European Parliament legislative resolution of 17 April 2014 on the draft Council decision on the conclusion, on behalf of the European Union and its Member States, of the Protocol to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Albania, of the other part, to take account of the accession of the Republic of Croatia to the European Union (14783/2013 – C7-0075/2014 – 2013/0311(NLE))

P7_TA(2014)0445 A7-0266/2014

(Consent)

The European Parliament,

–  having regard to the draft Council decision (14783/2013),

–  having regard to the Protocol to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Albania, of the other part, to take account of the accession of the Republic of Croatia to the European Union (14782/2013),

–  having regard to the request for consent submitted by the Council in accordance with Article 217, in conjunction with point (a)(i) of Article 218(6) and the second subparagraph of Article 218(8) of the Treaty on the Functioning of the European Union (C7–0075/2014),

–  having regard to Rule 81(1), first and third subparagraphs, Rule 81(2), Rule 90(7) and Rule 46(1) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on Foreign Affairs (A7-0266/2014),

1.  Gives its consent to conclusion of the Protocol;

2.  Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of the Republic of Albania.

European Parliament legislative resolution of 17 April 2014 on the draft Council decision on the conclusion of the Arrangement between the European Union and the Kingdom of Norway on the modalities of its participation in the European Asylum Support Office (18141/2013 – C7-0107/2014 – 2013/0427(NLE))

P7_TA(2014)0446 A7-0257/2014

(Consent)

The European Parliament,

–  having regard to the draft Council decision (18141/2013),

–  having regard to the draft Arrangement between the European Union and the Kingdom of Norway on the modalities of its participation in the European Asylum Support Office (18140/2013),

–  having regard to the request for consent submitted by the Council in accordance with Articles 74 and 78(1) and (2) and Article 218(6), second subparagraph, point (a), of the Treaty on the Functioning of the European Union (C7-0107/2014),

–  having regard to Rule 81(1), first and third subparagraphs, Rule 81(2), and Rule 90(7) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on Civil Liberties, Justice and Home Affairs (A7-0257/2014),

1.  Gives its consent to the conclusion of the Arrangement;

2.  Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of the Kingdom of Norway.

European Parliament legislative resolution of 17 April 2014 on the draft Council decision on the conclusion of the Arrangement between the European Union and the Principality of Liechtenstein on the modalities of its participation in the European Asylum Support Office (18116/2013 – C7-0091/2014 – 2013/0423(NLE))

P7_TA(2014)0447 A7-0168/2014

(Consent)

The European Parliament,

–  having regard to the draft Council decision (18116/2013),

–  having regard to the draft Arrangement between the European Union and the Principality of Liechtenstein on the modalities of its participation in the European Asylum Support Office (18115/2013),

–  having regard to the request for consent submitted by the Council in accordance with Articles 74 and 78(1) and (2) and Article 218(6), second subparagraph, point (a), of the Treaty on the Functioning of the European Union (C7-0091/2014),

–  having regard to Rules 81 and 90(7) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on Civil Liberties, Justice and Home Affairs (A7-0168/2014),

1.  Consents to the conclusion of the Arrangement;

2.  Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of the Principality of Liechtenstein.

Amendments adopted by the European Parliament on 17 April 2014 on the proposal for a regulation of the European Parliament and of the Council on European Long-term Investment Funds (COM(2013)0462 – C7-0209/2013 – 2013/0214(COD))(1)

P7_TA(2014)0448 A7-0211/2014

(Ordinary legislative procedure: first reading)

[Amendment No 1 unless otherwise stated]

AMENDMENTS BY THE EUROPEAN PARLIAMENT(2)

P7_TA(2014)0448 A7-0211/2014

to the Commission proposal

P7_TA(2014)0448 A7-0211/2014

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

P7_TA(2014)0448 A7-0211/2014

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on European Long-term Investment Funds

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the European Commission,

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

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

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)  Long-term finance is a crucial enabling tool for putting the European economy on a path of sustainable, smart and inclusive growth, in accordance with the Europe 2020 strategy, high employment and competitiveness for building tomorrow's economy in a way that is less prone to systemic risks and is more resilient. European long-term investment funds (ELTIFs) provide finance to various infrastructure projects, unlisted companies or listed small and medium-sized enterprises (SMEs) of lasting duration that issue equity or debt instruments for which there is no readily identifiable buyer. By providing finance to such projects, ELTIFs contribute to the financing of the Union's real economy and the implementation of its policies.

(2)  On the demand side, ELTIFs can provide a steady and safe income stream for pension administrators, insurance companies, foundations, municipalities and other entities that face regular and recurrent liabilities and are seeking long-term returns within well-regulated structures. While providing less liquidity than investments in transferable securities, ELTIFs can provide a steady and safe income stream for individual investors that rely on the regular cash flow that an ELTIF can produce. ELTIFs can also offer good opportunities for capital appreciation over time for those investors not receiving a steady income and safe stream. It should be possible to authorise an ELTIF to reduce its capital on a pro rata basis in the event that it has divested itself of one of its assets.

(3)  Financing for projects, regarding transport infrastructure, sustainable energy generation or distribution, social infrastructure (housing or hospitals), the roll-out of new technologies and systems that reduce use of resources and energy or the further growth of SMEs, can be scarce. As the financial crisis has shown, complementing bank financing with a wider variety of financing sources that better mobilise capital markets could help tackle financing gaps. ELTIFs can play a crucial role in this respect. For certain projects they could make use of resources such as innovative financial instruments to supplement public funding eroded by the sovereign debt crisis.

(4)  Given that investors may be interested in investing in an ELTIF, the fact that investors should be given the right incentives to invest in them and the fact that in particular retail investors may not have the necessary resources or a sufficiently diversified portfolio that would allow them to lock-up their capital for a long period of time, an ELTIF should be able to offer redemption rights to its investors. Therefore, the ELTIF manager should be given discretion to decide whether to establish ELTIFs with or without redemption rights according to the ELTIF’s investment strategy. When a redemption rights regime is in place, those rights and their main features should be clearly predefined and disclosed in the rules or instruments of incorporation of the ELTIF. In addition, the Commission's impact assessment found at national level cases of long-term funds that have been structured as listed entities. That allows investors to trade their shares or units in the fund on a secondary market. When the shares of the fund are listed on an exchange, investors are able to buy and sell shares of the fund directly on the exchange like any other listed security. The secondary market can also be operating when the shares or units of the fund are not listed. In that case the investors can exchange directly their holding with another investor. Intermediaries like banks or distributors can play a facilitating role in this secondary market. They can collect the buy and sell orders and can match those orders between their clients. If long-term investing is really supposed to become attractive for smaller-scale investors or the retail community at large, secondary markets will be the principal venue in which you can buy into or leave the long-term fund. A report, three years after the adoption of this Regulation, will investigate whether this rule will have achieved the expected results in terms of ELTIF distribution.▌

(4a)  In order to make ELTIFs a feasible and attractive choice for professional investors such as institutions for occupational retirement provision, pension funds, and insurance companies, it is important that necessary adjustments are made to their regulatory own funds requirements, within the framework of Directive 2003/41/EC of the European Parliament and of the Council(4) and of Directive 2009/138/EC of the European Parliament and of the Council(5) in order to provide flexibility in the case of ELTIFs as regards the high capital requirements for investments in illiquid assets. Moreover, any additional national regulatory constraints should be thoroughly assessed, if necessary.

(5)  Long-term asset classes within the meaning of this Regulation should comprise equity or debt instruments issued by non-listed undertakings and listed SMEs where there is no readily identifiable buyer for those. They should also comprise equity or debt instruments issued by listed undertakings of maximum capitalisation of EUR 1 billion. This Regulation should also cover real assets that require significant up-front capital expenditure and that produce recurrent and foreseeable cash flow through their duration.

(6)  In the absence of a Regulation setting out rules on ELTIFs, diverging measures might be adopted at national level, which are likely to cause distortions of competition resulting from differences in investment protection measures. Diverging requirements on portfolio composition, diversification and eligible assets, in particular the investment in commodities, create obstacles to the cross-border marketing of funds that focus on non-listed undertakings and real assets because investors cannot easily compare the different investment propositions offered to them. Divergent national requirements also lead to different levels of investor protection. Furthermore, different national requirements pertaining to investment techniques, such as the permitted levels of borrowing, use of derivative financial instruments, rules applicable to short selling or securities financing transactions lead to discrepancies in the level of investor protection. In addition, different requirements on redemption and/or holding periods impede the cross-border selling of funds investing in non-listed assets. By increasing legal uncertainty, those divergences can undermine the confidence of investors when considering investments in such funds, and reduce the scope for investors to choose effectively between various long-term investment opportunities. Member States should therefore not be allowed to lay down additional requirements in the area covered by this Regulation and the appropriate legal basis for this Regulation should be Article 114 of the Treaty, as interpreted by consistent case law of the Court of Justice of the European Union.

(7)  Uniform rules across the Union are necessary to ensure that ELTIFs display a coherent and stable product profile across the Union. In order to ensure the smooth functioning of the internal market and a high level of investor protection, it is necessary to establish uniform rules regarding the operation of ELTIFs, in particular on the composition of the portfolio of ELTIFs and the investment instruments that they are allowed to use in order to gain exposure to long-term assets such as equity or debt instruments issued by listed SMEs, and by non-listed undertakings, as well as real assets. Uniform rules on the portfolio of an ELTIF are also required to ensure that ELTIFs that aim to generate regular income maintain a diversified portfolio of investment assets suitable to maintain the regular cash flow. Moreover, coordination among tax frameworks of Member States is necessary to ensure a level playing field in terms of investor attractiveness and convergence of national policies is required to establish similar conditions in terms of investment climate in order to address imbalances among Member States.

(8)  It is essential to ensure that the definition of the operation of ELTIFs, in particular on the composition of the portfolio of ELTIFs and the investment instruments that they are allowed to use be directly applicable to the managers of ELTIFs and therefore these new rules need to be adopted as a Regulation. This also ensures uniform conditions for the use of the designation ELTIF by preventing diverging national requirements. Managers of ELTIFs should follow the same rules across the Union, in order to also enhance the confidence of investors in ELTIFs and ensure sustainable trustworthiness of the designation. At the same time, by adopting uniform rules, the complexity of the regulatory requirements applicable to ELTIFs is reduced. By means of uniform rules, the managers' cost of compliance with divergent national rules governing funds that invest in listed SMEs and non-listed long-term assets and comparable real asset classes is also reduced. This is especially true for managers that wish to raise capital on a cross-border basis. It also contributes to eliminate competitive distortions.

(9)  The new rules on ELTIFs are closely linked to Directive 2011/61/EU of the European Parliament and of the Council(6) since that Directive forms the legal framework governing the management and marketing of alternative investment funds (AIFs) in the Union. By definition ELTIFs are EU AIFs that are managed by alternative investment fund managers (AIFMs) authorised in accordance with Directive 2011/61/EU.

(10)  Whereas Directive 2011/61/EU also provides for a staged third country regime governing non-EU AIFMs and non-EU AIFs, the new rules on ELTIFs have a more limited scope emphasising the European dimension of the new long term investment product. Hence, only an EU AIF as defined in Directive 2011/61/EU should be eligible to become an authorised ELTIF and only if it is managed by an EU AIFM that has been authorised in accordance with Directive 2011/61/EU. However, third-country investors should also be encouraged to invest in ELTIFs given the valuable capital that they can contribute towards projects in the Union.

(11)  The new rules applicable to ELTIFs should build on the existing regulatory framework established through Directive 2011/61/EU and the acts adopted for its implementation. Therefore, the product rules concerning ELTIFs should apply in addition to the rules laid down in the existing Union legislation. Particularly, the management and marketing rules laid down in Directive 2011/61/EU should apply to ELTIFs. Equally, the rules on the cross-border provision of services and freedom of establishment laid down in Directive 2011/61/EU should apply accordingly to the cross-border activities of ELTIFs. These should be supplemented by the specific marketing rules designed for the cross-border marketing of ELTIFs to both retail and professional investors across the Union.

(12)  Uniform rules should apply to all those EU AIFs that wish to market themselves as ELTIFs. EU AIFs that do not wish to market themselves as ELTIFs should not be bound by these rules, thereby also consenting not to benefit from the advantages that ensue. On the other hand, undertakings for collective investment in transferable securities (UCITS) and non-EU AIFs would not be eligible for marketing as ELTIFs.

(13)  In order to ensure the compliance of ELTIFs with the harmonised rules governing the activity of these funds, it is necessary to require that competent authorities authorise ELTIFs. The harmonised authorisation and supervision procedures for AIFMs under Directive 2011/61/EU should therefore be supplemented with a special authorisation procedure for ELTIFs. Procedures should be established to ensure that only EU AIFMs authorised in accordance with Directive 2011/61/EU and capable of managing an ELTIF may manage ELTIFs. All appropriate steps are taken to ensure that the ELTIF shall be able to comply with the harmonised rules governing the activity of these funds.

(14)  Given that EU AIFs may take different legal forms that do not necessarily endow them with legal personality, the provisions requiring ELTIFs to take action should be understood to refer to the manager of the ELTIF in cases where the ELTIF is constituted as an EU AIF that is not in a position to act by itself because it has no legal personality of its own.

(15)  In order to ensure that ELTIFs target long-term investments and contribute to finance a sustainable growth of the EU's economy, rules on the portfolio of ELTIFs should require a clear identification of the categories of assets that should be eligible for investment by ELTIFs and of the conditions under which they should be eligible. An ELTIF should invest at least 70 % of its capital in eligible investment assets and at least 60 % of its capital in securities issued by an eligible portfolio undertaking established in the Union. To ensure the integrity of ELTIFs it is also desirable to prohibit an ELTIF from engaging in certain financial transactions that might endanger its investment strategy and objectives by raising additional risks different to those that might be expected for a fund targeting long-term investments. In order to ensure a clear focus on long term investments, as may be useful for retail investors unfamiliar with less conventional investment strategies, an ELTIF should not be allowed to invest in financial derivative instruments other than for the purpose of hedging the risks inherent to its own investments. Given the liquid nature of commodities and financial derivative instruments that give an indirect exposure to them, investments in commodities do not require a long-term investor commitment and therefore should be excluded. This rationale does not apply to investments in infrastructure or companies related to commodities or whose performance is linked indirectly to the performance of commodities, such as farms in the case of agricultural commodities or power plants in the case of energy commodities.

(15a)  In order for ELTIF to contribute effectively to a sustainable, smart and inclusive growth in the Union, each ELTIF should take into account the social impact of eligible investments, taking into account its environmental, social and governance characteristics. In particular, the ELTIF manager should consider the inherent contribution of the selected asset to the objectives of the European model of growth, namely enhancing social infrastructures, sustainable mobility, renewable energy production and distribution, energy efficiency processes, as well as firms operating in sectors fostering environmental and social solutions, or having a high potential of innovation.

(16)  The definition of what constitutes a long-term investment is broad. Without necessarily requiring long-term holding periods for the ELTIF manager, eligible investment assets are generally illiquid, require commitments for a certain period of time, and have an economic profile of a long-term nature. Eligible investment assets are non-transferable securities and therefore do not have access to the liquidity of secondary markets. They often require fixed term commitments which restrict their marketability. However, as listed SMEs may face problems of liquidity and access to the secondary market, equity or debt instruments issued by listed SMEs should be included in the eligible investment assets of the ELTIF as they need to maintain a stable shareholding structure. Consequently, eligible investment assets may be transferable securities and therefore may have access to the liquidity of secondary markets. The economic cycle of the investment sought by ELTIFs is essentially of a long-term nature due to the high capital commitments and the length of time required to produce returns. As a result such assets do not suit investments with redemption rights, apart from specific cases and under certain conditions.

(17)  An ELTIF should be allowed to invest in assets other than eligible investment assets, as may be necessary to efficiently manage its cash flow, but only so long as this is consistent with the ELTIF’s long term investment strategy.

(18)  Eligible investment assets must be understood to include participations, such as equity or quasi-equity instruments, debt instruments in qualifying portfolio undertakings and loans provided to them. They should also include participation in other funds that are focused on assets such as investments in non-listed undertakings that issue equity or debt instruments for which there is not always a readily identifiable buyer. Direct holdings of real assets, unless they are securitised, should also form a class of eligible assets under strict conditions regarding their acquisition value and cash-flow profile.

(19)  Quasi-equity instruments must be understood to comprise a type of financing instrument, which is a combination of equity and debt, where the return on the instrument is linked to the profit or loss of the qualifying portfolio undertaking, and where the repayment of the instrument in the event of default is not fully secured. Such instruments include a variety of financing instruments such as subordinated loans, silent participations, participating loans, profit participating rights, convertible bonds and bonds with warrants.

(20)  To reflect existing business practices, an ELTIF should be allowed to buy existing shares of a qualifying portfolio undertaking from existing shareholders of that undertaking. Also, for the purposes of ensuring the widest possible opportunities for fundraising, investments into other ELTIFs should be permitted. To prevent dilution of the investments into qualifying portfolio undertakings, ELTIFs should only be permitted to invest in other ELTIFs, provided that those ELTIFs have not themselves invested more than 10 % of their capital in other ELTIFs.

(21)  The use of financial undertakings is necessary in order to effectively market ELTIFs to investors as well as pool and organise the contributions of different investors, including investments of a public nature, into infrastructure projects. ELTIFs should therefore be permitted to invest in eligible investment assets by means of financial undertakings, so long as these undertakings are dedicated to financing long-term projects and the growth of SMEs.

(22)  ▌Qualifying portfolio undertakings should include infrastructure projects, investment in unlisted companies and listed SMEs seeking growth ▌that could be suitable for long term investment purposes.

(23)  Due to the scale of infrastructure projects, these require large amounts of capital that have to remain invested for long periods of time. Such infrastructure projects should include public building infrastructure such as schools, hospitals or prisons, social infrastructure such as social housing, transport infrastructure such as roads, mass transit systems or airports, energy infrastructure such as energy grids, climate adaptation and mitigation projects, power plants or pipelines, water management infrastructure such as water supply systems, sewage or irrigation systems, communication infrastructure such as networks and waste management infrastructure such as recycling or collection systems.

(24)  Unlisted undertakings can face difficulties accessing capital markets and financing further growth and expansion. Private financing through equity stakes or loans are typical ways of raising financing. Because such instruments are by their nature long-term investments they require patient capital that ELTIFs can provide. Moreover, listed SMEs, often face significant obstacles in acquiring long-term financing and ELTIFs may provide valuable alternative sources of funding.

(25)  Investments in infrastructure require patient capital due to the absence of liquid secondary markets. Investment funds represent an essential source of financing for assets that require large capital expenditure. For these assets, capital pooling is often necessary to achieve the desired level of funding. Such investments require long periods of time due to the generally long economic cycle attached to these assets. It generally takes several years to amortise the investment in large real assets. In order to facilitate the development of such large assets, ELTIFs should be able to invest directly in infrastructure with a value of more than EUR 10 million and which deliver foreseeable and recurrent cash-flows throughout their term. ▌For these reasons it is necessary to treat direct holdings in infrastructure in qualifying portfolio undertakings in like manner.

(26)  Where the manager holds a stake in a portfolio undertaking, there is a risk that the manager puts its interests ahead of the interests of investors in the fund. To avoid such conflict of interests, the ELTIF should only invest in assets that are unrelated to the manager to ensure sound corporate governance, unless they invest in units or shares or assets managed by the ELTIF manager that are eligible under this Regulation.

(27)  In order to allow managers of ELTIFs a certain degree of flexibility in the investment of their funds, trading in assets other than long-term investments should be permitted up to a maximum threshold of 30 % of their capital.

(28)  In order to limit risk-taking by ELTIFs it is essential to reduce counterparty risk by subjecting the portfolio of ELTIFs to clear diversification requirements. All over-the counter (OTC) derivatives should be subject to Regulation (EU) No 648/2012 of the European Parliament and of the Council [...](7).

(29)  In order to prevent the exercise of significant influence by an investing ELTIF over the management of another ELTIF or of an issuing body, it is necessary to avoid excessive concentration by an ELTIF in the same investment.

(30)  In order to allow ELTIF managers to raise further capital during the life of the fund, they should be permitted to borrow cash amounting to up to 40 % of the capital of the fund. This should serve to provide additional return to the investors. In order to eliminate the risk of currency mismatches, the ELTIF should only borrow in the currency the manager expects to acquire the asset in.

(31)  Due to the long-term and illiquid nature of the investments of an ELTIF, the managers should have sufficient time to apply the investment limits. The time required to implement these limits should take account of the peculiarities and characteristics of the investments but should not exceed five years.

(31a)  Under exceptional circumstances specified within the rules of incorporation, the lifecycle of ELTIF could be extended or reduced to allow for more flexibility, where, for instance, a project is completed later or earlier than expected, to put it in line with its long term investment strategy.

(31b)  The European Investment Bank (EIB), given its expertise in Union infrastructure financing, as well as other similar national institutions should actively cooperate with the ELTIF managers and the investors, particularly retail investors who may lack the relevant experience. Furthermore, the EIB's Project Bonds Initiative and other similar activities, such as the Connecting Europe Facility, should be directly linked to the ELTIF, with the EIB assuming risk and providing guarantees, to reduce risks inherent to this type of investments and encourage investors to trust the ELTIF as a safe investment vehicle.

(32)  ▌Nothing should prevent an ELTIF from seeking admission of these shares or units to a regulated market as defined in Article 4(21) of Directive 2014/.../EU of the European Parliament and of the Council(8) [new MIFID], to a multilateral trading facility as defined in Article 4(22) of Directive 2014/.../EU [new MIFID], or to an organised trading facility as defined in ,Article 4(23) of Directive 2014/.../EU [new MIFID], thus providing investors with an opportunity to sell their units or shares before the end of life of the ELTIF. The rules or instruments of incorporation of an ELTIF should therefore not prevent units or shares from being admitted to or from being dealt in regulated markets, nor should they prevent investors from freely transferring their shares or units to third parties who wish to purchase those shares or units. However, according to experiences in national markets to date, trading in secondary markets may work in some markets but in others this option may entail high premiums or important discounts on the units or shares of ELTIFs that are admitted to or dealt on regulated markets, which would prevent, in practice, investors from using this alternative. Therefore, that option may not be sufficient to substitute for the option of more regular redemptions.

(33)  In order for investors to effectively redeem their units or shares at the end of the fund's life, the manager should start to sell the portfolio of assets of the ELTIF in good time to ensure the value is properly realised. In determining an orderly disinvestment schedule, the ELTIF manager should take into account the different maturity profiles of the investments and the length of time necessary to find a buyer for the assets in which the ELTIF is invested. Due to the impracticality of maintaining the investment limits during this liquidation period, they should cease to apply when the liquidation period starts.

(34)  The assets in which an ELTIF is invested may obtain a listing on a regulated market during the life of the fund. Where this happens, the asset would no longer comply with the non-listing requirement of this Regulation. In order to allow managers to disinvest from such an asset in an orderly manner, this asset could continue to count towards the 70 % limit of eligible investment assets for up to three years.

(35)  Given the specific characteristics of ELTIFs, as well as the targeted retail and professional investors it is important that solid transparency requirements be put in place that are capable of allowing prospective investors to make an informed judgement and be fully aware of the risks implied. In addition to the transparency requirements contained in Directive 2011/61/EU, ELTIFs should publish a prospectus the content of which should necessarily include all information required to be disclosed by collective investment undertakings of the closed-end type in accordance with Directive 2003/71/EC of the European Parliament and of the Council(9) and Commission Regulation (EC) No 809/2004.(10) For the marketing of an ELTIF to retail investors it should be mandatory to publish a key information document (KID) in accordance with Regulation (EU) No …/... of the European Parliament and the Council(11) [PRIPS]. Furthermore, any marketing documents should explicitly draw attention to the risk profile of the ELTIF and mention any participation in instruments involving Union budgetary funds.

(36)  As ELTIFs target both professional and retail investors across the Union, it is necessary that certain requirements be added to the marketing requirements laid down in Directive 2011/61/EU in order to ensure an appropriate degree of investor protection, particularly for retail investors. Thus, facilities should be made available for making subscriptions, making payments to unit- or shareholders, repurchasing or redeeming units or shares and making available the information which the ELTIF and its managers are required to provide. Moreover, in order to ensure that retail investors are not disadvantaged with respect to experienced professional investors certain safeguards have to be put in place when ELTIFs are marketed to retail investors.

(37)  The competent authority of the ELTIF should verify whether an ELTIF is able to comply with this Regulation on an on-going basis. As the competent authorities are already provided with extensive powers under Directive 2011/61/EU, it is necessary that such powers be extended in order to be exercised by reference to the new common rules on ELTIFs.

(38)  ESMA should be able to exercise all the powers conferred under Directive 2011/61/EU with respect to this Regulation and should be provided with all resources necessary for this purpose, in particular human resources.

(39)  The European Supervisory Authority (European Securities and Markets Authority) (ESMA), established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council(12), should play a central role in the application of the rules concerning ELTIFs by ensuring consistent application of Union rules by national competent authorities. As a body with highly specialised expertise regarding securities and securities markets, it is efficient and appropriate to entrust ESMA with the elaboration of draft regulatory technical standards which do not involve policy choices, for submission to the Commission, in respect of the circumstances in which the life of an ELTIF will be sufficient in length to cover the life-cycle of each of the individual assets of the ELTIF, the features of the schedule for the orderly disposal of ELTIF assets, the definitions, calculation methodologies and presentation of cost disclosures, and the characteristics of the facilities to be set up by ELTIFs in each Member State where they intend to market units or shares.

(39a)  The provision of tax incentives, at national level, relating to long-term investments via ELTIFs can play an important role in directing the currently available resources to the financing of long-term projects in the Union, particularly focusing on projects which are beneficial to society and to the environment. For that reason, it could be assessed whether project bonds should also be considered to be eligible assets, with the aim of ensuring economies of scale and encouraging synergies between Union investment tools. Member States that are facing the consequences of fiscal adjustment are encouraged to provide state guarantees and favourable tax treatments such as tax deductions for investors who participate in ELTIFs. Member States should take all necessary legislative and institutional measures to ensure implementation of this Regulation.

(39b)  Member States, as well as regional and local authorities have a significant responsibility in effectively promoting and marketing ELTIFs to investors, as well as providing specific information to citizens and consumers about the benefits offered by that new framework.

(39c)  It is crucial to encourage a number of semi-professional investors in the Union, such as mid-tier pension schemes, insurance companies, municipalities, churches, charities and foundations, that may have sufficient capital and certain expertise, to invest in ELTIFs.

(40)  The new uniform rules on ELTIFs should comply with the provisions of Directive 95/46/EC of the European Parliament and of the Council [...](13) and with Regulation (EC) No 45/2001 of the European Parliament and of the Council [...](14).

(40a)  An ELTIF should not invest in an eligible investment asset in which the ELTIF manager has or takes a direct or indirect interest other than by holding units or shares of the ELTIF it manages. Guarantees should also be in place in order to avoid practices that distort competition or create barriers to entry.

(41)  Since the objectives of this Regulation, namely to ensure uniform requirements on the investments and operating conditions for ELTIFs throughout the Union, while taking full account of the need to balance safety and reliability of ELTIFs with the efficient operation of the market for long-term financing and the cost for its various stakeholders, cannot be sufficiently achieved by the Member States and can therefore, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

(42)  The new uniform rules on ELTIFs respect the fundamental rights and observe the principles recognised in particular by the Charter of Fundamental Rights of the European Union and notably access to services of general economic interest, consumer protection, the freedom to conduct a business, the right to remedy and to a fair trial, and the protection of personal data. The new uniform rules on ELTIFs should be applied in accordance with those rights and principles,

HAVE ADOPTED THIS REGULATION:

Chapter I

General provisions

Article 1

Subject matter and objective

1.  This Regulation lays down uniform rules on the authorisation, investment policies and operating conditions of EU alternative investment funds (AIFs), or compartments of AIFs, that are marketed in the Union as European long-term investment funds (ELTIFs). [Am. 2]

1a.   The objective of this Regulation is to raise and channel capital towards the real economy, in line with the objectives of a smart, sustainable and inclusive growth.

2.  Member States shall not add any additional requirements in the field covered by this Regulation.

Article 2

Definitions

For the purposes of this Regulation the following definitions apply:

(1)  ‘capital’ means aggregate capital contributions and uncalled committed capital, calculated on the basis of amounts investible after deduction of all fees, charges and expenses which are directly or indirectly borne by investors;

(1a)  'retail investor' means an investor who is not a professional client, in accordance with Section I of Annex II to Directive... /.../EU [new Mifid];

(1b)  'professional investor' means an investor who is a professional client, in accordance with Section I of Annex II to Directive .../../EU [new Mifid], or who may, on request, be treated as a professional client in accordance with that Directive;

(1c)  'semi-professional investor' means any retail investor who commits to investing a minimum of EUR 100 000 and who provides a written statement, separate from the contract to be concluded for the commitment to invest, to the effect that the investor is aware of the risks associated with the envisaged commitment or investment;

(2)  'equity' means ownership interest in an undertaking, represented by the shares or other forms of participation in the capital of the qualifying portfolio undertaking issued to its investors;

(3)  'quasi‑equity' means any type of financing instrument where the return on the instrument is linked to the profit or loss of the qualifying portfolio undertaking and where the repayment of the instrument in the event of default is not fully secured;

(4)  ‘financial undertaking’ means any of the following:

(a)  a credit institution as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council(15);

(b)  an investment firm as defined in point (2) of Article 4(1) of Regulation (EU) No 575/2013;

(c)  an insurance undertaking as defined in point (1) of Article 13 of Directive 2009/138/EC of the European Parliament and of the Council(16);

(d)  a financial holding company as defined in point (20) of Article 4(1) of Regulation (EU) No 575/2013;

(e)  a mixed-activity holding company as defined in point (22) of Article 4(1) of Regulation (EU) No 575/2013;

(4a)  'professional ELTIF' means an ELTIF eligible to be marketed only to professional and semi-professional investors;

(4b)  'EU AIF' means EU AIF as defined in Article 4(1)(k) of Directive 2011/61/EU;

(4c)  'EU AIFM' means EU AIFM as defined in Article 4(1)(l) of Directive 2011/61/EU;

(5)  ‘competent authority of the ELTIF’ means the competent authority of the home Member State of the EU AIF as defined in Article 4(1)(p) of Directive 2011/61/EU;

(6)  ‘ELTIF home Member State’ means the Member State where the ELTIF is authorised;

'competent authority of the ELTIF manager' means the competent authority of the home Member State of the EU AIFM as defined in Article 4(1)(q) of Directive 2011/61/EU;

(6a)  'repurchase agreement' means any agreement in which one party transfers securities or any rights related to that title to a counterparty, subject to a commitment to repurchase them at a specified price on a future date specified or to be specified;

(6b)  'short selling' means the uncovered sale of assets;

(6c)  'retail ELTIF' means an ELTIF whose investors include retail investors;

(6d)  'securities lending' and 'securities borrowing' mean a transaction in which an institution or its counterparty transfers securities subject to a commitment that the borrower will return equivalent securities at some future date or when requested to do so by the transferor, that transaction constituting securities lending to the transferor and securities borrowing to the transferee;

(6e)  'infrastructure' means basic physical and intangible organisational structures and facilities needed for the operation of a society or enterprise.

Article 3

Authorisation and use of designation

1.  Only EU AIFs shall be eligible to apply for and to be granted authorisation as an ELTIF.

2.  An ELTIF may be marketed in the whole Union or in any Member State provided that it has been authorised in accordance with this Regulation.

The authorisation as an ELTIF shall be valid for all Member States.

3.  A collective investment undertaking shall only use the designation 'ELTIF' or 'European long-term investment fund' in relation to itself or the units or shares it issues where it has been authorised in accordance with this Regulation.

4.  The competent authorities of the ELTIF shall, on a quarterly basis, inform ESMA on a confidential basis, of authorisations granted or withdrawn pursuant to this Regulation and provide all necessary details on the ELTIF activities that ensure compliance with the provisions laid down in this Regulation.

ESMA shall keep a central public register identifying each ELTIF authorised under this Regulation, its manager, the information provided under Article 4 and the competent authority of the ELTIF. The register shall be made available in electronic format.

Article 4

Application for authorisation as ELTIF

1.  An EU AIF shall apply for authorisation as ELTIF to its competent authority.

The application for authorisation as an ELTIF shall include the following:

(a)  the fund rules or instruments of incorporation;

(b)  information on the identity of the proposed ELTIF manager, its current and previous fund management history and experience relevant to long term investment;

(c)  information on the identity of the depositary;

(d)  a description of the information to be made available to investors;

(da)  for retail ELTIFs, a description of the procedures and arrangements in place to deal with retail investors' complaints;

(e)  any other information or document requested by the competent authority of the ELTIF to verify compliance with the requirements of this Regulation.

2.  An EU ▌AIFM authorised under Directive 2011/61/EU is entitled to manage an ELTIF, and shall make a simplified application to the competent authority of the ELTIF for approval to manage an ELTIF that has submitted an application for authorisation in accordance with paragraph 1. Such an application for approval shall refer to the application (including documentation submitted) and authorisation under Directive 2011/61/EU.

▌

3.  The ELTIF and the EU AIFM shall be informed within [two months] from the date of submission of a complete application whether authorisation of the ELTIF and the approval to manage the ELTIF has been granted.

4.  Any subsequent modifications of the documentation referred to in paragraph 1 ▌shall be immediately notified to the competent authority of the ELTIF.

Article 5

Conditions for granting the authorisation

1.  An applicant ELTIF shall be authorised only where its competent authority:

(a)  is satisfied that the applicant ELTIF is able to meet all the requirements of this Regulation and has approved the fund rules or instruments of incorporation and the choice of the depositary;

(b)  has approved the application of an EU AIFM authorised in accordance with Directive 2011/61/EU to manage the ELTIF ▌;

(ba)  is satisfied that the proposed ELTIF manager or a person exercising a management function within the proposed ELTIF manager has not previously been the subject of penalties for infringements of national or Union law governing fund management.

1a.  The competent authority shall provide the applicant ELTIF with an answer within [two] month.

2.  The competent authority of the ELTIF may refuse the application of the EU AIFM to manage the ELTIF only where:

(a)  the EU AIFM does not comply with this Regulation;

(b)  the EU AIFM does not comply with Directive 2011/61/EU, as established in cooperation with the competent authority of the ELTIF manager in accordance with this Regulation and with the supervisory cooperation arrangements laid down in Directive 2011/61/EU;

(c)  the EU AIFM is not authorised by its competent authority to manage AIFs that include funds of the type covered in this Regulation, as established in cooperation with the competent authority of the ELTIF manager in accordance with this Regulation;

(d)  the EU AIFM has not provided the documentation referred to in Article 4(2), or any clarification or information requested thereunder.

Before refusing an application the competent authority of the ELTIF shall consult the competent authority of the EU AIFM.

3.  The competent authority shall not grant authorisation as an ELTIF if the applicant ELTIF is legally prevented from marketing its units or shares in its home Member State. The competent authority shall communicate to the applicant ELTIF the reason for its refusal to grant authorisation. The refusal shall apply in all Members States.

4.  Authorisation as an ELTIF shall not be subject to a requirement that the ELTIF be managed by an EU AIFM authorised in the ELTIF home Member State or that the EU AIFM pursue or delegate any activities in the ELTIF home Member State

Article 6

Applicable rules and liability

1.  An ELTIF shall comply at all times with the provisions of this Regulation.

2.  An ELTIF and an ELTIF manager shall comply at all times with the requirements of Directive 2011/61/EU.

3.  The ELTIF manager shall be responsible for ensuring compliance with this Regulation. The ELTIF manager shall be liable for any loss or damage resulting from non-compliance with this Regulation.

Chapter II

Obligations concerning the investment policies of ELTIFs

Section 1

General rules and eligible assets

Article 7

Investment compartments

Where an ELTIF comprises more than one investment compartment, each ELTIF compartment shall be regarded as a separate ELTIF for the purposes of this Chapter.

Article 8

Eligible investments

1.  In accordance with the objectives of a smart, sustainable and inclusive growth, an ELTIF shall only invest in the following categories of assets and only under the conditions specified in this Regulation:

(a)  eligible investment assets;

(b)  assets referred to in Article 50(1) of Directive 2009/65/EC of the European Parliament and of the Council(17).

2.  An ELTIF shall not undertake any of the following activities:

(a)  short-selling of assets;

(b)  taking direct or indirect exposure to commodities, including via derivatives, certificates representing them, indices based on them or any other means or instruments that would give an exposure to them;

▌

(d)  using financial derivative instruments, except where ▌ it solely serves the purpose of hedging ▌ risks inherent to other investments of the ELTIF.

2a.  In order to ensure consistent application of this Article, ESMA shall, after conducting an open public consultation, develop draft regulatory technical standards specifying criteria for establishing the circumstances where derivative contracts solely serve the purpose of hedging the risks inherent to the investments referred to in paragraph 2(d).

ESMA shall submit those draft regulatory technical standards to the Commission by [3 months after entry into force of this Regulation].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

Article 9

Eligible investment assets

An asset referred to in Article 8(1)(a) shall be eligible for investment by an ELTIF only where it falls into one of the following categories:

(a)  equity or quasi‑equity instruments which have been:

(i)  issued by a qualifying portfolio undertaking and acquired directly by the ELTIF from the qualifying portfolio undertaking;

(ii)  issued by a qualifying portfolio undertaking in exchange for an equity instrument previously acquired directly by the ELTIF from the qualifying portfolio undertaking;

(iii)  issued by an undertaking of which the qualifying portfolio undertaking is a majority‑owned subsidiary, in exchange for an equity instrument acquired in accordance with points (i) or (ii) by the ELTIF from the qualifying portfolio undertaking;

(b)  debt instruments issued by a qualifying portfolio undertaking with a maturity aligned to the life of the ELTIF;

(c)  loans granted by the ELTIF to a qualifying portfolio undertaking with a maturity aligned to the life of the ELTIF;

(d)  units or shares of one or several other ELTIFs, European Venture Capital Funds (EuVECAs) and European Social Entrepreneurship Funds (EuSEFs) provided that those ELTIFs, EuVECAs and EuSEFs have not themselves invested more than 10% of their capital in ELTIFs;

(e)  direct holdings or indirect holdings via qualifying portfolio undertakings of individual infrastructure that require up-front capital expenditure of at least EUR 10 million or its equivalent in the currency, and at the time, in which the expenditure is incurred and provide regular predictable returns.

In accordance with the objectives of a smart, sustainable and inclusive growth or with the Union regional policy, projects financed by a public-private partnership shall be granted priority by the competent authorities when examining an application.

Article 10

Qualifying portfolio undertaking

1.  A qualifying portfolio undertaking referred to in Article 9(1) shall be a portfolio undertaking other than a collective investment undertaking that fulfils all of the following requirements:

(a)  it is not a financial undertaking other than the European multilateral development banks referred to in Regulation (EU) No 575/2013 [CRR] Article 117(2)(f), (i), (j) and (k);

(b)  it is not admitted to trading:

(i)  on a regulated market as defined in point 21 of Article 4(1) of Directive 2014/.../EU [new MIFID];

(ii)  on a multilateral trading facility as defined in point 22 of Article 4(1) of Directive 2014/.../EU [new MIFID];

▌

(ba)  it is admitted to trading on a regulated market or on a multilateral trading facility and has a market capitalisation of no more than EUR 1 billion;

(bb)  it is admitted to trading on a regulated market or on a multilateral trading facility and is considered to be an SME in accordance with Article 2(1) of the Annex to Commission Recommendation 223/361/EC(18);

(c)  it is established in a Member State, or in a third country provided that the third country:

(i)  is not a high-risk and non-cooperative jurisdictions identified by the Financial Action Task Force (FATF); or

(ii)  has signed an agreement with the home Member State of the ELTIF manager and with every other Member State in which the units or shares of the ELTIF are intended to be marketed which provides that the third country is not a country:

–  where there are no or nominal taxes,

–  where there is a lack of effective exchange of information with foreign tax authorities,

–  where there is a lack of transparency in legislative, judicial or administrative provisions,

–  where there is no requirement for a substantive local presence,

–   which acts as an offshore financial centre.

2.  By way of derogation from paragraph 1(a) [...], a qualifying portfolio undertaking may be a financial undertaking or a collective investment undertaking that, in accordance with the objectives of a smart, sustainable and inclusive growth, exclusively finances qualifying portfolio undertakings referred to in paragraph 1 of this Article or real assets referred to in Article 9.

Article 11

Conflicts of interest

An ELTIF shall not invest in an eligible investment asset in which the manager has or takes a direct or indirect interest, other than by holding units or shares of the ELTIFs, EUSEFs or EuVECAs or collective investment undertakings within the meaning of Article 10(2) it manages.

Section 2

Provisions on Investment Policies

Article 12

Portfolio composition and diversification

1.  An ELTIF shall invest at least 70% of its capital in eligible investment assets and at least 60% of its capital in assets listed in Article 9(a), (b) and (c) in qualifying portfolio undertakings established within the territory of a Member State.

1a.  Where the rules or instruments of incorporation of ELTIF provide for regular redemption rights, the ELTIF shall maintain at the predefined redemption periods a liquidity reserve taking into account the requirements and conditions for exercise of the redemption rights, commensurate with the management of liquidity for the exercise of redemption rights.

1b.  ESMA shall develop regulatory technical standards to further specify the structure of the liquidity reserves.

ESMA shall submit those draft regulatory technical standards to the Commission by ...*.

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

2.  An ELTIF shall invest no more than:

(a)  10% of its capital in assets issued by any single qualifying portfolio undertaking;

(b)  10% of its capital directly or indirectly in an individual infrastructure according to Article 9(e);

(c)  10% of its capital in units or shares of any single ELTIF, EuVECA, EuSEF or AIFs;

(d)  5% of its capital in assets referred to in Article 8(1)(b) where those assets have been issued by any single body.

3.  The aggregate value of units or shares of ELTIFs, EuvECAs and EuSEFs in an ELTIF portfolio shall not exceed 20% of the value of its capital.

4.  The aggregate risk exposure to a counterparty of the ELTIF stemming from over the counter (OTC) derivative transactions or repurchase agreements or reverse repurchase agreements shall not exceed 5% of its capital.

5.  By way of derogation from paragraph 2(a) and 2(b), the ELTIF may raise the 10% limit referred to therein to 20%, provided that the aggregate value of the assets held by the ELTIF in qualifying portfolio undertakings and in individual real assets in which it invests more than 10% of its capital does not exceed 40% of the value of its capital.

6.  Companies which are included in the same group for the purposes of consolidated accounts, as regulated by Seventh Council Directive 83/349/EEC(19) or in accordance with recognised international accounting rules, shall be regarded as a single qualifying portfolio undertaking or a single body for the purpose of calculating the limits referred to in paragraphs 1 to 5.

Article 12a

In circumstance where the ELTIF breaches the diversification requirements as stipulated in Article 12 and the contravention is beyond the control of the ELTIF manager, competent authorities shall provide a period of six months for the manager to take such measures as are necessary to rectify the position.

Article 13

Concentration

1.  An ELTIF may acquire no more than 25% of the units or shares of a single ELTIF, EuVECA or EuSEF.

2.  The concentration limits laid down in Article 56(2) of Directive 2009/65/EC shall apply to investments in the assets referred to in Article 8(1)(b) of this Regulation.

Article 14

Borrowing of cash

An ELTIF may borrow cash provided that such borrowing fulfils all of the following conditions:

(a)  it represents no more than 40 % of the capital of the ELTIF;

(b)  it serves the purpose of acquiring a participation in eligible investment assets;

(c)  it is contracted in the same currency as the assets to be acquired with the borrowed cash;

▌

(ea)  it encumbers the assets that represent no more than 30 % of the capital of the ELTIF.

(eb)  its duration is aligned with the life of the ELTIF.

The ELTIF manager shall inform the investors in advance about future borrowing needs that arise within the investment strategy.

Article 15

Application of portfolio composition and diversification rules

1.  The investment limits laid down in Article 12(1) shall:

(a)  apply by the date specified in the ELTIF rules or instruments of incorporation, where this date shall take account of the peculiarities and characteristics of the assets to be invested by the ELTIF and shall not be later than five years or half the life of the ELTIF as determined in accordance with Article 16(2), whichever is the earlier, after the authorisation of the ELTIF. In exceptional circumstances, the competent authority of the ELTIF, upon submission of a duly justified investment plan, may approve an extension of this time limit by no more than one additional year;

(b)  cease to apply once the ELTIF starts to sell assets in accordance with its redemption policy as set out in Article 16;

(c)  be temporarily suspended where the ELTIF raises additional capital, so long as such a suspension lasts no longer than 12 months, in particular in the case of an infrastructure investment.

2.  Where a long-term asset in which the ELTIF has invested is issued by a qualifying portfolio undertaking that no longer complies with Article 10(1)(b), the long-term asset may continue to be counted for the purpose of calculating the 70% referred to in Article 12(1) for a maximum of three years as of the date when the portfolio undertaking no longer fulfils the requirements in Article 10.

Chapter III

Redemption, trading and issue of ELTIF shares or units and distributions of income

Article 16

Redemption policy

1.  The ELTIF manager may set up a professional ELTIF with no participation for retail investors or he may decide to set up an ELTIF where retail, professional and semi-professional investors can participate.

1a.   The ELTIF rules or instruments of incorporation may indicate a specific date as the end of life of the ELTIF as well as the right for temporary extension of its life-cycle and the conditions to exercise the right. Where no specific date is indicated, the life of the ELTIF shall not be limited.

1b.  When the ELTIF manager decides to let retail investors participate in the ELTIF, all investors shall be able to ask for redemption of their units or shares before the end of life of the ELTIF. However, redemption of units and shares by institutional or retail investors can only take place after the life of ELTIF is halfway and for a total maximum of 20 % of the total amount of the fund. If no redemption rights are foreseen in the rules or instruments of incorporation of the ELTIF, redemption to investors shall be possible as of the day following the date defining the end of life of the ELTIF.

ESMA shall develop draft regulatory technical standards to further specify the conditions and requirements of the redemption policy structures of ELTIFs, to achieve clarity and consistency across the Union.

2.  The life of the ELTIF shall be consistent with the long-term nature of the ELTIF and shall be sufficient in length to cover the life-cycle of each of the individual assets of the ELTIF, measured according to the illiquidity profile and economic life-cycle of the asset, and the stated investment objective of the ELTIF.

3.  Investors may request the winding down of the ELTIF if their redemption requests made in accordance with the ELTIF's redemption policy have not been satisfied within one year after the date when they have been made.

3a.  The ELTIF rules or instruments of incorporation and disclosures to investors shall lay down the procedures for reinvesting the proceeds from investment in qualifying portfolio undertakings, either in further qualifying portfolio undertakings or high-quality liquid assets, where such investments mature prior to the end of life of the ELTIF.

4.  Investors shall always have the option to be repaid in cash.

5.  Repayment in kind out of the ELTIF’s assets shall be possible only where all of the following conditions are met:

(a)  the ELTIF rules or instrument of incorporation foresees this possibility, under the condition that all investors receive fair treatment;

(b)  the investor asks in writing to be repaid through a share of the assets of the fund;

(c)  no specific rules restrict the transfer of those assets.

6.  ESMA shall develop draft regulatory technical standards specifying the circumstances in which the life of an ELTIF is sufficient in length to cover the life-cycle of each of the individual assets of the ELTIF.

ESMA shall submit those draft regulatory technical standards to the Commission by 2015.

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

Article 17

Secondary market

1.  The ELTIF rules or instrument of incorporation shall not prevent units or shares of an ELTIF from being admitted to trading on a regulated market as defined in Article 4(14) of Directive 2004/39/EC or on a multilateral trading facility as defined in Article 4(15) of Directive 2004/39/EC ▌.

2.  The ELTIF rules or instrument of incorporation shall not prevent investors from freely transferring their shares or units to third parties.

2a.  The ELTIF shall regularly publish an explanation of any significant difference between the market value of listed shares or units and its own estimate of its net asset value.

Article 18

Issuance of new shares or units

1.  An ELTIF may offer new issues of shares or units in accordance with its fund rules or instruments of incorporation.

2.  An ELTIF shall not issue new shares or units at a price below its net asset value without a prior offering of those shares or units at that price to existing investors.

Article 19

Disposal of ELTIF assets

1.  Each ELTIF shall adopt an itemised schedule for the orderly disposal of its assets in order to redeem investors after the end of life of the ELTIF.

2.  The schedule referred to in paragraph 1 shall be at least annually reviewed and shall include:

(a)  an assessment of the market for potential buyers;

(b)  an assessment and comparison of potential sales prices;

(c)  a valuation for the assets to be divested;

(d)  a precise timeframe for the disposal schedule.

3.  ESMA shall develop draft regulatory technical standards specifying the criteria to be used for the assessments in point (a) and valuation in point (c) of paragraph 2.

ESMA shall submit those draft regulatory technical standards to the Commission by […].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

Article 20

Distribution of proceeds

1.  An ELTIF may regularly distribute to investors the proceeds generated by the assets contained in the portfolio. Those proceeds shall be composed of:

(a)  any proceeds that the assets are regularly producing;

(b)  the capital appreciation realized after the disposal of an asset▐.

2.  The income distribution policy shall be designed to minimise the volatility of returns to investors. The income shall not be distributed to the extent that it is required for future commitments of the ELTIF.

2a.  An ELTIF shall be authorised to reduce its capital on a pro rata basis in the event that it has disposed of one of its portfolio assets.

3.  The ELTIF shall state in its fund rules or instruments of incorporation the distribution policy that it will adopt during the life of the fund.

Chapter IV

Transparency requirements

Article 21

Transparency

1.  The units or shares of an authorised ELTIF shall not be marketed in the Union without prior publication of a prospectus.

The units or shares of an authorised ELTIF shall not be marketed to retail investors in the Union without prior publication of a key information document (KID) in accordance with Regulation (EU) No …/... [PRIPS].

2.  The prospectus shall include the information necessary for investors to be able to make an informed judgement regarding the investment proposed to them, and, in particular, the risks attached thereto.

3.  The prospectus shall contain at least the following:

(a)  a statement setting out how the ELTIF's investment objectives and strategy for achieving these objectives qualify the fund as long term in nature;

(b)  information to be disclosed by collective investment undertakings of the closed-end type in accordance with Directive 2003/71/EC of the European Parliament and of the Council(20) and Commission Regulation (EC) No 809/2004(21);

(c)  information to be disclosed to investors pursuant to Article 23 of Directive 2011/61/EU, if it is not already covered under point(b) of this paragraph;

(d)  prominent indication of the categories of assets the ELTIF is authorised to invest in;

(da)  a cash flow statement.

▌

4.  The prospectus, the KID and any other marketing documents shall prominently notify investors about the illiquid nature of the ELTIF.

In particular, the prospectus, the KID, and any other marketing documents shall clearly:

(a)  inform investors about the long-term nature of the ELTIF’s investments;

(b)  where applicable according to Article 16(1) inform investors about the end of life of the ELTIF and any right of temporary expansion or any right of intervention of the life of the ELTIF and the specific conditions provided for;

(c)  state whether the ELTIF is intended to be marketed to retail investors;

(d)  state the rights of investors ▌to redeem their investment in accordance with Article 16(1) and with the rules or instruments of incorporation of the ELTIF;

(e)  state the frequency and the timing of any income payments, if any, to the investors during the life of the fund;

(f)  advise investors that only a small proportion of their overall investment portfolio should be invested in an ELTIF.

(fa)  inform investors about the strategy for qualifying unlisted companies to be admitted to trading in regulated markets;

(fb)  inform investors about the strategy regarding the use of derivatives taking into account specific characteristics and aspects of the project in question;

(fc)  mention any participation in instruments involving Union budgetary funds.

(fd)  inform investors regularly, at least once a year, of the progress of each investment project, the value of the individual qualifying portfolio investments and the value of other assets in which spare cash is placed as well as the nature, purpose and value of any derivatives used.

4a.  The prospectus of professional ELTIFs shall contain the information required under Article 23 of Directive 2011/61/EU. In addition, it shall also contain any deviation from the provisions of Article 12 on portfolio composition.

Article 22

Cost disclosure

1.  The prospectus shall prominently inform investors as to the level of the different costs borne directly or indirectly by the investor. The different costs shall be grouped according to the following headings:

(a)  costs of setting-up the ELTIF;

(b)  the costs related to the acquisition of assets;

(c)  management costs;

(d)  distribution costs;

(e)  other costs, including administrative, regulatory, depositary, custodial, professional service and audit costs.

2.  The prospectus shall disclose an overall ratio of the costs to the capital of the ELTIF.

3.  The key information document shall reflect all of the costs outlined in the prospectus within its expression of total costs in monetary and percentage terms.

4.  ESMA shall develop draft regulatory technical standards to specify:

(a)  the common definitions, calculation methodologies and presentation formats of the costs referred to in paragraph 1 and the overall ratio referred to in paragraph 2;

(b)  the common definition, calculation methodology and presentation format of the expression of total costs in paragraph 3.

When developing these draft regulatory technical standards, ESMA shall take into account the draft regulatory standards referred to in point (…) of Regulation (EU) No .../... [PRIPS].

ESMA shall submit those draft regulatory technical standards to the Commission by […].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

Chapter V

Marketing of units or shares of ELTIFs

Article 23

Facilities available to investors

1.  Where the rules or instruments of incorporation of a retail ELTIF provide for redemption rights, the ELTIF manager shall, in each Member State where it intends to market units or shares of that ELTIF, put in place facilities available for making subscriptions, making payments to unit- or shareholders, repurchasing or redeeming units or shares and making available the information which the ELTIF and its managers are required to provide.

2.  ESMA shall develop draft regulatory technical standards to specify the types and characteristics of the facilities, their technical infrastructure and of the content of their tasks in respect of ELTIF investors referred to in paragraph 1.

ESMA shall submit those draft regulatory technical standards to the Commission by […].

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

2a.  For professional ELTIFs, the paragraph 1 of this Article shall not apply.

Article 24

Additional requirements for marketing to retail investors

The ELTIF manager may market the units or shares of that ELTIF to retail investors provided that all of the following additional requirements are fulfilled:

(a)   the ELTIF's rules or instruments of incorporation provide that all investors benefit from equal treatment and no preferential treatment or specific economic benefits are granted to individual investors or groups of investors;

(b)   the ELTIF may be structured as a partnership if this does not require additional commitments for the investor apart from the original capital commitment;

(c)   retail investors may, during the subscription period ▌ of units or shares of the ELTIF, cancel their subscription and have the money returned without penalty;

(ca)  the ELTIF manager has established appropriate procedures and arrangements to deal with retail investor complaints, which allow retail investors to file complaints in the official language or one of the official languages of their Member State;

(cb)  the legal form of the ELTIF is such that retail investors cannot lose more than the amount that they have invested into the fund;

(cc)  the ELTIF invests in units or shares of EuVECA and EuSEF only where those funds have a depositary;

ESMA shall develop standards further specifying the provisions for retail investors to be included in the rules or instruments of incorporation.

Article 25

Marketing of units or shares of ELTIFs

1.  The ELTIF manager shall be able to market the units or shares of that authorised ELTIF to professional, semi-professional and retail investors in its home Member State upon notification in accordance with Article 31 of Directive 2011/61/EU.

2.  The ELTIF manager may market the units or shares of that authorised ELTIF to professional, semi-professional and retail investors in Member States other than in the home Member State of the ELTIF manager upon notification in accordance with Article 32 of Directive 2011/61/EU.

3.  The ELTIF manager shall in respect of each ELTIF specify to its competent authority whether or not it intends to market it to retail investors.

4.  In addition to the documentation and information required pursuant Article 32 of Directive 2011/61/EU the manager of the ELTIF shall provide to its competent authority all of the following:

(a)  the prospectus of the ELTIF;

(b)  the key information document of the ELTIF in case of marketing to retail investors;

(c)  information on the facilities referred to in Article 22.

5.  The competences and powers of the the competent authorities pursuant to Article 32 of Directive 2011/61/EU shall be understood to also refer to the marketing of ELTIFs to retail investors and to cover the additional requirements laid down in this Regulation.

6.  ▌The competent authority of the home Member State of the ELTIF manager shall prohibit the marketing of an authorised ELTIF if the ELTIF manager does not comply with this Regulation.

7.  In addition to its powers in accordance with the first subparagraph of Article 32(3) [...] of Directive 2011/61/EU, the competent authority of the home Member State of the ELTIF manager shall also refuse the transmission of a complete notification file to the competent authorities of the Member State where the ELTIF is intended to be marketed, if the ELTIF manager does not comply with this Regulation.

Chapter VI

Supervision

Article 26

Supervision by the competent authorities

1.  The competent authorities shall supervise compliance with this Regulation on an on-going basis.

2.  The competent authority of the ELTIF shall be responsible for supervising compliance with the rules laid down in Chapters II, III and IV.

3.  The competent authority of the ELTIF shall be responsible for supervising compliance with the obligations set out in the fund rules or in the instruments of incorporation, and the obligations set out in the prospectus, which shall be consistent with this Regulation.

4.  The competent authority of the ELTIF manager shall be responsible for supervising the adequacy of the arrangements and organisation of the manager so that the manager of the ELTIF is in a position to comply with the obligations and rules which relate to the constitution and functioning of all the ELTIFs it manages.

The competent authority of the manager shall be responsible for supervising compliance of the ELTIF manager with this Regulation.

5.  Competent authorities shall monitor collective investment undertakings established or marketed in their territories to verify that they do not use the ELTIF designation or suggest that they are an ELTIF unless they are authorised and comply with this Regulation.

Article 27

Powers of competent authorities

1.  Competent authorities shall have all supervisory and investigatory powers that are necessary for the exercise of their functions pursuant to this Regulation.

1a.  The competent authority of the ELTIF shall, while respecting the principle of proportionality, take the appropriate measures, in particular where ELTIF manager:

(a)  fails to comply with the requirements that apply portfolio composition and diversification in breach of Articles 12 and 15;

(b)  markets, the units of shares of a ELTIF to retail investors in breach of Article 24 and 25;

(c)  uses the designation ELTIF but is not authorised to do so in accordance with Article 3;

(d)  uses the designation ELTIF for the marketing of funds which are not established in accordance with Article 3(1);

(e)  fails to comply with the applicable rules and liability in breach of Article 6.

1b.  In the cases referred to in paragraph 1a, the competent authority of the home Member State of the ELTIF shall, as appropriate:

(a)  take measures to ensure that the ELTIF manager complies with Articles 3, 6, 12, 15, 24, and 25.

(b)  prohibit the use of the designation ELTIF and withdraw the approval given to the ELTIF manager concerned from the authorisation.

2.  The powers conferred on competent authorities in accordance with Directive 2011/61/EU shall be exercised also with respect to this Regulation.

Article 28

Powers and competences of ESMA

1.  ESMA shall have the powers and resources necessary to carry out the tasks attributed to it by this Regulation.

2.  ESMA’s powers in accordance with Directive 2011/61/EU shall be exercised also with respect to this Regulation and in compliance with Regulation (EC) No 45/2001.

3.  For the purposes of Regulation (EU) No 1095/2010, this Regulation shall be included under any further legally binding Union act which confers tasks on the Authority as referred to in Article 1(2) of Regulation (EU) No 1095/2010.

Article 29

Cooperation between authorities

1.  The competent authority of the ELTIF and the competent authority of the manager, if different, shall cooperate with each other and exchange information for the purpose of carrying out their duties under this Regulation.

2.  Competent authorities and ESMA shall cooperate with each other for the purpose of carrying out their respective duties under this Regulation in accordance with Regulation (EU) No 1095/2010.

3.  Competent authorities and ESMA shall exchange all information and documentation necessary to carry out their respective duties under this Regulation in accordance with Regulation (EU) No 1095/2010, in particular to identify and remedy breaches of this Regulation.

Chapter VII

Final provisions

Article 30

Review

The Commission shall start a review of the application of this Regulation at the same time as or immediately after the review provided for in Article 69 of the Directive 2011/61/EU. The review shall analyse in particular:

(a)  the impact of ▌ Article 16(1)▐;

(b)  the impact on asset diversification of the application of the minimum threshold of 70 % of eligible investment assets laid down in Article 12(1), in particular ▌ whether increased measures on liquidity would be necessary▐;

(c)  the extent to which ELTIFs are marketed in the Union, including whether AIFMs within the meaning of Article 3(2) of Directive 2011/61/EU might have an interest in marketing ELTIFs;

(ca)  the extent to which the list of eligible assets and investments should be updated, as well as the diversification rules, portfolio composition and limits regarding the borrowing of cash.

The results of that review shall be communicated to the European Parliament and to the Council accompanied, where necessary, by appropriate proposals for amendments.

Article 31

Entry into force

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

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

Done at ...,

For the European Parliament For the Council

The President The President

(1) The matter was referred back to the committee responsible for reconsideration pursuant to Rule 57(2), second subparagraph (A7-0211/2014). (2) Amendments: new or amended text is highlighted in bold italics; deletions are indicated by the symbol ▌. (3) OJ C 67, 6.3.2014, p. 71. (4) Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision (OJ L 235, 23.9.2003, p. 10). (5) 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). (6) Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1). (7) 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). (8) Directive 2014/.../EU of the European Parliament and of the Council of ... on markets in financial instruments and amending Directive 2011/61/EU and Directive 2002/92/EC [new MIFID].(OJ L ...). (9) 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). (10) Commission Regulation (EC) No 809/2004 of 29 April 2004 implementing Directive 2003/71/EC of the European Parliament and of the Council as regards information contained in prospectuses as well as the format, incorporation by reference and publication of such prospectuses and dissemination of advertisements (OJ L 149, 30.4.2004, p. 1). (11) Regulation (EU) No …/... of the European Parliament and the Council on ... [PRIPS] (OJ ...). (12) Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority) (ESMA), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84). (13) Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (OJ L 281, 23.11.1995, p. 31). (14) Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and of the free movement of such data (OJ L 8, 12.1.2001, p. 1). (15) 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 177, 30.6.2006, p. 1). (16) 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). (17) Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32). (18) Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36). (19) OJ L 193, 18.7.1983, p. 1. (20) OJ L 345, 31.12.2003, p. 64. (21) OJ L 149, 30.4.2004, p. 1.

European Parliament legislative resolution of 17 April 2014 on the proposal for a directive of the European Parliament and of the Council establishing a framework for maritime spatial planning and integrated coastal maritime spatial planning and integrated coastal management (COM(2013)0133 – C7-0065/2013 – 2013/0074(COD))

P7_TA(2014)0449 A7-0379/2013

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2013)0133),

–  having regard to Article 294(2) and Articles 43(2) and 100(2), 192(1) and 194(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7‑0065/2013),

–  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 a Parliament of the Kingdom of Belgium, the German Bundesrat, the Irish House of Representatives, the Irish Senate, the Lithuanian Parliament, the Netherlands Senate, the Netherlands House of Representatives, the Polish Senate, the Finnish Parliament and the Swedish Parliament, 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 18 September 2013(1),

–  having regard to the opinion of the Committee of the Regions of 9 October 2013(2),

–  having regard to the undertaking given by the Council representative by letter of 12 March 2014 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 55 of its Rules of Procedure,

–  having regard to the report of the Committee on Transport and Tourism and the opinions of the Committee on the Environment, Public Health and Food Safety and the Committee on Fisheries (A7-0379/2013),

1.  Adopts its position at first reading hereinafter set out(3);

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

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 17 April 2014 with a view to the adoption of Directive 2014/.../EU of the European Parliament and of the Council establishing a framework for maritime spatial planning

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive 2014/89/EU.)

(1) OJ C 341, 21.11.2013, p. 67. (2) OJ C 356, 5.12.2013, p. 124. (3) This position replaces the amendments adopted on 12 December 2013 (Texts adopted P7_TA(2013)0588).

European Parliament resolution of 17 April 2014 on Parliament’s estimates of revenue and expenditure for the financial year 2015 (2014/2003(BUD))

P7_TA(2014)0450 A7-0277/2014

The European Parliament,

–  having regard to Article 314 of the Treaty on the Functioning of the European Union,

–  having regard to Regulation (EU, Euratom) No 966/2012 of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002(1), and in particular Article 36 thereof,

–  having regard to Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020(2) ,

–  having regard to the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management(3), and in particular point 27 thereof,

–  having regard to Regulation (EU, Euratom) No 1023/2013 of the European Parliament and of the Council of 22 October 2013 amending the Staff Regulations of Officials of the European Union and the Conditions of Employment of Other Servants of the European Union(4),

–  having regard to the cooperation agreement of 5 February 2014 between the European Parliament and the European Economic and Social Committee and the Committee of Regions,

–  having regard to its resolution of 23 October 2013 on the draft general budget of the European Union for the financial year 2014(5),

–  having regard to the Secretary-General's report to the Bureau on drawing up Parliament's preliminary draft estimates for the financial year 2015,

–  having regard to the preliminary draft estimates drawn up by the Bureau on 2 April 2014 pursuant to Rules 23(7) and 79(1) of Parliament's Rules of Procedure,

–  having regard to its positions of 11 March 2014 on the adjustment of the remuneration and pension of the officials and other servants of the European Union and the correction coefficients applied thereto(6),

–  having regard to the draft estimates drawn up by the Committee on Budgets pursuant to Rule 79(2) of Parliament's Rules of Procedure,

–  having regard to Rule 79 of its Rules of Procedure,

–  having regard to the report of the Committee on Budgets (A7-0277/2014),

A.  whereas the 2015 budgetary procedure will run during a European election year, when the estimates of the Parliament for the financial year 2015 will be adopted by the current Parliament and the final budget will be approved by the new Parliament in the autumn;

B.  whereas the ceiling of heading V (Administration), set by the new Multiannual Financial Framework for 2014-2020 period, amounts to EUR 9 076 million for the 2015 budget; whereas the sub-ceiling for overall administrative expenditure of the institutions has been set at EUR 7 351 million;

C.  whereas the following three priorities have been proposed by the Secretary-General for the 2015 financial year, namely: to mobilise all necessary resources and support in order to empower the Members of the new Parliament to fulfil their mandate, to consolidate and reinforce structural changes in order to strengthen the Parliament's capacities to comply with all its powers and to assign the necessary means for the implementation of the multiannual projects;

D.  whereas the Secretary-General has proposed to continue and further strengthen the four activity areas adopted after the consultation of the Joint Bureau-Committee on Budgets Working Group in 2014, namely strengthening independent scientific advice and the capacity for scrutiny and improving logistical and local support for Members;

E.  whereas the Parliament will continue to exercise, in a transparent manner, a high degree of budgetary responsibility, control and self-restraint, while at the same time striking a delicate balance between budgetary rigour and structural savings on one hand and a concerted drive for efficiency on the other hand;

F.  whereas despite little room for manoeuvre and the need to counterbalance savings in other areas, certain investments should be considered in order to strengthen the institutional role of the Parliament and to improve the sustainability of the budget;

G.  whereas cooperation between the Bureau and the Committee on Budgets on Parliament's budget has proven its role in the process of structural reforms by identifying efficiency gains and possible savings in the Parliament’s budget throughout the annual budget procedures; whereas possible savings, which affect the work of the Parliament and its Members, need to be discussed in the political groups and decided by a vote in plenary in the context of the budget procedure;

H.  whereas the agreement reached on 11 March 2014 on remuneration and pensions adjustments for 2011 and 2012 and its impact on the Parliament’s budget for 2015 emerged as a new element of negotiations during the conciliation phase between the Bureau and the Committee on Budgets;

General framework and overall budget

1.   Stresses that the 2015 budget should be set on a realistic basis and should be in line with the principles of budgetary discipline and sound financial management; notes that 2015 will be a full year for the new Parliament in office;

2.  Believes that the Parliament's budget should reflect the current economic situation experienced by citizens across the Union, as the well as the fiscal constraints faced by many Member States, some of whom are engaged in serious efforts to bring their budgets onto a more sustainable long-term footing;

3.  Stresses that in order to allow the Members of the new Parliament to fulfil their mandate and to empower the Parliament's capacity to comply with all its powers, a sufficient level of resources should be ensured;

4.  Welcomes the priorities set for the financial year 2015 and emphasises that they are fully in line with the priorities identified by the Secretary-General and discussed by the Joint Bureau - Committee on Budgets Working Group; stresses that these reforms should continue in order to bring substantial efficiency gains and free up resources, without jeopardising legislative excellence, budgetary powers and powers of scrutiny, the relations with national parliament and the quality of working conditions;

5.  Recalls that the level of the preliminary draft estimates for the 2015 budget, as suggested by the Secretary-General's Report, amounted to EUR 1 822 929 112 (20,09 % of heading V); takes into account the rate of increase of 3,83 %, compared with the 2014 budget; notes that 0,67 % of this increase corresponds to the Members’ allocation for the end of their mandate, which are statutory and obligatory costs and 1,42 % to long term investments in the construction of the KAD building; notes that the level of the increase for the other expenditure would thus correspond to +1,74 %;

6.  Takes note of the Preliminary Draft Estimates of the European Parliament for the financial year 2015 as adopted by the Bureau on 2 April 2014; welcomes the level of preliminary draft estimates, as adopted by the Bureau, which are significantly lower than the initial proposal; regrets however the lengthy and difficult procedure;

7.  Approves the draft estimates for the year 2015 at EUR 1 794 929 112, corresponding to an overall rate of increase of 1,8 % over the 2014 budget and agrees furthermore to include in its draft estimates the obligatory extraordinary expenditure of 0,4 % resulting from the new agreement on the coefficient for the adjustment of the remunerations and pensions;

8.  Believes that further savings could be achieved by having a critical look at the ICT budget lines, the expenditures on vehicles and the contingency reserve;

9.  Believes that the next legislature will have the possibility to reconsider and adapt the budgetary priorities and will take the final decision in October 2014;

10.  Invites the Secretary-General to present before the reading of the budget an estimate of the costs of the construction of the KAD building over the coming years in order to foresee the correct amount in the 2015 budget; furthermore invites the Secretary General to evaluate, at the end of the year, the funds not used in the 2014 budget and to commit them to the KAD project;

11.  Emphasises, that as statutory and obligatory expenditure, such as rental and energy costs as well as expenditure for wages, is subject to annual indexations, the level for the other expenditure has been reduced in nominal terms; notes that this was possible due to structural reforms and savings achieved in the previous years;

12.  Calls for the potential savings identified by the Joint Bureau and Committee on Budgets Working Group to be explored further in order to generate substantial organisational savings, such as the scope for interinstitutional cooperation arrangements between the Parliament, the European Economic and Social Committee and the Committee of the Regions, which reflects the will to strengthen the institutional, political and legislative role of the Parliament and the two advisory Committees; notes that restructuring the Committees’ Translation Service should improve their respective political core work and strengthen the new Research Service for Members; emphasises that according to this organisational reform, the Parliament can become the standard provider for the interpretation of these two Committees; supports the idea of offering interpretation capacities to other institutions during off-peak times;

13.  Takes note of the interinstitutional cooperation arrangement between the Parliament, the European Economic and Social Committee and the Committee of the Regions, signed on 5 February 2014; requests detailed information on the financial impact and the progress of the implementation of this agreement to be provided to the Committee on Budgets by early 2015, having regard to the preparation of the estimates for the budget 2016;

14.  Welcomes internal measures leading to efficiency savings in the Parliament's budget, such as the development of a system of translation based on Members’ demands for committee amendments, a system of on-request interpretation for meetings other than the Plenary, the implementation of a paperless Parliament, proposals for a more efficient structure of the working rhythm of the Parliament and migration from Streamline to Sysper2 system;

15.  Underlines that the statutory and compulsory expenditure needed for 2015 must be covered; considers that a final decision can only be taken by the new legislature, in autumn, once the exact amounts will be known;

Specific issues

16.  Stresses that structural economic measures undertaken throughout the seventh legislature have led to significant savings in the Parliament’s budget, such as EUR 15 million and EUR 10 million annually in the field of interpretation and translation respectively, an additional EUR 4 million in travel expenses and EUR 28 million of savings of interest by pre-financing buildings; notes that further savings are anticipated in 2015, namely EUR 1,9 million from the transfer of the management of the Members' pensions to the Commission and EUR 1,5 million in buildings;

17.  Emphasises the fact that institutional self-restraint in the seventh legislature, considering the level of relevant inflation rates, has resulted in a reduction of Parliament's budget in real terms for 2012 and 2014; notes that once exceptional and non-recurrent expenditure, such as Union enlargements or other expenditure linked to the entry in force of the Treaty of Lisbon, European elections and the financing of building projects were taken out, it showed a decrease in five years out of six (2009, 2011, 2012, 2013 and 2014); stresses, furthermore, that the Members' allowances have been frozen since 2011, the travel expenditure for Members and staff have been reduced by 5 % and the staff mission allowances have not been indexed since 2007;

18.  Considers the note of the Secretary-General of November 2013 on the Implementation of the Staff Regulations and the reform and revision of the rules and procedures deriving from them; insists that the rules on parental leave are implemented correctly;

19.  With reference to its abovementioned resolution of 23 October 2013 on the draft general budget of the European Union for the financial year 2014, notes that in order to comply with the 1 % annual staffing level reduction, the General Secretariat of the Parliament will decrease its number of staff and that any new tasks will be met through available human resources and redeployment;

20.  Reiterates Parliaments' responsibility to act in a sustainable way; welcomes the efforts made in order to achieve a paperless environment and the on-going valuable work realised through the EMAS approach; believes that the EMAS process needs continued support;

21.  Takes into consideration the conclusions of the Joint Bureau - Committee on Budgets Working Group on the Parliament budget to pursue structural and organisational reforms; notes, in that regard, that the provision of independent scientific advice and the capacity to exercise scrutiny, as well as support to the Members, should be further improved to strengthen Parliament's work as an institution vested with legislative and democratic scrutiny powers; stresses that these objectives shall be implemented in a financially responsible manner and that the Secretary-General should set out clearly a detailed plan, to be presented to the Committee on Budgets, on how these objectives will be met and the budgetary impact they will have before the Parliament's reading of the budget for 2015;

22.  Regrets the freezing of allocations for political groups; political groups are indispensable contributors when it comes to Parliament's legislative and non-legislative work and its exercise of scrutiny;

23.  Stresses that in order to address the development of these four areas of activities in a financially responsible manner, the Joint Working Group has identified seven areas where Parliament can improve its efficiency:

24.  Admitting the importance of efficiency and cost-effectiveness in the field of interpretation, recalls that these aspects must not erode the availability of live and accessible information across the Union, considering that multilingualism and interpretation for web-streaming and Parliament transparency are of key importance for the public and thus for the Members of the Parliament;

25.  Believes that some of the ICT expenditure benefitting Members directly could be financed through the Members' general expenditure allowance;

26.  Reiterates that long-term investments, such as Parliament's building projects, need to be handled prudently and transparently; insists on strict cost management, project planning and supervision; reiterates its call for a transparent decision-making process in the field of buildings policy, based on early information; calls for a detailed analysis and update of the Parliament's property policy adopted by the Bureau in March 2010 and an overview of the investments made per year and per building under the 2009-2014 legislature to be presented to the Committee on Budgets by August 2014 at the latest, reiterates its request for precise information on the progress of buildings projects and its financial implication to be provided every six months;

27.  Takes note of the fact that the opening of the European House of History is foreseen at the end of 2015; awaits the updated information on the state-of-play of the project from the Secretary-General and the Bureau to be presented in due time before the Parliament’s reading in autumn 2014; reiterates the commitment that the final cost outturn should not exceed the figures set out in its business plan;

28.  Recalls that on 10 June 2013, the Bureau endorsed the Secretary-General's proposals for immediate and phase-in measures in order to modernise the Parliament's 2014-2019 catering policy; calls, therefore, on the Bureau to present to the Committee on Budgets a clear evaluation of possible budgetary implications of this reform for the 2015 budget and beyond in due time for the preparation of the Parliament's reading of the budget for 2015;

29.  Calls on the Secretary-General to report to the Committee on Budgets on the implementation and the financial impact of the new global security concept by spring 2015; requests detailed information on the financial consequences of the creation of the new Directorate-General for Security in 2013; calls for information on the financial consequences of the interinstitutional administrative cooperation arrangements in the field of security;

30.  Takes note of the creation of the new Directorate-General for Parliamentary Research Services on 1 November 2013; recalls that it was created in a budgetary neutral way by redeployments from DGs PRES and IPOL and that the new Directorate-General will not require new human or financial resources in 2015; calls for information on the number of posts in the new Directorate in August/September 2014, including the planned transfer of posts from the two European Advisory Committees, as compared to the situation in January 2014 and asks for a breakdown of how its external expertise resources are to be used, which should be presented to the Committee on Budgets in due time for the preparation of the Parliament's reading of the budget for 2015;

Final considerations

31.  Adopts the estimates for the financial year 2015;

o
o   o

32.  Instructs its President to forward this resolution and the estimates to the Council and the Commission.

(1) OJ L 298, 26.10.2012, p. 1. (2) OJ L 347, 20.12.2013, p. 884. (3) OJ C 373, 20.12.2013, p. 1. (4) OJ L 287, 29.10.2013, p. 15. (5) Texts adopted, P7_TA(2013)0437. (6) Texts adopted, P7_TA(2014)0186 and P7_TA(2014)0187.

European Parliament legislative resolution of 17 April 2014 on the proposal for a directive of the European Parliament and of the Council on certain rules governing actions for damages under national law for infringements of the competition law provisions of the Member States and of the European Union (COM(2013)0404 – C7-0170/2013 – 2013/0185(COD))

P7_TA(2014)0451 A7-0089/2014

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2013)0404),

–  having regard to Article 294(2) and Articles 103 and 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7‑0170/2013),

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

–  having regard to the opinion of the European Economic and Social Committee of 16 October 2013(1),

–  having regard to the undertaking given by the Council representative by letter of 26 March 2014 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 55 of its Rules of Procedure,

–  having regard to the report of the Committee on Economic and Monetary Affairs and the opinions of the Committee on Legal Affairs and the Committee on the Internal Market and Consumer Protection (A7-0089/2014),

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

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

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 17 April 2014 with a view to the adoption of Directive 2014/…/EU of the European Parliament and of the Council on certain rules governing actions for damages under national law for infringements of the competition law provisions of the Member States and of the European Union

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive 2014/104/EU.)

(1) OJ C 67, 6.3.2014, p. 83.

European Parliament legislative resolution of 17 April 2014 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 1013/2006 on shipment of waste (COM(2013)0516 – C7-0217/2013 – 2013/0239(COD))

P7_TA(2014)0452 A7-0069/2014

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2013)0516),

–  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 (C7‑0217/2013),

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

–  having regard to the opinion of European Economic and Social Committee of 10 December 2013(1),

–  having regard to the opinion of the Committee of the Regions of 30 January 2014(2),

–  having regard to the undertaking given by the Council representative by letter of 12 March 2014 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 55 of its Rules of Procedure,

–  having regard to the report of the Committee on the Environment, Public Health and Food Safety (A7-0069/2014),

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

2.  Takes note of the Commission statement annexed to this resolution;

3.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

4.  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 17 April 2014 with a view to the adoption of Regulation (EU) No .../2014 of the European Parliament and of the Council amending Regulation (EC) No 1013/2006 on shipments of waste

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) No 660/2014.)

ANNEX TO THE LEGISLATIVE RESOLUTION

Commission statement

The Commission intends to make use of its prerogative to adopt guidance including on risk assessment for inspection plans and, as necessary, electronic data interchange.

(1) Not yet published in the OJ. (2) Not yet published in the OJ.

European Parliament legislative resolution of 17 April 2014 on the proposal for a regulation of the European Parliament and of the Council on new psychoactive substances (COM(2013)0619 – C7-0272/2013 – 2013/0305(COD))

P7_TA(2014)0453 A7-0172/2014

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2013)0619),

–  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 (C7‑0272/2013),

–  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 United Kingdom House of Commons and the United Kingdom House of Lords, 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 21 January 2014(1),

–  having regard to Rule 55 of its Rules of Procedure,

–  having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs and the opinion of the Committee on the Environment, Public Health and Food Safety (A7-0172/2014),

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

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

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 17 April 2014 with a view to the adoption of Regulation (EU) No .../2014 of the European Parliament and of the Council on new psychoactive substances

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the European Commission,

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

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

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

Whereas:

(1)  New psychoactive substances, which may have numerous commercial and industrial uses, as well as scientific uses, can pose health, social and safety risks when consumed by humans.

(2)  During the past years, Member States have notified an increasing number of new psychoactive substances via the mechanism for rapid exchange of information which was established by Joint Action 97/396/JHA(4) and was further strengthened by the Council Decision 2005/387/JHA(5). A large majority of these new psychoactive substances were reported by more than one Member State. Many such new psychoactive substances were sold to consumers without appropriate labelling and instructions of use.

(3)  Member States' competent public authorities introduce various restriction measures on these new psychoactive substances to address the risks that they pose or may pose when consumed. As new psychoactive substances are often used for scientific research and development purposes and in the production of various goods or of other substances which are used for manufacturing goods, such as medicines, industrial solvents, cleaning agents, goods in the hi-tech industry, restricting their access for this use can have an important impact on economic operators, potentially disrupting their business activities in the internal market and can also impede sustainable scientific research and development. [Am. 1]

(4)  The increasing number of new psychoactive substances available in the internal market, their growing diversity, the speed with which they emerge on the market, the different risks that they may pose when consumed by humans, and the growing number of individuals who consume them and the lack of general public knowledge and awareness about the risks associated with their consumption, challenge the capacity of public authorities to provide effective responses to protect public health and safety without hampering the functioning of the internal market. [Am. 2]

(5)  Restriction As conditions and circumstances differ in Member States with regard to psychoactive substances, restriction measures vary significantly accordingly in different Member States, meaning that economic operators that use them in the production of various goods must comply, in the case of the same new psychoactive substance, with different requirements, such as pre-export notification, export authorisation, or import and export licences. Consequently, the differences between the Member States' laws, regulations and administrative provisions on new psychoactive substances could potentially hinder to some extent the functioning of the internal market, by causing obstacles to trade, market fragmentation, lack of legal clarity and of an even level playing field for economic operators, making it more difficult for companies to operate across the internal market. [Am. 3]

(6)  Restriction measures could not only cause barriers to trade in the case of new psychoactive substances that already have commercial, industrial or scientific uses, but can could also impede the development of such uses, and are likely to cause obstacles to trade for economic operators that seek to develop such uses, by making access to those new psychoactive substances more difficult. [Am. 4]

(7)  The disparities between the various restriction measures applied to new psychoactive substances can, while they are legitimate since they respond to each Member State's particularities with regard to psychoactive substances, could also lead to displacement of harmful new psychoactive substances between the Member States, hampering efforts to restrict their availability to consumers and undermining consumer protection across the Union, if efficient information exchange and coordination among Member States is not strengthened. [Am. 5]

(7a)  Such disparities facilitate illegal trafficking in such substances by criminals, in particular organised criminal gangs. [Am. 6]

(8)  Such disparities are expected to increase continue as Member States continue to pursue adopt divergent approaches to addressing challenges with regard to new psychoactive substances. Therefore, the obstacles to trade and market fragmentation, and the lack of legal clarity and of a level playing field are expected to increase continue, further hindering the functioning of the internal market if Member States do not coordinate and cooperate more efficiently. [Am. 7]

(9)  Those Where distortions to the functioning of the internal market are identified they should be eliminated addressed and, to that end, the rules relating to new psychoactive substances that are of concern at Union level should be approximated, while, at the same time, ensuring a high level of health, safety and consumer protection and flexibility for Member States to respond to local situations. [Am. 8]

(10)  New psychoactive substances and mixtures should be able to move freely in the Union when intended for commercial and industrial use, as well as for scientific research and development, by duly authorised persons in establishments which are directly under the control of Member States' authorities or specifically approved by them. This Regulation should establish rules for introducing restrictions to this free movement. [Am. 9]

(11)  New psychoactive substances that pose health, social and safety risks across the Union should be addressed at the Union level. Action on new psychoactive substances under this Regulation should contribute to a high level of protection of human health and safety, as enshrined in the Charter of Fundamental Rights of the European Union.

(12)  This Regulation should not apply to drug precursors because the diversion of those chemical substances for the purpose of manufacturing narcotic drugs or psychotropic substances is addressed under Regulation (EC) No 273/2004 of the European Parliament and of the Council(6) and Council Regulation (EC) No 111/2005(7).

(13)  Any Union action on new psychoactive substances should be based on scientific evidence and subject to a specific procedure. Based on the information notified by Member States, a report should be drawn up on new psychoactive substances that give rise to concerns across the Union. The report should indicate whether it is necessary to carry out a risk assessment. Following the risk assessment, the Commission should determine whether the new psychoactive substances should be subjected to any restriction measures. In case of immediate public health concerns, the Commission should subject them to temporary consumer market restriction before the conclusion of the risk assessment. In case new information emerges on a new psychoactive substance, the Commission should re-assess the level of risks that it poses. Reports on new psychoactive substances should be made publicly available.

(14)  No risk assessment should be conducted under this Regulation on a new psychoactive substance if it is subject to an assessment under international law, or if it is an active substance in a medicinal product or in a veterinary medicinal product, unless there are sufficient data available at Union level to suggest the need for a joint report of the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) and Europol. [Am. 10]

(15)  Where the new psychoactive substance on which a report is drawn up is an active substance in a medicinal product or in a veterinary medicinal product, the Commission should assess with the European Medicines Agency the need for further action.

(16)  The measures taken on new psychoactive substances at Union level should be proportionate to the health, social and safety risks that they pose.

(17)  Certain new psychoactive substances pose immediate public health risks, requiring urgent action. Therefore, their availability to consumers should be restricted for a limited sufficient period of time, pending their risk assessment and until the level of risk posed by a new psychoactive substance has been determined and, if justified, a decision introducing permanent market measures has entered into force. [Am. 11]

(18)  No On the basis of existing evidence and on predefined criteria, no restriction measures should be introduced at Union level on new psychoactive substances which pose low health, social and safety risks, but Member States may introduce further measures that are deemed appropriate or necessary depending on the specific risks that a substance poses in their territories taking into account national circumstances and any social, economic, legal, administrative or other factor they may consider relevant. [Am. 12]

(19)  Those On the basis of the existing evidence and of predefined criteria, those new psychoactive substances which pose moderate health, social and safety risks should not be made available to consumers. [Am. 13]

(20)  Those On the basis of the existing evidence and of predefined criteria, those new psychoactive substances which pose severe health, social and safety risks should not be made available on the market. [Am. 14]

(21)  This Regulation should provide for exceptions in order to ensure the protection of human and animal health, to facilitate scientific research and development, and to allow the use of new psychoactive substances in industry, provided that they are not liable to have adverse effects and that they cannot be abused or recovered. [Am. 15]

(21a)  Member States should take appropriate measures to prevent the diversion to the illicit market of new psychoactive substances used for research and development purposes or for any other authorised uses. [Am. 16]

(22)  In order to ensure the efficient implementation of this Regulation, the Member States should lay down rules on the sanctions applicable to infringements of restriction measures. Those sanctions should be effective, proportionate and dissuasive.

(23)  The EMCDDA established by Regulation (EC) No 1920/2006 of the European Parliament and of the Council(8) should have a central role in the exchange and coordination of information on new psychoactive substances and in the assessment of the health, social and safety risks that they pose. Given that within the scope of this Regulation there is an increase in the amount of information expected to be collected and managed by EMCDDA, specific support should be envisaged and provided. [Am. 17]

(24)  The mechanism for rapid exchange of information on new psychoactive substances (the 'European Union Early Warning System on New Psychoactive Substances' ('EWS')) has proved to be a useful channel for sharing information on new psychoactive substances, on new trends in the use of controlled psychoactive substances and on related public health warnings. That mechanism should be further strengthened to To enable a more effective response to the rapid emergence and spread of new psychoactive substances across the Union, the mechanism should be maintained and further developed, in particular as regards to the collection and management of data on the detection and identification of new psychoactive substances, adverse events associated with their use, and the involvement of criminal groups in the market through the Union new psychoactive substances database (the 'European Database on New Drugs'). The media, particularly scientific and medical literature, can be an important source of information on adverse event case reports. In order to enhance the efficiency of reporting, the EMCDDA should monitor all new psychoactive substances and enter this information in the European Database on New Drugs. Data sets essential to the functioning of this Regulation include data on the detection and identification of new psychoactive substances, adverse events associated with their use, and the involvement of criminal groups in the market. A core data set should be defined. The core data set should be reviewed on a regular basis to ensure that it reflects the information required for the effective functioning of this Regulation. Suspected serious adverse events, including fatal adverse events, should be subject to expedited reporting. [Am. 18]

(24a)  In order to allow Member States to receive, access simultaneously and share information on new psychoactive substances in the Union, the European Database on New Drugs should be fully and permanently accessible to the Member States, the EMCDDA, Europol and the Commission. [Am. 19]

(24b)  The EMCDDA should issue health alerts to all Member States, through the system for rapid exchange of information on new psychoactive substances if, on the basis of information received on a new psychoactive substance, that substance seems to cause public health concerns. Those health alerts should also contain information regarding prevention, treatment and harm reduction measures that could be taken to address the risks associated with the substance. [Am. 20]

(24c)  In order to protect public health, the EWS activities of EMCDDA and Europol should be adequately funded. [Am. 21]

(25)  Information from Member States is crucial for the effective functioning of the procedures leading to decision on market restriction of new psychoactive substances. Therefore, Member States should monitor and collect, on a regular basis, data on the emergence and use of any new psychoactive substances, related health, safety and social problems and policy responses, in accordance with the EMCDDA framework for data collection for the key epidemiological indicators and other relevant data. They should share this those data notably with the EMCDDA, Europol and the Commission. [Am. 22]

(25a)  Information on new psychoactive substances provided by and exchanged among Member States is crucial for their national health policies, both in terms of drug prevention and of the treatment for psychoactive drug users in recovery services. Member States should make use of all the available information in an effective manner and monitor the relevant developments. [Am. 23]

(26)  A lack of capacity to identify and anticipate the emergence and spread of new psychoactive substances and a lack of evidence about their health, social and safety risks hamper the provision of an effective response. Therefore, support and the necessary resources should be provided, including at Union and national level, to facilitate regular and systematic cooperation between the EMCDDA, National Focal Points, health care and law enforcement representatives at national and regional level, research institutes and forensic laboratories with relevant expertise, in order to increase the capacity to assess and address effectively new psychoactive substances. [Am. 24]

(26a)  Appropriate safeguards, such as data anonymisation, should be put in place in order to ensure a high level of protection of personal data, in particular when sensitive data are collected and shared. [Am. 25]

(27)  The procedures for information exchange, risk assessment and adoption of temporary and permanent restriction measures on new psychoactive substances established by this Regulation should enable swift action. Market restriction measures should be adopted without undue delay, not later than eight weeks from receipt of the joint report or risk assessment report.

(28)  As long as the Union has not adopted measures to subject a new psychoactive substance to market restriction under this Regulation, Member States may adopt technical regulations on that new psychoactive substance in compliance with the provisions of Directive 98/34/EC of the European Parliament and of the Council(9). In order to preserve the unity of the Union’s internal market and to prevent the emergence of unjustified barriers to trade, Member States should immediately communicate to the Commission any draft technical regulation on new psychoactive substances, in accordance with the procedure established by Directive 98/34/EC.

(28a)  Children and adolescents are particularly vulnerable to the dangers presented by such substances, the risks of which are still largely unknown. [Am. 26]

(29)  Prevention, early detection and intervention, treatment, risk and harm reduction measures are important for addressing the growing use of new psychoactive substances and their potential risks. Member States should improve the availability and effectiveness of prevention programmes and raise awareness about the risk of the use of new psychoactive substances and related consequences. To that end, prevention measures should include early detection and intervention, promotion of healthy lifestyles and targeted prevention directed also at families and communities. The internet, which is one of the important and rapidly developing distribution channels through which new psychoactive substances are advertised and sold, should be used for disseminating information on the health, social and safety risks that they pose, and for the prevention of misuse and abuse. It is essential for children, adolescents and young adults to be made aware of those risks, including by means of information campaigns in schools and other educational environments. [Am. 27]

(29a)  The Commission and the Member States should also promote educational and awareness-raising activities, initiatives and campaigns, targeting the health, social and safety risks associated with the misuse and abuse of new psychoactive substances. [Am. 28]

(30)  Medicinal products and veterinary medicinal products are addressed under Directive 2001/82/EC of the European Parliament and of the Council(10), Directive 2001/83/EC of the European Parliament and of the Council(11) and Regulation (EC) No 726/2004 of the European Parliament and of the Council(12). Their abuse or misuse should, therefore, not be covered by this Regulation.

(30a)  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 amending the criteria regarding low, moderate and severe risk substances. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council. [Am. 29]

(31)  In order to ensure uniform conditions for the implementation of temporary and permanent market restrictions, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council(13).

(32)  The Commission should adopt immediately applicable implementing acts where, in duly justified cases relating to a rapid increase in the number of reported fatalities and severe health consequences or incidents posing a grave threat to health in several Member States associated with the consumption of the new psychoactive substance concerned, imperative grounds of urgency so require. [Am. 30]

(33)  In the application of this Regulation, the Commission should consult Member States' experts, relevant Union agencies, in particular the EMCDDA, civil society and, economic operators and any other relevant stakeholder. [Am. 31]

(34)  Since the objectives of the proposed action cannot be sufficiently achieved by the Member States, but can rather, by reason of the effects of the envisaged action, be better achieved at the Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

(35)  In order to establish uniform rules and ensure clarity of concepts and procedures, as well as to provide legal certainty for economic operators, it is appropriate to adopt this act in the form of a Regulation.

(36)  This Regulation respects fundamental rights and observes the principles recognised by the Charter of Fundamental Rights of the European Union and of the European Convention for the Protection of Human Rights and Fundamental Freedoms, including the freedom to conduct a business, the right to property, the right of access to preventive healthcare and the right to an effective remedy benefit from medical treatment, [Am. 32]

HAVE ADOPTED THIS REGULATION:

CHAPTER I

Subject matter, scope, definitions

Article 1

Subject matter and scope

1.  This Regulation establishes rules for restrictions to the free movement of new psychoactive substances in the internal market. For that purpose it sets up a mechanism for information exchange on, risk assessment and submission to market restriction measures of new psychoactive substances at Union level.

2.  This Regulation shall not apply to scheduled substances as defined in Regulation (EC) No 273/2004 and Regulation (EC) No 111/2005.

Article 2

Definitions

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

(a)  ‘new psychoactive substance’ means a natural or synthetic substance that, when consumed by a human, has the capacity to produce central nervous system stimulation or depression, resulting in hallucinations, alterations in motor function, thinking, behaviour, perception, awareness or mood, which whether or not it is intended for human consumption or is likely to be consumed by humans even if not intended for them with the purpose of inducing one or more of the effects mentioned above, which is neither controlled under the 1961 United Nations Single Convention on Narcotic Drugs, as amended by the 1972 Protocol, nor the 1971 United Nations Convention on Psychotropic Substances; it excludes alcohol, caffeine and tobacco, as well as tobacco products within the meaning of Directive 2001/37/EC of the European Parliament and of the Councilof 5 June 2001 on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture, presentation and sale of tobacco products (14); [Am. 33]

(b)  ‘mixture’ means a mixture or solution containing one or more new psychoactive substances;

(c)  ‘medicinal product’ means a product as defined in point 2 of Article 1 of Directive 2001/83/EC;

(d)  ‘veterinary medicinal product’ means a product as defined in point 2 of Article 1 of Directive 2001/82/EC;

(e)  ‘marketing authorisation’ means an authorisation to place a medicinal product or a veterinary medicinal product on the market, in accordance with Directive 2001/83/EC, Directive 2001/82/EC or Regulation (EC) No 726/2004;

(f)  ‘making available on the market’ means any supply of a new psychoactive substance for distribution, consumption or use on the Union market in the course of a commercial activity, whether in return for payment or free of charge;

(g)  ‘consumer’ means any natural person who is acting for purposes which are outside his/her trade, business or profession;

(h)  ‘commercial and industrial use’ means any manufacture, processing, formulation, storage, mixing, production and sale to natural and legal persons other than consumers;

(i)  ‘scientific research and development’ means any scientific experimentation, analysis or research carried out under strictly controlled conditions, in accordance with Regulation (EC) No 1907/2006 of the European Parliament and of the Council(15);

(j)  ‘United Nations system’ means the World Health Organisation, the Commission on Narcotic Drugs and the Economic and Social Committee acting in accordance with their respective responsibilities as described in Article 3 of the 1961 United Nations Single Convention on Narcotic Drugs, as amended by the 1972 Protocol, or in Article 2 of the 1971 United Nations Convention on Psychotropic Substances.

CHAPTER II

Free movement

Article 3

Free movement

New psychoactive substances and mixtures shall move freely in the Union for commercial and industrial use, as well as for scientific research and development purposes.

Article 4

Prevention of barriers to free movement

Insofar as the Union has not adopted measures to subject a new psychoactive substance to market restriction under this Regulation, or when the Commission pursuant to Article 11 has not adopted a restriction measure, Member States may adopt technical regulations on such new psychoactive substance in accordance with Directive 98/34/EC.

Member States shall immediately communicate to the Commission any such draft technical regulation on new psychoactive substances, in accordance with Directive 98/34/EC. [Am. 34]

CHAPTER III

Exchange and collection of information

Article 5

Information exchange

If a Member State has information relating to what appears to be a new psychoactive substance or mixture, its National Focal Points within the European Information Network on Drugs and Drug Addiction ("Reitox") and Europol National Units shall collect and provide in a timely manner to the EMCDDA and Europol the available information on the detection and identification, consumption and its patterns, serious intoxication or deaths, possible risks as well as the toxicity level, data concerning manufacture, extraction, importation, trade, distribution and its channels, trafficking, commercial and scientific use of substances that appear to be new psychoactive substances or mixtures.

The EMCDDA and Europol shall communicate that information immediately to Reitox and the Europol National Units and the European Medicines Agency.

To enable a more effective response to the rapid emergence and spread of new psychoactive substances across the Union, the information exchange mechanism ('EWS') shall be maintained and further developed, in particular as regards to the collection and management of data on the detection and identification of new psychoactive substances. [Am. 35]

Article 6

Joint report

1.  Where the EMCDDA and Europol, or the Commission, consider that the information shared on a new psychoactive substance notified by several Member States gives rise to concerns across the Union because of the health, social and safety risks that the new psychoactive substance may pose, or in response to a reasoned request from more than one Member State, the EMCDDA and Europol shall draw up a joint report on the new psychoactive substance.

2.  The joint report shall contain the following information:

(a)  the nature of the risks that the new psychoactive substance poses when consumed by humans, including contraindications with other substances when available, and the scale of the risk to public health, as referred to in Article 9(1);

(b)  the chemical and physical identity of the new psychoactive substance, the methods and, if known, the chemical precursors used for its manufacture or extraction, and other new psychoactive substances with a similar chemical structure that have emerged or which may reasonably be expected to emerge, on the basis of scientific assessment;

(c)  the commercial and industrial use of the new psychoactive substance, as well as its use for scientific research and development purposes;

(d)  the human and veterinary medical use of the new psychoactive substance, including as an active substance in a medicinal product or veterinary medicinal product;

(e)  the involvement of criminal groups in the manufacture, distribution or trade in the new psychoactive substance, and any use of the new psychoactive substance in the manufacture of narcotic drugs or psychotropic substances;

(f)  whether the new psychoactive substance is currently under assessment, or has been under assessment, by the United Nations system;

(g)  whether the new psychoactive substance is subject to any restriction measures in the Member States;

(h)  any existing prevention and treatment measure in place to address the consequences of the use of the new psychoactive substance.

3.  The EMCDDA and Europol shall request the National Focal Points and the Europol National Units to provide additional information on the new psychoactive substance. They shall provide that information within four weeks from receipt of the request.

4.  The EMCDDA and Europol shall request the European Medicines Agency which should consult the competent authorities for medicines of Member States, to provide information on whether, in the Union or in any Member State, the new psychoactive substance is:

(a)  an active substance in a medicinal product or a veterinary medicinal product that has obtained a marketing authorisation;

(b)  an active substance in a medicinal product or a veterinary medicinal product that is the subject of an application for a marketing authorisation;

(c)  an active substance in a medicinal product or a veterinary medicinal product that has obtained a marketing authorisation, but the marketing authorisation has been suspended by the competent authority;

(d)  an active substance in an unauthorised medicinal product in accordance with Article 5 of Directive 2001/83/EC or in a veterinary medicinal product prepared extemporaneously by a person authorised to do so under national legislation in accordance with point (c) of Article 10 of Directive 2001/82/EC.

Member States shall provide the European Medicines Agency with the above information without undue delay, if so requested by it.

The European Medicines Agency shall provide the information at its disposal within four weeks from receipt of the request from the EMCDDA.

5.  The EMCDDA shall request the European Chemicals Agency, the European Centre for Disease Prevention and Control (ECDC) and the European Food Safety Authority to provide the information and data at their disposal on the new psychoactive substance. The EMCDDA shall respect the conditions on use of the information, which are communicated to the EMCDDA by the European Chemicals Agency, the ECDC and the European Food Safety Authority, including conditions on information and data security and protection of confidential data, including sensitive data or business information.

The European Chemicals Agency, the ECDC and the European Food Safety Authority shall provide the information and data at their disposal within four weeks from receipt of the request.

6.  The EMCDDA and Europol shall submit the joint report to the Commission within eight weeks from the request for additional information referred to in paragraph 3.

When the EMCDDA and Europol collect information on mixtures or on several new psychoactive substances with similar chemical structure, they shall submit individual joint reports to the Commission within ten weeks from the request for additional information referred to in paragraph 3. [Am. 36]

CHAPTER IV

Risk assessment

Article 7

Risk assessment procedure and report

1.  Within four weeks from the receipt of the joint report referred to in Article 6, the Commission may request the EMCDDA to assess the potential risks posed by the new psychoactive substance and to draw up a risk assessment report. The risk assessment shall be conducted by the Scientific Committee of the EMCDDA.

2.  The risk assessment report shall include an analysis of the criteria and of the information referred to in Article 10(2) to enable the Commission to determine the level of health, social and safety risks that the new psychoactive substance poses.

3.  The Scientific Committee of the EMCDDA shall assess the risks during a special meeting. The Committee may be extended by not more than five experts, including a psychologist specialising in addiction, representing the scientific fields relevant for ensuring a balanced assessment of the risks of the new psychoactive substance. The Director of the EMCDDA shall designate them from a list of experts. The Management Board of the EMCDDA shall approve the list of experts every three years. The European Parliament, the Council, the Commission, the EMCDDA, Europol and the European Medicines Agency shall each have the right to nominate two observers.

4.  The Scientific Committee of the EMCDDA shall carry out the risk assessment on the basis of information on the risks of the substance and on its uses, such as its patterns and dosage, including commercial and industrial uses, provided by the Member States, the Commission, the EMCDDA, Europol, the European Medicines Agency, the European Chemicals Agency, the ECDC, the European Food Safety Authority and on the basis of any other relevant scientific evidence. It shall take into consideration all opinions held by its members. The EMCDDA shall support the risk assessment and shall identify information needs, including targeted studies or tests.

5.  The EMCDDA shall submit the risk assessment report to the Commission within twelve weeks from the date when it received the request from the Commission.

6.  Upon request of the EMCDDA, the Commission may extend the period to complete the risk assessment by no more than twelve weeks to allow for additional research and data collection to take place. The EMCDDA shall submit such a request to the Commission within six weeks from the launch of the risk assessment. If within two weeks of such request being made the Commission has not objected to such request, the risk assessment shall be so extended. [Am. 37]

Article 8

Exclusion from risk assessment

1.  No risk assessment shall be carried out where the new psychoactive substance is at an advanced stage of assessment within the United Nations system, namely once the World Health Organisation expert committee on drug dependence has published its critical review together with a written recommendation, except where there is significant and concrete information that is new or of particular relevance for the Union and that has not been taken into account by the United Nations system, which is to be mentioned in the assessment report. [Am. 38]

2.  No risk assessment shall be carried out where the new psychoactive substance has been assessed within the United Nations system, but it has been decided not to schedule it under the 1961 Single Convention on Narcotic Drugs, as amended by the 1972 Protocol, or the 1971 Convention on Psychotropic Substances, except where there is significant and concrete information that is new or of particular relevance for the Union, the reasons for which shall be indicated in the assessment report. [Am. 39]

3.  No risk assessment shall be carried out where the new psychoactive substance is:

(a)  an active substance in a medicinal product or a veterinary medicinal product that has obtained a marketing authorisation;

(b)  an active substance in a medicinal product or a veterinary medicinal product that is the subject of an application for a marketing authorisation;

(c)  an active substance in a medicinal product or a veterinary medicinal product that has obtained a marketing authorisation, but the marketing authorisation has been suspended by the competent authority.

4.  However, the risk assessment shall be carried out if at Union level there are sufficient data available to suggest the need for a joint report of the EMCDDA and Europol. [Am. 40]

CHAPTER V

Market restrictions

Article 9

Immediate risks to public health and temporary consumer market restriction

1.  Where it requests a risk assessment of a new psychoactive substance pursuant to Article 7(1), the Commission shall, by means of a Decision, prohibit the making available on the market to consumers of the new psychoactive substance if, based on existing information, it poses immediate risks to public health, evidenced by:

(a)  reported fatalities and severe health consequences associated with the consumption of the new psychoactive substance, including contraindications with other substances when available, in several Member States, related to the serious acute toxicity of the new psychoactive substance;

(b)  the prevalence and patterns of use of the new psychoactive substance in the general population and in specific groups, in particular frequency, quantities and modality of use, its availability to consumers and the potential for diffusion, which indicate that the scale of the risk is considerable.

2.  The Commission shall adopt the Decision referred to in paragraph 1 by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 19(2).

On duly justified imperative grounds of urgency relating to a rapid increase in the number of reported fatalities in several Member States associated with the consumption of the new psychoactive substance concerned, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure laid down in Article 19(3).

3.  The market restriction contained in the Decision referred to in paragraph 1 shall not exceed a period of twelve months. If the level of health, social and safety risks posed by the new psychoactive substance justifies the introduction of permanent restriction measures, the duration of the temporary market restriction may be extended by a further 12 months, in the absence of permanent market restriction. [Am. 41]

Article 10

Determination of the level of health, social and safety risks following the risk assessment

1.  The Commission shall, without undue delay, determine the level of the health, social and safety risks posed by the new psychoactive substance on which a risk assessment report was drafted. It shall do so on the basis of all available evidence, in particular the risk assessment report.

2.  The Commission shall take the following criteria into account when determining the level of risk of a new psychoactive substance:

(a)  the harm to health caused by the consumption of the new psychoactive substance associated with its acute and chronic toxicity, contraindications with other substances when available, abuse liability and dependence-producing potential, in particular injury, disease, and aggression, as well as physical and mental impairment;

(b)  the social harm caused to individuals and to society, in particular based on its impact on social functioning, public order and criminal activities, organised crime activity associated with the new psychoactive substance, illicit profits generated by the production, trade and distribution of the new psychoactive substance, and associated economic costs of the social harm;

(c)  the risks to public safety, in particular based on the spread of diseases, including transmission of blood borne viruses, the consequences of physical and mental impairment on the ability to drive, the impact of the manufacture, transport and disposal of the new psychoactive substance and associated waste materials on the environment.

The Commission shall also take into account the prevalence and patterns of use of the new psychoactive substance in the general population and in specific groups, its availability to consumers, its potential for diffusion, the number of Member States where it poses health, social and safety risks, the extent of its commercial and industrial use, and its use for scientific research and development purposes. [Am. 42]

Article 11

Low risks at Union level

The Commission shall not adopt restriction measures on a new psychoactive substance if, on the basis of the existing evidence and of the following criteria, it poses, overall, low health, social and safety risks, in particular at Union level:

(a)  the harm to health caused by the consumption of the new psychoactive substance associated with its acute and chronic toxicity, abuse liability and dependence-producing potential, is limited, as it provokes minor injury and disease, and minor physical or mental impairment insignificant;

(b)  the social harm caused to individuals and to society is limited, in particular regarding on the basis of its impact on social functioning and public order, criminal activities associated with the new psychoactive substance are low, illicit profits generated by the production, trade and distribution of the new psychoactive substance and associated economic costs are non-existent or negligible;

(c)  the risks to public safety are limited, in particular on the basis of a low risk of spread of diseases, including transmission of blood borne viruses, non-existent or low consequences of physical and mental impairment on the ability to drive, and the impact of the manufacture, transport and disposal of the new psychoactive substance and associated waste materials on the environment is low.

Where the decision to not adopt restriction measures in relation to a new psychoactive substance that is considered to pose overall low health, social and safety risk at Union level was based on a partial or total lack of evidence, it shall include an appropriate reference in the justification. [Am. 43]

Article 12

Moderate risks and permanent consumer market restriction at Union level

1.  The Commission shall, by means of a decision, without undue delay, prohibit the making available on the market to consumers of the new psychoactive substance if, on the basis of existing evidence and of the following criteria, it poses, overall, moderate health, social and safety risks, in particular:

(a)  the harm to health caused by the consumption of the new psychoactive substance associated with its acute and chronic toxicity, abuse liability and dependence-producing potential, is moderate, as it generally provokes non-lethal injury and disease, and moderate physical or mental impairment;

(b)  the social harm caused to individuals and to society is moderate, in particular regarding on the basis of its impact on social functioning and public order, producing public nuisance; criminal activities and organised crime activity associated with the substance are sporadic, illicit profits and economic costs are moderate;

(c)  the risks to public safety are moderate, in particular on the basis of a sporadic spread of diseases, including transmission of blood borne viruses, moderate consequences of physical and mental impairment on the ability to drive, and the manufacture, transport and disposal of the new psychoactive substance and associated waste materials results in environmental nuisance.

2.  The Commission shall adopt the decision referred to in paragraph 1 by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 19(2).

3.   Where the information or evidence available shows that the new psychoactive substance subject to the decision referred to in paragraph 1 poses a higher level of health, social and safety risks in a given Member State, in particular because of the modalities or scale of consumption of that substance or given the specific risks that the substance poses in its territory taking into account national circumstances and any social, economic, legal, administrative or other factor, Member States may maintain or introduce more stringent measures to ensure a high level of protection of public health.

4.  A Member State intending to maintain a more stringent measure concerning the new psychoactive substance in accordance with paragraph 3 shall immediately communicate the relevant laws, regulations or administrative provisions to the Commission and shall inform the other Member States thereof.

5.  A Member State willing to introduce a more stringent measure concerning the new psychoactive substance in accordance with paragraph 3 shall immediately communicate the relevant draft laws, regulations or administrative provisions to the Commission and shall inform the other Member States thereof. [Am. 44]

Article 13

Severe risks and permanent market restriction at Union level

1.  The Commission shall, by means of a decision, without undue delay, prohibit the production, manufacture, making available on the market including importation to the Union, transport, and exportation from the Union of the new psychoactive substance if, based on existing evidence, it poses, overall, severe health, social and safety risks, in particular it poses severe health, social and safety risks, based on the existing evidence and on the following criteria:

(a)  the harm to health caused by the consumption of the new psychoactive substance associated with its acute and chronic toxicity, abuse liability and dependence-producing potential, is life threatening severe, as it generally provokes death or lethal injury, severe disease, and severe physical or mental impairment;

(b)  the social harm caused to individuals and to society is severe, in particular regarding on the basis of its impact on social functioning and public order, resulting in public order disruption, violent and anti-social behaviour causing damage to the user, to others and to property; criminal activities and organised crime activity associated with the new psychoactive substance are systematic illicit profits, and economic costs are high;

(c)  the risks to public safety are severe, in particular on the basis of a significant spread of diseases, including transmission of blood borne viruses, severe consequences of physical and mental impairment on the ability to drive, and the manufacture, transport and disposal of the new psychoactive substance and associated waste materials result in environmental harm.

2.  The Commission shall adopt the decision referred to in paragraph 1 by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 19(2). [Am. 45]

Article 13a

Delegation of power

The Commission shall be empowered to adopt delegated acts in accordance with Article 20a to amend the criteria listed in Articles 11, 12 and 13. [Am. 46]

Article 14

Authorised uses

1.  The Decisions referred to in Article 9(1) and Article 12(1) shall not impede the free movement in the Union and the making available on the market to consumers of new psychoactive substances that are active substances in medicinal products or veterinary medicinal products that have obtained a marketing authorisation.

2.  The Decisions referred to in Article 13(1) shall not impede the free movement in the Union and the production, manufacture, making available on the market including importation to the Union, transport, and exportation from the Union of new psychoactive substances:

(a)  for scientific research and development purposes, by duly authorised persons in establishments which are directly under the control of Member States' authorities or specifically approved by them;

(b)  for uses authorised under Union legislation;

(c)  that are active substances in medicinal products or veterinary medicinal products that have obtained a marketing authorisation;

(d)  for use in the manufacture of substances and products provided that the new psychoactive substances are transformed in such a condition that they cannot be abused or recovered, that the amount of each substance used is included in the information about the substance or the product.

2a.  For all authorised uses, new psychoactive substances and products containing new psychoactive substances shall include directions for use, including cautions, warnings and contraindications with other substances, to be either indicated on the label or included in the accompanying leaflet for the safety of the user.

3.  The Decisions referred to in Article 13(1) may set requirements and conditions for the production, manufacture, making available on the market including importation to the Union, transport, and exportation from the Union of new psychoactive substances posing severe health, social and safety risks for the uses listed in paragraph 2.

4.  Member States shall take any appropriate measures to prevent the diversion to the illicit market of new psychoactive substances used for research and development purposes or for any other authorised uses. [Am. 47]

CHAPTER VI

Monitoring and re-examination

Article 15

Monitoring

The EMCDDA and Europol, with the support of Reitox, shall monitor all new psychoactive substances on which a joint report has been drawn up.

Article 16

Re-examination of level of risks

Where new information and evidence is available on the risks posed by a new psychoactive substance the health, social and safety risks of which have already been determined in accordance with Article 10, the Commission shall request the EMCDDA to update the risk assessment report drafted on the new psychoactive substance and shall re-examine the level of risks that the new psychoactive substance poses.

CHAPTER VII

Sanctions and remedy

Article 17

Sanctions

Member States shall lay down the rules on sanctions applicable to infringements of the Decisions referred to in Article 9(1), Article 12(1) and Article 13(1) and shall take all necessary measures to ensure that they are implemented. The sanctions provided for shall be effective, proportionate and dissuasive. Member States shall notify those rules on sanctions and any subsequent amendment affecting those provisions to the Commission without delay.

Article 18

Remedy

Any person whose rights are affected by the implementation of a sanction taken by a Member State in accordance with Article 17 shall have the right to an effective remedy before a tribunal in that Member State.

CHAPTER VIII

PROCEDURES

Article 19

Committee

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.

3.  Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 5 thereof, shall apply.

CHAPTER IX

Final Provisions

Article 20

Research and, analysis, prevention and funding

1.   The Commission and the Member States shall supportFinancial support and the necessary resources shall be provided at Union and national level for the development, sharing and dissemination of information and knowledge on new psychoactive substances. They The Commission and the Member States shall do so by facilitating cooperation between the EMCDDA, other Union agencies, and scientific and research centres and other bodies with relevant expertise, and by regularly providing those bodies with up-to-date information on such substances.

2.  The Commission and the Member States shall also promote and support the research, including applied research into new psychoactive substances and ensure cooperation and coordination between networks at Union and national level in order to strengthen understanding of the phenomenon. They shall do so by facilitating cooperation between the EMCDDA, other Union agencies (in particular European Medicines Agency and European Chemicals Agency) and scientific and research centres. Emphasis shall be placed on developing forensic and toxicological capacity as well as on improving the availability of epidemiological information.

3.  The Member States shall promote prevention schemes as well as, together with the Commission, measures to raise awareness of the risks posed by psychoactive substances, such as educational information campaigns. [Am. 48]

Article 20a

Exercise of the delegation

1.  The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.  The power to adopt delegated acts referred to in Article 13a shall be conferred on the Commission for a period of ten years from ...(16). The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the ten-year period. The delegation of powers shall be tacitly extended for a further period of ten years, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3.  The delegation of powers referred to in Article 13a may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.  As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

5.  A delegated act adopted pursuant to Article 13a shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. [Am. 49]

Article 21

Reporting

1.  The EMCDDA and Europol shall report annually to the European Parliament, the Commission and Member States on the implementation of this Regulation. The implementation reports shall be published on a website and made publicly available.

2.  The Commission shall by ...(17) present to the European Parliament and Member States a report and, if justified, followed by a proposal for closing any identified loop-holes between Regulation (EC) No 1907/2006, Directive 2001/83/EC, Regulation (EC) No 726/2004 and this Regulation in order to make sure that psychotropic substances are properly regulated. [Am. 50]

Article 22

Evaluation

By ...(18) at the latest and every five years thereafter, the Commission shall assess the implementation, application and effectiveness of this Regulation and shall publish a report. In this respect, the Commission, the EMCDDA and Europol shall conduct post-risk assessments of new psychoactive substances.

By ...* the Commission shall evaluate and, if appropriate, present a proposal for a possible classification of groups of new psychoactive substances in order to counteract the practice of bypassing the legislation in force by slight modifications of the chemical structure of the psychoactive substances. [Am. 51]

Article 23

Replacement of Decision 2005/387/JHA

Decision 2005/387/JHA is hereby repealed and replaced, without prejudice to the obligations of the Member States relating to the time limit for transposition of that Decision into national law. References to Decision 2005/387/JHA shall be construed as reference to this Regulation.

Article 24

Entry into force

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

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

Done at …,

For the European Parliament For the Council

The President The President

(1) OJ C 177, 11.6.2014, p. 52. (2) OJ C 177, 11.6.2014, p. 52. (3) Position of the European Parliament of 17 April 2014. (4) Joint Action 97/396/JHA of 16 June 1997 adopted by the Council on the basis of Article K.3 of the Treaty on European Union, concerning the information exchange, risk assessment and the control of new synthetic drugs (OJ L 167, 25.6.1997, p. 1). (5) Council Decision 2005/387/JHA of 10 May 2005 on the information exchange, risk-assessment and control of new psychoactive substances (OJ L 127, 20.5.2005, p. 32). (6) Regulation (EC) No 273/2004 of the European Parliament and of the Council of 11 February 2004 on drug precursors (OJ L 47, 18.2.2004, p. 1). (7) Council Regulation (EC) No 111/2005 of 22 December 2004 laying down rules for the monitoring of trade between the Union and third countries in drug precursors (OJ L 22, 26.1.2005, p. 1). (8) Regulation (EC) No 1920/2006 of the European Parliament and of the Council of 12 December 2006 on the European Monitoring Centre for Drugs and Drug Addiction (OJ L 376, 27.12.2006, p. 1). (9) Directive 98/34/EC of the European Parliament and of the Council of 22 June 1998 laying down a procedure for the provision of information in the field of technical standards and regulations and of rules on Information Society Services (OJ L 204, 21.7.1998. p. 37). (10) Directive 2001/82/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to veterinary medicinal products (OJ L 311, 28.11.2001, p. 67). (11) 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. 1). (12) Regulation (EC) No 726/2004 of the European Parliament and of the Council of 31 March 2004 laying down Community procedures for the authorisation and supervision of medicinal products for human and veterinary use and establishing a European Medicines Agency (OJ L 136, 30.4.2004, p. 1). (13) 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). (14) Directive 2001/37/EC of the European Parliament and of the Council of 5 June 2001 on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture, presentation and sale of tobacco products (OJ L 194, 18.7.2001, p. 26). (15) 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.) (16) Date of the entry into force of this Regulation. (17) Five years after entry into force of this Regulation. (18) Five years after entry into force of this Regulation.

European Parliament legislative resolution of 17 April 2014 on the proposal for a directive of the European Parliament and of the Council amending Council Framework Decision 2004/757/JHA of 25 October 2004 laying down minimum provisions on the constituent elements of criminal acts and penalties in the field of illicit drug trafficking, as regards the definition of drug (COM(2013)0618 – C7-0271/2013 – 2013/0304(COD))

P7_TA(2014)0454 A7-0173/2014

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2013)0618),

–  having regard to Article 294(2) and Article 83(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7‑0271/2013),

–  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 United Kingdom House of Commons and the United Kingdom House of Lords, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to Rule 55 of its Rules of Procedure,

–  having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs and the opinion of the Committee on the Environment, Public Health and Food Safety (A7-0173/2014),

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

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

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 17 April 2014 with a view to the adoption of Directive 2014/…/EU of the European Parliament and of the Council amending Council Framework Decision 2004/757/JHA laying down minimum provisions on the constituent elements of criminal acts and penalties in the field of illicit drug trafficking, as regards the definition of drug

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 83(1) thereof,

Having regard to the proposal from the European Commission,

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

Acting in accordance with the ordinary legislative procedure(1),

Whereas:

(1)  Council Framework Decision 2004/757/JHA(2) provides a common approach to the fight against illicit drug trafficking, which poses a threat to the health, safety and quality of life of citizens of the Union, and to the legal economy, stability and security of the Member States. It sets out minimum common rules on the definition of drug trafficking offences and sanctions, to avoid that problems may arise in cooperation between the judicial authorities and law enforcement agencies of Member States, owing to the fact that the offence or offences in question are not punishable under the laws of both the requesting and the requested State.

(1a)  Setting out minimum common rules across the Union on the definition of drug trafficking offences and sanctions should ultimately contribute to the protection of public health and the reduction of harm related to drug trafficking and consumption. [Am. 1]

(2)  Framework Decision 2004/757/JHA applies to the substances covered by the 1961 United Nations Single Convention on Narcotic Drugs, as amended by the 1972 Protocol, and the 1971 United Nations Convention on Psychotropic Substances (‘UN Conventions’), as well as to the synthetic drugs subjected to control across the Union pursuant to Joint Action 97/396/JHA(3), which pose public health risks comparable to those posed by the substances scheduled under the UN Conventions.

(3)  Framework Decision 2004/757/JHA should also apply to the substances subjected to control measures and criminal penalties pursuant to Council Decision 2005/387/JHA(4), which pose public health risks comparable to those posed by the substances scheduled under the UN Conventions.

(4)  New psychoactive substances such as products containing synthetic cannabinoid receptor agonists (CRAs), which imitate the effects of substances scheduled under the UN Conventions, are emerging frequently and are spreading fast in the Union. Certain new psychoactive substances pose severe public health, social and safety risks, as ascertained by Regulation (EU) No …/… of the European Parliament and of the Council(5). Under that Regulation, measures may be taken to prohibit the production, manufacture, making available on the market, including importation to the Union, transport, and exportation from the Union of new psychoactive substances posing severe health, social and safety risks. To effectively reduce the availability of new psychoactive substances that pose severe risks to individuals and society, and to deter trafficking in those substances across the Union, as well as the involvement of criminal organisations, often generating considerable profit from illicit drug trafficking, permanent market restriction measures adopted under that Regulation should be underpinned by proportionate criminal law provisions, aimed solely at producers, suppliers and distributors rather than individual consumers. [Am. 2]

(4a)  To effectively reduce the demand for new psychoactive substances that pose severe health, social and safety risks, dissemination of evidence-based, public health information and early warnings to consumers should be an integral part of an inclusive and participatory strategy to prevent and reduce harm. [Am. 3]

(5)  The New psychoactive substances subjected to permanent market restriction pursuant to Regulation (EU) No …/… should, once they have been added to the Annex to Framework Decision 2004/757/JHA, therefore, be covered by Union criminal law provisions on illicit drug trafficking. This would also help streamline and clarify the Union legal framework, as the same criminal law provisions would apply to substances covered by the UN Conventions and to the most harmful new psychoactive substances. In order to add such substances to the Annex, 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 amending the Annex and thereby the definition of 'drug' in Framework Decision 2004/757/JHA should, therefore, be amended. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council. [Am. 4]

(6)  In order to swiftly address the emergence and spread of harmful new psychoactive substances in the Union, Member States should apply the provisions of Framework Decision 2004/757/JHA to new psychoactive substances posing severe health, social and safety risks within twelve months from their submission which have been subject to permanent market restriction under restrictions on account of the severe health, social and safety risks which they pose, pursuant to Regulation (EU) No …/… within 12 months of those new psychoactive substances being added to the Annex to that Framework Decision. [Am. 5]

(6a)  This Directive, in accordance with the provisions of Framework Decision 2004/757/JHA which it amends, does not make provision for the criminalisation of the possession of new psychoactive substances for personal use, without prejudice to the right of Member States to criminalise the possession of drugs for personal use at national level. [Am. 6]

(6b)  The Commission should assess the impact of Framework Decision 2004/757/JHA on drug supply, including on the basis of information provided by Member States. For that purpose, Member States should provide detailed information on the distribution channels for psychoactive substances in their territory used for the supply of psychoactive substances intended for distribution in other Member States, such as specialised shops and online retailers, as well as on other characteristics of their respective drug markets. The European Monitoring Centre for Drugs and Drug Addiction should support the Member States in collecting and sharing accurate, comparable and reliable information and data on drug supply. [Am. 7]

(6c)  Member States should provide the Commission with data on various indicators of national law enforcement interventions within their territory, including dismantled drug production facilities, drug supply offences, national retail drug prices and forensic analyses of drug seizures. [Am. 8]

(7)  Since the objective of this Directive, namely to extend the application of the Union criminal law provisions that apply to illicit drug trafficking to new psychoactive substances posing severe health, social and safety risks, cannot be sufficiently achieved by the Member States 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 that objective.

(8)  This Directive respects the fundamental rights and observes the principles recognised by the Charter of Fundamental Rights of the European Union, and notably the right to an effective remedy and to a fair trial, the presumption of innocence and the right of defence, the right not to be tried or punished twice in criminal proceedings for the same criminal offence and, the principles of legality and proportionality of criminal offences, the right of access to preventive healthcare and the right to benefit from medical treatment. [Am. 9]

(8a)  The Union and its Member States should further develop the Union approach based on fundamental rights, prevention, medical care and harm reduction, with the aim of helping drug users to overcome their addiction and at reducing the negative social, economic and public health impact of drugs. [Am. 10]

(9)  [In accordance with Article 3 of Protocol No 21 on the position of the United Kingdom and Ireland in respect of the Area of Freedom, Security and Justice, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, the United Kingdom and Ireland have notified their wish to take part in the adoption and application of this Directive.]

AND/OR

(10)  [In accordance with Articles 1 and 2 of Protocol No 21 on the position of the United Kingdom and Ireland in respect of the Area of Freedom, Security and Justice, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, and without prejudice to Article 4 of that Protocol, the United Kingdom and Ireland are not taking part in the adoption of this Directive and are not bound by it or subject to its application.]

(11)  In accordance with Articles 1 and 2 of Protocol No 22 on the position of Denmark annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, Denmark is not taking part in the adoption of this Directive and is not bound by it or subject to its application.

(12)  Framework Decision 2004/757/JHA should therefore be amended accordingly,

HAVE ADOPTED THIS DIRECTIVE:

Article 1

Framework Decision 2004/757/JHA is amended as follows:

(1)  In Article 1, point 1 is replaced by the following:"

(1a)  Article 2 is amended as follows:

(a)  the introductory part of paragraph 1 is replaced by the following:"

"1. Each Member State shall take the necessary measures to ensure that the following intentional conduct when committed without right as defined in national law is punishable:"; [Am. 12]

(b)  paragraph 2 is replaced by the following:"

"2. The conduct described in paragraph 1 shall not be included within the scope of this Framework Decision when committed for personal use as defined by national law.";[Am. 13]

(1b)  The following Articles are inserted:"

"Article 8a

Delegation of power

The Commission shall be empowered to adopt delegated acts to amend the Annex to this Framework Decision, in particular to add to the Annex new psychoactive substances subjected to permanent market restriction on the basis of Article 13(1) of Regulation (EU) No …/… of the European Parliament and of the Council*. [Am. 15]

Article 8b

Exercise of delegation

1.  The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.  The power to adopt delegated acts referred to in Article 8a shall be conferred on the Commission for a period of ten years from …(6). The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the ten year period. The delegation of power shall be tacitly extended for a further period of ten years, unless the European Parliament or the Council opposes such extension not later than three months before the end of that period.

3.  The delegation of powers referred to in Article 8a may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.  As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

5.  A delegated act adopted pursuant to Article 8a shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. [Am. 16]

________________________

* Regulation (EU) No …/… of the European Parliament and of the Council of … [on new psychoactive substances] (OJ L…).";

(2)  In Article 9, the following paragraphs are added:"

"3. In respect of new psychoactive substances subjected to permanent market restriction on the basis of [Article 13(1) of Regulation (EU) No …/… on new psychoactive substances] added to the Annex to this Framework Decision, Member States shall bring into force the laws, regulations and administrative provisions necessary to apply the provisions of this Framework Decision to these new psychoactive substances within twelve months after the entry into force of the permanent market restriction amendment to the Annex. They shall forthwith communicate to the Commission the text of those provisions. [Am. 14]

When Member States adopt those provisions, they shall contain a reference to this Framework Decision or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

4.  By …(7) and every five years thereafter, the Commission shall assess the extent to which the Member States have taken the necessary measures to comply with this Framework Decision and publish a report.";

(3)  An Annex, as set out in the Annex to this Directive, is added.

Article 2

Transposition

Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by …(8) at the latest. They shall forthwith communicate to the Commission the text of those provisions.

When Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

Article 3

Entry into force

This Directive shall enter into force on …(9).

Article 4

Addressees

This Directive is addressed to the Member States in accordance with the Treaties.

Done at …,

For the European Parliament For the Council

The President The President

ANNEX

"ANNEX

List of substances referred to in point (1)(b) of Article 1

(a)  P-Methylthioamphetamine or 4-Methylthioamphetamine, as referred to in Council Decision 1999/615/JHA(10).

(b)  Paramethoxymethylamphetamine or N-methyl-1-(4-methoxyphenyl)-2-aminopropane, as referred to in Council Decision 2002/188/JHA(11).

(c)  2,5-dimethoxy-4-iodophenethylamine, 2,5-dimethoxy-4-ethylthiophenethylamine, 2,5-dimethoxy-4-(n)-propylthiophenethylamine and 2,4,5-trimethoxyamphetamine, as referred to in Council Decision 2003/847/JHA(12).

(d)  1-benzylpiperazine or 1-benzyl-1,4-diazacyclohexane or N-benzylpiperazine or benzylpiperazine as referred to in Council Decision 2008/206/JHA(13).

(e)  4-methylmethcathinone, as referred to in Council Decision 2010/759/EU(14).

(f)  4-methylamphetamine, as referred to in Council Decision 2013/129/EU(15).

(g)  5-(2-aminopropyl)indole, as referred to in Council Implementing Decision 2013/496/EU(16).".

(1) Position of the European Parliament of 17 April 2014. (2) Council Framework Decision 2004/757/JHA of 25 October 2004 laying down minimum provisions on the constituent elements of criminal acts and penalties in the field of illicit drug trafficking (OJ L 335, 11.11.2004, p. 8). (3) Joint Action 97/396/JHA of 16 June 1997 adopted by the Council on the basis of Article K.3 of the Treaty on European Union concerning the information exchange, risk assessment and the control of new synthetic drugs (OJ L 167, 25.6.1997, p. 1). (4) Council Decision 2005/387/JHA of 10 May 2005 on the information exchange, risk-assessment and control of new psychoactive substances (OJ L 127, 20.5.2005, p. 32). (5) Regulation (EU) No …/… of the European Parliament and of the Council of … [on new psychoactive substances] (OJ L…). (6) Date of the entry into force of this Directive. (7) Five years after the entry into force of this Directive. (8) 12 months after the entry into force of this Directive. (9) The day of entry into force of Regulation (EU) No …/… [on new psychoactive substances]. (10) Council Decision 1999/615/JHA of 13 September 1999 defining 4-MTA as a new synthetic drug which is to be made subject to control measures and criminal penalties (OJ L 244, 16.9.1999, p.1). (11) Council Decision 2002/188/JHA of 28 February 2002 concerning control measures and criminal sanctions in respect of the new synthetic drug PMMA (OJ L 63, 6.3.2002, p. 14). (12) Council Decision 2003/847/JHA of 27 November 2003 concerning control measures and criminal sanctions in respect of the new synthetic drugs 2C-I, 2C-T-2, 2C-T-7 and TMA-2 (OJ L 321, 6.12.2003, p. 64). (13) Council Decision 2008/206/JHA of 3 March 2008 on defining 1-benzylpiperazine (BZP) as a new psychoactive substance which is to be made subject to control measures and criminal provisions (OJ L 63, 7.3.2008, p. 45). (14) Council Decision 2010/759/EU of 2 December 2010 on submitting 4-methylmethcathinone (mephedrone) to control measures (OJ L 322, 8.12.2010, p. 44). (15) Council Decision 2013/129/EU of 7 March 2013 on subjecting 4-methylamphetamine to control measures (OJ L 72, 15.3.2013, p. 11). (16) Council Implementing Decision 2013/496/EU of 7 October 2013 on subjecting 5-(2-aminopropyl)indole to control measures (OJ L 272, 12.10.2013, p. 44).

European Parliament resolution of 17 April 2014 containing the European Parliament’s recommendation to the Council, the Commission and the European External Action Service on the negotiations of the EU-Japan Strategic Partnership agreement (2014/2021(INI))

P7_TA(2014)0455 A7-0244/2014

The European Parliament,

–  having regard to the first bilateral summit held in the Hague in 1991 and to the adoption of a joint declaration on EC-Japan relations,

–  having regard to the 10th bilateral summit held in Brussels in 2001 and the adoption of the EU-Japan action plan entitled ‘Shaping our common future’, including the objectives of promoting peace and security, strengthening the economic and trade partnership, coping with global and societal challenges, and bringing together people and cultures,

–  having regard to the negotiations authorised by the Council on 29 November 2012 and opened in Brussels on 25 March 2013 on an EU-Japan strategic partnership agreement,

–  having regard to the negotiations launched on 25 March 2013 on an EU-Japan free trade agreement,

–  having regard to the 21st EU-Japan summit held in Tokyo on 19 November 2013,

–  having regard to the Guidelines on the EU’s Foreign and Security Policy in East Asia, which were approved by the Council on 15 June 2012,

–  having regard to its resolutions of 3 February 2009 on Second Strategic Energy Review(1) and of 24 March 2011 on the situation in Japan, particularly the state of alert at the nuclear power stations(2),

–  having regard to its resolution of 7 October 2010 on the EU strategic objectives for the 10th Meeting of the Conference of the Parties to the Convention on Biological Diversity (CBD), to be held in Nagoya (Japan) from 18 to 29 October 2010(3),

–  having regard to its resolution of 16 February 2012 on the death penalty in Japan(4),

–  having regard to its resolution of 11 May 2011 on EU-Japan trade relations(5),

–  having regard to its resolution of 10 December 2013 containing the European Parliament’s recommendation to the Council, the Commission and the European External Action Service on the negotiations for an EU-Canada Strategic Partnership Agreement(6),

–  having regard to the catastrophic earthquake and subsequent tsunami which devastated significant parts of Japan’s coast on 11 March 2011 and led to the destruction of the Fukushima nuclear power plant,

–  having regard to Rules 90(4) and 48 of its Rules of Procedure,

–  having regard to the report of the Committee on Foreign Affairs (A7-0244/2014),

A.  whereas Japan has been an EU strategic partner since 2003;

B.  whereas the EU and Japan share the special responsibility for fostering peace, stability and prosperity in a rapidly changing world;

C.  whereas the EU and Japan already cooperate in a number of fields such as customs cooperation and legal assistance in criminal matters, science and technology, internet security, academic and research cooperation, the peaceful use of nuclear energy, business community contacts and the promotion of people-to-people links;

D.  whereas the EU and Japan share the values of democracy, the rule of law and the promotion of human rights, all of which should form the core part of any agreement between the two parties, aiming to provide a solid framework for that relationship;

E.  whereas Japan’s contribution to international security and stability has increased, with the country being a Proactive Contributor to Peace, based on the principle of international cooperation;

F.  whereas Japan and the North Atlantic Treaty Organisation (NATO) signed their first joint political declaration in April 2013, and referred to crisis management, disaster relief efforts, peace support operations, cyberdefence and maritime security as possible areas of cooperation;

G.  whereas Japan is also an active member of the Asian Development Bank (ADB), the African Development Bank (AFDB), the Inter-American Development Bank (IADB), the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), and many other specialised UN agencies, as well as the Asia‑Europe Meeting (ASEM) and the Asia Cooperation Dialogue (ACD); whereas Japan is also a member of the World Trade Organisation (WTO) since its establishment in 1995, and is a member of the Organisation for Economic Cooperation and Development (OECD), the European bank for Reconstruction and Development (EBRD), the International bank for Reconstruction and Development (IBRD), the Group of Eight (G8) and the Group of Twenty (G20);

H.  whereas tensions exist between Japan and its neighbours China, Russia and South Korea over islands in East Asia’s maritime areas;

1.  Addresses the following recommendations to the Council, the Commission and the European External Action Service:

2.  Instructs its President to forward this resolution containing the European Parliament’s recommendation to the Council, the Commission, the European External Action Service and the Government and National Diet of Japan.

(1) OJ C 67 E, 18.3.2010, p. 16. (2) OJ C 247 E, 17.8.2012, p. 20. (3) OJ C 371 E, 20.12.2011, p. 14. (4) OJ C 249 E, 30.8.2013, p. 63. (5) OJ C 377 E, 7.12.2012, p. 19. (6) Texts adopted, P7_TA(2013)0532.

European Parliament resolution of 17 April 2014 on EU foreign policy in a world of cultural and religious differences (2014/2690(RSP))

P7_TA(2014)0456 B7-0365/2014

The European Parliament,

–  having regard to Articles 2 and 21 of the Treaty on European Union (TEU) and to the Treaty on the Functioning of the European Union (TFEU),

–  having regard to the Charter of the United Nations,

–  having regard to the European Convention on Human Rights and to the Charter of Fundamental Rights of the European Union, in particular Articles 10 and 22 thereof,

–  having regard to the UN Convention on the Elimination of All Forms of Discrimination against Women,

–  having regard to the International Covenant on Economic, Social and Cultural Rights,

–  having regard to the International Covenant on Civil and Political Rights,

–  having regard to the UNESCO Convention on the Protection and the Promotion of the Diversity of Cultural Expressions,

–  having regard to the UN resolutions on freedom of religion or belief and on the elimination of all forms of intolerance and of discrimination based on religion or belief, in particular General Assembly resolution A/RES/67/179 of 20 December 2012 and Human Rights Council resolution A/HRC/22/20/L.22 of 22 March 2013,

–  having regard to the EU Strategic Framework and Action Plan on Human Rights and Democracy (11855/2012), adopted by the Foreign Affairs Council on 25 June 2012,

–  having regard to the Council conclusions of 20 November 2008 on the promotion of cultural diversity and intercultural dialogue in the external relations of the Union and its Member States,

–  having regard to the European Agenda for Culture (COM(2007)0242), which aims to promote awareness of cultural diversity and EU values, dialogue with civil society and exchanges of good practices,

–  having regard to its recommendation to the Council of 2 February 2012 on a consistent policy towards regimes against which the EU applies restrictive measures(1),

–  having regard to its resolution of 12 May 2011 on the cultural dimensions of the EU’s external actions(2),

–  having regard to its recommendation to the Council of 13 June 2013 on the draft EU Guidelines on the Promotion and Protection of Freedom of Religion or Belief(3) and to the EU Guidelines on the Promotion and Protection of Freedom of Religion or Belief, adopted by the Foreign Affairs Council on 24 June 2013,

–  having regard to its resolution of 11 December 2012 on a Digital Freedom Strategy in EU Foreign Policy(4),

–  having regard to Rule 110(2) of its Rules of Procedure,

A.  whereas the EU is founded on the principles of human rights, the rule of law and democracy enshrined in the Charter of Fundamental Rights of the European Union and has the will and a legal and moral duty to promote and defend these values in its external relations with all other countries;

B.  whereas Article 21 TEU recognises that the Union’s action on the international scene is to be guided by ‘democracy, the rule of law, the universality and indivisibility of human rights and fundamental freedoms, respect for human dignity, the principles of equality and solidarity and respect for the principles of the United Nations Charter and international law’;

C.  whereas the notion of cultural and religious differences has often led to conflict between different groups of people and has been exploited by leaders and regimes to further their own goals, thereby fuelling conflict;

D.  whereas an understanding of religious and cultural diversity which enables inclusion, mutual respect and an understanding of different mentalities is a firm means of fostering tolerance and reconciliation in post-conflict situations and a help in encouraging human rights and democracy;

E.  whereas, in this era of globalisation, nations, states and civilisations are actively interacting with each other, and the rules and norms which guide the functioning of economic and political systems are becoming more closely linked and are facing common challenges such as climate change, terrorism and poverty, while at the same time reflecting national identities and cultural differences, a proper understanding of which is crucial to international dialogue based on tolerance;

F.  whereas in all civilisations the national cultural heritage, which forms the basis of the cultural identity of citizens, is highly valued;

Principles of EU foreign policy

1.  Affirms that respect for cultural diversity and tolerance vis-à-vis different concepts and beliefs, combined with action to combat all forms of extremism and fight inequalities, remains a necessary integral part of the successful construction of a peaceful international order based on universally shared democratic values;

2.  Reiterates its conviction that when defending its own interests in the world the Union must always base its policies on the promotion of the fundamental values on which it is founded (democracy, the rule of law and human rights, social justice and the fight against poverty) and on respect for other countries;

3.  Insists that the protection of persons belonging to vulnerable groups such as ethnic or religious minorities, the promotion of women’s rights and their empowerment, representation and participation in economic, political and social processes, and the fight against all forms of violence and discrimination based on gender or sexual orientation must be among the EU’s goals in foreign relations;

4.  Considers that access to education in all its forms, especially through the memory of past events, history and the promotion of cultural exchange, is indispensable in understanding and respecting religion and the cultural heritage;

5.  Calls for the EU to promote the ratification and implementation of key international human rights treaties, including those on women’s rights and all non-discrimination agreements, core labour rights conventions and regional human rights instruments; expects a swift ratification of the European Convention on Human Rights following the final ruling of the Court of Justice of the European Union;

6.  Calls for the EU to promote the ratification and implementation of the UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expression;

7.  Stresses that the EU, which has achieved concrete results in the past in its fight against the death penalty, should take a more decisive stand, and calls on the institutions and the Member States to maintain and step up their political commitment to this cause with a view to seeing the death penalty abolished worldwide once and for all;

8.  Considers that stable and modern democracies with a functioning rule of law are a tool of peace, international cooperation and willingness to constructively tackle global issues, and that it is in the interest of the EU to actively promote a political culture of freedom, tolerance and openness, the separation of state and religion, and the development of democratic institutions throughout the world;

9.  Notes in particular that the transition towards democracy in numerous states throughout the world in the past two decades, and more recently the events of the uprisings in the Arab world, have shown that the aspirations for democracy, social justice, human dignity and equal participation are a universal driving force within and across diverse cultural and religious backgrounds and should not be viewed solely as a Western concern;

10.  Considers that the notion of cultural and religious differences has repeatedly been instrumentalised to justify blatant violations of human rights by authoritarian regimes and radical non-state actors;

11.  Rejects essentialist visions of cultures as fixed entities; believes that globalisation and the growing interaction between people from different cultural and religious backgrounds can lead to the development and strengthening of a common core of universal values;

12.  Recalls that respecting and defending smaller and minority cultures and promoting their ability to express themselves peacefully in accordance with human rights is a way to avoid a vision of cultural differences as a confrontation between irreconcilable blocks and to promote peace and stability;

13.  Stresses that inclusive education should play a prominent role in development policy, crisis management and post-conflict stabilisation;

14.  Emphasises that respect for religious freedoms is an important external policy principle, contributing to more sustainable international relations and promoting cooperation between nations on a basis of humanity, tolerance and mutual recognition;

15.  Repudiates the advocacy and dissemination of fundamentalist religious tenets aimed at eroding or violating the rights of particular communities;

16.  Expresses its concern at the proliferation of intolerance and strongly deplores acts of violence against religious communities, including Christians, Muslims, Jews and Bahá’ís who are being denied fundamental human rights solely because of their faith in various countries; strongly condemns, in particular, the numerous attempts to close or destroy churches, mosques, synagogues, temples and other places of worship worldwide;

17.  Emphasises the importance of cultural diplomacy, cultural cooperation and educational and cultural exchange in communicating the values that make up European culture and in advancing the interests of the EU and its Member States; stresses the need for the EU to act as a coherent world player with a global perspective and global responsibility;

The EU’s role in the UN system and in multilateral fora

18.  Recognises that the current structure of the UN system, in particular that of the Security Council, should reflect more adequately the diversity of global actors;

19.  Notes, however, that the EU and its Member States have been able to find common ground for dialogue and cooperation towards achieving common solutions with UN member states which go beyond cultural and religious differences; notes also that the tensions and deadlocks that hamper the development of such solutions stem from the opposition of states and parties involved in conflicts to such agreements on strategic grounds rather than on the basis of conflicting moral values;

20.  Highlights the importance of coordinating fora aimed at promoting dialogue and mutual understanding between cultures and religions; is of the opinion, nevertheless, that the effectiveness of these fora should be assessed and that means of leveraging their reach should be considered;

21.  Recognises the value of parliamentary diplomacy and highlights the work of the parliamentary assemblies of international organisations for the promotion of intercultural and interreligious dialogue; welcomes, in this connection, such initiatives as the recommendation of the Parliamentary Assembly of the Union for the Mediterranean (March 2012, Rabat) to draft a ‘Mediterranean Charter of Values’;

Challenges of religious influence in the international political arena

22.  Notes with concern that, besides the threat that terrorist networks represent for the Union and for the rest of the world, extremist religious groups which use violence as a means of promoting hatred and intolerance and influencing societies and legislation with a view to restricting people’s human rights and fundamental freedoms undermine the very principles that the Union promotes in its foreign and development policies and operate with the support, whether open or covert, of certain states;

23.  Considers that the EU should be more assertive in its support for the promotion and protection of human rights and social and political rights by civil society, as well as for more open and inclusive interpretations of religious dogma in countries whose governments promote or condone intolerant views of religion and culture;

24.  Notes that, in many non-European countries, even where diverse religious expressions are tolerated, secularism and atheistic or agnostic views are nevertheless often subject to legal or social discrimination and that atheists are facing threats, pressure and danger and should be afforded the same protection as religious or other minorities by EU programmes and policies; points out that freedom of religion and conscience implies the right to both religious belief and practice and to the absence thereof, the right to choose or promote religious beliefs as an integral part of freedom of expression, and the right to change or abandon one’s belief; expects all of these aspects to be present in the EU’s initiatives for intercultural dialogue;

25.  Proposes that the religious leaders of the three Abrahamic religions (Judaism, Christianity and Islam) engage in interreligious dialogue, in a spirit of unity and tolerance for all their own different organised expressions;

Credibility, coherence and consistency of EU policy

26.  Considers that the effectiveness of EU action rests on its exemplariness and consistency between internal practice and external action;

27.  Calls on all Member States to repeal any existing laws which contradict the fundamental freedom of religion and conscience and freedom of expression;

28.  Stresses the importance of the EU promoting respect for freedom of expression, freedom of religion or belief, freedom of the press and freedom of access to media and new information technologies in its external actions and actively protecting and promoting people’s digital freedoms;

29.  Calls for a coherent EU policy on human rights based on common fundamental standards and a constructive, results-oriented approach; stresses that, when faced with human rights violations, the EU should make use of the full range of instruments at its disposal, including sanctions;

30.  Reaffirms its support for the inclusion in all EU agreements with third countries of reciprocal conditionality and political clauses on human rights and democracy, as a common reaffirmation of the mutual commitment to these values and regardless of the state of protection of human rights in a given country, with appropriate safeguards to ensure that the suspension mechanism cannot be abused by either side;

Recommendations to the European External Action Service and to the Commission

31.  Calls on the EEAS and the EU Delegations worldwide to further engage with third countries and regional organisations in the promotion of intercultural and interreligious dialogue;

32.  Expects that in their political statements EU representatives will make it clear that intolerant interpretations of any religion or faith that allow violence and repression against the followers of other beliefs are incompatible with the EU’s values and universal human rights and must be opposed with the same assertiveness as any repressive political regime;

33.  Calls on the EU to make culture an even stronger part of political dialogue with partner countries and regions around the world, promoting cultural exchanges and systematically integrating culture into development programmes and projects; stresses, in this connection, the need to streamline the Commission’s internal operations within the various DGs which focus on external relations (foreign policy, enlargement, trade and development), education, culture and the digital agenda;

34.  Stresses the importance of providing EU staff with appropriate training to this end and underlines the relevant work of many organisations such as the Anna Lindh Foundation and the KAICIID Dialogue Centre in Vienna;

35.  Recognises that the internet and communication technologies are key enablers in facilitating freedom of expression, pluralism, exchange of information, education, human rights, development, freedom of assembly, democracy and intercultural and interreligious interaction and inclusion, thereby fostering tolerance and understanding; urges the Commission, therefore, to implement the recommendations set out in the Report on a Digital Freedom Strategy in EU Foreign policy;

36.  Highlights the multiple possibilities afforded by new technologies in promoting intercultural and interreligious dialogue and EU principles and values; encourages all Heads of EU Delegations to make full use of digital diplomacy tools through their active and consistent presence in the social media; calls on the EEAS to explore the possibilities of new virtual programmes;

o
o   o

37.  Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, the EU Special Representative for Human Rights and the governments of the Member States.

(1) OJ C 239 E, 20.8.2013, p. 11. (2) OJ C 377 E, 7.12.2012, p. 135. (3) Texts adopted, P7_TA(2013)0279. (4) Texts adopted, P7_TA(2012)0470.

European Parliament resolution of 17 April 2014 on Russian pressure on Eastern Partnership countries and in particular destabilisation of eastern Ukraine (2014/2699(RSP))

P7_TA(2014)0457 RC-B7-0436/2014

The European Parliament,

–  having regard to its previous resolutions on the European Neighbourhood Policy, on the Eastern Partnership (EaP) and on Ukraine, with particular reference to those of 27 February 2014 on the situation in Ukraine(1) and of 13 March 2014 on the invasion of Ukraine by Russia(2),

–  having regard to its position adopted at first reading on 3 April 2014 with a view to the adoption of Regulation (EU) No …/2014 of the European Parliament and of the Council on the reduction or elimination of customs duties on goods originating in Ukraine(3),

–  having regard to the conclusions of the extraordinary meeting of the Foreign Affairs Council on Ukraine of 3 March 2014 and to the conclusions of the Foreign Affairs Council meetings of 17 March and 14 April 2014,

–  having regard to the statement of the Heads of State or Government on Ukraine at the European Council of 6 March 2014,

–  having regard to the European Council’s conclusions on Ukraine of 20 March 2014,

–  having regard to the conclusions of the Vilnius Summit held on 28 and 29 November 2013,

–  having regard to the resolution of the Parliamentary Assembly of the Council of Europe of 9 April 2014 on ‘recent developments in Ukraine: threats to the functioning of democratic institutions’,

–  having regard to the UN General Assembly resolution of 27 March 2014 entitled ‘Territorial integrity of Ukraine’(4),

–  having regard to the joint statement made by the G7 leaders in The Hague on 24 March 2014,

–  having regard to Rule 110(2) and (4) of its Rules of Procedure,

A.  whereas an illegal and illegitimate referendum was organised on 16 March 2014 in the Autonomous Republic of Crimea and the city of Sevastopol and was conducted under the control of Russian troops; whereas, despite the international condemnation of the referendum, the Russian authorities and lawmakers proceeded swiftly with the annexation of the Ukrainian peninsula, against international law;

B.  whereas limited numbers of pro-Russian demonstrations have taken place in eastern and southern Ukraine over the last few days; whereas pro-Russian separatists, led in most cases by Russian special forces, stormed local administration buildings in Kharkiv, Luhansk and Donetsk; whereas these elements, under the leadership of a group called ‘the Russian Sector’, occupied the local government building in Donetsk, proclaimed the creation of a sovereign ‘People’s Republic of Donetsk’ independent from Kyiv, and announced a referendum on the secession of the region, to be held no later than 11 May 2014;

C.  whereas on 12 and 13 April 2014 police stations and government buildings in Slovyansk, Kramatorsk, Krasny Lyman, Mariupol, Yenakiyeve and other towns in the Donetsk region were attacked and seized by well-armed, unidentified masked gunmen, believed to be led by Russian special forces, in a series of coordinated raids; whereas at least one officer died and several were injured during the clashes;

D.  whereas any further escalation of violent destabilisation in eastern and southern Ukraine risks being used by Russia as a false pretext for further aggression by military means, prevention of the presidential elections, and forced federalisation as a precursor to the partition of Ukraine;

E.  whereas Russia is still maintaining large numbers of combat-ready troops along the Ukrainian-Russian border, despite having promised a withdrawal in order to ease the tensions; whereas there is a serious possibility that Russia could try to repeat the ‘Crimea scenario’;

F.  whereas Russia continues to violate its international obligations, such as those stemming from the UN Charter, the Helsinki Final Act, the Statute of the Council of Europe and, in particular, the 1994 Budapest Memorandum on security guarantees for Ukraine;

G.  whereas the EU has adopted an economic package in support of Ukraine that also includes macro-financial aid and autonomous trade measures; whereas Ukraine is about to finalise an agreement with the International Monetary Fund on an aid plan; whereas the conditions attached to this agreement have so far been kept confidential;

H.  whereas the social and economic situation of the country is further deteriorating, owing inter alia to Russian destabilisation and trade restrictions; whereas widespread poverty remains one of the most acute socioeconomic problems in Ukraine; whereas according to a recent UN report the poverty rate in Ukraine is now around 25 %, with 11 million people earning less than local social standards;

I.  whereas on 21 March 2014 the EU and Ukraine signed the political provisions of the Association Agreement (AA), undertaking to sign the remainder of the agreement, which includes the Deep and Comprehensive Free Trade Area (DCFTA), as soon as possible;

J.  whereas strong international diplomatic action at all levels and a negotiated process are needed to de-escalate the situation, ease tensions, prevent the crisis from spiralling out of control and secure a peaceful outcome; whereas the EU must respond effectively so as to allow Ukraine and all other eastern neighbouring countries to fully exercise their sovereignty and territorial integrity free from undue external pressure;

K.  whereas, immediately after Crimea was annexed, the Supreme Soviet of the separatist region of Transnistria in Moldova sent an official request to the Russian Federation to consider annexing Transnistria;

L.  whereas Russia is still occupying the Georgian regions of Abkhazia and Tskhinvali / South Ossetia, in violation of the fundamental norms and principles of international law; whereas ethnic cleansing and forcible demographic changes have taken place in the areas under the effective control of the occupying force, which bears the responsibility for human rights violations in these areas;

M.  whereas Russia increased gas prices for Ukraine from USD 268 to USD 486 per thousand cubic metres from 1 April 2014, unilaterally ending the discount Ukraine received as part of the Kharkiv Accords governing the lease of the Sevastopol naval base, and, in the last few days, has banned Ukrainian dairy products from entering Russian territory; whereas the Russian Federation has also arbitrarily applied unilateral trade restrictions on products from Georgia and Moldova;

N.  whereas Russia’s annexation of the Crimean peninsula represents, beyond any doubt, a grave violation of international law which undermines trust in international instruments, including the agreements on disarmament and on non-proliferation of nuclear weapons; whereas a new arms race could lead to further escalation; whereas it is imperative to prevent such a dangerous situation, which could easily spiral out of control;

1.  Condemns in the strongest possible terms the escalating destabilisation and provocations in eastern and southern Ukraine; rejects any preparation for illegal ‘Crimea-like’ referendums; warns that the increasing destabilisation and sabotage caused by pro-Russian armed, trained and well-coordinated separatists led by Russian special forces could be used as a false pretext for Russia to intervene militarily, prevent the presidential elections and force federalisation as a precursor to the partition of Ukraine;

2.  Expresses its gravest concern over the fast-deteriorating situation and bloodshed in eastern and southern Ukraine; urges Russia to immediately withdraw its presence in support of violent separatists and armed militias who have seized government buildings in Slovyansk, Donetsk and other cities, to cease all provocative actions designed to foment unrest and further destabilise the situation, to remove troops from the eastern border of Ukraine, and to work towards a peaceful resolution of the crisis by political and diplomatic means; expresses its full support for and solidarity with the Government of Ukraine as it seeks to re-establish authority in the occupied cities, welcomes the restrained and measured manner in which the Ukrainian Government has dealt with the current phase of the crisis so far, and recalls that the Ukrainian authorities have the full right to use all necessary measures, including the right to self-defence as defined in Article 51 of the UN Charter; warns Russia against using Ukraine’s legitimate right to defend its territorial integrity as a pretext to launch a full-scale military invasion;

3.  Strongly reiterates its support for the sovereignty, territorial integrity and political independence of Ukraine and of all Eastern Partnership countries; looks upon Russia’s acts of aggression as a grave violation of international law and its own international obligations stemming from the UN Charter, the Helsinki Final Act, the Statute of the Council of Europe and the 1994 Budapest Memorandum on security guarantees, as well as bilateral obligations deriving from the 1997 Bilateral Treaty on Friendship, Cooperation and Partnership;

4.  Stresses that no attacks, intimidation or discrimination whatsoever against Russian or ethnic Russian citizens or other minorities have been reported recently in Ukraine, as confirmed by credible international monitors such as the UN, the Organisation for Security and Cooperation in Europe (OSCE) and the Council of Europe;

5.  Is convinced that Russia’s assertion of the right to use all means to protect Russian minorities in third countries, as proclaimed by President Putin in his speech of 18 March 2014, is not supported by international law and contravenes fundamental principles of international conduct in the 21st century, while also threatening to undermine the post-war European order; calls on the Federation Council to immediately withdraw its mandate to use force on Ukrainian soil;

6.  Reiterates the necessity for the EU and its Member States to speak to Russia with one united voice; considers that the current situation requires the Council to strengthen the second phase of sanctions and be ready for the third phase (economic sanctions), which must be applied immediately; reiterates, furthermore, its call on the Council to swiftly apply an arms and dual-use technology embargo;

7.  Calls for measures against Russian companies and their subsidiaries, particularly in the energy sector, as well as Russian investments and assets in the EU, and for all agreements with Russia to be reviewed with a view to their possible suspension;

8.  Urges the EU to support Ukraine in international bodies, particularly international judicial bodies, should Ukraine decide to bring cases against Russia for violation of its sovereignty and territorial integrity;

9.  Stresses the urgent need for Russia to engage in a constructive dialogue with the current legitimate Government of Ukraine, and supports the active engagement of the EU in diplomatic efforts to de-escalate the crisis; looks forward to the quadripartite meeting between the EU High Representative, the US Secretary of State and the Foreign Ministers of Russia and Ukraine, and hopes that this can contribute to reducing tension and paving the way for a comprehensive and lasting diplomatic solution to the crisis; stresses, however, that Ukraine’s future choices can only be made by the Ukrainian people themselves through a democratic, inclusive and transparent process;

10.  Points out that the suspension of the voting rights of the Russian delegation by the Parliamentary Assembly of the Council of Europe, together with the resolution adopted by the UN General Assembly condemning Russia for the annexation of Crimea, are unequivocal signs of the Russian Federation’s growing isolation at international level that should be given all due consideration by the Russian authorities if Russia wants to remain a credible international player;

11.  Calls for the introduction of economic, trade and financial restrictions in respect of Crimea and its separatist leadership; takes the view that these restrictions should be implemented rapidly on the basis of the Commission’s analysis of the legal consequences of Crimea’s annexation;

12.  Reiterates its concern over the fate of the Tatar community in Crimea and the safety and access to rights of persons belonging to the Ukrainian-speaking community; stresses the responsibility of the Russian Federation, under the Fourth Geneva Convention, to protect all civilians in the occupied territories;

13.  Welcomes the deployment of an OSCE Special Monitoring Mission tasked with gathering information about atypical military activity and provocative actions aimed at destabilising the situation, as well as monitoring human and minority rights in Ukraine, and calls for its expansion; regrets, however, the fact that the mission has not secured access to Crimea, where various human rights violations, including cases of violence against journalists and their families, have taken place; regrets the fact that attacks on journalists are now also being reported in eastern Ukraine;

14.  Calls, furthermore, for an in-depth election observation mission from the OSCE Office for Democratic Institutions and Human Rights (ODHIR), and also from Parliament and the EU, to monitor the elections comprehensively; calls for the presidential elections on 25 May 2014 to be conducted in full compliance with international standards; rejects any external pressure to delay these elections;

15.  Welcomes the Ukrainian Government’s intention to hold early parliamentary elections;

16.  Welcomes, in principle, the idea of holding a nationwide referendum on the future status and territorial set-up of Ukraine, as suggested by acting President Oleksandr Turchynov in his televised address of 14 April 2014;

17.  Welcomes the recent resolution of the Ukrainian parliament calling for the immediate disarmament of all illegal self-defence forces, and looks forward to its implementation;

18.  Welcomes the Council’s readiness to assist Ukraine in the field of civilian security-sector reform and provide support for the police and the rule of law, and to examine all options, including a possible CSDP mission, as well as the possibility of an EU monitoring mission;

19.  Expresses its strong support for Ukraine and its people in these difficult times; welcomes the signing of the political chapters of the Association Agreement and the subsequent adoption of the unilateral trade measures; calls for the signing of the full AA/DCFTA as soon as possible and before the expiry of the unilateral trade measures;

20.  Welcomes the announcement by the Ukrainian Government of an ambitious economic and social reform agenda, and highlights the vital importance of its swift implementation in order to stabilise and overcome the country’s critical financial situation; welcomes the decision of the international financial institutions and the EU to provide Ukraine with substantial short‑ and long-term financial aid; recalls the need to organise and coordinate an international donor conference, which should be convened by the Commission and take place as soon as possible;

21.  Supports the conditionality laid down by the EU regarding much-needed structural reforms that will help create more favourable conditions for sustainable economic growth, improve the management of public finances, develop the social safety net and tackle corruption; calls for transparency in the spending of EU funds and effective monitoring by the Commission;

22.  Draws attention to the serious economic and social situation in the country; calls for measures to accompany the structural reforms with the aim of alleviating the current situation with regard, in particular, to the most vulnerable sections of the population;

23.  Encourages Ukraine to continue to move ahead with its course of political reform, in particular constitutional reform, which should be the subject of a broad, in-depth discussion among all components of Ukrainian society; welcomes the will of the Ukrainian Government to implement its commitments to ensure the representative nature of governmental structures, reflecting regional diversity, to ensure the full protection of the rights of persons belonging to national minorities, to align the country’s anti-discrimination legislation with EU standards, to investigate all human rights violations and acts of violence and to fight extremism;

24.  Welcomes the Commission’s decision to create a Support Group for Ukraine which will work on the implementation of the ‘European Agenda for Reform’;

25.  Supports the efforts of the Ukrainian Government, working in close cooperation with the OSCE and the Council of Europe, to ensure due respect for the legitimate rights of the Russian-speaking population and other cultural, national and linguistic minority groups, in line with the provisions of the European Charter for Regional or Minority Languages and the Framework Convention for the Protection of National Minorities;

26.  Reiterates its call for the setting-up of an independent commission to investigate the Kyiv shootings and the tragic events on Maidan, with the inclusion of a strong international component and under the supervision of the Council of Europe International Advisory Panel; welcomes the appointment of a third party to that panel and the holding of its first meeting on 9 April 2014;

27.  Welcomes the signing of the political provisions of the AA and expects the quick implementation of the autonomous trade preferences adopted by the EU to bridge the gap until the signing of the remainder of the agreement, which includes the DCFTA;

28.  Welcomes the initial measures adopted by the Commission to enable Ukraine to tackle an energy crisis should Russia cut gas supplies to the country, and urges the Council and the Commission to assist and support Kyiv in its efforts to resolve the long-standing gas dispute with Moscow; stresses the urgent need for a strong common energy security policy (an Energy Union), with the aim of reducing the EU’s dependency on Russian oil and gas, including the diversification of energy supply, the full implementation of the Third Energy Package and the possibility of suspending gas imports when necessary; takes the view that the South Stream pipeline should not be built, and that other sources of supply should be made available; is convinced that EU assistance to Ukraine in securing reverse-flow supply through further diversification, enhanced energy efficiency and effective interconnections with the EU will strengthen Ukraine against political and economic pressures; recalls, in this connection, the strategic role of the Energy Community, of which Ukraine holds the presidency in 2014;

29.  Calls on the Council to authorise the Commission immediately to speed up visa liberalisation with Ukraine, so as to advance along the path of introducing a visa-free regime, following the example of Moldova; calls, in the meantime, for the immediate introduction of temporary, very simple, low-cost visa procedures at EU and Member State level;

30.  Stresses that the Russian concerns as regards the EU association process of Ukraine and the other Eastern neighbours must be adequately addressed and explained, so as to ease fears of new geopolitical dividing lines on the European continent; points out that each country has every right to make its own political choices, but that the EU’s engagement with the Eastern partners aims to spread prosperity and increase political stability, from which the Russian Federation will also ultimately gain;

31.  Reiterates that the AAs with Ukraine and the other EaP countries do not constitute the final goal in their relations with the EU; points out in this connection that, pursuant to Article 49 of the TEU, Georgia, Moldova and Ukraine – like any other European state – have a European perspective and may apply to become members of the Union provided that they adhere to the principles of democracy, respect fundamental freedoms and human and minority rights and ensure the rule of law;

32.  Calls on the Council to sign the AAs/DCFTAs between the EU and its Member States and Moldova and Georgia, respectively; expresses its approval of the proposal for a Council decision on the provisional application of the EU–Moldova and EU–Georgia AAs immediately upon signature; urges the General Secretariat of the Council of the European Union to reduce the notification procedures following the signing of the AAs, so that provisional application can take effect as soon as possible after signing; states its intention, in the event of all requirements being met and the AAs subsequently being signed, to proceed with full ratification of the EU–Moldova and EU–Georgia AAs as soon as possible and before the end of the Commission’s current term; calls for the allocation to those countries of the additional financial assistance required; calls, furthermore, for a frank and open dialogue with the Russian Federation in order to make every effort to develop synergies aimed at benefiting EaP countries;

33.  Expresses particular concern over renewed instability in the separatist region of Transnistria in Moldova; believes that the recent request of 16 April 2014, by the self-proclaimed authorities in Tiraspol for Transnistria to be recognised by Russia as an independent state represents a dangerous and irresponsible step; recalls that the so-called referendum in the Autonomous Territorial Unit of Gagauzia was against the constitution of Moldova and therefore illegal; reiterates its full support for Moldova’s territorial integrity and calls on all parties to urgently resume dialogue, under the 5+2 framework, and calls for an enhancement of the EU's status to that of negotiating partner, leading towards a peaceful and sustainable settlement of the issue;

34.  Instructs its President to forward this resolution to the Council, the Commission, the governments of the Member States, the Presidents, Governments and Parliaments of Ukraine, Georgia and Moldova, the Council of Europe, the Organisation for Security and Cooperation in Europe and the President, Government and Parliament of the Russian Federation.

(1) Texts adopted, P7_TA(2014)0170. (2) Texts adopted, P7_TA(2014)0248. (3) Texts adopted, P7_TA(2014)0285. (4) A/RES/68/262.

European Parliament resolution of 17 April 2014 on the state of play of the EU-Vietnam Free Trade Agreement (2013/2989(RSP))

P7_TA(2014)0458 B7-0367/2014

The European Parliament,

–  having regard to the Organisation for Economic Cooperation and Development (OECD) Guidelines on Multinational Enterprises and the International Labour Organisation (ILO) Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy,

–  having regard to the Ministerial Declaration of the Fourth Session of the WTO Ministerial Conference, adopted on 14 November 2001 in Doha, and in particular to paragraph 44 thereof on Special and Differential Treatment (SDT),

–  having regard to the Cooperation Agreement of 1995 between the EC and the Socialist Republic of Vietnam (hereinafter ‘Vietnam’), and the new Partnership and Cooperation Agreement signed on 27 June 2012,

–  having regard to the Commission communication of 4 October 2006 entitled ‘Global Europe: Competing in the World. A contribution to the EU’s Growth and Jobs Strategy’ (COM(2006)0567),

–  having regard to its resolution of 12 July 2007 on the TRIPS Agreement and access to medicines(1),

–  having regard to its resolution of 22 May 2007 on Global Europe – external aspects of competitiveness(2),

–  having regard to the Council’s negotiating directives of 23 April 2007 authorising the Commission to negotiate a free trade agreement with countries of the Association of Southeast Asian Nations (ASEAN),

–  having regard to the Vietnam Country Strategy Paper (2007-2013)(3),

–  having regard to its previous resolutions on Vietnam, in particular that of 1 December 2005 on the human rights situation in Cambodia, Laos and Vietnam(4), and that of 18 April 2013 on Vietnam, in particular freedom of expression(5),

–  having regard to its resolution of 25 November 2010 on human rights and social and environmental standards in international trade agreements(6),

–  having regard to its resolution of 6 April 2011 on the future European international investment policy(7),

–  having regard to the Commission communication of 9 November 2010 entitled ‘Trade, Growth and World Affairs – Trade Policy as a core component of the EU’s 2020 strategy’ (COM(2010)0612),

–  having regard to its resolution of 27 September 2011 on a New Trade Policy for Europe under the Europe 2020 Strategy(8),

–  having regard to its resolution of 13 December 2011 on trade and investment barriers(9),

–  having regard to the Commission communication of 21 February 2012 entitled ‘Trade and Investment Barriers – Report 2012’ (COM(2012)0070),

–  having regard to the Commission’s statement to the April 2014 plenary on the EU-Vietnam FTA,

–  having regard to Rule 110(2) of its Rules of Procedure,

A.  whereas the rule-based multilateral trading system, established through the World Trade Organisation (WTO), is the most suitable framework for regulating and promoting open and fair trade, and whereas multilateral negotiations do not preclude bilateral WTO+ agreements, which can be complementary to them;

B.  whereas the Commission’s negotiating directives for the EU-Vietnam FTA are attached to the Council’s authorisation of 23 April 2007 to enter into negotiations for a Free Trade Agreement with countries of the Association of Southeast Asian Nations (ASEAN) and follow on the endorsement by the Council of the scoping paper which outlines the common objectives of both negotiating parties, namely to intensify existing bilateral trade relations; recalls that the initial objective was to negotiate an FTA with the ASEAN region; supports therefore the possibility of negotiating fully comprehensive agreements with countries of the ASEAN region (as building blocks towards the ultimate objective of negotiating a region-to-region FTA in the future);

C.  whereas the official launch of the EU-Vietnam FTA negotiations took place on 26 June 2012 in Brussels, and whereas on 8 November 2013, after the fifth round of negotiations, the two negotiating parties committed to joint efforts with a view to concluding the negotiations by the end of 2014;

D.  whereas the EU-Vietnam trade relationship is embedded in the framework of the Partnership and Cooperation Agreement signed on 27 June 2012, which ensures an effective framework for bilateral trade and investment relations;

E.  whereas the EU and Vietnam have a well-developed bilateral Human Rights Dialogue; whereas all efforts should be made in that framework to help prevent a deterioration of human rights protection in Vietnam; whereas human rights should be treated as an essential element of EU trade policy; whereas the EU is committed, under its Strategic Framework and Action Plan on Human Rights and Democracy, to include human rights in its impact assessments, as and when they are carried out, including for trade agreements that have significant economic, social and environmental impacts;

F.  whereas Vietnam experienced a prosperous decade with uninterrupted GDP growth of around 8 % per year which culminated with its accession to the WTO on 11 January 2007, and whereas the country has since been adversely affected by the global economic downturn, which has led to a sharp decline in export growth, a drop-off in foreign direct investment (FDI) inflows and a fall in remittances from overseas;

G.  whereas over the past ten years the EU has maintained a negative trade balance with Vietnam, as illustrated again by the figures for the second quarter of 2013, which show total trade to the value of EUR 13,4 billion, with the EU’s imports from Vietnam amounting to EUR 10,5 billion, while EU exports to Vietnam were worth EUR 2,8 billion; whereas this represents a sharp decrease compared to the figures for 2012, for which year total trade amounted to EUR 23,871 billion, made up of EUR 18,520 billion in imports from Vietnam to the EU and EUR 5,351 billion in exports to Vietnam from the EU;

H.  whereas the garment and textile industry not only constitutes Vietnam’s largest single source of formal sector employment, with a direct labour force of more than two million workers, but is also its largest export sector; whereas the electronics assembly sector, another leading export manufacturing sector, employs approximately 120 000 workers;

I.  whereas Vietnam has so far only ratified 5 of the 8 core ILO conventions; whereas it has not ratified ILO Convention No 87 on Freedom of Association and Protection of the Right to Organise, No 98 on the Right to Organise and Collective Bargaining, or No 105 on the Abolition of Forced Labour;

J.  whereas Vietnam, a beneficiary of the EU’s Generalised System of Preferences, ranks as the EU’s 32nd trading partner and its fifth biggest partner within ASEAN, while the EU is Vietnam’s second largest trading partner after China, ahead of the USA, and is also Vietnam’s largest source of FDI, accounting for 6,5 % of total FDI in the country in 2012; whereas, however, the potential of FDI from Vietnam into the EU remains largely untapped;

K.  whereas both negotiating parties expect to secure significant benefits from the elimination of both tariffs and non-tariff barriers to trade (NTBs), and whereas both parties should aim at achieving a good outcome as regards the liberalisation of trade in services and of establishment, as well as developing a system for the appropriate protection, implementation and enforcement of intellectual property rights, including patents and designs, trade or service marks, copyright and similar rights, and geographical indications including marks of origin for agricultural and foodstuff products;

L.  whereas both negotiating parties should join forces to ensure and promote legal trade in medicines (both patented medicines and generics) in compliance with the provisions of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and its flexibilities;

M.  whereas both negotiating parties should continue to use trade defence instruments in full compliance with existing WTO rules in order to avoid recourse to the WTO dispute settlement mechanism, and should agree on an effective bilateral safeguard clause or equivalent mechanism to adequately protect their respective industries against injury or threat of injury as a result of a surge in imports, especially in their respective sensitive sectors, which have been identified by each party’s impact assessment;

1.  Welcomes the ongoing progress in the FTA negotiations, in particular in the chapters on customs and trade facilitation, on technical obstacles to trade and on competition, and the Commission’s regular debriefing with Parliament on their state of play; recalls that Parliament’s consent to the FTA is mandatory(10), and that the Commission and Council should not propose any provisional application of the FTA before the EP has given its consent;

2.  Is of the strong opinion that respect for workers’ and trade union rights must be a key feature in all trade agreements the EU signs with third countries; calls on the Vietnamese Government to live up to all its obligations under the core ILO conventions it has ratified and to ratify and implement the outstanding core conventions without further delay; reiterates that workers’ and trade union rights must be universal and be applied to all workers, including to those working in the Special Economic Zones;

3.  Expects the Council and Commission to fully take into account Parliament’s requests as expressed in this resolution before concluding the FTA, which must be compatible with WTO rules and obligations; considers that a successful FTA would allow both negotiating parties to reap a balanced set of benefits and would contribute to creating and safeguarding jobs on both sides;

4.  Calls on both negotiating parties to fully respect their WTO commitments in the spirit of trade liberalisation; simultaneously underlines their obligation to eliminate WTO-inconsistent measures and practices so as to achieve an ambitious agreement;

5.  Appreciates the positive prospects highlighted in the scoping paper which shows that the FTA would increase overall exports and imports for both the EU and Vietnam and provide opportunities for further FDI flows; calls, therefore, for substantial tariff elimination on the Vietnamese side as regards both the average tariff for non-agricultural market access and the agricultural tariffs;

6.  Stresses, however, that the objective for industrial trade should be reciprocal full duty elimination, while respecting a degree of asymmetry also involving suitable transition periods in implementation, and that any possible exception to this objective should be limited and subject to review; believes that the elimination of duties should include sectors that are of importance to either side;

7.  Urges both negotiating parties to respect each other’s right to regulate, including on the provision of public services, and to ensure that their respective regulations do not hamper bilateral trade with unjustified NTBs; calls, therefore, on both the EU and Vietnam to develop effective mediation disciplines to prevent the emergence of unjustified regulatory obstacles to trade and to tackle existing obstacles by fostering harmonisation or compliance with international standards;

8.  Considers that particular attention should be given by the Commission to ensure that the benefits of the future agreement encompass strong and enforceable verification measures in order to guarantee that the benefits of the agreement will accrue only to EU and Vietnamese producers on a basis of full respect for the preferential rules of origin that would be negotiated; calls also for a simplification of EU rules of origin – without lessening the strictness of the current system – in order to make them easier to apply for economic operators and customs administrations and to allow them to derive the full benefits from tariff elimination;

9.  Recognises that Vietnam has offensive interests in the liberalisation of Mode 4 in the General Agreement on Trade in Services (GATS) and the conclusion of Mutual Recognition Agreements recognising the professional qualifications of nationals of Vietnam and of the EU, and that the EU has offensive interests in the liberalisation of market access and national treatment under Mode 1, 2 and 3 in most services; is of the view that addressing the EU’s offensive interests is an imperative to permit, under Mode 4, temporary stays of necessary skilled professionals, and facilitate distinguishing such stays from national policies on foreign workers in each party’s labour markets;

10.  Calls on the EU and Vietnam to agree in the FTA on a fair and equitable treatment of all investors and services providers in the banking, insurance, legal, accounting, transport, and distribution services, including both retail and wholesale sectors; recalls that as regards financial services, it is also essential to ensure adequate policy space to reduce systemic risk, fight money laundering, and provide the highest possible level of consumer protection, as well as to enforce fair competition rules and practices between domestic and foreign investors and service providers, inter alia by reducing, if not fully eliminating, existing equity caps and abolishing restrictions on establishment and licence acquisition; recommends that the Commission negotiates strong and binding provisions on transparency and fair competition so that a level playing field also applies between private businesses and state-owned enterprises (SOEs);

11.  Strongly encourages Vietnam to develop appropriate data protection legislation in order to achieve the status of a country with an adequate level of protection, yet without creating obstacles to the use of the flexibilities of the TRIPS Agreement, thereby allowing or enabling the transfer of personal data from the EU on the basis of and in compliance with EU legislation and thus boosting bilateral data flows and trade in related services such as e-commerce;

12.  Calls on the Commission and the Vietnamese authorities to negotiate effective and transparent procurement systems so as to ensure fair competition between private and state-owned enterprises in the award of public contracts, and to ensure the broadest possible coverage, to include public-sector undertakings, while duly taking into account mutual sensitivities and needs;

13.  Urges the Commission to ensure the reduction and the regular supervision of the use of subsidies and other preferences, such as beneficial conditions provided to SOEs and domestic companies in Vietnam, which distort competition with European companies, in particular in the sectors that are of importance for the export policy of Vietnam; also urges the Commission to negotiate disciplines aimed at ensuring a level playing field between EU and Vietnamese public and private market participants;

14.  Considers that particular attention should be paid in the FTA to the development of business opportunities for small and medium-sized enterprises (SMEs) and that investment in and by SMEs should be promoted to help finance market-driven local projects and joint ventures in renewable energy and trade in environmental goods and technologies; calls for European investors to be provided with a more transparent and predictable legislative framework in Vietnam, and for fair conditions of competition to be guaranteed between Vietnamese and European undertakings;

15.  Urges both negotiating parties to secure a good outcome in the FTA as regards the liberalisation of trade in manufacturing by ensuring effective implementation and enforcement of intellectual property rights, including patents and designs, trademarks, copyright and similar rights for a range of manufactured goods;

16.  Considers that the FTA should respect sensitivities linked to trade in agricultural and fisheries products, but that this should not prevent the mutual opening of markets in sectors of complementarity, and emphasises that new market access must be subject to the thorough enforcement of intellectual property protection, also covering geographical indications, including marks of origin for agricultural and foodstuff products, as well as sanitary and phytosanitary measures (SPS), in the interests of producers and consumers; insists that nothing in the agreement must hamper access to affordable generic medicines;

17.  Asks for transparent and effective state-to-state dispute settlement arrangements, and, where applicable, provisions on investor-to-state dispute resolution to be included in the FTA, so as to ensure due investment protection and deter investors from filing frivolous claims; takes the view that any mechanism for settling disputes between investors and states should, as far as possible, be based on the rules of the UN Commission on International Trade Law (UNCITR) or of the International Centre for the Settlement of Investment Disputes (ICSID), or else on any bilaterally agreed rules based on international norms and conventions, and should have a suitable legal framework and be subject to strict transparency criteria;

18.  Calls for it to be ensured that an investment agreement does not curtail progress in the ratification and full implementation of international human rights agreements, ILO conventions and multilateral environmental agreements (MEAs) by both parties;

19.  Prefers the inclusion of animal welfare standards in the FTA’s SPS chapter or in a standalone chapter with equivalent enforceable provisions;

20.  Expects the FTA to include a binding and enforceable sustainable development chapter reflecting the EU’s and Vietnam’s common commitment to promote respect for, compliance with, and enforcement of international human rights agreements, the eight core ILO conventions, and key MEAs such as the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), with measures in the event of infringement providing for the involvement of independent civil society organisations representing economic, social, and environmental stakeholders in the monitoring of FTA negotiations and the implementation and monitoring of the sustainable development chapter, as well as encouraging enterprises to take up CSR practices, taking account of internationally agreed principles and instruments such as those of the OECD Guidelines for Multinational Enterprises and the UN guiding principles on business and human rights, as well as the UN Principles for Responsible Investment and Reporting, and also to address outstanding issues such as the welfare of both farm and wild animals;

21.  Asks that such a sustainable development chapter be covered by the institutional and legal link to be established between the FTA and the Partnership and Cooperation Agreement (PCA), to include the possibility of suspension of the FTA in case of severe human rights abuses;

22.  Calls on the Commission to apply an approach based on conditionality, so as to offer the signing of the FTA in exchange for concrete progress on human rights and other fundamental rights;

23.  Commends the socio-economic progress made by Vietnam as part of its Doi Moi reform, and supports the country’s continued efforts for further societal improvements; salutes, therefore, Vietnam’s candidature, as endorsed by ASEAN, for membership of the United Nations Human Rights Council for the term 2014-2016, as well as the decision of the Vietnamese Government of 27 August 2013 to submit an aide-memoire containing voluntary pledges and commitments to contribute to the promotion and protection of human rights, thus fostering sustainable development on its territory and in relation to its partners; urges the Vietnamese Government to consistently follow up on its pledges and commitments to effectively prevent and correct any human rights violations and deteriorations of fundamental freedoms;

24.  Stresses that human rights, democracy and security are essential elements of the overall relationship between the EU and Vietnam; calls, therefore, on both sides to ensure that dialogue on pending issues is actively pursued, with particular reference to the freedom of speech of individual citizens, freedom of the media, and religious freedom;

25.  Urges the Commission to carry out as soon as possible a Human Rights Impact Assessment, as requested by Parliament in its resolution of 25 November 2010 on human rights and social and environmental standards in international trade agreements(11), with a view to ensuring ‘comprehensible trade indicators based on human rights and on environmental and social standards’, and in line with the Report of the UN Special Rapporteur on the right to food;

26.  Instructs its President to forward this resolution to the Council, the Commission, the parliaments of the Member States and the Government and Parliament of Vietnam.

(1) OJ C 175 E, 10.7.2008, p. 591. (2) OJ C 102 E, 24.4.2008, p. 128. (3) http://eeas.europa.eu/sp/index_en.htm#V (4) OJ C 285 E, 22.11.2006, p. 129. (5) Texts adopted, P7_TA(2013)0189. (6) OJ C 99 E, 3.4.2012, p. 31. (7) OJ C 296 E, 2.10.2012, p. 34. (8) OJ C 56 E, 26.2.2013, p. 87. (9) OJ C 168 E, 14.6.2013, p. 1. (10) Article 218(6)(a)(v) TFEU. (11) OJ C 99 E, 3.4.2012, p. 31.

European Parliament resolution of 17 April 2014 on the ‘top ten’ consultation process and lightening the burden of EU regulation on SMEs (2013/2711(RSP))

P7_TA(2014)0459 B7-0415/2014

The European Parliament,

–  having regard to the European Charter for Small Enterprises, adopted by the European Council at its meeting in Feira on 19 and 20 June 2000,

–  having regard to Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises(1),

–  having regard to the Commission report of 23 November 2011 entitled ‘Minimising regulatory burden for SMEs – Adapting EU regulation to the needs of micro‑enterprises’ (COM(2011)0803),

–  having regard to the Commission communication of 23 February 2011 entitled ‘Review of the “Small Business Act” for Europe’ (COM(2011)0078),

–  having regard to the Commission communication of 3 March 2010 entitled ‘Europe 2020 – A strategy for smart, sustainable and inclusive growth’ (COM(2010)2020),

–  having regard to the Commission proposal of 30 November 2011 for a regulation of the European Parliament and of the Council establishing a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (2014-2020) (COM(2011)0834),

–  having regard to the European Council conclusions of 14 and 15 March 2013 and the Competitiveness Council conclusions of 26 and 27 September 2013,

–  having regard to the Commission communication of 18 June 2013 entitled ‘Commission follow-up to the “TOP TEN” Consultation of SMEs on EU Regulation’ (COM(2013)0446),

–  having regard to Commission communication of 7 March 2013 entitled ‘Smart Regulation – Responding to the needs of small and medium-sized enterprises’ (COM(2013)0122) and the accompanying staff working document entitled ‘Monitoring and Consultation on Smart Regulation for SMEs’ (SWD(2013)0060),

–  having regard to the Commission communication of 2 October 2013 entitled ‘Regulatory Fitness and Performance (REFIT): Results and Next Steps’ (COM(2013)0685),

–  having regard to its resolution of 23 October 2012 on ‘Small and Medium Size Enterprises (SMEs): competitiveness and business opportunities’(2),

–  having regard to its resolution of 5 February 2013 on improving access to finance for SMEs(3)

–  having regard to Rules 115(5) and 110(2) of its Rules of Procedure,

A.  whereas enhancing support for the competitiveness, sustainablility and employment potential of small and medium-sized enterprises (SMEs) is a horizontal effort that cuts across different policy areas;

B.  whereas SMEs suffer disproportionately from unnecessary burdens as their capacity is limited, and whereas the EU legislators have therefore committed to the ‘think small first’ principle;

C.  whereas, 20,7 million SMEs employ over 65 % of the existing private-sector workforce and whereas SMEs are among the most innovatory enterprises, with the best performance in terms of job creation and economic growth;

D.  whereas, according to a Eurobarometer survey, 74 % of Europeans believe that the EU generates too much red tape;

E.  whereas almost one third of the administrative burden deriving from EU legislation stems primarily from disproportionate and inefficient national implementation, meaning that up to EUR 40 billion could be saved if the Member States transposed EU legislation more efficiently;

F.  whereas enterprises can generate employment provided that the right conditions are met, including administrative simplification, access to finance, skills, knowledge and qualified manpower and support for their innovative efforts;

G.  whereas SMEs are often at a competitive disadvantage compared with large industrial players in terms of taxation, standardisation, public procurement, intellectual property, research and innovation financing;

H.  whereas the Commission has scrapped 5 590 legal requirements in the past five years, reducing costs for business by more than EUR 27 billion;

I.  whereas the Commission is pursuing regulatory and administrative effectiveness via its REFIT programme, impact assessments, competitiveness proofing, fitness checks, the ‘top ten’ consultation process, the SME scoreboard and the SME test;

J.  whereas, as highlighted by the European Council, regulation at Union level is necessary in order to ensure that EU policy goals, including the proper functioning of the single market, are attained;

K.  whereas Parliament has declared on a number of occasions, for example in its aforementioned resolution of 23 October 2012, that simplification of EU regulations should not interfere with fundamental EU requirements relating to health and safety at work, fundamental EU workers’ rights or fundamental principles of EU environmental legislation;

L.  whereas most of the ‘top ten’ legislative measures identified in the Commission communication on this subject were already under way when the communication was issued; whereas some of the legislative proposals had already been presented at the time of the ‘top ten’ consultation, and whereas some of them are now already closed;

M.  whereas administrative obstacles prevent SMEs from fully exploiting the benefits of the single market;

N.  whereas this resolution will not comment on the individual follow-up actions, as that will be done separately, but instead focus on the working method applied by the Commission;

1.  Welcomes the Commission’s ‘top ten’ initiative as part of the REFIT exercise and takes note of the promise that this is not a one-off effort but should be a regular part of an ongoing screening procedure; stresses, however, that the Commission should accelerate its efforts to address the concerns about regulatory burden raised by SMEs during the consultation process; stresses also that the ‘top ten’ approach must not replace a systematic, horizontal policy approach to minimising the administrative burden stemming from EU regulation, or undermine the objectives and effectiveness of the legislation in question;

2.  Underlines the need, therefore, for the ‘think small first’ principle to better inform Union policies as regards innovation, growth, internationalisation, productivity, bureaucracy reduction, the quality of human resources, and social responsibility;

3.  Welcomes also, in this connection, the commitment by the Commission to adopt ‘smart regulation’ as an integral part of the decision-making cycle and specifically to regard REFIT as a rolling programme that will be updated annually;

4.  Calls on the Commission, as a matter of urgency, to step up its efforts to ensure that SMEs, especially innovative ones, are encouraged to flourish through administrative simplification and the provision of targeted support in all policy areas;

5.  Calls on the Commission to conduct SME tests transparently and properly when developing legislation; believes that exempting micro-enterprises by default is not the right approach, and supports the development of adapted solutions and lighter regimes for SMEs where it can be demonstrated that they do not foster fragmentation or hinder SMEs’ access to the internal market;

6.  Calls on the Commission to simplify excessive administrative formalities, while at the same time retaining necessary provisions that ensure safety, health and protection at work or require companies to provide their staff with a suitable working environment;

7.  Urges the Commission and the Member States to ensure easy access to funding and markets and to reduce the regulatory burden, which constitutes one of the greatest obstacles to the creation and development of small and medium-sized enterprises;

8.  Considers it very important for the Member States to implement Directive 2011/7/EU on combating late payment in commercial transactions, which states that, with regard to commercial transactions between enterprises and public authorities, the contractual payment period must not exceed the limits laid down in Article 4(3) thereof, unless otherwise expressly agreed in the contract and provided that this is objectively justified in the light of the particular nature or features of the contract and in any event does not exceed 60 calendar days;

9.  Welcomes the fact that from now on the Commission will integrate the SME scoreboard into an annual REFIT scoreboard; considers this to be a step in the right direction if it further embeds SME requirements into the wider regulatory simplification exercise, without undermining the effectiveness of legislation or adding additional layers of bureaucracy; asks the Commission to streamline these instruments via a comprehensive impact assessment; stresses, however, that this amalgamation should not in any way dilute the specific attention accorded to SMEs by the Commission in its processes;

10.  Underlines the fact that the planned annual scoreboard should effectively record legislative and implementation-related progress at EU and national level with regard to SMEs; believes that this scoreboard will help SMEs to assess the costs of the administrative burden stemming from legislation at EU or national level, and allow for easier monitoring, thus facilitating constructive participation by SMEs in future consultations;

11.  Stresses, however, that any ex post evaluation would be easier if the ex ante assessments were carried out properly and took all dimensions into account; believes that the impact assessment culture of all the European institutions should be improved, in particular where SMEs and self-employed people are affected by EU legislative proposals; calls on the Commission to assess the added value of granting more independence and powers to the impact assessment board; recommends, furthermore, that Parliament make greater use of its impact assessment and SME testing facilities, e.g. before introducing substantial changes to Commission proposals; calls on the Commission to publish an annual statement of the total net cost to business of new proposals;

12.  Believes that burdens arising from new proposals should be offset by reductions of at least a similar size;

13.  Invites the Commission and the Member States to develop a web-based application enabling the administration concerned to indicate whether, and to what extent, SMEs are affected by upcoming legislation, along the lines of the German Mittelstandsmonitor, which indicates by means of a simple traffic light system whether SMEs are very likely (red), likely (yellow) or unlikely (green) to be affected by upcoming legislation;

14.  Welcomes the Council’s request, in its conclusions of 14 and 15 March 2013, for further action to reduce the overall regulatory burden at both EU and national level;

15.  Considers it regrettable that SMEs have not, as yet, managed to tap into the potential of the single market, and recalls that only 25 % of SMEs in the EU-27 are exporters; calls on the Commission and the Member States to work together to improve the integration of the single market, and to do more to share best practice in relation to simple paperwork and achieve better regulatory cooperation across the Member States; welcomes the conclusion of the Doha Development Agenda (DDA) at the ninth WTO ministerial conference of December 2013 and hopes the agreement will facilitate greater opportunities for trade, particularly for SMEs; welcomes, in this connection, the Commission’s intention to propose a standard VAT declaration and believes that any standardisation of VAT declaration forms should be no more complicated than the most simple form it replaces;

16.  Encourages the Member States to mirror the REFIT and ‘top ten’ exercises being undertaken at EU level and to ensure that the administrative and regulatory burden is also eased for SMEs at national level; stresses, further, that Member States can be particularly effective in reducing the regulatory burden on SMEs by avoiding gold‑plating when transposing European directives into national legislation; urges the Member States to use the option of reducing unnecessary burden for SMEs in those areas in which legislation allows it;

17.  Stresses that Member States can be particularly effective in alleviating the administrative burden on SMEs and avoiding overregulation when transposing European directives into national law; urges the Member States to ease formalities for SMEs where this is authorised under EU legislation;

18.  Welcomes the introduction of the SME test, while regretting the fact that only a few Member States have included it in their national decision-making processes;

19.  Recalls its position on general exemptions of micro-enterprises from EU legislation, as laid down in its aforementioned resolution of 23 October 2012, according to which exemptions should only be applied where a proper SME test is able to demonstrate, on a case-by-case basis, that the specific needs of micro-enterprises cannot be addressed by means of adapted solutions or lighter regimes; stresses that exemptions for micro‑enterprises often carry the risk that SMEs may be subject to a patchwork of national laws which foster fragmentation and hinder their access to the internal market;

20.  Welcomes the fact that the Commission has extended the mandate of the High Level Group on Administrative Burdens (HLGAB) until October 2014, as requested by Parliament in its aforementioned resolution of 23 October 2012 and as provided for by the COSME programme;

21.  Notes the conclusion from the SMEs’ responses to the ‘top ten’ consultation process that the Working Time Directive is complex and inflexible and in many cases requires SMEs to acquire specialised legal assistance which is costly; calls on the Commission to produce its detailed impact assessment as a matter of urgency;

22.  Recommends that, in order to reduce the burdens arising from health and safety legislation, where possible a light-touch regulatory regime should be employed for low-risk companies;

23.  Recommends that REACH fee rates for SMEs and micro-enterprises be proportionate;

24.  Asks the Commission to accelerate all processing of REACH applications and, in particular, to fast-track applications from SMEs and micro-enterprises; invites the Commission to provide SMEs and micro-enterprises with suitable guidance to help them submit successful applications;

25.  Considers the ‘top ten’ consultation process to be a useful exercise, and its results to constitute an important signal from SMEs and the organisations representing them; calls on the Commission to continue this exercise on a regular basis through Eurobarometer; notes, however, a significant imbalance in the geographical distribution of responses to the ‘top ten’ consultation process; invites the Commission to carry out an ex post evaluation of the reasons behind such an imbalance, so as to ensure that the information collected is not skewed by a lack of awareness or other factors that may have distorted the feedback collected;

26.  Expects the next Commission to maintain responsibility for ‘smart regulation’ as one of the competences of the President’s office, and encourages it to enhance the role of the SME envoys; urges the Commission, accordingly, to ensure that national SME organisations form part of the recently established network of SME envoys and that the SME Assembly is duly informed of EU initiatives;

27.  Insists that the next Commission should establish a European objective of a 30 % reduction in the costs to SMEs generated by administrative and regulatory burdens by 2020;

28.  Warns of the risks to local and regional competitiveness and individual entrepreneurship if efforts to reduce gold-plating result instead in an increase in maximum harmonisation or one‑size‑fits‑all legislation;

29.  Instructs its President to forward this resolution to the Council and the Commission.

(1) OJ L 124, 20.5.2003, p. 36. (2) OJ C 68 E, 7.3.2014, p. 40. (3) Texts adopted, P7_TA(2013)0036.

European Parliament resolution of 17 April 2014 on Pakistan: recent cases of persecution (2014/2694(RSP))

P7_TA(2014)0460 RC-B7-0399/2014

The European Parliament,

–  having regard to its previous resolutions on human rights and democracy in Pakistan, in particular those of 12 March 2014 on Pakistan’s regional role and political relations with the EU(1), of 10 October 2013 on recent cases of violence and persecution against Christians, notably in Peshawar(2), of 10 March 2011 on Pakistan, in particular the murder of Shahbaz Bhatti(3), of 20 January 2011 on the situation of Christians in the context of freedom of religion(4) and of 20 May 2010 on religious freedom in Pakistan(5),

–  having regard to Article 18 of the Universal Declaration of Human Rights of 1948,

–  having regard to Article 18 of the International Covenant on Civil and Political Rights of 1966,

–  having regard to the statements by EU Vice-President / High Representative Catherine Ashton regarding the attack on the Christian community in Peshawar of 23 September 2013 and regarding the assassination of Shahbaz Bhatti of 2 March 2011,

–  having regard to the UN Declaration on the Elimination of all Forms of Intolerance and of Discrimination based on Religion and Belief of 1981,

–  having regard to the reports of the UN Special Rapporteur on freedom of religion or belief,

–  having regard to the report of the UN Special Rapporteur on freedom of religion or belief and the report of the UN Special Rapporteur on the independence of judges and lawyers (Addendum: Mission to Pakistan), of 4 April 2013,

–  having regard to its resolution of 11 December 2013 on the Annual Report on Human Rights and Democracy in the World 2012 and the European Union’s policy on the matter(6), which condemns the persecution of Christians and other religious minorities,

–  having regard to the EU-Pakistan five-year engagement plan of March 2012, which contains priorities such as good governance and dialogue on human rights, as well as the closely related 2nd EU-Pakistan Strategic Dialogue of 25 March 2014,

–  having regard to the Council conclusions on Pakistan of 11 March 2013 that reiterate the EU’s expectations regarding the promotion of and respect for human rights and condemn all acts of violence, including against religious minorities(7),

–  having regard to Rules 122(5) and 110(4) of its Rules of Procedure,

A.  whereas a Christian couple, Shafqat Emmanuel and Shagufta Kausar, was sentenced to death on 4 April 2014 for allegedly sending a text message insulting the Prophet Mohammed; whereas the couple denied responsibility and declared that the phone from which the text originated was lost a while before the message was sent;

B.  whereas Sawan Masih, a Pakistani Christian from Lahore, was sentenced to death on 27 March 2014 for blasphemy against the Prophet Mohammed; whereas the announcement of allegations against Masih sparked fierce rioting in Joseph Colony, a Christian neighbourhood in the city of Lahore, in which many buildings, including two churches, were burnt down;

C.  whereas Asia Bibi, a Christian woman from Punjab, was arrested in June 2009 and received a death sentence in November 2010 on charges of blasphemy; whereas her appeal has finally reached the high court in Lahore after several years; whereas for the two first hearings in January and March 2014 the presiding judges appeared to be on leave;

D.  whereas in 2012, the 14-year-old Christian girl Rimsha Masih, who was wrongfully accused of desecrating the Quran, was acquitted after being found to have been framed and the person responsible was arrested; whereas, however, she and her family had to leave the country;

E.  whereas Christians, who represent about 1,6 % of the population in the Islamic Republic of Pakistan, suffer from prejudice and sporadic bouts of mob violence; whereas the majority of Pakistani Christians lead a precarious existence, often fearful of allegations of blasphemy, a subject which can provoke outbursts of public violence; whereas several other Christians are currently in prison on blasphemy charges;

F.  whereas Mohammad Asghar, a UK citizen with a mental illness living in Pakistan, was arrested after allegedly sending letters to various officials claiming he was a prophet, and was sentenced to death in January 2014;

G.  whereas another UK citizen, 72-year-old Masood Ahmad, a member of the Ahmaddiya religious community, was only recently released on bail after having been arrested in 2012 on charges of citing from the Quran, which is considered as blasphemy in the case of Ahmaddis who are not recognised as Muslims and are forbidden to ‘behave as Muslims’ under Section 298-C of the criminal code;

H.  whereas five Hindu temples have been attacked in different parts of Sindh (in Tharparkar, Hyderabad and Larkana) over the past months and three Hindu boys have been accused of blasphemy and are currently under arrest in Badin (Sindh), as they had spray-painted some signs on the occasion of Holi (the Hindu festival of colour);

I.  whereas members of the Shia Hazara community in particular are now victims of killings and forced migration on a daily basis due to the upsurge in sectarian violence in Pakistan; whereas more than 10 000 Hindus have also reportedly fled the province as abductions-for-ransom have become routine over the last three years;

J.  whereas Pakistan’s blasphemy laws make it dangerous for religious minorities to express themselves freely or engage openly in religious activities; whereas there has been global concern for a number of years about the application of these laws because accusations are often motivated by score-settling, economic gain or religious intolerance, and they foster a culture of vigilantism, giving mobs a platform for harassment and attacks; whereas Pakistan has been requested by UN Human Rights mechanisms to repeal the blasphemy laws, or at the very least, to put safeguards in place immediately, to prevent abuse of the law to victimise citizens, who often come from minority communities;

K.  whereas hundreds of honour killings were reported in 2013 alone; whereas these represent only the most visible form of aggression against women, given the consistently high rate of domestic violence and forced marriage;

L.  whereas Pakistan plays an important role in fostering stability in southern Asia and should therefore lead by example in strengthening the rule of law and human rights;

M.  whereas the European Union recently granted GSP+ status to Pakistan, subject to the implementation of applicable human rights conventions;

1.  Expresses its deep concern at the sharp increase in sectarian violence and religious intolerance towards minorities and attacks on places of worship, including Christian churches, and the continuing repression of women in Pakistan;

2.  Is worried about the effects that such violence has on the future development of Pakistani society as a whole in view of the socioeconomic challenges facing the country; stresses that it is in Pakistan’s long-term interest for all its citizens to experience greater security;

3.  Expresses its deep concern that the controversial blasphemy laws are open to misuse which can affect people of all faiths in Pakistan; expresses its particular concern that use of the blasphemy laws, which were publicly opposed by the late Minister Shahbaz Bhatti and by the late Governor Salman Taseer, is currently on the rise and targets Christians and other religious minorities in Pakistan;

4.  Reminds the Pakistani authorities of their obligation under international law to respect freedom of expression and the freedom of thought, conscience, religion and belief; calls on the Pakistani authorities to release prisoners who are convicted on the grounds of blasphemy, and to overrule the death sentences on appeal; calls on the Pakistani authorities to guarantee the independence of the courts, the rule of law and due process in line with international standards on judicial proceedings; calls furthermore on the Pakistani authorities to provide sufficient protection to all those involved in blasphemy cases, including by shielding judges from outside pressure, by protecting the accused and their families and communities from mob violence, and by providing solutions for those who are acquitted but cannot go back to their places of origin;

5.  Strongly condemns the application of the death penalty under any circumstances; calls on the Government of Pakistan as a matter of urgency to turn the de facto moratorium on the death penalty into the effective abolition of the death penalty;

6.  Calls on the Government of Pakistan to carry out a thorough review of the blasphemy laws and their current application – as contained in Sections 295 and 298 of the Penal Code – for alleged acts of blasphemy, especially in light of the recent death sentences; encourages the government to withstand pressure from religious groups and some opposition political forces to maintain these laws;

7.  Appeals to the government to speed up the madrassa reforms by establishing a basic curriculum that meets international standards, with special emphasis on removing hate material from the curricula and introducing community and religious tolerance teaching into the basic syllabus; calls on the Commission to follow up on previous demands for the revision of EU-financed textbooks containing hate speech;

8.  Urgently appeals to the Government and Parliament of Pakistan to introduce reforms to the formal justice system in order to discourage recourse to informal structures such as jirgas and panchayats, and to substantially increase the financial and human resources of the judiciary, in particular at the level of courts of first instance;

9.  Strongly condemns all acts of violence against religious communities as well as all kinds of discrimination and intolerance on the grounds of religion and belief; calls on the Government of Pakistan to intervene to protect victims of religiously motivated mob violence, and notably to ban public hate speech, and encourages all Pakistanis to work together to promote and ensure tolerance and mutual understanding; urges the Pakistani authorities to prosecute those responsible for incitement and false accusations of blasphemy;

10.  Recalls that freedom of religion and minority rights are guaranteed by Pakistan’s constitution; welcomes the measures taken in the interest of religious minorities by the Government of Pakistan since November 2008, such as establishing a five per cent quota for minorities in the federal job sector, recognising non-Muslim public holidays and declaring a National Minorities Day;

11.  Urges the Pakistani government, however, to increase efforts aimed at better inter-religious understanding, to actively address religious hostility by societal actors, to combat religious intolerance, acts of violence and intimidation, and to act against the perception of impunity;

12.  Is deeply concerned about the plight of minority women and girls who often suffer twice over, notably through the practice of forced conversion and targeted sexual violence; urges the Pakistani authorities to improve protection, prosecution and reparations;

13.  Stresses that the right to freedom of thought, conscience and religion is a fundamental human right; expresses its concern at the recent tendency in Pakistan to curb the freedom of thought, expression and information by blocking and controlling much frequented internet services; calls on the Government to stop censorship of the internet and to revise both the draft anti-terrorism and draft NGO legislation, which would massively curtail the independence and freedom of operation of NGOs and could lead to the breakdown of work by internationally connected NGOs in Pakistan;

14.  Stresses the important role Pakistan plays in fostering stability in the whole region; encourages Pakistan to play a constructive role in promoting a secure Afghanistan and therefore urges the Pakistani Government to strengthen respect for fundamental human rights in its own country as well as in the whole region;

15.  Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the European Commission / High Representative of the Union for Foreign Affairs and Security Policy, the EU Special Representative for Human Rights, the governments and parliaments of the Member States, the Secretary-General of the UN, the UN Human Rights Council, and the Government and Parliament of Pakistan.

(1) Texts adopted, P7_TA(2014)0208. (2) Texts adopted, P7_TA(2013)0422. (3) OJ C 199 E, 7.7.2012, p. 179. (4) OJ C 136 E, 11.5.2012, p. 53. (5) OJ C 161 E, 31.5.2011, p. 147. (6) Texts adopted, P7_TA(2013)0575. (7) http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/135946.pdf

European Parliament resolution of 17 April 2014 on Syria: situation in certain vulnerable communities (2014/2695(RSP))

P7_TA(2014)0461 RC-B7-0387/2014

The European Parliament,

–  having regard to its previous resolutions on Syria, in particular that of 6 February 2014 on the situation in Syria(1),

–  having regard to the Council conclusions on Syria of 14 April 2014 and 20 January 2014,

–  having regard to the statements of Vice-President / High Representative Catherine Ashton of 15 March 2014 on the 3rd anniversary of the Syrian uprising, and of 8 April 2014 in reference to the killing of Father Van der Lugt, SJ, in Homs, Syria,

–  having regard to the Universal Declaration of Human Rights of 1948,

–  having regard to the Geneva Conventions of 1949 and the additional protocols thereto,

–  having regard to the International Covenant on Civil and Political Rights of 1966,

–  having regard to the UN Declaration on the Elimination of all Forms of Intolerance and of Discrimination based on Religion and Belief of 1981,

–  having regard to UN Security Council resolution 2139 of 22 February 2014,

–  having regard to the report of the Independent International Commission of Inquiry on the Syrian Arab Republic of 12 February 2014,

–  having regard to the statement of the spokesperson for UN Secretary-General Ban Ki-moon on Syria of 7 April 2014,

–  having regard to the statement of UN Emergency Relief Coordinator and Under-Secretary-General for Humanitarian Affairs Valerie Amos on Syria of 28 March 2014,

–  having regard to the European Convention on Human Rights of 1950, and the Charter of Fundamental Rights of the European Union of 2000,

–  having regard to the Rome Statute of the International Criminal Court,

–  having regard to Rules 122(5) and 110(4) of its Rules of Procedure,

A.  whereas the ongoing violent crisis in Syria has resulted in a humanitarian catastrophe of a scale unprecedented in recent history, with more than 150 000 people, most of them civilians, killed, more than 6,5 million people internally displaced, and more than 2,6 million Syrian refugees, mainly in Lebanon, Turkey, Jordan, Iraq and Egypt; whereas ethnic and religious minorities find themselves in a particularly vulnerable situation in this crisis;

B.  whereas the Syrian population has traditionally been composed of a rich diversity of ethnic and religious communities, respectively including Arabs, Arameans, Armenians, Assyrians, Circassians, Kurds and Turkmens, and Muslims, Christians and Druze, as well as other groups; whereas none of the religious or ethnic communities in Syria has been spared by the three-year old conflict, which is increasingly taking on a sectarian dimension;

C.  whereas these communities have always been part of Syrian society, contributing to its development and advancement inter alia through their engagement in the education, health, and culture sectors; whereas they therefore have an important role to play in the democratisation of Syria and need to be represented in any consultation on the country’s future and in any reconciliation process;

D.  whereas until recently most of these communities had tried to avoid taking sides in the conflict, as many may recognise the need for a change of regime in Syria but also fear that, if the government is overthrown, they will be targeted by Sunni jihadist rebels, calling for the establishment of an Islamic state, or others;

E.  whereas the Assad regime has deliberately triggered a dynamic of sectarian polarisation as its survival strategy, which has inflamed the latent and hitherto largely repressed communal tensions; whereas the increasing presence and infiltration of Islamist extremists and jihadists on all sides in the conflict has created legitimate concerns among minority communities in the country; whereas the deepening Sunni-Shiite cleavage in Syria is also affecting inter-communal relations in neighbouring countries;

F.  whereas Dutch Jesuit Father Frans van der Lugt, who had been living in Syria for many decades and was well known for refusing to leave the besieged city of Homs, was beaten and shot dead by gunmen on 7 April 2014; whereas the UN Secretary-General has condemned this inhumane act of violence against a man who stood by the people of Syria amid sieges and growing difficulties; whereas other Christians remain in the monastery where Father van der Lugt was killed and the international community is worried about their safety, as it is worried about the safety of the many civilians still trapped in the city of Homs, which continues to be under siege;

G.  whereas Father Paolo Dall’Oglio has been missing since July 2013, and Bishop Boulos Yazigi of the Greek Orthodox Church and Bishop John Ibrahim of the Assyrian Orthodox Church were seized in April 2013 from their car by gunmen outside the northern city of Aleppo; whereas their fate is still unknown;

H.  whereas the fights between regime forces and rebel fighters, including elements linked to Al-Qaeda, at the end of March 2014 led to the evacuation of the vast majority of the population of Kassab, an Armenian town on the Syrian-Turkish border; whereas there are contradicting reports about the number of victims of these events;

I.  whereas the latest reports from Syria show that rebels from the Al-Qaeda-linked al-Nusra Front have captured a number of Christian and Kurdish villages on the Turkish border, such as the Kurdish town of Ayn-Al-Arab/Kobane;

J.  whereas Palestine refugees remain a particularly vulnerable group in the crisis in Syria; whereas many of them live in besieged areas, in particular in Yarmouk Camp, which continues to be under heavy attack by regime forces and various armed groups, leading to inhuman suffering of the 18 000 Palestinians staying in this area; whereas almost all of the 540 000 Palestine refugees in Syria are in need of assistance today, with more than half of them being internally displaced within the country, and are facing major obstacles or increasing restrictions when trying to flee to Egypt, Jordan or Lebanon;

K.  whereas women and children continue to suffer from aggression, sexual and gender-based violence, abuse and the lack of basic goods and services in the ongoing crisis in Syria; whereas there are a disproportionately high number of women and children among Syrian refugees; whereas nearly 3 million children have dropped out of school in Syria since 2011, while at least 500 000 registered child refugees are not enrolled in schools in neighbouring countries;

L.  whereas human rights defenders, intellectuals, religious figures, journalists and civil society activists continue to be victims of the violent crisis in Syria; whereas 2011 Sakharov Prize winner Razan Zaitouneh, who was kidnapped together with her husband and two other human rights activists more than four months ago in Douma, continues to be held at an unknown location;

M.  whereas political and religious leaders have a duty at all levels to combat extremism and terrorism and to promote mutual respect among individuals and religious and ethnic groups;

N.  whereas international humanitarian and human rights law prohibits the targeting of individuals or groups based on religious or ethnic identity, as well as attacks against civilians not taking part in hostilities; whereas such actions may constitute war crimes and crimes against humanity; whereas UN Security Council resolution 2139 stressed the need to end impunity for violations of international humanitarian law and violations and abuses of human rights, and reaffirmed that those who had committed or were otherwise responsible for such violations and abuses in Syria must be brought to justice;

1.  Expresses its profound dismay at the unprecedented level of human suffering and loss of life, and expresses its solidarity with the families of all innocent victims in the Syrian conflict; strongly condemns the violations of human rights and international humanitarian law by the Assad regime and by pro-government militia; condemns any human rights abuses and violations of international humanitarian law by armed groups opposing the regime; strongly condemns the increasing number of terrorist attacks carried out by extremist organisations and individuals in the country;

2.  Is convinced that a lasting solution to the current crisis in Syria can only be achieved through a Syrian-led, inclusive political process with the backing of the international community; deplores the fact that peace talks are currently failing due to the regime’s obstruction of these talks, and urgently requests that all the parties involved and the international community put all their efforts into working towards new talks, which will bring this massacre to an end; stresses the importance of the participation and contribution of all parts of Syrian society, including ethnic and religious minorities, in this process, and underlines the crucial role of minorities in preserving the unique cultural heritage and the tradition of intercultural, interethnic and interreligious coexistence in Syria, with the aim of creating a vibrant society for future generations of Syrians;

3.  Reiterates that the rights of minorities are inextricably linked to respect for other fundamental human rights and freedoms, such as the right to liberty, security, equality and freedom of expression;

4.  Strongly condemns the recent attacks against certain religious and ethnic communities in Syria, notably the Christians, Armenians and Kurds, and calls on all the parties involved to stop all actions aimed at inciting interethnic and interconfessional conflict; stresses that all actors involved in the conflict have a duty to protect all the different minorities present in the country; recognises, however, that the attacks against certain vulnerable communities are only one aspect of the Syrian civil war;

5.  Condemns in the strongest possible terms the killing of Father Frans Van der Lugt, an inhumane act of violence against a man who stood by the people of Syria amid sieges and growing difficulties; pays tribute to his work, which extended beyond the besieged city of Homs and continues to help hundreds of civilians with their everyday survival needs;

6.  Urges all parties to the conflict to adhere strictly to international humanitarian and human rights law, and calls for the protection of all vulnerable communities, inter alia by allowing humanitarian access and lifting all sieges of populated areas, including the Old City of Homs; reiterates its call for the establishment of safe havens along the Turkish-Syrian border, and possibly within Syria, and for the creation of humanitarian corridors by the international community;

7.  Condemns the attack against the Armenian town of Kassab; supports all efforts at local level to avoid and combat sectarian violence in rebel-held areas and in Kurdish-majority areas; urges current and future Syrian authorities to provide reliable and efficient protection for vulnerable communities in the country and to ensure their safe and secure return to their homes, as well as ensuring that the perpetrators of the attacks against them are brought to justice and tried by due process;

8.  Calls again for special attention to be given to the vulnerable situation of Palestine refugees in Syria, and particularly the inhuman living conditions of Palestinians staying in Yarmouk Camp; reiterates its call to all the parties involved in the conflict to allow the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) and other international aid organisations unhindered access to this camp, as well as to all other besieged areas in the country, in order to alleviate the extreme suffering of the local population; commends the work of UNRWA in Syria and calls for increased international support for its activities;

9.  Calls on the international community and the EU to pay special attention to the suffering and needs of women and children in the Syrian crisis; calls for zero tolerance regarding the killing, abduction and recruitment of children in particular, as well as for humanitarian aid capacities in the field of support to traumatised victims to be strengthened;

10.  Recalls the pressing need to release all political detainees, civil society activists, humanitarian aid workers, religious figures (including Father Paolo Dall’Oglio, Greek Orthodox Bishop Boulos Yazigi and Assyrian Orthodox Bishop John Ibrahim), journalists and photographers held by the regime or by rebel fighters, and to grant independent monitors access to all places of detention; urges once again the EU and its Member States to make all possible efforts to achieve the release of 2011 Sakharov Prize winner Razan Zaitouneh and of all other human rights activists in Syria, including internet activist Bassel Safadi Khartabil;

11.  Remains convinced that there can be no sustainable peace in Syria without accountability for the crimes committed during the conflict, including for those based on religious or ethnic grounds; reiterates its call for the referral of the situation in Syria to the International Criminal Court and supports all initiatives in this direction; commends the work of the Independent International Commission of Inquiry on the Syrian Arab Republic and of other international actors collecting and preserving a large volume of testimony on serious crimes committed by the regime and by some rebel groups in Syria, and calls for action in order to bring perpetrators to justice;

12.  Expresses its grave concern at the profound consequences of the fragmentation of Syria for the stability and security of the region, particularly in Lebanon and Iraq; is deeply concerned about the high number of Syrian refugees in the neighbouring countries, especially in Lebanon, where, according to the UNHCR, the number has now passed the 1 million mark, not including the tens of thousands who have not registered with the agency, while 12 000 people are fleeing Syria for Lebanon each week; is deeply concerned also about the continued refugee outflow affecting Jordan, Turkey, Iraq and Egypt; encourages the European Union and its Member States to continue providing substantial humanitarian assistance to the populations affected by the Syrian conflict;

13.  Instructs its President to forward this resolution to the Vice-President / High Representative, the Council, the Commission, the governments and parliaments of the Member States, the Secretary-General of the United Nations, the UN-Arab League Special Envoy to Syria, the Government and Parliament of Egypt, the Government and Parliament of Iraq, the Government and Parliament of Jordan, the Government and Parliament of Lebanon, the Government and Parliament of Turkey, the Secretary-General of the Cooperation Council for the Arab States of the Gulf, and all the parties involved in the conflict in Syria.

(1) Texts adopted, P7_TA(2014)0099.

European Parliament resolution of 17 April 2014 on the situation in North Korea (Democratic People’s Republic of Korea) (2014/2696(RSP))

P7_TA(2014)0462 RC-B7-0388/2014

The European Parliament,

–  having regard to the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights, the Convention on the Rights of the Child and the Convention on the Elimination of All Forms of Discrimination against Women, to all of which the Democratic People’s Republic of Korea (DPRK) is a party,

–  having regard to the 1984 Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment,

–  having regard to its resolutions of 14 March 2013 on nuclear threats and human rights in the Democratic People’s Republic of Korea(1), of 24 May 2012 on the situation of North Korean refugees(2) and of 8 July 2010 on North Korea(3),

–  having regard to the statements by the spokesperson for the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, Catherine Ashton, of 19 August 2013 on the recent inter‑Korean agreements and of 5 June 2013 concerning the expulsion of nine North Koreans from Laos, and to the statement by Catherine Ashton of 13 March 2013 on nuclear threats and human rights in North Korea,

–  having regard to the declaration by the DPRK of 13 March 2013 that it had ended the 1953 armistice and ‘is not restrained by the North-South declaration on non-aggression’,

–  having regard to the UN Human Rights Council resolutions of 26 March 2014 and 21 March 2013 and the UN General Assembly resolution of 18 December 2013 on the situation of human rights in the Democratic People’s Republic of Korea,

–  having regard to the Commission of Inquiry on human rights in the Democratic People’s Republic of Korea which was established on 21 March 2013 by the UN Human Rights Council,

–  having regard to Rules 122(5) and 110(4) of its Rules of Procedure,

A.  whereas the UN Commission of Inquiry (CoI) investigated ‘the systematic, widespread and grave violations of human rights’ in North Korea and released a report on 7 February 2014;

B.  whereas the professional, thorough and inclusive working methods applied by the CoI can serve as an example for the work of future fact-finding missions requested by the UN Human Rights Council where governments refuse all cooperation, as has been the case with the DPRK;

C.  whereas the DPRK, upon the establishment of the CoI, stated that it would ‘totally reject and disregard it’, refused it permission to visit the country and failed to cooperate in any way; whereas the DPRK regime has not cooperated in general with the UN and has rejected all UN Human Rights Council and General Assembly resolutions regarding human rights in North Korea; whereas it has failed to cooperate with the UN Special Rapporteur on the situation of human rights in the country and has rejected all assistance from the UN High Commissioner for Human Rights;

D.  whereas the EU‑DPRK human rights dialogue was suspended by the DPRK in 2003;

E.  whereas the CoI has come to the conclusion that ‘systematic, widespread and gross human rights violations have been and are being committed by the DPRK, and in many instances, the violations found constitute crimes against humanity based on State policies’ and do not have ‘any parallel in the contemporary world’;

F.  whereas these crimes against humanity entail extermination, murder, enslavement, torture, imprisonment, rape, forced abortions and other sexual violence, persecution on political, religious, racial and gender grounds, the forcible transfer of populations, the enforced disappearance of persons and the inhumane act of knowingly causing prolonged starvation; whereas these crimes against humanity are ongoing in the DPRK because the policies, institutions and patterns of impunity remain in place;

G.  whereas the CoI’s report concludes that ‘the unspeakable atrocities’ that have been committed against the hundreds of thousands of past and present inmates of the prison camps ‘resemble the horrors of camps that totalitarian States established during the twentieth century’;

H.  whereas the report demonstrates that in the DPRK the state claims absolute control over every aspect of its citizens’ lives, and an absolute monopoly over information, movement inside and outside the country and over social life (the Songbun class system);

I.  whereas the government has even been extending its repressive acts beyond the state’s borders, with the systematic abduction of, and denial of repatriation to, well over 200 000 people from other countries, many of whom have subsequently suffered enforced disappearance;

J.  whereas discrimination and violence against women is widespread, including public beatings and sexual assault on women by public officials; whereas women and girls are vulnerable to trafficking and forced sex work;

1.  Notes with extreme concern the findings of the UN CoI and supports its recommendations;

2.  Reiterates its strong condemnation of the decade-long state repression exercised in a systematic manner by the present and past Supreme Leaders of the DPRK and the administration, and calls on the DPRK to put an immediate end to the grave, widespread and systematic human rights violations perpetrated against its own people;

3.  Underlines the fact that the violations described, many of which constitute crimes against humanity, have been taking place for far too long under the observing eyes of the international community, and appeals to the EU Member States and all members of the UN General Assembly to move the suffering of the North Korean population to the forefront of the political agenda and to ensure that the CoI’s recommendations are followed up;

4.  Is convinced that the time has come for the international community to take concrete action to end the perpetrators’ impunity; demands that those most responsible for the crimes against humanity committed in the DPRK be held accountable, brought before the International Criminal Court and subjected to targeted sanctions;

5.  Asks the European External Action Service (EEAS) to ensure that the implementation of the CoI’s recommendations be a standing item on the agenda for human rights dialogues and other meetings with third countries, in particular the dialogues with Russia and China; asks the EEAS and the EU Special Representative for Human Rights, furthermore, to ensure that all EEAS ambassadors are briefed about the CoI’s report and understand that they are tasked with ensuring worldwide support for UN Security Council action as recommended by the CoI;

6.  Calls on the Government of the DPRK to fulfil its obligations under the human rights instruments to which it is a party, and to cooperate fully with humanitarian organisations, independent human rights monitors and the UN Special Rapporteur on the situation of human rights in the DPRK, inter alia by providing access to the country;

7.  Calls on the EEAS and the Member States to support the UN High Commissioner for Human Rights in establishing special structures to ensure accountability for the crimes committed, through the continued collection of evidence and documentation;

8.  Calls on the DPRK immediately and permanently to stop public and secret executions and to abolish the death penalty; calls, furthermore, on the DPRK to put an end to extrajudicial killings, enforced disappearances and collective punishment, to close all prison camps, to release political prisoners and to allow its citizens to travel freely, both within and outside the country; calls on the DPRK to allow free expression and press freedom for national and international media, and uncensored access to the internet for its citizens;

9.  Urges the Government of the DPRK to hand over all information on third-country nationals suspected to have been abducted by North Korean state agents during the past decades, and to return those abductees still being held to their home countries immediately;

10.  Expresses its particular concern at the continuing severity of the food situation in the country and its impact on the economic, social and cultural rights of the population; calls on the Commission to maintain existing humanitarian aid programmes and channels of communication with the DPRK, and to secure the safe delivery of such aid to the target population groups; calls on the DPRK authorities to ensure access for all citizens to food and humanitarian assistance on the basis of need, in accordance with humanitarian principles; calls, furthermore, on the DPRK to invest its resources in improving the appalling living conditions of its people instead of in the further build‑up of its military arsenal and nuclear programme;

11.  Calls on all UN members, and in particular the People’s Republic of China, to come to the aid of North Korean citizens who manage to escape from the country, by granting them the right to stay, together with legal protection and basic services equivalent to those afforded to their own citizens, and – imperatively – to refrain from cooperating in any way with the DPRK administration in the extradition or repatriation of North Korean citizens;

12.  Welcomes any humanitarian project between the two Koreas – such as reunions of separated South and North Korean families – that can concretely ease the suffering of the population, and calls on both governments to increase the number of initiatives of this type;

13.  Calls on the UN, as proposed by the CoI, to convene a high-level political conference between the parties to the Korean War with the aim of concluding a final peaceful settlement of the war and establishing a procedure for intensifying cooperation, along similar lines to the Helsinki process, for example;

14.  Instructs its President to forward this resolution to the Council, the Commission, the Government of the DPRK, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the EU Special Representative for Human Rights, the parliaments of the Member States, the UN Secretary-General, the UN Human Rights Council, the members of the UN Commission of Inquiry on human rights in the DPRK, including the Special Rapporteur, the Government and Parliament of the Republic of Korea, the Government and Parliament of the Russian Federation, the Government and Parliament of Japan and the Government of the People’s Republic of China.

(1) Texts adopted, P7_TA(2013)0096. (2) OJ C 264 E, 13.9.2013, p. 94. (3) OJ C 351 E, 2.12.2011, p. 132.