing in cyclical downturns and mitigating the adverse impact on the financial sector. A significant percentage of businesses and jobs could be saved if preventive frameworks existed in all the Member States in which businesses’ places of establishment, assets or creditors are situated. In restructuring frameworks the rights of all parties involved, including workers, should be protected in a balanced manner. At the same time, non-viable businesses with no prospect of survival should be liquidated as quickly as possible. Where a debtor in financial difficulties is not economically viable or cannot be readily restored to economic viability, restructuring efforts could result in the acceleration and accumulation of losses to the detriment of creditors, workers and other stakeholders, as well as the economy as a whole.

(4)  There are differences between Member States as regards the range of the procedures available to debtors in financial difficulties in order to restructure their business. Some Member States have a limited range of procedures that allow the restructuring of businesses only at a relatively late stage, in the context of insolvency procedures. In other Member States, restructuring is possible at an earlier stage but the procedures available are not as effective as they could be, or they are very formal, in particular because they limit the use of out-of-court arrangements. Preventive solutions are a growing trend in insolvency law. The trend favours approaches that, unlike the traditional approach of liquidating a business in financial difficulties, have the aim of restoring it to a healthy state or, at least, saving those of its units which are still economically viable. That approach, among other benefits to the economy, often helps to maintain jobs or reduce job losses. Moreover, the degree of involvement of judicial or administrative authorities, or the persons appointed by them, varies from no involvement or minimal involvement in some Member States to full involvement in others. Similarly, national rules giving entrepreneurs a second chance, in particular by granting them discharge from the debts they have incurred in the course of their business, vary between Member States in respect of the length of the discharge period and the conditions for granting such a discharge.

(5)  In many Member States it takes more than three years for entrepreneurs who are insolvent but honest to be discharged from their debts and make a fresh start. Inefficient discharge of debt and disqualification frameworks result in entrepreneurs having to relocate to other jurisdictions in order to benefit from a fresh start in a reasonable period of time, at considerable additional cost to both their creditors and the entrepreneurs themselves. Long disqualification orders, which often accompany a procedure leading to discharge of debt, create obstacles to the freedom to take up and pursue a self-employed, entrepreneurial activity.

(6)  The excessive length of procedures concerning restructuring, insolvency and discharge of debt in several Member States is an important factor triggering low recovery rates and deterring investors from carrying out business in jurisdictions where procedures risk taking too long and being unduly costly.

(7)  Differences between Member States in relation to procedures concerning restructuring, insolvency and discharge of debt translate into additional costs for investors when assessing the risk of debtors getting into financial difficulties in one or more Member States, or of investing in viable businesses in financial difficulties, as well as additional costs of restructuring entreprises having establishments, creditors or assets in other Member States. This is most notably the case with restructuring international groups of companies. Investors mention uncertainty about insolvency rules or the risk of lengthy or complex insolvency procedures in another Member State as being one of the main reasons for not investing or not entering into a business relationship with a counterpart outside the Member State where they are based . That uncertainty acts as a disincentive which obstructs the freedom of establishment of undertakings and the promotion of entrepreneurship and harms the proper functioning of the internal market. Micro, small and medium-sized enterprises ('SMEs') in particular do not, for the most part, have the resources needed to assess risks related to cross-border activities.

(8)  The differences among Member States in procedures concerning restructuring, insolvency and discharge of debt lead to uneven conditions for access to credit and to uneven recovery rates in the Member States. A higher degree of harmonisation in the field of restructuring, insolvency, discharge of debt and disqualifications is thus indispensable for a well-functioning internal market in general and for a working Capital Markets Union in particular, as well as for the resilience of European economies, including for the preservation and creation of jobs.

(9)  The additional cost of risk-assessment and of cross-border enforcement of claims for creditors of over-indebted entrepreneurs who relocate to another Member State in order to obtain a discharge of debt in a much shorter period of time should also be reduced. The additional costs for entrepreneurs stemming from the need to relocate to another Member State in order to benefit from a discharge of debt should also be reduced. Furthermore, the obstacles stemming from long disqualification orders linked to an entrepreneur's insolvency or over-indebtedness inhibit entrepreneurship.

(10)  Any restructuring operation, in particular thoseione of major size which generates a significant impact, should be based on a dialogue with the stakeholders. That dialogue should cover the choice of the measures envisaged in relation to the objectives of the restructuring operation, as well as alternative options, and there should be appropriate involvement of employees' representatives as provided for in Union and national law.

(11)  The obstacles to the exercise of fundamental freedoms are not limited to purely cross-border situations. An increasingly interconnected internal market, in which goods, services, capital and workers circulate freely, and which has an ever stronger digital dimension, means that very few enterprises are purely national if all relevant elements are considered, such as their client base, supply chain, scope of activities, investor and capital base. Even purely national insolvencies can have an impact on the functioning of the internal market through the so-called domino effect of insolvencies, whereby a debtor's insolvency may trigger further insolvencies in the supply chain.

(12)  Regulation (EU) 2015/848 of the European Parliament and of the Council(6) deals with issues of jurisdiction, recognition and enforcement, applicable law and cooperation in cross-border insolvency proceedings as well as with the interconnection of insolvency registers. Its scope covers preventive procedures which promote the rescue of economically viable debtors as well as discharge procedures for entrepreneurs and other natural persons. However, that Regulation does not tackle the disparities between national laws regulating those procedures. Furthermore, an instrument limited only to cross-border insolvencies would not remove all obstacles to free movement, nor would it be feasible for investors to determine in advance the cross-border or domestic nature of the potential financial difficulties of the debtor in the future. There is therefore a need to go beyond matters of judicial cooperation and to establish substantive minimum standards for preventive restructuring procedures as well as for procedures leading to a discharge of debt for entrepreneurs.

(13)  This Directive should be without prejudice to the scope of Regulation (EU) 2015/848. It aims to be fully compatible with, and complementary to, that Regulation, by requiring Member States to put in place preventive restructuring procedures which comply with certain minimum principles of effectiveness. It does not change the approach taken in that Regulation of allowing Member States to maintain or introduce procedures which do not fulfil the condition of publicity for notification under Annex A to that Regulation. Although this Directive does not require that procedures within its scope fulfil all the conditions for notification under that Annex, it aims to facilitate the cross-border recognition of those procedures and the recognition and enforceability of judgments.

(14)  The advantage of the application of Regulation (EU) 2015/848 is that it provides for safeguards against abusive relocation of the debtor’s centre of main interests during cross-border insolvency proceedings. Certain restrictions should also apply to procedures not covered by that Regulation.

(15)  It is necessary to lower the costs of restructuring for both debtors and creditors. Therefore, the differences between Member States which hamper the early restructuring of viable debtors in financial difficulties and the possibility of a discharge of debt for honest entrepreneurs should be reduced. Reducing such differences should bring greater transparency, legal certainty and predictability across the Union. It should maximise the returns to all types of creditors and investors and encourage cross-border investment. Greater coherence of restructuring and insolvency procedures should also facilitate the restructuring of groups of companies irrespective of where the members of the group are located in the Union.

(16)  Removing the barriers to effective preventive restructuring of viable debtors in financial difficulties contributes to minimising job losses and losses of value for creditors in the supply chain, preserves know-how and skills and hence benefits the wider economy. Facilitating a discharge of debt for entrepreneurs would help to avoid their exclusion from the labour market and enable them to restart entrepreneurial activities, drawing lessons from past experience. Moreover, reducing the length of restructuring procedures would result in higher recovery rates for creditors as the passing of time would normally only result in a further loss of value of the debtor or the debtor's business. Finally, efficient preventive restructuring, insolvency and discharge procedures would enable a better assessment of the risks involved in lending and borrowing decisions and facilitate the adjustment for insolvent or over-indebted debtors, minimising the economic and social costs involved in their deleveraging process. This Directive should allow Member States flexibility to apply common principles while respecting national legal systems. Member States should be able to maintain or introduce in their national legal systems preventive restructuring frameworks other than those provided for by this Directive.

(17)  Enterprises, and in particular SMEs, which represent 99 % of all businesses in the Union, should benefit from a more coherent approach at Union level. SMEs are more likely to be liquidated than restructured, since they have to bear costs that are disproportionately higher than those faced by larger enterprises. SMEs, especially when facing financial difficulties, often do not have the necessary resources to cope with high restructuring costs and to take advantage of the more efficient restructuring procedures available only in some Member States. In order to help such debtors restructure at low cost, comprehensive check-lists for restructuring plans, adapted to the needs and specificities of SMEs, should be developed at national level and made available online. In addition, early warning tools should be put in place to warn debtors of the urgent need to act, taking into account the limited resources of SMEs for hiring experts.

(18)  When defining SMEs, Member States could give due consideration to Directive 2013/34/EU of the European Parliament and of the Council(7) or the Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises(8).

(19)  It is appropriate to exclude from the scope of this Directive debtors which are insurance and re-insurance undertakings as defined in points (1) and (4) of Article 13 of Directive 2009/138/EC of the European Parliament and of the Council(9), credit institutions as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council(10), investment firms and collective investment undertakings as defined in points (2) and (7) of Article 4(1) of Regulation (EU) No 575/2013, central counterparties as defined in point (1) of Article 2 of Regulation (EU) No 648/2012 of the European Parliament and of the Council(11), central securities depositories as defined in point (1) of Article 2(1) of Regulation (EU) No 909/2014 of the European Parliament and of the Council(12) and other financial institutions and entities listed in the first subparagraph of Article 1(1) of Directive 2014/59/EU of the European Parliament and of the Council(13). Such debtors are subject to special arrangements and the national supervisory and resolution authorities have wide-ranging powers of intervention in relation to them. Member States should be able to exclude other financial entities providing financial services which are subject to comparable arrangements and powers of intervention.

(20)  For similar considerations, it is also appropriate to exclude from the scope of this Directive public bodies under national law. Member States should also be able to limit the access to preventive restructuring frameworks to legal persons, since the financial difficulties of entrepreneurs may be efficiently addressed not only by means of preventive restructuring procedures but also by means of procedures which lead to a discharge of debt or by means of informal restructurings based on contractual agreements. Member States with different legal systems, where the same type of entity has a different legal status in those legal systems, should be able to apply one uniform regime to such entities. A preventive restructuring framework laid down pursuant to this Directive should not affect claims and entitlements against a debtor that arise from occupational pension systems if those claims and entitlements accrued during a period prior to the restructuring.

(21)  Consumer over-indebtedness is a matter of great economic and social concern and is closely related to the reduction of debt overhang. Furthermore, it is often not possible to draw a clear distinction between the debts incurred by entrepreneurs in the course of their trade, business, craft or profession and those incurred outside those activities. Entrepreneurs would not effectively benefit from a second chance if they had to go through separate procedures, with different access conditions and discharge periods, to discharge their business debts and other debts incurred outside their business. For those reasons, although this Directive does not include binding rules on consumer over-indebtedness, it would be advisable for Member States to apply also to consumers, at the earliest opportunity, the provisions of this Directive concerning discharge of debt.

(22)  The earlier a debtor can detect its financial difficulties and can take appropriate action, the higher the probability of avoiding an impending insolvency or, in the case of a business the viability of which is permanently impaired, the more orderly and efficient the liquidation process would be. Clear, up-to-date, concise and user-friendly information on the available preventive restructuring procedures as well as one or more early warning tools should therefore be put in place to incentivise debtors that start to experience financial difficulties to take early action. Early warning tools which take the form of alert mechanisms that indicate when the debtor has not made certain types of payments could be triggered by, for example, non-payment of taxes or social security contributions. Such tools could be developed either by Member States or by private entities, provided that the objective is met. Member States should make information about early warning tools available online, for example on a dedicated website or webpage. Member States should be able to adapt the early warning tools depending on the size of the enterprise and to lay down specific provisions on early warning tools for large-sized enterprises and groups, that take into account their peculiarities. This Directive should not impose any liability on Member States for potential damage incurred through restructuring procedures which are triggered by such early warning tools.

(23)  In an effort to increase the support of employees and their representatives, Member States should ensure that employees’ representatives are given access to relevant and up-to-date information regarding the availability of early warning tools and it should also be possible for them to provide support to employees’ representatives in assessing the economic situation of the debtor.

(24)  A restructuring framework should be available to debtors, including legal entities and, where so provided under national law, natural persons and groups of companies, to enable them to address their financial difficulties at an early stage, when it appears likely that their insolvency can be prevented and the the viability of the business can be ensured. A restructuring framework should be available before a debtor becomes insolvent under national law, namely before the debtor fulfils the conditions under national law for entering collective insolvency proceedings, which normally entail a total divestment of the debtor and the appointment of a liquidator. In order to avoid restructuring frameworks being misused, the financial difficulties of the debtor should indicate a likelihood of insolvency and the restructuring plan should be capable of preventing the insolvency of the debtor and ensuring the viability of the business.

(25)  Member States should be able to determine whether claims that fall due or that come into existence after an application to open a preventive restructuring procedure has been submitted or after the procedure has been opened are included in the preventive restructuring measures or the stay of individual enforcement actions. Member States should be able to decide whether the stay of individual enforcement actions has an effect on the interest due on claims.

(26)  Member States should be able to introduce a viability test as a condition for access to the preventive restructuring procedure provided for by this Directive. Such a test should be carried out without detriment to the debtor’s assets, which could take the form of, among other things, the granting of an interim stay or the carrying out without undue delay of the test. However, the absence of detriment should not prevent Member States from requiring debtors to prove their viability at their own cost.

(27)  The fact that Member States can limit access to a restructuring framework with regard to debtors that have been sentenced for serious breaches of accounting or book-keeping obligations should not prevent Member States from also limiting the access of debtors to preventive restructuring frameworks where their books and records are incomplete or deficient to a degree that makes it impossible to ascertain the business and financial situation of the debtors.

(28)  Member States should be able to extend the scope of preventive restructuring frameworks provided for by this Directive to situations in which debtors face non-financial difficulties, provided that such difficulties give rise to a real and serious threat to a debtor's actual or future ability to pay its debts as they fall due. The time frame relevant for the determination of such threat may extend to a period of several months, or even longer, in order to account for cases in which the debtor is faced with non-financial difficulties threatening the status of its business as a going-concern and, in the medium term, its liquidity. This may be the case, for example, where the debtor has lost a contract which is of key importance to it.

(29)  To promote efficiency and reduce delays and costs, national preventive restructuring frameworks should include flexible procedures. Where this Directive is implemented by means of more than one procedure within a restructuring framework, the debtor should have access to all rights and safeguards provided for by this Directive with the aim of achieving an effective restructuring. Except in the event of mandatory involvement of judicial or administrative authorities as provided for under this Directive, Member States should be able to limit the involvement of such authorities to situations in which it is necessary and proportionate, while taking into consideration, among other things, the aim of safeguarding the rights and interests of debtors and of affected parties as well as the aim of reducing delays and the cost of the procedures. Where creditors or employees' representatives are allowed to initiate a restructuring procedure under national law and where the debtor is an SME, Member States should require the agreement of the debtor as a precondition for the initiation of the procedure, and should also be able to to extend that requirement to debtors which are large enterprises.

(30)  To avoid unnecessary costs ▌, to reflect the early nature of preventive restructuring and to encourage debtors to apply for preventive restructuring at an early stage of their financial difficulties, they should in principle be left in control of their assets and the day-to-day operation of their business. The appointment of a practitioner in the field of restructuring, to supervise the activity of a debtor or to partially take over control of a debtor’s daily operations, should not be mandatory in every case, but made on a case-by-case basis depending on the circumstances of the case or on the debtor's specific needs. Nevertheless, Member States should be able to determine that the appointment of a practitioner in the field of restructuring is always necessary in certain circumstances, such as where: the debtor benefits from a general stay of individual enforcement actions; the restructuring plan needs to be confirmed by means of a cross-class cram-down; the restructuring plan includes measures affecting the rights of workers; or the debtor or its management have acted in a criminal, fraudulent, or detrimental manner in business relations.

(31)  For the purpose of assisting the parties with negotiating and drafting a restructuring plan, Member States should provide for the mandatory appointment of a practitioner in the field of restructuring where: a judicial or administrative authority grants the debtor a general stay of individual enforcement actions, provided that in such case a practitioner is needed to safeguard the interests of the parties; the restructuring plan needs to be confirmed by a judicial or administrative authority by means of a cross-class cram-down; it was requested by the debtor; or it is requested by a majority of creditors provided that the creditors cover the costs and fees of the practitioner.

(32)  A debtor should be able to benefit from a temporary stay of individual enforcement actions, whether granted by a judicial or administrative authority or by operation of law, with the aim of supporting the negotiations on a restructuring plan, in order to be able to continue operating or at least to preserve the value of its estate during the negotiations. Where so provided by national law, it should also be possible for the stay to apply for the benefit of third‑party security providers, including guarantors and collateral givers. However, Member States should be able to provide that judicial or administrative authorities can refuse to grant a stay of individual enforcement actions where such a stay is not necessary or where it would not fulfil the objective of supporting the negotiations. Grounds for refusal might include a lack of support by the required majorities of creditors or, where so provided under national law, the debtor’s actual inability to pay debts as they fall due.

(33)  In order to facilitate and accelerate the course of proceedings, Member States should be able to establish, on a rebuttable basis, presumptions for the presence of grounds for refusal of the stay, where, for example, the debtor shows conduct that is typical of a debtor that is unable to pay debts as they fall due - such as a substantial default vis-à-vis workers or tax or social security agencies - or where a financial crime has been committed by the debtor or the current management of an enterprise which gives reason to believe that a majority of creditors would not support the start of the negotiations.

(34)  A stay of individual enforcement actions could be general, in that it affects all creditors, or it could apply only to some individual creditors or categories of creditors. Member States should be able to exclude certain claims or categories of claims from the scope of the stay, in well-defined circumstances, such as claims which are secured by assets the removal of which would not jeopardise the restructuring of the business or claims of creditors in respect of which a stay would cause unfair prejudice, such as by way of an uncompensated loss or depreciation of collateral.

(35)  In order to provide for a fair balance between the rights of the debtor and those of creditors, a stay of individual enforcement actions should apply for a maximum period of up to four months. Complex restructurings may, however, require more time. Member States should be able to provide that, in such cases, ▌ extensions of the initial period of the stay can be granted by the judicial or administrative authority ▌. Where a judicial or administrative authority does not take a decision on the extension of a stay before it lapses, the stay should cease to have effect upon expiry of the stay period. In the interest of legal certainty, the total period of the stay should be limited to twelve months. Member States should be able to provide for an indefinite stay where the debtor becomes insolvent under national law. Member States should be able to decide whether a short interim stay pending a judicial or administrative authority's decision on access to the preventive restructuring framework is subject to the time limits under this Directive.

(36)  To ensure that creditors do not suffer unnecessary detriment, Member States should provide that judicial or administrative authorities can lift a stay of individual enforcement actions if it no longer fulfils the objective of supporting negotiations, for example if it becomes apparent that the required majority of creditors does not support the continuation of the negotiations. The stay should also be lifted if creditors are unfairly prejudiced by it, where Member States provide for such a possibility. Member States should be allowed to limit the possibility to lift the stay to situations where creditors have not had the opportunity to be heard before it came into force or before it was extended. Member States should also be allowed to provide for a minimum period during which the stay cannot be lifted. In establishing whether there is unfair prejudice to creditors, judicial or administrative authorities should be able to take into account whether the stay would preserve the overall value of the estate, and whether the debtor acts in bad faith or with the intention of causing prejudice or generally acts against the legitimate expectations of the general body of creditors.

(37)  This Directive does not cover provisions on compensation or guarantees for creditors of which the collateral is likely to decrease in value during the stay. A single creditor or a class of creditors would be unfairly prejudiced by the stay if, for example, their claims would be made substantially worse-off as a result of the stay than if the stay did not apply, or if the creditor is put more at a disadvantage than other creditors in a similar position. Member States should be able to provide that, whenever unfair prejudice is established in respect of one or more creditors or one or more classes of creditors, the stay can be lifted in respect of those creditors or classes of creditors or in respect of all creditors. Member States should be able to decide who is entitled to request the lifting of the stay.

(38)  A stay of individual enforcement actions should also result in the suspension of a debtor’s obligation to file for, or the opening at a creditor's request of, an insolvency procedure which could end in liquidation of the debtor. Such insolvency procedures should, in addition to those limited by law to having as the only possible outcome the liquidation of the debtor, also include procedures that could lead to a restructuring of the debtor. The suspension of the opening of an insolvency procedure at the request of creditors should apply not only where Member States provide for a general stay of individual enforcement actions covering all creditors, but also where Member States provide for the option of a stay of individual enforcement actions covering only a limited number of creditors. Nevertheless, Member States should be able to provide that insolvency proceedings can be opened at the request of public authorities which are not acting in a creditor capacity, but in the general interest, such as a public prosecutor.

(39)  This Directive should not prevent debtors from paying, in the ordinary course of business, claims of unaffected creditors, and claims of affected creditors that arise during the stay of individual enforcement actions. To ensure that creditors with claims that came into existence before the opening of a restructuring procedure or a stay of individual enforcement actions do not put pressure on the debtor to pay those claims, which otherwise would be reduced through the implementation of the restructuring plan, Member States should be able to provide for the suspension of the obligation on the debtor with respect to payment of those claims.

(40)  When a debtor enters an insolvency procedure, some suppliers can have contractual rights, provided for in so-called ipso facto clauses, entitling them to terminate the supply contract solely on account of the insolvency ,even if the debtor has duly met its obligations. Ipso facto clauses could also be triggered when a debtor applies for preventive restructuring measures. Where such clauses are invoked when the debtor is merely negotiating a restructuring plan or requesting a stay of individual enforcement actions or invoked in connection with any event connected with the stay, early termination can have a negative impact on the debtor's business and the successful rescue of the business. Therefore, in such cases, it is necessary to provide that creditors ▌are not allowed to invoke ipso facto clauses which make reference to negotiations on a restructuring plan or a stay or any similar event connected to the stay.

(41)  Early termination can endanger the ability of a business to continue operating during restructuring negotiations, especially when contracts for essential supplies such as gas, electricity, water, telecommunication and card payment services are concerned. Member States should provide that creditors to which a stay of individual enforcement actions applies, and whose claims came into existence prior to the stay and have not been paid by a debtor, are not allowed to withhold performance of, terminate, accelerate or, in any other way, modify essential executory contracts during the stay period, provided that the debtor complies with its obligations under such contracts which fall due during the stay. Executory contracts are, for example, lease and licence agreements, long-term supply contracts and franchise agreements.

(42)  This Directive lays down minimum standards for the content of a restructuring plan. However, Member States should be able to require additional explanations in the restructuring plan, concerning for example the criteria according to which creditors have been grouped, which may be relevant in cases where a debt is only partially secured. Member States should not be obliged to require an expert opinion regarding the value of assets which need to be indicated in the plan.

(43)  Creditors affected by a restructuring plan, including workers, and, where allowed under national law, equity-holders, should have a right to vote on the adoption of a restructuring plan. Member States should be able to provide for limited exceptions to this rule. Parties unaffected by the restructuring plan should have no voting rights in relation to the plan, nor should their support be required for the approval of any plan. The concept of 'affected parties' should only include workers in their capacity as creditors. Therefore, if Member States decide to exempt the claims of workers from the preventive restructuring framework, workers should not be considered as affected parties. The vote on the adoption of a restructuring plan could take the form of a formal voting process or of a consultation and agreement with the required majority of affected parties. However, where the vote takes the form of an agreement with the requisite majority, affected parties which were not involved in the agreement could nevertheless be offered the opportunity to join the restructuring plan.

(44)  To ensure that rights which are substantially similar are treated equitably and that restructuring plans can be adopted without unfairly prejudicing the rights of affected parties, affected parties should be treated in separate classes which correspond to the class formation criteria under national law. 'Class formation' means the grouping of affected parties for the purposes of adopting a plan in such a way as to reflect their rights and the seniority of their claims and interests. As a minimum, secured and unsecured creditors should always be treated in separate classes. Member States should however be able to require that more than two classes of creditors are formed, including different classes of unsecured or secured creditors and classes of creditors with subordinated claims. Member States should also be able to treat types of creditors that lack a sufficient commonality of interest, such as tax or social security authorities, in separate classes. It should be possible for Member States to provide that secured claims can be divided into secured and unsecured parts based on collateral valuation. It should also be possible for Member States to lay down specific rules supporting class formation where non-diversified or otherwise especially vulnerable creditors, such as workers or small suppliers, would benefit from such class formation.

(45)  Member States should be able to provide that debtors that are SMEs , can, on account of their relatively simple capital structure, be exempted from the obligation to treat affected parties in separate classes. In cases where SMEs have opted to create only one voting class and that class votes against the plan, it should be possible for debtors to submit another plan, in line with the general principles of this Directive.

(46)  Member States should in any case ensure that adequate treatment is given in their national law to matters of particular importance for class formation purposes, such as claims from connected parties, and that their national law contains rules that deal with contingent claims and contested claims. Member States should be allowed to regulate how contested claims are to be handled for the purposes of allocating voting rights. The judicial or administrative authority should examine class formation, including the selection of creditors affected by the plan, when a restructuring plan is submitted for confirmation. However, Member States should be able to provide that such authority can also examine class formation at an earlier stage should the proposer of the plan seek validation or guidance in advance.

(47)  Requisite majorities should be established by national law to ensure that a minority of affected parties in each class cannot obstruct the adoption of a restructuring plan which does not unfairly reduce their rights and interests. Without a majority rule binding dissenting secured creditors, early restructuring would not be possible in many cases, for example where a financial restructuring is needed but the business is otherwise viable. To ensure that parties have a say on the adoption of restructuring plans proportionate to the stakes they have in the business, the required majority should be based on the amount of the creditors' claims or equity holders' interests in any given class. Member States should, in addition, be able to require a majority in the number of affected parties in each class. Member States should be able to lay down rules in relation to affected parties with a right to vote which do not exercise that right in a correct manner or are not represented, such as rules allowing those affected parties to be taken into account for a participation threshold or for the calculation of a majority. Member States should also be able to provide for a participation threshold for the vote.

(48)  Confirmation of a restructuring plan by a judicial or administrative authority is necessary to ensure that the reduction of the rights of creditors or interests of equity holders is proportionate to the benefits of the restructuring and that they have access to an effective remedy. Confirmation is particularly necessary where: there are dissenting affected parties; the restructuring plan contains provisions on new financing; or the plan involves a loss of more than 25% of the work force. Member States should, however, be able to provide that confirmation by a judicial or administrative authority is necessary also in other cases. A confirmation of a plan which involves the loss of more than 25% of the work force should only be necessary where national law allows preventive restructuring frameworks to provide for measures that have a direct effect on employment contracts.

(49)  Member States should ensure that a judicial or administrative authority is able to reject a plan where it has been established that it reduces the rights of dissenting creditors or equity holders either to a level below what they could reasonably expect to receive in the event of the liquidation of the debtor's business, whether by piecemeal liquidation or by a sale as a going-concern, ▌ depending on the particular circumstances of each debtor, or to a level below what they could reasonably expect in the event of the next-best-alternative scenario where the restructuring plan is not confirmed. However, where the plan is confirmed through a cross-class cram-down, reference should be made to the protection mechanism used in such scenario. Where Member States opt to carry out a valuation of the debtor as a going-concern, the going-concern value should take into account the debtor's business in the longer term, as opposed to the liquidation value. The going-concern value is, as a rule, higher than the ▌liquidation value because it is based on the assumption that the business continues its activity with the minimum of disruption, has the confidence of financial creditors, shareholders and clients, continues to generate revenues, and limits the impact on workers.

(50)  While compliance with the best-interests-of-creditors test should be examined by a judicial or administrative authority only if the restructuring plan is challenged on that ground in order to avoid a valuation being made in every case, Member States should be able to provide that other conditions for confirmation can be examined ex officio. Member States should be able to add other conditions which need to be complied with in order to confirm a restructuring plan, such as whether equity holders are adequately protected. Judicial or administrative authorities should be able to refuse to confirm restructuring plans which have no reasonable prospect of preventing the insolvency of the debtor or ensuring the viability of the business. However, Member States should not be required to ensure that such assessment is made ex officio.

(51)  Notification to all affected parties should be one of the conditions for confirmation of a restructuring plan. Member States should be able to define the form of the notification, to identify the time when it is to be made, as well as to lay down provisions for the treatment of unknown claims as regards notification. They should also be able to provide that non-affected parties have to be informed about the restructuring plan.

(52)  Satisfying the 'best-interest-of-creditors' test should be considered to mean that no dissenting creditor is worse off under a restructuring plan than it would be either in the case of liquidation, whether ▌piecemeal liquidation or sale of the business as a going-concern, or in the event of the next-best-alternative scenario if the restructuring plan were not to be confirmed. Member States should be able to choose one of those thresholds when implementing the best-interest-of-creditors test in national law. That test should be applied in any case where a plan needs to be confirmed in order to be binding for dissenting creditors or, as the case may be, dissenting classes of creditors. As a consequence of the best-interest-of-creditors test, where public institutional creditors have a privileged status under national law, Member States could provide that the plan cannot impose a full or partial cancellation of the claims of those creditors.

(53)  While a restructuring plan should always be adopted if the required majority in each affected class supports the plan, it should still be possible for a restructuring plan which is not supported by the required majority in each affected class to be confirmed by a judicial or administrative authority, upon the proposal of a debtor or with the debtor's agreement. In the case of a legal person, Member States should be able to decide if, for the purpose of adopting or confirming a restructuring plan, the debtor is to be understood as the legal person's management board or a certain majority of shareholders or equity holders. For the plan to be confirmed in the case of a cross-class cram-down, it should be supported by a majority of voting classes of affected parties. At least one of those classes should be a secured creditor class or senior to the ordinary unsecured creditors class.

(54)  It should be possible that, where a majority of voting classes does not support the restructuring plan, the plan can nevertheless be confirmed if it is supported by at least one affected or impaired class of creditors which, upon a valuation of the debtor as a going-concern, receive payment or keep any interest, or, where so provided under national law, can reasonably be presumed to receive payment or keep any interest, if the normal ranking of liquidation priorities is applied under national law. In such a case, Member States should be able to increase the number of classes which are required to approve the plan, without necessarily requiring that all those classes should, upon a valuation of the debtor as a going-concern, receive payment or keep any interest under national law. However, Member States should not require the consent of all classes. Accordingly, where there are only two classes of creditors, the consent of at least one class should be deemed to be sufficient, if the other conditions for the application of a cross-class cram-down are met. The impairment of creditors should be understood to mean that there is a reduction in the value of their claims.

(55)  In the case of a cross-class cram-down, Member States should ensure that dissenting classes of affected creditors are not unfairly prejudiced under the proposed plan and Member States should provide sufficient protection for such dissenting classes. Member States should be able to protect a dissenting class of affected creditors by ensuring that it is treated at least as favourably as any other class of the same rank and more favourably than any more junior class. Alternatively, Member States could protect a dissenting class of affected creditors by ensuring that such dissenting class is paid in full if a more junior class receives any distribution or keeps any interest under the restructuring plan (the 'absolute priority rule'). Member States should have discretion in implementing the concept of 'payment in full', including in relation to the timing of the payment, as long as the principal of the claim and, in the case of secured creditors, the value of the collateral are protected. Member States should also be able to decide on the choice of the equivalent means by which the original claim could be satisfied in full.

(56)  Member States should be able to derogate from the absolute priority rule, for example where it is considered fair that equity holders keep certain interests under the plan despite a more senior class being obliged to accept a reduction of its claims, or that essential suppliers covered by the provision on the stay of individual enforcement actions are paid before more senior classes of creditors. Member States should be able to choose which of the above-mentioned protection mechanisms they put in place.

(57)  While shareholders' or other equity holders' legitimate interests should be protected, Member States should ensure that they cannot unreasonably prevent the adoption of restructuring plans that would bring the debtor back to viability. Member States should be able to use different means to achieve that goal, for example by not giving equity holders the right to vote on a restructuring plan and by not making the adoption of a restructuring plan ▌conditional on the agreement of equity holders that, upon a valuation of the enterprise, would not receive any payment or other consideration if the normal ranking of liquidation priorities were applied. ▌However, where equity holders have the right to vote on a restructuring plan, a judicial or administrative authority should be able to confirm the plan by applying the rules on cross-class cram down notwithstanding the dissent of one or more classes of equity holders. Member States that exclude equity holders from voting should not be required to apply the absolute priority rule in the relationship between creditors and equity holders. Another possible means of ensuring that equity holders do not unreasonably prevent the adoption of restructuring plans would be to ensure that restructuring measures that directly affect equity holders’ rights, and that need to be approved by a general meeting of shareholders under company law, are not subject to unreasonably high majority requirements and that equity holders have no competence in terms of restructuring measures that do not directly affect their rights.

(58)  Several classes of equity holders can be needed where different classes of shareholdings with different rights exist. Equity holders of SMEs that are not mere investors, but are the owners of the enterprise and contribute to the enterprise in other ways, such as managerial expertise, might not have an incentive to restructure under such conditions. For this reason, the cross-class cram-down should remain optional for debtors that are SMEs.

(59)  The restructuring plan should, for the purposes of its implementation, make it possible for equity holders of SMEs to provide non-monetary restructuring assistance by drawing on, for example, their experience, reputation or business contacts.

(60)  Throughout the preventive restructuring procedures, workers should enjoy full labour law protection. In particular, this Directive should be without prejudice to workers' rights guaranteed by Council Directives 98/59/EC(14) and 2001/23/EC(15), and Directives 2002/14/EC(16), 2008/94/EC(17) and 2009/38/EC(18) of the European Parliament and of the Council. The obligations concerning information and consultation of employees under national law transposing those Directives remain fully intact. This includes obligations to inform and consult employees' representatives on the decision to have recourse to a preventive restructuring framework in accordance with Directive 2002/14/EC.

(61)  Employees and their representatives should be provided with information regarding the proposed restructuring plan in so far as provided for in Union law, in order to allow them to undertake an in-depth assessment of the various scenarios. Furthermore, employees and their representatives should be involved to the extent necessary to fullfil the consultation requirements laid down in Union law. Given the need to ensure an appropriate level of protection of workers, Member States should be required to exempt workers' outstanding claims ▌from any stay of individual enforcement actions, irrespective of the question of whether those claims arise before or after the stay is granted. A stay of enforcement of workers' outstanding claims should be allowed only for the amounts and for the period for which the payment of such claims is effectively guaranteed at a similar level by other means under national law ▌. Where national law provides for limitations on the liability of guarantee institutions, either in terms of the length of the guarantee or the amount paid to workers, workers should be able to enforce any shortfall in their claims against the employer even during the stay period. Alternatively, Member States should be able to exclude workers' claims from the scope of the preventive restructuring frameworks and provide for their protection under national law.

(62)  Where a restructuring plan entails the transfer of a part of an undertaking or business, workers' rights arising from a contract of employment or from an employment relationship, in particular the right to wages, should be safeguarded in accordance with Articles 3 and 4 of Directive 2001/23/EC, without prejudice to the specific rules applying in the event of insolvency proceedings under Article 5 of that Directive and in particular the possibilities provided for in Article 5(2) of that Directive. This Directive should be without prejudice to the rights to information and consultation, which are guaranteed by Directive 2002/14/EC, including on decisions likely to lead to substantial changes in work organisation or in contractual relations with a view to reaching an agreement on such decisions. Furthermore, under this Directive, workers whose claims are affected by a restructuring plan should have the right to vote on the plan. For the purposes of voting on the restructuring plan, Member States should be able to decide to place workers in a class separate from other classes of creditors.

(63)  Judicial or administrative authorities should only decide on the valuation of a business - either in liquidation or in the next-best-alternative scenario, if the restructuring plan was not confirmed - if a dissenting affected party challenges the restructuring plan. This should not prevent Member States from carrying out valuations in another context under national law. However, it should be possible that such a decision also consists of an approval of a valuation by an expert or of a valuation submitted by the debtor or another party at an earlier stage of the process. Where the decision to carry out a valuation is taken, Member States should be able to provide for special rules, separate from general civil procedural law, for a valuation in restructuring cases, with a view to ensuring that it is carried out in an expedited manner. Nothing in this Directive should affect the rules on burden of proof under national law in the case of a valuation.

(64)  The binding effects of a restructuring plan should be limited to the affected parties that were involved in the adoption of the plan. Member States should be able to determine what it means for a creditor to be involved, including in the case of unknown creditors or creditors of future claims. For example, Member States should be able to decide how to deal with creditors that have been notified correctly but that did not participate in the procedures.

(65)  Interested affected parties should be able to appeal a decision on the confirmation of a restructuring plan issued by an administrative authority. Member States should also be able to introduce the option of appealing a decision on the confirmation of a restructuring plan issued by a judicial authority. However, in order to ensure the effectiveness of the plan, to reduce uncertainty and to avoid unjustifiable delays, appeals should, as a rule, not have suspensive effects and therefore not preclude the implementation of a restructuring plan. Member States should be able to determine and limit the grounds for appeal. Where the decision on the confirmation of the plan is appealed, Member States should be able to allow the judicial authority to issue a preliminary or summary decision that protects the execution and implementation of the plan against the consequences of the pending appeal being upheld . Where an appeal is upheld, judicial or administrative authorities should be able to consider, as an alternative to setting aside the plan, an amendment of the plan, where Member States provide for such a possiblity, as well as a confirmation of the plan without amendments. It should be possible for any amendments to the plan to be proposed or voted on by the parties, on their own initiative or at the request of the judicial authority. Member States could also provide for compensation for monetary losses for the party whose appeal was upheld. National law should be able to deal with a potential new stay or extension of the stay in event of the judicial authority deciding that the appeal has suspensive effect.

(66)  The success of a restructuring plan often depends on whether ▌financial assistance is extended to the debtor to support, firstly, the operation of the business during restructuring negotiations and, secondly, the implementation of the restructuring plan after its confirmation. Financial assistance should be understood in a broad sense, including the provision of money or third-party guarantees and the supply of stock, inventory, raw materials and utilities, for example through granting the debtor a longer repayment period. Interim financing and new financing should therefore be exempt from avoidance actions which seek to declare such financing void, voidable or unenforceable as an act detrimental to the general body of creditors in the context of subsequent insolvency procedures.

(67)  National insolvency laws providing for avoidance actions of interim and new financing or providing that new lenders may incur civil, administrative or criminal sanctions for extending credit to debtors in financial difficulties could jeopardise the availability of financing necessary for the successful negotiation and implementation of a restructuring plan. This Directive should be without prejudice to other grounds for declaring new or interim financing void, voidable or unenforceable, or for triggering civil, criminal or administrative liability for providers of such financing, as laid down in national law. Such other grounds could include, among other things, fraud, bad faith, a certain type of relationship between the parties which could be associated with a conflict of interest, such as in the case of transactions between related parties or between shareholders and the company, and transactions where a party received value or collateral without being entitled to it at the time of the transaction or in the manner performed.

(68)  When interim financing is extended, the parties do not know whether the restructuring plan will be eventually confirmed or not. Therefore, Member States should not be required to limit the protection of interim finance to cases where the plan is adopted by creditors or confirmed by a judicial or administrative authority ▌. To avoid potential abuses, only financing that is reasonably and immediately necessary for the continued operation or survival of the debtor's business or the preservation or enhancement of the value of that business pending the confirmation of that plan should be protected. Furthermore, this Directive should not prevent Member States from introducing an ex ante control mechanism for interim financing. Member States should be able to limit the protection for new financing to cases where the plan is confirmed by a judicial or administrative authority and for interim financing to cases where it is subject to ex ante control. An ex ante control mechanism for interim financing or other transactions could be exercised by a practitioner in the field of restructuring, by a creditor's committee or by a judicial or administrative authority. Protection from avoidance actions and protection from personal liability are minimum guarantees that should be granted to interim financing and new financing. However, encouraging new lenders to take the enhanced risk of investing in a viable debtor in financial difficulties could require further incentives such as, for example, giving such financing priority at least over unsecured claims in subsequent insolvency procedures.

(69)  In order to promote a culture that encourages early preventive restructuring, it is desirable that transactions which are reasonable and immediately necessary for the negotiation or implementation of a restructuring plan also be given protection from avoidance actions in subsequent insolvency procedures. Judicial or administrative authorities should be able, when determining the reasonableness and immediate necessity of costs and fees, for instance, to consider projections and estimates submitted to affected parties, a creditor’s committee, a practitioner in the field of restructuring or the judicial or administrative authority itself. To this end, Member States should also be able to require debtors to provide and update relevant estimates. Such protection should enhance certainty in respect of transactions with businesses that are known to be in financial difficulties and remove the fear of creditors and investors that all such transactions could be declared void in the event that the restructuring fails. Member States should be able to provide for a point in time prior to the opening of a preventive restructuring procedure and to the granting of the stay of individual enforcement actions, from which fees and costs of negotiating, adopting, confirming or seeking professional advice for the restructuring plan start to benefit from protection against avoidance actions. In the case of other payments and disbursements and the protection of the payment of workers' wages, such a starting point could also be the granting of the stay or the opening of the preventive restructuring procedure.

(70)  To further promote preventive restructuring, it is important to ensure that directors are not dissuaded from exercising reasonable business judgment or taking reasonable commercial risks, particularly where to do so would improve the chances of a restructuring of potentially viable businesses. Where the company experiences financial difficulties, directors should take steps to minimise losses and to avoid insolvency, such ▌ as: seeking professional advice, including on restructuring and insolvency, for instance by making use of early warning tools where applicable; protecting the assets of the company so as to maximise value and avoid loss of key assets; considering the structure and functions of the business to examine viability and reduce expenditure; refraining from committing the company to the types of transaction that might be subject to avoidance unless there is an appropriate business justification; continuing to trade in circumstances where it is appropriate to do so in order to maximise going-concern value; holding negotiations with creditors and entering preventive restructuring procedures.

(71)  Where the debtor is close to insolvency, it is also important to protect the legitimate interests of creditors from management decisions that may have an impact on the constitution of the debtor’s estate, in particular where those decisions could have the effect of further diminishing the value of the estate available for restructuring efforts or for distribution to creditors. It is therefore necessary to ensure that, in such circumstances, directors avoid any deliberate or grossly negligent actions that result in personal gain at the expense of stakeholders, and avoid agreeing to transactions at below market value, or taking actions leading to unfair preference being given to one or more stakeholders. Member States should be able to implement the corresponding provisions of this Directive by ensuring that judicial or administrative authorities, when assessing whether a director is to be held liable for breaches of duty of care, take the rules on duties of directors laid down in this Directive into account. This Directive is not intended to establish any hierarchy among the different parties whose interests need to be given due regard. However, Member States should be able to decide on establishing such a hierarchy. This Directive should be without prejudice to Member States' national rules on the decision-making processes in a company.

(72)  Entrepreneurs exercising a trade, business, craft or independent, self-employed profession can run the risk of becoming insolvent. The differences between the Member States in terms of opportunities for a fresh start could incentivise over-indebted or insolvent entrepreneurs to relocate to a Member State other than the Member State where they are established, in order to benefit from shorter discharge periods or more attractive conditions for discharge, leading to additional legal uncertainty and costs for the creditors when recovering their claims. Furthermore, the effects of insolvency, in particular the social stigma, the legal consequences, such as disqualifying entrepreneurs from taking up and pursuing entrepreneurial activity, and the continual inability to pay off debts, constitute important disincentives for entrepreneurs seeking to set up a business or have a second chance, even if evidence shows that entrepreneurs who have become insolvent have more chances of being successful the next time.

(73)  Steps should therefore be taken to reduce the negative effects of over-indebtedness or insolvency on entrepreneurs, in particular by allowing for a full discharge of debt after a certain period of time and by limiting the length of disqualification orders issued in connection with a debtor's over-indebtedness or insolvency. The concept of 'insolvency' should be defined by national law and it could take the form of over-indebtedness. The concept of 'entrepreneur' within the meaning of this Directive should have no bearing on the position of managers or directors of a company, which should be treated in accordance with national law. Member States should be able to decide how to obtain access to discharge, including the possibility of requiring the debtor to request discharge.

(74)  Member States should be able to provide for the possibility to adjust the repayment obligations of insolvent entrepreneurs when there is a significant change in their financial situation, regardless of whether it improves or deteriorates. This Directive should not require that a repayment plan be supported by a majority of creditors. Member States should be able to provide that entrepreneurs are not prevented from starting a new activity in the same or different field during the implementation of the repayment plan.

(75)  A discharge of debt should be available in procedures that include a repayment plan, a realisation of assets, or a combination of both. In implementing those rules, Member States should be able to choose freely among those options. If more than one procedure leading to discharge of debt is available under national law, Member States should ensure that at least one of those procedures gives insolvent entrepreneurs the opportunity of having a full discharge of debt within a period that does not exceed three years. In the case of procedures which combine a realisation of assets and a repayment plan, the discharge period should start, at the latest, from the date the repayment plan is confirmed by a court or starts being implemented, for example from the first instalment under the plan, but it could also start earlier, such as when a decision to open the procedure is taken.

(76)  In procedures that do not include a repayment plan, the discharge period should start, at the latest, from the date when a decision to open the procedure is taken by a judicial or administrative authority, or the date of the establishment of the insolvency estate. For the purposes of calculating the duration of the discharge period under this Directive, Member States should be able to provide that the concept of 'opening of procedure' does not include preliminary measures, such as preservation measures or the appointment of a preliminary insolvency practitioner, unless such measures allow for the realisation of assets, including the disposal and the distribution of assets to creditors. The establishment of the insolvency estate should not necessarily entail a formal decision or confirmation by a judicial or administrative authority, where such decision is not required under national law, and could consist in the submission of the inventory of assets and liabilities.

(77)  Where the procedural path leading to a discharge of debt entails the realisation of an entrepreneur’s assets, Member States should not be prevented from providing that the request for discharge is treated separately from the realisation of assets, provided that such request constitutes an integral part of the procedural path leading to the discharge under this Directive. Member States should be able to decide on the rules on the burden of proof in order for the discharge to operate, which means that it should be possible for entrepreneurs to be required by law to prove compliance with their obligations.

(78)  A full discharge of debt or the ending of disqualifications after a ▌period no longer than three years is not appropriate in all circumstances, therefore derogations from this rule which are duly justified by reasons laid down in national law might need to be introduced. For instance, such derogations should be introduced in cases where the debtor is dishonest or has acted in bad faith. Where entrepreneurs do not benefit from a presumption of honesty and good faith under national law, the burden of proof concerning their honesty and good faith should not make it unnecessarily difficult or onerous for them to enter the procedure.

(79)  In establishing whether an entrepreneur was dishonest, judicial or administrative authorities might take into account circumstances such as: the nature and extent of the debt; the time when the debt was incurred; the efforts of the entrepreneur to pay the debt and comply with legal obligations, including public licensing requirements and the need for proper bookkeeping; actions on the entrepreneur's part to frustrate recourse by creditors; the fulfilment of duties in the likelihood of insolvency, which are incumbent on entrepreneurs who are directors of a company; and compliance with Union and national competition and labour law. It should also be possible to introduce derogations where the entrepreneur has not complied with certain legal obligations, including obligations to maximise returns to creditors, which could take the form of a general obligation to generate income or assets. It should furthermore be possible to introduce specific derogations where it is necessary to guarantee the balance between the rights of the debtor and the rights of one or more creditors, such as where the creditor is a natural person who needs more protection than the debtor.

(80)  A derogation could also be justified where the costs of the procedure leading to a discharge of debt, including the fees of judicial and administrative authorities and of practitioners, are not covered. Member States should be able to provide that the benefits of that discharge can be revoked where, for example, the financial situation of the debtor improves significantly due to unexpected circumstances, such as winning a lottery, or coming in the possession of an inheritance or a donation. Member States should not be prevented from providing additional derogations in well-defined circumstances and when duly justified.

(81)  Where there is a duly justified reason under national law, it could be appropriate to limit the possibility of discharge for certain categories of debt. It should be possible for Member States to exclude secured debts from eligibility for discharge only up to the value of the collateral as determined by national law, while the rest of the debt should be treated as unsecured debt. Member States should be able to exclude further categories of debt when duly justified.

(82)  Member States should be able to provide that judicial or administrative authorities can verify, either ex officio or at the request of a person with a legitimate interest, whether entrepreneurs have fulfilled the conditions for obtaining a full discharge of debt.

(83)  If an entrepreneur's permit or licence to carry on a certain craft, business, trade or profession has been denied or revoked as a result of a disqualification order, this Directive should not prevent Member States from requiring the entrepreneur to submit an application for a new permit or licence after the disqualification has expired. Where a Member State authority adopts a decision concerning a specifically supervised activity, it should be possible to also take into account, even after the expiry of the disqualification period, the fact that the insolvent entrepreneur has obtained a discharge of debt in accordance with this Directive.

(84)  Personal and professional debts that cannot be reasonably separated, for example where an asset is used in the course of the professional activity of the entrepreneur as well as outside that activity, should be treated in a single procedure. Where Member States provide that such debts are subject to different insolvency procedures, coordination of those procedures is needed. This Directive should be without prejudice to Member States being able to choose to treat all the debts of an entrepreneur in a single procedure. Member States in which entrepreneurs are allowed to continue their business on their own account during insolvency proceedings should not be prevented from providing that such entrepreneurs can be made subject to new insolvency proceedings, where such continued business becomes insolvent.

(85)  It is necessary to maintain and enhance the transparency and predictability of the procedures in delivering outcomes that are favourable to the preservation of businesses and to allowing entrepreneurs to have a second chance or that permit the efficient liquidation of non-viable enterprises. It is also necessary to reduce the excessive length of insolvency procedures in many Member States, which results in legal uncertainty for creditors and investors and low recovery rates. Finally, given the enhanced cooperation mechanisms between courts and practitioners in cross-border cases, set up under Regulation (EU) 2015/848, the professionalism of all actors involved needs to be brought to comparable high levels across the Union. To achieve those objectives, Member States should ensure that members of the judicial and administrative authorities dealing with procedures concerning preventive restructuring, insolvency and discharge of debt are suitably trained and have the necessary expertise for their responsibilities. Such training and expertise could be acquired also during the exercise of the duties as a member of a judicial or administrative authority or, prior to appointment to such duties, during the exercise of other relevant duties.

(86)  Such training and expertise should enable decisions with a potentially significant economic and social impact to be taken in an efficient manner, and should not be understood to mean that members of a judicial authority have to deal exclusively with matters concerning restructuring, insolvency and discharge of debt. Member States should ensure that procedures concerning restructuring, insolvency and discharge of debt can be carried out in an efficient and expeditious manner. The creation of specialised courts or chambers, or the appointment of specialised judges in accordance with national law, as well as concentrating jurisdiction in a limited number of judicial or administrative authorities would be ▌efficient ways of achieving the objectives of legal certainty and effectiveness of procedures. Member States should not be obliged to require that procedures concerning restructuring, insolvency and discharge of debt be prioritised over other procedures.

(87)  Member States should also ensure that ▌practitioners in the field of restructuring, insolvency, and discharge of debt that are appointed by judicial or administrative authorities ('practitioners') are: suitably trained; appointed in a transparent manner with due regard to the need to ensure efficient procedures; supervised when carrying out their tasks; and perform their tasks with integrity. It is important that practitioners adhere to standards for such tasks, such as obtaining insurance for professional liability. Suitable training, qualifications and expertise for practitioners could also be acquired while practising their profession. Member States should not be obliged to provide the necessary training themselves, but this could be provided by, for example, professional associations or other bodies. Insolvency practitioners as defined in Regulation (EU) 2015/848 should be included in the scope of this Directive.

(88)  This Directive should not prevent Member States from providing that practitioners are chosen by a debtor, by creditors or by a creditors' committee from a list or a pool that is pre-approved by a judicial or administrative authority. In choosing a practitioner, the debtor, the creditors or the creditors' committee could be granted a margin of appreciation as to the practitioner's expertise and experience in general and the demands of the particular case. Debtors who are natural persons could be exempted from such a duty altogether. In cases with cross-border elements, the appointment of the practitioner should take into account, among other things, the practitioner's ability to comply with the obligations, under Regulation (EU) 2015/848, to communicate and cooperate with insolvency practitioners and judicial and administrative authorities from other Member States, as well as their human and administrative resources to deal with potentially complex cases. Member States should not be prevented from providing for a practitioner to be selected by other methods, such as random selection by a software programme, provided that it is ensured that in using those methods due consideration is given to the practitioner's experience and expertise. Member States should be able to decide on the means for objecting to the selection or appointment of a practitioner or for requesting the replacement of the practitioner, for example through a creditors' committee.

(89)  Practitioners should be subject to oversight and regulatory mechanisms which should include ▌effective measures regarding the accountability of practitioners who have failed in their duties, such as: a reduction in a practitioner's fee; the exclusion from the list or pool of practitioners who can be appointed in insolvency cases; and, where appropriate, disciplinary, administrative or criminal sanctions. Such oversight and regulatory mechanisms should be without prejudice to provisions under national law on civil liability for damages for breach of contractual or non-contractual obligations. Member States should not be required to set up specific authorities or bodies. Member States should ensure that information about the authorities or bodies exercising oversight over practitioners is publicly available. For instance, a mere reference to the judicial or administrative authority should be sufficient as information. It should be possible, in principle, to attain such standards without the need to create new professions or qualifications under national law. Member States should be able to extend the provisions on the training and supervision of practitioners to other practitioners not covered by this Directive. Member States should not be obliged to provide that disputes over remuneration of practitioners are to be prioritised over other procedures.

(90)  To further reduce the length of procedures, to facilitate better participation of creditors in procedures concerning restructuring, insolvency and discharge of debt and to ensure similar conditions among creditors irrespective of where they are located in the Union, Member States should put in place provisions enabling debtors, creditors, practitioners and judicial and administrative authorities to use electronic means of communication ▌. Therefore, it should be possible that procedural steps such as the filing of claims by creditors, the notification of creditors, or the lodging of challenges and appeals, can be carried out by electronic means of communication. Member States should be able to provide that notifications of a creditor can only be performed electronically if the creditor concerned has previously consented to electronic communication.

(91)  Parties to procedures concerning restructuring, insolvency and discharge of debt should not be obliged to use electronic means of communication if such use is not mandatory under national law, without prejudice to Member States being able to establish a mandatory system of electronic filing and service of documents in procedures concerning restructuring, insolvency and discharge of debt. Member States should be able to choose the means of electronic communications. Examples of such means could include a purpose-built system for the electronic transmission of such documents or the use of e-mail, without preventing Member States from being able to put in place features to ensure the security of electronic transmissions, such as electronic signature, or trust services, such as electronic registered delivery services, in accordance with Regulation (EU) No 910/2014 of the European Parliament and of the Council(19).

(92)  It is important to gather reliable and comparable data on the performance of procedures concerning restructuring, insolvency and discharge of debt in order to monitor the implementation and application of this Directive. Therefore, Member States should collect and aggregate data that are sufficiently granular to enable an accurate assessment of how the Directive is working in practice and should communicate those data to the Commission. The communication form for the transmission of such data to the Commission should be established by the Commission assisted by a Committee within the meaning of Regulation (EU) No 182/2011 of the European Parliament and of the Council(20). The form should provide a shortlist of the main outcomes of procedures that are common to all Member States. For example, in the case of a restructuring procedure, those main outcomes could be the following: the plan being confirmed by a court; the plan not being confirmed by a court; the restructuring procedures being converted to liquidation procedures or closed because of the opening of liquidation procedures before the plan was confirmed by a court. Member States should not be required to provide a break-down by types of outcome in respect of the procedures which end before any relevant measures are taken, but could instead provide a common number for all procedures which are declared inadmissible, rejected or withdrawn before being opened.

(93)  The communication form should provide a list of options which could be taken into account by the Member States when determining the size of a debtor, by reference to one or more of the elements of the definition of SMEs and large enterprises common to all Member States. The list should include the option of determining the size of a debtor based on the number of workers only. The form should: define the elements of average cost and average recovery rates for which Member States should be able to collect data voluntarily; provide guidance on elements which could be taken into account when Member States make use of a sampling technique, for example on sample sizes to ensure representativeness in terms of geographical distribution, size of debtors and industry; and include the opportunity for Member States to provide any additional information available, for example on the total amount of assets and liabilities of debtors.

(94)  The stability of financial markets relies heavily on financial collateral arrangements, in particular, when collateral security is provided in connection with the participation in designated systems or in central bank operations and when margins are provided to central counterparties. As the value of financial instruments given as collateral security may be very volatile, it is crucial to realise their value quickly before it goes down. Therefore, the provisions of▌Directives 98/26/EC(21) and 2002/47/EC(22) of the European Parliament and of the Council and Regulation (EU) No 648/2012 should apply notwithstanding the provisions of this Directive. Member States should be allowed to exempt netting arrangements, including close-out netting, from the effects of the stay of individual enforcement actions even in circumstances where they are not covered by Directives 98/26/EC, 2002/47/EC and Regulation (EU) No 648/2012, if such arrangements are enforceable under the laws of the relevant Member State even if insolvency proceedings are opened.

This could be the case for a significant number of master agreements widely used in the financial, energy and commodity markets, both by non-financial and financial counterparties. Such arrangements reduce systemic risks especially in derivatives markets. Such arrangements might therefore be exempt from restrictions that insolvency laws impose on executory contracts. Accordingly, Member States should also be allowed to exempt from the effects of the stay of individual enforcement actions statutory netting arrangements, including close-out netting arrangements, which operate upon the opening of insolvency procedures. The amount resulting from the operation of netting arrangements, including close-out netting arrangements should, however, be subject to the stay of individual enforcement actions.

(95)  Member States that are parties to the Convention on international interests in mobile equipment, signed at Cape Town on 16 November 2001, and its Protocols should be able to continue to comply with their existing international obligations. The provisions of this Directive regarding preventive restructuring frameworks should apply with the derogations necessary to ensure an application of those provisions without prejudice to the application of that Convention and its Protocols.

(96)  The effectiveness of the process of adoption and implementation of the restructuring plan should not be jeopardised by company law. Therefore, Member States should be able to derogate from the requirements laid down in Directive (EU) 2017/1132 of the European Parliament and of the Council(23) concerning the obligations to convene a general meeting and to offer on a pre-emptive basis shares to existing shareholders, to the extent and for the period necessary to ensure that shareholders do not frustrate restructuring efforts by abusing their rights under that Directive. For example, Member States might need to derogate from the obligation to convene a general meeting of shareholders or from the normal time periods, for cases where urgent action is to be taken by the management to safeguard the assets of the company, for instance through requesting a stay of individual enforment actions and when there is a serious and sudden loss of subscribed capital and a likelihood of insolvency. Derogations from company law might also be required when the restructuring plan provides for the emission of new shares which could be offered with priority to creditors as debt-to-equity swaps, or for the reduction of the amount of subscribed capital in the event of a transfer of parts of the undertaking. Such derogations should be limited in time to the extent that Member States consider such derogations necessary for the establishment of a preventive restructuring framework. Member States should not be obliged to derogate from company law, wholly or partially, for an indefinite or for a limited period of time, if they ensure that their company law requirements do not jeopardise the effectiveness of the restructuring process or if Member States have other, equally effective tools in place to ensure that shareholders do not unreasonably prevent the adoption or implementation of a restructuring plan which would restore the viability of the business. In this context, Member States should attach particular importance to the effectiveness of provisions relating to a stay of individual enforcement actions and confirmation of the restructuring plan which should not be unduly impaired by calls for, or the results of, general meetings of shareholders. ▌Directive (EU) 2017/1132 should therefore be amended accordingly. Member States should enjoy a margin of appreciation in assessing which derogations are needed in the context of national company law in order to effectively implement this Directive, and should also be able to provide for similar exemptions from Directive (EU) 2017/1132 in the case of insolvency proceedings not covered by this Directive but which allow for restructuring measures to be taken.

(97)  In respect of the establishment of, and subsequent changes to, the data communication form, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011.

(98)  A study should be carried out by the Commission in order to evaluate the necessity of submitting legislative proposals to deal with the insolvency of persons not exercising a trade, business, craft or profession, who, as consumers, in good faith, are temporarily or permanently unable to pay debts as they fall due. Such study should investigate whether access to basic goods and services needs to be safeguarded for those persons to ensure that they benefit from decent living conditions.

(99)  In accordance with the Joint Political Declaration of 28 September 2011 of Member States and the Commission on explanatory documents(24), Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified.

(100)  Since the objectives of this Directive cannot be sufficiently achieved by the Member States because differences between national restructuring and insolvency frameworks would continue to raise obstacles to the free movement of capital and the freedom of establishment, but can rather 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 Directive does not go beyond what is necessary in order to achieve those objectives ▌.

(101)  On 7 June 2017, the European Central Bank delivered an opinion(25),

HAVE ADOPTED THIS DIRECTIVE:

TITLE I

GENERAL PROVISIONS

Article 1

Subject matter and scope

1.  This Directive lays down rules on:

(a)  preventive restructuring frameworks available for debtors in financial difficulties when there is a likelihood of insolvency, with a view to preventing the insolvency and ensuring the viability of the debtor;

(b)  procedures leading to a discharge of debt incurred by insolvent entrepreneurs; and ▌

(c)  measures to increase the efficiency of ▌procedures concerning restructuring, insolvency and discharge of debt.

2.  This Directive does not apply to procedures referred to in paragraph 1 of this Article that concern debtors that are:

(a)  insurance undertakings or reinsurance undertakings as defined in points (1) and (4) of Article 13 of Directive 2009/138/EC;

(b)  credit institutions as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013;

(c)  investment firms or collective investment undertakings as defined in points (2) and (7) of Article 4(1) of Regulation (EU) No 575/2013;

(d)  central counter parties as defined in point (1) of Article 2 of Regulation (EU) No 648/2012;

(e)  central securities depositories as defined in point (1) of Article 2(1) of Regulation (EU) 909/2014;

(f)  other financial institutions and entities listed in the first subparagraph of Article 1(1) of Directive 2014/59/EU;

(g)  public bodies under national law; and

(h)  natural persons who are not entrepreneurs.

3.  Member States may exclude from the scope of this Directive procedures referred to in paragraph 1 that concern debtors which are financial entities, other than those referred to in paragraph 2, providing financial services which are subject to special arrangements under which the national supervisory or resolution authorities have wide-ranging powers of intervention comparable to those laid down in Union and national law in relation to the financial entities referred to in paragraph 2. Member States shall communicate those special arrangements to the Commission.

4.  Member States may extend the application of the procedures referred to in point (b) of paragraph 1 to insolvent natural persons who are not entrepreneurs.

Member States may restrict the application of point (a) of paragraph 1 to legal persons.

5.  Member States may provide that the following claims are excluded from, or are not affected by, preventive restructuring frameworks referred to in point (a) of paragraph 1:

(a)  existing and future claims of existing or former workers;

(b)  maintenance claims arising from a family relationship, parentage, marriage or affinity; or

(c)  claims that arise from tortious liability of the debtor.

6.  Member States shall ensure that preventive restructuring frameworks have no impact on accrued occupational pension entitlements.

Article 2

Definitions

1.  For the purposes of this Directive, the following definitions ▌apply:

(1)  'restructuring' means measures aimed at restructuring the debtor's business that include changing the composition, conditions ▌ or structure of a debtor's assets and liabilities or any other part of the debtor's capital structure, such as sales of assets or parts of the business and, where so provided under national law, the sale of the business as a going-concern, as well as any necessary operational changes, or a combination of those elements;

(2)  'affected parties' means creditors, including, where applicable under national law, workers, or classes of creditors and, where applicable ,under national law, equity holders, whose claims or interests, respectively, are directly affected by a restructuring plan;

(3)  'equity holder' means a person that has an ownership interest in a debtor or a debtor's business, including a shareholder, in so far as that person is not a creditor;

(4)  'stay of individual enforcement actions' means a temporary suspension, granted by a judicial or administrative authority or applied by operation of law, of the right of a creditor to enforce a claim against a debtor and, where so provided for by national law, against a third-party security provider, in the context of a judicial, administrative or other procedure, or of the right to seize or realise out of court the assets or business of the debtor;

(5)  'executory contract' means a contract between a debtor and one or more creditors under which the parties still have obligations to perform at the time the stay of individual enforcement actions is granted or applied;

(6)  'best -interest -of -creditors test' means a test that is satisfied if no dissenting creditor would be worse off under a restructuring plan than such a creditor would be if the normal ranking of liquidation priorities under national law were applied, either in the event of liquidation, whether piecemeal or by sale as a going-concern, or in the event of the next-best-alternative scenario if the restructuring plan were not confirmed;

(7)  'new financing' means any new financial assistance provided by an existing or a new creditor in order to implement a restructuring plan and that is included in that restructuring plan ▌;

(8)  'interim financing' means any new financial assistance, provided by an existing or a new creditor, that includes, as a minimum, financial assistance during the stay of individual enforcement actions, and that is reasonable and immediately necessary for the debtor's business to continue operating ▌, or to preserve or enhance the value of that business ▌;

(9)  '▌entrepreneur' means a natural person exercising a trade, business, craft or profession ▌;

(10)  'full discharge of debt' means that enforcement against entrepreneurs of their outstanding dischargeable debts is precluded or that outstanding dischargeable debts as such are cancelled, as part of a procedure which could include a realisation of assets ▌or a repayment ▌ plan or both;

(11)  ‘repayment plan’ means a programme of payments of specified amounts on specified dates by an insolvent entrepreneur to creditors, or a periodic transfer to creditors of a certain part of entrepreneur's disposable income during the discharge period;

(12)  'practitioner in the field of restructuring' means any person or body appointed by a judicial or administrative authority to carry out, in particular, one or more of the following tasks:

(a)  assisting the debtor or the creditors in drafting or negotiating a restructuring plan;

(b)  supervising the activity of the debtor during the negotiations on a restructuring plan, and reporting to a judicial or administrative authority;

(c)  taking partial control over the assets or affairs of the debtor during negotiations.

2.  For the purposes of this Directive, the following concepts are to be understood as defined by national law:

(a)  insolvency;

(b)  likelihood of insolvency;

(c)  micro, small and medium-sized enterprises ('SMEs').

Article 3

Early warning and access to information

1.  Member States shall ensure that debtors ▌have access to one or more clear and transparent early warning tools which can detect circumstances that could give rise to a likelihood of insolvency and can signal to them the need to act without delay.

For the purposes of the first subparagraph, Member States may make use of up-to-date IT technologies for notifications and for communication.

2.  Early warning tools may include the following:

(a)  alert mechanisms when the debtor has not made certain types of payments;

(b)  advisory services provided by public or private organisations.

(c)  incentives under national law for third parties with relevant information about the debtor, such as accountants, tax and social security authorities, to flag to the debtor a negative development.

3.  Member States shall ensure that debtors and employees’ representatives have access to relevant and up-to-date ▌ information about the availability of early warning tools as well as of the procedures and measures concerning restructuring and discharge of debt.

4.  Member States shall ensure that information on access to early warning tools is publicly available online and that, in particular for SMEs, it is easily accessible and presented in a user-friendly manner.

5.  Member States may provide support to employees’ representatives for the assessment of the economic situation of the debtor.

TITLE II

PREVENTIVE RESTRUCTURING FRAMEWORKS

CHAPTER 1

Availability of preventive restructuring frameworks

Article 4

Availability of preventive restructuring frameworks

1.  Member States shall ensure that, where there is a likelihood of insolvency, debtors ▌have access to a preventive restructuring framework that enables them to restructure, with a view to preventing insolvency and ensuring their viability, without prejudice to other solutions for avoiding insolvency, thereby protecting jobs and maintaining business activity.

2.  Member States may provide that debtors that have been sentenced for serious breaches of accounting or bookkeeping obligations under national law are allowed to access a preventive restructuring framework only after those debtors have taken adequate measures to remedy the issues that gave rise to the sentence, with a view to providing creditors with the necessary information to enable them to take a decision during restructuring negotiations.

3.  Member States may maintain or introduce a viability test under national law, provided that such a test has the purpose of excluding debtors that do not have a prospect of viability, and that it can be carried out without detriment to the debtors' assets.

4.  Member States may limit the number of times within a certain period a debtor can access a preventive restructuring framework as provided for under this Directive .

5.  The preventive restructuring framework provided for under this Directive may consist of one or more procedures, measures or provisions, some of which may take place out of court, without prejudice to any other restructuring frameworks under national law.

Member States shall ensure that such restructuring framework affords debtors and affected parties the rights and safeguards provided for in this Title in a coherent manner.

6.  Member States may put in place provisions limiting the involvement of a judicial or administrative authority in a preventive restructuring framework to where it is necessary and proportionate while ensuring that rights of any affected parties and relevant stakeholders are safeguarded.

7.  Preventive restructuring frameworks provided for under this Directive shall be available on application by debtors.

8.  Member States may also provide that preventive restructuring frameworks provided for under this Directive are available at the request of creditors and employees’ representatives, subject to the agreement of the debtor. Member States may limit that requirement to obtain the debtor's agreement to cases where debtors are SMEs.

CHAPTER 2

Facilitating negotiations on preventive restructuring plans

Article 5

Debtor in possession

1.  Member States shall ensure that debtors accessing preventive restructuring procedures remain totally, or at least partially, in control of their assets and the day-to-day operation of their business.

2.  Where necessary, the appointment by a judicial or administrative authority of a practitioner in the field of restructuring shall be decided on a case-by-case basis, except in certain circumstances where Member States may require the mandatory appointment of such a practitioner in every case.

3.  Member States shall provide for the appointment of a practitioner in the field of restructuring, to assist the debtor and creditors in negotiating and drafting the plan, at least in the following cases:

(a)  where a ▌general stay of individual enforcement actions, in accordance with Article 6(3), is granted by a judicial or administrative authority, and the judicial or administrative authority decides that such a practitioner is necessary to safeguard the interest of the parties;

(b)  where the restructuring plan needs to be confirmed by a judicial or administrative authority by means of a cross-class cram-down, in accordance with Article 11; or

(c)  where it is requested by the debtor or by a majority of the creditors, provided that, in the latter case, the cost of the practitioner is borne by the creditors.

Article 6

Stay of individual enforcement actions

1.  Member States shall ensure that debtors ▌can benefit from a stay of individual enforcement actions ▌to support the negotiations of a restructuring plan in a preventive restructuring framework.

Member States may provide that judicial or administrative authorities can refuse to grant a stay of individual enforcement actions where such a stay is not necessary or where it would not achieve the objective set out in the first subparagraph.

2.  Without prejudice to paragraphs 4 and 5, Member States shall ensure that a stay of individual enforcement actions can cover all types of claims, including secured claims and preferential claims.

3.  Member States may provide that a stay of individual enforcement actions can be general, covering all creditors, or can be limited, covering one or more individual creditors or categories of creditors.

Where a stay is limited, the stay shall only apply to creditors that have been informed, in accordance with national law, of negotiations as referred to in paragraph 1 on the restructuring plan or of the stay.

4.  Member States may exclude certain claims or categories of claims from the scope of the stay of individual enforcement actions, in well-defined circumstances, where such an exclusion is duly justified and where:

(a)  enforcement is not likely to jeopardise the restructuring of the business; or

(b)  the stay would unfairly prejudice the creditors of those claims.

5.  Paragraph 2 shall not apply to workers' claims.

By way of derogation from the first subparagraph, Member States may apply paragraph 2 to workers’ claims if, and to the extent that, Member States ensure ▌that the payment of such claims is guaranteed in preventive restructuring frameworks at a similar level of protection ▌.

6.  The initial duration of a stay of individual enforcement actions shall be limited to a maximum period of no more than four months.

7.  Notwithstanding paragraph 6, Member States may ▌enable judicial or administrative authorities to extend the ▌duration of a stay of individual enforcement actions or to grant a new stay of individual enforcement actions, at the request of the debtor, a creditor or, where applicable, a practitioner in the field of restructuring. Such extension or new stay of individual enforcement actions shall be granted only if well-defined circumstances show that such extension or new stay is duly justified, such as:

(a)  relevant progress has been made in the negotiations on the restructuring plan; ▌

(b)  the continuation of the stay of individual enforcement actions does not unfairly prejudice the rights or interests of any affected parties; or

(c)  insolvency proceedings which could end in the liquidation of the debtor under national law have not yet been opened in respect of the debtor.

8.  The total duration of the stay of individual enforcement actions, including extensions and renewals, shall not exceed twelve months.

Where Member States choose to implement this Directive by means of one or more procedures or measures which do not fulfil the conditions for notification under Annex A to Regulation (EU) 2015/848, the total duration of the stay under such procedures shall be limited to no more than four months if the centre of main interests of the debtor has been transferred from another Member State within a three-month period prior to the filing of a request for the opening of preventive restructuring proceedings .

9.  Member States shall ensure that judicial or administrative authorities can lift a stay of individual enforcement actions ▌in the following cases:

(a)  the stay no longer fulfils the objective of supporting the negotiations on the restructuring plan, for example if it becomes apparent that a proportion of creditors which, under national law, could prevent the adoption of the restructuring plan do not support the continuation of the negotiations; ▌

(b)  at the request of the debtor or the practitioner in the field of restructuring ▌;

(c)  where so provided for in national law, if one or more creditors or one or more classes of creditors are, or would be, unfairly prejudiced by a stay of individual enforcement actions; or

(d)  where so provided for in national law, if the stay gives rise to the insolvency of a creditor.

Member States may limit the power, under the first subparagraph, to lift the stay of individual enforcement actions to situations where creditors had not had the opportunity to be heard before the stay came into force or before an extension of the period was granted by a judicial or administrative authority.

Member States may provide for a minimum period, that does not exceed the period referred to in paragraph 6, during which a stay of individual enforcement actions cannot be lifted.

Article 7

Consequences of the stay of individual enforcement actions

1.  Where an obligation on a debtor, provided for under national law, to file for the opening of insolvency ▌proceedings which could end in the liquidation of the debtor, arises during a ▌stay of individual enforcement actions, that obligation shall be suspended for the duration of that stay.

2.  A stay of individual enforcement actions in accordance with Article 6 shall suspend, for the duration of the stay, the opening, at the request of one or more creditors, of insolvency proceedings which could end in the liquidation of the debtor.

3.  Member States may derogate from paragraphs 1 and 2 in situations where a debtor is unable to pay its debts as they fall due ▌. In such cases, Member States shall ensure that ▌ a judicial or administrative authority can decide to ▌keep in place the benefit of the stay of individual enforcement actions, if, taking into account the circumstances of the case, the opening of insolvency proceedings which could end in the liquidation of the debtor would not be in the general interest of creditors.

4.  Member States shall provide for rules preventing creditors to which the stay applies from withholding performance or terminating, accelerating or, in any other way, modifying essential executory contracts to the detriment of the debtor, for debts that came into existence prior to the stay, solely by virtue of the fact that they were not paid by the debtor. 'Essential executory contracts' shall be understood to mean executory contracts which are necessary for the continuation of the day-to-day operations of the business, including contracts concerning supplies, the suspension of which would lead to the debtor's activities coming to a standstill.

The first subparagraph shall not preclude Member States from affording such creditors appropriate safeguards with a view to preventing unfair prejudice being caused to such creditors as a result of that subparagraph.

Member States may provide that this paragraph also applies to non‑essential executory contracts.

5.  Member States shall ensure that creditors are not allowed to withhold performance or terminate, accelerate or, in any other way, modify executory contracts to the detriment of the debtor by virtue of a contractual clause providing for such measures, solely by reason of ▌:

(a)  a request for the opening of preventive restructuring proceedings;

(b)  a request for a stay of individual enforcement actions;

(c)  the opening of preventive restructuring proceedings; or

(d)  the granting of a stay of individual enforcement actions as such.

6.  Member States may provide that a stay of individual enforcement actions does not apply to netting arrangements, including close-out netting arrangements, on financial markets, energy markets and commodity markets, even in circumstances where Article 31(1) does not apply, if such arrangements are enforceable under national insolvency law. The stay shall, however, apply to the enforcement by a creditor of a claim against a debtor arising as a result of the operation of a netting arrangement.

The first subparagraph shall not apply to contracts for the supply of goods, services or energy necessary for the operation of the debtor’s business, unless such contracts take the form of a position traded on an exchange or other market, such that it can be substituted at any time at current market value.

7.  Member States shall ensure that the expiry of a stay of individual enforcement actions ▌without the adoption of a restructuring plan does not, of itself, give rise to the opening of an insolvency procedure which could end in the liquidation of the debtor, unless the other conditions for such opening laid down by national law are fulfilled.

CHAPTER 3

Restructuring plans

Article 8

Content of restructuring plans

1.  Member States shall require that restructuring plans submitted for adoption in accordance with Article 9, or for confirmation by a judicial or administrative authority in accordance with Article 10, contain at least the following information:

(a)  the identity of the debtor ▌;

(b)  the debtor’s assets and liabilities at the time of submission of the restructuring plan, including a value for the assets, a description of the economic situation of the debtor and the position of workers, and a description of the causes and the extent of the ▌difficulties of the debtor;

(c)  the ▌affected parties, whether named individually or described by ▌categories of debt in accordance with national law, as well as their claims or interests covered by the restructuring plan;

(d)  where applicable, the classes into which the affected parties have been grouped, for the purpose of adopting the restructuring plan, and the respective values of claims and interests in each class;

(e)  where applicable, the parties, whether named individually or described by ▌categories of debt in accordance with national law, which are not affected by the restructuring plan, together with a description of the reasons why it is ▌proposed not to affect them;

(f)  where applicable, the identity of the practitioner in the field of restructuring;

(g)  the terms of the restructuring plan, including, in particular:

(i)  any proposed restructuring measures as referred to in point (1) of Article 2(1);

(ii)  where applicable, the proposed duration of any proposed restructuring measures;

(iii)  the arrangements with regard to informing and consulting the employees’ representatives in accordance with Union and national law;

(iv)  where applicable, overall consequences as regards employment such as dismissals, short-time working arrangements or similar;

(v)  the estimated financial flows of the debtor, if provided for by national law; and

(vi)  any new financing anticipated as part of the restructuring plan, and the reasons why the new financing is necessary to implement that plan;

(h)  a statement of reasons which explains why the restructuring plan has a reasonable prospect of preventing the insolvency of the debtor and ensuring the viability of the business, including the necessary pre-conditions for the success of the plan. Member States may require that that statement of reasons be made or validated either by an external expert or by the practitioner in the field of restructuring if such a practitioner is appointed.

2.  Member States shall make available online a comprehensive check-list for restructuring plans, adapted to the needs of SMEs. The check-list shall include practical guidelines on how the restructuring plan has to be drafted under national law.

The check-list shall be made available in the official language or languages of the Member State. Member States shall consider making the check-list available in at least one other language, in particular in a language used in international business. ▌

Article 9

Adoption of restructuring plans

1.  Member States shall ensure that, irrespective of who applies for a preventive restructuring procedure in accordance with Article 4, debtors have the right to submit restructuring plans for adoption by the affected parties.

Member States may also provide that creditors and practitioners in the field of restructuring have the right to submit restructuring plans, and provide for conditions under which they may do so.

2.  Member States shall ensure that ▌affected parties have a right to vote on the adoption of a restructuring plan.

Parties that are not affected by a restructuring plan shall not have voting rights in the adoption of that plan.

3.  Notwithstanding paragraph 2, Member States may exclude from the right to vote the following:

(a)  equity holders;

(b)  creditors whose claims rank below the claims of ordinary unsecured creditors in the normal ranking of liquidation priorities; or

(c)  any related party of the debtor or the debtor's business, with a conflict of interest under national law.

4.  Member States shall ensure that affected parties are treated in separate classes, which reflect sufficient commonality of interest based on verifiable criteria, in accordance with national law. As a minimum, creditors of secured and unsecured claims shall be treated in separate classes for the purposes of adopting a restructuring plan.

Member States may also provide that workers' claims are treated in a separate class of their own.

Member States may provide that debtors that are SMEs can opt not to treat affected parties in separate classes.

Member States shall put in place appropriate measures to ensure that class formation is done with a particular view to protecting vulnerable creditors such as small suppliers.

5.  Voting rights and the formation of classes shall be examined by a judicial or administrative authority when a request ▌for confirmation of the restructuring plan is submitted.

Member States may require a judicial or administrative authority to examine and confirm the voting rights and formation of classes at an earlier stage than that referred to in the first subparagraph.

6.  A restructuring plan shall ▌ be adopted by affected parties, provided that a majority in the amount of their claims or interests is obtained in each ▌class. Member States may, in addition, require that a majority in the number of affected parties is obtained in each class.

Member States shall lay down the majorities required ▌for the adoption of a restructuring plan ▌. Those majorities shall ▌not be higher than 75% of the amount of claims or interests in each class or, where applicable, of the number of affected parties in each class.

7.  Notwithstanding paragraphs 2 to 6, Member States may provide that a formal vote on the adoption of a restructuring plan can be replaced by an agreement with the requisite majority ▌.

Article 10

Confirmation of restructuring plans

1.  Member States shall ensure that at least the following restructuring plans are binding on the parties only if they are confirmed by a judicial or administrative authority:

(a)  restructuring plans which affect the claims or interests of dissenting affected parties;

(b)  restructuring plans which provide for new financing;

(c)  restructuring plans which involve the loss of more than 25% of the workforce, if such loss is permitted under national law.

2.  Member States shall ensure that the conditions under which a restructuring plan can be confirmed by a judicial or administrative authority are clearly specified and include at least the following:

(a)  the restructuring plan has been adopted in accordance with Article 9 ▌;

(b)  creditors with sufficient commonality of interest in the same class are treated equally, and in a manner proportionate to their claim;

(c)  notification of the restructuring plan has been given in accordance with national law to all ▌affected parties;

(d)  where there are dissenting creditors, the restructuring plan satisfies the best-interest-of-creditors test;

(e)  where applicable, any new financing is necessary to implement the restructuring plan and does not unfairly prejudice the interests of creditors.

Compliance with point (d) of the first subparagraph shall be examined by a judicial or administrative authority only if the restructuring plan is challenged on that ground.

3.  Member States shall ensure that judicial or administrative authorities are able to refuse to confirm a restructuring plan where that plan would not have a reasonable prospect of preventing the insolvency of the debtor or ensuring the viability of the business.

4.  Member States shall ensure that where a judicial or administrative authority is required to confirm a restructuring plan in order for it to become binding, the decision is taken in an efficient manner with a view to expeditious treatment of the matter.

Article 11

Cross-class cram-down

1.  Member States shall ensure that a restructuring plan which is not approved by affected parties, as provided for in Article 9(6), in every voting class ▌, may be confirmed by a judicial or administrative authority upon the proposal of a debtor or ▌with the debtor's agreement, and become binding upon ▌dissenting voting classes where the restructuring plan ▌ ▌fulfils at least the following conditions ▌:

(a)  it complies with Article 10(2) and (3);

(b)  it has been approved by:

(i)  a majority of the voting classes of affected parties, provided that at least one of those classes is a secured creditors class or is senior to the ordinary unsecured creditors class; or, failing that,

(ii)  at least one of the voting classes of affected parties or where so provided under national law, impaired parties, other than an equity-holders class or any other class which, upon a valuation of the debtor as a going-concern, would not receive any payment or keep any interest, or, where so provided under national law, which could be reasonably presumed not to receive any payment or keep any interest, if the normal ranking of liquidation priorities were applied under national law;

(c)  it ensures that dissenting voting classes of affected creditors are treated at least as favourably as any other class of the same rank and more favourably than any junior class; and

(d)  no class of affected parties can, under the restructuring plan, receive or keep more than the full amount of its claims or interests.

By way of derogation from the first subparagraph, Member States may limit the requirement to obtain the debtor's agreement to cases where debtors are SMEs.

Member States may increase the minimum number of classes of affected parties or, where so provided under national law, impaired parties, required to approve the plan as laid down in point (b)(ii) of the first subparagraph.

2.  By way of derogation from point (c) of paragraph 1, Member States may provide that the claims of affected creditors in a dissenting voting class are satisfied in full by the same or equivalent means where a more junior class is to receive any payment or keep any interest under the restructuring plan.

Member States may maintain or introduce provisions derogating from the first subparagraph where they are necessary in order to achieve the aims of the restructuring plan and where the restructuring plan does not unfairly prejudice the rights or interests of any affected parties.

Article 12

Equity holders

1.  Where Member States exclude equity holders from the application of Articles 9 to 11, they shall ensure by other means that those equity holders are not allowed to unreasonably prevent or create obstacles to the adoption and confirmation of a restructuring plan.

2.  Member States shall also ensure that equity holders are not allowed to unreasonably prevent or create obstacles to the implementation of a restructuring plan.

3.  Member States may adapt what it means to unreasonably prevent or create obstacles under this Article to take into account, inter alia: whether the debtor is an SME or a large enterprise; the proposed restructuring measures touching upon the rights of equity holders; the type of equity holder; whether the debtor is a legal or a natural person; or whether partners in a company have limited or unlimited liability.

Article 13

Workers

1.  Members States shall ensure that individual and collective workers’ rights, under Union and national labour law, such as the following, are not affected by the preventive restructuring framework:

(a)  the right to collective bargaining and industrial action; and

(b)  the right to information and consultation in accordance with Directive 2002/14/EC and Directive 2009/38/EC, in particular:

(i)  information to employees' representatives about the recent and probable development of the undertaking's or the establishment's activities and economic situation, enabling them to communicate to the debtor concerns about the situation of the business and as regards the need to consider restructuring mechanisms;

(ii)  information to employees' representatives about any preventive restructuring procedure which could have an impact on employment, such as on the ability of workers to recover their wages and any future payments, including occupational pensions;

(iii)  information to and consultation of employees' representatives about restructuring plans before they are submitted for adoption in accordance with Article 9, or for confirmation by a judicial or administrative authority in accordance with Article 10;

(c)  the rights guaranteed by Directives 98/59/EC, 2001/23/EC and 2008/94/EC.

2.  Where the restructuring plan includes measures leading to changes in the work organisation or in contractual relations with workers, those measures shall be approved by those workers, if national law or collective agreements provide for such approval in such cases.

Article 14

Valuation by the judicial or administrative authority

1.  The judicial or administrative authority shall take a decision on the valuation of the debtor’s business only where a restructuring plan is challenged by a dissenting affected party on the grounds of either:

(a)  an alleged failure to satisfy the best-interest-of-creditors test under point (6) of Article 2(1); or

(b)  an alleged breach of the conditions for a cross-class cram-down under point (ii) of Article 11(1)(b).

2.  Member States shall ensure that, for the purpose of taking a decision on a valuation in accordance with paragraph 1, judicial or administrative authorities may appoint or hear properly qualified experts.

3.  For the purposes of paragraph 1, Member States shall ensure that a dissenting affected party may lodge a challenge with the judicial or administrative authority called upon to confirm the restructuring plan ▌.

Member States may provide that such a challenge can be lodged in the context of an appeal against a decision on the confirmation of a restructuring plan.

Article 15

Effects of restructuring plans

1.  Member States shall ensure that restructuring plans that are confirmed by a judicial or administrative authority are binding upon all affected parties named or described in accordance with point (c) of Article 8(1).

2.  Member States shall ensure that creditors that are not involved in the adoption of a restructuring plan under national law are not ▌ affected by the plan.

Article 16

Appeals

1.  Member States shall ensure that any appeal provided for under national law against a decision to confirm or reject a restructuring plan taken by a judicial authority is brought before a higher judicial authority ▌.

Member States shall ensure that an appeal against a decision to confirm or reject a restructuring plan taken by an administrative authority is brought before a judicial authority.

2.  Appeals shall be resolved in an efficient manner with a view to expeditious treatment.

3.  An appeal against a decision confirming a restructuring plan shall have no suspensive effects on the execution of that plan.

By way of derogation from the first subparagraph, Member States may provide that judicial authorities can suspend the execution of the restructuring plan or parts thereof where necessary and appropriate to safeguard the interests of a party.

4.  Member States shall ensure that, where an appeal pursuant to paragraph 3 is upheld, the judicial authority may either:

(a)  set aside the restructuring plan; or

(b)  confirm the restructuring plan, either with amendments, where so provided under national law, or without amendments.

Member States may provide that, where a plan is confirmed under point (b) of the first subparagraph, compensation is granted to any party that incurred monetary losses and whose appeal is upheld.

CHAPTER 4

Protection for new financing, interim financing and other restructuring related transactions

Article 17

Protection for new financing and interim financing

1.  Member States shall ensure that new financing and interim financing are adequately ▌ protected. As a minimum, in the case of any subsequent insolvency of the debtor:

(a)  new financing and interim financing shall not be declared void, voidable or unenforceable; and

(b)  the grantors of such financing shall not incur civil, administrative or criminal liability, on the ground that such financing is detrimental to the general body of creditors, unless other additional grounds laid down by national law are present.

2.  Member States may provide that paragraph 1 shall only apply to new financing if the restructuring plan has been confirmed by a judicial or administrative authority, and to interim financing which has been subject to ex ante control.

3.  Member States may exclude from the application of paragraph 1 interim financing which is granted after the debtor has become unable to pay its debts as they fall due.

4.  Member States may provide that grantors of new or interim financing are entitled to receive payment with priority in the context of subsequent insolvency procedures in relation to other creditors that would otherwise have superior or equal claims ▌.

Article 18

Protection for other restructuring related transactions

1.  Without prejudice to Article 17, Member States shall ensure that, in the event of any subsequent insolvency of a debtor, transactions that are reasonable and immediately necessary for the negotiation of a restructuring plan ▌are not declared void, voidable or unenforceable on the ground that such transactions are detrimental to the general body of creditors, unless other additional grounds laid down by national law are present.

2.  Member States may provide that paragraph 1 only applies where the plan is confirmed by a judicial or administrative authority or where such transactions were subject to ex ante control.

3.  Member States may exclude from the application of paragraph 1 transactions that are carried out after the debtor has become unable to pay its debts as they fall due.

4.  Transactions ▌ referred to in paragraph 1 shall include, as a minimum:

(a)  the payment of ▌ fees for and costs of negotiating, adopting or confirming ▌a restructuring plan;

(b)  the payment of ▌fees for and costs of seeking professional advice closely connected with the restructuring ▌;

(c)  the payment of workers’ wages for work already carried out without prejudice to other protection provided in Union or national law;

(d)  any ▌payments and disbursements made in the ordinary course of business other than those referred to in points (a) to (c).

5.  Without prejudice to Article 17, Member States shall ensure that, in the event of any subsequent insolvency of the debtor, transactions that are reasonable and immediately necessary for the implementation of a restructuring plan, and that are carried out in accordance with the restructuring plan confirmed by a judicial or administrative authority, ▌are not declared void, voidable or unenforceable on the ground that such transactions are detrimental to the general body of creditors, unless other additional grounds laid down by national law are present.

CHAPTER 5

Duties of directors

Article 19

Duties of directors where there is a likelihood of insolvency

Member States shall ▌ ensure that, where there is a likelihood of insolvency, directors, have due regard, as a minimum, to the following:

(a)  the interests of creditors ▌, equity holders and other stakeholders ;

(b)  the need to take ▌ steps to avoid insolvency; and

(c)  the need to avoid deliberate or grossly negligent conduct that threatens the viability of the business.

TITLE III

DISCHARGE OF DEBT AND DISQUALIFICATIONS

Article 20

Access to discharge

1.  Member States shall ensure that insolvent entrepreneurs have access to at least one procedure that can lead to a full discharge of debt in accordance with this Directive.

Member States may require that the trade, business, craft or profession to which an insolvent entrepreneur’s debts are related has ceased.

2.  Member States in which a full discharge of debt is conditional on a partial repayment of debt by the entrepreneur shall ensure that the related repayment obligation is based on the individual situation of the entrepreneur and, in particular, is ▌proportionate to the entrepreneur's seizable or ▌disposable income and assets during the discharge period and takes into account the equitable interest of creditors.

3.  Member States shall ensure that entrepreneurs who have been discharged from their debts may benefit from existing national frameworks providing for business support for entrepreneurs, including access to relevant and up-to-date information about these frameworks.

Article 21

Discharge period

1.  Member States shall ensure that the period ▌after which insolvent entrepreneurs are able to be fully discharged from their debts is no longer than three years starting at the latest from the date of either:

(a)  in the case of a procedure which includes a repayment plan, the decision by a judicial or administrative authority to confirm the plan or the start of the implementation of the plan; or

(b)  in the case of any other procedure, the decision by the judicial or administrative authority to open the procedure, or the establishment of the entrepreneur’s insolvency estate.

2.  Member States shall ensure that insolvent entrepreneurs who have complied with their obligations, where such obligations exist under national law, are discharged of their debt on expiry of the discharge period ▌ without the need to ▌apply to a judicial or administrative authority to open a procedure additional to those referred to in paragraph 1.

Without prejudice to the first subparagraph, Member States may maintain or introduce provisions allowing the judicial or administrative authority to verify whether the entrepreneurs have fulfilled the obligations for obtaining a discharge of debt.

3.  Member States may provide that a full discharge of debt does not hinder the continuation of an insolvency procedure that entails the realisation and distribution of assets of an entrepreneur that formed part of the insolvency estate of that entrepreneur as at the date of expiry of the discharge period.

Article 22

Disqualification period

1.  Member States shall ensure that, where an insolvent entrepreneur obtains a discharge of debt in accordance with this Directive, any disqualifications from taking up or pursuing a trade, business, craft or profession on the sole ground that the entrepreneur is insolvent, shall cease to have effect, at the latest, at the end of the discharge period.

2.  Member States shall ensure that, on expiry of the discharge period, the disqualifications referred to in paragraph 1 of this Article cease to have effect without the need to ▌apply to a judicial or administrative authority to open a procedure additional to those referred to in Article 21(1).

Article 23

Derogations

1.  By way of derogation from Articles 20 to 22, Member States shall maintain or introduce provisions denying or restricting access to discharge of debt, revoking the benefit of such discharge or providing for longer periods for obtaining a full discharge of debt or longer disqualification periods, where the insolvent entrepreneur acted dishonestly or in bad faith under national law towards creditors or other stakeholders when becoming indebted, during the insolvency proceedings or during the payment of the debt, without prejudice to national rules on burden of proof.

2.  By way of derogation from Articles 20 to 22, Member States may maintain or introduce provisions denying or restricting access to discharge of debt, revoking the benefit of discharge or providing for longer periods for obtaining a full discharge of debt or longer disqualification periods in certain well-defined circumstances and where such derogations are duly justified, such as where:

(a)  the insolvent entrepreneur has substantially violated obligations under a repayment plan or ▌any other legal obligation aimed at safeguarding the interests of creditors, including the obligation to maximise returns to creditors;

(b)  the insolvent entrepreneur has failed to comply with information or cooperation obligations under Union and national law;

(c)  there are abusive applications for a discharge of debt;

(d)  there is a further application for a discharge within a certain period after the insolvent entrepreneur was granted a full discharge of debt or was denied a full discharge of debt due to a serious violation of information or cooperation obligations;

(e)  the cost of the procedure leading to the discharge of debt is not covered; or

(f)  a derogation is necessary to guarantee the balance between the rights of the debtor and the rights of one or more creditors.

3.  By way of derogation from Article 21, Member States may provide for longer discharge periods in cases where ▌:

(a)  protective measures are approved or ordered by a judicial or administrative authority in order to safeguard the main residence of the insolvent entrepreneur and, where applicable, of the entrepreneur's family, or the essential assets for the continuation of the entrepreneur's trade, business, craft or profession; or

(b)  the main residence of the insolvent entrepreneur and, where applicable, of the entrepreneur's family, is not realised.

4.  Member States may exclude specific categories of debt ▌ from discharge of debt, or restrict access to discharge of debt or lay down a longer discharge period where such exclusions, restrictions or longer periods are duly justified, such as in the case of:

(a)  secured debts;

(b)  debts arising from or in connection with criminal penalties;

(c)  debts arising from tortious liability;

(d)  debts regarding maintenance obligations arising from a family relationship, parentage, marriage or affinity;

(e)  debts incurred after the application for or opening of the procedure leading to a discharge of debt; and

(f)  debts arising from the obligation to pay the cost of the procedure leading to a discharge of debt.

5.  By way of derogation from Article 22, Member States may provide for longer or indefinite disqualification periods where the insolvent entrepreneur is a member of a profession:

(a)  to which specific ethical rules or specific rules on reputation or expertise apply, and the entrepreneur has infringed those rules; or

(b)  dealing with the management of the property of others.

The first subparagraph shall also apply where an insolvent entrepreneur requests access to a profession as referred to in point (a) or (b) of that subparagraph.

6.  This Directive is without prejudice to national rules regarding disqualifications ▌ordered by a judicial or administrative authority other than those referred to in Article 22.

Article 24

Consolidation of proceedings regarding professional and personal debts

1.  Member States shall ensure that, where insolvent entrepreneurs have professional debts incurred in the course of their trade, business, craft or profession as well as personal debts incurred outside those activities, which cannot be reasonably separated, such debts, if dischargeable, shall be treated in a single procedure for the purposes of obtaining a full discharge of debt.

2.  Member States may provide that, where professional debts and personal debts can be separated, those debts are to be treated, for the purposes of obtaining a full discharge of debt, either in separate but coordinated procedures or in the same procedure.

TITLE IV

MEASURES TO INCREASE THE EFFICIENCY OF PROCEDURES CONCERNING RESTRUCTURING, INSOLVENCY AND DISCHARGE OF DEBT

Article 25

Judicial and administrative authorities

▌Without prejudice to judicial independence and to any differences in the organisation of the judiciary across the Union, ▌Member States shall ensure that ▌:

(a)  members of the judicial and administrative authorities dealing with procedures concerning restructuring, insolvency and discharge of debt receive suitable training and have the necessary expertise for their responsibilities; and

(b)  procedures concerning restructuring, insolvency and discharge of debt are dealt with in an efficient manner, with a view to the expeditious treatment of procedures.

Article 26

Practitioners in procedures concerning restructuring, insolvency and discharge of debt

1.  Member States shall ensure that:

(a)  practitioners appointed by a judicial or administrative authority in procedures concerning restructuring, insolvency and discharge of debt ('practitioners') receive suitable training and have the necessary expertise for their responsibilities;

(b)  the conditions for eligibility, as well as the process for the appointment, removal and resignation of practitioners are clear, transparent and fair;

(c)  in appointing a practitioner for a particular case, including cases with cross-border elements, due consideration is given to the practitioner's experience and expertise, and to the specific features of the case; and

(d)  in order to avoid any conflict of interest, debtors and creditors have the opportunity to either object to the selection or appointment of a practitioner or request the replacement of the practitioner.

2.  The Commission shall facilitate the sharing of best practices between Member States with a view to improving the quality of training across the Union, including by means of the exchange of experiences and capacity building tools.

Article 27

Supervision and remuneration of practitioners ▌

1.  Member States shall put in place appropriate oversight and regulatory mechanisms to ensure that the work of practitioners is effectively supervised, with a view to ensuring that their services are provided in an effective and competent way, and, in relation to the parties involved, are provided impartially and independently. Those mechanisms shall also include measures for the accountability of practitioners who have failed in their duties.

2.  Member States shall ensure that information about the authorities or bodies exercising oversight over practitioners is publicly available.

3.  Member States may encourage the development of and adherence to codes of conduct by practitioners.

4.  Member States shall ensure that the remuneration of practitioners is governed by rules that are consistent with the objective of an efficient resolution of procedures ▌.

Member States shall ensure that appropriate procedures are in place to resolve any disputes over remuneration ▌.

Article 28

Use of electronic means of communication

Member States shall ensure that, in procedures concerning restructuring, insolvency and discharge of debt, the parties to the procedure, the practitioner and the judicial or administrative authority are able to perform by use of electronic means of communication, including in cross-border situations, at least the following actions:

(a)  filing of claims;

(b)  submission of restructuring or repayment plans ▌;

(c)  notifications to creditors;

(d)  lodging of challenges and appeals.

TITLE V

MONITORING OF PROCEDURES CONCERNING RESTRUCTURING, INSOLVENCY AND DISCHARGE OF DEBT

Article 29

Data collection

1.  ▌Member States shall collect and aggregate, on an annual basis, at national level, data on ▌ procedures concerning restructuring, insolvency and discharge of debt, broken down by each type of procedure, and covering at least the following elements:

(a)  the number of procedures that were applied for or opened, where such opening is provided for under national law, and of procedures that are pending or were closed;

(b)  the average length of procedures from the submission of the application, or from the opening thereof, where such opening is provided for under national law, to their closure;

(c)  the number of procedures other than those required under point (d), broken down by types of outcome;

(d)  the number of applications for restructuring procedures that were declared inadmissible, were rejected or were withdrawn before being opened.

2.  Member States shall collect and aggregate, on an annual basis, at national level, data on the number of debtors which were subject to restructuring procedures or insolvency procedures and which, within the three years prior to the submission of the application or the opening of such procedures, where such opening is provided for under national law, had a restructuring plan confirmed under a previous restructuring procedure implementing Title II.

3.  Member States may collect and aggregate, on an annual basis, at national level, data on:

(a)  the average cost of each type of procedure;

(b)  the average recovery rates for secured and unsecured creditors and, where applicable, other types of creditors, separately ▌;

(c)  the number of entrepreneurs who, after having undergone a procedure under point (b) of Article 1(1), launch a new business;

(d)  the number of job losses linked to restructuring and insolvency procedures.

4.  Member States shall break down the data referred to in points (a) to (c) of paragraph 1 and, where applicable and available, the data referred to in paragraph 3 by:

(a)  the size of the debtors that are not natural persons;

(b)  whether debtors subject to procedures concerning restructuring or insolvency are natural or legal persons; and

(c)  ▌whether the procedures leading to a discharge of debt concern only entrepreneurs or all natural persons.

5.  Member States may collect and aggregate the data referred to in paragraphs 1 to 4 through a sample technique that ensures that the samples are representative in terms of size and diversity.

6.  Member States shall collect and aggregate the data referred to in paragraphs 1, 2, 4 and, where applicable, paragraph 3, for full calendar years ending on 31 December of each year, starting with ▌the first full calendar year following the date of application of implementing acts referred to in paragraph 7. The data shall be communicated annually to the Commission, on the basis of a standard data communication form, by 31 December of the calendar year following the year for which data are collected.

7.  The Commission shall establish the communication form referred to in paragraph 6 of this Article by way of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 30(2).

8.  The Commission shall publish on its website the data communicated in accordance with paragraph 6 in an accessible and user-friendly manner.

Article 30

Committee procedure

1.  The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2.  Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Where the committee delivers no opinion, the Commission shall not adopt the draft implementing act and the third subparagraph of Article 5(4) of Regulation (EU) No 182/2011 shall apply.

TITLE VI

FINAL PROVISIONS

Article 31

Relationship with other acts and international instruments

1.  The following acts shall apply notwithstanding this Directive:

(a)  Directive 98/26/EC;

(b)  Directive 2002/47/EC; and

(c)  Regulation (EU) No 648/2012.

2.   This Directive shall be without prejudice to the safeguarding requirements of funds for payment institutions laid down under Directive (EU) 2015/2366 of the European Parliament and of the Council(26) and for electronic money institutions laid down under Directive 2009/110/EC of the European Parliament and of the Council(27).

3.  This Directive shall be without prejudice to the application of the Convention on international interests in mobile equipment and its Protocol on matters specific to aircraft equipment, signed at Cape Town on 16 November 2001, to which some Member States are party at the time of the adoption of this Directive.

Article 32

Amendment of Directive (EU) 2017/1132

In Article 84 of Directive (EU) 2017/1132, the following paragraph is added:"

"4. Member States shall derogate from Article 58(1), Article 68, Articles 72, 73, and74, point (b) of Article 79(1), Article 80(1) and Article 81 to the extent and for the period that such derogations are necessary for the establishment of the preventive restructuring frameworks provided for in Directive (EU) 2019/.... of the European Parliament and of the Council ▌*.

The first subparagraph shall be without prejudice to the principle of equal treatment of shareholders.

-----------------------------------------------------------------------------------------------------------------

* Directive of the European Parliament and of the Council on preventive restructuring ▌frameworks, on discharge of debt and disqualifications and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 (Directive on restructuring and insolvency) (OJ ,…,…).".

"

Article 33

Review clause

No later than … [seven years from the date of entry into force of this Directive] and every five years thereafter, the Commission shall present to the European Parliament, the Council and the European Economic and Social Committee a report on the application and impact of this Directive, including on the application of the class formation and voting rules in respect of vulnerable creditors, such as workers. On the basis of that assessment, the Commission shall submit, if appropriate, a legislative proposal, considering additional measures to consolidate and harmonise the legal framework on restructuring, insolvency and discharge of debt.

Article 34

Transposition

1.  Member States shall adopt and publish, by … [two years from the date of entry into force of this Directive], the laws, regulations and administrative provisions necessary to comply with this Directive, with the exception of the provisions necessary to comply with points (a), (b) and (c) of Article 28 which shall be adopted and published by … [five years from the date of entry into force of this Directive] and the provisions necessary to comply with point (d) of Article 28 which shall be adopted and published by … [seven years from the date of entry into force of this Directive]. They shall immediately communicate ▌ the text of those provisions to the Commission.

They shall apply the laws, regulations and administrative provisions necessary to comply with this Directive from … [two years from the date of entry into force of this Directive], with the exception of the provisions necessary to comply with points (a), (b) and (c) of Article 28, which shall apply from … [five years from the date of entry into force of this Directive] and of the provisions necessary to comply with point (d) of Article 28, which shall apply from … [seven years from the date of entry into force of this Directive].

2.  By way of derogation from paragraph 1, Member States that encounter particular difficulties in implementing this Directive shall be able to benefit from an extension of a maximum of one year of the implementation period provided for in paragraph 1. Member States shall notify to the Commission the need to make use of this option to extend the implementation period by … [18 months from the date of entry into force of this Directive].

3.  Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.

Article 35

Entry into force

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

Article 36

This Directive is addressed to the Member States.

Done at …,

For the European Parliament For the Council

The President The President

(1) OJ C 209, 30.6.2017, p. 21.
(2) OJ C 342, 12.10.2017, p. 43.
(3)OJ C ▌209, 30.6.2017, p. ▌21.
(4)OJ C 342, 12.10.2017, p. 43.
(5) Position of the European Parliament of 28 March 2019.
(6)Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (OJ L 141, 5.6.2015, p. 19).
(7) Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).
(8) Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).
(9)Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1).
(10)Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176 27.6.2013, p. 1).
(11)Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201 27.7.2012, p. 1).
(12)Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257 28.8.2014, p. 1).
(13)Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190).
(14)Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies (OJ L 225, 12.08.1998, p. 16).
(15)Council Directive 2001/23/EC of 12 March 2001 on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of undertakings or businesses (OJ L 82, 22.03.2001, p. 16).
(16)Directive 2002/14/EC of the European Parliament and of the Council of 11 March 2002 establishing a general framework for informing and consulting employees in the European Community (OJ L 80, 23.3.2002, p. 29).
(17)Directive 2008/94/EC of the European Parliament and of the Council of 22 October 2008 on the protection of employees in the event of the insolvency of their employer (OJ L 283, 28.10.2008, p. 36).
(18)Directive 2009/38/EC of the European Parliament and of the Council of 6 May 2009 on the establishment of a European Works council or a procedure in Community-scale undertakings and community-scale groups of undertakings for the purpose of informing and consulting employees (OJ L 122, 16.5.2009, p.28).
(19) Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC (OJ L 257, 28.8.2014, p. 73).
(20)Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).
(21)Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems (OJ L 166, 11.6.1998, p. 45).
(22)Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements (OJ L 168, 27.6.2002, p. 43).
(23)Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law (OJ L 169, 30.6.2017, p.46).
(24)OJ C 369, 17.12.2011, p. 14.
(25) OJ C 236, 21.7.2017, p. 2.
(26)Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35).
(27) Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7).


Exercise of copyright and related rights applicable to certain online transmissions and retransmissions of television and radio programmes ***I
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Resolution
Consolidated text
European Parliament legislative resolution of 28 March 2019 on the proposal for a regulation of the European Parliament and of the Council laying down rules on the exercise of copyright and related rights applicable to certain online transmissions of broadcasting organisations and retransmissions of television and radio programmes (COM(2016)0594 – C8-0384/2016 – 2016/0284(COD))
P8_TA-PROV(2019)0322A8-0378/2017

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0594),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0384/2016),

–  having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis,

–  having regard to Article 294(3) and to Article 53(1) and Article 62 of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the European Economic and Social Committee of 25 January 2017(1),

–  after consulting the Committee of the Regions,

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 18 January 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rules 59 and 39 of its Rules of Procedure,

–  having regard to the report of the Committee on Legal Affairs and the opinions of the Committee on Culture and Education, the Committee on Industry, Research and Energy and the Committee on the Internal Market and Consumer Protection (A8-0378/2017),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Position of the European Parliament adopted at first reading on 28 March 2019 with a view to the adoption of Directive (EU) 2019/… of the European Parliament and of the Council laying down rules on the exercise of copyright and related rights applicable to certain online transmissions of broadcasting organisations and retransmissions of television and radio programmes, and amending Council Directive 93/83/EEC

P8_TC1-COD(2016)0284


(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 53(1) and Article 62 thereof,

Having regard to the proposal from the European Commission,

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

Having regard to the opinion of the European Economic and Social Committee(2),

After consulting the Committee of the Regions,

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

Whereas:

(1)  In order to contribute to the proper functioning of the internal market, it is necessary to provide for wider dissemination in Member States of television and radio programmes that originate in other Member States, for the benefit of users across the Union, by facilitating the licensing of copyright and related rights in works and other protected subject matter contained in broadcasts of certain types of television and radio programmes. Television and radio programmes are important means of promoting cultural and linguistic diversity and social cohesion, and of increasing access to information.

(2)  The development of digital technologies and the internet has transformed the distribution of, and access to, television and radio programmes. Users increasingly expect to have access to television and radio programmes, both live and on-demand, through traditional channels, such as satellite or cable, and also through online services. Broadcasting organisations are therefore increasingly offering, in addition to their own broadcasts of television and radio programmes, online services ancillary to such broadcasts, such as simulcasting and catch-up services. Operators of retransmission services, which aggregate broadcasts of television and radio programmes into packages and provide them to users simultaneously with the initial transmission of those broadcasts, unaltered and unabridged, use various techniques of retransmission, such as cable, satellite, digital terrestrial, and mobile or closed circuit IP-based networks, as well as the open internet. Furthermore, operators that distribute television and radio programmes to users have different ways of obtaining the programme-carrying signals of broadcasting organisations, including by means of direct injection. There is a growing demand, on the part of users, for access to broadcasts of television and radio programmes not only originating in their Member State, but also in other Member States. Such users include members of linguistic minorities in the Union, as well as persons who live in a Member State other than their Member State of origin.

(3)  ▌Broadcasting organisations transmit daily many hours of television and radio programmes. Those programmes incorporate a variety of content, such as audiovisual, musical, literary or graphic works, protected under Union law by copyright or related rights or both. That results in a complex process of clearing the rights of a multitude of rightholders, and for various categories of works and other protected subject matter. Often the rights need to be cleared in a short time frame, in particular when preparing programmes such as news or current affairs programmes. In order to make their online services available across borders, broadcasting organisations need to have the required rights to works and other protected subject matter for all the relevant territories, which further increases the complexity of the clearance of such rights.

(4)  Operators of retransmission services typically offer multiple programmes comprising a multitude of works and other protected subject matter and have a very short time frame for obtaining the necessary licences and, hence, face a significant rights clearance burden. Authors, producers and other rightholders also risk having their works and other protected subject matter used without authorisation or payment of appropriate remuneration. Such remuneration for the retransmission of their works and other protected subject matter is important to ensure that there is a diverse content offer, which is also in the interest of consumers.

(5)  The rights in works and other protected subject matter are harmonised, inter alia, through Directive 2001/29/EC of the European Parliament and of the Council(4) and Directive 2006/115/EC of the European Parliament and of the Council(5), which provide for a high level of protection for rightholders.

(6)  Council Directive 93/83/EEC(6) facilitates cross-border satellite broadcasting and retransmission by cable of television and radio programmes from other Member States. However, the provisions of that Directive on transmissions of broadcasting organisations are limited to satellite transmissions and, therefore, do not apply to online services ancillary to broadcasts. Furthermore, the provisions concerning retransmissions of television and radio programmes from other Member States are limited to simultaneous, unaltered and unabridged retransmission by cable or microwave systems and do not cover retransmissions by means of other technologies.

(7)  Accordingly, cross-border provision of online services that are ancillary to broadcasts, and retransmissions of television and radio programmes originating in other Member States, should be facilitated by adapting the legal framework on the exercise of copyright and related rights relevant for those activities. That adaptation should be done by taking account of the financing and production of creative content, and, in particular, of audiovisual works.

(8)  This Directive should cover ancillary online services offered by a broadcasting organisation, which have a clear and subordinate relationship with the broadcasting organisation’s broadcasts. Those services include services that give access to television and radio programmes in a strictly linear manner, simultaneously to the broadcast, and services that give access, within a defined time period after the broadcast, to television and radio programmes which have been previously broadcast by the broadcasting organisation, so-called ‘catch-up services’. In addition, the ancillary online services covered by this Directive include services that give access to material that enriches or otherwise expands television and radio programmes broadcast by the broadcasting organisation, including by way of previewing, extending, supplementing or reviewing the relevant programme's content. This Directive should apply to ancillary online services that are provided to users by broadcasting organisations together with the broadcasting service. It should also apply to ancillary online services that, while having a clear and subordinate relationship with the broadcast, can be accessed by users separately from the broadcasting service without there being a precondition for the users to have to obtain access to that broadcasting service, for example via a subscription. This does not affect the freedom of broadcasting organisations to offer such ancillary online services free of charge or against payment. The provision of access to individual works or other protected subject matter that have been incorporated in a television or radio programme, or to works or other protected subject matter that are not related to any programme broadcast by the broadcasting organisation, such as services giving access to individual musical or audiovisual works, music albums or videos, for example video-on-demand services, should not fall within the scope of the services covered by this Directive.

(9)  In order to facilitate the clearance of rights for the provision of ancillary online services across borders, it is necessary to provide for the establishment of the country of origin principle as regards the exercise of copyright and related rights relevant for acts that occur in the course of the provision of, the access to or the use of an ancillary online service. That principle should cover the clearance of all rights that are necessary for a broadcasting organisation to be able to communicate to the public or make available to the public its programmes when providing ancillary online services, including the clearance of any copyright and related rights in the works or other protected subject matter used in the programmes, for example the rights in phonograms or performances. That country of origin principle should apply exclusively to the relationship between rightholders, or entities representing rightholders, such as collective management organisations, and broadcasting organisations, and solely for the purpose of the provision of, the access to or the use of an ancillary online service. The country of origin principle should not apply to any subsequent communication to the public of works or other protected subject matter, by wire or wireless means, or to any subsequent making available to the public of works or other protected subject matter, by wire or wireless means, in such a way that members of the public may access them from a place and at a time individually chosen by them, or to any subsequent reproduction of the works or other protected subject matter which are contained in the ancillary online service.

(10)  Given the specificities of the financing and licensing mechanisms for certain audiovisual works, which are often based on exclusive territorial licensing, it is appropriate, as regards television programmes, to limit the scope of application of the country of origin principle set out in this Directive to certain types of programmes. Those types of programmes should include news and current affairs programmes as well as a broadcasting organisation's own productions which are exclusively financed by it, including where the funds for the financing used by the broadcasting organisation for its productions come from public funds. For the purposes of this Directive, broadcasting organisations' own productions should be understood as covering productions carried out by a broadcasting organisation with the use of its own resources, but excluding productions commissioned by the broadcasting organisation to producers that are independent from the broadcasting organisation and co-productions. For the same reasons, the country of origin principle should not apply to television broadcasts of sports events under this Directive. The country of origin principle should apply only when programmes are used by the broadcasting organisation in its own ancillary online services. It should not apply to the licensing of a broadcasting organisation’s own productions to third parties, including to other broadcasting organisations. The country of origin principle should not affect the freedom of rightholders and broadcasting organisations to agree, in compliance with Union law, on limitations, including territorial limitations, to the exploitation of their rights.

(11)  The country of origin principle set out in this Directive should not result in any obligation for broadcasting organisations to communicate or make available to the public programmes in their ancillary online services, or to provide such ancillary online services in a Member State other than the Member State of their principal establishment.

(12)  Since the provision of, the access to or the use of an ancillary online service is, under this Directive, deemed to occur solely in the Member State in which the broadcasting organisation has its principal establishment, while, de facto, the ancillary online service can be provided across borders to other Member States, it is necessary to ensure that in setting the amount of the payment to be made for the rights in question, the parties ▌take into account all aspects of the ancillary online service, such as the features of the service, including the duration of the online availability of programmes included in the service, the audience, including the audience in the Member State in which the broadcasting organisation has its principal establishment and in other Member States in which the ancillary online service is accessed and used, and the language versions provided. It should nevertheless remain possible to use specific methods for calculating the amount of payment for the rights subject to the country of origin principle, such as methods based on the revenues of the broadcasting organisation generated by the online service, which are used, in particular, by radio broadcasting organisations.

(13)  On account of the principle of contractual freedom, it will remain possible to limit the exploitation of the rights affected by the country of origin principle set out in this Directive, provided that any such limitation is in compliance with Union law.

(14)  Operators of retransmission services can use different technologies when they retransmit simultaneously, in an unaltered and unabridged manner, for reception by the public, an initial transmission from another Member State of television or radio programmes ▌. The programme-carrying signals can be obtained by operators of retransmission services from broadcasting organisations, which themselves transmit those signals to the public, in different ways, for example by capturing the signals transmitted by the broadcasting organisations or receiving the signals directly from them through the technical process of direct injection. Such operators’ services can be offered on satellite, digital terrestrial, mobile or closed circuit IP-based and similar networks or through internet access services as defined in Regulation (EU) 2015/2120 of the European Parliament and of the Council(7). Operators of retransmission services using such technologies for their retransmissions should therefore be covered by this Directive and benefit from the mechanism that introduces mandatory collective management of rights. In order to ensure that there are sufficient safeguards against the unauthorised use of works and other protected subject matter, which is particularly important in the case of services that are paid for, retransmission services which are offered through internet access services should be included in the scope of this Directive only where those retransmission services are provided in an environment in which only authorised users can access the retransmissions and the level of content security provided is comparable to the level of security for content transmitted over managed networks, such as cable or closed circuit IP-based networks, in which content that is retransmitted is encrypted. Those requirements should be feasible and adequate.

(15)  To retransmit initial transmissions of television and radio programmes, operators of retransmission services have to obtain an authorisation from the holders of the exclusive right of communication to the public of works or other protected subject matter. In order to provide legal certainty to the operators of retransmission services ▌and to overcome disparities in national law regarding such retransmission services, rules similar to those that apply to cable retransmission as defined in Directive 93/83/EEC should apply. The rules under that Directive include the obligation to exercise the right to grant or refuse authorisation to an operator of a retransmission service through a collective management organisation. Under those rules, the right to grant or refuse authorisation as such remains intact, and only the exercise of that right is regulated to some extent. Rightholders should receive appropriate remuneration for the retransmission of their works and other protected subject matter. When determining reasonable licensing terms, including the license fee, for a retransmission in accordance with Directive 2014/26/EU of the European Parliament and of the Council(8), the economic value of the use of the rights in trade, including the value allocated to the means of retransmission, should, inter alia, be taken into account. This should be without prejudice to the collective exercise of the right to payment of a single equitable remuneration for performers and phonogram producers for the communication to the public of commercial phonograms as provided for in Article 8(2) of Directive 2006/115/EC, and to Directive 2014/26/EU, in particular its provisions concerning the rights of rightholders with regard to the choice of a collective management organisation.

(16)  This Directive should allow agreements concluded between a collective management organisation and operators of retransmission services for rights that are subject to mandatory collective management under this Directive to be extended to apply to the rights of rightholders who are not represented by that collective management organisation, without those rightholders being allowed to exclude their works or other subject matter from the application of that mechanism. In cases where there is more than one collective management organisation that manages the rights of the relevant category for its territory, it should be for the Member State, in respect of the territory of which the operator of a retransmission service seeks to clear the rights for a retransmission, to determine which collective management organisation or organisations have the right to grant or refuse the authorisation for a retransmission.

(17)  Any rights held by broadcasting organisations themselves in respect of their broadcasts, including rights in the content of programmes, should not be subject to the mandatory collective management of rights applicable for retransmissions. Operators of retransmission services and broadcasting organisations generally have ongoing commercial relations, and as a result the identity of broadcasting organisations is known to operators of retransmission services. Accordingly, it is comparatively simple for those operators to clear the rights with broadcasting organisations. As a consequence, to obtain the necessary licences from broadcasting organisations, operators of retransmission services do not face the same burden as they face when seeking to obtain licences from holders of rights in works and other protected subject matter included in the television and radio programmes they retransmit. Therefore, there is no need for simplification of the licensing process with regard to rights held by broadcasting organisations. It is, however, necessary to ensure that where broadcasting organisations and operators of retransmission services enter into negotiations, they negotiate in good faith regarding the licensing of rights for the retransmissions covered by this Directive. Directive 2014/26/EU provides for similar rules applicable to collective management organisations.

(18)  The rules provided for in this Directive concerning the rights in retransmission exercised by broadcasting organisations in respect of their own transmissions should not limit the choice of rightholders to transfer their rights either to a broadcasting organisation or to a collective management organisation, thereby allowing them to have a direct share in the remuneration paid by the operator of a retransmission service.

(19)  Member States should be able to apply the rules on retransmission established in this Directive and in Directive 93/83/EEC to situations where both the initial transmission and the retransmission take place within their territory.

(20)  In order to ensure that there is legal certainty and to maintain a high level of protection for rightholders, it is appropriate to provide that when broadcasting organisations transmit their programme-carrying signals by direct injection only to signal distributors without directly transmitting their programmes to the public, and the signal distributors send those programme-carrying signals to their users to allow them to watch or listen to the programmes, only one single act of communication to the public is deemed to occur in which both the broadcasting organisations and the signal distributors participate with their respective contributions. The broadcasting organisations and the signal distributors should therefore obtain authorisation from the rightholders for their specific contribution to the single act of communication to the public. Participation of a broadcasting organisation and a signal distributor in that single act of communication to the public should not give rise to joint liability on the part of the broadcasting organisation and the signal distributor for that act of communication to the public. Member States should remain free to provide at national level for the arrangements for obtaining authorisation for such a single act of communication to the public, including the relevant payments to be made to the rightholders concerned, taking into account the respective exploitation of the works and other protected subject matter, by the broadcasting organisation and signal distributor, related to the single act of communication to the public. Signal distributors face, in a similar manner to operators of retransmission services, a significant burden for rights clearance, except as regards rights held by broadcasting organisations. Member States should therefore be allowed to provide that signal distributors benefit from a mechanism of mandatory collective management of rights for their transmissions in the same way and to the same extent as operators of retransmission services for retransmissions covered by Directive 93/83/EEC and this Directive. Where signal distributors merely provide broadcasting organisations with 'technical means', within the meaning of the case-law of the Court of Justice of the European Union, to ensure that the broadcast is received or to improve the reception of that broadcast, the signal distributors should not be considered to be participating in an act of communication to the public.

(21)  When broadcasting organisations transmit their programme-carrying signals directly to the public, thereby carrying out an initial act of transmission, and also simultaneously transmit those signals to other organisations through the technical process of direct injection, for example to ensure the quality of the signals for retransmission purposes, the transmissions by those other organisations constitute a separate act of communication to the public from the one carried out by the broadcasting organisation. In those situations, the rules on retransmissions laid down in this Directive and in Directive 93/83/EEC, as amended by this Directive, should apply.

(22)  To ensure the efficient collective management of rights and the accurate distribution of revenues collected under the mandatory collective management mechanism introduced by this Directive, it is important that collective management organisations maintain proper records of membership, licences and the use of works and other protected subject matter, in accordance with the transparency obligations set out in Directive 2014/26/EU.

(23)  In order to prevent circumvention of the application of the country of origin principle through the extension of the duration of existing agreements concerning the exercise of copyright and related rights relevant for the provision of an ancillary online service as well as the access to or the use of that service, it is necessary to apply the country of origin principle also to existing agreements, but with a transitional period. During that transitional period, the principle should not apply to those existing agreements, thus providing time to adapt them, where necessary, in accordance with this Directive. It is also necessary to provide for a transitional period in order to allow broadcasting organisations, signal distributors and rightholders to adapt to the new rules on the exploitation of works and other protected subject matter through direct injection set out in the provisions in this Directive on transmission of programmes through direct injection.

(24)   In line with the principles of better regulation, a review of this Directive, including its provisions on direct injection, should be undertaken after a certain period of time of this Directive being in force, in order to assess, inter alia, its benefits for Union consumers, its impact on the creative industries in the Union, and on the level of investment in new content, and hence also the benefits regarding improved cultural diversity in the Union.

(25)  This Directive respects the fundamental rights and observes the principles recognised in the Charter of Fundamental Rights of the European Union. While this Directive may result in an interference with the exercise of the rights of rightholders, insofar as mandatory collective management takes place for the exercise of the right of communication to the public with regard to retransmission services, it is necessary to prescribe the application of mandatory collective management in a targeted manner and to limit it to specific services.

(26)  Since the objectives of this Directive, namely promoting the cross-border provision of ancillary online services for certain types of programmes and facilitating retransmissions of television and radio programmes originating in other Member States, cannot be sufficiently achieved by Member States but can rather, by reason of the scale and effects, be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives. As concerns the cross-border provision of ancillary online services, this Directive does not oblige broadcasting organisations to provide such services across borders. Neither does this Directive oblige operators of retransmission services to include in their services television or radio programmes originating in other Member States. This Directive concerns only the exercise of certain retransmission rights to the extent necessary to simplify the licensing of copyright and related rights for such services and with regard to television and radio programmes originating in other Member States.

(27)  In accordance with the Joint Political Declaration of 28 September 2011 of Member States and the Commission on explanatory documents(9), Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified,

HAVE ADOPTED THIS DIRECTIVE:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter

This Directive lays down rules that aim to enhance cross-border access to a greater number of television and radio programmes, by facilitating the clearance of rights for the provision of online services that are ancillary to the broadcast of certain types of television and radio programmes, and for the retransmission of television and radio programmes. It also lays down rules for the transmission of television and radio programmes through the process of direct injection.

Article 2

Definitions

For the purpose of this Directive, the following definitions apply:

(1)  "ancillary online service" means an online service consisting in the provision to the public, by or under the control and responsibility of a broadcasting organisation, of television or radio programmes simultaneously with or for a defined period of time after their broadcast by the broadcasting organisation, as well as of any material ▌which is ancillary to such broadcast;

(2)  "retransmission" means any simultaneous, unaltered and unabridged retransmission, other than cable retransmission as defined in Directive 93/83/EEC ▌, intended for reception by the public, of an initial transmission from another Member State ▌ of television or radio programmes intended for reception by the public, where such ▌initial transmission is by wire or over the air including that by satellite, but is not by online transmission, provided that:

(a)  the retransmission is carried out by a party other than the broadcasting organisation which made the initial transmission or under whose control and responsibility that initial transmission was made, regardless of how the party carrying out the retransmission obtains the programme-carrying signals from the broadcasting organisation for the purpose of retransmission, and

(b)  where the retransmission is over an internet access service as defined in point (2) of the second paragraph of Article 2 of Regulation (EU) 2015/2120, it is carried out in a managed environment;

(3)  “managed environment” means an environment in which an operator of a retransmission service provides a secure retransmission to authorised users;

(4)  "direct injection” means a technical process by which a broadcasting organisation transmits its programme-carrying signals to an organisation other than a broadcasting organisation, in such a way that the programme-carrying signals are not accessible to the public during that transmission.

CHAPTER II

ANCILLARY ONLINE SERVICES OF BROADCASTING ORGANISATIONS

Article 3

Application of the country of origin principle to ancillary online services

1.  The acts of communication to the public of works or other protected subject matter, by wire or wireless means, and of making available to the public of works or other protected subject matter, by wire or wireless means, in such a way that members of the public may access them from a place and at a time individually chosen by them, occurring when providing to the public:

(a)  radio programmes, and

(b)  television programmes which are:

(i)  news and current affairs programmes, or

(ii)  fully financed own productions of the broadcasting organisation,

in an ancillary online service by or under the control and responsibility of a broadcasting organisation, as well as the acts of reproduction of such works or other protected subject matter which are necessary for the provision of, the access to or the use of such online service for the same programmes shall, for the purposes of exercising copyright and related rights relevant for those acts, be deemed to occur solely in the Member State in which the broadcasting organisation has its principal establishment.

Point (b) of the first subparagraph shall not apply to the broadcasts of sports events and works and other protected subject matter included in them.

2.  Member States shall ensure that, when setting the amount of the payment to be made for the rights to which the country of origin principle, as set out in paragraph 1, applies, the parties ▌take into account all aspects of the ancillary online service, such as ▌features of the service, including the duration of online availability of the programmes provided in that service, the audience, and the language versions provided.

The first subparagraph shall not preclude calculation of the amount of the payment on the basis of the broadcasting organisation's revenues.

3.  The country of origin principle set out in paragraph 1 shall be without prejudice to the contractual freedom of the rightholders and broadcasting organisations to agree, in compliance with Union law, to limit the exploitation of such rights, including those under Directive 2001/29/EC.

CHAPTER III

RETRANSMISSION OF TELEVISION AND RADIO PROGRAMMES

Article 4

Exercise of the rights in retransmission by rightholders other than broadcasting organisations

1.  Acts of retransmission of programmes have to be authorised by the holders of the exclusive right of communication to the public.

Member States shall ensure that rightholders may exercise their right to grant or refuse the authorisation for a retransmission only through a collective management organisation.

2.  Where a rightholder has not transferred the management of the right referred to in the second subparagraph of paragraph 1 to a collective management organisation, the collective management organisation which manages rights of the same category for the territory of the Member State for which the operator of a retransmission service seeks to clear rights for a retransmission shall be deemed to have the right to grant or refuse the authorisation for a retransmission for that rightholder.

However, where more than one collective management organisation manages rights of that category for the territory of that Member State, ▌it shall be for the Member State for the territory of which the operator of a retransmission service seeks to clear rights for a retransmission to decide which collective management organisation or organisations have the right to grant or refuse the authorisation for a retransmission.

3.  Member States shall ensure that a rightholder has the same rights and obligations resulting from an agreement between an operator of a retransmission service and a collective management organisation or organisations that act pursuant to paragraph 2, as rightholders who have mandated that collective management organisation or organisations. Member States shall also ensure that that rightholder is able to claim those rights within a period, to be fixed by the Member State concerned, which shall not be shorter than three years from the date of the retransmission which includes his or her work or other protected subject matter.

Article 5

Exercise of the rights in retransmission by broadcasting organisations

1.  Member States shall ensure that Article 4 does not apply to the rights in retransmission exercised by a broadcasting organisation in respect of its own transmission, irrespective of whether the rights concerned are its own or have been transferred to it by other rightholders.

2.  Member States shall provide that, where broadcasting organisations and the operators of retransmission services enter into negotiations regarding authorisation for retransmission under this Directive, those negotiations are to be conducted in good faith.

Article 6

Mediation

Member States shall ensure that it is possible to call upon the assistance of one or more mediators as provided for in Article 11 of Directive 93/83/EEC where no agreement is concluded between the collective management organisation and the operator of a retransmission service, or between the operator of a retransmission service and the broadcasting organisation regarding authorisation for retransmission of broadcasts.

Article 7

Retransmission of an initial transmission originating in the same Member State

Member States may provide that the rules in this Chapter and in Chapter III of Directive 93/83/EEC apply to situations where both the initial transmission and the retransmission take place within their territory.

CHAPTER IV

TRANSMISSION OF PROGRAMMES THROUGH DIRECT INJECTION

Article 8

Transmission of programmes through direct injection

1.  When a broadcasting organisation transmits by direct injection its programme-carrying signals to a signal distributor, without the broadcasting organisation itself simultaneously transmitting those programme-carrying signals directly to the public, and the signal distributor transmits those programme-carrying signals to the public, the broadcasting organisation and the signal distributor shall be deemed to be participating in a single act of communication to the public in respect of which they shall obtain authorisation from rightholders. Member States may provide for arrangements for obtaining authorisation from rightholders.

2.  Member States may provide that Articles 4, 5 and 6 of this Directive apply mutatis mutandis to the exercise by rightholders of the right to grant or refuse the authorisation to signal distributors for a transmission referred to in paragraph 1, carried out by one of the technical means referred to in Article 1(3) of Directive 93/83/EEC or point (2) of Article 2 of this Directive.

CHAPTER V

FINAL PROVISIONS

Article 9

Amendment to Directive 93/83/EEC

In Article 1 of Directive 93/83/EEC, paragraph 3 is replaced by the following:"

"3. For the purposes of this Directive, ‘cable retransmission’ means the simultaneous, unaltered and unabridged retransmission by a cable or microwave system for reception by the public of an initial transmission from another Member State, by wire or over the air, including that by satellite, of television or radio programmes intended for reception by the public, regardless of how the operator of a cable retransmission service obtains the programme-carrying signals from the broadcasting organisation for the purpose of retransmission.”.

"

Article 10

Review

1.  By … [6 years after the entry into force of this Directive], the Commission shall carry out a review of this Directive and present a report on the main findings to the European Parliament, the Council and the European Economic and Social Committee. The report shall be published and made available to the public on the website of the Commission.

2.  Member States shall provide the Commission, in a timely manner, with the relevant and necessary information for the preparation of the report referred to in paragraph 1.

Article 11

Transitional provision

Agreements on the exercise of copyright and related rights relevant for the acts of communication to the public of works or other protected subject matter, by wire or wireless means, and the making available to the public of works or other protected subject matter, by wire or wireless means, in such a way that members of the public may access them from a place and at a time individually chosen by them, occurring in the course of provision of an ancillary online service as well as for the acts of reproduction which are necessary for the provision of, the access to or the use of such online service which are in force on … [2 years after the entry into force of this Directive] shall be subject to Article 3 as from … [4 years after the entry into force of this Directive] if they expire after that date.

Authorisations obtained for the acts of communication to the public falling under Article 8 which are in force on … [2 years after the entry into force of this Directive] shall be subject to Article 8 as from … [6 years after the entry into force of this Directive] if they expire after that date.

Article 12

Transposition

1.  Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by … [2 years after the entry into force of this Directive]. They shall immediately inform the Commission thereof.

When Member States adopt those measures, they shall contain a reference to this Directive or shall be accompanied by such reference on the occasion of their official publication. The methods for making such reference shall be laid down by Member States.

2.  Member States shall communicate to the Commission the text of the measures of national law which they adopt in the field covered by this Directive.

Article 13

Entry into force

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

Article 14

Addressees

This Directive is addressed to the Member States.

Done at …,

For the European Parliament For the Council

The President The President

(1) OJ C 125, 21.4.2017, p. 27.
(2)OJ C 125, 21.4.2017, p. 27.
(3) Position of the European Parliament of 28 March 2019.
(4)Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001 on the harmonisation of certain aspects of copyright and related rights in the information society (OJ L 167, 22.6.2001, p. 10).
(5)Directive 2006/115/EC of the European Parliament and of the Council of 12 December 2006 on rental right and lending right and on certain rights related to copyright in the field of intellectual property (OJ L 376, 27.12.2006, p. 28).
(6)Council Directive 93/83/EEC of 27 September 1993 on the coordination of certain rules concerning copyright and rights related to copyright applicable to satellite broadcasting and cable retransmission (OJ L 248, 6.10.1993, p. 15).
(7) Regulation (EU) 2015/2120 of the European Parliament and of the Council of 25 November 2015 laying down measures concerning open internet access and amending Directive 2002/22/EC on universal service and users’ rights relating to electronic communications networks and services and Regulation (EU) No 531/2012 on roaming on public mobile communications networks within the Union (OJ L 310, 26.11.2015, p. 1).
(8)Directive 2014/26/EU of the European Parliament and of the Council of 26 February 2014 on collective management of copyright and related rights and multi-territorial licensing of rights in musical works for online use in the internal market (OJ L 84, 20.3.2014, p. 72).
(9) OJ C 369, 17.12.2011, p. 14.


Creative Europe programme 2021-2027 ***I
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European Parliament legislative resolution of 28 March 2019 on the proposal for a regulation of the European Parliament and of the Council establishing the Creative Europe programme (2021 to 2027) and repealing Regulation (EU) No 1295/2013 (COM(2018)0366 – C8-0237/2018 – 2018/0190(COD))
P8_TA-PROV(2019)0323A8-0156/2019

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0366),

–  having regard to Article 294(2) and Articles 167(5) and 173(3) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0237/2018),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the European Economic and Social Committee of 12 December 2018(1),

–  having regard to the opinion of the Committee of the Regions of 6 February 2019(2),

–  having regard to Rule 59 of its Rules of Procedure,

–  having regard to the report of the Committee on Culture and Education and the opinion of the Committee on Budgets (A8-0156/2019),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Text proposed by the Commission   Amendment
Amendment 1
Proposal for a regulation
Recital 1
(1)  Culture, cultural heritage and cultural diversity are of great value to European society from a cultural, environmental, social and economic point of view and should be promoted and supported. The Rome Declaration of 25 March 2017 as well as the European Council in December 2017 stated that education and culture are key to building inclusive and cohesive societies for all, and to sustaining European competitiveness.
(1)  Culture, arts cultural heritage, and cultural diversity are of great value to European society from a cultural, educational democratic, environmental, social, human rights and economic point of view and should be promoted and supported. The Rome Declaration of 25 March 2017 as well as the European Council in December 2017 stated that education and culture are key to building inclusive and cohesive societies for all, and to sustaining European competitiveness.
Amendment 2
Proposal for a regulation
Recital 2
(2)  According to Article 2 of the Treaty on European Union (TEU), the Union is founded on the values of respect for human dignity, freedom democracy, equality, the rule of law and the respect for human rights, including the rights of the persons belonging to minorities. These values are common to the Member States in a society where pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail. These values are further reaffirmed and articulated in the rights, freedoms and principles enshrined in the Charter of Fundamental Rights of the European Union, which has the same legal value as the Treaties, as referred to in Article 6 of the TEU.
(2)  According to Article 2 of the Treaty on European Union (TEU), the Union is founded on the values of respect for human dignity, freedom democracy, equality, the rule of law and the respect for human rights, including the rights of the persons belonging to minorities. These values are common to the Member States in a society where pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail. These values are further reaffirmed and articulated in the rights, freedoms and principles enshrined in the Charter of Fundamental Rights of the European Union (the Charter), which has the same legal value as the Treaties, as referred to in Article 6 of the TEU. In particular, the freedom of expression and information is enshrined in Article 11 of the Charter and the freedom of the arts and science is enshrined in Article 13 of the Charter.
Amendment 3
Proposal for a regulation
Recital 4
(4)  The Commission Communication on a New European Agenda for Culture15 further sets out the objectives of the Union for the cultural and creative sectors. It aims to harness the power of culture and cultural diversity for social cohesion and societal well-being, fostering the cross-border dimension of cultural and creative sectors, supporting their capacity to grow, encouraging culture-based creativity in education and innovation, and for jobs and growth as well as strengthening international cultural relations. Creative Europe, together with other Union programmes, should support the implementation of this New European Agenda for Culture. This is also in line with the 2005 UNESCO Convention for the Protection and Promotion of the Diversity of Cultural Expressions, which entered into force on 18 March 2007 and to which the Union is a party.
(4)  The Commission Communication on a New European Agenda for Culture15 further sets out the objectives of the Union for the cultural and creative sectors. It aims to harness the power of culture and cultural diversity for social cohesion, and societal well-being, fostering the cross-border dimension of cultural and creative sectors, supporting their capacity to grow, encouraging culture-based creativity in education and innovation, and for jobs and growth as well as strengthening international cultural relations. Creative Europe, together with other Union programmes, should support the implementation of this New European Agenda for Culture, taking into account the fact that the intrinsic value of culture and of artistic expression should always be preserved and promoted and that artistic creation is at the heart of cooperation projects. Supporting the implementation of this New European Agenda for Culture is also in line with the 2005 UNESCO Convention for the Protection and Promotion of the Diversity of Cultural Expressions, which entered into force on 18 March 2007 and to which the Union is a party.
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15 COM(2018)0267.
15 COM(2018)0267.
Amendment 4
Proposal for a regulation
Recital 4 a (new)
(4a)  Union policies will complement and add value to Member States’ intervention in the cultural and creative area. The impact of Union policies should be assessed on a regular basis taking account of qualitative and quantitative indicators such as the benefits for citizens, the active participation of citizens, the benefits for the Union economy in terms of growth and jobs and spill-overs in other sectors of the economy, and the skills and competences of people working in the cultural and creative sectors.
Amendment 5
Proposal for a regulation
Recital 4 b (new)
(4b)  The safeguarding and enhancement of Europe’s cultural heritage are objectives of the Programme. Those objectives have also been recognised as being inherent the right to knowledge of cultural heritage and to participate in cultural life enshrined in the Council of Europe Framework Convention on Cultural Heritage for Society (Faro Convention), which entered into force on 1 June 2011. That Convention underlines the role of cultural heritage in the construction of a peaceful and democratic society, and in the processes of sustainable development and the promotion of cultural diversity.
Amendment 6
Proposal for a regulation
Recital 5
(5)  The promotion of European cultural diversity depends on the existence of flourishing and resilient cultural and creative sectors, able to create, produce and distribute their works to a large and diverse European audience. This thereby enlarges their business potential and contributes to sustainable growth and jobs creation. In addition, promotion of creativity contributes to boosting competitiveness and sparkling innovation in the industrial value chains. In spite of recent progress, the European cultural and creative market continues to be fragmented along national and linguistic lines, which do not allow the cultural and creative sectors to fully benefit from the European single market and the digital single market in particular.
(5)  The promotion of European cultural diversity and of the awareness of common roots is based on the freedom of artistic expression, the capability and competences of artists and cultural operators, the existence of flourishing and resilient cultural and creative sectors in the public and private domain and their ability to create, innovate and produce their works and distribute them to a large and diverse European audience. This thereby enlarges their business potential, increases access to and the promotion of creative content, artistic research and creativity and contributes to sustainable growth, jobs creation. In addition, promotion of creativity and new knowledge contribute to boosting competitiveness and sparking innovation in the industrial value chains. A wider approach to arts and culture education and artistic research should be adopted, progressing from a STEM (Science, Technology, Engineering, Mathematics) approach to a STEAM (Science, Technology, Engineering, Arts, Mathematics) approach. In spite of recent progress, regarding assistance for translation and subtitling the European cultural and creative market continues to be fragmented along national and linguistic lines. While respecting the specificity of each market, more can be done to allow the cultural and creative sectors to fully benefit from the European single market and the digital single market in particular, including by taking into account intellectual property rights protection.
Amendment 7
Proposal for a regulation
Recital 5 a (new)
(5a)  The digital shift represents a paradigm change and is one of the biggest challenges for the cultural and creative sectors. Digital innovation has changed habits, relations and production and consumption models at both a personal and social level and it should boost cultural and creative expression and the cultural and creative narrative, respecting the specific value of the cultural and creative sectors within the digital environment.
Amendment 8
Proposal for a regulation
Recital 6
(6)  The Programme should take into account the dual nature of the cultural and creative sectors, recognising, on the one hand, the intrinsic and artistic value of culture and, on the other, the economic value of those sectors, including their broader contribution to growth and competitiveness, creativity and innovation. This requires strong European cultural and creative sectors, in particular a vibrant European audiovisual industry, taking into account its capacity to reach large audiences and its economic importance, including for other creative sectors as well as cultural tourism. However, competition in global audiovisual markets has been further intensified by the deepening digital disruption e.g. changes in media production, consumption and the growing position of global platforms in the distribution of content. Therefore, there is a need to step-up the support to the European industry.
(6)  The Programme should take into account the dual nature of the cultural and creative sectors, recognising, on the one hand, the intrinsic and artistic value of culture and, on the other, the economic value of those sectors, including their broader contribution to growth and competitiveness, creativity, innovation, intercultural dialogue, social cohesion and knowledge generation. This requires strong European cultural and creative sectors, both in the for-profit and not-for-profit domains in particular a vibrant European audiovisual industry, taking into account its capacity to reach large audiences at local, national and Union level and its economic importance, including for other creative sectors as well as cultural tourism and regional, local and urban development. However, competition in global audiovisual markets has been further intensified by the deepening digital disruption e.g. changes in media production, consumption and the growing position of global platforms in the distribution of content. Therefore, there is a need to step-up the support to the European industry.
Amendment 9
Proposal for a regulation
Recital 6 a (new)
(6a)  Active European citizenship, shared values, creativity and innovation need a solid ground on which they can develop. The Programme should support film and audiovisual education, in particular among minors and young people.
Amendment 10
Proposal for a regulation
Recital 7
(7)  To be effective, the Programme should take into account the specific nature of the different sectors, their different target groups and their particular needs through tailor-made approaches within a strand dedicated to the audiovisual sector, a strand dedicated to the other cultural and creative sectors and a cross-sectoral strand.
(7)  To be effective, the Programme should take into account the specific nature and challenges of the different sectors, their different target groups and their particular needs through tailor-made approaches within a strand dedicated to the audiovisual sector, a strand dedicated to the other cultural and creative sectors and a cross-sectoral strand. The Programme should provide equal support to all the cultural and creative sectors through horizontal schemes targeting common needs. Building on pilot projects, preparatory actions and studies, the Programme should also implement the sectoral actions listed in the Annex to this Regulation.
Amendment 11
Proposal for a regulation
Recital 7 a (new)
(7a)  Music, in all its forms and expressions, and in particular contemporary and live music, is an important component of the cultural, artistic and economic heritage of the Union. It is an element of social cohesion, multicultural integration and youth socialisation and it serves as a key instrument to enhance culture, including cultural tourism. The music sector should therefore be a particular focus of the specific actions pursued as part of the CULTURE strand under this Regulation in terms of financial distribution and targeted actions. Tailor-made calls and instruments should help boost the competitiveness of the music sector and address some of the specific challenges it faces.
Amendment 12
Proposal for a regulation
Recital 7 b (new)
(7b)  Union support needs to be reinforced in the field of international cultural relations. The Programme should seek to contribute to the third strategic objective of the new European Agenda for Culture by harnessing culture and intercultural dialogue as engines for sustainable social and economic development. In the Union and throughout the world, cities are driving new cultural policies. A large number of creative communities have gathered in hubs, incubators and dedicated spaces worldwide. The Union should be instrumental in networking those communities from the Union and third countries and in fostering multi-disciplinary collaboration across artistic, creative and digital skills.
Amendment 13
Proposal for a regulation
Recital 8
(8)  The cross-sectoral strand aims at exploiting the potential of collaboration among different cultural and creative sectors. There are benefits in terms of knowledge-transfer and administrative efficiencies to be gained from a joint transversal approach.
(8)  The cross-sectoral strand aims at addressing the common challenges faced by, and at exploiting the potential of collaboration among, different cultural and creative sectors. There are benefits in terms of knowledge-transfer and administrative efficiencies to be gained from a joint transversal approach.
Amendment 14
Proposal for a regulation
Recital 9
(9)  Union intervention is needed in the audiovisual sector to accompany the Union’s Digital Single Market policies. This concerns notably the modernisation of the copyright framework and the proposed Regulation on online transmissions of broadcasting organisations16 , as well as the proposal to amend Directive 2010/13/EU of the European Parliament and of the Council17 . They seek to strengthen the capacity of European audiovisual players to finance, produce and disseminate works that can be sufficiently visible on the different media of communication available (e.g. TV, cinema or Video On Demand) and attractive to audiences in a more open and competitive market within Europe and beyond. Support should be scaled up in order to address recent market developments and notably the stronger position of global platforms of distribution in comparison to national broadcasters traditionally investing in the production of European works.
(9)  Union intervention is needed in the audiovisual sector to accompany the Union’s Digital Single Market policies. This concerns notably the modernisation of the copyright framework, the proposed Regulation on online transmissions of broadcasting organisations16 and Directive (EU) 2018/1808 of the European Parliament and of the Council17. They seek to strengthen the capacity of European audiovisual players to create, finance, produce and disseminate works of various formats on the different media of communication available (e.g. TV, cinema or Video On Demand) and attractive to audiences in a more open and competitive market within Europe and beyond. Support should be scaled up in order to address recent market developments and notably the stronger position of global platforms of distribution in comparison to national broadcasters traditionally investing in the production of European works.
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16 COM(2016)0594
16 COM(2016)0594
17 COM/2016/0287
17 Directive (EU) 2018/1808 of the European Parliament and of the Council of 14 November 2018 amending Directive 2010/13/EU on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive) in view of changing market realities (OJ L 303, 28.11.2018, p. 69).
Amendment 15
Proposal for a regulation
Recital 10
(10)  The special actions under Creative Europe such as the European Heritage Label, the European Heritage Days, the European prizes in the areas of contemporary, rock and pop music, literature, heritage and architecture and the European Capitals of Culture have directly reached millions of European citizens, have demonstrated the social and economic benefits of European cultural policies, and should therefore be continued and whenever possible expanded.
(10)  The special actions under Creative Europe such as the European Heritage Label, the European Heritage Days, the European prizes in the areas of contemporary, rock and pop music, literature, heritage and architecture and the European Capitals of Culture have directly reached millions of European citizens, have demonstrated the social and economic benefits of European cultural policies, and should therefore be continued and whenever possible expanded. The Programme should support the networking activities of the European Heritage Label sites.
Amendment 16
Proposal for a regulation
Recital 10 a (new)
(10a)  The Creative Europe Programme under Regulation (EU) No 1295/2013 has sparked the creation of innovative and successful projects that generated good practices in terms of transnational European cooperation in the creative and cultural sectors. In turn, this has increased European cultural diversity for audiences and leveraged the social and economic benefits of European cultural policies. To be more efficient, such success stories should be highlighted and, wherever possible, expanded.
Amendment 17
Proposal for a regulation
Recital 10 b (new)
(10b)  All levels of actors in the cultural and creative sectors should be actively involved in the achievement of the Programme objectives and its further development. As the experience of the formal engagement of stakeholders in the participatory governance model of the European Year of Cultural Heritage, established by Decision (EU) 2017/864 of the European Parliament and of the Council1a, proved to be efficient in mainstreaming culture, it is advisable to apply this model to the Programme as well. This participatory governance model should include a transversal approach with a view to creating synergies between the various Union programmes and initiatives in the field of culture and creativity.
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1a Decision (EU) 2017/864 of the European Parliament and of the Council of 17 May 2017 on a European Year of Cultural Heritage (2018) (OJ L 131, 20.5.2017, p. 1).
Amendment 18
Proposal for a regulation
Recital 10 c (new)
(10c)  A flagship cross-sectoral action aiming at showcasing European creativity and cultural diversity to the Member States and third countries should be included as part of the special actions under the Programme. That action should emphasise the excellence of European culture-based creativity in triggering cross-innovation in the wider economy by awarding a special prize.
Amendment 19
Proposal for a regulation
Recital 11
(11)  Culture is key to strengthen inclusive and cohesive communities. In the context of migration pressure, culture has an important role in the integration of migrants to help them feel part of host societies and develop good relations between migrants and new communities.
(11)  Culture is key to strengthening inclusive, cohesive and reflective communities, to revitalising territories and to promoting social inclusion for people with a disadvantaged background. In the context of migration issues and integration challenges, culture plays a fundamental role in creating inclusive spaces for intercultural dialogue and in the integration of migrants and refugees, helping them to feel part of host societies, and in the development of good relations between migrants and new communities.
Amendment 20
Proposal for a regulation
Recital 11 a (new)
(11a)  Culture provides for and fosters economic, social and environmental sustainability. It should therefore be at the heart of political development strategies. The contribution of culture to the well-being of society as a whole should be highlighted. In accordance with the Davos Declaration of 22 January 2018 entitled "Towards a high-quality Baukultur for Europe", steps should therefore be taken to promote a new integrated approach to the shaping of the high quality built environment which is anchored in culture, strengthens social cohesion, guarantees a sustainable environment and contributes to the health and well-being of the population as a whole. That approach should not place an emphasis on urban areas only, but should primarily focus on the interconnectivity of peripheral, remote and rural areas. The concept of Baukultur encompasses all factors which have a direct impact on the quality of life of citizens and communities, thereby fostering inclusivity, cohesion and sustainability in a very concrete way.
Amendment 21
Proposal for a regulation
Recital 11 b (new)
(11b)  It is a matter of priority that culture, including cultural and audiovisual goods and services, be made more accessible to persons with disabilities as tools to foster their complete personal fulfilment and active participation, thereby contributing to a truly inclusive society based on solidarity. The Programme should therefore promote and increase cultural participation across the Union, in particular with regard to people with disabilities and people from disadvantaged backgrounds as well as people who reside in rural and remote areas.
Amendment 22
Proposal for a regulation
Recital 12
(12)  Artistic freedom is at the core of vibrant cultural and creative industries, including the news media sector. The programme should promote cross-overs and collaboration between the audiovisual sector and the publishing sector to promote a pluralistic media environment.
(12)  Freedom of artistic and cultural expression, freedom of expression and media pluralism are at the core of vibrant cultural and creative sectors and the news media sector. The Programme should promote crossovers and collaboration between the audiovisual sector and the publishing sector with the aim of promoting a pluralistic and independent media environment in line with Directive 2010/13/EU of the European Parliament and of the Council1a. The Programme should provide support for new media professionals and enhance the development of critical thinking among citizens by means of promoting media literacy, in particular for young people.
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1a Directive 2010/13/EU of the European Parliament and of the Council of 10 March 2010 on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive) (JO L 95, 15.4.2010, p. 1).
Amendment 23
Proposal for a regulation
Recital 12 a (new)
(12a)  The mobility of artists and cultural workers as regards skills development, learning, intercultural awareness, co-creation, co-production, circulation and dissemination of artworks and participation in international events such as fairs and festivals is a key prerequisite for a better linked, stronger and more sustainable cultural and creative sectors in the Union. Such mobility is often hampered by the lack of legal status, difficulties in obtaining visas and the duration of permits, the risk of double taxation and precarious and unstable social security conditions.
Amendment 24
Proposal for a regulation
Recital 13
(13)  In line with Articles 8 and 10 of the Treaty on the Functioning of the European Union (TFEU), the Programme in all its activities should support gender mainstreaming and the mainstreaming of non-discrimination objectives and, where applicable, should define appropriate gender balance criteria.
(13)  In line with Articles 8 and 10 of the Treaty on the Functioning of the European Union (TFEU), the Programme in all its activities should support gender mainstreaming and the mainstreaming of non-discrimination objectives and, where applicable, should define appropriate gender balance and diversity criteria. The Programme should seek to ensure that participation in the Programme and projects carried out under the Programme reach and reflect the diversity of European society. The activities carried out under the Programme should be monitored and reported upon in order to ascertain the performance of the Programme in that respect and enable policy makers to make better-informed decisions as regards future programmes.
Amendment 25
Proposal for a regulation
Recital 13 a (new)
(13a)  Women are very present in the artistic and cultural field in the Union as authors, professionals, teachers, and as an audience with a growing access of the cultural public. However, as evidenced by research and studies such as the European Women’s Audiovisual Network for film directors and by the We Must project in the music field, there are gender pay disparities and it is less likely for women to realise their works and occupy decision-making positions in cultural, artistic and creative institutions. Therefore, it is necessary to promote female talents and to circulate their works in order to support women's artistic careers.
Amendment 26
Proposal for a regulation
Recital 14 a (new)
(14a)  In line with the conclusions drawn following the European Year of Cultural Heritage 2018, the Programme should enhance the cooperation and advocacy capacity of the sector through support for activities related to the legacy of the European Year of Cultural Heritage 2018 and taking stock of it. In that connection, attention should be drawn to the statement issued by the Council of Culture Ministers in November 2018 and the statements made at the closing ceremony of the Council held on 7 December 2018. The Programme should contribute to the long-term sustainable preservation of European cultural heritage through support actions for the artisans and craftspeople skilled in the traditional trades related to cultural heritage restoration.
Amendment 27
Proposal for a regulation
Recital 15
(15)  In line with the Commission Communication "Towards an integrated approach to cultural heritage for Europe" of 22 July 201419 , relevant policies and instruments should draw out the long term and sustainability value of Europe's cultural heritage and develop a more integrated approach to its preservation and valorisation and support.
(15)  In line with the Commission Communication "Towards an integrated approach to cultural heritage for Europe" of 22 July 2014, relevant policies and instruments should draw out the long term and sustainability value of Europe's past, present, tangible, intangible and digital cultural heritage, and develop a more integrated approach to its preservation, conservation, adaptive re-use, dissemination, valorisation and support by supporting a high quality and coordinated sharing of professional knowledge and the development of common high quality standards for the sector and mobility for sector professionals. Cultural heritage is an integral part of European cohesion and supports the link between tradition and innovation. Preserving cultural heritage and supporting artists, creators and craftsmanship should be a priority of the Programme.
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19 COM/2014/0477
19 COM/2014/0477
Amendment 28
Proposal for a regulation
Recital 15 a (new)
(15a)  The Programme should contribute to the engagement and involvement of citizens and civil society organisations in culture and society, to the promotion of cultural education and to making cultural knowledge and heritage publicly accessible. The Programme should also nurture quality and innovation in creation and conservation, including through synergies among culture, arts, science, research and technology.
Amendment 29
Proposal for a regulation
Recital 16 a (new)
(16a)  In line with the European Parliament resolution of 13 December 2016 on a coherent EU policy for cultural and creative industries, supporting cultural and creative sectors should be a cross-cutting issue. Projects should be integrated throughout the Programme in order to support new business models and skills, traditional savoir-faire as well as translating creative and interdisciplinary solutions into economic and social value. Furthermore, potential synergies that exist between Union policies should be fully exploited so as to effectively use the funding available under Union programmes such as Horizon Europe, the Connecting Europe Facility, Erasmus +, EaSI and InvestEU.
Amendment 30
Proposal for a regulation
Recital 18
(18)  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 authorizing officer responsible, the European Anti-Fraud Office (OLAF) as well as the European Court of Auditors to comprehensively exert their respective competences.
(18)  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 authorizing officer responsible, the European Anti-Fraud Office (OLAF) as well as the European Court of Auditors to comprehensively exert their respective competences. The contributions of third countries to the Programme should be reported on an annual basis to the budgetary authority.
Amendment 31
Proposal for a regulation
Recital 22
(22)  Since its creation, the European Film Academy has developed a unique expertise and is in a unique position to create a pan-European community of film creators and professionals, promoting and disseminating European films beyond their national borders and developing truly European audiences. Therefore, it should be eligible for direct Union support.
(22)  Since its creation, the European Film Academy has contributed, by means of its special expertise and unique position, to the development of a pan-European community of film creators and professionals, promoting and disseminating European films beyond their national borders and fostering the emergence of an international audience of all ages. Therefore, it should exceptionally be eligible for direct Union support in the context of its cooperation with the European Parliament in organising the LUX Film Prize. However, the direct support must be linked to the negotiation of a cooperation agreement, with specific missions and objectives, between the two parties and it should only be possible to provide the direct support once that agreement has been concluded. This does not preclude the European Film Academy from applying for funding for other initiatives and projects under the different strands of the Programme.
Amendment 32
Proposal for a regulation
Recital 23
(23)  Since its creation, the European Union Youth Orchestra has developed a unique expertise in promoting intercultural dialogue, mutual respect and understanding through culture. The particularity of the European Union Youth Orchestra lies in the fact that it is a European orchestra that transcends cultural boundaries and is composed of young musicians selected in accordance with demanding artistic criteria through a rigorous annual audition process in all Member States. Therefore, it should be eligible for direct Union support.
(23)  Since its creation, the European Union Youth Orchestra has developed a unique expertise in promoting rich European musical heritage, access to music and intercultural dialogue, and mutual respect and understanding through culture, as well as in reinforcing the professionalism of young musicians, providing them with the skills necessary for a career in the cultural and creative sector. Member States and Union institutions, including successive Presidents of the Commission and of the European Parliament, have recognised the contribution of the European Union Orchestra. The particularity of the European Union Youth Orchestra lies in the fact that it is a European orchestra that transcends cultural boundaries and is composed of young musicians selected in accordance with demanding artistic criteria through a rigorous and transparent annual audition process in all Member States. Therefore, it should exceptionally be eligible for direct Union support on the basis of specific missions and objectives to be established and assessed regularly by the Commission. In order to secure that support, the European Union Youth Orchestra should increase its visibility, strive to achieve a more balanced representation of musicians from all Member States within the orchestra and diversify its revenues by actively seeking financial support from sources other than Union funding.
Amendment 33
Proposal for a regulation
Recital 26
(26)  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. Actions should have a clear European added value.
(26)  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. Actions should have a clear European added value and be suitable for the specific projects they support. The Programme should not only take into consideration the economic value of the projects but also their cultural and creative dimension and the specificity of the sectors concerned.
Amendment 34
Proposal for a regulation
Recital 26 a (new)
(26a)  Funding from the programmes established by Regulation …/…[Neighbourhood Development and International Cooperation Instrument1aand Regulation …/… [IPA III]1b should also be used to finance actions under the international dimension of the Programme. Those actions should be implemented in accordance with this Regulation.
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1a 2018/0243 (COD).
1b 2018/0247 (COD).
Amendment 35
Proposal for a regulation
Recital 27
(27)  One of the greatest challenges of the cultural and creative sectors is their access to finance allowing their activities to grow maintain or increase their competitiveness or internationalise their activities. The policy objectives of this Programme should also be addressed through financial instruments and budgetary guarantee under the policy window(s) of the Invest EU Fund.
(27)  The cultural and creative sectors are innovative, resilient and growing sectors in the Union economy, which generate economic and cultural value from intellectual property and individual creativity. However, their fragmentation and the intangible nature of their assets limits their access to private financing. One of the greatest challenges for the cultural and creative sectors is to increase their access to finance, which is essential to grow, maintain or scale-up their competitiveness at the international level. The policy objectives of this Programme should also be addressed, through financial instruments and budgetary guarantee, especially for SMEs, under the policy window(s) of the Invest EU Fund in line with the practices developed in the framework of the Cultural and Creative Sectors Guarantee Facility set up by Regulation (EU) No 1295/2013.
Amendment 36
Proposal for a regulation
Recital 28
(28)  Taking into account the technical expertise required to assess proposals under specific actions of the Programme it should be provided that, where relevant, evaluation committees may be composed of external experts.
(28)  Impact, quality and efficiency in implementation of the Project should constitute key evaluation criteria for the selection of the project in question. Taking into account the technical expertise required to assess proposals under specific actions of the Programme it should be provided that, where relevant, evaluation committees may be composed of external experts who should have a professional and management background related to the field of the application being evaluated. Where relevant, the need to ensure the overall coherence with the objectives of audience inclusion and diversity should be taken into account.
Amendment 37
Proposal for a regulation
Recital 29
(29)  The Programme should include a realistic and manageable system of performance indicators to accompany its actions and monitor its performance on a continuous basis. This monitoring as well as information and communication actions relating to the Programme and its actions should build on the three strands of the programme.
(29)  The Programme should include a realistic and manageable system of quantitative and qualitative performance indicators to accompany its actions and monitor its performance on a continuous basis, taking into account the intrinsic value of the art and cultural and creative sectors. Such performance indicators should be developed with stakeholders. This monitoring as well as information and communication actions relating to the Programme and its actions should build on the three strands of the programme. The strands should take into account one or more quantitative and qualitative indicators. Those indicators should be assessed in accordance with this Regulation.
Amendment 38
Proposal for a regulation
Recital 29 a (new)
(29a)  Considering the complexity and difficulty of finding, analysing and adapting data and of measuring the impact of cultural policies and defining indicators, the Commission should reinforce the cooperation within its services such as the Joint Research Centre and Eurostat with the purpose of gathering appropriate statistical data. The Commission should act in cooperation with centres of excellence in the Union, national statistical institutes and organisations relevant to the cultural and creative sectors in Europe and in collaboration with the Council of Europe, the Organisation for Economic Co-operation and Development (OECD) and Unesco.
Amendment 39
Proposal for a regulation
Recital 32
(32)  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 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.
(32)  The types of financing and the methods of implementation under this Regulation should be chosen on the basis of the project operator's ability to achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the size of the operator and the project, 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.
Amendment 40
Proposal for a regulation
Recital 33 a (new)
(33a)  In order to optimise synergies between Union funds and directly managed instruments, the provision of support for operations that have already received a Seal of Excellence certification should be facilitated.
Amendment 41
Proposal for a regulation
Recital 34
(34)  Pursuant to Article 94 of Council Decision 2013/755/EU28, 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.
(34)  Pursuant to Article 94 of Council Decision 2013/755/EU28, 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. The constraints imposed by the remoteness of those countries or territories should be taken into account when implementing the Programme, and their effective participation should be monitored and regularly evaluated.
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28 Council Decision 2013/755/EU of 25 November 2013 on the association of the overseas countries and territories with the European Union (Overseas Association Decision) (OJ L 344, 19.12.2013, p. 1).
28 Council Decision 2013/755/EU of 25 November 2013 on the association of the overseas countries and territories with the European Union (Overseas Association Decision) (OJ L 344, 19.12.2013, p. 1).
Amendment 42
Proposal for a regulation
Recital 34 a (new)
(34a)  In accordance with Article 349 TFEU, measures should be taken to increase the outermost regions' participation in all actions. Mobility exchanges for their artists and their works, and cooperation between people and organisations from those regions and their neighbours and third countries should be fostered. It will thus be possible for the people to benefit equally from the competitive advantages that the cultural and creative industries can offer, in particular economic growth and employment. Such measures should be monitored and evaluated regularly.
Amendment 43
Proposal for a regulation
Recital 36
(36)  In order to ensure smooth implementation of the Programme, the costs incurred by the beneficiary before the grant application is submitted, in particular costs related to intellectual property rights, may be considered as eligible, provided that they are directly linked to the implementation of the supported actions.
(36)  In order to ensure the continuity of funding support provided under the Programme and to cover the increasing funding gaps experienced by beneficiaries, the costs incurred by the beneficiary before the grant application is submitted, in particular costs related to intellectual property rights, should be considered as eligible, provided that they are directly linked to the implementation of the supported actions.
Amendment 44
Proposal for a regulation
Recital 38
(38)  In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission to adopt the work programmes. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council. It is necessary to ensure the correct closure of the predecessor programme, in particular as regards the continuation of multi-annual arrangements for its management, such as the financing of technical and administrative assistance. As from [1 January 2021], the technical and administrative assistance should ensure, if necessary, the management of actions that have not yet been finalised under the predecessor programme by [31 December 2020].
(38)  The power to adopt acts in accordance with Article 290 of the TFEU should be delegated to the Commission in respect of adopting work programmes. It is necessary to ensure the correct closure of the predecessor programme, in particular as regards the continuation of multi-annual arrangements for its management, such as the financing of technical and administrative assistance. As from [1 January 2021], the technical and administrative assistance should ensure, if necessary, the management of actions that have not yet been finalised under the predecessor programme by [31 December 2020].
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Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).
Amendment 45
Proposal for a regulation
Recital 38 a (new)
(38a)  In order to ensure an effective and efficient implementation of the Programme, the Commission should ensure that there is no unnecessary bureaucratic burden on the applicants during the application stage or during the processing stage of the applications.
Amendment 46
Proposal for a regulation
Recital 38 b
(38b)  Particular attention should be paid to small-scale projects and their added value, given the specificities of the cultural and creative sectors.
Amendment 47
Proposal for a regulation
Article 2 – paragraph 1 – point 2
(2)  'cultural and creative sectors' means all sectors whose activities are based on cultural values or artistic and other individual or collective creative expressions. The activities may include the development, the creation, the production, the dissemination and the preservation of goods and services which embody cultural, artistic or other creative expressions, as well as related functions such as education or management. They will have a potential to generate innovation and jobs in particular from intellectual property. The sectors include architecture, archives, libraries and museums, artistic crafts, audiovisual (including film, television, video games and multimedia), tangible and intangible cultural heritage, design (including fashion design), festivals, music, literature, performing arts, books and publishing, radio, and visual arts;
(2)  'cultural and creative sectors' means all sectors whose activities are based on cultural values or artistic and other individual or collective creative expressions, and practices, whether those activities are market or non-market oriented. The activities may include the development, the creation, the production, the dissemination and the preservation of practices, goods and services which embody cultural, artistic or other creative expressions, as well as related functions such as education or management. Many of those have a potential to generate innovation and jobs in particular from intellectual property. The sectors include architecture, archives, libraries and museums, artistic, crafts, audiovisual (including film, television, video games and multimedia), tangible and intangible cultural heritage, music, literature, performing arts, books and publishing, radio, visual arts, festivals, and design, including fashion design;
Amendment 48
Proposal for a regulation
Article 3 – paragraph 1 – point -a (new)
(-a)  to contribute to the recognition and promotion of the intrinsic value of culture and to safeguard and promote the quality of European culture and creativity as a distinctive dimension of personal development, education, social cohesion, freedom of expression and opinion, and the arts, strengthening and enhancing democracy, critical thinking, the sense of belonging and citizenship and as sources for a pluralistic media and cultural landscape;
Amendment 49
Proposal for a regulation
Article 3 – paragraph 1 – point a
(a)  to promote European cooperation on cultural and linguistic diversity and heritage;
(a)  to promote European cooperation on cultural, artistic and linguistic diversity, including through enhancing the role of artists and cultural operators, the quality of European cultural and artistic production, and of the common tangible and intangible European cultural heritage;
Amendment 50
Proposal for a regulation
Article 3 – paragraph 1 – point b
(b)  to increase the competitiveness of the cultural and creative sectors, in particular the audiovisual sector.
(b)  to foster the competitiveness of all cultural and creative sectors and to increase their economic weight, in particular the audiovisual sector, by means of job creation in, and of increasing innovation, creativity of, those sectors.
Amendment 51
Proposal for a regulation
Article 3 – paragraph 2 – point a
(a)  enhancing the economic, social and external dimension of European level cooperation to develop and promote European cultural diversity and Europe's cultural heritage and strengthening the competitiveness of the European cultural and creative sectors and reinforcing international cultural relations;
(a)  enhancing the economic artistic, cultural social and external dimension of European level cooperation to develop and promote European cultural diversity and Europe's cultural tangible and intangible heritage, strengthening the competitiveness and innovation of the European cultural and creative sectors and reinforcing international cultural relations;
Amendment 52
Proposal for a regulation
Article 3 – paragraph 2 – point a a (new)
(aa)  promoting the cultural and creative sectors, including the audiovisual sector, supporting artists, operators, craftspeople and audience engagement with a particular focus on gender equality and underrepresented groups;
Amendment 53
Proposal for a regulation
Article 3 – paragraph 2 – point b
(b)  promoting the competitiveness and scalability of the European audiovisual industry;
(b)  promoting competitiveness, innovation, and scalability of the European audiovisual sector, in particular of SMEs, independent production companies and organisations in the cultural and creative sectors and promoting the quality of the activities of the European audiovisual sector in a sustainable way aiming at a balanced sectoral and geographical approach;
Amendment 54
Proposal for a regulation
Article 3 – paragraph 2 – point c
(c)  promoting policy cooperation and innovative actions supporting all strands of the programme, including the promotion of a diverse and pluralistic media environment, media literacy and social inclusion.
(c)  promoting policy cooperation and innovative actions, including new business and management models and creative solutions, supporting all strands of the programme and all cultural and creative sectors, including safeguarding the freedom of artistic expression and the promotion of a diverse, independent and pluralistic, cultural and media environments, media literacy, digital skills, cultural and artistic education, gender equality, active citizenship, intercultural dialogue, resilience and social inclusion, in particular of persons with disabilities, including through greater accessibility of cultural goods and services;
Amendment 55
Proposal for a regulation
Article 3 – paragraph 2 – point c a (new)
(ca)  promoting the mobility of artists and the cultural and creative sectors’ operators and the circulation of their works;
Amendment 56
Proposal for a regulation
Article 3 – paragraph 2 – point c b (new)
(cb)  providing the cultural and creative sectors with data, analyses and an adequate set of qualitative and quantitative indicators and developing a coherent system of evaluations and impact assessments, including those with a cross-sectoral dimension.
Amendment 57
Proposal for a regulation
Article 3 – paragraph 3 – point c
(c)  "CROSS SECTORAL strand" covers activities across all cultural and creative sectors.
(c)  "CROSS SECTORAL strand" covers activities across all cultural and creative sectors, including the news media sector.
Amendment 58
Proposal for a regulation
Article 3 a (new)
Article 3 a
European added value
Recognising the intrinsic and economic value of culture and creativity and respecting the quality and plurality of Union values and policies.
The Programme shall support only those actions and activities which deliver potential European added value and which contribute to the achievement of the objectives referred to in Article 3.
The European added value of the actions and activities of the Programme shall be ensured, for example, through:
(a)  the transnational character of actions and activities which complement regional, national, international and other Union programmes and policies, and the impact of such actions and activities on citizens’ access to culture, the active engagement of citizens, education, social inclusion and intercultural dialogue;
(b)  the development and promotion of transnational and international cooperation between cultural and creative players, including artists, audiovisual professionals, cultural and creative organisations and SMEs and audiovisual operators, that are focused on stimulating more comprehensive, rapid, effective and long-term responses to global challenges, in particular to the digital shift;
(c)  the economies of scale and growth and jobs which Union support fosters, creating a leverage effect for additional funds;
(d)  ensuring a more level playing field in the cultural and creative sectors by taking account of the specificities of different countries, including countries or regions with a particular geographical or linguistic situation, such as the outermost regions recognised in Article 349 TFEU and the overseas countries or territories coming under the authority of a Member State listed in Annex II of the TFEU;
(e)  promoting a narrative on European common roots and diversity.
Amendment 59
Proposal for a regulation
Article 4 – paragraph 1 – point -a (new)
(-a)  to promote artistic expression and creation;
Amendment 60
Proposal for a regulation
Article 4 – paragraph 1 – point -a a (new)
(-aa)  to nurture talents, competence and skills and to stimulate collaboration and innovation through the whole chain of the cultural and creative sectors, including heritage;
Amendment 61
Proposal for a regulation
Article 4 – paragraph 1 – point a
(a)  to strengthen the cross-border dimension and circulation of European cultural and creative operators and works;
(a)  to strengthen the cross-border dimension, circulation and visibility of European cultural and creative operators and their works including through residency programmes, touring, events, workshops, exhibitions and festivals, as well as facilitating the exchange of best practices and enhancing professional capacities;
Amendment 62
Proposal for a regulation
Article 4 – paragraph 1 – point b
(b)  to increase cultural participation across Europe;
(b)  to increase cultural access, participation and awareness, and audience engagement across Europe, especially with regard to people with disabilities or people from disadvantaged backgrounds;
Amendment 63
Proposal for a regulation
Article 4 – paragraph 1 – point c
(c)  to promote societal resilience and social inclusion through culture and cultural heritage;
(c)  to promote societal resilience and to enhance social inclusion, intercultural and democratic dialogue and cultural exchange through arts, culture and cultural heritage;
Amendment 64
Proposal for a regulation
Article 4 – paragraph 1 – point d
(d)  to enhance the capacity of European cultural and creative sectors to prosper and to generate jobs and growth;
(d)  to enhance the capacity of European cultural and creative sectors to prosper and innovate, to create artistic works, to generate and to develop key competences, knowledge, skills, new artistic practices and sustainable jobs and growth and to contribute to local and regional development;
Amendment 65
Proposal for a regulation
Article 4 – paragraph 1 – point d a (new)
(da)  to foster the professional capacity of persons in the cultural and creative sectors, empowering them through appropriate measures;
Amendment 66
Proposal for a regulation
Article 4 – paragraph 1 – point e
(e)  to strengthen European identity and values through cultural awareness, arts education and culture-based creativity in education;
(e)  to strengthen European identity, active citizenship and the sense of community and democratic values through cultural awareness, cultural heritage, expression, critical thinking, artistic expression, visibility and recognition of creators, arts, education and culture-based creativity in formal, non-formal and informal lifelong learning;
Amendment 67
Proposal for a regulation
Article 4 – paragraph 1 – point f
(f)  to promote international capacity building of European cultural and creative sectors to be active at the international level;
(f)  to promote international capacity building of European cultural and creative sectors, including grass-roots and micro-organisations, to be active at the international level;
Amendment 68
Proposal for a regulation
Article 4 – paragraph 1 – point g
(g)  to contribute to the Union 's global strategy for international relations through cultural diplomacy.
(g)  to contribute to the Union 's global strategy for international cultural relations by aiming to ensure the long-term impact of the strategy through a people-to-people approach involving cultural networks, civil society and grassroots organisations.
Amendment 69
Proposal for a regulation
Article 4 – paragraph 2 a (new)
As part of the specific actions pursued under the CULTURE strand, the music sector shall be a particular focus in terms of financial distribution and targeted actions. Tailor-made calls and instruments shall help boost the competitiveness of the music sector and address some of the specific challenges it faces.
Amendment 70
Proposal for a regulation
Article 5 – paragraph 1 – point a
(a)  to nurture talents and skills and to stimulate collaboration, and innovation in the creation and production of European audiovisual works;
(a)  to nurture talents, competence, skills and the use of digital technologies and to stimulate collaboration, mobility, and innovation in the creation and production of European audiovisual works, including across borders;
Amendment 71
Proposal for a regulation
Article 5 – paragraph 1 – point b
(b)  to enhance theatrical and online distribution and provide wider access across borders to European audiovisual works, including through innovative business models and the use of new technologies;
(b)  to enhance the transnational and international circulation and online and offline distribution, in particular theatrical distribution, of European audiovisual works in the new digital environment;
Amendment 72
Proposal for a regulation
Article 5 – paragraph 1 – point b a (new)
(ba)  to provide wider access to Union audiovisual works for international audiences, in particular through promotion, events, film literacy activities and festivals;
Amendment 73
Proposal for a regulation
Article 5 – paragraph 1 – point b b (new)
(bb)  to enhance audiovisual heritage and to facilitate access to, and to support and promote, audiovisual archives and libraries as sources of memory, education, re-use and new business, including through the latest digital technologies;
Amendment 74
Proposal for a regulation
Article 5 – paragraph 1 – point c
(c)  to promote European audiovisual works and support audience development across Europe and beyond.
(c)  to promote European audiovisual works and support the engagement of audience of all ages, in particular young audiences and people with disabilities, for the proactive and legal use of audiovisual works across Europe and beyond and for the sharing of user-generated content, including by promoting film and audiovisual education.
Amendment 75
Proposal for a regulation
Article 5 – paragraph 2
These priorities shall be addressed through support to the creation, promotion, access, and dissemination of European works with the potential to reach large audiences within Europe and beyond, thereby adapting to new market developments and accompanying the Audiovisual Media Services Directive.
These priorities shall be addressed through support to the creation, promotion, access, and dissemination of European works, spreading European values and common identity with the potential to reach audiences of all ages within Europe and beyond, thereby adapting to new market developments and accompanying the Audiovisual Media Services Directive.
Amendment 76
Proposal for a regulation
Article 6 – paragraph 1 – point a
(a)  to support cross-sectoral transnational policy cooperation including on the role of culture for social inclusion and promote the knowledge of the programme and support the transferability of results;
(a)  to support cross-sectoral transnational policy cooperation including on promoting the role of culture for social inclusion, in particular as regards for persons with disabilities and for enhancing democracy and to promote the knowledge of the programme and support the transferability of results in order to increase the visibility of the Programme;
Amendment 77
Proposal for a regulation
Article 6 – paragraph 1 – point b
(b)  to promote innovative approaches to content creation, access, distribution and promotion across cultural and creative sectors;
(b)  to promote innovative approaches to artistic content creation and artistic research, access, distribution and promotion taking into account copyright protection, across the cultural and creative sectors, covering both market and non-market dimensions;
Amendment 78
Proposal for a regulation
Article 6 – paragraph 1 – point c
(c)  to promote cross cutting activities covering several sectors aiming at adjusting to the structural changes faced by the media sector, including enhancing a free, diverse, and pluralistic media environment, quality journalism and media literacy;
(c)  to promote cross cutting activities covering several sectors aiming at adjusting to the structural and technological changes faced by the media sector, including enhancing a free, diverse, and pluralistic media, artistic and cultural environment, professional ethics in journalism, critical thinking and media literacy, in particular among young people by helping with adapting to new medial tools and formats and countering the spread of disinformation;
Amendment 79
Proposal for a regulation
Article 6 – paragraph 1 – point d
(d)  to set up and support programme desks to promote, the Programme in their country and to stimulate cross-border cooperation within the cultural and creative sectors.
(d)  to set up, and support the active involvement of, programme desks in participating countries, to promote the Programme in their countries, in a fair and balanced way, including through network activities on the ground, and to support the applicants in relation to the Programme and provide basic information on other relevant support opportunities available under Union funded programmes and to stimulate cross-border cooperation and the exchange of best practices within the cultural and creative sectors.
Amendment 80
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 1
The financial envelope for the implementation of the Programme for the period 2021 – 2027 shall be EUR 1 850 000 000 in current prices.
The financial envelope for the implementation of the Programme for the period 2021 – 2027 shall be EUR 2 806 000 000 in constant prices.
Amendment 81
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 2 – indent 1
–  up to EUR 609 000 000 for the objective referred to in Article 3 (2)(a) (strand CULTURE);
–  not less than 33 % for the objective referred to in Article 3 (2)(a) (strand CULTURE);
Amendment 82
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 2 – indent 2
–  up to EUR 1 081 000 000 for the objective referred to in Article 3(2)(b) (strand MEDIA);
–  not less than 58 % for the objective referred to in Article 3(2)(b) (strand MEDIA);
Amendment 83
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 2 – indent 3
–  up to EUR 160 000 000 for the activities referred to in Article 3(2)(c) (CROSS SECTORAL strand).
–  up to 9 % for the activities referred to in Article 3(2)(c) (CROSS SECTORAL strand) ensuring a financial allocation to each national Creative Europe Desk at least at the same level as the financial allocation provided for under Regulation (EC) No 1295/2013.
Amendment 84
Proposal for a regulation
Article 7 – paragraph 3
3.  In addition to the financial envelope as indicated in paragraph 1, and in order to promote the international dimension of the Programme, additional financial contributions may be made available from the external financing instruments [Neighbourhood, Development and International Cooperation Instrument, the Instrument for Pre-accession Assistance (IPA III)], to support actions implemented and managed in accordance with this Regulation. This contribution shall be financed in accordance with the Regulations establishing those instruments.
3.  In addition to the financial envelope as indicated in paragraph 1, and in order to promote the international dimension of the Programme, additional financial contributions may be made available from the external financing instruments [Neighbourhood, Development and International Cooperation Instrument, the Instrument for Pre-accession Assistance (IPA III)], to support actions implemented and managed in accordance with this Regulation. This contribution shall be financed in accordance with the Regulations establishing those instruments and reported every year to the budgetary authority, along with the contributions of third countries to the programme.
Amendment 85
Proposal for a regulation
Article 8 – paragraph 1 – subparagraph 1 a (new)
Third countries may participate in the Programmes’ governance structures and stakeholder forums for the purpose of facilitating information exchange.
Amendment 151
Proposal for a regulation
Article 8 – paragraph 2
2.  The participation to the MEDIA and CROSS SECTORAL strands by the countries referred to in points (a), (b) and (c) of paragraph 1 shall be subject to fulfilment of the conditions set out in Directive 2010/13/EU.
2.  The participation to the MEDIA and CROSS SECTORAL strands by the countries referred to in points (a) to (d) of paragraph 1 shall be subject to fulfilment of the conditions set out in Directive 2010/13/EU.
Amendment 86
Proposal for a regulation
Article 8 – paragraph 3 a (new)
3a.  Agreements with the third countries associated to the Programme under this Regulation shall be facilitated through procedures that are faster than those under Regulation (EU) No 1295/2013. Agreements with new countries shall be proactively promoted.
Amendment 87
Proposal for a regulation
Article 9 – paragraph 1
1.  Access to the Programme shall be open to international organisations active in the areas covered by the Programme in accordance with the Financial Regulation.
1.  Access to the Programme shall be open to international organisations active in the areas covered by the Programme, such as Unesco, the Council of Europe, by means of a more structured collaboration with Cultural Routes and Euroimages, EUIPO Observatory, the World Intellectual Property Organisation and the OECD, on the basis of joint contributions, for the achievement of the Programme objectives and in accordance with the Financial Regulation.
Amendment 152
Proposal for a regulation
Article 9 – paragraph 2
2.  The Union shall be a member of the European Audiovisual Observatory for the duration of the Programme. The Union's participation in the Observatory shall contribute to the achievement of the priorities of the MEDIA strand. The Commission shall represent the Union in its dealings with the Observatory. The MEDIA strand shall support the payment of the contribution fee for Union membership of the Observatory to foster data collection and analysis in the audiovisual sector.
2.  The Union shall be a member of the European Audiovisual Observatory for the duration of the Programme. The Union's participation in the Observatory shall contribute to the achievement of the priorities of the MEDIA strand. The Commission shall represent the Union in its dealings with the Observatory. The MEDIA strand shall support the payment of the contribution fee for Union membership of the Observatory and data collection and analysis in the audiovisual sector.
Amendment 88
Proposal for a regulation
Article 9 a (new)
Article 9 a
Data gathering on culture and creative sectors
The Commission shall reinforce the cooperation within its services such as the Joint Research Centre and Eurostat with the purpose of gathering appropriate statistical data to measure and analyse the impact of cultural policies. For that task, the Commission shall act in cooperation with centres of excellence in Europe and national statistical institutes and shall act in collaboration with the Council of Europe, the OECD and Unesco. It shall thereby contribute to the achievement of the objectives of the CULTURE strand and closely follow further cultural policy developments, also by including stakeholders at an early stage in the reflection and adaptation of indicators common to different sectors or specific indicators per domain of activities. The Commission shall report regularly to the European Parliament on those activities.
Amendment 89
Proposal for a regulation
Article 10 – paragraph 3
3.  Blending operations under this Programme shall be implemented in accordance with the [InvestEU regulation] and Title X of the Financial Regulation.
3.  Blending operations under the Programme shall be implemented in accordance with Title X of the Financial Regulation and the procedures laid down in [InvestEU Regulation]. The dedicated guarantee facility created under Creative Europe shall be continued under the [InvestEU regulation] and shall take account of the implementation practices developed in the framework of the Cultural and Creative Sectors Guarantee Facility set up by Regulation (EU) No 1295/2013.
Amendment 90
Proposal for a regulation
Article 10 – paragraph 4
4.  Contributions to a mutual insurance mechanism may cover the risk associated with the recovery of funds due by recipients and shall be considered a 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.
4.  Contributions to a mutual insurance mechanism may cover the risk associated with the recovery of funds due by recipients and shall be considered a sufficient guarantee under the Financial Regulation. The provisions laid down in [Article X of] Regulation XXX [successor of the Regulation on the Guarantee Fund], built on, and taking into account, the implementation practices already developed, shall apply.
Amendment 91
Proposal for a regulation
Article 10 – paragraph 4 a (new)
4a.  In order to promote the international dimension of the Programme, the programmes established by Regulation …/…[Neighbourhood Development and International Cooperation Instrument]and Regulation …/… [IPA III] shall financially contribute to actions established under this Regulation. This Regulation shall apply to the use of those programmes, while ensuring conformity with the Regulations respectively governing them.
Amendment 92
Proposal for a regulation
Article 12 – paragraph 1
1.  The Programme shall be implemented by work programmes referred to in Article 110 of the Financial Regulation. Work programmes shall set out, where applicable, the overall amount reserved for blending operations.
1.  The Programme shall be implemented by annual work programmes referred to in Article 110 of the Financial Regulation. The adoption of work programmes shall be preceded by consultations with the various stakeholders in order to ensure that the actions planned will support the different sectors involved in the best way possible. Work programmes shall set out, where applicable, the overall amount reserved for blending operations, which shall not supplant direct funding in the form of grants.
The general and specific objectives and corresponding policy priorities and actions of the Programme, as well as the allocated budget per action, shall be specified in detail in the annual work programmes. The annual work programme shall also contain an indicative implementation timetable.
Amendment 93
Proposal for a regulation
Article 12 – paragraph 2
2.  The work programme shall be adopted by the Commission by means of an implementing act.
2.  The Commission shall adopt delegated acts in accordance with Article 19 supplementing this Regulation by establishing annual work programmes.
Amendment 94
Proposal for a regulation
Article 13 – paragraph 1 a (new)
1a.  The calls for proposal may take into account the necessity of ensuring appropriate support to small-scale projects under the CULTURE strand through measures that may include higher co-financing rates.
Amendment 95
Proposal for a regulation
Article 13 – paragraph 1 b (new)
1b.  The grants shall be awarded taking into account the following features of the project concerned:
(a)  quality of the project;
(b)  impact;
(c)  quality and efficiency in its implementation.
Amendment 96
Proposal for a regulation
Article 13 – paragraph 2
2.  The evaluation committee may be composed of external experts.
2.  The evaluation committee may be composed of external experts. It shall meet in the physical presence of its members or remotely.
The experts shall have a professional background related to the field assessed. The evaluation committee may request the opinion of experts from the country of application.
Amendment 97
Proposal for a regulation
Article 13 – paragraph 3
3.  By way of derogation from Article [130(2)] of the Financial Regulation, and in duly justified cases, costs incurred by the beneficiary before the submission of the grant application, may be considered eligible, provided that they are directly linked to the implementation of the supported actions and activities.
3.  By way of derogation from Article [130(2)] of the Financial Regulation, and in duly justified cases, costs incurred by the beneficiary before the submission of the grant application, shall be considered eligible, provided that they are directly linked to the implementation of the supported actions and activities.
Amendment 98
Proposal for a regulation
Article 14 – paragraph 5 – introductory part
5.  The following entities may be awarded grants without a call for proposal:
5.  The following entities may exceptionally be awarded grants without a call for proposal, on the basis of specific missions and objectives to be defined by the Commission and assessed regularly in line with the objectives of the Programme:
Amendment 99
Proposal for a regulation
Article 14 – paragraph 5 – point a
(a)  The European Film Academy;
(a)  The European Film Academy in the context of cooperation with the European Parliament on the LUX Film Prize, following a cooperation agreement negotiated between and signed by the parties and in collaboration with Europa Cinemas; until such time as the cooperation agreement has been concluded, the relevant appropriations shall be placed in the reserve;
Amendment 100
Proposal for a regulation
Article 14 – paragraph 5 – point b
(b)  The European Union Youth Orchestra.
(b)  The European Union Youth Orchestra for its activities, including the regular selection of, and training for, young musicians from all Member States through residence programmes that offer mobility and the opportunity to perform in festivals and tours within the Union and at the international level and that contribute to the circulation of European culture across borders and to the internationalisation of young musicians’ careers, aiming at a geographical balance of participants; the European Union Youth Orchestra shall continuously diversify its revenues by actively seeking financial support from new sources, reducing its dependence on Union funding; the activities of the European Union Youth Orchestra shall be in line with the Programme and the CULTURE strand objectives and priorities, in particular audience engagement.
Amendment 101
Proposal for a regulation
Article 15 – paragraph 1
The Commission, in cooperation with the Member States, shall ensure the overall consistency and complementarity of the Programme with the relevant policies and programmes, in particular those relating to gender balance, education, youth and solidarity, employment and social inclusion, research and innovation, industry and enterprise, agriculture and rural development, environment and climate action, cohesion, regional and urban policy, State aid and international cooperation and development.
The Commission, in cooperation with the Member States, shall ensure the overall consistency and complementarity of the Programme with the relevant policies and programmes, in particular those relating to gender balance, education, in particular digital education and media literacy, youth and solidarity, employment and social inclusion, in particular for marginalised groups and minorities, research and innovation, including social innovation, industry and enterprise, agriculture and rural development, environment and climate action, cohesion, regional and urban policy, sustainable tourism, State aid, mobility and international cooperation and development, also in order to promote effective use of public funds;
The Commission shall ensure that, when the procedures laid down in [InvestEU Programme] are applied for the purposes of the Programme, they take into account the practices developed in the framework of the Cultural and Creative Sectors Guarantee Facility set up by Regulation (EU) No 1295/2013.
Amendment 102
Proposal for a regulation
Article 16 – paragraph 2 – point b
(b)  it complies with the minimum quality requirements of that call for proposals;
(b)  it complies with the high quality requirements of that call for proposals;
Amendment 103
Proposal for a regulation
Article 16 – paragraph 2 a (new)
2a.  Proposals that have been awarded a Seal of Excellence may receive funding directly from other programmes and from funds under Regulation [CPR Regulation COM(2018)0375] in accordance with Article 67(5) thereof, provided that such proposals are consistent with the objectives of the Programme. The Commission shall ensure that the selection and award criteria for the projects to be awarded the Seal of Excellence are coherent, clear and transparent for the potential beneficiaries.
Amendment 104
Proposal for a regulation
Article 16 a (new)
Article 16 a
Cultural and Creative Sectors Guarantee Facility under InvestEU
1.  Financial support through the new InvestEU Programme shall build on the objectives and the criteria of the Cultural and Creative Sectors Guarantee Facility taking into account the specificity of the sector.
2.  The InvestEU Programme shall provide:
(a)  SMEs and micro, small and medium-sized organisations in the cultural and creative sectors with access to finance;
(b)  guarantees to participating financial intermediaries from any country participating in the Guarantee Facility;
(c)  participating financial intermediaries with additional expertise to evaluate risks associated with SMEs and micro, small and medium-sized organisations and with cultural and creative projects;
(d)  the volume of debt financing made available to SMEs and micro, small and medium-sized organisations;
(e)  SMEs and micro, small and medium-sized organisations across regions and sectors with the ability to build a diversified loan portfolio and to propose a marketing and promotion plan;
(f)  the following types of loans: investment in tangible and intangible assets with the exclusion of personal collateral; business transfer; working capital, such as interim finance, gap finance, cash flow and credit lines.
Amendment 105
Proposal for a regulation
Article 17 – paragraph 1 a (new)
1a.  The strands shall have a common set of qualitative indicators. Each strand shall have a dedicated set of indicators.
Amendment 106
Proposal for a regulation
Article 17 – paragraph 2
2.  To ensure effective assessment of progress of the programme towards the achievement of its objectives, the Commission is empowered to adopt delegated acts in accordance with Article 19 to develop the provisions for a monitoring and evaluation framework, including amendments to Annex II in order to review or supplement the indicators where necessary for monitoring and evaluation.
2.  To ensure effective assessment of progress of the programme towards the achievement of its objectives, the Commission is empowered to adopt delegated acts in accordance with Article 19 to develop the provisions for a monitoring and evaluation framework, including amendments to Annex II in order to review or supplement the indicators. The Commission shall adopt a delegated act on indicators by 31 December 2022.
Amendment 107
Proposal for a regulation
Article 18 – paragraph 1 a (new)
1a.  The available figures on the amount of commitment and payment appropriations that would have been needed to finance the projects awarded with the Seal of Excellence shall be communicated every year to the two branches of the budgetary authority, at least 3 months prior to the date of the publication of their respective positions on the Union budget for the following year, according to the commonly agreed calendar for the annual budgetary procedure.
Amendment 108
Proposal for a regulation
Article 18 – paragraph 2
2.  The interim evaluation of the Programme shall be performed once there is sufficient information available about the implementation of the Programme, but no later than four years after the start of the programme implementation.
2.  The mid-term review of the Programme shall be performed by 30 June 2024.
The Commission shall submit the mid-term evaluation report to the European Parliament and to the Council by 31 December 2024.
The Commission shall submit, where necessary and on the basis of the mid-term review, a legislative proposal to revise this Regulation.
Amendment 109
Proposal for a regulation
Article 18 – paragraph 3
3.  At the end of the implementation of the Programme, but no later than two years after the end of the period specified in Article 1, a final evaluation of the Programme shall be carried out by the Commission.
3.  At the end of the implementation of the Programme, but no later than two years after the end of the period specified in Article 1, a final evaluation of the Programme shall be submitted by the Commission.
Amendment 110
Proposal for a regulation
Article 20 – paragraph 1
1.  The recipients of Union funding shall acknowledge the origin and ensure the visibility of the Union funding (in particular when promoting the actions and their results) by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public.
1.  The recipients of Union funding shall acknowledge the origin and ensure the visibility of the Union funding (in particular when promoting the actions and their results) by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public, in particular the name of the Programme and, for actions funded under the MEDIA strand, the MEDIA logo. The Commission shall develop a CULTURE logo which shall be used for actions funded under the CULTURE strand.
Amendment 111
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 1 – point a
(a)  Cooperation projects;
(a)  Transnational cooperation projects with a clear distinction between small, medium and large scale projects and with special attention to micro and small-sized cultural organisations;
Amendment 112
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 1 – point d
(d)  Mobility of artists and cultural and creative operators;
(d)  Mobility of artists, artisans and cultural and creative operators in their transnational activity including covering costs related to artistic activity, circulation of artistic and cultural works;
Amendment 113
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 1 – point e
(e)  Support to cultural and creative organisations to operate at international level;
(e)  Support to cultural and creative organisations to operate at international level and to develop their capacity building;
Amendment 114
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 2 – point a
(a)  Support to the music sector: promoting diversity, creativity and innovation in the field of music, in particular the distribution of musical repertoire in Europe and beyond, training actions and audience development for European repertoire, as well as support for data gathering and analysis;
(a)  Support to the music sector: promoting diversity, creativity and innovation in the field of music, in particular live music sector, also through networking, the distribution and promotion of a diverse European musical works and repertoire in Europe and beyond, training, participation in and access to, music, audience development, the visibility and recognition of creators, promoters and artists, in particular young and emerging ones, as well as support for data gathering and analysis;
Amendment 115
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 2 – point b
(b)  Support to the book and publishing sector: targeted actions promoting diversity, creativity and innovation, in particular the translation and promotion of European literature across borders in Europe and beyond, training and exchanges for sector professionals, authors and translators as well as transnational projects for collaboration, innovation and development in the sector;
(b)  Support to the book and publishing sector: targeted actions promoting diversity, creativity, innovation, in particular the translation, the adaptation in accessible formats for people with disabilities, promotion of European literature across borders in Europe and beyond, also through libraries, training and exchanges for sector professionals, authors and translators as well as transnational projects for collaboration, innovation and development in the sector;
Amendment 116
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 2 – point c
(c)  Support to architecture and cultural heritage sectors: targeted actions for the mobility of operators, capacity-building, audience development and internationalization of the cultural heritage and architecture sectors, promotion of Baukultur, support to the safeguarding, conservation and enhancement of cultural heritage and its values through awareness-raising, networking and peer-to-peer learning activities;
(c)  Support to cultural heritage sectors and architecture: targeted actions for the mobility of operators, research, establishment of high quality standards, capacity-building, sharing of the professional knowledge and skills for artisans, audience engagement, support to the safeguarding, conservation, regeneration of life space, adaptive re-use, promotion of Baukultur, sustainability, dissemination, enhancement and internationalization of cultural heritage and its values through awareness-raising, networking, peer-to-peer learning activities;
Amendment 117
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 2 – point d
(d)  Support to other sectors: targeted actions in favour of the development of the creative aspects of the design and fashion sectors and cultural tourism as well as to their promotion and representation outside the European Union.
(d)  Support to other sectors: targeted promotion actions in favour of the development of the creative aspects of other sectors, including the design and fashion sectors and a sustainable cultural tourism as well as to their promotion and representation outside the European Union.
Amendment 118
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 2 a (new)
Support to all cultural and creative sectors in areas of common need, whereas a sectoral action may be developed as appropriate in cases where the specificities of a sub-sector justify a targeted approach. A horizontal approach shall be taken for transnational projects for collaboration, mobility and internationalisation, including through residency programmes, touring, events, live performances, exhibitions and festivals, as well as for the promotion of diversity, creativity and innovation, training and exchanges for sector professionals, capacity building, networking, skills, audience development and data gathering and analysis. Sectoral actions shall benefit from budgets which are proportionate to the sectors identified as priorities. Sectoral actions should help address the specific challenges faced by the different priority sectors identified in this Annex, building on existing pilot projects, and preparatory actions.
Amendment 119
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 3 – introductory part
Special actions aiming at rendering visible and tangible European cultural diversity and heritage and nurturing intercultural dialogue:
Special actions aiming at rendering visible and tangible European identity and its cultural diversity and heritage and nurturing intercultural dialogue:
Amendment 120
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 3 – point b
(b)  European Heritage Label ensuring financial support to Decision No 1194/2011/EU of the European Parliament and of the Council34 ;
(b)  European Heritage Label ensuring financial support to Decision No 1194/2011/EU of the European Parliament and of the Council34 and network of the European Heritage Label sites;
__________________
__________________
34 Decision No 1194/2011/EU of the European Parliament and of the Council of 16 November 2011 establishing a European Union action for the European Heritage Label (OJ L 303, 22.11.2011, p. 1).
34 Decision No 1194/2011/EU of the European Parliament and of the Council of 16 November 2011 establishing a European Union action for the European Heritage Label (OJ L 303, 22.11.2011, p. 1).
Amendment 121
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 3 – point c
(c)  EU cultural prizes;
(c)  EU cultural prizes, including the European Theatre Prize;
Amendment 122
Proposal for a regulation
Annex I – point 1 – paragraph 1 – subparagraph 3 – point d a (new)
(da)  actions aiming at interdisciplinary productions relating to Europe and its values;
Amendment 123
Proposal for a regulation
Annex I – point 2 – paragraph 1 – introductory part
The priorities of the MEDIA strand of the Programme referred to in Article 5 shall take into account the differences across countries regarding audiovisual content production, distribution, and access, as well as the size and specificities of the respective markets and shall be pursued through, inter alia:
The priorities of the MEDIA strand of the Programme referred to in Article 5 shall take into account the requirements of Directive 2010/13/EU and the differences across countries regarding audiovisual content production, distribution, and access, as well as the size and specificities of the respective markets and shall be pursued through, inter alia:
Amendment 124
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point a
(a)  Development of audiovisual works;
(a)  Development of European audiovisual works, in particular films and television works such as fiction, short films, documentaries, children's films and animated films, and interactive works such as quality and narrative video games and multimedia, with enhanced cross-border circulation potential by European independent production companies;
Amendment 125
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point b
(b)  Production of innovative TV content and serial storytelling;
(b)  Production of innovative and quality TV content and serial storytelling, for all ages, by supporting European independent production companies;
Amendment 126
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point b a (new)
(ba)  Support to initiatives dedicated to the creation and promotion of works related to the history of European integration and to European stories.
Amendment 127
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point c
(c)  Advertising and marketing tools, including on line and through the use of data analytics, to increase the prominence, visibility, cross-border access, and audience reach of European works;
(c)  Promotion, advertising and marketing tools, including on line and through the use of data analytics, to increase the prominence, visibility, cross-border access, and audience reach of European works;
Amendment 128
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point d
(d)  Support to international sales and circulation of non-national European works on all platforms, including through coordinated distribution strategies covering several countries;
(d)  Support to international sales and circulation of non-national European works on all platforms targeting both small and large-sized productions on all platforms, including through coordinated distribution strategies covering several countries and subtitling, dubbing and audio description;
Amendment 129
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point d a (new)
(da)  Actions aimed at supporting low capacity countries to improve their respective identified shortcomings;
Amendment 130
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point e
(e)  Support to business to business exchanges and networking activities to facilitate European and international co-productions;
(e)  Support to business to business exchanges and networking activities to facilitate European and international co-productions and the circulation of European works;
Amendment 131
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point e a (new)
(ea)  Support to European networks of audiovisual creators from different countries aiming at nurturing creative talents in the audiovisual sector;
Amendment 132
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point e b (new)
(eb)  Specific measures to contribute to the fair treatment of creative talent in the audiovisual sector;
Amendment 133
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point g
(g)  Initiatives promoting audience development and film education addressing in particular young audiences;
(g)  Initiatives promoting audience development and engagement, in particular in cinemas and film and audiovisual education addressing, in particular, young audiences;
Amendment 134
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point h
(h)  Training and mentoring activities to enhance the capacity of audiovisual operators to adapt to new market developments and digital technologies;
(h)  Training and mentoring activities to enhance the capacity of audiovisual operators, including artisans and craftspeople, to adapt to new market developments and digital technologies;
Amendment 135
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point i
(i)  A European Video on Demand (VOD) operators' network, screening a significant proportion of non-national European works;
(i)  One or more European Video on Demand (VOD) networks of operators, screening a significant proportion of non-national European works;
Amendment 136
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point j
(j)  European festivals' network(s) screening a significant proportion of non-national European works;
(j)  European festivals and festivals networks screening and promoting a variety of European audiovisual works, with a significant proportion of non-national European works;
Amendment 137
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point k
(k)  A European cinema operators' network, screening a significant proportion of non-national European films;
(k)  A European cinema operators' network, screening a significant proportion of non-national European films, contributing to reinforce the role of cinema theatres in the value chain and highlighting public screenings as a social experience;
Amendment 138
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point l
(l)  Specific measures to contribute to a more balanced gender participation in the audiovisual sector;
(l)  Specific measures, including mentoring and networking activities, to contribute to a more balanced gender participation in the audiovisual sector;
Amendment 139
Proposal for a regulation
Annex I – point 2 – paragraph 1 – point n a (new)
(na)  Support to the circulation of, and multilingual access to, cultural television content online and offline, including through subtitling, in order to promote the richness and diversity of European cultural heritage, contemporary creations and languages.
Amendment 140
Proposal for a regulation
Annex I – point 3 – paragraph 1 – subparagraph 1 – point a
(a)  Policy development, transnational exchange of experiences and know-how, peer learning activities and networking among cultural and creative organisations and policy makers, of a cross-sectoral nature;
(a)  Policy development, transnational exchange of experiences and know-how, peer learning activities, including peer mentoring for newcomers to the Programme, awareness raising and networking among cultural and creative organisations and policy makers of a cross-sectoral nature also through a permanent structural dialogue with stakeholders, and with a Forum of Culture and Creative Sectors for strengthening dialogue and the orientation of sector policies;
Amendment 141
Proposal for a regulation
Annex I – point 3 – paragraph 1 – subparagraph 2 – point a
(a)  Encourage new forms of creation at the cross roads between different cultural and creative sectors, for instance through the use of innovative technologies;
(a)  Encourage new forms of creation at the cross roads between different cultural and creative sectors, and with operators of other sectors, for instance through the use of, and mentoring in the use of, innovative technologies within cultural organisations and collaboration through digital hubs;
Amendment 142
Proposal for a regulation
Annex I – point 3 – paragraph 1 – subparagraph 2 – point b a (new)
(ba)  Actions aiming at interdisciplinary productions relating to Europe and its values;
Amendment 143
Proposal for a regulation
Annex I – point 3 – paragraph 1 – subparagraph 3 – point a
(a)  Promote the programme at national level and provide information on the various types of financial support available under union policy;
(a)  Promote the programme at national level and provide relevant information on the various types of financial support available under union policy and on the evaluation criteria, procedure and results;
Amendment 144
Proposal for a regulation
Annex I – point 3 – paragraph 1 – subparagraph 3 – point b
(b)  Stimulate cross border cooperation between professionals, institutions, platforms and networks within and across the policy areas and sectors covered by the programme;
(b)  Support potential beneficiaries in application processes, stimulate cross border cooperation and the exchange of best practices between professionals, institutions, platforms and networks within and across the policy areas and sectors covered by the programme;
Amendment 145
Proposal for a regulation
Annex I – point 3 – paragraph 1 – subparagraph 3 – point c
(c)  Support the Commission in ensuring a proper communication and dissemination of the results of the programme to the citizens.
(c)  Support the Commission in ensuring a bottom-up and top-down proper communication and dissemination of the results of the programme to the citizens and to the operators.
Amendment 146
Proposal for a regulation
Annex I – point 3 – paragraph 1 – subparagraph 4 – point a
(a)  Addressing the structural changes faced by the media sector by promoting and monitoring a diverse and pluralistic media environment;
(a)  Addressing the structural and technological changes faced by the news media sector by promoting an independent and pluralistic media environment and supporting independent monitoring for assessing risks and challenges to media pluralism and freedom;
Amendment 147
Proposal for a regulation
Annex I – point 3 – paragraph 1 – subparagraph 4 – point b
(b)  Supporting high media production standards by fostering cooperation, cross-border collaborative journalism, and quality content;
(b)  Supporting high media production standards by fostering cooperation, digital skills, cross-border collaborative journalism, and quality content and sustainable media economic models to ensure professional ethics in journalism;
Amendment 148
Proposal for a regulation
Annex I – point 3 – paragraph 1 – subparagraph 4 – point c
(c)  Promoting media literacy to allow citizens to develop a critical understanding of the media.
(c)  Promoting media literacy to allow citizens, in particular young people, to develop a critical understanding of the media and supporting the creation of a Union platform to share media literacy practices and policies among all the Member States, including through university networks of radio and media which deal with Europe and providing news media professionals with training programmes in order to recognise and tackle disinformation.
Amendment 149
Proposal for a regulation
Annex I – point 3 – paragraph 1 – subparagraph 4 – point c a (new)
(ca)  Fostering and safeguarding political and civil society dialogue on threats to media freedom and media pluralism in Europe;
Amendment 150
Proposal for a regulation
Annex II – paragraph -1 (new)
-1.  COMMON QUALITATIVE AND QUANTITATIVE IMPACT INDICATORS OF THE PROGRAMME
(1)  Benefit for citizens and communities;
(2)  Benefit for the strengthening of European cultural diversity and cultural heritage;
(3)  Benefit for the Union economy and jobs, in particular cultural and creative sectors and SMEs;
(4)  Mainstreaming of Union policies, including international cultural relations;
(5)  European added value of projects;
(6)  Quality of partnerships and cultural projects;
(7)  Number of people accessing European cultural and creative works supported by the Programme;
(8)  Number of employment positions linked to the funded projects;
(9)  Gender balance, where needed, mobility and empowerment of the operators in the cultural and creative sectors.

(1) Not yet published in the Official Journal.
(2) Not yet published in the Official Journal.


‘Erasmus’: the Union programme for education, training, youth and sport ***I
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European Parliament legislative resolution of 28 March 2019 on the proposal for a regulation of the European Parliament and of the Council establishing ‘Erasmus’: the Union programme for education, training, youth and sport and repealing Regulation (EU) No 1288/2013 (COM(2018)0367 – C8-0233/2018 – 2018/0191(COD))
P8_TA(2019)0324A8-0111/2019

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Establishment of a framework to facilitate sustainable investment ***I
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European Parliament legislative resolution of 28 March 2019 on the proposal for a regulation of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment (COM(2018)0353 – C8-0207/2018 – 2018/0178(COD))
P8_TA-PROV(2019)0325A8-0175/2019

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0353),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0207/2018),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the European Economic and Social Committee of 17 October 2018(1),

–  having regard to the opinion of the Committee of the Regions of 5 December 2018(2),

–  having regard to Rule 59 of its Rules of Procedure,

–  having regard to the joint deliberations of the Committee on Economic and Monetary Affairs and the Committee on the Environment, Public Health and Food Safety under Rule 55 of the Rules of Procedure,

–  having regard to the report of the Committee on Economic and Monetary Affairs and the Committee on the Environment, Public Health and Food Safety (A8-0175/2019),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Text proposed by the Commission   Amendment
Amendment 80
Proposal for a regulation
Recital 6
(6)  In March 2018, the Commission published its Action Plan 'Financing Sustainable Growth'25 setting up an ambitious and comprehensive strategy on sustainable finance. One of the objectives set out in that Action Plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth. The establishment of a unified classification system for sustainable activities is the most important and urgent action envisaged by the Action Plan. The Action Plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared understanding of what 'sustainable' means. As a first step, clear guidance on activities qualifying as contributing to environmental objectives, should help inform investors about the investments that fund environmentally sustainable economic activities. Further guidance on the activities contributing to other sustainability objectives, including social objectives, may be developed at a later stage.
(6)  In March 2018, the Commission published its Action Plan 'Financing Sustainable Growth'25 setting up an ambitious and comprehensive strategy on sustainable finance. One of the objectives set out in that Action Plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth. The establishment of a unified classification system and of indicators for identifying the degree of sustainability of activities are the most important and urgent action envisaged by the Action Plan. The Action Plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared, holistic understanding of the impact of economic activities and investments on environmental sustainability and resource efficiency. As a first step, clear guidance on activities qualifying as contributing to environmental objectives, should help inform investors about the investments that fund economic activities according to their degree of sustainability. Recognising the UN Sustainability Goals and the European Council conclusions of 20 June 2017, further guidance on the activities contributing to other sustainability objectives including social and governance objectives, should also be developed thereby implementing the 2030 Agenda in full, coherent, comprehensive, integrated and effective manner.
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25 COM(2018) 97 final.
25 COM(2018) 97 final.
Amendment 2
Proposal for a regulation
Recital 6 a (new)
(6a)  While acknowledging the urgency of addressing climate change, a narrow focus on carbon exposure could have negative spill-overs by redirecting investment flows to targets that carry other environmental risks. Hence, adequate safeguards need to be put in place to ensure that the economic activities are not harming other environmental objectives, such as biodiversity and energy efficiency. Investors need comparable and holistic information regarding environmental risks and their impact, in order to assess their portfolios beyond carbon exposure.
Amendment 3
Proposal for a regulation
Recital 6 b (new)
(6b)  Given the urgency in several interlinked fields of environmental degradation and resource overconsumption, there is a need to take a systemic approach to exponentially growing negative trends, such as the loss of biodiversity, the global overconsumption of resources, the appearance of new threats including hazardous chemicals and their cocktails, nutrition scarcity, climate change, ozone depletion, ocean acidification, fresh water depletion, and land system change. Hence, it is necessary that the actions to be taken are forward-looking and up-to-scale to the upcoming challenges. The scale of those challenges requires a holistic and ambitious approach and the application of a stringent precautionary principle.
Amendment 4
Proposal for a regulation
Recital 7 a (new)
(7a)  The European Parliament Own Initiative Report on Sustainable Finance of 29 May 2018 lays down essential elements of sustainability indicators and taxonomy as an incentive for sustainable investment. Consistency should be ensured among relevant legislation.
Amendment 5
Proposal for a regulation
Recital 8 a (new)
(8a)  The scale of the challenge entails gradually moving the entire financial system to support the economy to function on a sustainable basis. To that end, sustainable finance needs to be brought into the mainstream, and consideration needs to be made of sustainability impact in respect of financial products and services.
Amendment 6
Proposal for a regulation
Recital 9
(9)  Offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities. National requirements for marketing as sustainable investments financial products and corporate bonds, in particular requirements set out to allow the relevant market actors to use a national label, aim to enhance investor confidence, to create visibility and to address concerns about “greenwashing”. Greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment-friendly, when in fact it does not meet basic environmental standards. Currently a few Member States have in place labelling schemes. They build on different taxonomies classifying environmentally sustainable economic activities. Given the political commitments under the Paris Agreement and at Union level, it is likely that more and more Member States will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable. In doing so, Member States would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable. If such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable, investors will be discouraged from investing across borders, due to difficulties in comparing the different investment opportunities. In addition, economic operators wishing to attract investment from across the Union would have to meet different criteria in the various Member States in order for their activities to qualify as environmentally sustainable for the purposes of the different labels. The absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators, amounting to an impediment to access cross-border capital markets for sustainable investments. The barriers to access to cross-border capital markets for the purposes of raising funds for sustainable projects are expected to grow further. The criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at Union level, in order to remove obstacles to the functioning of the internal market and prevent their future emergence. With such harmonisation economic operators will find it easier to raise funding for their green activities across borders, as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments. It will therefore facilitate attracting investment across borders within the Union.
(9)  Offering financial products which pursue environmentally sustainable objectives is an effective way of gradually shifting private investments from activities with negative environmental impact and towards more sustainable activities. National requirements for marketing as sustainable investments financial products, services and corporate bonds, as defined in this Regulation, in particular requirements set out to allow the relevant market actors to use a national label, aim to enhance investor confidence and awareness of risks, to create visibility and to address concerns about “greenwashing”. Greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment-friendly, when in fact it does not meet basic environmental standards. Currently a few Member States have in place labelling schemes. They build on different taxonomies classifying environmentally sustainable economic activities. Given the political commitments under the Paris Agreement and at Union level, it is likely that more and more Member States will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable. In doing so, Member States would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable. If such national requirements are based on different criteria and indicators as to which economic activities qualify as environmentally sustainable, investors will be discouraged from investing across borders, due to difficulties in comparing the different investment opportunities. In addition, economic operators wishing to attract investment from across the Union would have to meet different criteria in the various Member States in order for their activities to qualify as environmentally sustainable for the purposes of the different labels. The absence of uniform criteria and indicators will direct investments in an environmentally ineffective, and in some cases counterproductive, manner and lead to unmet environmental and sustainability targets. That absence thus increases costs and creates a significant disincentive for economic operators, amounting to an impediment to access cross-border capital markets for sustainable investments. The barriers to access to cross-border capital markets for the purposes of raising funds for sustainable projects are expected to grow further. The criteria and indicators for determining the degree of sustainability of an economic activity should therefore be gradually harmonised at Union level, in order to remove obstacles to the functioning of the internal market and prevent their future emergence. With such harmonisation of information, of metrics and of criteria, economic operators will find it easier to raise funding for their environmentally sustainable activities across borders, as their economic activities can be compared against uniform criteria and indicators in order to be selected as underlying assets for environmentally sustainable investments. It will therefore facilitate attracting investment across borders within the Union.
Amendment 7
Proposal for a regulation
Recital 9 a (new)
(9a)   In order for the Union to reach its environmental and climate commitments, private investments need to be mobilised. Achieving this requires long-term planning as well as regulatory stability and predictability for investors. In order to guarantee a coherent policy framework for sustainable investments, it is therefore important that the provisions of this Regulation build upon existing Union legislation.
Amendment 8
Proposal for a regulation
Recital 10
(10)  Moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives, or if they use different concepts in their explanation of what is a ‘sustainable’ economic activity, investors will find it disproportionately burdensome to check and compare these different financial products. It has been found that this discourages investors from investing into green financial products. Furthermore, the lack of investor confidence has major detrimental effects on the market for sustainable investment. It has further been shown that national rules or market-based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market. If financial market participants disclose how the financial products they claim are environment-friendly meet environmental objectives, and they use for such disclosures common criteria across the Union of what is an environmentally sustainable economic activity, this will help investors compare environment-friendly investment opportunities across borders. Investors will invest in green financial products with higher confidence across the Union, improving the functioning of the internal market.
(10)  Moreover if market participants do not disclose how the activities they invest in contribute negatively or positively to environmental objectives, or if they use different metrics and criteria for determining the impact in their explanation of the degree of environmental sustainability of an economic activity, investors will find it disproportionately burdensome to check and compare different financial products. It has been found that this discourages investors from investing into sustainable financial products. Furthermore, the lack of investor confidence has major detrimental effects on the market for sustainable investment. It has further been shown that national rules or market-based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market. If financial market participants disclose how the financial products they claim are environment-friendly meet environmental objectives, and they use for such disclosures common criteria across the Union of what is an environmentally sustainable economic activity, this will help investors compare the environmental impact of investment opportunities across borders and will incentivise investee companies to make their business models more sustainable. Investors will invest in green financial products with higher confidence across the Union, improving the functioning of the internal market.
Amendment 9
Proposal for a regulation
Recital 10 a (new)
(10a)  In order to deliver a meaningful environmental and broader sustainability impact, to decrease unnecessary administrative burden on financial market participants and other stakeholders and to facilitate the growth of European financial markets funding sustainable economic activities, the taxonomy should be based on harmonised, comparable and uniform criteria and indicators, including at least the circular economy indicators. Those indicators should be made consistent with the unified life cycle assessment methodology and be applied across Union regulatory initiatives. They should be the basis for the assessment of economic activities and investments risk and impact on the environment. Any overlap in regulation must be avoided which would not be in line with the principles of better regulation and would not be applied in a proportionate manner and the aim to create a consistent terminology and a clear regulatory framework. Any unnecessary burdening of both, authorities and financial institutions should also be avoided. In the same perspective, the scope and use of the technical screening criteria as well as the link to other initiatives should be clearly defined before the taxonomy and pertaining criteria enter into force. Setting harmonised criteria for environmentally sustainable economic activities should take into account the competence of the Member States in different policy areas. The requirements of this Regulation should apply in a proportionate manner to small and non-complex institutions as defined under this Regulation.
Amendment 10
Proposal for a regulation
Recital 10 b (new)
(10b)  The indicators should be harmonised based on existing undertakings, such as the work of the Commission, the European Environmental Agency, and the OECD, among others, and should capture environmental impact on CO2 and other emissions, biodiversity, production of waste, the use of energy and renewable energy, raw materials, water, and direct and indirect land use, as laid out in the Commission monitoring framework on the circular economy (COM/2018/29 final), the EU action plan for the Circular Economy (COM/2015/0614 final) and in the European Parliament’s resolution of 9 July 2015 on resource efficiency: moving towards a circular economy (2014/2208(INI)). Furthermore, the indicators should be designed also taking into account the recommendations of the Support to Circular Economy Financing Expert Group of the European Commission. The Commission should evaluate how to integrate the work of this expert group with the TEG. Indicators should take into account internationally recognised sustainable standards.
Amendment 11
Proposal for a regulation
Recital 11
(11)  To address existing obstacles to the functioning of the internal market and to prevent the emergence of such obstacles in the future, Member States should be required to use a common concept of environmentally sustainable investment when setting up requirements for market actors for the purpose of labelling financial products or corporate bonds marketed as environmentally sustainable at national level. For the same reasons, fund managers and institutional investors that hold themselves out as pursuing environmental objectives should use the same concept of environmentally sustainable investment when disclosing how they pursue those objectives.
(11)  To address existing obstacles to the functioning of the internal market and to prevent the emergence of such obstacles in the future, Member States and the Union should be required to use a common concept regarding the degree of environmental sustainability of investments when setting up requirements for market actors for the purpose of labelling financial products, services or corporate bonds marketed as environmentally sustainable at national level. For the same reasons, fund managers and institutional investors that hold themselves out as pursuing environmental objectives should use the same concept of environmentally sustainable investment and the same indicators, metrics and criteria for calculating the environmental impact when disclosing how they pursue those objectives.
Amendment 12
Proposal for a regulation
Recital 12
(12)  Establishing criteria for environmentally sustainable economic activities may encourage firms to disclose on their websites, on a voluntary basis, information on the environmentally sustainable economic activities they carry out. This information will not only help relevant actors in the financial markets to easily identify which firms carry out environmentally sustainable economic activities, but it will also facilitate for these firms to raise funding for their green activities.
(12)  The information on the environmental impact of activities will help relevant actors in the financial markets to easily identify and determine the degree of environmental sustainability of the economic activities carried out by firms, but it will also facilitate for firms to raise funding.
Amendment 13
Proposal for a regulation
Recital 13
(13)  A Union classification of environmentally sustainable economic activities should enable the development of future Union policies, including Union-wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the Union. Uniform legal requirements for considering investments as environmentally sustainable investments, based on uniform criteria for environmentally sustainable economic activities, are necessary as a reference for future Union legislation aiming at enabling those investments.
(13)  Union-wide indicators relevant for the determination of the environmental impact of economic activities should enable the development of future Union policies and strategies, including Union-wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the Union, as well as to be the basis for other economic, regulatory and prudential measures. Uniform legal requirements for considering the degree of environmental sustainability of investments, based on uniform criteria for determining the degree of environmental sustainability of economic activities and common indicators for assessing the environmental impact of investments, are necessary as a reference for future Union legislation aiming at facilitating the shift from investments with a negative environmental impact to investments with a positive impact.
Amendment 14
Proposal for a regulation
Recital 14
(14)  In the context of achieving SDGs in the Union, policy choices such as the creation of a European Fund for Strategic Investment, have proven to be effective in contributing to channel private investment alongside public spending towards sustainable investments. Regulation (EU) 2015/1017 of the European Parliament and of the Council27 specifies a 40% climate investment target for infrastructure and innovation projects under the European Fund for Strategic Investment. Common criteria for the sustainability of economic activities could underpin future similar initiatives of the Union supporting investment pursuing climate-related or other environmental objectives.
(14)  In the context of achieving SDGs in the Union, policy choices such as the creation of a European Fund for Strategic Investment, could be effective in contributing to mobilise and channel private investment alongside public spending towards sustainable investments. Regulation (EU) 2015/1017 of the European Parliament and of the Council27 specifies a 40% horizontal climate investment target for infrastructure and innovation projects under the European Fund for Strategic Investment. Common criteria for the sustainability of economic activities and common indicators for the assessment of environmental impact may underpin future similar initiatives of the Union mobilising investment pursuing climate-related or other environmental objectives.
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27 Regulation (EU) 2017/2396 of the European Parliament and of the Council of 13 December 2017 amending Regulations (EU) No 1316/2013 and (EU) 2015/1017 as regards the extension of the duration of the European Fund for Strategic Investments as well as the introduction of technical enhancements for that Fund and the European Investment Advisory Hub (OJ L 345, 27.12.2017, p. 34).
27 Regulation (EU) 2017/2396 of the European Parliament and of the Council of 13 December 2017 amending Regulations (EU) No 1316/2013 and (EU) 2015/1017 as regards the extension of the duration of the European Fund for Strategic Investments as well as the introduction of technical enhancements for that Fund and the European Investment Advisory Hub (OJ L 345, 27.12.2017, p. 34).
Amendment 15
Proposal for a regulation
Recital 15
(15)  To avoid market fragmentation as well as harm to consumer interests due to divergent notions of environmentally sustainable economic activities, national requirements that market actors should comply with when they wish to market financial products or corporate bonds as being environmentally sustainable, should build on the uniform criteria for environmentally sustainable economic activities. Those market actors include financial market participants offering “green” financial products and non-financial companies issuing “green” corporate bonds.
(15)  To avoid market fragmentation as well as harm to consumer interests due to divergent notions regarding the degree of environmental sustainability of economic activities, national requirements that market actors should comply with when they wish to market financial products or corporate bonds as defined in this Regulation as being environmentally sustainable, should build on the uniform criteria for environmentally sustainable economic activities. Those market actors include financial market participants offering sustainable financial products or services and non-financial companies issuing sustainable corporate bonds.
Amendment 16
Proposal for a regulation
Recital 17
(17)  To avoid circumvention of the disclosure obligation, that obligation should also apply where financial products are offered as having similar characteristics as environmentally sustainable investments, including those having as their target environmental protection in a broad sense. Financial market participants should not be required to invest only in environmentally sustainable economic activities determined in accordance with the technical screening criteria set out in this Regulation. They should be encouraged to inform the Commission if they consider that an economic activity that does not meet the technical screening criteria, or for which such criteria have not been established yet, should be considered environmentally sustainable, to help the Commission to evaluate the appropriateness of complementing or updating the technical screening criteria.
(17)  To avoid circumvention of the disclosure obligation, that obligation should also apply to all financial products are offered as having similar characteristics as environmentally sustainable investments, including those having as their target environmental protection in a broad sense. Financial market participants should not be required to invest only in environmentally sustainable economic activities determined in accordance with the technical screening criteria set out in this Regulation. Financial market participants and other actors should be encouraged to inform the Commission if they consider that technical screening criteria relevant for the activities they finance have not been established yet and thereby that their financial products should be considered environmentally sustainable, to help the Commission to evaluate the appropriateness of complementing or updating the technical screening criteria.
Amendment 17
Proposal for a regulation
Recital 18
(18)  For the purposes of determining whether an economic activity is environmentally sustainable, an exhaustive list of environmental objectives should be laid down.
(18)  For the purposes of determining the degree of environmental sustainability of an economic activity, an exhaustive list of environmental objectives based on indicators measuring the environmental impact should be laid down, taking into account its impact on the entire industrial value chain and ensuring coherence with existing Union legislation such as the Clean Energy package.
Amendment 18
Proposal for a regulation
Recital 20
(20)  For each environmental objective, uniform criteria for considering economic activities to be substantially contributing to that objective should be laid down. One element of the uniform criteria should be to avoid significant harm to any of the environmental objectives set out in this Regulation. This is in order to avoid that investments are considered environmentally sustainable although the economic activities benefitting from those investments cause harm to the environment to an extent outweighing their contribution to an environmental objective. The conditions for substantial contribution and for not causing significant harm should enable investments into environmentally sustainable economic activities to make a real contribution to the environmental objectives.
(20)  For each environmental objective, uniform criteria based on information provided by means of harmonised indicators for considering economic activities to be substantially contributing to that objective should be laid down. One element of the uniform criteria should be to avoid significant harm to any of the environmental objectives set out in this Regulation. This is in order to avoid that investments are considered environmentally sustainable although the economic activities benefitting from those investments cause harm to the environment to an extent outweighing their contribution to an environmental objective. The conditions for substantial contribution and for not causing significant harm should enable investments into environmentally sustainable economic activities to make a real contribution to the environmental objectives.
Amendment 19
Proposal for a regulation
Recital 22
(22)  Given the specific technical details needed to assess the environmental impact of an economic activity and the fast-changing nature of both science and technology, the criteria of environmentally sustainable economic activities should be adapted regularly to those changes. For the criteria to be up to date, based on scientific evidence and input from experts as well as relevant stakeholders, the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly. To that purpose, granular and calibrated technical screening criteria for the different economic activities should be laid down by the Commission, on the basis of the technical input of a multi-stakeholders Platform on Sustainable Finance.
(22)  Given the specific technical details needed to assess the environmental impact of an economic activity and the fast-changing nature of both science and technology, the criteria relevant for determining the degree of environmental sustainability of economic activities should be adapted regularly to those changes. For the criteria and indicators to be up to date, based on scientific evidence and input from experts as well as relevant stakeholders, the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly. To that purpose, granular and calibrated technical screening criteria and a set of harmonised indicators for the different economic activities should be laid down by the Commission, on the basis of the technical input of a multi-stakeholders Platform on Sustainable Finance.
Amendment 20
Proposal for a regulation
Recital 23
(23)  Some economic activities have a negative impact on the environment, and a substantial contribution to one or more environmental objectives can be achieved by reducing that negative impact. For those economic activities, it is appropriate to set out technical screening criteria that require a substantial improvement in environmental performance compared to, inter alia, the industry average. Those criteria should consider also the long term impact of a specific economic activity.
(23)  Some economic activities have a negative impact on the environment, and a substantial contribution to one or more environmental objectives can be achieved by reducing that negative impact. For those economic activities, it is appropriate to set out technical screening criteria that require a substantial improvement in environmental performance compared to, inter alia, the industry average in order to consider whether that the activity may deliver a substantial contribution to one or more environmental objectives. Those criteria should consider also the long term impact (i.e. more than 3 years) of a specific economic activity in particular the environmental benefits of products and services and the contribution of intermediate products, and thus provide an assessment of the impact of all the phases of manufacturing and use throughout the value chain and life cycle.
Amendment 21
Proposal for a regulation
Recital 24
(24)  An economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings. The technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives. When establishing and updating the technical screening criteria, the Commission should ensure that those criteria are based on available scientific evidence and are updated regularly. Where scientific evaluation does not allow for the risk to be determined with sufficient certainty, the precautionary principle should apply, in line with Article 191 TFEU.
(24)  An economic activity should not be considered environmentally sustainable if it does not bring about a net benefit to the environment. The technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives. When establishing and updating the technical screening criteria, the Commission should ensure that those criteria are reasonable, proportionate and based on available scientific evidence and take account of the whole value chain and the life cycle of technologies. It should also ensure that they are updated regularly. Where scientific evaluation does not allow for the risk to be determined with sufficient certainty, the precautionary principle should apply, in line with Article 191 TFEU.
Amendment 22
Proposal for a regulation
Recital 25
(25)  When establishing and updating the technical screening criteria the Commission should take into account the relevant Union law, as well as non-legislative instruments of the Union already in place, including the Regulation (EC) 66/2010 of the European Parliament and the Council37 , the EU Eco-Management and Audit Scheme,38 the EU Green Public Procurement criteria39 and the on-going work on Product and Organisation Environmental Footprint rules.40 To avoid unnecessary inconsistencies with classifications of economic activities that already exist for other purposes, the Commission should also take into account the statistical classifications relating to the Environmental Goods and Services Sector, namely the Classification of Environmental Protection Activities and Expenditure (CEPA) and the Classification of Resource Management Activities (CReMA).41
(25)  When establishing and updating the technical screening criteria and a set of harmonised indicators the Commission should take into account the relevant Union law, as well as non-legislative instruments of the Union already in place, including the Regulation (EC) 66/2010 of the European Parliament and the Council37 , the EU Eco-Management and Audit Scheme,38 the EU Green Public Procurement criteria39, the Commission Circular Economy Platform, the European Platform on Life Cycle Assessment, and the on-going work on Product and Organisation Environmental Footprint rules.40 To avoid unnecessary inconsistencies with classifications of economic activities that already exist for other purposes, the Commission should also take into account the statistical classifications relating to the Environmental Goods and Services Sector, namely the Classification of Environmental Protection Activities and Expenditure (CEPA) and the Classification of Resource Management Activities (CReMA).41
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37 Regulation (EC) 66/2010 of the European Parliament and the Council of 25 November 2009 on the EU Ecolabel (OJ L 27, 30.1.2010, p. 1).
37 Regulation (EC) 66/2010 of the European Parliament and the Council of 25 November 2009 on the EU Ecolabel (OJ L 27, 30.1.2010, p. 1).
38 Regulation (EC) No 1221/2009 of the European Parliament and of the Council of 25 November 2009 on the voluntary participation by organisations in a Community eco-management and audit scheme (EMAS), repealing Regulation (EC) No 761/2001 and Commission Decisions 2001/681/EC and 2006/193/EC (OJ L 342, 22.12.2009, p. 1–45).
38 Regulation (EC) No 1221/2009 of the European Parliament and of the Council of 25 November 2009 on the voluntary participation by organisations in a Community eco-management and audit scheme (EMAS), repealing Regulation (EC) No 761/2001 and Commission Decisions 2001/681/EC and 2006/193/EC (OJ L 342, 22.12.2009, p. 1–45).
39 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Public procurement for a better environment {SEC(2008) 2124} {SEC(2008) 2125} {SEC(2008) 2126} COM/2008/0400 final.
39 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Public procurement for a better environment {SEC(2008) 2124} {SEC(2008) 2125} {SEC(2008) 2126} COM/2008/0400 final.
40 2013/179/EU: Commission Recommendation of 9 April 2013 on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1–210).
40 2013/179/EU: Commission Recommendation of 9 April 2013 on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations (OJ L 124, 4.5.2013, p. 1–210).
41 Annex 4 and 5 of Regulation (EU) No 538/2014 of the European Parliament and of the Council of 16 April 2014 amending Regulation (EU) No 691/2011 on European environmental economic accounts (OJ L 158, 27.5.2014).
41 Annex 4 and 5 of Regulation (EU) No 538/2014 of the European Parliament and of the Council of 16 April 2014 amending Regulation (EU) No 691/2011 on European environmental economic accounts (OJ L 158, 27.5.2014).
Amendment 23
Proposal for a regulation
Recital 26
(26)  When establishing and updating the technical screening criteria the Commission should also take into account the specificities of the infrastructure sector and take into account environmental, social and economic externalities within a cost-benefit analysis. In that regard, the Commission should consider the work of international organisations, such as the OECD, relevant Union legislation and standards, including Directive 2001/42/EC of the European Parliament and of the Council42, Directive 2011/92/EU of the European Parliament and of the Council43 Directive 2014/23/EU of the European Parliament and of the Council44, Directive 2014/24/EU of the European Parliament and of the Council45, Directive 2014/25/EU of the European Parliament and of the Council46, and current methodology. In that context, the technical screening criteria should promote appropriate governance frameworks integrating environmental, social and governance factors, as referred to in the United Nations-supported Principles for Responsible Investment47, at all stages of a project's lifecycle.
(26)  When establishing and updating the technical screening criteria and harmonised indicators the Commission should also take into account the specificities of the different sectors and take into account environmental, social and economic externalities within a cost-benefit analysis. In that regard, the Commission should consider the work of international organisations, such as the OECD, relevant Union legislation and standards, including Directive 2001/42/EC of the European Parliament and of the Council42, Directive 2011/92/EU of the European Parliament and of the Council43 Directive 2014/23/EU of the European Parliament and of the Council44, Directive 2014/24/EU of the European Parliament and of the Council45, Directive 2014/25/EU of the European Parliament and of the Council46, and current methodology. In that context, the technical screening criteria and indicators should promote appropriate governance frameworks integrating environmental, social and governance factors, as referred to in the United Nations-supported Principles for Responsible Investment47, at all stages of a project's lifecycle.
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42 Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (OJ L 197, 21.7.2001, p. 30).
42 Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (OJ L 197, 21.7.2001, p. 30).
43 Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, p. 1).
43 Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, p. 1).
44 Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts (OJ L 94, 28.3.2014, p. 1).
44 Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts (OJ L 94, 28.3.2014, p. 1).
45 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).
45 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).
46 Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243).
46 Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243).
47 https://www.unpri.org/download?ac=1534.
47 https://www.unpri.org/download?ac=1534.
Amendment 24
Proposal for a regulation
Recital 26 a (new)
(26a)  In defining the technical screening criteria, the Commission should also take into account transitional measures towards activities that support the transition to a more sustainable, low-carbon economy. For companies that are currently engaged in economic activities that are highly damaging to the environment there should be incentives to make a rapid transition to environmentally sustainable, or at least environmentally unproblematic status. The technical screening criteria should encourage such transition processes where they are happening. If the major part of the undertakings that conduct a particular harmful activity are demonstrably engaged in such a transition, the screening criteria may take this into account. The existence of serious transition efforts can be demonstrated through, among other things, sustained research and development efforts, large investment capital expenditure projects in new and more environmentally sustainable technologies, or concrete transition plans in at least the early stages of implementation.
Amendment 25
Proposal for a regulation
Recital 27
(27)  To avoid distorting competition when raising financing for environmentally sustainable economic activities, the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this Regulation. The potential capacity to contribute towards those environmental objectives may however vary across sectors, which should be reflected in the criteria. However, within each sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter.
(27)  To encourage environmentally sustainable innovation and to avoid distorting competition when raising financing for environmentally sustainable economic activities, the technical screening criteria should ensure that all relevant economic activities within macro-sectors (i.e. NACE sectors such as agriculture, forestry and fishing, manufacturing, electricity, gas, steam and air conditioning supply, construction, transportation and storage services) can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this Regulation, while not significant harming any other environmental objectives under Articles 3 and 12. The potential capacity to contribute towards those environmental objectives may however vary across sectors, which should be reflected in the screening criteria. However, within each economic macro-sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter, while not significantly harming any other environmental objectives referred to in Articles 3 and 12.
Amendment 26
Proposal for a regulation
Recital 27 a (new)
(27a)  Environmentally sustainable activities are the result of technologies and products developed all along the value-chain. For this reason, the technical screening criteria should consider the role of the whole value-chain, from the processing of raw materials to the final product and its waste phase, in the final delivery of environmentally sustainable activities.
Amendment 27
Proposal for a regulation
Recital 27 b (new)
(27b)   To avoid disrupting well-functioning value-chains, the technical screening criteria should consider that environmentally sustainable activities are enabled by technologies and products developed by multiple economic actors.
Amendment 28
Proposal for a regulation
Recital 28
(28)  When establishing technical screening criteria, the Commission should assess whether adoption of those criteria for environmentally sustainable activities would give rise to stranded assets or deliver inconsistent incentives, and whether it would have any negative impact on liquidity in financial markets.
(28)  When establishing technical screening criteria, the Commission should assess potential transition risks, whether the pace of the adoption of those criteria for environmentally sustainable activities would give rise to stranded assets or deliver inconsistent incentives.
Amendment 29
Proposal for a regulation
Recital 30
(30)  To ensure that investments are channelled towards economic activities that make the biggest positive impact on the environmental objectives, the Commission should give priority to the establishment of technical screening criteria for the economic activities that potentially contribute most to the environmental objectives.
(30)  To ensure that investments are channelled towards economic activities that make the biggest positive impact on the environmental objectives, the Commission should give priority to the establishment of technical screening criteria for the economic activities that potentially contribute most to the environmental objectives. Screening criteria should take into account the outcomes of projects to facilitate the identification and development of new technologies as well as to take into account of the scalability of these technologies.
Amendment 30
Proposal for a regulation
Recital 31
(31)  Appropriate technical screening criteria should be established for the transport sector, including for mobile assets, which should take into account that the transport sector, including international shipping, contributes close to 26% of total greenhouse gas emissions in the Union. As evidenced in the Action Plan on Financing Sustainable Growth48 the transport sector represents about 30% of additional annual investment needs for sustainable development in the Union, including by increasing electrification or transition to cleaner modes of transport by promoting modal shift and traffic management.
(31)  Appropriate technical screening criteria should be established for the transport sector, including for mobile assets, which should take into account the entire life cycle of technologies and that the transport sector, including international shipping, contributes close to 26% of total greenhouse gas emissions in the Union. As evidenced in the Action Plan on Financing Sustainable Growth48 the transport sector represents about 30% of additional annual investment needs for sustainable development in the Union, including by increasing electrification or transition to cleaner modes of transport by promoting modal shift and traffic management.
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48 COM(2018)0097.
48 COM(2018)0097.
Amendment 31
Proposal for a regulation
Recital 32
(32)  It is of particular importance that the Commission when preparing the development of the technical screening criteria, carry out appropriate consultations in line with Better Regulation requirements. The process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas. For that purpose, the Commission should set up a Platform on sustainable finance. This Platform should be composed of experts representing both the public and the private sector. Public sector representatives should include experts from the European Environmental Agency, the European Supervisory Authorities and the European Investment Bank. Private sector experts should include representatives of relevant stakeholders, including financial market actors, universities, research institutes, associations and organisations. The Platform should advise the Commission on the development, analysis and review of technical screening criteria, including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices. The Platform should also advise the Commission on whether the technical screening criteria are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.
(32)  It is of particular importance that the Commission when preparing the development of the technical screening criteria, carry out appropriate consultations in line with Better Regulation requirements. The process for the establishment and the update of the technical screening criteria and the harmonised indicators should also involve relevant stakeholders and build on scientific evidence, socio-economic impact, best practice and existing work and entities, notably, the European Commission Circular Economy Platform, and the advice of experts with proven knowledge and global experience in the relevant areas. For that purpose, the Commission should set up a Platform on sustainable finance. This Platform should be composed of a wide range of experts representing both the public and the private sector to ensure that the specificities of all relevant sectors are duly taken into account. Public sector representatives should include experts from the European Environmental Agency and national environment protection agencies, the European Supervisory Authorities the European Financial Reporting Advisory Group, and the European Investment Bank. Private sector experts should include representatives of relevant stakeholders, including financial and non-financial market actors, representatives of the real economy representing a wide range of industries, universities, research institutes, associations and organisations. Where necessary the Platform should be allowed to request advice from non-members. The Platform should advise the Commission on the development, analysis and review of technical screening criteria and harmonised indicators, including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered sustainable under existing market practices. The Platform should also advise the Commission on whether the technical screening criteria and indicators are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment. The Platform should advise the Commission on the development of sustainability accounting standards and integrated reporting standards for corporates and financial market participants, including through the revision of Directive 2013/34/EU.
Amendment 32
Proposal for a regulation
Recital 33
(33)  In order to specify the requirements set out in this Regulation, and particularly to establish and update granular and calibrated technical screening criteria for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the information required to comply with the disclosure obligation set out in Article 4 (3), and the technical screening criteria mentioned in Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2). It is of particular importance that the Commission carry 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 on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and the experts of the European Parliament and the Council should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
(33)  In order to specify the requirements set out in this Regulation, and particularly to establish and update granular and calibrated technical screening criteria and indicators for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the information required to comply with the disclosure obligation set out in Article 4 (3), and the technical screening criteria mentioned in Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2). It is of particular importance that the Commission carry out appropriate public 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 on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and the experts of the European Parliament and the Council should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
Amendment 33
Proposal for a regulation
Recital 35
(35)  The application of this Regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally sustainable activities, the use of the definition of environmentally sustainable investment, and whether compliance with the obligations requires the establishment of a verification mechanism. The review should include also an assessment of whether the scope of this Regulation should be extended to cover social sustainability objectives.
(35)  The application of this Regulation should be reviewed regularly and at least after two years in order to assess the progress on the development of technical screening criteria and harmonised indicators for environmentally sustainable and environmentally harmful activities, the use of the definition of environmentally sustainable investment or investments having a negative environmental impact, and whether compliance with the obligations requires the establishment of further verification mechanism. The review should include also an assessment of the provisions required for extending the scope of this Regulation to cover social sustainability objectives. By 31 March 2020, the Commission should, where appropriate, publish further legislative proposals on the establishment of a verification mechanism of compliance.
Amendment 34
Proposal for a regulation
Recital 36
(36)  Since the objectives of this Regulation cannot be sufficiently achieved by the Member States, but can be better achieved at Union level, by reason of the need to introduce at Union level uniform criteria for environmentally sustainable economic activities, 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,
(36)  Since the objectives of this Regulation cannot be sufficiently achieved by the Member States, but can be better achieved at Union level, by reason of the need to introduce at Union level uniform criteria and indicators for environmentally sustainable economic activities, 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,
Amendments 35, 55, 59, 87 and 96
Proposal for a regulation
Article 1
Article 1
Article 1
Subject matter and scope
Subject matter and scope
1.  This Regulation establishes the criteria for determining whether an economic activity is environmentally sustainable for the purposes of establishing the degree of environmental sustainability of an investment.
1.  This Regulation establishes the criteria for determining the degree of environmental impact and sustainability of an economic activity for the purposes of establishing the degree of environmental sustainability of an investment.
2.  This Regulation applies to the following:
2.  This Regulation applies to the following:
(a)  measures adopted by Member States or by the Union setting out any requirements on market actors in respect of financial products or corporate bonds that are marketed as environmentally sustainable.
(a)  measures adopted by Member States or by the Union setting out any requirements on financial market participants in respect of financial products or corporate bonds that are marketed within the Union as environmentally sustainable.
(b)  financial market participants offering financial products as environmentally sustainable investments or as investments having similar characteristics.
(b)  financial market participants offering within the Union financial products as environmentally sustainable investments or as investments having similar characteristics, and
(ba)   financial market participants offering other financial products except where:
i.  they provide explanations, supported by reasonable proof to the satisfaction of the relevant competent authorities, that the economic activities funded by its financial products do not have any significant sustainability impact according to the technical screening criteria referred to in Art 3 and 3a, in which case the provisions of Chapter II and III shall not apply. Such information shall be provided in its prospectus, or
ii.  the financial market participant declares in its prospectus that the financial product in question does not pursue sustainability objectives and that the product is at an increased risk of supporting economic activities that are not considered sustainable under this regulation.
2a.  The criteria referred to in Article 1(1) shall be applied in a proportionate manner, avoiding excessive administrative burden , and taking into account the nature, scale and complexity of the financial market participant and credit institutions by means of simplified provisions for small and non-complex entities in conformity with the provisions of Article 4 paragraph 2d.
2b.  The criteria referred to in the first paragraph of this Article may be used for the purpose mentioned in that paragraph by undertakings not covered by Article 1(2) or with respect to other financial instruments than those defined in Article 2 on a voluntary basis,
2c.  The Commission shall adopt a delegated act for the purpose of specifying the information that financial market participants shall submit to the relevant competent authorities for the purpose of point (a) of paragraph 2 of this Article.
Amendments 36, 88 and 89
Proposal for a regulation
Article 2
Article 2
Article 2
Definitions
Definitions
1.  For the purposes of this Regulation, the following definitions shall apply:
1.  For the purposes of this Regulation, the following definitions shall apply:
(a)   ‘environmentally sustainable investment’ means an investment that funds one or several economic activities that qualify under this Regulation as environmentally sustainable;
(a)  ‘environmentally sustainable investment’ means an investment that funds one or several economic activities that qualify under this Regulation as environmentally sustainable;
(b)  ‘financial market participants’ mean financial market participants as defined in Article 2 (a) of [Commission proposal for a Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341];
(b)  ‘financial market participants’ mean any of the following, as defined in Article 2 (a) of [Commission proposal for a Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341]:,;
(i)  a credit institution as defined in point (1) of Article 4 (1) of Regulation (EU) No 575/2013 defined under [PO insert reference to relevant Article] of Regulation (EU) No 575/2013];
(ba)   'issuer' means a listed issuer as defined in point (h) of Article 2(1) of Directive 2003/71/EC of the European Parliament and of the Council1a and point (h) of Article 2 of Regulation (EU) 2017/1129 of the European Parliament and of the Council1b;
(c)  'financial products' mean financial products as defined in Article 2 (j) of [Commission proposal for a Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341];
(c)  'financial products' means a portfolio management, an AIF, an IBIP, a pension product, a pension scheme or a UCITS, a corporate bond, as defined in Article 2 (j) of [Commission proposal for a Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341], as well as issuances referred to in Directive 2003/71/EC and Regulation (EU)2017/1129);
(ca)  ‘environmental indicators’ means, at minimum, the measurement of consumption of recourses, such as raw materials, energy, renewable energy, water, impact on ecosystem services, emissions including CO2, impact on biodiversity and land use and production of waste, based on scientific evidence, the Commission Life Cycle Assessment methodology and as laid out in the Commission’s monitoring framework on the circular economy (COM/2018/29 final;
(cb)  'relevant national competent authority' means the competent or supervisory authority, or authorities, in the Member States as specified in the Union acts referred to in Article 1(2) of Regulation (EU) No 1095/2010, of Regulation (EU) No1093/2010 and of Regulation (EU) No 1094/2010, which cover in their scope the category of financial market participant subject to the disclosure requirement referred to in Article 4 of this Regulation;
(cc)  'relevant ESA' means the European Supervisory Authority, or European Supervisory Authorities, specified in the Union acts referred to in Article 1(2) of Regulation (EU) No 1093/2010, of Regulation (EU) No 1094/2010 and/or of Regulation (EU) No 1095/2010, which cover in their scope the category of financial market participant subject to the disclosure requirement referred to in Article 4 of this Regulation;
(d)  'climate change mitigation' means the process of holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and limiting the temperature increase to 1.5 °C above pre-industrial levels;
(d)  'climate change mitigation' means the processes, including transitional measures, required for holding the increase in the global average temperature to well below 2°C and pursuing efforts to limit it to 1.5°C above pre-industrial levels, as laid down the Paris Agreement;
(e)  ‘climate change adaptation’ means the process of adjustment to actual and expected climate and its effects;
(e)  ‘climate change adaptation’ means the process of adjustment to actual and expected climate change and its effects;
(f)  'greenhouse gas' means a greenhouse gas listed in Annex I to Regulation (EU) No 525/2013 of the European Parliament and of the Council49;
(f)  'greenhouse gas' means a greenhouse gas listed in Annex I to Regulation (EU) No 525/2013 of the European Parliament and of the Council49;
(g)  'circular economy' means maintaining the value of products, materials and resources in the economy for as long as possible, and minimising waste, including through the application of the waste hierarchy as laid down in Article 4 of Directive 2008/98/EC of the European Parliament and of the Council50;
(g)  'circular economy' means maintaining the value and usage of products, materials and all other resources in the economy at their highest level for as long as possible, and thus reducing environmental impact and minimising waste, including through the application of the waste hierarchy as laid down in Article 4 of Directive 2008/98/EC of the European Parliament and of the Council50 and minimising the use of resources based on key circular economy indicators as set out in the monitoring framework on progress towards a circular economy, covering different stages of production, consumption, waste management.
(h)  'pollution' means:
(h)  'pollution' means:
(i)  the direct or indirect introduction, as a result of human activity, of substances, vibrations, heat, noise or other pollutants into air, water or land which may be harmful to human health or the quality of the environment, may result in damage to material property, or may impair or interfere with amenities and other legitimate uses of the environment;
(i)  the direct or indirect introduction, as a result of human activity, of substances, vibrations, heat, noise, light or other pollutants into air, water or land which may be harmful to human health or the quality of the environment, may result in damage to material property, or may impair or interfere with amenities and other legitimate uses of the environment;
(ii)  in the context of marine environment, pollution as defined in Article 3(8) of Directive 2008/56/EC of the European Parliament and of the Council51;
(ii)  in the context of marine environment, pollution as defined in Article 3(8) of Directive 2008/56/EC of the European Parliament and of the Council51;
(iia)   in the context of water environment, pollution as defined in Article 2 (33) of Directive 2000/60/EC.
(i)  'healthy ecosystem' means an ecosystem that is in a good physical, chemical and biological condition or of a good physical, chemical and biological quality;
(i)  'healthy ecosystem' means an ecosystem that is in a good physical, chemical and biological condition or of a good physical, chemical and biological quality and that is capable of self-reproduction or self-restoration to equilibrium and that preserves biodiversity;
(j)  'energy efficiency' means using energy more efficiently at all the stages of the energy chain from production to final consumption;
(j)  'energy efficiency' means using energy more efficiently at all the stages of the energy chain from production to final consumption;
(k)  ‘good environmental status’ means good environmental status as defined in Article 3(5) of Directive 2008/56/EC;
(k)  ‘good environmental status’ means good environmental status as defined in Article 3(5) of Directive 2008/56/EC;
(l)  ‘marine waters’ means marine waters as defined in Article 3(1) of Directive 2008/56/EC;
(l)  ‘marine waters’ means marine waters as defined in Article 3(1) of Directive 2008/56/EC;
(m)  ‘surface water’, ‘inland water’, ‘transitional waters’ and ‘coastal water’ shall have the same meaning as in points (1), (3), (6) and (7) of Article 2 of Directive 2000/60/EC52;
(m)  ‘surface water’, ‘inland water’, ‘transitional waters’ and ‘coastal water’ shall have the same meaning as in points (1), (3), (6) and (7) of Article 2 of Directive 2000/60/EC52;
(n)  'sustainable forest management' means using forests and forest land in a way, and at a rate, that maintains their biodiversity, productivity, regeneration capacity, vitality and their potential to fulfil, now and in the future, relevant ecological, economic and social functions, at local, national, and global levels, and that does not cause damage to other ecosystems.
(n)  'sustainable forest management' means using forests and forest land in accordance with applicable legislation.
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1a Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC (OJ L 345, 31.12.2003, p. 64).
1b Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (OJ L 168, 30.6.2017, p. 12).
49 Regulation (EU) No 525/2013 of the European Parliament and of the Council on a mechanism for monitoring and reporting greenhouse gas emissions and for reporting other information at national and Union level relevant to climate change and repealing Decision 280/2004/EC (OJ L 165, 18.6.2013, p. 13).
49 Regulation (EU) No 525/2013 of the European Parliament and of the Council on a mechanism for monitoring and reporting greenhouse gas emissions and for reporting other information at national and Union level relevant to climate change and repealing Decision 280/2004/EC (OJ L 165, 18.6.2013, p. 13).
50 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3).
50 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3).
51 Directive 2008/56/EC of the European Parliament and of the Council of 17 June 2008 establishing a framework for community action in the field of marine environmental policy (Marine Strategy Framework Directive) (OJ L 164, 25.6.2008, p. 19–40).
51 Directive 2008/56/EC of the European Parliament and of the Council of 17 June 2008 establishing a framework for community action in the field of marine environmental policy (Marine Strategy Framework Directive) (OJ L 164, 25.6.2008, p. 19–40).
52 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p.1).
52 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p.1).
Amendment 37
Proposal for a regulation
Article 3
Article 3
Article 3
Criteria for environmentally sustainable economic activities
Criteria for environmentally sustainable economic activities
For the purposes of establishing the degree of environmental sustainability of an investment, an economic activity shall be environmentally sustainable where that activity complies with all of the following criteria:
For the purposes of establishing the degree of environmental sustainability of an investment, an economic activity shall be environmentally sustainable where that activity complies with all of the following criteria:
(a)  the economic activity contributes substantially to one or more of the environmental objectives set out in Article 5 in accordance with Articles 6 to 11;
(a)  the economic activity contributes substantially to one or more of the environmental objectives set out in Article 5 in accordance with Articles 6 to 11;
(b)  the economic activity does not significantly harm any of the environmental objectives set out in Article 5 in accordance with Article 12;
(b)  the economic activity does not significantly harm any of the environmental objectives set out in Article 5 in accordance with Article 12;
(c)  the economic activity is carried out in compliance with the minimum safeguards laid down in Article 13;
(c)  the economic activity is carried out in compliance with the minimum safeguards laid down in Article 13;
(d)  the economic activity complies with technical screening criteria, where the Commission has specified those in accordance with Articles 6(2), 7(2), 8(2), 9(2), 10(2) and 11(2).
(d)  the economic activity complies with technical screening criteria, where the Commission has specified those on the basis of harmonised measuring sustainability impact at company or plan levels belonging to the economic activity and in accordance with Articles 6(2), 7(2), 8(2), 9(2), 10(2) and 11(2).
Amendment 38
Proposal for a regulation
Article 3 a (new)
Article 3a
Criteria for economic activities with a significant negative environmental impact
By 31 December 2021, the Commission shall conduct an impact assessment on the consequences of revising this Regulation to expand the framework for sustainable investments with a framework that is used to define criteria for when and how an economic activity has a significant negative impact on sustainability.
Amendment 39
Proposal for a regulation
Article 4
Article 4
Article 4
Use of the criteria for environmentally sustainable economic activities
Application of and compliance with the criteria for determining the degree of environmental sustainability of economic activities
1.  Member States shall apply the criteria for determining environmentally sustainable economic activities set out in Article 3 for the purposes of any measures setting out requirements on market actors in respect of financial products or corporate bonds that are marketed as ‘environmentally sustainable’.
1.  Member States and the Union shall apply the criteria for determining the degree of environmental sustainability of economic activities set out in Article 3 for the purposes of any measures setting out sustainability requirements on market actors in respect of financial products or corporate bonds.
2.  Financial market participants offering financial products as environmentally sustainable investments, or as investments having similar characteristics, shall disclose information on how and to what extent the criteria for environmentally sustainable economic activities set out in Article 3 are used to determine the environmental sustainability of the investment. Where financial market participants consider that an economic activity which does not comply with the technical screening criteria set out in accordance with this Regulation or for which those technical screening criteria have not been established yet, should be considered environmentally sustainable, they may inform the Commission.
2.  Financial market participants offering financial products or corporate bonds shall disclose the relevant information allowing them to establish whether the products they offer qualify as environmentally sustainable investments pursuant to the criteria of Article 3. Where financial market participants consider that an economic activity for which technical screening criteria have not been established yet, should be considered environmentally sustainable, they shall inform the Commission. The Commission shall, if appropriate, notify the Platform on sustainable Finance referred to in Article 15 of such requests by the financial market participants. Financial market participants shall not offer financial products as environmentally sustainable investments, or as investments having similar characteristics, if those products do not qualify as environmentally sustainable.
2a.   Member States, in close cooperation with the relevant ESA, shall monitor the information referred to in paragraph 2. Financial market participants shall report it to the relevant national competent authority which shall communicate it to the relevant ESA without delay. Whenever the relevant national competent authority or the relevant ESA disagree with the information reported as referred to in paragraphs 2 and 2a, financial market participants shall review and correct the information disclosed.
2b.  The disclosure of information referred to in Article 4 shall be consistent with the principles of fair, clear and none misleading information included in Directive (EU) 2014/65/EU and in Directive (EU) 2016/97 and intervention powers referred to in Article 4 paragraph 2c consistent with those included in Regulation No 600/2014.
2c.  No disclosure requirements under the [PO please insert reference to Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341] shall be required in this Regulation;
2d.  Small and non-complex undertakings referred to in Article 2.2b and 2.2 c shall be subject to simplified provisions.
3.  The Commission shall adopt delegated acts in accordance with Article 16 to supplement paragraph 2 to specify the information required to comply with that paragraph, taking into account the technical screening criteria set out in accordance with this Regulation. That information shall enable investors to identify:
3.  The Commission shall adopt delegated acts in accordance with Article 16 to supplement paragraph 2, 2a and 2b to specify the information required to comply with these paragraphs, including a list of investments having similar characteristics as sustainable investments and the relevant qualification thresholds for the purpose of paragraph 2 taking into account the availability of relevant information and the technical screening criteria set out in accordance with this Regulation. That information shall enable investors to identify:
(a)  the percentage of holdings pertaining to companies carrying out environmentally sustainable economic activities;
(a)  the percentage of holdings in different companies carrying out environmentally sustainable economic activities;
(b)  the share of the investment funding environmentally sustainable economic activities as a percentage of all economic activities.
(b)  the share of the investment funding environmentally sustainable economic activities as a percentage of all economic activities.
(ba)  the relevant definitions of small and non-complex undertakings referred to in Article 2 b as well the simplified provisions that apply to these entities.
3a.  Financial market participants shall publish the information referred to in points (a) and (b) of paragraph 3.
4.  The Commission shall adopt the delegated act in accordance with paragraph 3 by 31 December 2019 with a view to ensure its entry into application on 1 July 2020. The Commission may amend that delegated act, in particular in the light of amendments to the delegated acts adopted in accordance with Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2).
4.  The Commission shall adopt the delegated act in accordance with paragraph 3 by 31 December 2019 with a view to ensure its entry into application on 1 July 2020. The Commission may amend that delegated act, in particular in the light of amendments to the delegated acts adopted in accordance with Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2).
Amendment 40
Proposal for a regulation
Article 4 a (new)
Article 4a
Market monitoring
1.  In accordance with Article 9(2) of Regulation (EU) No 1093/2010, Regulation (EU) No 1094/2010, Regulation (EU) No 1095/2010, the relevant ESA shall monitor the market for financial products referred to in Article 1 of this Regulation, which are marketed, distributed or sold in the Union.
2.  Competent authorities shall monitor the market for financial products which are marketed, distributed or sold in or from their Member State.
3.  In accordance with Article 9(5) of Regulations (EU) No 1093/2010, No 1094/2010, No 1095/2010, the relevant ESA may, where there is a breach of this Regulation by the entities referred to in Article 1, temporarily prohibit or restrict in the Union the marketing, distribution or sale of the financial products referred to in Article 1;
A prohibition or restriction referred to in Art 3 may apply in circumstances, or be subject to exceptions, specified by the relevant ESA.
4.  When taking action under this Article, the relevant ESA shall ensure that the action:
(a)  does not have a detrimental effect on the efficiency of financial markets or on investors that is disproportionate to the benefits of the action, and
(b)  does not create a risk of regulatory arbitrage;
Where a competent authority or competent authorities have taken a measure under this Article, the relevant ESA may take any of the measures referred to in paragraph 1.
5.  Before deciding to take any action under this Article, the relevant ESA shall notify competent authorities of the action it proposes.
6.  The relevant ESA shall review a prohibition or restriction imposed under paragraph 1 at appropriate intervals and at least every three months. If the prohibition or restriction is not renewed after that three-month period it shall expire.
7.  Action adopted by the relevant ESA under this Article shall prevail over any previous action taken by a competent authority
Amendment 41
Proposal for a regulation
Article 5
Article 5
Article 5
Environmental objectives
Sustainability objectives
For the purposes of this Regulation, the following shall be environmental objectives:
1.  For the purposes of this Regulation, the following shall be environmental objectives:
(1)  climate change mitigation;
(1)  climate change mitigation;
(2)  climate change adaptation
(2)  climate change adaptation
(3)  sustainable use and protection of water and marine resources
(3)  sustainable use and protection of water and marine resources
(4)  transition to a circular economy, waste prevention and recycling;
(4)  transition to a circular economy, including waste prevention and increasing the uptake of secondary raw materials;
(5)  pollution prevention and control;
(5)  pollution prevention and control;
(6)  protection of healthy ecosystems.
(6)  protection of biodiversity and healthy ecosystems, and restoration of degraded ecosystems.
1a.  The objectives set out in the first paragraph shall be measured by harmonised indicators, life cycle analysis and scientific criteria, and be fulfilled ensuring they are up to scale to the upcoming environmental challenges.
Amendments 42,66 and 99
Proposal for a regulation
Article 6
Article 6
Article 6
Substantial contribution to climate change mitigation
Substantial contribution to climate change mitigation
1.  An economic activity shall be considered to contribute substantially to climate change mitigation where that activity substantially contributes to the stabilization of greenhouse gas concentrations in the atmosphere at a level which prevents dangerous anthropogenic interference with the climate system by avoiding or reducing greenhouse gas emissions or enhancing greenhouse gas removals through any of the following means, including through process or product innovation:
1.  An economic activity shall be considered to contribute substantially to climate change mitigation where that activity substantially contributes to the stabilization of greenhouse gas concentrations in the atmosphere at a level which prevents dangerous anthropogenic interference with the climate system by avoiding or reducing greenhouse gas emissions or enhancing greenhouse gas removals through any of the following means, including through process or product innovation:
(a)  generating, storing or using renewable energy or climate-neutral energy (including carbon-neutral energy), including through using innovative technology with a potential for significant future savings or through necessary reinforcement of the grid;
(a)  generating, storing, distributing or using renewable energy in line with the Renewable Energy Directive, including through using innovative technology with a potential for significant future savings or through necessary reinforcement of the grid;
(b)  improving energy efficiency;
(b)  improving energy efficiency in all sectors, except energy generation using solid fossil fuels, and at all stages of the energy chain, in order to reduce primary and final energy consumption;
(c)  increasing clean or climate-neutral mobility;
(c)  increasing clean or climate neutral mobility;
(d)  switching to use of renewable materials;
(d)  switching to or increasing the use of use environmentally sustainable renewable materials based on a full life cycle assessment and substituting particularly fossil-based materials, which delivers near term greenhouse gas emissions savings;
(e)  increasing carbon capture and storage use;
(e)  increasing the use of environmentally safe carbon capture and utilisation (CCU) and carbon capture and storage (CCS) technologies that deliver a net reduction in emissions;
(f)  phasing out anthropogenic emissions of greenhouse gases, including from fossil fuels;
(f)  phasing out anthropogenic emissions of greenhouse gases;
(fa)  increasing the removal of CO2 from the atmosphere and its storage in natural ecosystems, for example through afforestation, the restoration of forests and regenerative agriculture;
(g)  establishing energy infrastructure required for enabling decarbonisation of energy systems;
(g)  establishing energy infrastructure required for enabling decarbonisation of energy systems;
(h)  producing clean and efficient fuels from renewable or carbon-neutral sources.
(h)  producing clean and efficient fuels from renewable or carbon-neutral sources.
2.  The Commission shall adopt delegated acts in accordance with Article 16 to:
2.  The Commission shall adopt delegated acts in accordance with Article 16 to:
(a)  supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to climate change mitigation;
(a)  supplement paragraph 1 to establish technical screening criteria based on indicators, for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to climate change mitigation. Those technical screening criteria shall include thresholds for mitigation activities in line with the objective to limit global warming to well below 2°C and pursuing efforts to limit it to 1.5°C above pre-industrial levels, as laid down the Paris Agreement ,
(b)  supplement Article 12 to establish technical screening criteria, for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objectives.
(b)  supplement Article 12 to establish technical screening criteria based on indicators for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria based on indicators are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objectives.
3.  The Commission shall establish the technical screening criteria referred to in paragraph 2 in one delegated act, taking into account the requirements laid down in Article 14.
3.  The Commission shall establish the technical screening criteria based on indicators referred to in paragraph 2 in one delegated act, taking into account the requirements laid down in Article 14.
4.  The Commission shall adopt the delegated act referred to in paragraph 2 by 31 December 2019, with a view to ensure its entry into application on 1 July 2020.
4.  The Commission shall adopt the delegated act referred to in paragraph 2 by 31 December 2019, with a view to ensure its entry into application on 1 July 2020.
Amendment 43
Proposal for a regulation
Article 7
Article 7
Article 7
Substantial contribution to climate change adaptation
Substantial contribution to climate change adaptation
1.  An economic activity shall be considered to contribute substantially to climate change adaptation where that activity contributes substantially to reducing the negative effects of the current and expected future climate or preventing an increase or shifting of negative effects of climate change, through the following means:
1.  An economic activity shall be considered to contribute substantially to climate change adaptation where that activity contributes substantially to reducing the negative effects of the current and expected future climate or preventing an increase or shifting of negative effects of climate change, through the following means:
(a)  preventing or reducing the location- and context-specific negative effects of climate change, which shall be assessed and prioritised using available climate projections, on the economic activity;
(a)  preventing or reducing the location- and context-specific negative effects of climate change, which shall be assessed and prioritised using available climate projections, on the economic activity;
(b)  preventing or reducing the negative effects that climate change may pose to the natural and built environment within which the economic activity takes place, which shall be assessed and prioritised using available climate projections.
(b)  preventing or reducing the negative effects that climate change may pose to the natural and built environment within which the economic activity takes place, which shall be assessed and prioritised using available climate projections and studies on the human impact on climate change.
2.  The Commission shall adopt a delegated act in accordance with Article 16 to:
2.  The Commission shall adopt a delegated act in accordance with Article 16 to:
(a)  supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to climate change adaptation;
(a)  supplement paragraph 1 to establish technical screening criteria based on indicators for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to climate change adaptation;
(b)  supplement Article 12 to establish technical screening criteria, for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objectives.
(b)  supplement Article 12 to establish technical screening criteria based on indicators, for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria based on indicators are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objectives.
3.  The Commission shall establish the technical screening criteria referred to in paragraph 2 together in one delegated act, taking into account the requirements laid down in Article 14.
3.  The Commission shall establish the technical screening criteria based on indicators referred to in paragraph 2 together in one delegated act, taking into account the requirements laid down in Article 14.
4.  The Commission shall adopt the delegated act referred to in paragraph 2 by 31 December 2019, with a view to ensure its entry into application on 1 July 2020.
4.  The Commission shall adopt the delegated act referred to in paragraph 2 by 31 December 2019, with a view to ensure its entry into application on 1 July 2020.
Amendment 44
Proposal for a regulation
Article 8
Article 8
Article 8
Substantial contribution to sustainable use and protection of water and marine resources
Substantial contribution to sustainable use and protection of water and marine resources
1.  An economic activity shall be considered to be contributing substantially to sustainable use and protection of water and marine resources where that activity substantially contributes to the good status of waters, including freshwater, transitional waters and coastal waters, or to the good environmental status of marine waters, through any of the following means:
1.  An economic activity shall be considered to be contributing substantially to sustainable use and protection of water bodies and marine waters where that activity substantially contributes to the good status of waters, including inland surface waters, estuaries and coastal waters, or to the good environmental status of marine waters, where that activity takes adequate measures to restore, protect or maintain the biological diversity, productivity, resilience, value and the overall health of marine ecosystem, as well of the livelihoods of communities dependent upon them, through any of the following means:
(a)  protecting the aquatic environment from the adverse effects of urban and industrial waste water discharges by ensuring adequate collection and treatment of urban and industrial waste waters in accordance with Articles 3, 4, 5 and 11 of Council Directive 91/271/EEC53;
(a)  protecting the aquatic environment, including bathing water (riparian and sea water), from the adverse effects of urban and industrial waste water discharges, including plastics, by ensuring adequate collection and treatment of urban and industrial waste waters in accordance with Articles 3, 4, 5 and 11 of Council Directive 91/271/EEC53 or in accordance with the best available technique set out in the Directive 2010/75/EU,
(aa)  protecting the aquatic environment from the adverse effects of at sea emissions and discharges in accordance with IMO based conventions such as MARPOL, as well as conventions not covered under MARPOL such as the Ballast Water Management Convention and the Regional Seas Conventions;
(b)  protecting human health from the adverse effects of any contamination of drinking water by ensuring that it is free from any micro-organisms, parasites and a substances that constitute a potential danger to human health, and that it meets the minimum requirements set out in Annex I, Parts A and B, to Council Directive 98/83/EC54, and increasing citizens' access to clean drinking water;
(b)  protecting human health from the adverse effects of any contamination of drinking water by ensuring that it is free from any micro-organisms, parasites and substances that constitute a potential danger to human health, and verifying that it meets the minimum requirements set out in Annex I, Parts A and B, to Council Directive 98/83/EC54, and increasing citizens' access to clean drinking water;
(c)  abstracting water in keeping with the objective of good quantitative status as defined in table 2.1.2 in Annex V to Directive 2000/60/EC;
(c)  abstracting water in keeping with the objective of good quantitative status as defined in table 2.1.2 in Annex V to Directive 2000/60/EC;
(d)  improving water efficiency, facilitating water reuse, or any other activity that protects or improves quality of Union’s water bodies in accordance with Directive 2000/60/EC;
(d)  improving water management and efficiency, facilitating water reuse, systems of rainwater management or any other activity that protects or improves quality and quantity of the Union’s water bodies in accordance with Directive 2000/60/EC;
(e)  ensuring the sustainable use of marine ecosystem services or contributing to good environmental status of marine waters, as determined on the basis of the qualitative descriptors set out in Annex I to Directive 2008/56/EC and as further specified in Commission Decision (EU) 2017/84855.
(e)  ensuring the sustainable use of marine ecosystem services or contributing to good environmental status of marine waters, as determined on the basis of the qualitative descriptors set out in Annex I to Directive 2008/56/EC and as further specified in Commission Decision (EU) 2017/84855.
2.  The Commission shall adopt a delegated act in accordance with Article 16 to:
2.  The Commission shall adopt a delegated act in accordance with Article 16 to:
(a)  supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to sustainable use and protection of water and marine resources;
(a)  supplement paragraph 1 to establish technical screening criteria based on indicators for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to sustainable use and protection of water and marine resources;
(b)  supplement Article 12 to establish technical screening criteria, for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objectives.
(b)  supplement Article 12 to establish technical screening criteria based on indicators, for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria based on indicators are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objectives.
3.  The Commission shall establish the technical screening criteria referred to in paragraph 2 together in one delegated, and taking into account the requirements laid down in Article 14.
3.  The Commission shall establish the technical screening criteria referred to in paragraph 2 together in one delegated, and taking into account the requirements laid down in Article 14.
4.  The Commission shall adopt the delegated act referred to in paragraph 2 by 1 July 2022, with a view to ensure its entry into application on 31 December 2022.
4.  The Commission shall adopt the delegated act referred to in paragraph 2 by 1 July 2022, with a view to ensure its entry into application on 31 December 2022.
_________________
_________________
53 Council Directive 91/271/EEC of 21 May 1991 concerning urban waste water treatment (OJ L 135, 30.5.1991, p. 40).
53 Council Directive 91/271/EEC of 21 May 1991 concerning urban waste water treatment (OJ L 135, 30.5.1991, p. 40).
54 Council Directive 98/83/EC of 3 November 1998 on the quality of water intended for human consumption (OJ L 330, 5.12.1998, p. 32).
54 Council Directive 98/83/EC of 3 November 1998 on the quality of water intended for human consumption (OJ L 330, 5.12.1998, p. 32).
55 Commission Decision (EU) 2017/848 of 17 May 2017 laying down criteria and methodological standards on good environmental status of marine waters and specifications and standardised methods for monitoring and assessment, and repealing Decision 2010/477/EU (OJ L 125, 18.5.2017, p. 43).
55 Commission Decision (EU) 2017/848 of 17 May 2017 laying down criteria and methodological standards on good environmental status of marine waters and specifications and standardised methods for monitoring and assessment, and repealing Decision 2010/477/EU (OJ L 125, 18.5.2017, p. 43).
Amendment 45
Proposal for a regulation
Article 9
Article 9
Article 9
Substantial contribution to the circular economy and waste prevention and recycling
Substantial contribution to the circular economy, including waste prevention and increasing the uptake of secondary raw materials
1.  An economic activity shall be considered to contribute substantially to the transition to a circular economy and waste prevention and recycling where that activity contributes substantially to that environmental objective through any of the following means:
1.  An economic activity shall be considered to contribute substantially to the transition to a circular economy, including waste prevention, re-use and recycling, covering the entire life cycle of a product or economic activity in different stages of production, consumption and end of use, where that activity, in line with the EU acquis, contributes substantially to that environmental objective through any of the following means:
(a)  improving the efficient use of raw materials in production, including through reducing the use of primary raw materials and increasing the use of by-products and waste;
(a)  improving the efficient use of raw materials and resources in production, including through reducing the use of primary raw materials and increasing the use of by-products and secondary raw materials, thus supporting end of waste operations;
(b)  increasing the durability, reparability, upgradability or reusability of products;
(b)  designing, manufacturing and increasing the use of products that are resource-efficient, durable (including in terms of life span and absence of planned obsolescence), repairable, re-usable and upgradable;
(c)  increasing the recyclability of products, including of individual materials contained in products, inter alia through substitution or reduced use of products and materials that are not recyclable;
(c)  designing out of waste products and increasing the reusability and recyclability of products, including of individual materials contained in products, inter alia through substitution or reduced use of products and materials that are not recyclable;
(d)  reducing the content of hazardous substances in materials and products;
(d)  reducing the content of hazardous substances and substituting substances of very high concern in materials and products, in line with the harmonised legal requirements laid down at Union level, particularly, with the provisions laid down by EU legislation ensuring safe management of substances, materials and products and waste;
(e)  prolonging the use of products including through increasing reuse, remanufacturing, upgrading, repair and sharing of products by consumers;
(e)  prolonging the use of products including through increasing reuse, remanufacturing, upgrading, repair and sharing of products by consumers;
(f)  increasing the use of secondary raw materials and their quality, including through high-quality recycling of waste;
(f)  increasing the use of secondary raw materials and their quality, including through high-quality recycling of waste;
(g)  reducing waste generation;
(g)  reducing waste generation including waste generation in processes related to industrial production, extraction of minerals, manufacturing, construction and demolition;
(h)  increasing preparing for re-use and recycling of waste;
(h)  increasing preparing for re-use and recycling of waste in accordance with the waste hierarchy;
(ha)   increasing the development of waste management infrastructure needed for prevention, re-use and recycling;
(i)  avoiding incineration and disposal of waste;
(i)  avoiding incineration, disposal and landfilling of waste in line with the waste hierarchy;
(j)  avoiding and cleaning-up of litter and other pollution caused by improper waste management;
(j)  avoiding, reducing and cleaning-up of litter and other pollution including prevention and reduction of marine litter, caused by improper waste management;
(ja)   reducing the generation of food waste in primary production, in processing and manufacturing, in retail and other distribution of food, in restaurants and food services as well as in households;
(k)  using natural energy resources efficiently.
(k)  using natural energy resources, raw materials, water and land efficiently;
(ka)  fostering bio-economy through the sustainable use of renewable sources for the production of materials and commodities.
2.  The Commission shall adopt a delegated act in accordance with Article 16 to:
2.  The Commission shall adopt a delegated act in accordance with Article 16 to:
(a)  supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to the circular economy and waste prevention and recycling;
(a)  supplement paragraph 1 to establish technical screening criteria, based on the Commission's circular economy indicators, for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to the circular economy and waste prevention and recycling,
(b)  supplement Article 12 to establish technical screening criteria, for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objectives.
(b)  supplement Article 12 to establish technical screening criteria, based on the Commission's circular economy indicators, for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objectives.
3.  The Commission shall establish the technical screening criteria referred to in paragraph 2 together in one delegated act, taking into account the requirements laid down in Article 14.
3.  The Commission shall establish the technical screening criteria based on the Commission's circular economy indicators referred to in paragraph 2 together in one delegated act, taking into account the requirements laid down in Article 14.
4.  The Commission shall adopt the delegated act referred to in paragraph 2 by 1 July 2021, with a view to ensure its entry into application on 31 December 2021.
4.  The Commission shall adopt the delegated act referred to in paragraph 2 by 1 July 2021, with a view to ensure its entry into application on 31 December 2021.
Amendment 46
Proposal for a regulation
Article 10
Article 10
Article 10
Substantial contribution to pollution prevention and control
Substantial contribution to pollution prevention and control
1.  An economic activity shall be considered to contribute substantially to pollution prevention and control where that activity contributes to a high level of environmental protection from pollution through any of the following means:
1.  An economic activity shall be considered to contribute substantially to pollution prevention and control where that activity contributes substantially to environmental protection from pollution through any of the following means:
(a)  reducing air, water and soil pollutant emissions other than greenhouse gasses;
(a)  reducing air, water and soil pollutant emissions other than greenhouse gasses;
(b)  improving levels of air, water or soil quality in the areas in which the economic activity takes place whilst minimizing negative impacts on, and risks to, human health and the environment;
(b)  improving levels of air, water or soil quality in the areas in which the economic activity takes place whilst minimizing negative impacts on, and risks to, human health and the environment;
(c)  minimising significant adverse effects on human health and the environment of the production and use of chemicals
(c)  minimising significant adverse effects on human health and the environment of the production and use of chemicals
2.  The Commission shall adopt a delegated act in accordance with Article 16 to:
2.  The Commission shall adopt a delegated act in accordance with Article 16 to:
(a)  supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to pollution prevention and control;
(a)  supplement paragraph 1 to establish technical screening criteria based on indicators for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to pollution prevention and control;
(b)  supplement Article 12 to establish technical screening criteria, for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objectives.
(b)  supplement Article 12 to establish technical screening criteria based on indicators, for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objectives.
3.  The Commission shall establish the technical screening criteria referred to in paragraph 2 together in one delegated act, taking into account the requirements laid down in Article 14.
3.  The Commission shall establish the technical screening criteria referred to in paragraph 2 together in one delegated act, taking into account the requirements laid down in Article 14.
4.  The Commission shall adopt the delegated act referred to in paragraph 2 by 1 July 2021, with a view to ensure its entry into application on 31 December 2021.
4.  The Commission shall adopt the delegated act referred to in paragraph 2 by 1 July 2021, with a view to ensure its entry into application on 31 December 2021.
Amendment 47
Proposal for a regulation
Article 11
Article 11
Article 11
Substantial contribution to protection of healthy ecosystems
Substantial contribution to protection of biodiversity and healthy ecosystems or to restoration of degraded ecosystems
1.  For the purposes of this Regulation, an economic activity shall be considered to contribute substantially to healthy ecosystems where that activity contributes substantially to protecting, conserving and enhancing biodiversity and ecosystem services in line with the relevant legislative and non-legislative Union instruments, through any of the following means:
1.  For the purposes of this Regulation, an economic activity shall be considered to contribute substantially to biodiversity and healthy ecosystems or the restoration of degraded ecosystems where that activity contributes substantially to protecting, conserving and enhancing or restoring biodiversity and ecosystem services in line with the relevant legislative and non-legislative Union instruments, through any of the following means:
(a)  nature conservation (habitats, species); protecting, restoring and enhancing the condition of ecosystems and their capacity to provide services;
(a)  nature conservation measures to maintain or restore natural habitats and species of wild fauna and flora at favourable conservation status to reach adequate populations of naturally occurring species and measures to protect, restore and enhance the condition of ecosystems and their capacity to provide services;
(b)  sustainable land management, including adequate protection of soil biodiversity; land degradation neutrality; and the remediation of contaminated sites;
(b)  sustainable land management, including adequate protection of soil biodiversity; land degradation neutrality; and the remediation of contaminated sites;
(c)  sustainable agricultural practices, including those that contribute to halting or preventing deforestation and habitat loss;
(c)  sustainable agricultural practices, including those that contribute to halting or preventing deforestation and habitat loss;
(d)  sustainable forest management.
(d)  sustainable forest management, taking into account the EU Timber Regulation, the EU LULUCF Regulation, the EU Renewable Energy Directive (RED) and applicable national legislation, that is in line with these and the conclusions from the Ministerial Conference on the Protection of Forests in Europe (MCPFE).
2.  The Commission shall adopt a delegated act in accordance with Article 16 to:
2.  The Commission shall adopt a delegated act in accordance with Article 16 to:
(a)  supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to the protection of healthy ecosystems;
(a)  supplement paragraph 1 to establish technical screening criteria based on indicators for determining under which conditions a specific economic activity is considered, for the purposes of this Regulation, to contribute substantially to the protection of biodiversity and healthy ecosystems or restoration of degraded ecosystems.
(b)  supplement Article 12 to establish technical screening criteria, for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objectives.
(b)  supplement Article 12 to establish technical screening criteria based on indicators, for each relevant environmental objective, for determining whether an economic activity in respect of which screening criteria based on indicators are established pursuant to point (a) of this paragraph is considered, for the purposes of this Regulation, to cause significant harm to one or more of those objective