Amendment of Council Regulation (EC) No 850/98 concerning the conservation of fishery resources through technical measures for the protection of juveniles of marine organisms ***I
European Parliament legislative resolution of 10 September 2013 on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 850/98 concerning the conservation of fishery resources through technical measures for the protection of juveniles of marine organisms (COM(2012)0432 – C7-0211/2012 – 2012/0208(COD))
– having regard to the Commission proposal to Parliament and the Council (COM(2012)0432),
– having regard to Article 294(2) and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7‑0211/2012),
– 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 14 November 2012(1),
– having regard to its resolution of 22 November 2012 on the conservation of fishery resources through technical measures for the protection of juveniles of marine organisms(2),
– having regard to Rule 55 of its Rules of Procedure,
– having regard to the report of the Committee on Fisheries (A7-0256/2013),
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 10 September 2013 with a view to the adoption of Regulation (EU) No …/2013 of the European Parliament and of the Council amending Council Regulation (EC) No 850/98 concerning the conservation of fishery resources through technical measures for the protection of juveniles of marine organisms
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(2) 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,
Acting in accordance with the ordinary legislative procedure(3),
Whereas:
(1) Council Regulation (EC) No 850/98(4) confers powers upon the Commission in order to implement some of the provisions of that Regulation.
(2) As a consequence of the entry into force of the Lisbon Treaty, certain powers conferred under Regulation (EC) No 850/98 need to be aligned with Articles 290 and 291 of the Treaty on the Functioning of the European Union.
(3) In order to apply certain provisions of Regulation (EC) No 850/98enable certain provisions of this Regulation to be updated efficiently to reflect technical and scientific progress, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the following:
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the division of regions into geographical areas;
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to amendthe amendment of rules concerning the conditions for the use of certain mesh size combinations;
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to adoptthe adoption of detailed rules for obtaining the percentage of target species taken by more than one fishing vessel, in order to ensure that such percentages are respected by all the vessels involved in the fishing operation;
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to adoptthe adoption of rules concerning the technical descriptions and method of use of authorised devices that might be attached to the fishing net, and which do not obstruct or diminish the effective mesh opening of the net;
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conditions under which vessels exceeding eight meters length overall shall be permitted to use beam trawls within certain waters of the Union;
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measures designed to address unexpectedly small or large recruitments of juveniles, changes in migration patterns or any other changes in the conservation status of fish stocks, with immediate effect.;
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acts excluding specific fisheries of a Member State, in ICES sub-areas VIII, IX and X, from the application of certain provisions for gillnets, entangling nets and trammel nets, with a very low level of shark by-catches and of discards. [Am. 1]
(4) It is of particular importance that the Commission carry out appropriate consultations during its preparatory work for the adoption of delegated acts, includingespecially at expert level, in order to obtain objective, rigorous, complete and up-to-date information. [Am. 2]
(5) 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.
(6) In order to ensure uniform conditions for the implementation of the provisions of Regulation (EC) No 850/98 implementing powers should be conferred upon the Commission concerning the following:
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technical rules for measuring mesh sizes;
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square-meshed netting and twine thickness;
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technical rules related to the construction of netting materials;
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listing of devices that may obstruct or otherwise diminish the effective mesh opening in a fishing net;
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transmission of lists of vessels to which a special fishing permit to use beam trawls has been issued;
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technical rules related to measuring engine power and gear dimensions;
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the obligation of Member States to ensure that levels of fishing effort are not exceeded in certain areas of ICES Division IXa, and
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temporary measures where the conservation of stocks of marine organisms calls for immediate action.
(7) The implementing powers conferred upon the Commission, except those concerning the obligation of Member States to ensure that levels of fishing effort are not exceeded in certain areas of ICES Division IXa, should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council(5).
(8) Regulation (EC) No 850/98 should therefore be amended accordingly,
HAVE ADOPTED THIS REGULATION:
Article 1
Regulation (EC) No 850/98 is amended as follows:
(1) In Article 2, paragraph 3 is replaced by the following:"
"3. The regions referred to in paragraph 1 may be divided into geographical areas, in particular on the basis of the definitions referred to in paragraph 2. The Commission shall be empowered to adopt delegated acts in accordance with Article 48a concerning the division of regions into geographical areas for the purpose of identifying geographical areas where specific technical conservation measures apply." [Am. 3]
"
(2) Article 4 is amended as follows:
(a) In paragraph 4, the following point is added:"
"(c) The Commission shall be empowered to adopt delegated acts in accordance with Article 48a to amend Annex X and Annex XI, in order to increase the protection of juvenile fish in the context of the conservation of fish stocks."
"
(b) In paragraph 5, point (b) is replaced by the following:"
"(b) The Commission shall be empowered to adopt delegated acts in accordance with Article 48a concerning the method of calculation of the percentages of target species and of other species retained on board when these have been taken by a net or nets towed simultaneously by more than one fishing vessel, and the method of verification for ensuring that any fishing vessels involved in the joint fishing operation that retain fish on board comply with the percentages of species as set out in Annexes I to V."
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(c) Paragraph 6 is replaced by the following:"
"6. Technical rules for measuring mesh sizes, including for control purposes, shall be determined by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 48(2)."
"
(3) In Article 7, the following paragraph is added:"
"8. Technical rules for measuring square-meshed netting, including for control purposes, shall be determined by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 48(2)."
"
(4) In Article 8, the following paragraph is added:"
"4. Technical rules concerning the measuring of twine thickness and the construction of netting material, including for control purposes, shall be determined by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 48(2)."
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(5) Article 16 is replaced by the following:"
"Article 16
1. No device shall be used by means of which the mesh in any part of the fishing net is obstructed or otherwise effectively diminished.
2. Paragraph 1 shall not exclude the use of certain devices which may obstruct or otherwise effectively diminish the mesh in any part of the fishing net but which may serve to protect or strengthen the net. The Commission shall be empowered to adopt delegated acts in accordance with Article 48a concerning the technical descriptions and the method of use and attachment of such devices.
3. An exhaustive list of devices that comply with the technical descriptions established according to paragraph 2, and which may be attached to the fishing net, shall be determined by implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 48(2)."
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(6) Article 29 is amended as follows:
(a) Paragraph 6 is replaced by the following:"
"6. The Commission shall be empowered to adopt delegated acts in accordance with Article 48a concerning detailed conditions for the application of the criteria set out in paragraph 2 under which vessels exceeding eight meters length overall shall be permitted to use beam trawls in the areas set out in paragraph 1."
"
(b) the following paragraph is added:"
"7. The Commission shall establish the operational requirements for transmission of the lists to be provided to the Commission by Member States as referred to in paragraph 2(c), first indent, by means of an implementing act. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 48(2)."
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(7) In Article 29b, paragraph 6 is replaced by the following:"
"6. Member States shall communicate to the Commission their measures to fulfil the obligation laid down in paragraph 5. If the Commission finds that the measures of a Member State do not fulfil that obligation, it may propose amendments to those measures. Where no agreement on the necessary measures is reached between the Commission and the Member State concerned, the Commission may establish such measures by means of implementing acts."
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(8) In Article 34, paragraph 6 is replaced by the following:"
"6. Technical rules for measuring engine power and gear dimensions shall be determined by means of an implementing act. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 48(2)."
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(8a) In Article 34b, paragraph 11 is replaced by the following: "
"11. After consulting STECF, the Commission shall be empowered to adopt delegated acts excluding specific fisheries of a Member State, in ICES sub-areas VIII, IX and X, from the application of paragraphs 1 to 9, where information provided by Member States shows that those fisheries result in a very low level of shark by-catches and of discards." [Am. 4]
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(9) Article 45 is replaced by the following:"
"Article 45
1. The Commission shall be empowered to establish, by means of delegated acts adopted in accordance with Article 48a, technical conservation measures on the use of towed or fixed gear or on fishing activities in certain areas or during certain periods in addition to or by way of derogation to this Regulation. Those measures shall be designed to address unexpectedly small or large recruitments of juveniles, changes in migration patterns or any other changes in the conservation status of fish stocks of marine organisms, with immediate effect. [Am. 5]
2. Where the conservation of stocks of marine organisms calls for immediate action, the Commission may decide on temporary measures by means of implementing acts to remedy the situation. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 48(3).
3. Where the conservation of certain species or fishing grounds is seriously threatened, and where any delay would result in damage which would be difficult to repair, a Member State may take appropriate non-discriminatory conservation measures in respect of the waters under its jurisdiction.
4. The measures referred to in paragraph 3, together with an explanatory memorandum, shall be communicated to the Commission and the other Member States as soon as they are adopted.
Within ten working days of receipt of such communication, the Commission shall confirm the appropriateness and non-discriminatory nature of such measures, or require their cancellation or amendment by means of implementing acts. The Commission's decision shall be immediately notified to the Member States."
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(10) In Article 46, paragraph 4 is replaced by the following:"
"4. At the initiative of the Commission, or at the request of any Member State, the question of whether a national technical measure applied by a Member State complies with paragraph 1 of this Article may be the subject of a decision taken by the Commission by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 48(2). Should such a decision be taken, the third and fourth subparagraphs of paragraph 2 shall apply."
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(11) Article 48 is replaced by the following:"
"Article 48
1. The Commission shall be assisted by the Committee for fisheries and aquaculture established by Regulation (EC) No 2371/2002. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011 of the European Parliament and of the Council*.
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.
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* Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13)."
"
(12) The following Article is inserted:"
"Article 48a
1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.
2. The delegation of powerpower to adopt delegated acts referred to in Article 2(3), point (c) of Article 4(4)c, point (b) of Article 4(5)b, Article 16(2), Article 29(6),Article29d(7), Article34b(11) and Article 45(1) shall be conferred on the Commission for an indeterminatea period of timethree yearsfrom…(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 three-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period. [Am. 6]
3. The delegation of powers referred to in ArticlesArticle 2(3), point (c) of Article 4(4)c, point (b) of Article 4(5)b, Article 16(2), Article 29(6), Article29d(7), Article34b(11 ) and Article 45(1) may be revoked at any time by the European Parliament or by the Council. A decision of revocationto 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. [Am. 7]
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 ArticlesArticle 2(3), point (c) of Article 4(4)c, point (b) of Article 4(5)b, Article 16(2), Article 29(6), Article29d(7), andArticle34b(11) or Article 45(1) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of 2two 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 2two months at the initiative of the European Parliament or of the Council."
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[Am. 8]
Article 2
This Regulation shall enter into force on the 20th 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.
Council Regulation (EC) No 850/98 of 30 March 1998 for the conservation of fishery resources through technical measures for the protection of juveniles of marine organisms (OJ L 125, 27.4.1998, p. 1).
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 Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p.13).
Property consequences of registered partnerships *
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European Parliament legislative resolution of 10 September 2013 on the proposal for a Council regulation on jurisdiction, applicable law and the recognition and enforcement of decisions regarding the property consequences of registered partnerships (COM(2011)0127 – C7-0094/2011 – 2011/0060(CNS))
– having regard to the Commission proposal to the Council (COM(2011)0127),
– having regard to Article 81(3) of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0094/2011),
– having regard to the reasoned opinion submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Italian Senate, the Polish Sejm, the Polish Senate and the Romanian Senate, asserting that the draft legislative act does not comply with the principle of subsidiarity,
– having regard to the opinion of the European Union Agency for Fundamental Rights of 31 May 2012,
– having regard to Article 55 of its Rules of Procedure,
– having regard to the report of the Committee on Legal Affairs and the opinion of the Committee on Civil Liberties, Justice and Home Affairs (A7-0254/2013),
1. Approves the Commission proposal as amended;
2. Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;
3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;
4. Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;
5. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Text proposed by the Commission
Amendment
Amendment 1 Proposal for a regulation Recital 8
(8) The specific features of these two forms of union, namely marriage and registered partnerships, and the resultant differences in the principles applicable to them, are the grounds for enacting two separate instruments containing the provisions governing matrimonial property regimes and those governing the property consequences of registered partnerships, which are the subject of this Regulation.
deleted
Amendment 2 Proposal for a regulation Recital 8 a (new)
(8a) Recognition in a Member State of a decision relating to the property consequences of a registered partnership has as its only object to allow the enforcement of the property consequences determined in that decision. It does not imply recognition by that Member State of the partnership underlying the property consequences which gave rise to that decision. Member States where the institution of a registered partnership does not exist are not obliged by this Regulation to create such an institution.
Amendment 3 Proposal for a regulation Recital 10
(10) The Regulation covers matters arising from the property consequences of registered partnerships. 'Registered partnership' is defined here solely for the purposes of this Regulation. The actual substance of the concept is defined in the national laws of the Member States.
(10) This Regulation covers matters arising from the property consequences of registered partnerships. 'Registered partnership' is defined here solely for the purposes of this Regulation. For the purposes of this Regulation, a registered partnership is a form of union other than marriage. The actual substance of the concept of a registered partnership is defined in the national laws of the Member States.
Amendment 4 Proposal for a regulation Recital 11 a (new)
(11a) This Regulation should not, however, apply to areas of civil law concerning matters other than the property regime of a registered partnership. For reasons of clarity, therefore, a number of questions which could be seen as having a link with matters of that regime should be explicitly excluded from the scope of this Regulation.
(Corresponds to recital 11 in Regulation (EU) No 650/2012 and AM 3 of the report in 2011/0059(CNS).)
Amendment 5 Proposal for a regulation Recital 12
(12) As the maintenance obligations between registered partners are provided for in Council Regulation (EC) No 4/2009 of 18 December 2008 on jurisdiction, applicable law, recognition and enforcement of decisions and cooperation in matters relating to maintenance obligations, theymust be excluded from the scope of this Regulation, as should issues relating to the validity and effects of gifts covered by Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations.
(12) The maintenance obligations between registered partners, which are provided for in Council Regulation (EC) No 4/2009 of 18 December 2008 on jurisdiction, applicable law, recognition and enforcement of decisions and cooperation in matters relating to maintenance obligations, should be excluded from the scope of this Regulation, as should issues relating to succession, which are covered by Regulation (EU) No 650/2012 of the European Parliament and of the Council of 4 July 2012 on jurisdiction, applicable law, recognition and enforcement of decisions and acceptance and enforcement of authentic instruments in matters of succession and on the creation of a European Certificate of Succession1.
(13) Issues relating to the nature of rights in rem that may exist under the national law of Member States, and those linked to the disclosure of such rights, should also be excluded from the scope of this Regulation, as they are in Regulation (EU) No ... [of the European Parliament and of the Council on jurisdiction, applicable law, recognition and enforcement of decisions and authentic instruments in matters of succession and the creation of a European Certificate of Succession]. This means that the courts of the Member State in which a property of one or both partners is located may take measures under property law, regarding such things as the recording of a transfer of the property in the public register, where the law of that Member State so provides.
(13) This Regulation – like Regulation (EU) No 650/2012 – should not affect the limited number (‘numerus clausus’) of rights in rem known in the national law of some Member States. A Member State should not be required to recognise a right in rem relating to property located in that Member State if the right in rem in question is not known in its law.
Amendment 7 Proposal for a regulation Recital 13 a (new)
(13a) However, in order to allow the beneficiaries to enjoy in another Member State the rights which have been created or transferred to them by the liquidation of the property regime of a registered partnership, this Regulation should provide for the adaptation of an unknown right in rem to the closest equivalent right in rem under the law of that other Member State. In the context of such an adaptation, account should be taken of the aims and the interests pursued by the specific right in rem and the effects attached to it. For the purposes of determining the closest equivalent national right in rem, the authorities or competent persons of the State whose law applies to the property regime of the registered partnership may be contacted for further information on the nature and the effects of the right. To that end, the existing networks in the area of judicial cooperation in civil and commercial matters could be used as well as any other available means facilitating the understanding of foreign law.
(Corresponds to recital 16 in Regulation (EU) No 650/2012 and AM 6 of the report in 2011/0059(CNS).)
Amendment 8 Proposal for a regulation Recital 13 b (new)
(13b) The requirements for the recording in a register of a right in immovable or movable property should be excluded from the scope of this Regulation. It should therefore be the law of the Member State in which the register is kept (for immoveable property, the lex rei sitae) which determines under what legal conditions and how the recording must be carried out and which authorities, such as land registers or notaries, are in charge of checking that all requirements are met and that the documentation presented or established is sufficient or contains the necessary information.
(Corresponds in part to recital 18 in Regulation (EU) No 650/2012 and AM 7 of the report in 2011/0059(CNS).)
Amendment 9 Proposal for a regulation Recital 13 c (new)
(13c) The effects of the recording of a right in a register should also be excluded from the scope of this Regulation. It should therefore be the law of the Member State in which the register is kept which determines whether the recording is, for instance, declaratory or constitutive in effect. Thus, where, for example, the acquisition of a right in an immovable property requires a recording in a register under the law of the Member State in which the register is kept in order to ensure the erga omnes effect of registers or to protect legal transactions, the moment of such acquisition should be governed by the law of that Member State.
(Corresponds to recital 19 in Regulation (EU) No 650/2012 and AM 8 of the report in 2011/0059(CNS).)
Amendment 10 Proposal for a regulation Recital 13 d (new)
(13d) Like Regulation (EU) No 650/2012, this Regulation should respect the different systems for dealing with property-regime issues applied in the Member States.For the purposes of this Regulation, the term ‘court’ should therefore be given a broad meaning so as to cover not only courts in the true sense of the word, exercising judicial functions, but also the notaries or registry offices in some Member States who or which, in certain matters of property regimes, exercise judicial functions like courts, and the notaries and legal professionals who, in some Member States, exercise judicial functions in a given property-regime matter by delegation of power by a court. All courts as defined in this Regulation should be bound by the rules of jurisdiction set out in this Regulation.Conversely, the term ‘court’ should not cover non-judicial authorities of a Member State empowered under national law to deal with matters of property regimes, such as the notaries in most Member States where, as is usually the case, they are not exercising judicial functions.
(Corresponds to recital 20 in Regulation (EU) No 650/2012 and AM 10 of the report in 2011/0059(CNS).)
Amendment 11 Proposal for a regulation Recital 15
(15) Similarly, this Regulation must provide for extension of the jurisdiction of the courts of a Member State handling an application for dissolution or annulment of a registered partnership to include matters relating to the property consequences of the registered partnership arising in connection with that application, if the partners so agree.
(15) Similarly, this Regulation must provide for extension of the jurisdiction of the courts of a Member State handling an application for dissolution or annulment of a registered partnership to include matters relating to the property consequences of the registered partnership arising in connection with that application, if the jurisdiction of the courts concerned has been recognised expressly or impliedly by the partners.
Amendment 12 Proposal for a regulation Recital 15 a (new)
(15a) Where matters of property regimes are not linked to the dissolution or annulment of the partnership or to the death of a partner, the partners may decide to submit questions related to their property regime to the courts of the Member State of the law they chose as the law applicable to their property regime. This requires an agreement between the partners, which may be concluded, at the latest, until the matter is put before the court and subsequently as provided for by the lex fori.
(16) In other situations, this Regulation must protect the territorial jurisdiction of a Member State's courts to deal with claims relating to the property consequences of the registered partnership in accordance with a list of criteria listed in order of precedence designed to ensure the existence of a close link between the partners and the Member State whose courts have jurisdiction. Courts other than those of the Member State where the partnership was registered may decline this extension of jurisdiction if their domestic law does not provide for registered partnerships. Finally, if no court has jurisdiction to deal with the situation in the light of the other provisions of this Regulation, an alternative jurisdictional rule has been included to avoid any risk of denial of justice.
(16) This Regulation must protect the territorial jurisdiction of a Member State’s courts over applications concerning the property consequences of the registered partnership to be determined in cases other than those of separation of the partners or death of a partner in accordance with a set of criteria listed in order of precedence designed to ensure the existence of a close link between the partners and the Member State whose courts have jurisdiction. Courts other than those of the Member State where the partnership was registered should be given the opportunity to decline this extension of jurisdiction if their domestic law does not provide for registered partnerships.
Amendment 14 Proposal for a regulation Recital 16 a (new)
(16a) In order to remedy, in particular, situations of denial of justice this Regulation should provide a forum necessitatis allowing a court of a Member State, on an exceptional basis, to rule on a property regime case which is closely connected with a third State. Such an exceptional basis may be deemed to exist when proceedings prove impossible in the third State in question, for example because of civil war, or when a beneficiary cannot reasonably be expected to initiate or conduct proceedings in that State. Jurisdiction based on forum necessitatis should, however, be exercised only if the case has a sufficient connection with the Member State of the court seised.
(Corresponds to recital 31 in Regulation (EU) No 650/2012 and AM 14 of the report in 2011/0059(CNS).)
Amendment 15 Proposal for a regulation Recital 18
(18) To facilitate the partners' management of their property, the law of the Member State where the partnership was registered will apply to all the partners' property, even if this law is not the law of a Member State.
(18) To facilitate registered partners’ management of their property, this Regulation should authorise them to choose the law applicable to their property, regardless of the nature or location of the property, from amongst the legal systems with which they have close links because of residence or their nationality. There is no reason why that choice should be denied to registered partnerships. If the partners choose a law which does not recognise registered partnerships, the choice of law should be considered null and void. The law determined by the objective connection should then be applied. Even though the parties concerned are generally well informed about their rights, the requirement concerning particular legal protection should be countered by the requirement for judicial advice on the impact of the choice of law. That requirement will be met, in particular, where the advice is guaranteed by additional formal rules concerning the choice of law, notably on notarisation.
Amendment 16 Proposal for a regulation Recital 18 a (new)
(18a) In order to create legal certainty and clarity, this Regulation should also include a rule concerning multiple registrations of a registered partnership, which should relate to the most recent registration. The Member States should ensure that there are no multiple registrations of registered partnerships.
Amendment 17 Proposal for a regulation Recital 18 b (new)
(18b) Where no applicable law is chosen, and with a view to reconciling predictability and legal certainty with consideration of the life actually lived by the partners, this Regulation must introduce harmonised conflict-of-laws rules to establish the law applicable to all the partners’ property on the basis of a scale of connecting factors. The common habitual residence of the partners at the time of the establishment of the partnership or the first common habitual residence of the partners following the establishment of the partnership should constitute the first criterion, ahead of the partners' common nationality of the at the time of the establishment of the partnership. If neither of those criteria applies, or failing a first common habitual residence in cases where the partners have dual common nationalities at the time of the establishment of the registered partnership, the third criterion should be the State with which the partners have the closest links, taking into account all the circumstances, it being made clear that those links are to be considered as they were at the time of the establishment of the partnership. The laws defined by those criteria should not be applied if they do not recognise registered partnerships. As a default rule the law of the State in which the partnership was registered should apply to the partners’ property.
Amendment 18 Proposal for a regulation Recital 18 c (new)
(18c) If nationality is used to determine the applicable law, account must be taken of the fact that some States with a legal system based on common law use domicile and not nationality as a connecting factor.
Amendment 19 Proposal for a regulation Recital 18 d (new)
(18d) To ensure the legal certainty of transactions and to prevent any change of the law applicable to the property consequences of registered partnerships being made without the partners being notified, no such change should be made save at the express request of the parties. Such a change by the partners should not have retroactive effect unless they expressly so stipulate. Whatever the case, it may not infringe the rights of third parties and the validity of transactions entered into previously.
Amendment 20 Proposal for a regulation Recital 19 a (new)
(19a) All necessary information should be made available in a simple manner and by appropriate means, in particular through a multilingual internet site of the Commission.
Amendment 21 Proposal for a regulation Recital 19 b (new)
(19b) Exchanges of good practice among legal practitioners should be encouraged.
Amendment 22 Proposal for a regulation Recital 19 c (new)
(19c) The Commission should introduce an information and training tool for the relevant court officials and legal practitioners by setting up an interactive portal in all official languages of the institutions of the Union, including a system for sharing professional expertise and practices.
Amendment 23 Proposal for a regulation Recital 23
(23) Since mutual recognition of decisions rendered in the Member States is one of the objectives of this Regulation, this Regulation must lay down rules on the recognition and enforcement of decisions on the basis of Regulation (EC) No 44/2001, adjusted where necessary to meet the specific requirements of matters covered by this Regulation. Therefore it should not be possible in a Member State to refuse the recognition and enforcement, in whole or in part, of a decision concerning the property consequences of a registered partnership if that Member State's national law does not recognise such partnerships or provides for different consequences with regard to the property.
(23) Since mutual recognition of decisions on questions of property regimes concerning registered partnerships rendered in the Member States is one of the objectives of this Regulation, this Regulation must lay down rules on the recognition, enforceability and enforcement of decisions on the basis of other legal instruments in the area of judicial cooperation in civil matters, adjusted where necessary to meet the specific requirements of matters covered by this Regulation. Therefore, it should not be possible in a Member State to refuse the recognition and enforcement, in whole or in part, of a decision concerning the property consequences of a registered partnership if that Member State's national law does not recognise such partnerships or provides for different consequences with regard to the property.
(24) In order to take into account different waysof dealing with matters of the property consequences of registered partnerships in the Member States, this Regulation must guarantee the recognition and enforcement of authentic instruments. Nevertheless, the authentic instruments cannot be treated as court decisions with regard to their recognition. The recognition of authentic instruments means that they enjoy the same evidentiary effect with regard to their contents and the same effects as in their Member State of origin, and a presumption of validity which may be rebutted if they are contested.
(24) In order to take into account the different systemsfor dealing with matters of the property consequences of registered partnerships in the Member States, this Regulation should guarantee the acceptance and enforceabilityin all Member States of authentic instruments in matters of property regimes concerning registered partnerships.
(Corresponds to recital 60 in Regulation (EU) No 650/2012 and AM 20 of the report in 2011/0059(CNS).)
Amendment 25 Proposal for a regulation Recital 24 a (new)
(24a) In terms of the recognition, enforceability and enforcement of judicial decisions and of the acceptance and enforceability of authentic instruments and the enforceability of court settlements, this Regulation should lay down rules on the basis of, in particular, Regulation (EU) No 650/2012.
(25) While the law applicable to the property consequences of registered partnerships must govern the legal relationship between a partner and a third party, the conditions for relying on that law should be regulated by the law of the Member State of habitual residence of the partner or the third party, in the interests of the third party's protection. The law of that Member State may thus provide that the partner may invoke the law of his or her property regime against the third party only if the conditions of registration or disclosure laid down in that Member State have been complied with, unless the third party was aware or ought to have been aware of the law applicable to the property consequences of the registered partnership.
(25) The law applicable to the property consequences of registered partnerships under this Regulation must govern the legal relationship between a registered partner and a third party.However, in the interests of the third party’s protection, neither partner should be able to invoke that law or overriding mandatory provisions in a legal relationship between one of the partners and a third party if the partner who has a legal relationship with the third party, and the third party, are habitually resident in the same State, which is not the State whose law is applicable to the property regime of the registered partnership. Exceptions should apply if the third party does not merit protection, in other words if he or she was aware, or ought to have been aware, of the law applicable, or if the requirements applicable to registration or publicity in the State were complied with.
Amendment 27 Proposal for a regulation Recital 26 a (new)
(26a) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission with regard to the establishment and subsequent amendment of the attestations and forms pertaining to the declaration of enforceability of decisions, court settlements and authentic instruments. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers1.
______________
1OJ L 55, 28.2.2011, p. 13.
(Corresponds to recital 78 in Regulation (EU) No 650/2012 and AM 23 of the report in 2011/0059(CNS).)
Amendment 28 Proposal for a regulation Recital 26 b (new)
(26b) The advisory procedure should be used for the adoption of implementing acts establishing and subsequently amending the attestations and forms provided for in this Regulation in accordance with the procedure laid down in Article 4 of Regulation (EU) No 182/2011.
(Corresponds to recital 79 in Regulation (EU) No 650/2012 and AM 24 of the report in 2011/0059(CNS).)
Amendment 29 Proposal for a regulation Recital 28
(28) This Regulation respects fundamental rights and observes the principles recognised in the Charter of Fundamental Rights of the European Union, in particular Articles 7, 9, 17, 21 and 47 concerning, respectively, respect for private and family life, the right to marry and to found a family according to national laws, property rights, the prohibition of any form of discrimination and the right to an effective remedy and to a fair trial. The Member States' courts must apply this Regulation in a manner consistent with these rights and principles.
(28) This Regulation respects fundamental rights and observes the principles recognised in the Charter of Fundamental Rights of the European Union, in particular Articles 7, 9, 17, 20, 21 and 47 concerning, respectively, respect for private and family life, the right to marry and to found a family according to national laws, property rights, equality before the law, the prohibition of any form of discrimination and the right to an effective remedy and to a fair trial. The Member States’ courts must apply this Regulation in a manner consistent with those rights and principles.
(Corresponds in part to recital 81 in Regulation (EU) No 650/2012 and AM 25 of the report in 2011/0059(CNS).)
Amendment 30 Proposal for a regulation Article 1 – paragraph 3 – point a
(a) the personal effects of registered partnerships,
deleted
Amendment 31 Proposal for a regulation Article 1 – paragraph 3 – point b
Amendment 35 Proposal for a regulation Article 1 – paragraph 3 – point f
(f) companies set up between registered partners,
(f) questions governed by the law of companies and other bodies, corporate or unincorporated,
(Corresponds to Article 1, point (h), of Regulation (EU) No 650/2012 and AM 30 of the report in 2011/0059(CNS).)
Amendment 36 Proposal for a regulation Article 1 – paragraph 3 – point g
(g) the nature of rights in rem relating to a property and the disclosure of such rights.
(g) the nature of rights in rem,
(Corresponds to Article 1, point (k), of Regulation (EU) No 650/2012 and AM 31 of the report in 2011/0059(CNS).)
Amendment 37 Proposal for a regulation Article 1 – paragraph 3 – point g a (new)
(ga) any recording in a register of rights in immovable or movable property, including the legal requirements for such recording, and the effects of recording or failing to record such rights in a register, and
(Corresponds to Article 1, point (l), of Regulation (EU) No 650/2012 and AM 32 of the report in 2011/0059(CNS).)
Amendment 38 Proposal for a regulation Article 1 – paragraph 3 – point g b (new)
(gb) questions of entitlement to transfer or adjustment, in the case of a dissolution of the registered partnership, between partners or former partners, of rights to retirement or disability pensions accrued during the registered partnership.
Amendment 39 Proposal for a regulation Article 2 – paragraph 1 – point b
(b) 'registered partnership': regime governing the shared life of two people which is provided for in law and is registered by an official authority;
(b) ‘registered partnership’: regime governing the shared life of two people which is established in the manner provided for in law in the Member State where the partnership is registered;
Amendment 40 Proposal for a regulation Article 2 – paragraph 1 – point b a (new)
(ba) ‘partnership agreement’: any agreement by means of which the partners or future partners organise the property regime of their partnership;
Amendment 41 Proposal for a regulation Article 2 – paragraph 1 – point c – introductory part
(c) 'authentic instrument': an instrument which has been officially drawn up or registered as an authentic instrument in the Member State of origin and the authenticity of which:
(c) ‘authentic instrument’: a document in a matter concerning the property regime in a registered partnership which has been formally drawn up or registered as an authentic instrument in a Member State and the authenticity of which:
(Corresponds to Article 3(1), point (i), of Regulation (EU) No 650/2012 and AM 36 of the report in 2011/0059(CNS).)
Amendment 42 Proposal for a regulation Article 2 – paragraph 1 – point d
(d) 'decision': any decision given in a matter of the property consequences of a registered partnership by a court of a Member State, whatever the decision may be called, including the terms 'decree', 'judgment', 'order' or 'writ of execution', and the determination of costs or expenses by an officer of the court;
(d) ‘decision’: any decision given in a matter of the property consequences of a registered partnership by a court of a Member State, whatever the decision may be called, including a decision on the determination of costs or expenses by an officer of the court;
(Corresponds to Article 31(1), point (g), of Regulation (EU) No 650/2012 and AM 37 of the report in 2011/0059(CNS).)
Amendment 43 Proposal for a regulation Article 2 – paragraph 1 – point e
(e) 'Member State of origin': the Member State in which, as the case may be, the decision was given, the partnership contract concluded, the authentic instrument or the instrument liquidating the common property or any other instrument produced by or before the judicial authority or authority of delegation was drawn up;
(e) ‘Member State of origin’: the Member State in which the decision has been given the authentic instrument establishedor the court settlement approved or concluded;
(Corresponds to Article 3(1), point (e), of Regulation (EU) No 650/2012 and AM 38 of the report in 2011/0059(CNS).)
Amendment 44 Proposal for a regulation Article 2 – paragraph 1 – point f
(f) 'Member State addressed': the Member State in which recognition and/or enforcement of the decision, partnership contract, authentic instrument, instrument of liquidation of the common property or any other instrument produced by or before the judicial authority or authority of delegation is requested;
(f) ‘Member State of enforcement’: the Member State in which the declaration of enforceability or the enforcement of the decision, the court settlement or the authentic instrument is sought;
(Corresponds to Article 3(1), point (f), of Regulation (EU) No 650/2012 and AM 39 of the report in 2011/0059(CNS).)
Amendment 45 Proposal for a regulation Article 2 – paragraph 1 – point g
(g) 'court': any competent judicial authority in the Member States which carries out a judicial function in matters of the property consequences of registered partnerships or any other non-judicial authority or person carrying out, by delegation or designation by a judicial authority of a Member State, the functions falling within the jurisdiction of the courts as provided for in this Regulation;
Amendment 46 Proposal for a regulation Article 2 – paragraph 1 a (new)
1a. For the purposes of this Regulation the term ‘court’ means any judicial authority and all other authorities and legal professionals with competence in matters of property regimes in registered partnerships which exercise judicial functions or act pursuant to a delegation of power by a judicial authority or act under the control of a judicial authority, provided that such other authorities and legal professionals offer guarantees with regard to impartiality and the right of all parties to be heard and provided that their decisions under the law of the Member State in which they operate:
(a) may be made the subject of an appeal to, or review by, a judicial authority; and
(b) have a similar force and effect as a decision of a judicial authority on the same matter.
The Member States shall notify the Commission of the other authorities and legal professionals referred to in the first subparagraph in accordance with Article 33a(1).
Amendment 47 Proposal for a regulation Article -3
Article -3
Jurisdiction in matters of property regimes within the Member States
This Regulation shall not affect domestic jurisdiction over property regime cases in the Member States.
Amendment 48 Proposal for a regulation Article 3 – paragraph 1
1. The courts of a Member State seised byan application concerning the succession of a registered partner under Regulation (EC) ... [of the European Parliament and of the Council on jurisdiction, applicable law, recognition and enforcement of decisions and authentic instruments in matters of succession and the creation of a European Certificate of Succession] shall also have jurisdiction to rule on matters of the property consequences of the partnership arising in connection with the application.
1. The courts of a Member State seised inmatters ofthe succession of a registered partner under Regulation (EU) No 650/2012 shall also have jurisdiction to rule on matters of the property consequences of the partnership arising in connection with the succession case.
Jurisdiction in cases of separation of the partners
Jurisdiction in cases of dissolution or annulment
The courts of a Member State seised by an application for dissolution or annulment of a registered partnership shall also have jurisdiction, if the partners so agree, to rule on the property consequences arising in connection with the application.
The courts of a Member State seised of an application for dissolution or annulment of a registered partnership shall also have jurisdiction to rule on the property consequences arising in connection with the application if the jurisdiction of the courts concerned has been recognised, expressly or otherwise in an unequivocal manner by the partners.
Such an agreement may be concluded at any time, even during the proceedings. If it is concluded before the proceedings, it must be drawn up in writing and dated and signed by both parties.
Failing agreementbetween the partners, jurisdiction is governed by Article 5.
Failing recognition of the jurisdiction of the court referred to in paragraph 1, jurisdiction shall be governed by Article 5.
Amendment 50 Proposal for a regulation Article 4 a (new)
Article 4a
Choice-of-court agreement
1. The partners may agree that the courts of the Member State whose law they have chosen, in accordance with Article 15b, as the law applicable to the property regime of their partnership are to have jurisdiction to rule on that property regime. Such jurisdiction shall be exclusive.
Without prejudice to the third subparagraph, a choice-of-court agreement may be concluded or amended at any time, but at the latest when the court is seised.
If the law of the forum so provides, the partners may also choose the competent jurisdiction after the court has been seised. In that event, such choice shall be recorded in court in accordance with the law of the forum.
If the agreement is concluded before the proceedings, it must be drawn up in writing and dated and signed by both parties. Any communication by electronic means which provides a durable record of the agreement shall be equivalent to ‘writing’.
2. The partners may also agree that, if no court has been chosen, the courts of the Member State whose law is applicable pursuant to Article 15 to the property regime of their partnership are to have jurisdiction.
Amendment 51 Proposal for a regulation Article 4 b (new)
Article 4b
Jurisdiction based on the appearance of the defendant
1. Apart from jurisdiction derived from other provisions of this Regulation, a court of a Member State whose law has been chosen under Article -15b, or whose law is applicable under Article 15, and before which a defendant enters an appearance shall have jurisdiction. This rule shall not apply where an appearance was entered to contest the jurisdiction, or where another court has jurisdiction by virtue of Article 3, Article 4 or Article 4a.
2. Before assuming jurisdiction under paragraph 1, the court shall ensure that the defendant is informed of his or her right to contest the jurisdiction and of the consequences of entering or not entering an appearance.
1. In cases other than those provided for in Articles 3 and 4, jurisdiction to rule on proceedings concerning the property consequences of a registered partnership shall lie with the courts of the Member State:
1. Where no court has jurisdiction pursuant to Articles 3, 4 and 4a, jurisdiction to rule on proceedings concerning property consequences shall lie with the courts of the Member State:
(a) of the partners'common habitual residence, or failing that,
(a) in whose territory the partners are habitually resident at the time when the court is seised, or failing that,
(b) of the last common habitual residence if one of them still resides there, or failing that
(b) in whose territory the partners were last habitually resident if one of them still resides there at the time when the court is seised, or failing that,
(c) of the defendant'shabitual residence, or failing that,
(c) in whose territory the defendant is habitually resident at the time when the court is seised, or failing that,
(ca) of the nationality of both partners at the time when the court is seised or, in the case of the United Kingdom and Ireland, of their common domicile, or failing that,
(d) of registration of the partnership.
(d) of registration of the partnership.
2. The courts referred to in points (a), (b) and (c) of paragraph 1 may decline jurisdiction if their law does not recognise the institution of registered partnership.
2. The courts referred to in points (a), (b), (c) and (ca) of paragraph 1 may decline jurisdiction if their law does not recognise the institution of registered partnership.
(Regarding Article 5(ca)(new), see the amendment to Article 6(1)(b), Corresponds to AM 47 of the report in 2011/0059(CNS).)
Amendment 53 Proposal for a regulation Article 6
Where no court has jurisdiction under Articles 3, 4 or 5, or the court designated by those provisions has declined jurisdiction, the courts of a Member State shall have jurisdiction in so far as:
Where no court of a Member State has jurisdiction pursuant to Articles 3, 4, 4a or 5, or the court has declined jurisdiction, the courts of a Member State shall have jurisdiction in so far as immovable property or registered assets of one or both partners are located in the territory of that Member State; in that event the court seised shall have jurisdiction to rule only in respect of the immovable property or registered assets in question.
(a) property or properties of one or both partners are located in the territory of that Member State, butin that event the court seised shall have jurisdiction to rule only in respect of the property or properties in question;
(b) both partners are nationals of that Member State or, in the case of the United Kingdom and Ireland, have their common 'domicile' there.
In such cases the courts of a Member State shall have jurisdiction to rule only on immovable property or registered assets located in that Member State.
Where no court of a Member State has jurisdiction under Articles 3, 4, 5 or 6, or the court designated by those provisions has declined jurisdiction, the courts of a Member State may, exceptionally and if the case has a sufficient connection with that Member State, rule on the property consequences of a registered partnership if proceedings would be impossibleor cannot reasonably be brought or conducted in a third State.
Where no court of a Member State has jurisdiction pursuant to Articles 3, 4, 4a, 5 or 6, the courts of a Member State may, on an exceptional basis, rule on a property regime case if proceedings cannot reasonably be brought or conducted, or would be impossible, in a third State with which the case is closely connected.
The case must have a sufficient connection with the Member State of the court seised.
(Corresponds to Article 11 of Regulation (EU) No 650/2012 and AM 49 of the report in 2011/0059(CNS).)
Amendment 55 Proposal for a regulation Article 8
The court seised pursuant to Articles 3, 4, 5, 6 or 7 before which proceedings are pending shall also have jurisdiction to rule on a counterclaim if it falls within the scope of this Regulation.
The court seised pursuant to Articles 3, 4, 4a, 5, 6 or 7 before which proceedings are pending shall also have jurisdiction to rule on a counterclaim if it falls within the scope of this Regulation.
If a court has been seised pursuant to Article 6, its jurisdiction to rule on a counterclaim shall be limited to the immovable property or registered assets which form the subject-matter of the main proceedings.
For the purposes of this Chapter, a court shall be deemed to be seised:
(a) at the time when(…) the document instituting the proceedings or an equivalent document is lodged with the court, provided that the applicant(…) has not subsequently failed to take the steps he (…)was required to take to have service effected on the defendant, or
(a) at the time when the document instituting the proceedings or an equivalent document is lodged with the court, provided that the applicant has not subsequently failed to take the steps he was required to take to have service effected on the defendant;
(b) where the document has to be served before being lodged with the court, on the date on which it is formally drawn up or registered by the authority responsible for service, provided that the applicant has not subsequently failed to take the steps he or she was required to take to have the document lodged with the court.
(b) if the document has to be served before being lodged with the court, on the date on which it is formally drawn up or registered by the authority responsible for service, provided that the applicant has not subsequently failed to take the steps he was required to take to have the document lodged with the court, or
(ba) if the proceedings are opened of the court's own motion, at the time when the decision to open the proceedings is taken by the court, or, where such a decision is not required, at the time when the case is registered by the court.
(Corresponds to Article 14 of Regulation (EU) No 650/2012 and AM 51 of the report in 2011/0059(CNS).)
Amendment 57 Proposal for a regulation Article 12 – paragraph 1
1. Where proceedings involving the same cause of action and between the same parties are brought before courts of different Member States, any court other than the court first seised shall of its own motion stay its proceedings until such time as the jurisdiction of the court first seised is established.
1. Where proceedings involving the same cause of action and between the partners are brought before courts of different Member States, any court other than the court first seised shall of its own motion stay its proceedings until such time as the jurisdiction of the court first seised is established.
Amendment 59 Proposal for a regulation Article 13 – paragraph 2
2. Where these actions are pending at first instance, any court other than the court first seised may also, on the application of one of the parties, decline jurisdiction if the court first seised has jurisdiction over the actions in question and its law permits the consolidation thereof.
2. Where those actions are pending at first instance, any court other than the court first seised may also, on the application of one of the partners, decline jurisdiction if the court first seised has jurisdiction over the actions in question and its law permits the consolidation thereof.
(Corresponds to Article 18 of Regulation (EU) No 650/2012 and AM 54 of the report in 2011/0059(CNS).)
Amendment 60 Proposal for a regulation Article 14
Provisional, including protective, measures provided for by the law of a Member State may be requested from the courts of that State, even where, under this Regulation, the courts of another Member State have jurisdiction as to the substance of the matter.
Application may be made to the courts of a Member State for such provisional, including protective, measures as may be available under the law of that State, even if, under this Regulation, the courts of another Member State have jurisdiction as to the substance of the matter.
(Corresponds to Article 19 of Regulation (EU) No 650/2012 and AM 56 of the report in 2011/0059(CNS).)
Amendment 61 Proposal for a regulation Article -15 (new)
Article -15
Unity and scope of the applicable law
1. The law applicable to the property consequences of a registered partnership shall apply to all assets that are subject to those consequences, regardless of where the assets are located.
2. The law applicable to the property consequences of registered partnerships shall determine, without prejudice to points (g) and (ga) of Article 1(3), inter alia:
(a) the division of the partners’ property into different categories before and after the registered partnership;
(b) the transfer of property from one category to another;
(c) liability for the other partner’s debts, where necessary;
(d) the partners’ rights of disposal during the partnership;
(e) dissolution and liquidation of the property regime of a registered partnership and division of property in the event of dissolution of the registered partnership;
(f) the impact of the property regime of a registered partnership on a legal relationship between one of the partners and a third party on the basis of Article 31.
(Corresponds to AMs 57 and 58 of the report in 2011/0059(CNS).)
Amendment 62 Proposal for a regulation Article -15 a (new)
Article -15a
Universal application
Any law specified by this Regulation shall be applied whether or not it is the law of a Member State.
(See amendment to Article 16; the text has been changed. Corresponds to Article 20 of Regulation (EU) No 650/2012 and AM 59 of the report in 2011/0059(CNS).)
Amendment 63 Proposal for a regulation Article -15 b (new)
Article -15b
Choice of law
1. The partners or future partners may agree on or change the law applicable to the property regime of their registered partnership, provided that that law recognises the institution of registered partnership and attaches property consequences to it, and provided that it is one of the following:
(a) the law of the State in which the partners or future partners, or one of them, is/are habitually resident at the time when the agreement is concluded, or
(b) the law of a State of which one of the partners or future partners is a national at the time when the agreement is concluded, or
(c) the law of a State in which the partnership is registered.
2. If the law chosen does not recognise the institution of registered partnership or does not attach property consequences to it, the applicable law shall be determined in accordance with Article 15.
3. The choice of law pursuant to paragraph 1 shall be valid only if the partners or future partners can prove that, prior to making the choice, they have taken advice on its legal consequences.
This requirement shall be deemed to be fulfilled if the provision of advice is ensured by additional national formal rules governing the choice of law.
4. Unless the partners agree otherwise, a change of the law applicable to the property regime of their registered partnership made during the partnership shall have prospective effect only.
5. If the partners choose to make that change retroactive, its retroactive effect shall not affect the validity of previous transactions entered into under the law hitherto applicable or the rights of third parties under the law previously applicable.
(Corresponds in part to AM 60 of the report in 2011/0059(CNS).)
Amendment 64 Proposal for a regulation Article 15
Determination of the applicable law
Establishing the applicable law where no choice is made
The law applicable to the property consequences of registered partnerships is the law of the State in which the partnership was registered.
1. If no choice-of-law agreement is made pursuant to Article -15b, the property consequences of registered partnerships shall be governed by the law of the State:
(a) in which the partners have their first common habitual residence at the time when their partnership was established or where they set up their first common habitual residence after establishing their partnership, or
(b) the nationality of which both partners have at the time when their partnership is established, or
(c) with which the partners have the closest ties at the time when their partnership is established, with due consideration given to all the circumstances, or
(d) in which the partnership is registered.
2. Points (a), (b) and (c) of paragraph 1 shall not apply if the law in question does not recognise the institution of registered partnership.
3. Point (b) of paragraph 1 shall not apply if the partners have more than one common nationality.
(Corresponds in part to AM 61 et seq. of the report in 2011/0059(CNS).)
Amendment 65 Proposal for a regulation Article 15 a (new)
Article 15a
Multiple registration
If registered partnerships between the same persons exist in different States, the partnership which was most recently established, dating from the day on which it was established, shall be decisive for the purposes of determining the applicable law pursuant to point (d) of Article 15(1).
Amendment 66 Proposal for a regulation Article 16
Article 16
deleted
Universal nature of the conflict-of-law rule
Any law determined in accordance with the provisions of this Chapter shall apply even if it is not the law of a Member State.
Amendment 67 Proposal for a regulation Article 16 a (new)
Article 16a
Formal requirements for choosing the applicable law
1. The agreement on the choice of law referred to in Article -15b shall be expressed in writing, dated and signed by both partners. Any communication by electronic means which provides a durable record of the agreement shall be deemed equivalent to writing.
2. That agreement shall comply with the formal requirements of the law applicable to the property regime of the registered partnership or the law of the State in which the agreement was concluded.
3. However, if the law of the State in which both partners have their habitual residence at the time of their agreement on the choice of applicable law provides for additional formal requirements for agreements of that type or, failing that, for the partnership agreement, those requirements shall apply.
4. If the partners are habitually resident in different States at the time when the choice is made and the laws of those States provide for different formal requirements, the agreement shall be formally valid if it satisfies the requirements of either of those laws.
(Similar to Article 5(2) of Regulation (EU) No 650/2012. See also AM 65 of the report in 2011/0059(CNS).)
Amendment 68 Proposal for a regulation Article 16 b (new)
Article 16b
Formal requirements for a partnership agreement
The formal aspects of a partnership agreement shall be governed mutatis mutandis by Article 16a. Any additional formal requirements within the meaning of Article 16a(3) shall, for the purposes of this Article relate only to the partnership agreement.
Amendment 69 Proposal for a regulation Article 16 c (new)
Article 16c
Adaptation of rights in rem
Where a person invokes a right in rem to which he or she is entitled under the law applicable to the property regime of the registered partnership and the law of the Member State in which that right is invoked does not know the right in rem in question, that right shall, if necessary and to the extent possible, be adapted to the closest equivalent right in rem under the law of that State, taking into account the aims and the interests pursued by the specific right in rem and the effects attached to it.
(Corresponds to Article 31 of Regulation (EU) No 650/2012 and AM 67 of the report in 2011/0059(CNS).)
Amendment 70 Proposal for a regulation Article 17
The provisions of this Regulation shall be without prejudice to the application of imperative provisions the upholding of which is regarded as crucial by a Member State for safeguarding its public interests, such as its political, social or economic organisation, to such an extent that they are applicable to any situation falling within their scope, irrespective of the law otherwise applicable to the property consequences of a registered partnership under this Regulation.
1. Overriding mandatory provisions are provisions the disregard for which would be manifestly incompatible with the public policy (ordre public) of the Member State concerned. The competent authorities should not interpret the public policy exception in a way that is contrary to the Charter of Fundamental rights of the European Union, and in particular Article 21 thereof, which prohibits all forms of discrimination.
2. This Regulation shall not restrict the application of the overriding mandatory provisions of the law of the forum, without prejudice to the transaction protection provisions applicable pursuant to Article 31.
Amendment 71 Proposal for a regulation Article 18 – paragraph 1
1. The application of a rule of the law determined by this Regulation may be refused only if such application is manifestly incompatible with the public policy of the forum.
1. The application of a rule of the law of any State determined by this Regulation may be refused only if its application is manifestly incompatible with the public policy of the forum.
(Corresponds to Article 35 of Regulation (EU) No 650/2012 and AM 70 of the report in 2011/0059(CNS).)
Amendment 72 Proposal for a regulation Article 19
Where this Regulation provides for the application of the law of a State, it means the rules of substantive law in force in that State other than its rules of private international law.
Where this Regulation provides for the application of the law of a State, it refers to the rules of law in force in that State other than its rules of private international law.
States with two or more legal systems — territorial conflicts of laws
States with more than one legal system — territorial conflicts of laws
1. Where the law specified by this Regulation is that of a State which comprises several territorial units each of which has its own rules of law in respect of property regimes of registered partnerships, the internal conflict-of-laws rules of that State shall determine the relevant territorial unit whose rules of law are to apply.
Where a State comprises several territorial units, each of which has its own system of law or its own set of rules concerning matters governed by this Regulation:
1a. In the absence of such internal conflict-of-laws:rules:
(a) any reference to the law of that State shall be construed, for the purposes of determining the law applicable under this Regulation, as a reference to the law in force in the relevant territorial unit;
(a) any reference to the law of that State referred to in paragraph 1 shall, for the purposes of determining the law applicable pursuant to provisions referring to the habitual residence of the partners, be construed as referring to the law in force in the territorial unit in which the partners have their habitual residence;
(b) any reference to habitual residence in that State shall be construed as a reference to habitual residence in a territorial unit;
(b) any reference to the lawof the State referred to in paragraph 1 shall, for the purposes of determining the law applicable pursuant to provisions referring to the nationality of the partners, be construed as referring to the law of the territorial unit with which the partners have the closest connection;
(c) any reference to nationality shall refer to the territorial unit determined by the law of that State, or, in the absence of relevant rules, to the territorial unit chosen by the parties or, in absence of such a choice, to the territorial unit with which the spouse or spouses has or have the closest connection.
(c) any reference to the law of the State referred to in paragraph 1 shall, for the purposes of determining the law applicable pursuant to any other provisions referring to other elements as connecting factors, be construed as referring to the law of the territorial unit in which the relevant element is located.
(Corresponds to Article 36 of Regulation (EU) No 650/2012 and AM 72 of the report in 2011/0059(CNS).)
Amendment 74 Proposal for a regulation Article 20 a (new)
Article 20a
States with more than one legal system – inter-personal conflicts of laws
In relation to a State which has two or more systems of law or sets of rules applicable to different categories of persons in respect of the property regimes of registered partnerships, any reference to the law of such a State shall be construed as referring to the system of law or set of rules determined by the rules in force in that State. In the absence of such rules, the system of law or the set of rules with which the partners have the closest connection shall apply.
Amendment 75 Proposal for a regulation Article 20 b (new)
Article 20b
Non-application of this Regulation to internal conflicts of laws
A Member State which comprises several territorial units each of which has its own rules of law in respect of the property regimes of registered partnerships shall not be required to apply this Regulation to conflicts of laws arising between such units only.
Amendment 76 Proposal for a regulation Article 21 – paragraph 1
1. A decision given in a Member State shall be recognised in the other Member States without any special procedure being required.
1. A decision given in a Member State shall be recognised in the other Member States without any special procedure being required. The recognition of such decisions shall not, however, imply that Member States recognise registered partnerships as a legal institution in their own law.
Amendment 77 Proposal for a regulation Article 21 – paragraph 2
2. Any interested party who raises the recognition of a decision as the principal issue in a dispute may, in accordance with the procedures set out in Articles [38 to 56]of Regulation (EC) No 44/2001, apply for the decision to be recognised.
2. Any interested party who raises the recognition of a decision as the principal issue in a dispute may, in accordance with the procedures set out in Articles 27b to 27o, apply for that decision to be recognised.
(Corresponds to Article 39 of Regulation (EU) No 650/2012 and AM 75 of the report in 2011/0059(CNS).)
Amendment 78 Proposal for a regulation Article 22 – point a
(a) such recognition is manifestly contrary to public policy in the Member State addressed;
(a) such recognition is manifestly contrary to public policy in the Member State in which recognition is sought;
(Corresponds to Article 40 of Regulation (EU) No 650/2012 and AM 76 of the report in 2011/0059(CNS).)
Amendment 79 Proposal for a regulation Article 22 – point b
(b) where it was given in default of appearance, if the defendant was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way as to enable him or her to arrange for his or her defence, unless the defendant failed to commence proceedings to challenge the decision when it was possible for him or her to do so;
(b) where it was given in default of appearance, if the defendant was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way as to enable him or her to arrange for his or her defence, unless the defendant failed to appeal against the decision when it was possible for him or her to do so;
(Corresponds in part to Article 40 of Regulation (EU) No 650/2012.)
Amendment 80 Proposal for a regulation Article 22 – point c
(c) it is irreconcilable with a decision given in a matter between the same parties in the Member State addressed;
(c) it is irreconcilable with a decision given in proceedings between the same parties in the Member State in which recognition isgranted;
(Corresponds to Article 40 of Regulation (EU) No 650/2012 and AM 78 of the report in 2011/0059(CNS).)
Amendment 81 Proposal for a regulation Article 22 – point d
(d) it is irreconcilable with an earlier decision given in another Member State or in a third State involving the same cause of action and between the same parties, provided that the earlier decision fulfils the conditions necessary for its recognition in the Member State addressed.
(d) it is irreconcilable with an earlier decision given in another Member State or in a third State in proceedings involving the same cause of action and between the same parties, provided that the earlier decision fulfils the conditions necessary for its recognition in the Member State in which recognition is sought;
(Corresponds to Article 40 of Regulation (EU) No 650/2012 and AM 79 of the report in 2011/0059(CNS).)
Amendment 82 Proposal for a regulation Article 25
Under no circumstances may a foreign decision be reviewed as to its substance.
Under no circumstances may a decision given in a Member State be reviewed as to its substance.
(Corresponds to Article 41 of Regulation (EU) No 650/2012 and AM 80 of the report in 2011/0059(CNS).)
Amendment 83 Proposal for a regulation Article 26
A court of a Member State in which recognition is sought of a decision given in another Member State may stay the proceedings if an ordinary appeal against the decision has been lodged.
A court of a Member State in which recognition of a decision given in another Member State is sought may stay the proceedings if an ordinary appeal against the decision has been lodged in the Member State of origin.
(Corresponds to Article 42 of Regulation (EU) No 650/2012 and AM 81 of the report in 2011/0059(CNS).)
Amendment 84 Proposal for a regulation Article 27
Decisions given and enforceable in a Member State and court settlements shall be enforced in the other Member States in accordance with Articles [38 to 56 and 58] of Regulation (EC) No 44/2001.
Decisions given in a Member State and enforceable in that State and court settlements shall be enforceable in another Member State if, on the application of any interested party, they have been declared enforceable there in accordance with the procedure provided for in Articles 27b to 27o.
(Corresponds to Article 43 of Regulation (EU) No 650/2012 and AM 82 of the report in 2011/0059(CNS).)
Amendment 85 Proposal for a regulation Article 27 a (new)
Article 27a
Determination of domicile
To determine whether, for the purposes of the procedure provided for in Articles 27b to 27o, a party is domiciled in the Member State of enforcement, the court seised shall apply the internal law of that Member State.
(Corresponds to Article 44 of Regulation (EU) No 650/2012 and AM 83 of the report in 2011/0059(CNS).)
Amendment 86 Proposal for a regulation Article 27 b (new)
Article 27b
Jurisdiction of local courts
1. The application for a declaration of enforceability shall be submitted to the court or competent authority of the Member State of enforcement notified by that Member State to the Commission in accordance with Article 33.
2. The local jurisdiction shall be determined by reference to the place of domicile of the party against whom enforcement is sought, or to the place of enforcement.
(Corresponds to Article 45 of Regulation (EU) No 650/2012 and AM 84 of the report in 2011/0059(CNS).)
Amendment 87 Proposal for a regulation Article 27 c (new)
Article 27c
Procedure
1. The application procedure shall be governed by the law of the Member State of enforcement.
2. The applicant shall not be required to have a postal address or an authorised representative in the Member State of enforcement.
3. The application shall be accompanied by the following documents:
(a) a copy of the decision which satisfies the conditions necessary to establish its authenticity;
(b) the attestation issued by the court or competent authority of the Member State of origin using the form to be established in accordance with the advisory procedure referred to in Article 33c(2), without prejudice to Article 27d.
(Corresponds to Article 46 of Regulation (EU) No 650/2012 and AM 85 of the report in 2011/0059(CNS).)
Amendment 88 Proposal for a regulation Article 27 d (new)
Article 27d
Non-production of the attestation
1. If the attestation referred to in point (b) of Article 27c(3) is not produced, the court or competent authority may specify a deadline for its production or accept an equivalent document or, if it considers that it has sufficient information before it, dispense with its production.
2. If the court or competent authority so requires, a translation of the documents shall be produced. The translation shall be done by a person qualified to do translations in one of the Member States.
(Corresponds to Article 47 of Regulation (EU) No 650/2012 and AM 86 of the report in 2011/0059(CNS).)
Amendment 89 Proposal for a regulation Article 27 e (new)
Article 27e
Declaration of enforceability
The decision shall be declared enforceable immediately on completion of the formalities in Article 27c without any review under Article 22. The party against whom enforcement is sought shall not at this stage of the proceedings be entitled to make any submissions on the application.
(Corresponds to Article 48 of Regulation (EU) No 650/2012 and AM 87 of the report in 2011/0059(CNS).)
Amendment 90 Proposal for a regulation Article 27 f (new)
Article 27f
Notice of the decision on the application for a declaration of enforceability
1. The decision on the application for a declaration of enforceability shall forthwith be brought to the notice of the applicant in accordance with the procedure laid down by the law of the Member State of enforcement.
2. The declaration of enforceability shall be served on the party against whom enforcement is sought, accompanied by the decision, if not already served on that party.
(Corresponds to Article 49 of Regulation (EU) No 650/2012 and AM 88 of the report in 2011/0059(CNS).)
Amendment 91 Proposal for a regulation Article 27 g (new)
Article 27g
Appeal against the decision on the application for a declaration of enforceability
1. The decision on the application for a declaration of enforceability may be appealed against by either party.
2. The appeal shall be lodged with the court communicated by the Member State concerned to the Commission in accordance with Article 33.
3. The appeal shall be dealt with in accordance with the rules governing procedure in contradictory matters.
4. If the party against whom enforcement is sought fails to appear before the appellate court in proceedings concerning an appeal brought by the applicant, Article 11 shall apply, even where the party against whom enforcement is sought is not domiciled in any of the Member States.
5. An appeal against the declaration of enforceability shall be lodged within 30 days of service thereof. If the party against whom enforcement is sought is domiciled in a Member State other than that in which the declaration of enforceability was given, the time for appealing shall be 60 days and shall run from the date of service, either on him or her in person or at his or her residence. No extension may be granted on account of distance.
(Corresponds to Article 50 of Regulation (EU) No 650/2012 and AM 89 of the report in 2011/0059(CNS).)
Amendment 92 Proposal for a regulation Article 27 h (new)
Article 27h
Procedure to contest the decision given on appeal
The decision given on the appeal may be contested only by the procedure communicated by the Member State concerned to the Commission in accordance with Article 33.
(Corresponds to Article 51 of Regulation (EU) No 650/2012 and AM 90 of the report in 2011/0059(CNS).)
Amendment 93 Proposal for a regulation Article 27 i (new)
Article 27i
Refusal or revocation of a declaration of enforceability
The court with which an appeal is lodged under Article 27g or Article 27h shall refuse or revoke a declaration of enforceability only on one of the grounds specified in Article 22. It shall give its decision without delay.
(Corresponds to Article 52 of Regulation (EU) No 650/2012 and AM 91 of the report in 2011/0059(CNS).)
Amendment 94 Proposal for a regulation Article 27 j (new)
Article 27j
Staying of proceedings
The court with which an appeal is lodged under Article 27g or Article 27h shall, on the application of the party against whom enforcement is sought, stay the proceedings if the enforceability of the decision is suspended in the Member State of origin by reason of an appeal.
(Corresponds to Article 52 of Regulation (EU) No 650/2012 and AM 92 of the report in 2011/0059(CNS).)
Amendment 95 Proposal for a regulation Article 27 k (new)
Article 27k
Provisional, including protective, measures
1. When a decision must be recognised in accordance with this Section, nothing shall prevent the applicant from availing himself or herself of provisional, including protective, measures in accordance with the law of the Member State of enforcement without a declaration of enforceability under Article 27e being required.
2. The declaration of enforceability shall carry with it by operation of law the power to proceed to any protective measures.
3. During the time specified for an appeal pursuant to Article 27g(5) against the declaration of enforceability and until any such appeal has been determined, no measures of enforcement may be taken other than protective measures against the property of the party against whom enforcement is sought.
(Corresponds to Article 54 of Regulation (EU) No 650/2012 and AM 93 of the report in 2011/0059(CNS).)
Amendment 96 Proposal for a regulation Article 27 l (new)
Article 27l
Partial enforceability
1. Where a decision has been given in respect of several matters and the declaration of enforceability cannot be given for all of them, the court or competent authority shall give it for one or more of them.
2. An applicant may request a declaration of enforceability limited to parts of a decision.
(Corresponds to Article 55 of Regulation (EU) No 650/2012 and AM 94 of the report in 2011/0059(CNS).)
Amendment 97 Proposal for a regulation Article 27 m (new)
Article 27m
Legal aid
An applicant who, in the Member State of origin, has benefited from complete or partial legal aid or exemption from costs or expenses, shall be entitled, in any proceedings for a declaration of enforceability, to benefit from the most favourable legal aid or the most extensive exemption from costs or expenses provided for by the law of the Member State of enforcement.
(Corresponds to Article 56 of Regulation (EU) No 650/2012 and AM 95 of the report in 2011/0059(CNS).)
Amendment 98 Proposal for a regulation Article 27 n (new)
Article 27n
No security, bond or deposit
No security, bond or deposit, however described, shall be required of a party who in one Member State applies for recognition, enforceability or enforcement of a decision given in another Member State on the ground that he or she is a foreign national or that he or she is not domiciled or resident in the Member State of enforcement.
(Corresponds to Article 57 of Regulation (EU) No 650/2012 and AM 96 of the report in 2011/0059(CNS).)
Amendment 99 Proposal for a regulation Article 27 o (new)
Article 27o
No charge, duty or fee
In proceedings for the issue of a declaration of enforceability, no charge, duty or fee calculated by reference to the value of the matter at issue may be levied in the Member State of enforcement.
(Corresponds to Article 58 of Regulation (EU) No 650/2012 and AM 97 of the report in 2011/0059(CNS).)
Amendment 100 Proposal for a regulation Article 28
Recognition of authentic instruments
Acceptance of authentic instruments
1. Authentic instruments drawn up in a Member State shall be recognised in the other Member States, unless their validity is disputed in accordance with the applicable law, and provided such recognition is not manifestly contrary to public policy in the Member State addressed.
1. Authentic instruments established in a Member State shall have the same evidentiary effects in another Member Stateas they have in the Member State of origin or the most comparable effects, provided this is not manifestly contrary to public policy in the Member State concerned.
A person wishing to use an authentic instrument in another Member State may ask the authority establishing the authentic instrument in the Member State of origin to fill in the form to be established in accordance with the advisory procedure referred to in Article 33(2) describing the evidentiary effects which the authentic instrument produces in the Member State of origin.
1a. Any challenge relating to the authenticity of an authentic instrument shall be made before the courts of the Member State of origin and shall be decided upon under the law of that State. The authentic instrument challenged shall not produce any evidentiary effect in another Member State as long as the challenge is pending before the competent court.
1b. Any challenge relating to the legal acts or legal relationships recorded in an authentic instrument shall be made before the courts having jurisdiction under this Regulation and shall be decided upon under the law applicable pursuant to Chapter III or the law referred to in Article 32. The authentic instrument challenged shall not produce any evidentiary effect in a Member State other than the Member State of origin as regards the matter being challenged as long as the challenge is pending before the competent court.
1c. If the outcome of proceedings in a court of a Member State depends on the determination of an incidental question relating to the legal acts or legal relationships recorded in an authentic instrument in property regime matters, that court shall have jurisdiction over that question.
2. The recognition of authentic instruments confers on them evidentiary effect with regard to their contents and a presumption of validity.
(Corresponds to Article 59 of Regulation (EU) No 650/2012 and AM 98 of the report in 2011/0059(CNS).)
Amendment 101 Proposal for a regulation Article 29 – paragraph 1
1. Authentic instruments drawn up and enforceable in one Member State shall, on request, be declared enforceable in another Member State following the procedure set out in Articles [38 to 57] of Regulation (EC) No 44/2001.
1. An authentic instrumentwhich is enforceable in the Member State of origin shall be declared enforceable in another Member State on the application of any interested partyin accordance with the procedure provided for in Articles 27b to 27o.
1a. For the purposes of point (b) of Article 27c(3), the authority which established the authentic instrument shall, on the application of any interested party, issue an attestation using the form to be established in accordance with the advisory procedure referred to in Article 33(2).
2. The court with which an appeal is lodged under Articles [43 and 44] of Regulation (EC) No 44/2001may refuse or revoke a declaration of enforceability only if enforcement of the instrument is manifestly contrary to public policy in the Member State addressed.
2. The court with which an appeal is lodged under Article 27gor Article27hshall refuse or revoke a declaration of enforceability only if enforcement of the instrument is manifestly contrary to public policy in the Member State of enforcement.
(Corresponds to Article 60 of Regulation (EU) No 650/2012 and AM 99 of the report in 2011/0059(CNS).)
Amendment 102 Proposal for a regulation Article 30
Recognition and enforceability of court settlements
Enforceability of court settlements
Court settlements that are enforceable in the Member State of origin shall be recognised and declared enforceable in another Member State at the request of any interested party under the same conditions as authentic instruments. The court with which an appeal is lodged under Article [42 or 44] of Regulation (EC) No 44/2001 may refuse or revoke a declaration of enforceability only if enforcement of the court settlement is manifestly contrary to public policy in the Member State addressed.
1. Court settlements which are enforceable in the Member State of origin shall be declared enforceable in another Member State on the application of any interested party in accordance with the procedure provided for in Articles 27b to 27o.
1a. For the purposes of point (b) of Article 27c(3), the court which approved the settlement or before which it was concluded shall, on the application of any interested party, issue an attestation using the form to be established in accordance with the advisory procedure referred to in Article 33c(2).
1b. The court with which an appeal is lodged under Article 27g or Article 27h shall refuse or revoke a declaration of enforceability only if enforcement of the court settlement is manifestly contrary to the public policy (ordre public) of the Member State of enforcement.
(Corresponds to Article 61 of Regulation (EU) No 650/2012 and AM 100 of the report in 2011/0059(CNS).)
Amendment 103 Proposal for a regulation Article 31 – title
Amendment 104 Proposal for a regulation Article 31 – paragraph 1
1. The property consequences of a registered partnership for a legal relationship between a partner and a third party are governed by the law of the State where the partnership was registered in accordance with Article 15.
1. The property consequences of a registered partnership for a legal relationship between a partner and a third party are governed by the law applicable to property regimes of registered partnerships under this Regulation.
Amendment 105 Proposal for a regulation Article 31 – paragraph 2
2. However, the law of a Member State may provide that the law applicable may not be relied on by a partner in dealings with a third party if one or other of the partners or the third party has their habitual residence in the territory of that Member State andthe conditions of disclosure or registration provided for in the law ofthat Stateare not satisfied, unless the third party was aware of or ought to have been aware of the law applicable to the property consequences of the registered partnership.
2. However, in a legal relationship between a partner and a third party, neither of the partners may rely on the law applicable to the property regime of a registered partnership if the partner in a legal relationship with the third party and the third party have their habitual residence in the same State, whichis not the State whose law is applicable to the property regime of the registered partnership. In such cases, the law of the Member State where the partner concerned and the third party have their habitual residence shall apply to the effects of the property regime on the third party.
Amendment 106 Proposal for a regulation Article 31 – paragraph 3
3. The law of the Member State in which immovable property is located may provide for a similar rule to that laid down in paragraph 2 in respect of the legal relationship between a partner and a third party in respect of that property.
3. Paragraph 2 shall not apply if:
(a) the third party was aware, or ought to have been aware, of the law applicable to the property regime of a registered partnership;
(b) the requirements concerning registration or disclosure of the property regime of the registered partnership in accordance with the law of the State of the habitual residence of the third party and the partner in a legal relationship with the third party were fulfilled, or
(c) in dealings concerning immovable property, the requirements concerning registration or disclosure of the property regime of the registered partnership in respect of the immovable property in accordance with the law of the State of the location of the immovable property were fulfilled.
Amendment 107 Proposal for a regulation Article -32 (new)
Article -32
Habitual residence
1. For the purposes of this Regulation, the habitual residence of companies, associations and legal persons shall be the place of their central administration. The habitual residence of natural persons acting in the course of their business activities shall be their principal place of business.
2. Where the legal relationship is concluded in the course of the operations of a branch, agency or any other establishment, or if, under the contract, performance is the responsibility of such branch, agency or establishment, the place where the branch, agency or any other establishment is located shall be treated as the place of habitual residence.
3. For the purposes of determining the habitual residence, the relevant point in time shall be the time of conclusion of the legal relationship.
Amendment 108 Proposal for a regulation Article 33 – paragraph 1 – point b a (new)
(ba) the names and contact details of the courts or authorities with competence to deal with applications for a declaration of enforceability in accordance with Article 27b(1) and with appeals against decisions on such applications in accordance with Article 27g(2);
(Corresponds to Article 78(1), point (a), of Regulation (EU) No 650/2012 and AM 105 of the report in 2011/0059(CNS).)
Amendment 109 Proposal for a regulation Article 33 – paragraph 1 – point b b (new)
(bb) the procedures to contest the decision given on appeal referred to in Article 27h.
Amendment 110 Proposal for a regulation Article 33 – paragraph 2
2. Member States shall notify the Commission of any subsequent changes in this information.
2. Member States shall apprise the Commission of any subsequent changes to this information.
Amendment 111 Proposal for a regulation Article 33 – paragraph 3
3. The Commission shall make all information communicated in accordance with paragraphs 1 and 2 publicly available by appropriate means, in particular through the multilingual internet site of the European Judicial Network in civil and commercial matters.
3. The Commission shall make all information communicated in accordance with paragraphs 1 and 2 publicly available in a simple manner by appropriate means, in particular through the multilingual internet site of the European Judicial Network in civil and commercial matters.
The Member States shall ensure that the information on that multilingual website is also accessible through any official website they set up, in particular by providing a link to the Commission website.
(Corresponds to Article 78(3) of Regulation (EU) No 650/2012 and AM 108 of the report in 2011/0059(CNS).)
Amendment 112 Proposal for a regulation Article 33 – paragraph 3 a (new)
3a. The Commission shall introduce an information and training tool for the relevant court officials and legal practitioners by setting up an interactive portal in all official languages of the institutions of the Union, including a system for sharing professional expertise and practices.
(Corresponds to AM 109 of the report in 2011/0059(CNS).)
Amendment 113 Proposal for a regulation Article 33 a (new)
Article 33a
Establishment and subsequent amendment of the list containing the information referred to in Article 2(1a)
1. The Commission shall, on the basis of the notifications by the Member States, establish the list of the other authorities and legal professionals referred to in Article 2(1a).
2. The Member States shall notify the Commission of any subsequent changes to the information contained in that list. The Commission shall amend the list accordingly.
3. The Commission shall publish the list and any subsequent amendments in the Official Journal of the European Union.
4. The Commission shall make all information notified in accordance with paragraphs 1 and 2 publicly available through any other appropriate means, in particular through the European Judicial Network in civil and commercial matters.
(Corresponds to Article 79 of Regulation (EU) No 650/2012 and AM 110 of the report in 2011/0059(CNS).)
Amendment 114 Proposal for a regulation Article 33 b (new)
Article 33b
Establishment and subsequent amendment of the attestations and forms referred to in Articles 27c, 28, 29 and 30
The Commission shall adopt implementing acts establishing and/or subsequently amending the attestations and forms referred to in Articles 27c, 28, 29 and 30. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 33c(2).
(Corresponds to Article 80 of Regulation (EU) No 650/2012 and AM 111 of the report in 2011/0059(CNS).)
Amendment 115 Proposal for a regulation Article 33 c (new)
Article 33c
Committee procedure
1. The Commission shall be assisted by a committee. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.
2. Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.
(Corresponds to Article 81 of Regulation (EU) No 650/2012 and AM 112 of the report in 2011/0059(CNS).)
Amendment 116 Proposal for a regulation Article 34 – paragraph 1 – subparagraph 1 a (new)
The Commission shall investigate the following issues in its reports:
– the use made by registered partnerships of the opportunities to agree on the choice of law and court and its practical impact,
– the effectiveness of the advisory requirement in the choice of law,
– the use made of the possibility of lack of jurisdiction by the courts of those Member States which do not recognise the institution of registered partnership, and the practical impact of this, and
– the potential for further convergence of the rules laid down in this Regulation with those laid down in [the Regulation on jurisdiction, applicable law, recognition and enforcement of decisions in matters of matrimonial property regimes], with the objective of increasing equality.
Amendment 117 Proposal for a regulation Article 35 – paragraph 3
3. Chapter III shall apply only to partners who have registered their partnership.
3. Chapter III shall apply only to registered partners who, following the date of application of this Regulation, have
(a) entered into a registered partnership, or
(b) made a choice of law with respect to the law applicable to their property regime.
An agreement on the choice of law made prior to [date of application of this Regulation] shall likewise be valid if it meets the conditions set out in Chapter III or if it is valid under the law applicable in accordance with the relevant rules of private international law at the time when the agreement on the choice of law is concluded.
Where an agreement on the choice of law has been concluded prior to [date of application of this Regulation] in anticipation of the possibility of choosing the law provided for in this Regulation, but that agreement was not valid under the law applicable in accordance with the relevant rules of private international law at the time when the agreement on the choice of law was concluded because no possibility of making a choice of law for registered partnerships existed under the applicable law, that agreement shall be valid as from [date of application of this Regulation].
Matrimonial property regimes *
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European Parliament legislative resolution of 10 September 2013 on the proposal for a Council regulation on jurisdiction, applicable law and the recognition and enforcement of decisions in matters of matrimonial property regimes (COM(2011)0126 – C7-0093/2011 – 2011/0059(CNS))
– having regard to the Commission proposal to the Council (COM(2011)0126),
– having regard to Article 81(3) of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0093/2011),
– having regard to the reasoned opinion submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Italian Senate, 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 Legal Affairs and the opinions of the Committee on Civil Liberties, Justice and Home Affairs and the Committee on Women’s Rights and Gender Equality (A7-0253/2013),
1. Approves the Commission proposal as amended;
2. Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;
3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;
4. Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;
5. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Text proposed by the Commission
Amendment
Amendment 1 Proposal for a regulation Recital 10
(10) This Regulation covers issues in connection with matrimonial property regimes. It does not define 'marriage', which is defined by the national laws of the Member States.
(10) This Regulation covers issues in connection with matrimonial property regimes. It does not define 'marriage', which is defined by the national laws of the Member States. Rather, it adopts a neutral attitude towards that concept. This Regulation does not affect the definition of the concept of marriage in the national law of the Member States.
Amendment 2 Proposal for a regulation Recital 11
(11) The scope of this Regulation should extend to all civil matters in relation to matrimonial property regimes, both the daily management of marital property and the liquidation of the regime, in particular as a result of the couple’s separation or the death of one of the spouses.
(11) The scope of this Regulation should extend to all civil matters in relation to matrimonial property regimes, both the daily management of marital property and the liquidation of the regime, in particular as a result of the couple’s separation, ordivorce or the death of one of the spouses.
(Corresponds to recital 9 in Regulation (EU) No 650/2012.)
Amendment 3 Proposal for a regulation Recital 11 a (new)
(11a) This Regulation should not, however, apply to areas of civil law concerning matters other than matrimonial property regimes. For reasons of clarity, therefore, a number of questions which could be seen as having a link with matters of matrimonial property regimes should be explicitly excluded from the scope of this Regulation.
(Corresponds to recital 11 in Regulation (EU) No 650/2012.)
Amendment 4 Proposal for a regulation Recital 12
(12) As maintenance obligations between spouses are governed by Regulation (EC) No 4/2009 of 18 December 2008 on jurisdiction, applicable law, recognition and enforcement of decisions and cooperation in matters relating to maintenance obligations, they should be excluded from the scope of this Regulation, as should issues relating to the validity and effect of gifts covered by Regulation (EC) No 593/2008 of the European Parliament and Council of 17 June 2008 on the law applicable to contractual obligations (Rome I).
(12) Maintenance obligations between spouses, which are governed by Regulation (EC) No 4/2009 of 18 December 2008 on jurisdiction, applicable law, recognition and enforcement of decisions and cooperation in matters relating to maintenance obligations, should be excluded from the scope of this Regulation, as should issues relating to legal succession in the event of death covered by Regulation (EU) No 650/2012 of the European Parliament and of the Council of 4 July 2012 on jurisdiction, applicable law, recognition and enforcement of decisions and acceptance and enforcement of authentic instruments in matters of succession and on the creation of a European Certificate of Succession1.
______________
1 OJ L 201, 27.7.2012, p. 107.
Amendment 5 Proposal for a regulation Recital 13
(13) Issues relating to the nature of rights in rem that may exist under the national law of Member States, and those linked to the disclosure of such rights, should also be excluded from the scope of this Regulation, as they are from Regulation (EU) No ... [of the European Parliament and of the Council on jurisdiction, applicable law, recognition and enforcement of decisions and authentic instruments in matters of succession and the creation of a European Certificate of Succession. This means that the courts of the Member State in which property of one or both spouses is located may take measures under property law, regarding such things as the recording of a transfer of the property in the public register, where the law of that Member State so provides.
(13) This Regulation – like Regulation (EU) No 650/2012 – should not affect the limited number (‘numerus clausus’) of rights in rem known in the national law of some Member States.A Member State should not be required to recognise a right in rem relating to property located in that Member State if the right in rem in question is not known in its law.
(Corresponds in part to recital 15 in Regulation (EU) No 650/2012.)
Amendment 6 Proposal for a regulation Recital 13 a (new)
(13a) However, in order to allow the beneficiaries to enjoy in another Member State the rights which have been created or transferred to them, for example in the context of a dispute concerning a matrimonial property regime, this Regulation should provide for the adaptation of an unknown right in rem to the closest equivalent right in rem under the law of that other Member State. In the context of such an adaptation, account should be taken of the aims and the interests pursued by the specific right in rem and the effects attached to it. For the purposes of determining the closest equivalent national right in rem, the authorities or competent persons of the State whose law applies to the matrimonial property regime may be contacted for further information on the nature and the effects of the right. To that end, the existing networks in the area of judicial cooperation in civil and commercial matters could be used as well as any other available means facilitating the understanding of foreign law.
(Corresponds to recital 16 in Regulation (EU) No 650/2012.)
Amendment 7 Proposal for a regulation Recital 13 b (new)
(13b) The requirements for the recording in a register of a right in immovable or movable property should be excluded from the scope of this Regulation. It should therefore be the law of the Member State in which the register is kept (for immovable property, the lex rei sitae) which determines under what legal conditions and how the recording must be carried out and which authorities, such as land registers or notaries, are in charge of checking that all requirements are met and that the documentation presented or established is sufficient or contains the necessary information.
(Corresponds in part to recital 18 in Regulation (EU) No 650/2012.)
Amendment 8 Proposal for a regulation Recital 13 c (new)
(13c) The effects of the recording of a right in a register should also be excluded from the scope of this Regulation. It should therefore be the law of the Member State in which the register is kept which determines whether the recording is, for instance, declaratory or constitutive in effect. Thus where, for example, the acquisition of a right in immovable property requires a recording in a register under the law of the Member State in which the register is kept in order to ensure the erga omnes effect of registers or to protect legal transactions, the moment of such acquisition should be governed by the law of that Member State.
(Corresponds to recital 19 in Regulation (EU) No 650/2012.)
Amendment 9 Proposal for a regulation Recital 13 d (new)
(13d) The term ‘matrimonial property regime’, which determines the scope of this Regulation, should cover all rules concerning property relationships between spouses and in respect of third parties arising from their marriage and after its termination. These include not only the compulsory provisions of the applicable law but also any optional arrangements which the spouses may have agreed in accordance with the applicable law.
Amendment 10 Proposal for a regulation Recital 13 e (new)
(13e) Like Regulation (EU) No 650/2012, this Regulation should respect the different systems for dealing with property-regime issues applied in the Member States. For the purposes of this Regulation, the term ‘court’ should therefore be given a broad meaning so as to cover not only courts in the true sense of the word, exercising judicial functions, but also the notaries or registry offices in some Member States who or which, in certain matters of property regimes, exercise judicial functions like courts, and the notaries and legal professionals who, in some Member States, exercise judicial functions in a given property-regime matter by delegation of power by a court. All courts as defined in this Regulation should be bound by the rules of jurisdiction set out in this Regulation. Conversely, the term ‘court’ should not cover non-judicial authorities of a Member State empowered under national law to deal with property regimes, such as the notaries in most Member States where, as is usually the case, they are not exercising judicial functions.
(Corresponds to recital 20 in Regulation (EU) No 650/2012.)
Amendment 11 Proposal for a regulation Recital 14
(14) To reflect the increasing mobility of couples during their married life and facilitate the proper administration of justice, the rules on jurisdiction in this Regulation provide that matters of matrimonial property regimes, including liquidation of the regime as a result of divorce, legal separation or marriage annulment, are to be dealt with by the courts of the Member State having jurisdiction to deal with the divorce, separation or marriage annulment proceedings under Council Regulation (EC) No 2201/2003 concerning jurisdiction and the recognition and enforcement of judgments in matrimonial matters and the matters of parental responsibility, repealing Regulation (EC) No 1347/2000.
(14) To reflect the increasing mobility of couples during their married life and facilitate the proper administration of justice, the rules on jurisdiction in this Regulation provide that matters of matrimonial property regimes, including liquidation of the regime as a result of divorce, legal separation or marriage annulment, are to be dealt with by the courts of the Member State having jurisdiction to deal with the divorce, separation or marriage annulment proceedings under Council Regulation (EC) No 2201/2003 concerning jurisdiction and the recognition and enforcement of judgments in matrimonial matters and the matters of parental responsibility, repealing Regulation (EC) No 1347/2000, if the jurisdiction of the courts concerned has been expressly or in some other manner recognised by the spouses.
Amendment 12 Proposal for a regulation Recital 16
(16) Where matters of matrimonial property regimes are not linked to a divorce, separation or marriage annulment or to the death of a spouse, the spouses may decide to submit questions related to their matrimonial regime to the courts of the Member State of the law they chose as the law applicable to their matrimonial property regime. Such a decision is expressed by an agreement between the spouses which may be concluded at any moment, even during the proceedings.
(16) Where matters of matrimonial property regimes are not linked to a divorce, separation or marriage annulment or to the death of a spouse, the spouses may decide to submit questions related to their matrimonial regime to the courts of the Member State of the law they chose as the law applicable to their matrimonial property regime. This requires an agreement between the spouses which may be concluded, at the latest, until the matter is put before the court and subsequently as provided for by the lex fori.
Amendment 13 Proposal for a regulation Recital 17
(17) This Regulation must allow the territorial jurisdiction of a Member State's courts over applications concerning matrimonial property regimes to be determined in cases other than those of separation of the couple or death of a spouse, and must in particular have a forum necessitatis provision to prevent situations where justice is denied.
(17) This Regulation must protect the territorial jurisdiction of a Member State's courts over applications concerning matrimonial property regimes to be determined in cases other than those of separation of the couple or death of a spouse, in accordance with a set of criteria, listed in order of precedence, designed to ensure the existence of a close link between the spouses and the Member State whose courts have jurisdiction.
Amendment 14 Proposal for a regulation Recital 17 a (new)
(17a) In order to remedy, in particular, situations of denial of justice, this Regulation should provide a forum necessitatis allowing a court of a Member State, on an exceptional basis, to rule on a matrimonial property case which is closely connected with a third State. Such an exceptional basis may be deemed to exist when proceedings prove impossible in the third State in question, for example because of civil war, or when a beneficiary cannot reasonably be expected to initiate or conduct proceedings in that State. Jurisdiction based on forum necessitatis should, however, be exercised only if the matrimonial property case has a sufficient connection with the Member State of the court seised.
(Corresponds to recital 31 in Regulation (EU) No 650/2012.)
Amendment 15 Proposal for a regulation Recital 21
(21) Where no applicable law is chosen, and with a view to reconciling predictability and legal certainty with consideration of the life actually lived by the couple, this Regulation must introduce harmonised conflict-of-laws rules to establish the law applicable to all the spouses' property on the basis of a scale of connecting factors. The first common habitual residence of the spouses after marriage should constitute the first criterion, ahead of the law of the spouses' common nationality at the time of their marriage. If neither of these criteria apply, or failing a first common habitual residence in cases where the spouses have dual common nationalities at marriage, the third criterion should be the State with which the spouses have the closest links, taking into account all the circumstances, including the place where the marriage was celebrated, it being made clear that these links are to be considered as they were at the time the marriage was entered into.
(21) Where no applicable law is chosen, and with a view to reconciling predictability and legal certainty with consideration of the life actually lived by the couple, this Regulation must introduce harmonised conflict-of-laws rules to establish the law applicable to all the spouses' property on the basis of a scale of connecting factors. The common habitual residence of the spouses at the time of marriage or the first common habitual residence of the spouses after marriage should constitute the first criterion, ahead of the spouses' common nationality at the time of their marriage. If neither of those criteria applies, or failing a first common habitual residence in cases where the spouses have dual common nationalities at marriage, the third criterion should be the State with which the spouses have the closest links, taking into account all the circumstances, it being made clear that those links are to be considered as they were at the time the marriage was entered into.
Amendment 16 Proposal for a regulation Recital 22 a (new)
(22a) For the purposes of the application of this Regulation, i.e. where it refers to nationality as a criterion for the application of the law of a State, the question of how to deal with cases of plural nationality and whether a person is to be regarded as a national of a State should be left to national law, or where appropriate also to international agreements, in full observance of the general principles of the European Union.
Amendment 17 Proposal for a regulation Recital 24
(24) Given the importance of choosing the law applicable to the matrimonial property regime, the Regulation must contain some guarantees to ensure that spouses or prospective spouses are aware of the consequences of their choice. This choice should be made in the form prescribed for the marriage contract by the law of the State chosen or by that of the State where the instrument is drawn up, and at least be in writing and dated and signed by the couple. Any additional formal requirements imposed by the law of the State chosen or that of the State where the instrument is drawn up concerning the validity, disclosure or registration of such contracts should be complied with.
(24) Given the importance of choosing the law applicable to the matrimonial property regime, this Regulation must contain some guarantees to ensure that spouses or prospective spouses are aware of the consequences of their choice. The agreement establishing that choice should at least be in writing and dated and signed by the couple. The choice should be made in the form prescribed by the law applicable to the matrimonial property regime or the law of the State where the agreement has been concluded.
Amendment 18 Proposal for a regulation Recital 24 a (new)
(24a) To take account of certain rules of the Member States, in particular those for protection of the family home and for assigning rights of use in relations between the spouses, this Regulation should not prevent the application of overriding mandatory rules by the court before which a matter is brought, and should therefore allow a Member State to set aside the application of a foreign law in favour of its own. For this purpose ‘overriding mandatory rules’ should refer to imperative provisions, the upholding of which is regarded as crucial by a Member State for safeguarding its public interests, particularly its political, social or economic organisation. In order, for example, to protect the family home, the Member State where the home is located should be permitted to apply its own law, without prejudice to the transaction protection provisions applicable in the Member State concerned, whose precedence is guaranteed by Article 35.
Amendment 19 Proposal for a regulation Recital 27
(27) Since mutual recognition of decisions rendered in the Member States is one of the objectives of this Regulation, this Regulation must lay down rules on the recognition and enforcement of decisions on the basis of Regulation (EC) No 44/2001, adjusted where necessary to meet the specific requirements of matters covered by this Regulation.
(27) Since mutual recognition of decisions rendered in the Member States in matrimonial property cases is one of the objectives of this Regulation, this Regulation must lay down rules on the recognition, enforceability and enforcement of decisions on the basis of other legal instruments of the Union in the field of judicial cooperation in civil matters.
Amendment 20 Proposal for a regulation Recital 28
(28) In order to take into account the different methods of dealing with matters of matrimonial property regimes in the Member States, this Regulation must guarantee the recognition and enforcement of authentic instruments. Nevertheless, authentic instruments cannot be treated as court decisions with regard to their recognition. The recognition of authentic instruments means that they enjoy the same evidentiary effect with regard to their contents and the same effects as in their country of origin, and a presumption of validity which may be rebutted if they are contested.
(28) In order to take into account the different systems for dealing with matrimonial property cases in the Member States, this Regulation should guarantee the acceptance and enforceabilityin all Member States of authentic instruments in matrimonial property matters.
(Corresponds to recital 60 in Regulation (EU) No 650/2012.)
Amendment 21 Proposal for a regulation Recital 28 a (new)
(28a) In terms of the recognition, enforceability and enforcement of judicial decisions and of the acceptance and enforceability of authentic instruments and the enforceability of court settlements, this Regulation should therefore lay down rules on the basis of, in particular, Regulation (EU) No 650/2012.
Amendment 22 Proposal for a regulation Recital 29
(29) While the law applicable to matrimonial property regimes must govern the legal relationship between a spouse and a third party,the conditions for relying on that law should be regulated by the law of the Member State of habitual residence of the spouse or the third party, in the interests of the third party's protection. The law of that Member State may thus provide that the spouse may invoke the law of his or her matrimonial property regime against the third party only if the conditions of registration or disclosure laid down in that Member State have been complied with, unless the third party was aware of or ought to have been aware of the law applicable to the matrimonial property regime.
(29) The law applicable to matrimonial property regimes under this Regulation must govern the legal relationship between a spouse and a third party. However, in the interests of the third party's protection, neither of the spouses should be able to invoke that law in a legal relationship between one of the spouses and a third party if the spouse who has a legal relationship with the third party, and the third party, are habitually resident in the same State, which is not the State whose law is applicable to the matrimonial property. Exceptions should apply if the third party does not merit protection, in other words if he or she was aware of, or ought to have been aware of, the law applicable or if the requirements applicable to registration or disclosure in the State were complied with.
Amendment 23 Proposal for a regulation Recital 30 a (new)
(30a) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission with regard to the establishment and subsequent amendment of the attestations and forms pertaining to the declaration of enforceability of decisions, court settlements and authentic instruments. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers1.
_____________
1 OJ L 55, 28.2.2011, p. 13.
(Corresponds to recital 78 in Regulation (EU) No 650/2012.)
Amendment 24 Proposal for a regulation Recital 30 b (new)
(30b) The advisory procedure should be used for the adoption of implementing acts establishing and subsequently amending the attestations and forms provided for in this Regulation in accordance with the procedure laid down in Article 4 of Regulation (EU) No 182/2011.
(Corresponds to recital 79 in Regulation (EU) No 650/2012.)
Amendment 25 Proposal for a regulation Recital 32
(32) This Regulation respects fundamental rights and observes the principles recognised in the Charter of Fundamental Rights of the European Union, in particular Articles 7, 9, 17, 21 and 47 concerning, respectively, respect for private and family life, the right to marry and to found a family according to national laws, property rights, the prohibition of any form of discrimination and the right to an effective remedy and to a fair trial. The Member States' courts must apply this Regulation in a manner consistent with these rights and principles.
(32) This Regulation respects fundamental rights and observes the principles recognised in the Charter of Fundamental Rights of the European Union, in particular Articles 7, 9, 17, 20, 21, 23 and 47 concerning, respectively, respect for private and family life, the right to marry and to found a family according to national laws, property rights, equality before the law, the prohibition of any form of discrimination and the right to an effective remedy and to a fair trial. The Member States' courts must apply this Regulation in a manner consistent with those rights and principles.
(Corresponds in part to recital 81 in Regulation (EU) No 650/2012.)
Amendment 26 Proposal for a regulation Article 1 – paragraph 3 – point a
(a) the capacity of spouses,
(a) the general capacity of spouses,
Amendment 27 Proposal for a regulation Article 1 – paragraph 3 – point a a (new)
(aa) the existence, validity or recognition of a marriage,
Amendment 28 Proposal for a regulation Article 1 – paragraph 3 – point c
(c) gifts between spouses,
deleted
Amendment 29 Proposal for a regulation Article 1 – paragraph 3 – point d
(d) the succession rights of a surviving spouse,
(d) issues relating to succession due to death with reference to the surviving spouse,
Amendment 30 Proposal for a regulation Article 1 – paragraph 3 – point e
(e) companies set up between spouses,
(e) questions governed by the law of companies and other bodies, corporate or unincorporated,
(Corresponds to Article 1, point (h), of Regulation (EU) No 650/2012.)
Amendment 31 Proposal for a regulation Article 1 – paragraph 3 – point f
(f) the nature of rights in rem relating to a property and the disclosure of such rights.
(f) the nature of rights in rem,
(Corresponds to Article 1, point (k), of Regulation (EU) No 650/2012.)
Amendment 32 Proposal for a regulation Article 1 – paragraph 3 – point f a (new)
(fa) any recording in a register of rights in movable or immovable property, including the legal requirements for such recording, and the effects of recording or failing to record such rights in a register, and
(Corresponds to Article 1, point (l), of Regulation (EU) No 650/2012.)
Amendment 33 Proposal for a regulation Article 1 – paragraph 3 – point f b (new)
(fb) questions of entitlement to transfer or adjustment, in the case of a divorce, between spouses or former spouses, of rights to retirement or disability pensions accrued during marriage.
Amendment 34 Proposal for a regulation Article 2 – paragraph 1 – point a
(a) ‘matrimonial property regime’: a set of rules concerning the property relationships of spouses, between the spouses and in respect of third parties;
(a) ‘matrimonial property regime’: a set of rules applicable to the property relationships of spouses, between the spouses and in respect of third parties, as a result of marriage;
Amendment 35 Proposal for a regulation Article 2 – paragraph 1 – point b
(b) 'marriage contract': any agreement by which spouses organise their property relationships between themselves and in relation to third parties;
(b) 'marriage contract': any agreement by which spouses or future spouses organise their matrimonial property relationships;
Amendment 36 Proposal for a regulation Article 2 – paragraph 1 – point c – introductory part
(c) 'authentic instrument': an instrument which has been officially drawn up or registered as an authentic instrument in the Member State of origin and the authenticity of which:
(c) 'authentic instrument': an instrument in property matters which has been formally drawn up or registered as an authentic instrument in a Member State and the authenticity of which:
(Corresponds to Article 3(1), point (i), of Regulation (EU) No 650/2012.)
Amendment 37 Proposal for a regulation Article 2 – paragraph 1 – point d
(d) 'decision': any decision given in a matter of a matrimonial property regime by a court of a Member State, whatever the decision may be called, including the terms 'decree', 'judgment', 'order' or 'writ of execution', and the determination of costs or expenses by an officer of the court;
(d) 'decision': any decision given in a matter of a matrimonial property regime by a court of a Member State, whatever the decision may be called, and the determination of costs or expenses by an officer of the court;
(Corresponds to Article 3(1), point (g), of Regulation (EU) No 650/2012.)
Amendment 38 Proposal for a regulation Article 2 – paragraph 1 – point e
(e) 'Member State of origin': the Member State in which, as the case may be, the decision has been given, the marriage contract concluded, the authentic instrument drawn up, the court settlement approved or the instrument liquidating the common property or any other instrument produced by or before the judicial authority or authority of delegation or designation;
(e) 'Member State of origin': the Member State in which the decision has been given, the authentic instrument establishedor the court settlement approved or concluded;
(Corresponds to Article 3(1), point (e), of Regulation (EU) No 650/2012.)
Amendment 39 Proposal for a regulation Article 2 – paragraph 1 – point f
(f) 'Member State addressed': the Member State in which recognition and/or enforcement of the decision, marriage contract, authentic instrument, court settlement, instrument of liquidation of the common property or any other instrument produced by or before the judicial authority or authority of delegation or designation is requested;
(f) ‘Member State of enforcement’: the Member State in which the declaration of enforceability or enforcement of the decision, court settlement or authentic instrument is sought;
(Corresponds to Article 3(1), point (f), of Regulation (EU) No 650/2012.)
Amendment 40 Proposal for a regulation Article 2 – paragraph 1 – point g
(g) any competent judicial authority in the Member States which carries out a judicial function in matters of matrimonial property regimes, or any other non-judicial authority or person carrying out, by delegation or designation by a judicial authority of a Member State, the functions falling within the jurisdiction of the courts as provided for in this Regulation;
deleted
Amendment 41 Proposal for a regulation Article 2 – paragraph 1 a (new)
1a. For the purposes of this Regulation, the term ‘court’ means any judicial authority and all other authorities and legal professionals with competence in matters of matrimonial property regimes which exercise judicial functions or act pursuant to a delegation of power by a judicial authority or act under the control of a judicial authority, provided that such other authorities and legal professionals offer guarantees with regard to impartiality and the right of all parties to be heard and provided that their decisions under the law of the Member State in which they operate:
(a) may be made the subject of an appeal to or review by a judicial authority; and
(b) have a similar force and effect as a decision of a judicial authority on the same matter.
The Member States shall notify the Commission of the other authorities and legal professionals referred to in the first subparagraph in accordance with Article 37a.
(This provision corresponds to Article 3(2) of Regulation (EU) No 650/2012.)
Amendment 42 Proposal for a regulation Article -3 (new)
Article -3
Jurisdiction in matters of matrimonial property regimes within the Member States
This Regulation shall not affect domestic jurisdiction over matrimonial property cases in the Member States.
Amendment 43 Proposal for a regulation Article 3
The courts of a Member State seised byan applicationconcerning the succession of a spouse under Regulation (EC) ... [of the European Parliament and of the Council on jurisdiction, applicable law, recognition and enforcement of decisions and authentic instruments in matters of succession and the creation of a European Certificate of Succession] shall also have jurisdiction to rule on matters of the matrimonial property regime arising in connection with the application.
The courts of a Member State seised in matters of the succession of a spouse under Regulation (EU) No 650/2012 shall also have jurisdiction to rule on matters of the matrimonial property regime arising in connection with the succession case.
Amendment 44 Proposal for a regulation Article 4
The courts of a Member State called upon to rule on an application for divorce, judicial separation or marriage annulment under Regulation (EC) No 2201/2003, shall also have jurisdiction, where the spouses so agree, to rule on matters of the matrimonial property regime arising in connection with the application.
The courts of a Member State called upon to rule on an application for divorce, judicial separation or marriage annulment under Regulation (EC) No 2201/2003 shall also have jurisdiction to rule on matters of the matrimonial property regime arising in connection with the application, if the jurisdiction of the courts concerned has been recognised, expressly or otherwise in an unequivocal manner by the spouses.
Such an agreement may be concluded at any time, even during the proceedings. If it is concluded before the proceedings, it must be drawn up in writing and dated and signed by both parties.
Failing agreement between the spouses, jurisdiction is governed by Articles 5 et seq.
Failing recognition of the jurisdiction of the court referred to in paragraph 1, jurisdiction shall be governed by Article 5 et seq.
Amendment 45 Proposal for a regulation Article 4 a (new)
Article 4a
Choice-of-court agreement
1. The spouses may agree that the courts of the Member State whose law they have chosen as the law applicable to their matrimonial property regime in accordance with Article 16 are to have jurisdiction to rule on matters of their matrimonial property regime. Such jurisdiction shall be exclusive.
Without prejudice to the third subparagraph, a choice-of-court agreement may be concluded or amended at any time, but no later than when the case is brought before the court.
If the law of the forum so provides, the spouses may also choose the court after the case has been brought before the court. In that event, such choice shall be recorded in court in accordance with the law of the forum.
If the agreement is concluded before the proceedings, it must be drawn up in writing and dated and signed by the spouses. Any communication by electronic means which provides a durable record of the agreement shall be equivalent to ‘writing’.
2. The spouses may also agree that, if no court has been chosen, the courts of the Member State whose law is applicable pursuant to Article 17 are to have jurisdiction.
Amendment 46 Proposal for a regulation Article 4 b (new)
Article 4b
Jurisdiction based on the appearance of the defendant
1. Apart from jurisdiction derived from other provisions of this Regulation, a court of a Member State whose law has been chosen under Article 16, or whose law is applicable under Article 17, and before which a defendant enters an appearance shall have jurisdiction. This rule shall not apply where an appearance was entered to contest the jurisdiction, or where another court has jurisdiction by virtue of Article 3, Article 4 or Article 4a.
2. Before assuming jurisdiction under paragraph 1, the court shall ensure that the defendant is informed of his or her right to contest the jurisdiction and of the consequences of entering or not entering an appearance.
Amendment 47 Proposal for a regulation Article 5
(1) In cases other than those provided for in Articles 3 and 4 jurisdiction to rule on proceedings in a matter of the spouses' matrimonial property regime shall lie with the courts of the Member State:
Where no court has jurisdiction pursuant to Articles 3, 4 and 4a, jurisdiction to rule on proceedings in a matter of the spouses' matrimonial property regime shall lie with the courts of the Member State:
(a) of the spouses' common habitual residence, or failing that,
(a) in whose territory the spouses are habitually resident at the time when the court is seised, or failing that,
(b) of the last common habitual residence if one of them still resides there, or, failing that,
(b) in whose territory the spouses were last habitually resident, if one of them still resides there at the time when the court is seised, or, failing that,
(c) of the defendant's habitual residence, or failing that,
(c) in whose territory the defendant is habitually resident at the time when the court is seised, or failing that,
(d) of the nationality of both spouses or, in the case of the United Kingdom and Ireland, of their common 'domicile'.
(d) of the nationality of both spouses at the time when the court is seised or, in the case of the United Kingdom and Ireland, of their common 'domicile', or failing that,
(2) Both parties may also agree that the courts of the Member State whose law they have chosen as the law applicable to their matrimonial property regime in accordance with Articles 16 and 18 shall also have jurisdiction to rule on matters of their matrimonial property regime.
(da) of the nationality of the defendant or, in the case of the United Kingdom and Ireland, of his or her domicile.
Such an agreement may be concluded at any time, even during the proceedings. If it is concluded before the proceedings, it must be drawn up in writing and dated and signed by both parties.
(With regard to paragraph 2, see amendment to Article 4a (new); the text has been altered.)
Amendment 48 Proposal for a regulation Article 6
Where no court has jurisdiction according to Articles 3, 4 and 5, the courts of a Member State shall have jurisdiction in so far as property or properties of one or both spouses are located in the territory of that Member State, but in that event the court seised shall have jurisdiction to rule only in respect of the property or properties in question.
Where no court of a Member State has jurisdiction pursuant to Articles 3, 4, 4a and 5, the courts of a Member State shall have jurisdiction in so far as immovable property or registered assets of one or both spouses are located in the territory of that Member State; in that event the court seised shall have jurisdiction to rule only in respect of the immovable property or registered assets in question.
In such cases the courts of a Member State shall have jurisdiction to rule only on immovable property or registered assets located in that Member State.
Amendment 49 Proposal for a regulation Article 7
Where no court of a Member State has jurisdiction under Articles 3, 4, 5 and 6, the courts of a Member State may, exceptionallyand if the case has a sufficient connection with that Member State, rule on a matrimonial property regime case if proceedings would be impossible or cannot reasonably be brought or conducted in a third State.
Where no court of a Member State has jurisdiction pursuant to Articles 3, 4, 4a, 5 and 6, the courts of a Member State may, on an exceptional basis, rule on a matrimonial property regime case if proceedings cannot reasonably be brought or conducted, or would be impossible, in a third State with which the case is closely connected.
The case must have a sufficient connection with the Member State of the court seised.
(Corresponds to Article 11 of Regulation (EU) No 650/2012.)
Amendment 50 Proposal for a regulation Article 8
The court seised pursuant to Articles 3, 4, 5, 6 or 7 before which proceedings are pending shall also have jurisdiction to rule on a counterclaim if it falls within the scope of this Regulation.
The court seised pursuant to Articles 3, 4, 4a, 5, 6 or 7 before which proceedings are pending shall also have jurisdiction to rule on a counterclaim if it falls within the scope of this Regulation.
If the court has been seised pursuant to Article 6, its jurisdiction to rule on a counterclaim shall be limited to the immovable property or registered assets which form the subject-matter of the main proceedings.
Amendment 51 Proposal for a regulation Article 9
A court shall be deemed to be seised:
For the purposes of this Chapter, a court shall be deemed to be seised:
(a) on the date when the document instituting the proceedings or an equivalent document is lodged with the court, provided that the plaintiff has not subsequently failed to take the steps he or she was required to take to have service effected on the defendant, or
(a) on the date when the document instituting the proceedings or an equivalent document is lodged with the court, provided that the applicant has not subsequently failed to take the steps he or she was required to take to have service effected on the defendant,
(b) where the document has to be served before being lodged with the court, on the date on which it is formally drawn up or registered by the authority responsible for service, provided that the applicant has not subsequently failed to take the steps he or she was required to take to have the document lodged with the court.
(b) if the document has to be served before being lodged with the court, on the date on which it is formally drawn up or registered by the authority responsible for service, provided that the applicant has not subsequently failed to take the steps he or she was required to take to have the document lodged with the court, or
(ba) if the proceedings are opened of the court's own motion, at the time when the decision to open the proceedings is taken by the court, or, where such a decision is not required, at the time when the case is registered by the court.
(Corresponds to Article 14 of Regulation (EU) No 650/2012.)
Amendment 52 Proposal for a regulation Article 12 – paragraph 1
1. Where proceedings involving the same cause of action and between the same parties are brought before courts of different Member States, any court other than the court first seised shall of its own motion stay its proceedings until such time as the jurisdiction of the court first seised is established.
1. Where proceedings involving the same cause of action and between the spouses are brought before courts of different Member States, any court other than the court first seised shall of its own motion stay its proceedings until such time as the jurisdiction of the court first seised is established.
(Corresponds to Article 17 of Regulation (EU) No 650/2012.)
Amendment 54 Proposal for a regulation Article 13 – paragraph 2
2. Where these actions are pending at first instance, any court other than the court first seised may also, on the application of one of the parties, decline jurisdiction if the court first seised has jurisdiction over the actions in question and its law permits the consolidation thereof.
2. Where those actions are pending at first instance, any court other than the court first seised may also, on the application of one of the spouses, decline jurisdiction if the court first seised has jurisdiction over the actions in question and its law permits the consolidation thereof.
(Corresponds to Article 18 of Regulation (EU) No 650/2012.)
Amendment 55 Proposal for a regulation Article 13 a (new)
Article 13a
Provision of information to spouses
The competent authority shall be obliged to inform the spouse(s), within a reasonable time, of any matrimonial property regime proceedings which are initiated against them.
Amendment 56 Proposal for a regulation Article 14
Provisional, including protective, measures provided for by the law of a Member State may be requested from the courts of that State, even where, under this Regulation, the courts of another Member State have jurisdiction as to the substance of the matter.
Application may be made to the courts of a Member State for such provisional, including protective, measures as may be available under the law of that State, even if, under this Regulation, the courts of another Member State have jurisdiction as to the substance of the matter.
(Corresponds to Article 19 of Regulation (EU) No 650/2012.)
Amendment 57 Proposal for a regulation Article 15 – paragraph 1
The law applicable to a matrimonial property regime under Article 16, 17 and 18 shall apply to all the couple's property.
1. The law applicable to a matrimonial property regime under Articles 16 and 17 shall apply to all assets falling under that regime, regardless of their location.
Amendment 58 Proposal for a regulation Article 15 – paragraph 1 a (new)
1a. The law applicable to a matrimonial property regime shall determine, without prejudice to points (f) and (fa) of Article 1(3), inter alia:
(a) the division of the spouses’ property into different categories before and after the marriage;
(b) the transfer of property from one category to another;
(c) liability for the other spouse’s debts, where necessary;
(d) the spouses’ rights of disposal during the marriage;
(e) dissolution and liquidation of the matrimonial property regime and division of property in the event of dissolution of the marriage;
(f) the impact of the matrimonial property regime on a legal relationship between one of the spouses and a third party on the basis of Article 35;
(g) the material validity of a matrimonial property agreement.
Amendment 59 Proposal for a regulation Article 15 a (new)
Article 15a
Universal application
Any law specified by this Regulation shall be applied whether or not it is the law of a Member State.
(See amendment to Article 21; the text has been altered.)
Amendment 60 Proposal for a regulation Article 16
The spouses or future spouses may choose the law applicable to their matrimonial property regime, as long as it is one of the following laws:
1. The spouses or future spouses may agree to designate or to change the law applicable to their matrimonial property regime, as long as it is one of the following laws:
(a) the law of the State of the habitual common residence of the spouses or future spouses, or
(b) the law of the State of habitual residence of oneof the spouses at the time this choice is made, or
(a) the law of the State where the spouses or future spouses, or one of them, is/are habitually resident at the time whenthe agreement is concluded, or
(c) the law of the State of which one of the spouses or future spouses is a national at the time this choice is made.
(b) the law of a State of which one of the spouses or future spouses is a national at the time when the agreement is concluded.
2. Unless the spouses agree otherwise, a change of the law applicable to the matrimonial property regime made during the marriage shall have prospective effect only.
3. If the spouses choose to make that change of applicable law retroactive, its retroactive effect shall not affect the validity of previous transactions entered into under the law hitherto applicable or the rights of third parties deriving from the law previously applicable.
Amendment 61 Proposal for a regulation Article 17 – paragraph 1 – introductory part
1. If the spouses do not make a choice, the law applicable to the matrimonial property regime shall be:
1. If no choice-of-law agreementis made pursuant to Article 16, the law applicable to the matrimonial property regime shall be:
Amendment 62 Proposal for a regulation Article 17 – paragraph 1 – point a
(a) the law of the State of the spouses' first common habitual residence after their marriage or, failing that,
(a) the law of the State of the spouses’ common habitual residence at the time of marriage or of their first common habitual residence after their marriage or, failing that,
Amendment 63 Proposal for a regulation Article 17 – paragraph 1 – point c
(c) the law of the State with which the spouses jointly have the closest links, taking into account all the circumstances, in particular the place where the marriage was celebrated.
(c) the law of the State with which the spouses jointly have the closest links at the time of the marriage, taking into account all the circumstances, regardless of the place where the marriage was celebrated.
Amendment 64 Proposal for a regulation Article 18
Article 18
deleted
Change of applicable law
The spouses may, at any time during the marriage, make their matrimonial property regime subject to a law other than the one hitherto applicable. They may designate only one of the following laws:
(a) the law of the State of habitual residence of one of the spouses at the time this choice is made;
(b) the law of a State of which one of the spouses is a national at the time this choice is made.
Unless the spouses desire otherwise, a change of the law applicable to the matrimonial property regime made during the marriage shall be effective only in the future.
If the spouses choose to make this change of applicable law retrospective, the retrospective effect may not affect the validity of previous transactions entered into under the law applicable hitherto or the rights of third parties deriving from the law previously applicable.
Amendment 65 Proposal for a regulation Article 19
1. The choice of applicable law shall be made in the way specified for the marriage contract, either by the law of the State chosen or by the law of the State in which the document is drawn up.
1. The agreement on the choice of applicable law referred to in Article 16 shall be expressed in writing, dated and signed by both spouses. Any communication by electronic means which provides a durable record of the agreement shall be deemed equivalent to writing.
2. Notwithstanding paragraph 1, the choice must at least be made expressly in a document dated and signed by both spouses.
2. That agreement shall comply with the formal requirements of the law applicable to the matrimonial property regime or of the law of the State in which the agreement was concluded.
3. If the law of the Member State in which the spouses have their common habitual residence at the time of the choice referred to in paragraph 1 provides for additional formal requirements for the marriage contract, these requirements must be complied with.
3. However, if the law of the State in which both spouses have their habitual residence at the time of their agreement on the choice of applicable law provides for additional formal requirements for agreements of that type or, failing that, for the marriage contract, those requirements shall apply.
4. If the spouses are habitually resident in different States at the time of their agreement on the choice of the applicable law and the laws of those States provide for different formal requirements, the agreement shall be formally valid if it satisfies the requirements of either of those laws.
5. If only one of the spouses is habitually resident in a Member State at the time when the agreement is concluded and that State lays down additional formal requirements for agreements of that type, those requirements shall apply.
(Similar to Article 5(2) of Regulation (EU) No 650/2012.)
Amendment 66 Proposal for a regulation Article 20
Law applicable to the form of marriage contract
Formal requirements for a marriage contract
1. The form of the marriage contract shall be that prescribed by the law applicable to the matrimonial property regime or by the law of the State where the contract is drawn up.
The formal aspects of a marriage contract shall be governed mutatis mutandis by Article 19. Any additional formal requirements within the meaning of Article 19(3) shall for the purposes of this Article relate only to the marriage contract.
2. Notwithstanding paragraph 1, the marriage contract must at least be set out in a document dated and signed by both spouses.
3. If the law of the Member State in which the spouses have their common habitual residence at the time the marriage contract is concluded provides for additional formal requirements for that contract, these requirements must be complied with.
Amendment 67 Proposal for a regulation Article 20 a (new)
Article 20a
Adaptation of rights in rem
Where a person invokes a right in rem to which he or she is entitled under the law applicable to the matrimonial property regime and the law of the Member State in which the right is invoked does not know the right in rem in question, that right shall, if necessary and to the extent possible, be adapted to the closest equivalent right in rem under the law of that State, taking into account the aims and the interests pursued by the specific right in rem and the effects attached to it.
(Corresponds to Article 31 of Regulation (EU) No 650/2012.)
Amendment 68 Proposal for a regulation Article 21
Article 21
deleted
Universal nature of the conflict-of-law rule
Any law determined in accordance with the provisions of this Chapter shall apply even if it is not the law of a Member State.
Amendment 69 Proposal for a regulation Article 22
The provisions of this Regulation shall be without prejudice to the application ofimperativeprovisions the upholding of which is regarded as crucial by a Member State for safeguarding its public interests, such as its political, social or economic organisation, to such an extent that they are applicable to any situation falling within their scope, irrespective of the law otherwise applicable to the matrimonial property regime under this Regulation.
1. Overriding mandatory provisions are provisions the disregard for which would be manifestly incompatible with the public policy (ordre public) of the Member State concerned. The competent authorities should not interpret the public policy exception in a way that is contrary to the Charter of Fundamental rights of the European Union, and in particular Article 21 thereof, which prohibits all forms of discrimination.
2. This Regulation shall not restrict the application of the overriding mandatory provisions of the law of the forum, without prejudice to the transaction protection provisions applicable pursuant to Article 35.
Amendment 70 Proposal for a regulation Article 23
The application of a rule of the law determined by this Regulation may be refused only if such application is manifestly incompatible with the public policy of the forum.
The application of a rule of the law of any State determined by this Regulation may be refused only if such application is manifestly incompatible with the public policy of the forum.
(Corresponds to Article 35 of Regulation (EU) No 650/2012.)
Amendment 71 Proposal for a regulation Article 24
Where this Regulation provides for the application of the law of a State, it means the rules of substantive law in force in that State other than its rules of private international law.
Where this Regulation provides for the application of the law of a State, it refers to the rules of law in force in that State other than its rules of private international law.
Amendment 72 Proposal for a regulation Article 25
States with two or more legal systems — territorial conflicts of laws
States with more than one legal system – territorial conflicts of laws
1. Where the law specified by this Regulation is that of a State which comprises several territorial units each of which has its own rules of law in respect of matrimonial property regimes, the internal conflict-of-laws rules of that State shall determine the relevant territorial unit whose rules of law are to apply.
Where a State comprises several territorial units each of which has its own system of law or its own rules concerning matters governed by this Regulation:
1a. In the absence of such internal conflict-of-laws rules:
(a) any reference to the law of that State shall be construed, for the purposes of determining the law applicable under this Regulation, as a reference to the law in force in the relevant territorial unit;
(a) any reference to the law of the State referred to in paragraph 1 shall, for the purposes of determining the law applicable pursuant to provisions referring to the habitual residence of the spouses, be construed as referring to the law of the territorial unit in which the spouses have their habitual residence;
(b) any reference to habitual residence in thatState shall be construed as a reference to habitual residence in a territorial unit;
(b) any reference to the law of theStatereferred to in paragraph 1 shall, for the purposes of determining the law applicable pursuant to provisions referring to the nationality of the spouses, be construed as a reference to the law of the territorial unit with which the spouses have the closest connection;
(c) any reference to nationality shall refer to the territorial unit determined by the law of that State, or, in the absence of relevant rules, to the territorial unit chosen by the parties or, in absence of such a choice, to the territorial unit with which the spouse or spouses has or have the closest connection.
(c) any reference to the law of the State referred to in paragraph 1 shall, for the purposes of determining the law applicable pursuant to any other provisions referring to other elements as connecting factors, be construed as referring to the law of the territorial unit in which the relevant element is located.
(Corresponds to Article 36 of Regulation (EU) No 650/2012.)
Amendment 73 Proposal for a regulation Article 25 a (new)
Article 25a
States with more than one legal system – inter-personal conflicts of laws
In relation to a State which has two or more systems of law or sets of rules applicable to different categories of persons in respect of matrimonial property regimes, any reference to the law of such a State shall be construed as referring to the system of law or set of rules determined by the rules in force in that State. In the absence of such rules, the system of law or the set of rules with which the spouses have the closest connection shall apply.
Amendment 74 Proposal for a regulation Article 25 b (new)
Article 25b
Non-application of this Regulation to internal conflicts of laws
A Member State which comprises several territorial units each of which has its own rules of law in respect of matrimonial property regimes shall not be required to apply this Regulation to conflicts of laws arising between such units only.
(Corresponds to Article 38 of Regulation (EU) No 650/2012.)
Amendment 75 Proposal for a regulation Article 26 – paragraph 2
2. Any interested party who raises the recognition of a decision as the principal issue in a dispute may, in accordance with the procedures set out in Articles [38 to 56] of Regulation (EC) No 44/2001, apply for the decision to be recognised.
2. Any interested party who raises the recognition of a decision as the principal issue in a dispute may, in accordance with the procedures set out in Articles 31b to 31o, apply for that decision to be recognised.
(Corresponds to Article 39 of Regulation (EU) No 650/2012.)
Amendment 76 Proposal for a regulation Article 27 – point a
(a) such recognition is manifestly contrary to public policy in the Member State addressed;
(a) such recognition is manifestly contrary to public policy in the Member State in which recognition is sought;
(Corresponds to Article 40 of Regulation (EU) No 650/2012.)
Amendment 78 Proposal for a regulation Article 27 – point c
(c) it is irreconcilable with a decision given in a matter between the same parties in the Member State addressed;
(c) if it is irreconcilable with a decision given in proceedings between the same parties in the Member State in which recognition is sought;
(Corresponds to Article 40 of Regulation (EU) No 650/2012.)
Amendment 79 Proposal for a regulation Article 27 – point d
(d) it is irreconcilable with an earlier decision given in another Member State or in a third State involving the same cause of action and between the same parties, provided that the earlier decision fulfils the conditions necessary for its recognition in the Member State addressed.
(d) if it is irreconcilable with an earlier decision given in another Member State or in a third State in proceedings involving the same cause of action and between the same parties, provided that the earlier decision fulfils the conditions necessary for its recognition in the Member State in which recognition is sought.
(Corresponds to Article 40 of Regulation (EU) No 650/2012.)
Amendment 80 Proposal for a regulation Article 29
Under no circumstances may a foreign decision be reviewed as to its substance.
Under no circumstances may a decision given in a Member State be reviewed as to its substance.
(Corresponds to Article 41 of Regulation (EU) No 650/2012.)
Amendment 81 Proposal for a regulation Article 30
A court of a Member State in which recognition is sought of a decision given in another Member State may stay the proceedings if an ordinary appeal against the decision has been lodged.
A court of a Member State in which recognition is sought of a decision given in another Member State may stay the proceedings if an ordinary appeal against the decision has been lodged in the Member State of origin.
(Corresponds to Article 42 of Regulation (EU) No 650/2012.)
Amendment 82 Proposal for a regulation Article 31
Decisions given in a Member State where they are enforceable shall be enforced in theother Member States in accordance with Articles [38 to 56 and 58] of Regulation (EC) No 44/2001.
Decisions given in a Member State and enforceable in that State shall be enforceable in another Member Statewhen, on the application of any interested party, they have been declared enforceable there in accordance with the procedure laid down in Articles 31b to 31o.
(Corresponds to Article 43 of Regulation (EU) No 650/2012.)
Amendment 83 Proposal for a regulation Article 31 a (new)
Article 31a
Determination of domicile
To determine whether, for the purposes of the procedure provided for in Articles 31b to 31o, a party is domiciled in the Member State of enforcement, the court seised shall apply the internal law of that Member State.
(Corresponds to Article 44 of Regulation (EU) No 650/2012.)
Amendment 84 Proposal for a regulation Article 31 b (new)
Article 31b
Jurisdiction of local courts
1. The application for a declaration of enforceability shall be submitted to the court or competent authority of the Member State of enforcement communicated by that Member State to the Commission in accordance with Article 37.
2. The local jurisdiction shall be determined by reference to the place of domicile of the party against whom enforcement is sought, or to the place of enforcement.
(Corresponds to Article 45 of Regulation (EU) No 650/2012.)
Amendment 85 Proposal for a regulation Article 31 c (new)
Article 31c
Procedure
1. The application procedure shall be governed by the law of the Member State of enforcement.
2. The applicant shall not be required to have a postal address or an authorised representative in the Member State of enforcement.
3. The application shall be accompanied by the following documents:
(a) a copy of the decision which satisfies the conditions necessary to establish its authenticity;
(b) the attestation issued by the court or competent authority of the Member State of origin using the form established in accordance with the advisory procedure referred to in Article 37c(2), without prejudice to Article 31d.
(Corresponds to Article 46 of Regulation (EU) No 650/2012.)
Amendment 86 Proposal for a regulation Article 31 d (new)
Article 31d
Non-production of the attestation
1. If the attestation referred to in point (b) of Article 31c(3) is not produced, the court or competent authority may specify a time for its production or accept an equivalent document or, if it considers that it has sufficient information before it, dispense with its production.
2. If the court or competent authority so requires, a translation of the documents shall be produced. The translation shall be done by a person qualified to do translations in one of the Member States.
(Corresponds to Article 47 of Regulation (EU) No 650/2012.)
Amendment 87 Proposal for a regulation Article 31 e (new)
Article 31e
Declaration of enforceability
The decision shall be declared enforceable immediately on completion of the formalities in Article 31c without any review under Article 27. The party against whom enforcement is sought shall not at this stage of the proceedings be entitled to make any submissions on the application.
(Corresponds to Article 48 of Regulation (EU) No 650/2012.)
Amendment 88 Proposal for a regulation Article 31 f (new)
Article 31f
Notice of the decision on the application for a declaration of enforceability
1. The decision on the application for a declaration of enforceability shall forthwith be brought to the notice of the applicant in accordance with the procedure laid down by the law of the Member State of enforcement.
2. The declaration of enforceability shall be served on the party against whom enforcement is sought, accompanied by the decision, if not already served on that party.
(Corresponds to Article 49 of Regulation (EU) No 650/2012.)
Amendment 89 Proposal for a regulation Article 31 g (new)
Article 31g
Appeal against the decision on the application for a declaration of enforceability
1. The decision on the application for a declaration of enforceability may be appealed against by either party.
2. The appeal shall be lodged with the court communicated by the Member State concerned to the Commission in accordance with Article 37.
3. The appeal shall be dealt with in accordance with the rules governing procedure in contradictory matters.
4. If the party against whom enforcement is sought fails to appear before the appellate court in proceedings concerning an appeal brought by the applicant, Article 11 shall apply, even where the party against whom enforcement is sought is not domiciled in any of the Member States.
5. An appeal against the declaration of enforceability shall be lodged within 30 days of service thereof. If the party against whom enforcement is sought is domiciled in a Member State other than that in which the declaration of enforceability was given, the time for appealing shall be 60 days and shall run from the date of service, either on him or her in person or at his or her residence. No extension may be granted on account of distance.
(Corresponds to Article 50 of Regulation (EU) No 650/2012.)
Amendment 90 Proposal for a regulation Article 31 h (new)
Article 31h
Procedure to contest the decision given on appeal
The decision given on the appeal may be contested only by the procedure communicated by the Member State concerned to the Commission in accordance with Article 37.
(Corresponds to Article 51 of Regulation (EU) No 650/2012.)
Amendment 91 Proposal for a regulation Article 31 i (new)
Article 31i
Refusal or revocation of a declaration of enforceability
The court with which an appeal is lodged under Article 31g or Article 31h shall refuse or revoke a declaration of enforceability only on one of the grounds specified in Article 27. It shall give its decision without delay.
(Corresponds to Article 52 of Regulation (EU) No 650/2012.)
Amendment 92 Proposal for a regulation Article 31 j (new)
Article 31j
Staying of proceedings
The court with which an appeal is lodged under Article 31g or Article 31h shall, on the application of the party against whom enforcement is sought, stay the proceedings if the enforceability of the decision is suspended in the Member State of origin by reason of an appeal.
(Corresponds to Article 53 of Regulation (EU) No 650/2012.)
Amendment 93 Proposal for a regulation Article 31 k (new)
Article 31k
Provisional, including protective, measures
1. When a decision must be recognised in accordance with this Section, nothing shall prevent the applicant from availing himself or herself of provisional, including protective, measures in accordance with the law of the Member State of enforcement without a declaration of enforceability under Article 31e being required.
2. The declaration of enforceability shall carry with it by operation of law the power to proceed to any protective measures.
3. During the time specified for an appeal pursuant to Article 31g(5) against the declaration of enforceability and until any such appeal has been determined, no measures of enforcement may be taken other than protective measures against the property of the party against whom enforcement is sought.
(Corresponds to Article 54 of Regulation (EU) No 650/2012.)
Amendment 94 Proposal for a regulation Article 31 l (new)
Article 31l
Partial enforceability
1. Where a decision has been given in respect of several matters and the declaration of enforceability cannot be given for all of them, the court or competent authority shall give it for one or more of them.
2. An applicant may request a declaration of enforceability limited to parts of a decision.
(Corresponds to Article 55 of Regulation (EU) No 650/2012.)
Amendment 95 Proposal for a regulation Article 31 m (new)
Article 31m
Legal aid
An applicant who, in the Member State of origin, has benefited from complete or partial legal aid or exemption from costs or expenses, shall be entitled, in any proceedings for a declaration of enforceability, to benefit from the most favourable legal aid or the most extensive exemption from costs or expenses provided for by the law of the Member State of enforcement.
(Corresponds to Article 56 of Regulation (EU) No 650/2012.)
Amendment 96 Proposal for a regulation Article 31 n (new)
Article 31n
No security, bond or deposit
No security, bond or deposit, however described, shall be required of a party who in one Member State applies for recognition, enforceability or enforcement of a decision given in another Member State on the ground that he or she is a foreign national or that he or she is not domiciled or resident in the Member State of enforcement.
(Corresponds to Article 57 of Regulation (EU) No 650/2012.)
Amendment 97 Proposal for a regulation Article 31 o (new)
Article 31o
No charge, duty or fee
In proceedings for the issue of a declaration of enforceability, no charge, duty or fee calculated by reference to the value of the matter at issue may be levied in the Member State of enforcement.
(Corresponds to Article 58 of Regulation (EU) No 650/2012.)
Amendment 98 Proposal for a regulation Article 32
Recognition of authentic instruments
Acceptance of authentic instruments
1. Authentic instrumentsdrawn up in a Member State shall be recognised in the other Member States, unless their validity is disputed in accordance with the applicable law, and provided such recognition is not contrary to public policy in the Member State addressed.
1. An authentic instrumentestablished in a Member State shall have the same evidentiary effects in another Member State as it has in the Member State of origin, or the most comparable effects, provided thatthis is not manifestly contrary to the public policy (ordre public) of the Member State concerned.
A person wishing to use an authentic instrument in another Member State may ask the authority establishing the authentic instrument in the Member State of origin to fill in the form established in accordance with the advisory procedure referred to in Article 37c(2) describing the evidentiary effects which the authentic instrument produces in the Member State of origin.
1a. Any challenge relating to the authenticity of an authentic instrument shall be made before the courts of the Member State of origin and shall be decided upon under the law of that State. The authentic instrument challenged shall not produce any evidentiary effect in another Member State as long as the challenge is pending before the competent court.
1b. Any challenge relating to the legal acts or legal relationships recorded in an authentic instrument shall be made before the courts having jurisdiction under this Regulation and shall be decided upon under the law applicable pursuant to Chapter III or the law referred to in Article 36. The authentic instrument challenged shall not produce any evidentiary effect in a Member State other than the Member State of origin as regards the matter being challenged as long as the challenge is pending before the competent court.
1c. If the outcome of proceedings in a court of a Member State depends on the determination of an incidental question relating to the legal acts or legal relationships recorded in an authentic instrument concerning a property regime, that court shall have jurisdiction over that question.
2. The recognition of authentic instruments confers on them evidentiary effect with regard to their contents and a presumption of validity.
(Corresponds to Article 59 of Regulation (EU) No 650/2012.)
Amendment 99 Proposal for a regulation Article 33
1. Authentic instrumentsdrawn up and enforceable in one Member State shall, on request, be declared enforceable in another Member State following the procedure set out in Articles [38 to 57] of Regulation (EC) No 44/2001.
1. An authentic instrumentwhich is enforceable in the Member State of origin shall be declared enforceable in another Member State on the application of any interested partyin accordance with the procedure provided for in Articles 31b to 31o.
1a. For the purposes of point (b) of Article 31c(3), the authority which established the authentic instrument shall, on the application of any interested party, issue an attestation using the form established in accordance with the advisory procedure referred to in Article 37c(2).
2. The court with which an appeal is lodged under Articles [43 and 44] of Regulation (EC) No 44/2001may refuse or revoke a declaration of enforceability only if enforcement of the instrument is manifestly contrary to public policy in the Member State addressed.
2. The court with which an appeal is lodged under Article 31g or Article 31h shall refuse or revoke a declaration of enforceability only if enforcement of the authentic instrument is manifestly contrary to the public policy (ordre public)of the Member State of enforcement.
(Corresponds to Article 60 of Regulation (EU) No 650/2012.)
Amendment 100 Proposal for a regulation Article 34
Recognition and enforceability of court settlements
Enforceability of court settlements
Court settlements that are enforceable in the Member State of origin shall be recognised and declared enforceable in another Member State at the request of any interested party under the same conditions as authentic instruments. The court with which an appeal is lodged under Article [42 or 44] of Regulation (EC) No 44/2001 may refuse or revoke a declaration of enforceability only if enforcement of the court settlement is manifestly contrary to public policy in the Member State addressed.
1. Court settlements which are enforceable in the Member State of origin shall be declared enforceable in another Member State on the application of any interested party in accordance with the procedure provided for in Articles 31b to 31o.
1a. For the purposes of point (b) of Article 31c(3), the court which approved the settlement or before which it was concluded shall, on the application of any interested party, issue an attestation using the form established in accordance with the advisory procedure referred to in Article 37c(2).
1b. The court with which an appeal is lodged under Article31g or 31h shall refuse or revoke a declaration of enforceability only if enforcement of the court settlement is manifestly contrary to the public policy (ordre public) of the Member State of enforcement.
(Corresponds to Article 61 of Regulation (EU) No 650/2012.)
Amendment 101 Proposal for a regulation Article 35 – title
Effects in respect of third parties
Protection of third parties
Amendment 102 Proposal for a regulation Article 35 – paragraph 2
2. However, the law of a Member State may provide that the law applicable to the matrimonial property regime may not be relied on bya spouse in dealings with a third party if one or other has their habitual residence in the territory ofthat Member State and the conditions of disclosure or registration provided for in the law of that State are not satisfied, unless the third party was aware of or ought to have been aware of the law applicable to the matrimonial property regime.
2. However, in a legal relationship between a spouse and a third party, neitherof the spouses may rely on the law applicable to the matrimonial property regime if the spouse in a legal relationship with the third party and the third party have their habitual residence in the same State, which is notthe State whose law is applicable to the matrimonial property regime. In such cases, the law of the Member State of the habitual residence of that spouse and the third party shall apply to the effects on the third party of the matrimonial property regime.
Amendment 103 Proposal for a regulation Article 35 – paragraph 3
3. The law of the Member State in which immovable property is located may provide for a similar rule to that laid down in paragraph 2 in respect of the legal relationship between a spouse and a third party in respect of that property.
3. Paragraph 2 shall not apply if:
(a) the third party was aware, or ought to have been aware, of the legal order applicable to the matrimonial property regime, or
(b) the requirements concerning registration or disclosure of the matrimonial property regime in accordance with the law of the State of the habitual residence of the third party and the spouse dealing with the third party were fulfilled, or
(c) in dealings concerning immovable property, the requirements concerning registration or disclosure of the matrimonial property regime in respect of the immovable property in accordance with the law of the State of the location of the immovable property were fulfilled.
Amendment 104 Proposal for a regulation Article -36 (new)
Article -36
Habitual residence
1. For the purposes of this Regulation, the habitual residence of companies and other bodies, corporate or unincorporated, shall be the place of their central administration.
The habitual residence of a natural person acting in the course of his or her business activity shall be his or her principal place of business.
2. Where the legal relationship is concluded in the course of the operations of a branch, agency or any other establishment, or if, under the contract, performance is the responsibility of such branch, agency or establishment, the place where the branch, agency or any other establishment is located shall be treated as the place of habitual residence.
3. For the purposes of determining the habitual residence, the relevant point in time shall be the time of the conclusion of the legal relationship.
Amendment 105 Proposal for a regulation Article 37 – paragraph 1 – point b a (new)
(ba) the names and contact details of the courts and authorities with competence to deal with applications for a declaration of enforceability in accordance with Article 31b(1) and with appeals against decisions on such applications in accordance with Article 31g(2);
(Corresponds to Article 78(1), point (a), of Regulation (EU) No 650/2012.)
Amendment 106 Proposal for a regulation Article 37 – paragraph 1 – point b b (new)
(bb) the procedures to contest the decision given on appeal referred to in Article 31h;
Amendment 108 Proposal for a regulation Article 37 – paragraph 3
3. The Commission shall make all information communicated in accordance with paragraphs 1 and 2 publicly available by appropriate means, in particular through the multilingual internet site of the European Judicial Network in civil and commercial matters.
3. The Commission shall make all information communicated in accordance with paragraphs 1 and 2 publicly available in a simple manner by appropriate means, in particular, through the multilingual internet site of the European Judicial Network in civil and commercial matters.
The Member States shall ensure that the information on that multilingual website is also accessible through any official website they set up, in particular by providing a link to the Commission website.
(Corresponds to Article 78(3) of Regulation (EU) No 650/2012.)
Amendment 109 Proposal for a regulation Article 37 – paragraph 3 a (new)
3a. The Commission shall introduce an information and training tool for the relevant court officials and legal practitioners by setting up an interactive portal in all official languages of the institutions of the Union, including a system for sharing professional expertise and practices.
Amendment 110 Proposal for a regulation Article 37 a (new)
Article 37a
Establishment and subsequent amendment of the list containing the information referred to in Article 2(1a)
1. The Commission shall, on the basis of the notifications by the Member States, establish the list of the other authorities and legal professionals referred to in Article 2(1a).
2. The Member States shall notify the Commission of any subsequent changes to the information contained in that list. The Commission shall amend the list accordingly.
3. The Commission shall publish the list and any subsequent amendments in the Official Journal of the European Union.
4. The Commission shall make all information notified in accordance with paragraphs 1 and 2 publicly available through any other appropriate means, in particular through the European Judicial Network in civil and commercial matters.
(Corresponds to Article 79 of Regulation (EU) No 650/2012.)
Amendment 111 Proposal for a regulation Article 37 b (new)
Article 37b
Establishment and subsequent amendment of the attestations and forms referred to in Articles 31c, 32, 33 and 34
The Commission shall adopt implementing acts establishing and subsequently amending the attestations and forms referred to in Articles 31c, 32, 33 and 34. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 37c(2).
(Corresponds to Article 80 of Regulation (EU) No 650/2012.)
Amendment 112 Proposal for a regulation Article 37 c (new)
Article 37c
Committee procedure
1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.
2. Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.
(Corresponds to Article 81 of Regulation (EU) No 650/2012.)
Amendment 113 Proposal for a regulation Article 39 – paragraph 3
3. Chapter III shall apply only to spouses who marry or who specify the law applicable to the matrimonial property regime after the date of application of this Regulation.
3. Chapter III shall apply only to spouses who after the date of application of this Regulation:
(a) marry, or
(b) specify the law applicable to the matrimonial property regime.
An agreement on the choice of applicable law concluded before [the time of application of this Regulation] shall likewise be valid if it meets the conditions laid down in Chapter III or if it is valid in application of the rules of private international law in force at the time when the agreement on the choice of law is concluded.
European transport-technology strategy for Europe's future sustainable mobility
295k
30k
European Parliament resolution of 10 September 2013 on promoting a European transport-technology strategy for Europe’s future sustainable mobility (2012/2298(INI))
– having regard to the Commission communication entitled ‘Research and innovation for Europe’s future mobility – Developing a European transport-technology strategy’ (COM(2012)0501),
– having regard to the Commission communication entitled ‘Horizon 2020 – The Framework Programme for Research and Innovation’ (COM(2011)0808),
– having regard to the 2011 Commission White Paper entitled ‘Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system’ (COM(2011)0144),
– having regard to the Commission communication entitled ‘Europe 2020 – A strategy for smart, sustainable and inclusive growth’ (COM(2010)2020),
– having regard to its resolution of 27 September 2011 on European road safety 2011-2020(1),
– having regard to Rule 48 of its Rules of Procedure,
– having regard to the report of the Committee on Transport and Tourism and the opinion of the Committee on Regional Development (A7-0241/2013),
A. whereas the Commission has identified the shortcomings of Europe’s transport innovation system;
B. whereas investment in research and innovation in the transport sector is simultaneously an investment in the economy and in job creation, and can therefore have a three-pronged effect;
C. whereas innovation is essential in order to create a smarter, safer and more intelligent transport system for the public, meet the environmental challenges facing the transport sector and achieve a low-carbon economy;
D. whereas the Europe 2020 strategy’s climate change and energy targets are closely linked to transport innovation: 20 % fewer greenhouse gas emissions than in 1990, 20 % of energy from renewables and a 20 % increase in energy efficiency, as well as the target of 50 % fewer deaths in road accidents than in 2001;
E. whereas there will need to be a real change in users’ attitudes, and in the standards they demand, if a large number of businesses and service providers are to be persuaded to shift their paradigms and to exploit the innovation opportunities offered by the creative convergence and out-of-the-box thinking described in point 5.3 of the Commission communication COM(2012)0501;
F. whereas the initiatives set out in the White Paper on transport are welcomed, particularly those mentioned in section 3.2 (entitled ‘Innovating for the future – technology and behaviour’), along with initiatives 7 (‘Multimodal transport of goods: e-freight’) and 22 (‘Seamless door-to-door mobility’);
G. whereas Europe’s strategy must ensure that a balance is struck between efforts to reduce the environmental imprint of transport and efforts to ensure freedom of movement in the European Union in order to achieve a single European transport area that is intermodal, interconnected, integrated and effective in its use of resources;
H. whereas in 2012 more than 31 000 people were still killed and more than 1 500 000 injured – in some cases seriously – in road accidents in the European Union;
I. whereas technologies that will help attain the objectives of the ‘European transport safety area’ are already available but have not yet been placed on the market;
General principles
1. Emphasises that a European transport-technology strategy for Europe’s future sustainable mobility should first and foremost promote quality of service, the convenience of passengers and businesses, and sustainable mobility, and should be based on the Union’s targets and legislation regarding the reduction of energy consumption, traffic noise, air pollutants, raw materials and greenhouse gas emissions up to 2020, 2030 and 2050, as well as improving health and quality of life, increasing the quality of services, providing increasingly customised solutions geared ever more closely to users’ needs, and enhancing safety and security;
2. Calls on the Commission and Council, in view of the importance of research and innovation (R&I) to the whole European economy, to recognise the importance of the Horizon 2020 initiative and to finance it adequately;
3. Confirms the Commission’s objective of better aligning transport R&I with European transport policy goals and roadmaps for each field, but believes that the approach proposed in the Commission’s communication needs to be adjusted according to the priorities defined hereinafter;
4. Believes that European strategy in the field of transport technologies should cover all regions of the EU in order to ensure the efficient circulation of people and goods, and hence the creation of a genuine European single market;
5. Believes that more efficient, coherent and targeted use of R&I in the setting and implementation of transport policy is key to being able to respond to new realities, break away from conventional thinking and focus on pioneering ideas, and thereby be able to provide users with innovative transport solutions that meet the needs, and fulfil the requirements, of availability, profitability, credibility, quality and continuity;
6. Encourages the Commission to create a framework favourable to R&I by creating fair, efficient and innovative pricing systems for all mobility and transport modes, particularly through the internalisation of external costs, taking into account the ‘polluter pays’ and ‘user pays’ principles;
7. Points to the usefulness of the Commission’s proposed Transport Research and Innovation Monitoring and Information System (TRIMIS) and maintains that the user’s perspective be incorporated into it, as it would offers an ideal means of detecting the barriers to innovation created by force of habit, of identifying opportunities and of encouraging the spread of new service possibilities to spur and promote changes in social attitudes to sustainable transport;
8. Stresses that technology lock-in is liable to prevent the full potential of transport innovation from being reached and can hamper the development of new innovative ideas; considers, therefore, that Union policies should be technologically neutral with regard to alternative technologies for transport (‘technology neutrality’), with priorities and funding being decided on the basis of results over the entire life-cycle of technologies used in specific fields of transport, and that harmonisation efforts must not be an obstacle to the development of innovative or alternative solutions in the field of transport, the diversity of the energy mix and deployment of smart communication technologies;
9. Emphasises that in order to help businesses and public bodies absorb new solutions and innovative technologies, more efficiency is needed in the innovation chain, and more investments are needed in measures such as economic incentives to overcome barriers to deployment and market uptake (‘full-cycle commitments’); encourages, therefore, the Commission to act on its idea that, in order to release the full innovative potential of the transport sector and support innovative undertakings, subsidies should also be used to help launch new solutions on the market, demonstrate them and implement them fully, and that appropriate management and financing tools can guarantee the swift implementation of research results;
10. Believes that all European regions, and their respective labour pools, should take advantage of such a strategy, and stresses the need to take account of regional specificities and potential, especially when developing cleaner transport modes; calls on the authorities at subsidiary levels to create, alongside stakeholders, innovation partnerships in the field of sustainable mobility;
11. Calls for stronger support for the R&I activities of small and medium-sized enterprises (SMEs), notably through easier access to EU funds and the reduction of administrative burdens, and highlights the importance of creating and maintaining employment and sustainable growth through R&I;
12. Maintains that investments under the EU Structural Funds and investment funds create great opportunities in European regions to develop smart specialisation in the area of sustainable mobility;
13. Encourages national and regional authorities to devise research and development strategies that are based on the concept of smart specialisation, with a view to ensuring a more efficient take–up of structural funding and to enhancing synergies between private and public sector investment;
14. Recalls, in this connection, that a strategy for innovative technology needs to be conceived on the basis of the characteristics and distinguishing features of the territories concerned, which means that a one-size-fits-all approach will not suffice; considers, for instance, that regions affected by specific territorial constraints, such as islands and mountainous, outermost and sparsely populated regions, have specific types of economic and other potential which, to be realised, call for appropriate and innovative mobility solutions; points out, in this context, the need to allocate adequate resources for sustainable transport infrastructure;
15. Stresses the need for greater simplification of the administrative procedures for R&I funding at European, national, regional, local and cross-border levels, in order to establish a clear and transparent legal framework;
16. Stresses that efforts to reduce the number of people killed or injured on the roads must be unremitting; urges the Commission to consider and implement those proposals for improving road safety that Parliament has adopted by a large majority;
17. Considers that a change in transport technology is right and important; stresses, however, that this change must be brought about not through prohibitions but through incentives to use new low-resource technologies;
18. Stresses that there must be no prohibitions against thinking about innovative new transport solutions or about the use of tried and tested procedures in new combinations;
General measures
19. Believes that R&I in the area of sustainable mobility should be based on the principle of integration, in particular through the abolition of trans-border missing links (interconnections), increased compatibility between and within the systems (interoperability) as well as through the objectives of achieving a shift towards the combination of the most appropriate and sustainable transport mode for a given route (inter- and co-modality);
20. Recalls the need for the EU to develop a genuine common transport policy, ensuring the relevance of transport within and between European regions and its coherence across local, regional, national and European levels; calls on the Member States and regions to ensure that the mix of models ensures a greater focus on genuinely sustainable mobility;
21. Stresses that this strategy must be based on an integrative model in which interregional connections and cross-border missing links are accorded the highest importance, including in geographically fragmented regions, and innovative solutions for multimodal transport can reduce regional disparities, stimulate labour mobility and enhance territorial cohesion; is mindful of the fact that there are currently considerable differences between regions in the field of transport networks, and draws attention to the need for investment in sustainable transport technologies and solutions in regions with specific disadvantages, also taking into account the potential of the Connecting Europe Facility;
22. Stresses that R&I should also focus on the development of sustainable infrastructure elements in support of a shift to using renewable primary products such as wood or compound material as railway infrastructure components (e.g. poles for catenary systems or signalisation, building material for platform or bridges); points out that this also includes R&I activities aimed at developing a substance for impregnating wooden sleepers that can serve as an alternative to creosote, the use of which will, under EU legislation, be abolished in 2018;
23. Emphasises that new approaches to mobility cannot be imposed and that, in order to promote more sustainable behaviour, there is a need for stronger research efforts in to the fields of eco-social knowledge and urban and spatial planning, and in technologies in the fields of mobility demand and behavioural change aimed at better control of transport flows, through, inter alia, innovative mobility management instruments, seamless door-to-door mobility chains that answer to users’ requirements, ecological and intelligent driving systems, and the use of real-time information and communication technologies;
24. Considers it essential for local and regional authorities to be involved in European innovation policy governance as it applies to transport and mobility; points out that such public authorities can bring their experience and expertise to bear both in integrating technologies, infrastructure, vehicles and passengers and in fostering new social habits where mobility is concerned; notes that local and regional authorities can identify, and are tasked to manage, the most acute mobility problems, that they are constantly testing and inaugurating good practices and innovative ideas, and that, given the variety of situations with which they have to deal, they are especially familiar with innovation;
25. Underlines the need for research on fair intra- and intermodal competition in the transport sector, and on the barriers created by vested interests linked to current business models, including, in particular, research on the technological tools needed to improve the consistent and effective enforcement of, and controls on, the rules on cabotage, the social provisions in road transport and the working conditions of persons employed in the sector;
26. Emphasises that innovative solutions to reduce noise from all transport modes, in particular at the source, are urgently needed in order to protect the health and quality of life of EU citizens and ensure acceptance among the population; recalls emphatically, in this context, its resolution on a Single European Transport Area, which called for the reduction by 2020 of noise and vibrations from, and energy consumption of, rail vehicles by 20 % relative to the reference values for 2010, and stresses once again that noise emissions should, from the outset, play a prominent part in the development of new technologies, strategies and infrastructure in the field of transport;
27. Is convinced that innovative technologies addressing the interaction between infrastructure and vehicles can play a significant role in reducing accidents, noise and vibrations, energy consumption, gas emissions and climate impact;
28. Confirms that efforts to achieve cleaner power for transport and mobility technologies should be linked to more efficient concepts and to better vehicle design; underlines the potential for energy savings through the use of innovative ideas, such as energy harvesting measures that take advantage of the opportunities offered by renewables and the use of alternative fuels;
29. Stresses the need not only to think about building a new transport infrastructure but, in research and development strategies, explicitly to take into account the aspects of repair, maintenance and upgrading (e.g. by equipping it with components for intelligent traffic management and ‘car to infrastructure’ technology);
30. Calls on the Member States and the Commission to invest in intelligent transport system (ITS) research and see to it that it is carried out, thereby helping to reduce traffic congestion, increase European transport eco-efficiency and improve safety standards;
31. Calls on the Commission to consider the harmonisation of containers and other transport receptacles, and the dimensions of vehicles in all modes of transport, in order to promote the objective of interoperability and intermodality;
32. Calls on the Commission to provide Member States with a manual of best practice for compliance with the limit values laid down in the Air Quality Directive;
Specific measures
33. Acknowledges the importance of R&I in the area of individual mobility and stresses that the behaviour of transport users is decisive; calls for the creation of incentives to choose sustainable, physically active, safe and healthy means of transport and mobility, in order to develop innovative approaches that promote environmentally friendly public transport, walking and cycling, taking into account the needs and specificities of urban, peri-urban, interurban and rural areas; considers it important to improve interoperability between transport services, and believes that approval authorities will need to be particularly alert to, and deal promptly with, such technical or administrative problems as might arise, the object being to open up the market to new transport options matching the above characteristics;
34. Underlines the need for the EU institutions to set examples of good practice within their own mobility management services and to manage the necessary effort and its fruits in a transparent way, making this their hallmark;
35. Stresses the need to promote successful practices in the field of sustainable transport and to step up cooperation and exchange of good practices between regions with similar development potentials; recommends that local authorities build on examples of good practice by developing sustainable urban mobility plans in close consultation with civil society;
36. Believes that European satellite navigation systems such as Galileo should be a major pillar for developing intelligent and efficient transport in Europe;
37. Supports R&I that can contribute to a shift from vehicle ownership towards unconventional user behaviour and new forms of transport-related services, such as car- and bike-sharing; encourages the Commission to intensify its promotion of collective forms of individual mobility and of individualised public and collective transport systems;
38. Calls for research to extend to the tax and administrative sphere in order to pave the way for creative incentives in terms of taxes, fees and public tariffs aimed both at private individuals and at manufacturers or providers of products, services, and/or content, with a view to encouraging cycling and walking, when suitable in combination with public transport and other forms of sustainable mobility;
39. Highlights once again the need to improve and promote multimodal transport through integrated and electronic information and ticketing schemes, based on open-data solutions; points out that research and innovation in this field should particularly be geared to freedom from barriers, interoperability, affordability, price transparency, user-friendliness and efficiency;
40. Stresses the need to develop innovative long-lasting infrastructure solutions – including greater development of information, payment and reservation systems – that particularly take into account barrier-free accessibility for all passengers, and specifically for disabled people and persons with reduced mobility (PRMs) such as users with wheelchairs, buggies, bicycles or heavy luggage;
41. Advocates making data on timetables and delays in public transport freely available, allowing third parties to develop telematics applications that can offer further convenience to passenger, such as real-time information on how to reach a specific destination using different modes of transport, or a comparison of the ecological footprints of different modes of transport when travelling to a specific destination;
42. Stresses that, when it comes to developing innovation for transport and mobility in urban and residential areas, focus should be placed on health and quality of life, including a fair share of space for all, reduced noise and cleaner air;
43. Reminds the Commission of the urgent need to improve safety for all road users, in particular the most vulnerable ones, such as children, elderly people, pedestrians, cyclists and people with disabilities or reduced mobility; endorses R&I projects that combine technological solutions with intelligent drivers and their behavioural approaches;
44. Believes that in order to ease traffic congestion in urban areas and heavily built–up regions, it is important not only to increase the efficiency of existing means of transport but also, through technological progress, to pinpoint alternative transport solutions and promote their use;
45. Encourages the Commission strongly to promote innovation in the field of zero-emission ships, in particular ferries, cruise liners and maritime ships, based on the use of renewable energies from wind, solar and wave power, and linked with fuel-cell technologies;
46. Calls on the Commission to focus research efforts on further reducing the health and climate impact of emissions from all modes of transport;
47. Considers that a coherent and efficient European transport-technology strategy must be in line with the EU 2020 Strategy (COM(2010)2020) and the 1990 reduction targets, as well as being in full compliance with the 2011 White Paper on Transport, ‘Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system’ (COM(2011)0144), in terms of territorial cohesion and balanced development; believes that it should permit reductions in energy consumption, traffic noise, traffic needs, air pollutants and greenhouse gas emissions; maintains that if the EU is to achieve those ends it will need to set firm targets for 2020, 2030 and 2050;
48. Stresses the need to reinforce R&I in the field of inland navigation, namely in order to develop clean vessels and technologies adapted to low-draught navigation such as River Adapted Ships for Sustainable Inland Navigation (RASSIN), which would allow savings to be made in inland waterway infrastructure;
49. Welcomes the Commission’s proposal for the establishment of a Transport Research and Innovation Monitoring and Information System (TRIMIS); underlines the importance of providing regular, free, easily accessible and reliable information to regional policymakers; regrets the fact that to date it is still very difficult to access information concerning EU funding for transport projects;
50. Recommends that the Commission develop initiatives to identify and reward sustainable urban development programmes, along the lines of, for example, the RegioStars awards;
51. Stresses that a comprehensive European strategy must be supported from the bottom up, by well-prepared integrated transport strategies on the part of local and regional authorities and national governments; takes the view that the design of such strategies should be supported by the European funds;
52. Considers that all public support should be provided in accordance with relevant European legislation on State aid, including rules on research, development and innovation activities, and on the funding of transport activities and infrastructure; takes the view, however, that the EU’s State aid rules should also take adequate account of the specific disadvantages of certain regions;
53. Highlights the need for the Commission to improve its activities in the transfer of knowledge resulting from R&I activities to interested users (such as SMEs or research institutes) by creating a clustered database providing a clear categorised overview of all R&I projects funded by the EU;
54. Stresses the importance of new initiatives such as the pooling of transport and logistics capacity with a view to more efficient goods transport; calls on the Commission to tackle the possible obstacles to such initiatives;
55. Underlines the importance of emission standards for certain modes of transport, i.e. cars; takes the view that a similar approach should be explored for aviation and ships;
56. Supports further R&I in the field of security solutions for the transport sector, provided that the principles of proportionality, non-discrimination and data protection are respected;
57. Endorses and supports the approach proposed by the Commission with its measures for a European transport technology strategy; stresses, however, that this does not provide a legal basis for delegated legal acts or the like but that the Commission must propose measures for adoption under co-decision;
58. Calls on the Commission to take into account the priorities set out in this report when preparing the European strategic transport-technology plan and options for further action;
o o o
59. Instructs its President to forward this resolution to the Council and the Commission.
European Parliament legislative resolution of 10 September 2013 on the proposal for a directive of the European Parliament and of the Council on the right of access to a lawyer in criminal proceedings and on the right to communicate upon arrest (COM(2011)0326 – C7-0157/2011 – 2011/0154(COD))
– having regard to the Commission proposal to Parliament and the Council (COM(2011)0326),
– having regard to Article 294(2) and Article 82(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7–0157/2011),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to the contributions submitted by the Bulgarian Parliament, the Italian Senate and the Portuguese Parliament on the draft legislative act,
– having regard to the opinion of the European Economic and Social Committee of 7 December 2011(1),
– after consulting the Committee of the Regions,
– having regard to the undertaking given by the Council representative by letter of 4 June 2013 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 Civil Liberties, Justice and Home Affairs and the opinion of the Committee on Legal Affairs (A7-0228/2013),
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 10 September 2013 with a view to the adoption of Directive 2013/.../EU of the European Parliament and of the Council on the right of access to a lawyer in criminal proceedings and in European arrest warrant proceedings, and on the right to have a third party informed upon deprivation of liberty and to communicate with third persons and with consular authorities while deprived of liberty
Amendments adopted by the European Parliament on 10 September 2013 on the proposal for a directive of the European Parliament and of the Council on credit agreements relating to residential property (COM(2011)0142 – C7-0085/2011 – 2011/0062(COD))(1)
DIRECTIVE 2013/…/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on credit agreements for consumers relating to residential immovable property and amending Directive 2008/48/EC (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 Central Bank(3),
Having regard to the opinion of the European Economic and Social Committee(4),
▌
Acting in accordance with the ordinary legislative procedure,
Whereas:
(1) In March 2003, the Commission launched a process of identifying and assessing the impact of barriers to the internal market for credit agreements relating to residential immovable property. On 18 December 2007, it adopted a White Paper on the Integration of EU Mortgage Credit Markets. The White Paper announced the Commission’s intention to assess the impact of, among other things, the policy options for pre-contractual information, credit databases, creditworthiness, the annual percentage rate of charge (APRC) and advice on credit agreements. The Commission established an Expert Group on Credit Histories to assist the Commission in preparing measures to improve the accessibility, comparability and completeness of credit data. Studies on the role and operations of credit intermediaries and non-credit institutions providing credit agreements relating to residential immovable property were also launched.
(2) In accordance with the Treaty on the Functioning of the European Union (TFEU), the internal market comprises an area without internal frontiers in which the free movement of goods and services and the freedom of establishment are ensured. The development of a more transparent and efficient credit market within that area is vital in promoting the development of cross-border activity and creating an internal market for credit agreements relating to residential immovable property. There are substantial differences in the laws of the various Member States with regard to the conduct of business in the granting of credit agreements relating to residential immovable property and in the regulation and supervision of credit intermediaries and non-credit institutions providing credit agreements relating to residential immovable property. Such differences create obstacles that restrict the level of cross-border activity on the supply and demand sides, thus reducing competition and choice in the market, raising the cost of lending for providers and even preventing them from doing business.
(3) The financial crisis has shown that irresponsible behaviour by market participants can undermine the foundations of the financial system, leading to a lack of confidence among all parties, in particular consumers, and potentially severe social and economic consequences. Many consumers have lost confidence in the financial sector and borrowers have found their loans increasingly unaffordable, resulting in defaults and forced sales rising. As a result, the G20 has commissioned work from the Financial Stability Board to establish principles on sound underwriting standards in relation to residential immovable property. Although some of the greatest problems in the financial crisis occurred outside the Union, consumers within the Union hold significant levels of debt, much of which is concentrated in credits related to residential immovable property. It is therefore appropriate to ensure that the Union's regulatory framework in this area is robust, consistent with international principles and makes appropriate use of the range of tools available, which may include the use of loan-to-value, loan-to-income, debt-to-income or similar ratios, minimum levels below which no credit would be deemed acceptable or other compensatory measures for the situations where the underlying risks are higher to consumers or where needed to prevent household over-indebtedness. In view of the problems brought to light in the financial crisis and with a view to ensuring an efficient and competitive internal market which contributes to financial stability, the Commission has proposed, in its Communication of 4 March 2009 entitled 'Driving European recovery', measures with regard to credit agreements relating to residential immovable property, including a reliable framework on credit intermediation, in the context of delivering responsible and reliable markets for the future and restoring consumer confidence. The Commission reaffirmed its commitment to an efficient and competitive internal market in its Communication of 13 April 2011 entitled 'Single Market Act: Twelve levers to boost growth and strengthen confidence'.
(4) A series of problems have been identified in ▌mortgage markets within the Union relating to irresponsible lending and borrowing ▌and the potential scope for irresponsible behaviour by market participants including credit intermediaries and non-credit institutions ▌. Some problems concerned credits denominated in a foreign currency which consumers had taken out in that currency in order to take advantage of the borrowing rate offered but without having ▌adequate information about or understanding of the exchange rate risk involved. Those problems are driven by market and regulatory failures as well as other factors such as the general economic climate and low levels of financial literacy. Other problems include ineffective, inconsistent, or non-existent ▌ regimes for credit intermediaries and non-credit institutions providing credit for residential immovable property. The problems identified have potentially significant macroeconomic spill-over effects, can lead to consumer detriment, act as economic or legal barriers to cross-border activity and create an unlevel playing field between actors.
(5) In order to facilitate the emergence of a smoothly functioning internal market with a high level of consumer protection in the area of credit agreements relating to ▌immovable property and in order to ensure that consumers looking for such agreements ▌ are able to do so confident in the knowledge that the institutions they interact with act in a professional and responsible manner, an appropriately harmonised Union legal framework needs to be established in a number of areas, taking into account differences in credit agreements arising in particular from differences in national and regional immovable property markets.
(6) This Directive should therefore develop a more transparent, efficient and competitive internal market, through consistent, flexible and fair credit agreements relating to immovable property, while promoting sustainable lending and borrowing and financial inclusion, and hence providing a high level of consumer protection.
(7) In order to create a genuine internal market with a high and equivalent level of consumer protection, this Directive lays down provisions subject to maximum harmonisation in relation to the provision of pre-contractual information through the European Standardised Information Sheet (ESIS) standardised format and the calculation of the APRC. However, taking into account the specificity of credit agreements relating to immovable property and differences in market developments and conditions in Member States, concerning in particular market structure and market participants, categories of products available and procedures involved in the credit granting process, Member States should be allowed to maintain or introduce more stringent provisions than those laid down in this Directive in those areas not clearly specified as being subject to maximum harmonisation. Such a targeted approach is necessary in order to avoid adversely affecting the level of protection of consumers relating to credit agreements in the scope of this Directive. Member States should, for example, be allowed to maintain or introduce more stringent provisions with regard to knowledge and competence requirements for staff and instructions for completing the ESIS.
(8) This Directive should improve conditions for the establishment and functioning of the internal market through the approximation of Member States’ laws and the establishment of quality standards for certain services, in particular with regard to the distribution and provision of credit through creditors and credit intermediaries and the promotion of good practices. The establishment of quality standards for services for the provision of credit necessarily involves the introduction of certain provisions regarding admission, supervision and prudential requirements.
(9) For those areas not covered by this Directive, Member States are free to maintain or introduce national law. In particular, Member States may maintain or introduce national provisions in areas such as contract law relating to the validity of credit agreements, property law, land registration, contractual information and, to the extent that they are not regulated in this Directive, post-contractual issues. Member States may provide that the appraiser or appraisal company or notaries may be chosen by mutual agreement of the parties. Given the differences between the processes for the purchase or sale of residential immovable property in the Member States, there is scope for creditors or credit intermediaries to seek to receive payments in advance from consumers on the understanding that such payments could help to secure the conclusion of a credit agreement or the purchase or sale of an immovable property, and for such practices to be misused in particular where consumers are unfamiliar with the requirements and usual practice in that Member State. It is therefore appropriate to allow Member States to impose restrictions on such payments.
(10) This Directive should apply irrespective of whether the creditor or credit intermediary is a legal person or a natural person. However, this Directive should not affect the right of Member States to limit, in conformity with Union law, the role of creditor or credit intermediary under this Directive to legal persons only or to certain types of legal persons.
(11) Since consumers and enterprises are not in the same position, they do not need the same level of protection. While it is important to guarantee the rights of consumers ▌ by means of provisions that cannot be derogated from by contract, it is reasonable to allow enterprises and organisations to enter into other agreements. ▌
(12) The definition of consumer should cover natural persons who are acting outside their trade, business or profession. However, in the case of dual purpose contracts, where the contract is concluded for purposes partly within and partly outside the person’s trade, business or profession and the trade, business or professional purpose is so limited as not to be predominant in the overall context of the contract, that person should also be considered as a consumer.
(13) While this Directive regulates credit agreements which solely or predominantly relate to residential immovable property, it does not prevent Member States from extending the measures taken in accordance with this Directive to protect consumers in relation to credit agreements related to other forms of immovable property, or from otherwise regulating such credit agreements.
(14) The definitions set out in this Directive determine the scope of harmonisation. The obligations of Member States to transpose this Directive should therefore be limited to its scope as determined by those definitions. For instance, the obligations of Member States to transpose this Directive are limited to credit agreements concluded with consumers, meaning with natural persons who, in transactions covered by this Directive, are acting outside their trade, business or profession. Similarly, Member States are obliged to transpose provisions of this Directive regulating the activity of persons acting as credit intermediary as defined in the Directive. However, this Directive should be without prejudice to the application by Member States, in accordance with Union law, of this Directive to areas not covered by its scope. In addition, the definitions set out in this Directive should be without prejudice to the possibility for Member States to adopt sub-definitions under national law for specific purposes, provided that they are still compliant with the definitions set out in this Directive. For example, Member States should be allowed to determine under national law sub-categories of credit intermediaries that are not identified in this Directive, where such sub-categories are necessary at national level for instance to differentiate the level of knowledge and competence requirements to be fulfilled by the different credit intermediaries.
(15) The objective of this Directive is to ensure that consumers entering into credit agreements relating to immovable property benefit from a high level of protection. It should therefore apply to credits secured by immovable property regardless of the purpose of the credit, refinancing agreements or other credit agreements that would help an owner or part owner continue to retain rights in immovable property or land and credits which are used to purchase an immovable property in some Member States including credits that do not require the reimbursement of the capital or, unless Member States have an adequate alternative framework in place, those whose purpose is to provide temporary financing between the sale of one immovable property and the purchase of another, and to secured credits for the renovation of residential immovable property ▌.
(16) This Directive should not apply to certain credit agreements where the creditor contributes a lump sum, periodic payments or other forms of credit disbursement in return for a sum deriving from the sale of an immovable property and whose primary objective is to facilitate consumption, such as equity release products or other equivalent specialised products. Such credit agreements have specific characteristics which are beyond the scope of this Directive. An assessment of the consumer’s creditworthiness, for example, is irrelevant since the payments are made from the creditor to the consumer rather than the other way round. Such a transaction would require, inter alia, substantially different pre-contractual information. Furthermore, other products, such as home reversions, which have comparable functions to reverse mortgages or lifetime mortgages, do not involve the provision of credit and so would remain outside the scope of this Directive. ▌
(17) This Directive should not cover other explicitly listed types of niche credit agreements, that are different in their nature and risks involved from standard mortgage credits and therefore require a tailored approach, in particular credit agreements which are the outcome of a settlement reached in court or before another statutory authority, and certain types of credit agreements where the credit is granted by an employer to his employees under certain circumstances, as already provided in Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers(5). It is appropriate to allow Member States to exclude certain credit agreements, such as those which are granted to a restricted public on advantageous terms or provided by credit unions, provided that adequate alternative arrangements are in place to ensure that policy objectives relating to financial stability and the internal market can be met without impeding financial inclusion and access to credit. Credit agreements where the immovable property is not to be occupied as a house, apartment or another place of residence by the consumer or a family member of the consumer and is occupied as a house, apartment or another place of residence on a basis of a rental agreement, have risks and features that are different from standard credit agreements and therefore may require a more adapted framework. Member States should therefore be able to exclude such credit agreements from the Directive where an appropriate national framework is in place for them.
(18) Unsecured credit agreements the purpose of which is the renovation of a residential immovable property involving a total amount of credit above EUR 75 000 should fall under the scope of Directive 2008/48/EC in order to ensure an equivalent level of protection to those consumers and to avoid any regulatory gap between that Directive and this Directive. Directive 2008/48/EC should therefore be amended accordingly.
(19) For reasons of legal certainty, the Union legal framework in the area of credit agreements relating to residential immovable property should be consistent with and complementary to other Union acts, particularly in the areas of consumer protection and prudential supervision. Certain essential definitions including the definition of ▌'consumer', ▌ and 'durable medium', as well as key concepts used in standard information to designate the financial characteristics of the credit, including 'total amount payable by the consumer' and ▌'borrowing rate ▌' should be in line with those set out in Directive 2008/48/EC so that the same terminology refers to the same type of facts irrespective of whether the credit is a consumer credit or a credit relating to residential immovable property. Member States should therefore ensure, in the transposition of this Directive, that there is ▌consistency of application and interpretation in relation to those essential definitions and key concepts.
(20) In order to ensure a consistent framework for consumers in the area of credit as well as to minimise the administrative burden for creditors and credit intermediaries, the core framework of this Directive should follow the structure of Directive 2008/48/EC where possible, notably the notions that information included in advertising concerning credit agreements relating to residential immovable property ▌be provided to the consumer by means of a representative example, that detailed pre-contractual information ▌be given to the consumer by means of a standardised information sheet, that the consumer receives adequate explanations before concluding the credit agreement, a common basis be established for calculating the APRC excluding notary fees, and that creditors ▌ assess the consumer’s creditworthiness before providing a credit. Similarly, non-discriminatory access for creditors to relevant credit databases should be ensured in order to achieve a level playing field with the provisions laid down in Directive 2008/48/EC. Similarly to Directive 2008/48/EC, this Directive should ensure the appropriate admission process and supervision of all creditors providing credit agreements relating to ▌immovable property and should lay down requirements for the establishment of, and access to, out-of-court dispute resolution mechanisms.
(21) This Directive should supplement Directive 2002/65/EC of the European Parliament and of the Council of 23 September 2002 concerning the distance marketing of consumer financial services(6) which requires that in distance sales a consumer be informed of the existence or absence of a right of withdrawal and provides for a right of withdrawal. However, while Directive 2002/65/EC provides for the possibility for the supplier to communicate pre-contractual information after the conclusion of the contract, this would be inappropriate for contracts for credit agreements relating to residential immovable property given the significance of the financial commitment for the consumer. This Directive should not affect national general contract law such as the rules on the validity, formation or effect of a contract, insofar as general contract law aspects are not regulated in this Directive. ▌
(22) At the same time, it is important to take into consideration the specificities of credit agreements relating to residential immovable property, which justify a differentiated approach. Given the nature and the possible consequences of a credit agreement relating to residential immovable property for the consumer, advertising materials and personalised pre-contractual information should include adequate specific risk warnings, for instance about the potential impact of exchange rate fluctuations on what the consumer has to repay and, where assessed as appropriate by the Member States, the nature and implications of taking out a security. Following what already existed as a voluntary approach by the industry concerning home loans, general pre-contractual information should be made available at all times in addition to the personalised pre-contractual information. Furthermore, a differentiated approach is justified in order to take into consideration the lessons learnt from the financial crisis and in order to ensure that credit origination takes place in a sound manner. In this respect, the provisions on the creditworthiness assessment should be strengthened in comparison to consumer credit, more precise information should be provided by credit intermediaries on their status and relationship with the creditors in order to disclose potential conflicts of interest, and all actors involved in the origination of credit agreements relating to ▌immovable property should be adequately admitted and supervised.
(23) It is necessary to regulate some additional areas in order to reflect the specificity of credits related to residential immovable property. Given the significance of the transaction it is necessary to ensure that consumers have sufficient time of at least seven days to consider the implications. Member States should have flexibility to provide this sufficient time either as a period of reflection before the credit agreement is concluded, a period of withdrawal after the conclusion of the credit agreement or a combination of the two. It is appropriate that Member States should have the flexibility to make the reflection period binding on the consumer for a period not exceeding 10 days but that in other cases consumers who wish to proceed during the reflection period are able to do so and that, in the interests of legal certainty in the context of property transactions, Member States should be able to provide that the reflection period or right of withdrawal should cease where the consumer undertakes any action which, under national law, results in the creation or transfer of a property right connected to or using funds obtained through the credit agreement or, where applicable, transfers the funds to a third party.
(24) Given the particular characteristics of credit agreements related to residential immovable property it is common practice for creditors to offer to consumers a set of products or services which can be purchased together with the credit agreement. Therefore, given the significance of such agreements for consumers, it is appropriate to lay down specific rules on tying practices. Combining a credit agreement with one or more other financial services or products in packages is a means for creditors to diversify their offer and to compete against each other, provided that the components of the package can also be bought separately. While a combination of credit agreements with one or more other financial services or products in packages can benefit consumers, it may negatively affect consumers' mobility and their ability to make informed choices, unless the components of the package can be bought separately. It is important to prevent practices such as tying of certain products which may induce consumers to enter into credit agreements which are not in their best interest, without however restricting product bundling which can be beneficial to consumers. Member States should however continue monitoring retail financial services markets closely to ensure that bundling practices do not distort consumer choice and competition in the market.
(25) As a general rule, tying practices should not be allowed unless the financial service or product offered together with the credit agreement could not be offered separately as it is a fully integrated part of the credit, for example in the event of a secured overdraft. In other instances, it may however be justified for creditors to offer or sell a credit agreement in a package with a payment account, savings account, investment product or pension product, for instance where the capital in the account is used to repay the credit or is a prerequisite for pooling resources to obtain the credit, or in situations where, for instance, an investment product or a private pension product serves as an additional security for the credit. While it is justified for creditors to be able to require the consumer to have a relevant insurance policy in order to guarantee repayment of the credit or insure the value of the security, the consumer should have the opportunity to choose his own insurance provider, provided that his insurance policy has an equivalent level of guarantee as the insurance policy proposed or offered by the creditor. Moreover Member States may standardise, wholly or in part, the cover provided by insurance contracts in order to facilitate comparisons between different offers for consumers who wish to make such comparisons.
(26) It is important to ensure that the residential immovable property is appropriately valued before the conclusion of the credit agreement and, in particular where the valuation affects the residual obligation of the consumer in the event of default. Member States should therefore ensure that reliable valuation standards are in place. In order to be considered reliable, valuation standards should take into account internationally recognised valuation standards, in particular those developed by the International Valuation Standards Committee, the European Group of Valuers' Associations or the Royal Institution of Chartered Surveyors. Those internationally recognised valuation standards contain high level principles which require creditors, amongst others, to adopt and adhere to adequate internal risk management and securities management processes, which include sound appraisal processes, to adopt appraisal standards and methods that lead to realistic and substantiated property appraisals in order to ensure that all appraisal reports are prepared with appropriate professional skill and diligence and that appraisers meet certain qualification requirements and to maintain adequate appraisal documentation for securities that is comprehensive and plausible. In this regard it is desirable to ensure appropriate monitoring of residential immovable property markets and for the mechanisms in such provisions to be in line with Directive 2013/36/EU of the European Parliament and the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms (7). The provisions of this Directive relating to property valuation standards can be complied with for example through law or self-regulation.
(27) Given the significant consequences for creditors, consumers and potentially financial stability of foreclosure, it is appropriate to encourage creditors to deal proactively with emerging credit risk at an early stage and that the necessary measures are in place to ensure that creditors exercise reasonable forbearance and make reasonable attempts to resolve the situation through other means before foreclosure proceedings are initiated. Where possible, solutions should be found which take account of the practical circumstances and reasonable need for living expenses of the consumer. Where after foreclosure proceedings outstanding debt remains, Member States should ensure the protection of minimum living conditions and put in place measures to facilitate repayment while avoiding long-term over-indebtedness. At least where the price obtained for the immovable property affects the amount owed by the consumer, Member States should encourage creditors to take reasonable steps to obtain the best efforts price for the foreclosed immovable property in the context of market conditions. Member States should not prevent the parties to a credit agreement from expressly agreeing that the transfer of the security to the creditor is sufficient to repay the credit.
(28) Intermediaries often engage in more activities than just credit intermediation, in particular insurance intermediation or investment services provision. This Directive should therefore also ensure a degree of coherence with Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation(8) and Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments(9). In particular, credit institutions authorised in accordance with Directive 2013/36/EU and other financial institutions subject to an equivalent admission regime under national law should not require a separate admission to operate as a credit intermediary in order to simplify the process of establishing as a credit intermediary and operating cross-border. The full and unconditional responsibility placed on creditors and credit intermediaries for the activities of tied credit intermediaries or appointed representatives should only extend to activities within the scope of this Directive unless Member States choose to extend that responsibility to other areas.
(29) In order to increase the ability of consumers to make informed decisions for themselves about borrowing and managing debt responsibly, Member States should promote measures to support the education of consumers in relation to responsible borrowing and debt management in particular relating to mortgage credit agreements. It is particularly important to provide guidance for consumers taking out mortgage credit for the first time. In that regard, the Commission should identify examples of best practices to facilitate the further development of measures to enhance consumers' financial awareness.
(30) Due to the significant risks attached to borrowing in a foreign currency, it is necessary to provide for measures to ensure that consumers are aware of the risk they are taking on and that the consumer has the possibility to limit their exposure to exchange rate risk during the lifetime of the credit. The risk could be limited either through giving the consumer the right to convert the currency of the credit, or through other arrangements such as caps or, where they are sufficient to limit the exchange rate risk, warnings.
(31) The applicable legal framework should give consumers the confidence that creditors, credit intermediaries and appointed representatives take account of the interests of the consumer, based on the information available to the creditor, credit intermediary and appointed representative at that moment in time and on reasonable assumptions about risks to the consumer's situation over the term of the proposed credit agreement. It could imply, amongst other things, that creditors should not market the credit so that the marketing significantly impairs or is likely to impair the consumer’s ability to carefully consider the taking of the credit, or that the creditor should not use the granting of the credit as a main method of marketing when marketing goods, services or immovable property to consumers. A key aspect of ensuring such consumer confidence is the requirement to ensure a high degree of fairness, honesty and professionalism in the industry, appropriate management of conflicts of interest including those arising from remuneration and to require advice to be given in the best interests of the consumer.
(32) It is appropriate to ensure that the relevant staff of creditors, credit intermediaries and appointed representatives possess an adequate level of knowledge and competence in order to achieve a high level of professionalism. This Directive should, therefore, require relevant knowledge and competence to be proven at the level of the company, based on the minimum knowledge and competence requirements set out in this Directive. Member States should be free to introduce or maintain such requirements applicable to individual natural persons. Member States should be able to allow creditors, credit intermediaries and appointed representatives to differentiate between the levels of minimum knowledge requirements according to the involvement in carrying out particular services or processes. In this context, staff includes outsourced personnel, working for and within the creditor, credit intermediary or appointed representatives as well as their employees. For the purpose of this Directive, staff directly engaged in activities under this Directive should include both front- and back-office staff, including management, who fulfil an important role in the credit agreement process. Persons fulfilling support functions which are unrelated to the credit agreement process (for instance human resources and information and communications technology personnel) should not be considered as staff under this Directive.
(33) Where a creditor or credit intermediary provides its services within the territory of another Member State under the freedom to provide services, the home Member State should be responsible for establishing the minimum knowledge and competence requirements applicable to the staff. However host Member States which deem it necessary should be able to establish their own competence requirements in certain specified areas applicable to creditors and credit intermediaries that provide services within the territory of that Member State under the freedom to provide services.
(34) Given the importance of ensuring that knowledge and competence requirements are applied and complied with in practice, Member States should require competent authorities to supervise creditors, credit intermediaries and appointed representatives and empower them to obtain such evidence as they need to reliably assess compliance.
(35) The way in which creditors, credit intermediaries and appointed representatives remunerate their staff should constitute one of the key aspects of ensuring consumer confidence in the financial sector. This Directive provides rules for staff remuneration, with the aim of limiting mis-selling practices and of ensuring that the way in which staff are remunerated does not impede compliance with the obligation to take account of the interests of the consumer. In particular, creditors, credit intermediaries and appointed representatives should not design their remuneration policies in a way that would incentivise their staff to conclude a given number or type of credit agreements or to offer particular ancillary services to consumers with no explicit consideration of their interests and needs. In this context, Member States may find it necessary to decide that a particular practice, for example, tied intermediaries collecting fees, is against the interests of a consumer. Member States should also be able to specify that the remuneration received by staff is not dependent on the rate or the type of credit agreement concluded with the consumer.
(36) This Directive provides for harmonised rules as regards the fields of knowledge and competence that creditors', credit intermediaries' and appointed representatives' staff should possess in relation to the manufacturing, offering, granting and intermediation of a credit agreement. This Directive does not provide for specific arrangements directly related to the recognition of professional qualifications obtained by an individual in one Member State in order to meet the knowledge and competence requirements in another Member State. Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications(10)should therefore continue to apply concerning the conditions for recognition and the compensation measures that a host Member State may require from an individual whose qualification has not been issued within its jurisdiction.
(37) Creditors and credit intermediaries frequently use advertisements, often featuring special terms and conditions, to attract consumers to a particular product. Consumers should, therefore, be protected against unfair or misleading advertising practices and should be able to compare advertisements. Specific provisions on the advertising of credit agreements ▌and a list of items to be included in advertisements and marketing materials directed at consumers where such advertising specifies interest rates or any figures relating to the cost of credit, are necessary to enable them to compare different offers. ▌Member States should remain free to introduce or maintain disclosure requirements in their national laws regarding advertising which does not indicate an interest rate or contain any figures relating to the cost of credit. Any such requirements should take into account the specificities of credit agreements relating to residential immovable property. In any event, it should be ensured in accordance with Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market(11)that advertising of credit agreements should not create a misleading impression of the product.
(38) Advertising tends to focus on one or several products in particular, while consumers should be able to make their decisions in full knowledge of the range of credit products on offer. In that respect, general information plays an important role in educating the consumer in relation to the broad range of products and services available ▌and the key features thereof. Consumers should therefore be able at all times to access general information on ▌credit products available. Where this requirement is not applicable to non-tied credit intermediaries, this should be without prejudice to their obligation to provide consumers with personalised pre-contractual information.
(39) In order to ensure a level playing field and in order for the consumer’s decision to be based on the details of the credit products on offer rather than on the distribution channel through which such credit products are accessed, consumers should receive information on the credit regardless of whether they are dealing directly with a creditor or a credit intermediary.
(40) Consumers should further receive personalised information in good time prior to the conclusion of the credit agreement in order to enable them to compare and reflect on the characteristics of credit products. Pursuant to Commission Recommendation 2001/193/EC of 1 March 2001 on pre-contractual information to be given to consumers by lenders offering home loans(12), the Commission committed itself to monitoring compliance with the Voluntary Code of Conduct on pre-contractual information for home loans, which contains the ESIS which provides information, personalised for the consumer, on the credit agreement being provided. ▌Evidence collected by the Commission ▌ highlighted the need to revise the content and presentation of the ESIS to ensure that it is clear, understandable and contains all information found to be relevant for consumers. The content and layout of the ESIS should incorporate the necessary improvements identified during consumer testing in all Member States. The structure of the ESIS, ▌in particular, the order of the information items ▌, should be revised, the wording should be more user-friendly, while sections, such as 'nominal rate' and 'annual percentage rate of charge', should be merged and new sections, such as 'flexible features', should be added. An illustrative amortisation table should be provided to a consumer as part of the ESIS where the credit is a deferred interest credit, in which the repayment of principal is deferred for an initial period or where the borrowing rate is fixed for the duration of the credit agreement. Member States should be able to provide that such an illustrative amortisation table in the ESIS is not compulsory for other credit agreements.
(41) Consumer research has underlined the importance of using simple and understandable language in disclosures provided to consumers. For this reason, the terms used in the ESIS are not necessarily the same as the legal terms defined in this Directive but have the same meaning.
(42) The information requirements on credit agreements contained in the ESIS should be without prejudice to Union or national information requirements for other products or services that might be offered with the credit agreement, as conditions for obtaining the credit agreement related to immovable property, or offered so as to obtain that agreement at a lower borrowing rate, such as fire or life insurance or investment products. Member States should be free to maintain or introduce national law where no harmonised provisions exist, for instance information requirements on the level of usury rates at the pre-contractual stage or information which might be useful for the purposes of financial education or for out-of-court settlements. Any additional information should, however, be given in a separate document which may be annexed to the ESIS. Member States should be able, in their national languages, to use different vocabulary in the ESIS, without changing its contents and the order in which information is provided, when this is needed in order to employ a language which might be more easily understandable for consumers.
(43) In order to ensure that the ESIS provides the consumer with all relevant information to make an informed choice, the creditor should follow the instructions set out in this Directive when completing the ESIS. Member States should be able to elaborate or further specify the instructions for completing the ESIS on the basis of the instructions set out in this Directive. For instance, Member States should be able to further specify the information to be given in order to describe the 'type of borrowing rate' in order to take into account the specificities of the national products and market. However, such further specifications should not be contrary to the instructions contained in this Directive nor imply any change in the text of the ESIS model, which should be reproduced as such by the creditor. Member States should be able to specify further warnings on credit agreements, adapted to their national market and practices, where such warnings are not already specifically included in the ESIS. Member States should be able to provide that the creditor is bound by the information provided for in the ESIS, provided that the creditor decides to grant the credit.
(44) The consumer should receive information by means of the ESIS without undue delay after the consumer has delivered the necessary information on his needs, financial situation and preferences and in good time before the consumer is bound by any credit agreement or offer, in order to enable him to compare and reflect on the characteristics of credit products and obtain third party advice if necessary. In particular when a binding offer is made to the consumer, it should be accompanied by the ESIS, unless the ESIS has already been delivered to the consumer and the characteristics of the offer are consistent with the information previously provided. However, Member States should be able to provide for the obligatory provision of the ESIS both before the provision of any binding offer and together with the binding offer, where an ESIS containing the same information has not previously been given. While the ESIS should be personalised and reflect the preferences expressed by the consumer, the provision of such personalised information should not imply an obligation to provide advice. Credit agreements should only be concluded where the consumer has had sufficient time to compare offers, assess their implications, obtain third party advice if necessary and has taken an informed decision on whether to accept an offer.
(45) Where the consumer has a secured credit agreement for the purchase of immovable property or land and the duration of the security is longer than that of the credit agreement, and where the consumer can decide to withdraw the repaid capital again subject to signature of a new credit agreement, a new ESIS disclosing the new APRC and based on the specific characteristics of the new credit agreement should be provided to the consumer before the signature of the new credit agreement.
(46) At least where no right of withdrawal exists, the creditor or, where applicable, the credit intermediary or appointed representative should provide the consumer with a copy of the draft credit agreement, at the time of the provision of an offer binding on the creditor. In other cases, the consumer should at least be offered a copy of the draft credit agreement at the time a binding offer is made.
(47) In order to ensure the fullest possible transparency and to prevent abuses arising from possible conflicts of interest when consumers use the services of credit intermediaries, the latter should be subject to certain information disclosure obligations prior to the performance of their services. Such disclosures should include information on their identity and links with creditors, for instance whether they are considering products from a broad range of creditors or only from a more limited number of creditors. The existence of any commission or other inducement payable to the credit intermediary by the creditor or by third parties in relation to the credit agreement should be disclosed to consumers before the carrying out of any credit intermediation activities and consumers should be informed at that stage either of the amount of such payments, where that is known, or of the fact that the amount will be disclosed at a later pre-contractual stage in the ESIS and of their right to be given information on the level of such payments at that stage. Consumers should be informed of any fees they should pay to credit intermediaries in relation to their services. Without prejudice to competition law, Member States should be free to introduce or maintain provisions prohibiting the payment of fees by consumers to some or all categories of credit intermediary.
(48) A consumer may still need additional assistance in order to decide which credit agreement, within the range of products proposed, is the most appropriate for his needs and financial situation. Creditors and, where applicable, credit intermediaries should provide such assistance in relation to the credit products which they offer to the consumer by explaining the relevant information including in particular the essential characteristics of the products proposed ▌ to the consumer in a personalised manner so that the consumer can understand the effects which they may have on his economic situation. Creditors and, where applicable, credit intermediaries should adapt the way in which such explanations are ▌given to the ▌ circumstances in which the credit is offered and the consumer's need for assistance, taking into account the consumer's knowledge and experience of credit and the nature of individual credit products. Such explanations should not in itself constitute a personal recommendation.
(49) In order to promote the establishment and functioning of the internal market and to ensure a high degree of protection for consumers throughout the Union, it is necessary to uniformly ensure the comparability of information relating to the APRC throughout the Union.
(50) The total cost of the credit to the consumer should comprise all the costs that the consumer has to pay in connection with the credit agreement and which are known to the creditor. It should therefore include interest, commissions, taxes, fees for credit intermediaries, the costs of property valuation for a mortgage and any other fees, except for notarial fees, required to obtain the credit, for example life insurance, or to obtain it on the terms and conditions marketed, for example fire insurance. The provisions of this Directive concerning ancillary products and services (for instance concerning the costs of opening and maintaining a bank account) should be without prejudice to Directive 2005/29/EC and Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts(13). The total cost of the credit to the consumer should exclude costs that the consumer pays in relation to the purchase of the immovable property or land, such as associated taxes and notarial costs or the costs of land registration. The creditor’s actual knowledge of the costs should be assessed objectively, taking into account the requirements of professional diligence. In that respect, the creditor should be presumed to have knowledge of the costs of the ancillary services which he offers to the consumer himself, or on behalf of a third party, unless the price thereof depends on the specific characteristics or situation of the consumer.
(51) If estimated information is used, the consumer should be made aware of this and that the information is expected to be representative of the type of agreement or practices under consideration. The additional assumptions for the calculation of the APRC aim to ensure that the APRC is calculated in a consistent way and to ensure comparability. Additional assumptions are necessary for specific types of credit agreement, such as where the amount, duration or cost of the credit are uncertain or vary depending on how the agreement is operated. Where the provisions in themselves do not suffice to calculate the APRC, the creditor should use the additional assumptions set out in Annex I. However, given that the calculation of the APRC will depend on the terms of the individual credit agreement, only those assumptions necessary and relevant to a given credit should be used.
(52) In order to further ensure a high degree of comparability of the APRC between offers from different creditors, the intervals between dates used in the calculation should not be expressed in days where they can be expressed as a whole number of years, months or weeks. Implicit in that context is that if certain time intervals are used in the APRC formula, those intervals should be used to ascertain the amounts of interest and other charges used in the formula. For this reason, creditors should use the method of measurement of time intervals described in Annex I to obtain the figures for the payment of charges. However, that is only applicable for the purposes of calculation of the APRC and does not impact on the amounts actually charged by the creditor under the credit agreement. Where those numbers are different it may be necessary to explain them to the consumer in order to avoid misleading the consumer. That implies that in the absence of non-interest charges and assuming an identical method of calculation the APRC will be equal to the effective borrowing rate of the credit.
(53) As the APRC can at the advertising stage be indicated only through an example, such an example should be representative. Therefore, it should correspond, for instance, to the average duration and total amount of credit granted for the type of credit agreement under consideration. When determining the representative example, the prevalence of certain types of credit agreements in a specific market should be taken into account. It may be preferable for each creditor to base the representative example on an amount of credit which is representative of that creditor’s own product range and expected customer base, as these may vary considerably among creditors. As regards the APRC disclosed in the ESIS, the preferences of and information provided by the consumer should where possible be taken into account and the creditor or credit intermediary should make it clear whether the information provided is illustrative or reflects the preferences and information given. In any event, the representative examples should not be contrary to the requirements of Directive 2005/29/EC. It is important that in the ESIS it is made clear to the consumer, where applicable, that the APRC is based on assumptions and could change so that consumers can take this into account when comparing products. It is important that the APRC should take account of all drawdowns under the credit agreement, whether paid directly to the consumer or to a third party on the consumer's behalf.
(54) In order to ensure consistency between the calculation of the APRC for different types of credit, the assumptions used for calculating similar forms of credit agreement should be generally consistent. In this respect, assumptions from Commission Directive 2011/90/EU of 14 November 2011 amending Part II of Annex I to Directive 2008/48/EC of the European Parliament and of the Council providing additional assumptions for the calculation of the annual percentage rate of charge(14), modifying the assumptions for calculating the APRC should be incorporated. While not all assumptions will necessarily apply to credit agreements available now, product innovation in this sector is active and so it is necessary to have the assumptions in place. Furthermore, for the purpose of calculating the APRC, the identification of the most common drawdown mechanism should be based on reasonable expectations of the drawdown mechanism most frequently used by consumers for the type of product offered by that specific creditor. For existing products, the expectation should be based on the previous 12 months.
(55) It is essential that the consumer's ability and propensity to repay the credit is assessed and verified before a credit agreement is concluded. That assessment of creditworthiness should take into consideration all necessary and relevant factors that could influence a consumer’s ability to repay the credit over its lifetime. In particular, the consumer's ability to service and fully repay the credit should include consideration of future payments or payment increases needed due to negative amortisation or deferred payments of principal or interest and should be considered in the light of other regular expenditure, debts and other financial commitments as well as income, savings and assets. Reasonable allowance should be made for future events during the term of the proposed credit agreement such as a reduction in income where the credit term lasts into retirement or, where applicable, an increase in the borrowing rate or negative change in the exchange rate. While the value of the immovable property is an important element in ascertaining the amount of the credit that may be granted to a consumer under a secured credit agreement, the assessment of creditworthiness should focus on the consumer’s ability to meet their obligations under the credit agreement. Consequently, the possibility that the value of the immovable property could exceed the credit amount or could increase in the future should not generally be a sufficient condition for granting the credit in question. Nevertheless, where the purpose of a credit agreement is to construct or renovate an existing immovable property, the creditor should be able to consider this possibility. Member States should be able to issue additional guidance on those or additional criteria and on methods to assess a consumer’s creditworthiness, for example by setting limits on loan-to-value or loan-to-income ratios and should be encouraged to implement the Financial Stability Board's Principles for Sound Residential Mortgage Underwriting Practices.
(56) Specific provisions may be necessary for the different elements that may be taken into consideration in the creditworthiness assessment of certain types of credit agreements. For example, for credit agreements which relate to an immovable property which explicitly state that the immovable property is not to be occupied as a house, apartment or another place of residence by the consumer or a family member of the consumer (buy-to-let agreements), Member States should be able to specify that future rental income is taken into account when assessing the consumer's ability to repay the credit. In those Member States where such a specification is not set out by national provisions, creditors may decide to include a prudent assessment of future rental income. The assessment of creditworthiness should not imply the transfer of responsibility to the creditor for any subsequent non-compliance by the consumer with his obligations under the credit agreement.
(57) The creditor's decision as to whether to grant the credit should be consistent with the outcome of the assessment of creditworthiness. For example, the capacity for the creditor to transfer part of the credit risk to a third party should not lead him to ignore the conclusions of the creditworthiness assessment by making a credit agreement available to a consumer who is likely not to be able to repay it. Member States should be able to transpose this principle by requiring competent authorities to take relevant actions as part of the supervisory activities and to monitor the compliance of creditors’ creditworthiness assessment procedures. However, a positive creditworthiness assessment should not constitute an obligation for the creditor to provide credit.
(58) In line with the recommendations of the Financial Stability Board, the assessment of creditworthiness should be based on information on the financial and economic situation, including income and expenses, of the consumer. That information can be obtained from various sources including from the consumer, and the creditor should appropriately verify such information before granting the credit. In that respect consumers should provide information in order to facilitate the creditworthiness assessment, since failure to do so is likely to result in refusal of the credit they seek to obtain unless the information can be obtained from elsewhere. Without prejudice to private contract law, Member States should ensure that creditors cannot terminate a credit agreement because they realised, after the signature of the credit agreement, that the assessment of creditworthiness was incorrectly conducted due to incomplete information at the time of the creditworthiness assessment. However, this should be without prejudice to the possibility for Member States to allow creditors to terminate the credit agreement where it can be established that the consumer deliberately provided inaccurate or falsified information at the time of the creditworthiness assessment or intentionally did not provide information that would have led to a negative creditworthiness assessment or where there are other valid reasons compatible with Union law. While it would not be appropriate to apply sanctions to consumers for not being in a position to provide certain information or assessments or for deciding to discontinue the application process for getting a credit, Member States should be able to provide for sanctions where consumers knowingly provide incomplete or incorrect information in order to obtain a positive creditworthiness assessment, in particular where the complete and correct information would have resulted in a negative creditworthiness assessment and the consumer is subsequently unable to fulfil the conditions of the agreement.
(59) Consultation of a credit database is a useful element in the assessment of creditworthiness. Some Member States require creditors to assess the creditworthiness of consumers on the basis of a consultation of the relevant database. Creditors should be able to consult the credit database over the lifetime of the credit solely in order to identify and assess the potential for default. Such consultation of the credit database should be subject to appropriate safeguards to ensure that it is used for the early identification and resolution of credit risk in the interest of the consumer and not to inform commercial negotiations. Pursuant to 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(15), consumers should be informed by creditors of the consultation of the credit database prior to its consultation, and should have the right to access the information held on them in such a credit database in order to, where necessary, rectify, erase or block the personal data concerning them processed therein where it is inaccurate or has been unlawfully processed.
(60) To prevent any distortion of competition among creditors, it should be ensured that all creditors, ▌including credit institutions or non-credit institutions providing credit agreements relating to residential immovable property, have access to all public and private credit databases concerning consumers under non-discriminatory conditions. Such conditions should not therefore include a requirement for creditors to be established as a credit institution. Access conditions, such as the costs of accessing the database or requirements to provide information to the database on the basis of reciprocity should continue to apply. Member States should be free to determine whether, within their jurisdictions, credit intermediaries may have access to such databases.
(61) Where a decision to reject an application for credit is based on data obtained through the consultation of a database or the lack of data therein, the creditor should inform the consumer thereof, and provide the name of the database consulted and of any other elements required by Directive 95/46/EC so as to enable the consumer to exercise his right to access and, where justified, rectify, erase or block personal data concerning him and processed therein. Where a decision to reject an application for credit results from a negative creditworthiness assessment, the creditor should inform the consumer of the rejection without undue delay. Member States should be free to decide whether they require creditors to provide further explanations on the reasons of the rejection. However, the creditor should not be required to give such information when to do so would be prohibited by other Union law such as provisions on money laundering or the financing of terrorism. Such information should not be provided where to do so would be contrary to the objectives of public policy or public security such as the prevention, investigation, detection or prosecution of criminal offences.
(62) This Directive addresses the use of personal data in the context of the assessment of a consumer’s creditworthiness. In order to ensure the protection of personal data, Directive 95/46/EC should apply to the data processing activities carried out within the context of such assessments. ▌
(63) Providing advice in the form of a personalised recommendation is a distinct activity which may but need not be combined with other aspects of granting or intermediating credit. Therefore, in order to be in a position to understand the nature of the services provided to them, consumers should be made aware of whether advisory services are being or can be provided and when they are not and of what constitutes advisory services. Given the importance which consumers attach to the use of the terms “advice” and “advisors”, it is appropriate that Member States should be allowed to prohibit the use of the those terms, or similar terms, when advisory services are being provided to consumers. It is appropriate to ensure that Member States impose safeguards where advice is described as independent to ensure that the range of products considered and remuneration arrangements are commensurate with consumers’ expectations of such advice.
(64) Those providing advisory services should comply with certain standards in order to ensure that the consumer is presented with ▌products suitable for his needs and circumstances. Advisory services should be based on a fair and sufficiently wide-ranging analysis of the products offered, where the advisory services are provided by creditors and tied credit intermediaries, or, where the advisory services are provided by credit intermediaries that are not tied, of products available on the market. Those providing advisory services should be able to specialise in certain 'niche' products such as bridging finance, provided they consider a range of products within that particular 'niche' and 'their specialisation in those 'niche' products is made clear to the consumer. In any event, creditors and credit intermediaries should disclose to the consumer whether they are advising only on their own product range or a wide range from across the market to ensure that the consumer understands the basis for a recommendation.
(65) Advisory services should be based on a proper understanding of the consumer's financial situation, preferences and objectives ▌ based on the necessary up-to-date information and reasonable assumptions about risks to the consumer's circumstances during the lifetime of the credit agreement. Member States should be able to clarify how the suitability of a given product is to be assessed in the context of the provision of advisory services.
(66) A consumer's ability to repay the credit prior to the expiry of the credit agreement may play an important role in promoting competition in the internal market and the free movement of Union citizens as well as helping to provide the flexibility during the lifetime of the credit agreement needed to promote financial stability in line with the recommendations of the Financial Stability Board. However, substantial differences exist between the national principles and conditions under which consumers have the ability to repay their credit and the conditions under which such early repayment can take place. Whilst recognising the diversity in mortgage funding mechanisms and the range of products available, certain standards with regard to early repayment of credit are essential at Union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to compare offers in order to find the best products to meet their needs. Member States should therefore ensure, whether through law or other means such as contractual clauses, that consumers have a right to early repayment. Nevertheless, Member States should be able to define the conditions for the exercise of such a right. These conditions may include time limitations on the exercise of the right, different treatment depending on the type of the borrowing rate ▌ or ▌ restrictions with regard to the circumstances under which the right may be exercised. Where the early repayment falls within a period for which the borrowing rate is fixed, exercise of the right may be made subject to the existence of a legitimate interest on the part of the consumer specified by the Member State. Such legitimate interest may for example occur in the event of divorce or unemployment. The conditions set by Member States may provide that the creditor is entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit. In the event where Member States provide that the creditor is entitled to compensation such compensation should be a fair and objectively justified compensation for potential costs directly linked to early repayment of the credit in accordance with the national rules on compensation. The compensation should not exceed the financial loss of the creditor.
(67) It is important to ensure that sufficient transparency exists to provide clarity for consumers on the nature of the commitments made in the interests of preserving financial stability and on where there is flexibility during the term of the credit agreement. Consumers should be provided with information concerning the borrowing rate during the contractual relationship as well as at the pre-contractual stage. Member States should be able to maintain or introduce restrictions or prohibitions on unilateral changes to the borrowing rate by the creditor. Member States should be able to provide that where the borrowing rate changes the consumer is entitled to receive an updated amortisation table.
(68) Although credit intermediaries play a central role in the distribution of credit agreements relating to residential immovable property in the Union, substantial differences remain between national provisions on the conduct of business and supervision of credit intermediaries which create barriers to the taking-up and pursuit of the activities of credit intermediaries in the internal market. The inability of credit intermediaries to operate freely throughout the Union hinders the proper functioning of the internal market in credit agreements relating to residential immovable property. While recognising the diversity in the types of actor involved in credit intermediation, certain standards at Union level are essential in order to ensure a high level of professionalism and service.
(69) Before being able to carry out their activities, credit intermediaries should be subject to an admission process by the competent authority of their home Member State and subject to ongoing supervision to ensure that they meet strict professional requirements at least in relation to their competence, good repute ▌ and professional indemnity cover.▌Such requirements should apply at least at the level of the institution. However, Member States may clarify whether such requirements for admission apply to individual employees of the credit intermediary. The home Member State may provide for additional requirements, for instance that the credit intermediary's shareholders are of good repute or that a tied credit intermediary can only be tied to one creditor, where those are proportionate and compatible with other Union law. Relevant information about admitted credit intermediaries should be entered in a public register. Tied credit intermediaries who work exclusively with one creditor under its full and unconditional responsibility should have the possibility to be admitted by the competent authority under the auspices of the creditor on whose behalf they act. Member States should have the right to maintain or to impose restrictions regarding the legal form of certain credit intermediaries, whether they are allowed to act exclusively as legal or natural persons. Member States should be free to decide whether all credit intermediaries are entered into one register or whether different registers are required depending on whether the credit intermediary is tied or acts as independent credit intermediary. Furthermore Member States should be free to maintain or to impose restrictions on the possibility to charge any fees to consumers by the credit intermediaries tied to one or more creditors.
(70) In some Member States, credit intermediaries may decide to use the services of appointed representatives to perform activities on their behalf. Member States should have the possibility to apply the specific regime laid down by this Directive for appointed representatives. However, Member States should be free not to introduce such a regime or to allow other entities to perform a role which is comparable to that of appointed representatives, provided that those entities are subject to the same regime as credit intermediaries. The rules on appointed representatives set out in this Directive do not oblige Member States to allow appointed representatives to operate in their jurisdiction unless such appointed representatives are considered credit intermediaries under this Directive.
(71) In order to ensure the effective supervision of credit intermediaries by competent authorities, a credit intermediary which is a legal person should be admitted in the Member State in which it has its registered office. A credit intermediary which is not a legal person should be admitted in the Member State in which it has its head office. In addition, Member States should require that a credit intermediary’s head office always be situated in its home Member State and that it actually operates there.
(72) The requirements for admission should allow credit intermediaries to operate in other Member States in accordance with the principles of freedom of establishment and freedom to provide services, provided that an appropriate notification procedure has been followed between the competent authorities. Even in cases where Member States decide to admit all individual staff within the credit intermediary, the notification of the intention to provide services should be made on the basis of the credit intermediary rather than the individual employee. However, while this Directive provides a framework for all admitted credit intermediaries, including credit intermediaries tied to only one creditor, to operate throughout the Union, this Directive does not provide such a framework for appointed representatives. In such instances, appointed representatives wishing to operate in another Member State would have to comply with the requirements for the admission of credit intermediaries set out in this Directive.
(73) In some Member States, credit intermediaries can carry out their activities in respect of credit agreements offered by non-credit institutions and credit institutions. As a principle, admitted credit intermediaries should be allowed to operate in the entire territory of the Union. However, the admission by the competent authorities of the home Member States should not allow credit intermediaries to provide their services in relation to credit agreements offered by non-credit institutions to a consumer in a Member State where such non-credit institutions are not allowed to operate.
(74) Member States should be able to provide that persons carrying out credit intermediation activities only on an incidental basis in the course of professional activity, such as lawyers or notaries, are not subject to the admission procedure set out in this Directive provided that such professional activity is regulated and the relevant rules do not prohibit the carrying out, on an incidental basis, of credit intermediation activities. Such an exemption from the admission procedure laid down in this Directive should however mean that such persons cannot benefit from the passport regime provided in this Directive. Persons who merely introduce or refer a consumer to a creditor or credit intermediary on an incidental basis in the course of their professional activity, for instance by indicating the existence of a particular creditor or credit intermediary to the consumer or a type of product with this particular creditor or credit intermediary to the consumer without further advertising or engaging in the presentation, offering, preparatory work or conclusion of the credit agreement, should not be regarded as credit intermediaries for the purposes of this Directive. Neither should borrowers who merely transfer a credit agreement to a consumer through a process of subrogation without carrying out any other credit intermediation activity be regarded as credit intermediaries for the purposes of this Directive.
(75) In order to ensure a level playing field between creditors and promote financial stability, and pending further harmonisation, Member States should ensure that appropriate measures are in place for the admission and supervision of non-credit institutions providing credit agreements relating to residential immovable property. In accordance with the principle of proportionality, this Directive should not lay down detailed conditions for the admission or supervision of creditors providing such credit agreements and that are not credit institutions as defined in Regulation (EU) No 575/2013 of the European Parliament and the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms(16). The number of such institutions operating in the Union at present is limited as is their market share and the number of Member States in which they are active, particularly since the financial crisis. Nor should the introduction of a 'passport' for such institutions be provided for in this Directive for the same reason.
(76) Member States should lay down rules on sanctions applicable to infringements of the national provisions adopted pursuant to this Directive and ensure that they are implemented. While the choice of sanctions remains within the discretion of Member States, the sanctions provided for should be effective, proportionate and dissuasive.
(77) Consumers should have access to out-of-court complaint and redress procedures for the settlement of disputes arising from the rights and obligations set out in this Directive between creditors and consumers as well as between credit intermediaries and consumers. Member States should ensure that participation in such alternative dispute resolution procedures is not optional for creditors and credit intermediaries. To ensure the smooth functioning of alternative dispute resolution procedures in cases of cross-border activity, Member States should require and encourage the bodies responsible for resolving out-of-court complaints and redress to cooperate. In that context, Member States' out-of-court complaint and redress bodies should be encouraged to participate in FIN-NET, a financial dispute resolution network of national out-of-court schemes that are responsible for handling disputes between consumers and financial services providers.
(78) In order to ensure consistent harmonisation and to take account of developments in the markets for credit agreements or in the evolution of credit products or in economic conditions, and in order to further specify certain requirements in this Directive, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amending the standard wording or the instructions for completing the ESIS and amending the remarks or update the assumptions used to calculate the APRC. It is of particular importance that the Commission carry 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.
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(79) In order to facilitate the ability of credit intermediaries to provide their services on a cross-border basis, for the purposes of cooperation, information exchange and dispute resolution between competent authorities, the competent authorities responsible for the admission of credit intermediaries should be those acting under the auspices of the European Supervisory Authority (European Banking Authority) (EBA), as set out in Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority)(17) or other national authorities provided that they cooperate with the authorities acting under the auspices of EBA in order to carry out their duties under this Directive.
(80) Member States should designate competent authorities empowered to ensure enforcement of this Directive and ensure that they are granted investigation and enforcement powers and adequate resources necessary for the performance of their duties. Competent authorities could act for certain aspects of this Directive by application to courts competent to grant a legal decision, including, where appropriate, by appeal. This could enable Member States, in particular where provisions of this Directive were transposed into civil law, to leave the enforcement of these provisions to the abovementioned bodies and the courts. Member States should be able to designate different competent authorities in order to enforce the wide ranging obligations laid down in this Directive. For instance, for some provisions, Member States could designate competent authorities responsible for the enforcement of consumer protection, while for others, they could decide to designate prudential supervisors. The option to designate different competent authorities should not affect the obligations for ongoing supervision and cooperation between the competent authorities, as provided for in this Directive.
(81) The efficient functioning of this Directive will need to be reviewed, as will progress on the establishment of an internal market with a high level of consumer protection for credit agreements relating to residential immovable property. The review should include, among other things, an assessment of compliance with and the impact of this Directive, an assessment of whether the scope of the Directive remains appropriate, an analysis of the provision of credit agreements by non-credit institutions, an assessment of the need for further measures, including a passport for non-credit institutions and examination of the necessity to introduce further rights and obligations with regard to the post-contractual stage of credit agreements ▌.
(82) Action by Member States alone is likely to result in different sets of rules, which may undermine or create new obstacles to the functioning of the internal market. Since the objective of this Directive, namely the creation of an efficient and competitive internal market in credit agreements relating to residential immovable property whilst ensuring a high level of consumer protection, cannot be sufficiently achieved by Member States and can therefore, by reason of the effectiveness of the action, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve that objective.
(83) Member States may decide to transpose certain aspects covered by this Directive in national law by prudential law, for example the creditworthiness assessment of the consumer, while others are transposed by civil or criminal law, for example the obligations relating to responsible borrowers.
(84) In accordance with the Joint Political Declaration of Member States and the Commission on explanatory documents of 28 September 2011(18), Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified.
(85) The European Data Protection Supervisor delivered an opinion on 25 July 2011(19)based on Article 28(2) of Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data(20),
HAVE ADOPTED THIS DIRECTIVE:
Chapter 1
Subject matter, scope, definitions and competent authorities
Article 1
Subject matter
This Directive lays down a common framework for certain aspects of the laws, regulations and administrative provisions of the Member States concerning ▌agreements covering credit for consumers secured by a mortgage or otherwise relating to residential immovable property, including an obligation to carry out a creditworthiness assessment before granting a credit, as a basis for the development of effective underwriting standards in relation to residential immovable property in the Member States, and for certain prudential and supervisory requirements, including for the establishment and supervision of credit intermediaries, appointed representatives and non-credit institutions.
Article 2
Level of harmonisation
1. This Directive shall not preclude Member States from maintaining or introducing more stringent provisions in order to protect consumers, provided that such provisions are consistent with their obligations under Union law.
2. Notwithstanding paragraph 1, Member States shall not maintain or introduce in their national law provisions diverging from those laid down in Article 14(2) and Annex II Part A with regard to standard pre-contractual information through a European Standardised Information Sheet (ESIS) and Article 17(1) to (5), (7) and (8) and Annex I with regard to a common, consistent Union standard for the calculation of the annual percentage rate of charge (APRC).
Article 3
Scope
1. This Directive shall apply to ▌:
(a) credit agreements which are secured either by a mortgage or by another comparable security commonly used in a Member State on residential immovable property or secured by a right related to residential immovable property; and
(b) credit agreements the purpose of which is to acquire or retain property rights in land or in an existing or projected ▌building.
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2. This Directive shall not apply to:
(a) Equity release credit agreements where the creditor:
i) contributes a lump sum, periodic payments or other forms of credit disbursement in return for a sum deriving from the future sale of a residential immovable property or a right relating to residential immovable property; and
ii) will not seek repayment of the credit until the occurrence of one or more specified life events of the consumer, as defined by Member States, unless the consumer breaches his contractual obligations which allows the creditor to terminate the credit agreement ;
(b) credit agreements where the credit is granted by an employer to his employees as a secondary activity where such a credit agreement is offered free of interest or at an APRC lower than those prevailing on the market and not offered to the public generally;
(c) credit agreements where the credit is granted free of interest and without any other charges except those that recover costs directly related to the securing of the credit;
(d) credit agreements in the form of an overdraft facility and where the credit has to be repaid within one month;
(e) credit agreements which are the outcome of a settlement reached in court or before another statutory authority;
(f) credit agreements which relate to the deferred payment, free of charge, of an existing debt and which do not fall within the scope of point (a) of paragraph 1.
3. Member States may decide not to apply:
(a) Articles 11 and 14 and Annex II to credit agreements for consumers, secured by a mortgage or by another comparable security commonly used in a Member State on residential immovable property or secured by a right related to residential immovable property, the purpose of which is not to acquire or retain the right to residential immovable property, provided that the Member States apply to such credit agreements Articles 4 and 5 of and Annexes II and III to Directive 2008/48/EC;
(b) this Directive to credit agreements which relate to an immovable property where the credit agreement provides that the immovable property cannot at any time be occupied as a house, apartment or another place of residence by the consumer or a family member of the consumer and is to be occupied as a house, apartment or another place of residence on the basis of a rental agreement;
(c) this Directive to credit agreements which relate to credits granted to a restricted public under a statutory provision with a general interest purpose, free of interest or at lower borrowing rates than those prevailing on the market or on other terms which are more favourable to the consumer than those prevailing on the market and at borrowing rates not higher than those prevailing on the market;
(d) this Directive to bridging loans;
(e) this Directive to credit agreements where the creditor is an organisation within the scope of Article 2(5) of Directive 2008/48/EC.
4. Member States which use the option referred to in point (b) of paragraph 3 shall ensure the application of an appropriate framework at a national level for this type of credit.
5. Member States which use the option referred to in point (c) or (e) of paragraph 3 shall ensure the application of adequate alternative arrangements to ensure consumers receive timely information on the main features, risks and costs of such credit agreements at the pre-contractual stage and that advertising of such credit agreements is fair, clear and not misleading.
Article 4
Definitions
For the purposes of this Directive, the following definitions shall apply:
(1) 'Consumer' means a consumer as defined in point (a) of Article 3 of Directive 2008/48/EC.
(2) 'Creditor' means a natural or legal person who grants or promises to grant credit falling within the scope of Article 3 in the course of his trade, business or profession.
(3) 'Credit agreement' means an agreement whereby a creditor ▌ grants or promises to grant, to a consumer, a credit falling within the scope of Article 3 in the form of a deferred payment, loan or other similar financial accommodation.
(4) 'Ancillary service' means a ▌service offered to the consumer ▌in conjunction with the credit agreement.
(5) 'Credit intermediary' means a natural or legal person who is not acting as a creditor or notary and not merely introducing, either directly or indirectly, a consumer to a creditor or credit intermediary, and who, in the course of his trade, business or profession, for remuneration, which may take a pecuniary form or any other agreed form of financial consideration:
(a) presents or offers credit agreements ▌to consumers;
(b) assists consumers by undertaking preparatory work or other pre-contractual administration in respect of credit agreements ▌other than as referred to in point (a); or
(c) concludes credit agreements ▌with consumers on behalf of the creditor.
(6) 'Group' means a group of creditors which are to be consolidated for the purposes of drawing up consolidated accounts, as defined in Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings (21).
(7) 'Tied credit intermediary' means any credit intermediary who acts on behalf of and under the full and unconditional responsibility of:
(a) only one creditor;
(b) only one group; or
(c) a number of creditors or groups which does not represent the majority of the market.
(8) ‘Appointed representative’ means a natural or legal person who performs activities referred to in point 5 that is acting on behalf of and under the full and unconditional responsibility of only one credit intermediary.
(9) 'Credit institution' means credit institution as defined in point 1 of Article 4(1) of Regulation (EU) No 575/2013.
(10) 'Non-credit institution' means any creditor that is not a credit institution.
(11) 'Staff' means:
(a) any natural person working for the creditor, or credit intermediary who is directly engaged in the activities covered by this Directive or who has contacts with consumers in the course of activities covered by this Directive;
(b) any natural person working for an appointed representative who has contacts with consumers in the course of activities covered by this Directive;
(c) any natural person directly managing or supervising the natural persons referred to in points (a) and (b).
(12) ‘Total amount of credit’ means the total amount of credit as defined in point (l) of Article 3 of Directive 2008/48/EC.
(13) 'Total cost of the credit to the consumer' means the total cost of the credit to the consumer as defined in point (g) of Article 3 of Directive 2008/48/EC including the cost of valuation of property where such valuation is necessary to obtain the credit but excluding registration fees for the transfer of ownership of the immovable property. It excludes any charges payable by the consumer for non-compliance with the commitments laid down in the credit agreement.
(14) 'Total amount payable by the consumer' means the total amount payable by the consumer as defined in point (h) of Article 3 of Directive 2008/48/EC.
(15) 'Annual percentage rate of charge' (APRC) means the total cost of the credit to the consumer, expressed as an annual percentage of the total amount of credit, where applicable, including the costs referred to in Article 17(2) and equates, on an annual basis, to the present value of all future or existing commitments (drawdowns, repayments and charges) agreed by the creditor and the consumer.
(16) 'Borrowing rate' means the borrowing rate as defined in point (j) of Article 3 of Directive 2008/48/EC.
(17) 'Creditworthiness assessment' means the evaluation of the prospect for the debt obligation resulting from the credit agreement to be met.
(18) 'Durable medium' means durable medium as defined in point (m) of Article 3 of Directive 2008/48/EC.
(19) 'Home Member State' means:
(a) where the creditor or credit intermediary is a natural person, the Member State in which his head office is situated ▌;
(b) where the creditor or credit intermediary is a legal person, the Member State in which its registered office is situated or, if under its national law it has no registered office, the Member State in which its head office is situated.
(20) 'Host Member State' means the Member State, other than the home Member State, in which the creditor or credit intermediary has a branch or provides services.
(21) 'Advisory services' means the provision of personal recommendations to a consumer in respect of one or more transactions relating to credit agreements and constitutes a separate activity from the granting of a credit and from the credit intermediation activities set out in point 5.
(22) ‘Competent authority’ means an authority designated as competent by a Member State in accordance with Article 5.
(23) ‘Bridging loan’ means a credit agreement either of no fixed duration or which is due to be repaid within 12 months, used by the consumer as a temporary financing solution while transitioning to another financial arrangement for the immovable property.
(24) ‘Contingent liability or guarantee’ means a credit agreement which acts as a guarantee to another separate but ancillary transaction, and where the capital secured against an immovable property is only drawn down if an event or events specified in the contract occur.
(25) ‘Shared equity credit agreement’ means a credit agreement where the capital repayable is based on a contractually set percentage of the value of the immovable property at the time of the capital repayment or repayments.
(26) 'Tying practice' means the offering or the selling of a credit agreement in a package with other distinct financial products or services where the credit agreement is not made available to the consumer separately.
(27) 'Bundling practice' means the offering or the selling of a credit agreement in a package with other distinct financial products or services where the credit agreement is also made available to the consumer separately but not necessarily on the same terms or conditions as when offered bundled with the ancillary services.
(28) ‘Foreign currency loan’ means a credit agreement where the credit is:
(a) denominated in a currency other than that in which the consumer receives the income or holds the assets from which the credit is to be repaid; or
(b) denominated in a currency other than that of the Member State in which the consumer is resident.
Article 5 ▌
Competent authorities
1. Member States shall designate the national competent authorities empowered to ensure the application and enforcement of this Directive and shall ensure that they are granted investigating and enforcement powers and adequate resources necessary for the efficient and effective performance of their duties.
The authorities referred to in the first subparagraph shall be either public authorities or bodies recognised by national law or by public authorities expressly empowered for that purpose by national law. They shall not be creditors, credit intermediaries or appointed representatives.
2. Member States shall ensure that competent authorities, all persons who work or who have worked for the competent authorities, as well as auditors and experts instructed by the competent authorities, are bound by the obligation of professional secrecy. No confidential information which they may receive in the course of their duties may be divulged to any person or authority whatsoever, save in summary or aggregate form, without prejudice to cases covered by criminal law or by this Directive. This shall not, however, prevent the competent authorities from exchanging or transmitting confidential information in accordance with national and Union law.
3. Member States shall ensure that the authorities designated as competent for ensuring the application and enforcement of Articles 9, 29, 32, 33, 34 and 35 of this Directive are either or both of the following:
(a) competent authorities as defined in Article 4(2) of Regulation (EU) No 1093/2010;
(b) authorities other than the competent authorities referred to in point (a) provided that national laws, regulations or administrative provisions require those authorities to cooperate with the competent authorities referred to in point (a) whenever necessary in order to carry out their duties under this Directive, including for the purposes of co-operating with the European Supervisory Authority (European Banking Authority) (EBA) as required under this Directive.
4. Member States shall inform the Commission and EBA of the designation of the competent authorities and any changes thereto, indicating any division of the respective duties between different competent authorities. The first such notification shall be made as soon as possible and at the latest on ...(22).
5. The competent authorities shall exercise their powers in conformity with national law either:
(a) directly under their own authority or under the supervision of the judicial authorities; or
(b) by application to courts which are competent to grant the necessary decision, including, where appropriate, by appeal, if the application to grant the necessary decision is not successful, except for Articles 9, 29, 32,33, 34 and 35.
6. Where there is more than one competent authority on their territory, Member States shall ensure that their respective duties are clearly defined and that those authorities collaborate closely so that they can discharge their respective duties effectively.
7. The Commission shall publish a list of the competent authorities in the Official Journal of the European Union at least once a year, and update it continuously on its website.
Chapter 2
Financial education
Article 6
Financial education of consumers
1. Member States shall promote measures that support the education of consumers in relation to responsible borrowing and debt management, in particular in relation to mortgage credit agreements. Clear and general information on the credit granting process is necessary in order to guide consumers, especially those who take out a mortgage credit for the first time. Information regarding the guidance that consumer organisations and national authorities may provide to consumers, is also necessary.
2. The Commission shall publish an assessment of the financial education available to consumers in the Member States and identify examples of best practices which could be further developed in order to increase the financial awareness of consumers.
Chapter 3
Conditions applicable to creditors, credit intermediaries and appointed representatives
Article 7
Conduct of business obligations when providing credit to consumers
1. Member States shall require that ▌ when manufacturing credit products or granting, intermediating or providing advisory services on credit and, where appropriate, ancillary services to consumers or when executing a credit agreement, the creditor, credit intermediary or appointed representative acts honestly, fairly, transparently and professionally, taking account of the rights and interests of the consumers. In relation to the granting, intermediating or provision of advisory services on credit and, where appropriate, of ancillary services the activities shall be based on information about the consumer's circumstances and any specific requirement made known by a consumer and on reasonable assumptions about risks to the consumer's situation over the term of the credit agreement. In relation to such provision of advisory services, the activity shall in addition be based on the information required under point (a) of Article 22(3).
2. Member States shall ensure that the manner in which creditors remunerate their staff and ▌credit intermediaries and the manner in which credit intermediaries remunerate their staff and appointed representatives do not impede compliance with the obligation ▌set out in paragraph 1.
3. Member States shall ensure that, when establishing and applying remuneration policies for staff responsible for the assessment of creditworthiness, creditors comply with the following principles in a way and to the extent that is appropriate to their size, internal organisation and the nature, scope and complexity of their activities:
(a) the remuneration policy is consistent with and promotes sound and effective risk management and does not encourage risk-taking that exceeds the level of tolerated risk of the creditor;
(b) the remuneration policy is in line with the business strategy, objectives, values and long-term interests of the creditor, and incorporates measures to avoid conflicts of interest, in particular by providing that remuneration is not contingent on the number or proportion of applications accepted.
4. Member States shall ensure that where creditors, credit intermediaries or appointed representatives provide advisory services the remuneration structure of the staff involved does not prejudice their ability to act in the consumer's best interest and in particular is not contingent on sales targets. In order to achieve that goal, Member States may in addition ban commissions paid by the creditor to the credit intermediary.
5. Member States may prohibit or impose restrictions on payments from a consumer to a creditor or credit intermediary prior to the conclusion of a credit agreement.
Article 8
Obligation to provide information free of charge to consumers
Member States shall ensure that, when information is provided to consumers in compliance with the requirements set out in this Directive, such information is provided without charge to the consumer.
Article 9
Knowledge and competence requirements for staff
1. ▌Member States shall ensure that ▌creditors, credit intermediaries and appointed representatives require their staff to possess and to keep up-to-date an appropriate level of knowledge and competence in relation to the manufacturing, the offering or granting of credit agreements, the carrying out of credit intermediation activities set out in point 5 of Article 4 or the provision of advisory services. Where the conclusion of a credit agreement includes an ancillary service, ▌appropriate knowledge and competence in relation to that ancillary service shall be required.
2. Except in the circumstances referred to in paragraph 3, home Member States shall establish minimum knowledge and competence requirements for creditors’, credit intermediaries’ and appointed representatives’ staff in accordance with the principles set out in Annex III.
3. Where a creditor or credit intermediary provides its services within the territory of one or more other Member States:
(i) through a branch, the host Member State shall be responsible for establishing the minimum knowledge and competence requirements applicable to the staff of a branch;
(ii) under the freedom to provide services, the home Member State shall be responsible for establishing the minimum knowledge and competence requirements applicable to the staff in accordance with Annex III, however host Member States may establish the minimum knowledge and competence requirements for those requirements referred to in points (b), (c), (e) and (f) of paragraph 1 of Annex III.
4. Member States shall ensure that compliance with the requirements of paragraph 1 is supervised by the competent authorities, and that the competent authorities have powers to require creditors, credit intermediaries and appointed representatives to provide such evidence as the competent authority deems necessary to enable such supervision.
5. For the effective supervision of creditors and credit intermediaries providing their services within the territory of other Member States under the freedom to provide services, the competent authorities of the host and the home Member States shall cooperate closely for the effective supervision and enforcement of the minimum knowledge and competence requirements of the host Member State. For that purpose they may delegate tasks and responsibilities to each other.
Chapter 4
Information and practices ▌ preliminary to the conclusion of the credit agreement
Article 10
General provisions applicable to advertising and marketing
Without prejudice to Directive 2005/29/EC, Member States shall require that any advertising and marketing communications concerning credit agreements ▌are fair, clear and not misleading ▌. In particular, wording that may create false expectations for a consumer regarding the availability or the cost of a credit shall be prohibited.
Article 11
Standard information to be included in advertising
1. Member States shall ensure that any advertising concerning credit agreements ▌ which indicates an interest rate or any figures relating to the cost of the credit to the consumer includes the standard information in accordance with this Article.
Member States may provide that the first subparagraph shall not apply where national law requires the indication of the APRC in advertising concerning credit agreements which does not indicate an interest rate or any figures relating to any cost of credit to the consumer within the meaning of the first subparagraph.
2. The standard information shall specify ▌ in a clear, concise and prominent way ▌:
(a) the identity of the creditor or, where applicable, the credit intermediary or appointed representative;
(b) where applicable, that the ▌credit agreement will be secured ▌ by a mortgage or another comparable security commonly used in a Member State on residential immovable property or by a right related to residential immovable property;
(c) the borrowing rate, indicating whether this is fixed or variable or a combination of both, together with particulars of any charges included in the total cost of the credit to the consumer;
(d) the total amount of credit;
(e) the APRC which shall be included in the advertisement at least as prominently as any interest rate;
(f) where applicable, the duration of the credit agreement;
(g) where applicable, the amount of the instalments;
(h) where applicable, the total amount payable by the consumer;
(i) where applicable, the number of instalments;
(j) where applicable, a warning regarding the fact that possible fluctuations of the exchange rate could affect the amount payable by the consumer.
3. The information listed in paragraph 2, other than that listed in points (a), (b) or (j) thereof, shall be specified by means of a representative example and shall adhere to that representative example throughout. Member States shall adopt criteria for determining a representative example.
4. Where the conclusion of a contract regarding an ancillary service ▌, in particular insurance, is compulsory in order to obtain the credit or to obtain it on the terms and conditions marketed, and the cost of that service cannot be determined in advance, the obligation to enter into that contract shall be stated in a clear, concise and prominent way, together with the APRC.
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5. The information referred to in paragraphs 2 and 4 shall be easily legible or clearly audible as appropriate, depending on the medium used for advertising.
6. Member States may require the inclusion of a concise and proportionate warning concerning specific risks associated with credit agreements. They shall notify those requirements to the Commission without delay.
7. This Article shall be without prejudice to Directive 2005/29/EC.
Article 12
Tying and bundling practices
1. Member States shall allow bundling practices but shall prohibit tying practices.
2. Notwithstanding paragraph 1, Member States may provide that creditors can request the consumer or a family member or close relation of the consumer to:
(a) open or maintain a payment or a savings account, where the only purpose of such an account is to accumulate capital to repay the credit, to service the credit, to pool resources to obtain the credit, or to provide additional security for the creditor in the event of default;
(b) purchase or keep an investment product or a private pension product, where such product which primarily offers the investor an income in retirement serves also to provide additional security for the creditor in the event of default or to accumulate capital to repay the credit, to service the credit or to pool resources to obtain the credit;
(c) conclude a separate credit agreement in conjunction with a shared-equity credit agreement to obtain the credit.
3. Notwithstanding paragraph 1, Member States may allow tying practices when the creditor can demonstrate to its competent authority that the tied products or categories of product offered, on terms and conditions similar to each other, which are not made available separately, result in a clear benefit to the consumers taking due account of the availability and the prices of the relevant products offered on the market. This paragraph shall only apply to products which are marketed after ... (23).
4. Member States may allow creditors to require the consumer to hold a relevant insurance policy related to the credit agreement. In such cases Member States shall ensure that the creditor accepts the insurance policy from a supplier different to his preferred supplier where such policy has a level of guarantee equivalent to the one the creditor has proposed.
Article 13
General information
1. Member States shall ensure that clear and comprehensible general information about credit agreements is made available by creditors or, where applicable, by tied credit intermediaries or their appointed representatives at all times on paper or on another durable medium or in electronic form. In addition, Member States may provide that general information is made available by non-tied credit intermediaries.
Such general information shall include at least the following:
(a) the identity and the geographical address of the issuer of the information;
(b) the purposes for which the credit may be used;
(c) the forms of security, including, where applicable, the possibility for it to be located in a different Member State;
(d) the possible duration of the credit agreements;
(e) ▌ types of ▌available borrowing rate, indicating whether fixed or variable or both, with a short description of the characteristics of a fixed and variable rate ▌, including related implications for the consumer;
(f) where foreign currency loans are available, an indication of the foreign currency or currencies, including an explanation of the implications for the consumer where the credit is denominated in a foreign currency;
(g) a representative example of the total amount of credit, the total cost of the credit to the consumer, the total amount payable by the consumer and the APRC;
(h) an indication of possible further costs, not included in the total cost of the credit to the consumer, to be paid in connection with a credit agreement;
(i) the range of different options available for reimbursing the credit to the creditor, including the number, frequency and amount of the regular repayment instalments;
(j) where applicable, a clear and concise statement that compliance with the terms and conditions of the credit agreement does not guarantee repayment of the total amount of credit under the credit agreement;
(k) ▌ a description of the conditions directly relating to early repayment;
(l) whether a valuation of the property is necessary and, where applicable, who is responsible for ensuring that the valuation is carried out, and whether any related costs arise for the consumer;
(m) indication of ancillary services the consumer is obliged to acquire in order to obtain the credit or to obtain it on the terms and conditions marketed and, where applicable, a clarification that the ancillary services may be purchased from a provider that is not the creditor; and
(n) a general warning concerning possible consequences of non-compliance with the commitments linked to the credit agreement.
2. Member States may oblige the creditors to include other types of warnings which are relevant in a Member State. They shall notify those requirements to the Commission without delay.
Article 14
Pre-contractual information
1. Member States shall ensure that the creditor and, where applicable, the credit intermediary or appointed representative, provides the consumer with the personalised information needed to compare the credits available on the market, assess their implications and make an informed decision on whether to conclude a credit agreement:
(a) without undue delay after the consumer has given the necessary information on his needs, financial situation and preferences in accordance with Article 20; and
(b) in good time before the consumer is bound by any credit agreement or offer.
2. The personalised information referred to in paragraph 1, on paper or on another durable medium, shall be provided by means of the ESIS, as set out in Annex II.
3. Member States shall ensure that when an offer binding on the creditor is provided to the consumer, it shall be provided on paper or on another durable medium and accompanied by an ESIS where:
(a) no ESIS has been provided to the consumer previously; or
(b) the characteristics of the offer are different from the information contained in the ESIS previously provided.
4. Member States may provide for the obligatory provision of the ESIS before the provision of an offer binding on the creditor. Where a Member State so provides, it shall require that the ESIS shall only be required to be provided again where point (b) of paragraph 3 is met.
5. Member States which before ...(24)have implemented an information sheet that meets equivalent information requirements to those set out in Annex II may continue to use it for the purposes of this Article until …(25)*.
6. Member States shall specify a time period of at least seven days during which the consumer will have sufficient time to compare ▌offers, assess their implications and make an informed decision ▌.
Member States shall specify that the time period referred to in the first subparagraph shall be either a reflection period before the conclusion of the credit agreement or a period for exercising a right of withdrawal after the conclusion of the credit agreement or a combination of the two.
Where a Member State specifies a reflection period before the conclusion of a credit agreement:
(a) the offer shall be binding on the creditor for the duration of the reflection period; and
(b) the consumer may accept the offer at any time during the reflection period.
Member States may provide that consumers cannot accept the offer for a period not exceeding the first 10 days of the reflection period.
Where the borrowing rate or other costs applicable to the offer are determined on the basis of the selling of underlying bonds or other long-term funding instruments, Member States may provide that the borrowing rate or other costs may vary from that stated in the offer in accordance with the value of the underlying bond or other long-term funding instrument.
Where the consumer has a right of withdrawal in accordance with the second subparagraph of this paragraph, Article 6 of Directive 2002/65/EC shall not apply.
7. The creditor and, where applicable, the credit intermediary or appointed representative who has supplied the ESIS to the consumer shall be deemed to have fulfilled the requirements regarding information provision to the consumer prior to the conclusion of a distance contract as laid down in Article 3(1) of Directive 2002/65/EC and shall be deemed to satisfy the requirements of Article 5(1) of that Directive only where they have at least supplied the ESIS prior to the conclusion of the contract.
8. Member States shall not modify the ESIS model other than as provided for in Annex II. Any additional information which the creditor or, where applicable, the credit intermediary or appointed representative, may provide to the consumer or is required to provide to the consumer by national law shall be given in a separate document which may be annexed to the ESIS.
9. The Commission shall be empowered to adopt delegated acts in accordance with Article 40 to amend the standard wording in Part A of Annex II or the instructions in Part B thereof to address the need for information or warnings concerning new products that were not marketed before ...(26). Such delegated acts shall however not change the structure or format of the ESIS.
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10. In the case of voice telephony communications, as referred to in Article 3(3) of Directive 2002/65/EC, the description of the main characteristics of the financial service to be provided pursuant to the second indent of point (b) of Article 3(3) of that Directive shall include at least the items referred to in sections 2 to 5 of Part A of Annex II to this Directive.
11. Member States shall ensure that at least where no right of withdrawal exists the creditor or, where applicable, the credit intermediary or appointed representative provides the consumer with a copy of the draft credit agreement, at the time of the provision of an offer binding on the creditor. Where a right of withdrawal exists, Member States shall ensure that the creditor or, where applicable, the credit intermediary or appointed representative offers to provide the consumer with a copy of the draft credit agreement at the time of the provision of an offer binding on the creditor.
Article 15
Information requirements concerning credit intermediaries and appointed representatives
1. Member States shall ensure that in good time before the carrying out of any of the credit intermediation activities set out in point 5 of Article 4, the credit intermediary or appointed representative shall provide the consumer with at least the following information on paper or on another durable medium:
(a) the identity and the geographical address of the credit intermediary;
(b) the register in which he has been included, the registration number, where applicable, and the means for verifying such registration;
(c) whether the credit intermediary is tied to or works exclusively for one or more creditors. Where the credit intermediary is tied to or works exclusively for one or more creditors, it shall provide the names of the creditors for which it is acting. The credit intermediary may disclose that it is independent where it meets the conditions laid down in accordance with Article 22(4);
(d) whether the credit intermediary offers advisory services;
(e) the fee, where applicable, payable by the consumer to the credit intermediary for its services or where this is not possible, the method for calculating the fee;
(f) the ▌procedures allowing consumers or other interested parties to register complaints internally about credit intermediaries and, where appropriate, the means by which recourse to ▌out-of-court complaint and redress procedures can be sought;
(g) where applicable, the existence and where known the amount of commissions or other inducements, payable by the creditor or third parties to the credit intermediary for their services in relation to the credit agreement. Where the amount is not known at the time of disclosure the credit intermediary shall inform the consumer that the actual amount will be disclosed at a later stage in the ESIS.
2. Credit intermediaries who are not tied but who receive commission from one or more creditors shall, at the consumer’s request, provide information on the variation in levels of commission payable by the different creditors providing the credit agreements being offered to the consumer. The consumer shall be informed that he has the right to request such information.
3. Where the credit intermediary charges a fee to the consumer and additionally receives commission from the creditor or a third party, the credit intermediary shall explain to the consumer whether or not the commission will be offset against the fee, either in part or in full.
4. Member States shall ensure that the fee, if any, payable by the consumer to the credit intermediary for its services is communicated to the creditor by the credit intermediary, for the purpose of calculating of the APRC.
5. Member States shall require credit intermediaries to ensure that in addition to the disclosures required by this Article, their appointed representative discloses to the consumer the capacity in which he is acting and the credit intermediary he is representing when contacting or before dealing with any consumer.
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Article 16
Adequate explanations
1. Member States shall ensure that creditors and, where applicable, credit intermediaries or appointed representatives provide adequate explanations to the consumer on the proposed credit agreements and any ancillary services, in order to place the consumer in a position enabling him to assess whether the proposed credit agreements and ancillary services are adapted to his needs and financial situation. ▌
The explanations shall, where applicable, include in particular:
(a) the pre-contractual information to be provided in accordance with:
(i) Article 14 in the case of creditors;
(ii) Articles 14 and 15 in the case of credit intermediaries or appointed representatives;
(b) the essential characteristics of the products proposed;
(c) the specific effects the products proposed may have on the consumer, including ▌the consequences of default in payment by the consumer; and
(d) where ancillary services are bundled with a credit agreement, whether each component of the bundle can be terminated separately and the implications for the consumer of doing so.
2. Member States may adapt the manner by which and the extent to which the explanations referred to in paragraph 1 is given, as well as by whom it is given, to the circumstances of the situation in which the credit agreement is offered, the person to whom it is offered and the nature of the credit offered.
Chapter 5
Annual percentage rate of charge
Article 17
Calculation of the APRC
1. The APRC ▌ shall be calculated in accordance with the mathematical formula set out in Annex I.
2. The costs of opening and maintaining a specific account, of using a means of payment for both ▌transactions and drawdowns on that account ▌ and of other costs relating to payment transactions shall be included in the total cost of credit to the consumer whenever the opening or maintaining of an account is obligatory in order to obtain the credit or to obtain it on the terms and conditions marketed.
3. The calculation of the APRC shall be based on the assumption that the credit agreement is to remain valid for the period agreed and that the creditor and the consumer will fulfil their obligations under the terms and by the dates specified in the credit agreement.
4. In the case of credit agreements containing clauses allowing variations in the borrowing rate and, where applicable, in the charges contained in the APRC but unquantifiable at the time of calculation, the APRC shall be calculated on the assumption that the borrowing rate and other charges will remain fixed in relation to the level set at the conclusion of the contract.
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5. For credit agreements for which a fixed borrowing rate is agreed in relation to the initial period of at least five years, at the end of which a negotiation on the borrowing rate takes place to agree on a new fixed rate for a further material period, the calculation of the additional, illustrative APRC disclosed in the ESIS shall cover only the initial fixed rate period and shall be based on the assumption that, at the end of the fixed borrowing rate period, the capital outstanding is repaid.
6. Where the credit agreement allows for variations in the borrowing rate, Member States shall ensure that the consumer is informed of the possible impacts of variations on the amounts payable and on the APRC at least by means of the ESIS. This shall be done by providing the consumer with an additional APRC which illustrates the possible risks linked to a significant increase in the borrowing rate. Where the borrowing rate is not capped, this information shall be accompanied by a warning highlighting that the total cost of the credit to the consumer, shown by the APRC, may change. This provision shall not apply to credit agreements where the borrowing rate is fixed for an initial period of at least five years, at the end of which a negotiation on the borrowing rate takes place in order to agree on a new fixed rate for a further material period, for which an additional, illustrative APRC is provided for in the ESIS.
7. Where applicable, the additional assumptions set out in Annex I shall be used in calculating the APRC.
8. The Commission shall be empowered to adopt delegated acts in accordance with Article 40 in order to amend ▌ the remarks or update the assumptions used to calculate the APRC as set out in Annex I, in particular if the remarks or assumptions set out in this Article and in Annex I do not suffice to calculate the APRC in a uniform manner or are no longer adapted ▌to the commercial situation on the market.
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Chapter 6
Creditworthiness assessment
Article 18
Obligation to assess the creditworthiness of the consumer
1. Member States shall ensure that, before concluding a credit agreement, the creditor makes a thorough assessment of the consumer's creditworthiness. That assessment shall take appropriate account of factors relevant to verifying the prospect of the consumer to meet his obligations under the credit agreement.
2. Member States shall ensure that the procedures and information on which the assessment is based are established, documented and maintained.
3. The assessment of creditworthiness shall not rely predominantly on the value of the residential immovable property exceeding the amount of the credit or the assumption that the residential immovable property will increase in value unless the purpose of the credit agreement is to construct or renovate the residential immovable property.
4. Member States shall ensure that where a creditor concludes a credit agreement with a consumer the creditor shall not subsequently cancel or alter the credit agreement to the detriment of the consumer on the grounds that the assessment of creditworthiness was incorrectly conducted. This paragraph shall not apply where it is demonstrated that the consumer knowingly withheld or falsified the information within the meaning of Article 20.
5. Member States shall ensure that:
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(a) the creditor only makes the credit available to the consumer where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement are likely to be met in the manner required under that agreement;
(b) in accordance with Article 10 of Directive 95/46/EC, the creditor informs the consumer in advance that a database is to be consulted;
(c) where the credit application is rejected ▌the creditor informs the consumer without delay of the rejection and, where applicable, that the decision is based on automated processing of data. Where the rejection is based on the result of the database consultation, the creditor shall inform the consumer of the result of such consultation and of the particulars of the database consulted.
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6. Member States shall ensure that ▌ the consumer’s creditworthiness is re-assessed on the basis of updated information before any significant increase in the total amount of credit is granted after the conclusion of the credit agreement unless such additional credit was envisaged and included in the original creditworthiness assessment.
7. This Article shall be without prejudice to Directive 95/46/EC.
Article 19
Property valuation
1. Member States shall ensure that reliable standards for the valuation of residential immovable property for mortgage lending purposes are developed within their territory. Member States shall require creditors to ensure that those standards are used where they carry out a property valuation or to take reasonable steps to ensure that those standards are applied where a valuation is conducted by a third party. Where national authorities are responsible for regulating independent appraisers who carry out property valuations they shall ensure that they comply with the national rules that are in place.
2. Member States shall ensure that internal and external appraisers conducting property valuations are professionally competent and sufficiently independent from the credit underwriting process so that they can provide an impartial and objective valuation, which shall be documented in a durable medium and of which a record shall be kept by the creditor.
Article 20
Disclosure and verification of consumer information
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1. The assessment of creditworthiness referred to in Article 18 shall be carried out on the basis of information on the consumer's income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate. The information shall be obtained by the creditor from relevant internal or external sources, including the consumer, and including information provided to the credit intermediary or appointed representative during the credit application process. The information shall be appropriately verified, including through reference to independently verifiable documentation when necessary.
2. Member States shall ensure that credit intermediaries or appointed representatives accurately submit the necessary information obtained from the consumer to the relevant creditor to enable the creditworthiness assessment to be carried out.
3. Member States shall ensure that creditors specify in a clear and straightforward way at the pre-contractual phase ▌ the necessary information and independently verifiable evidence ▌that the consumer needs to provide and the timeframe within which the consumer needs to provide the information. Such request for information shall be proportionate and limited to what is necessary to conduct a proper creditworthiness assessment. Member States shall allow creditors to seek clarification of the information received in response to that request where necessary to enable the assessment of creditworthiness.
Member States shall not allow a creditor to terminate the credit agreement on the grounds that the information provided by the consumer before the conclusion of the credit agreement was incomplete.
The second subparagraph shall not prevent Member States from allowing the termination of the credit agreement by the creditor where it is demonstrated that the consumer knowingly withheld or falsified the information.
4. Member States shall have measures in place to ensure that consumers are aware of the need to provide correct information in response to the request referred to in the first subparagraph of paragraph 3 and that such information is as complete as necessary to conduct a proper creditworthiness assessment. The creditor, credit intermediary or appointed representative shall warn the consumer that, where the creditor is unable to carry out an assessment of creditworthiness because the consumer chooses not to provide the information or verification necessary for an assessment of creditworthiness, the credit cannot be granted. That warning may be provided in a standardised format.
5. This Article shall be without prejudice to Directive 95/46/EC, in particular Article 6 thereof.
Chapter 7
Database access
Article 21
Database access
1. Each Member State shall ensure ▌access for all creditors from all Member States to databases used in that Member State for assessing the creditworthiness of consumers and for the sole purpose of monitoring consumers' compliance with the credit obligations over the life of the credit agreement. The conditions for such access shall be non-discriminatory.
2. Paragraph 1 shall apply both to databases which are operated by private credit bureaux or credit reference agencies and to public registers.
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3. This Article shall be without prejudice to Directive 95/46/EC.
Chapter 8
Advisory services
Article 22
Standards for advisory services
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1. Member States shall ensure that the creditor, credit intermediary or appointed representative explicitly informs the consumer, in the context of a given transaction, whether advisory services are being or can be provided to the consumer.
2. Member States shall ensure that before the provision of advisory services or, where applicable, the conclusion of a contract for the provision of advisory services, the creditor, credit intermediary or appointed representative provides the consumer with the following information on paper or another durable medium:
(a) whether the recommendation will be based on considering only their own product range in accordance with point (b) of paragraph 3 or a wide range of products from across the market in accordance with point (c) of paragraph 3 so that the consumer can understand the basis on which the recommendation is made;
(b) where applicable, the fee payable by the consumer for the advisory services or, where the amount cannot be ascertained at the time of disclosure, the method used for its calculation.
The information referred to in points (a) and (b) of the first subparagraph may be provided to the consumer in the form of additional pre-contractual information.
3. Where advisory services are provided to consumers, Member States shall ensure, in addition to the requirements set out in Articles 7 and 9, that:
(a) creditors, credit intermediaries or appointed representatives obtain the necessary information regarding the consumer’s personal and financial situation, his preferences and objectives so as to enable the recommendation of suitable credit agreements. Such an assessment shall be based on information that is up to date at that moment in time and shall take into account reasonable assumptions as to risks to the consumer’s situation over the term of the proposed credit agreement ▌;
(b) creditors, tied credit intermediaries or appointed representatives of tied credit intermediaries consider a sufficiently large number of credit agreements in their product range and recommend a suitable credit agreements or several suitable credit agreements from among their product range for the consumer’s needs, financial situation and personal circumstances;
(c) non-tied credit intermediaries or appointed representatives of non-tied credit intermediaries consider a sufficiently large number of credit agreements available on the market and recommend a suitable credit agreement or several suitable credit agreements available on the market for the consumer’s needs, financial situation and personal circumstances;
(d) creditors, credit intermediaries or appointed representatives act in the best interests of the consumer by:
(i) informing themselves about the consumer's needs and circumstances; and
(ii) recommending suitable credit agreements in accordance with points (a), (b) and (c); and
(e) creditors, credit intermediaries or appointed representatives give the consumer a record on paper or on another durable medium of the recommendation provided.
4. Member States may prohibit the use of the term "advice" and "advisor" or similar terms when the advisory services are being provided to consumers by creditors, tied credit intermediaries or appointed representatives of tied credit intermediaries.
Where Member States do not prohibit the use of the term 'advice' and 'advisor', they shall impose the following conditions on the use of the term "independent advice" or "independent advisor" by creditors, credit intermediaries or appointed representatives providing advisory services:
(a) creditors, credit intermediaries or appointed representatives shall consider a sufficiently large number of credit agreements available on the market; and
(b) creditors, credit intermediaries or appointed representatives shall not be remunerated for those advisory services by one or more creditors.
Point (b) of the second subparagraph shall apply only where the number of creditors considered is less than a majority of the market.
Member States may impose more stringent requirements in relation to the use of the terms "independent advice" or "independent advisor" by creditors, credit intermediaries or appointed representatives, including a ban on receiving remuneration from a creditor.
5. Member States may provide for an obligation for creditors, credit intermediaries and appointed representatives to warn a consumer when, considering the consumer's financial situation, a credit agreement may induce a specific risk for the consumer.
6. Member States shall ensure that advisory services are only provided by creditors, credit intermediaries or appointed representatives.
Member States may decide not to apply the first subparagraph to persons:
(a) carrying out the credit intermediation activities set out in point 5 of Article 4 or providing advisory services where those activities are carried out or services are provided in an incidental manner in the course of a professional activity and that activity is regulated by legal or regulatory provisions or a code of ethics governing the profession which do not exclude carrying out of those activities or the provision of those services;
(b) providing advisory services in the context of managing existing debt which are insolvency practitioners where that activity is regulated by legal or regulatory provisions or public or voluntary debt advisory services which do not operate on a commercial basis; or
(c) providing advisory services who are not creditors, credit intermediaries or appointed representatives where such persons are admitted and supervised by competent authorities in accordance with the requirements for credit intermediaries under this Directive.
Persons benefiting from the waiver in the second subparagraph shall not benefit from the right referred to in Article 32(1) to provide services for the entire territory of the Union.
7. This Article shall be without prejudice to Article 16 and to Member States' competence to ensure that services are made available to consumers to help them understand their financial needs and which types of products are likely to meet those needs.
Chapter 9
Foreign currency loans and variable rate loans
Article 23
Foreign currency loans
1. Member States shall ensure that, where a credit agreement relates to a foreign currency loan, an appropriate regulatory framework is in place at the time the credit agreement is concluded to at least ensure that:
(a) the consumer has a right to convert the credit agreement into an alternative currency under specified conditions; or
(b) there are other arrangements in place to limit the exchange rate risk to which the consumer is exposed under the credit agreement.
2. The alternative currency referred to in point (a) of paragraph 1 shall be either:
(a) the currency in which the consumer primarily receives income or holds assets from which the credit is to be repaid, as indicated at the time the most recent creditworthiness assessment in relation to the credit agreement was made; or
(b) the currency of the Member State in which the consumer either was resident at the time the credit agreement was concluded or is currently resident.
Member States may specify whether both of the choices referred to in points (a) and (b) of the first subparagraph are available to the consumer or only one of them or may allow creditors to specify whether both of the choices referred to in points (a) and (b) of the first subparagraph are available to the consumer or only one of them.
3. Where a consumer has a right to convert the credit agreement into an alternative currency in accordance with point (a) of paragraph 1, the Member States shall ensure that the exchange rate at which the conversion is carried out is the market exchange rate applicable on the day of application for conversion unless otherwise specified in the credit agreement.
4. Member States shall ensure that where a consumer has a foreign currency loan, the creditor warns the consumer on a regular basis on paper or on another durable medium at least where the value of the total amount payable by the consumer which remains outstanding or of the regular instalments varies by more than 20 % from what it would be if the exchange rate between the currency of the credit agreement and the currency of the Member State applicable at the time of the conclusion of the credit agreement were applied. The warning shall inform the consumer of a rise in the total amount payable by the consumer, set out where applicable the right to convert to an alternative currency and the conditions for doing so and explain any other applicable mechanism for limiting the exchange rate risk to which the consumer is exposed.
5. Member States may further regulate foreign currency loans provided that such regulation is not applied with retrospective effect.
6. The arrangements applicable under this Article shall be disclosed to the consumer in the ESIS and in the credit agreement. Where there is no provision in the credit agreement to limit the exchange rate risk to which the consumer is exposed to a fluctuation in the exchange rate of less than 20 %, the ESIS shall include an illustrative example of the impact of a 20 % fluctuation in the exchange rate.
Article 24
Variable rate credits
Where the credit agreement is a variable rate credit, Member States shall ensure that:
(a) any indexes or reference rates used to calculate the borrowing rate are clear, accessible, objective and verifiable by the parties to the credit agreement and the competent authorities; and
(b) historical records of indexes for calculating the borrowing rates are maintained either by the providers of these indexes or the creditors.
Chapter 10
Sound execution of credit agreements and related rights
Article 25
Early repayment
1. Member States shall ensure that the consumer has a ▌ right to discharge fully or partially his obligations under a credit agreement prior to the expiry of that agreement. In such cases, the consumer shall be entitled to a reduction in the total cost of the credit to the consumer, ▌ such ▌ reduction consisting of the interest and the costs for the remaining duration of the contract.
2. Member States may provide that the exercise of the right referred to in paragraph 1 is subject to certain conditions. Such conditions may include time limitations on the exercise of the right, a different treatment depending on the type of the borrowing rate or on the moment the consumer exercises the right, or restrictions with regard to the circumstances under which the right may be exercised.
3. Member States may ▌provide that the creditor is entitled to fair and objective compensation, where justified, for possible costs directly linked to the early repayment but shall not impose a sanction on the consumer. In that regard, the compensation shall not exceed the financial loss of the creditor. Subject to those conditions Member States may provide that the compensation may not exceed a certain level or be allowed only for a certain period of time.
4. Where a consumer seeks to discharge his obligations under a credit agreement prior to the expiry of the agreement, the creditor shall provide the consumer without delay after receipt of the request, on paper or on another durable medium, with the information necessary to consider that option. That information shall at least quantify the implications for the consumer of discharging his obligations prior to the expiry of the credit agreement and clearly set out any assumptions used. Any assumptions used shall be reasonable and justifiable.
5. Where the early repayment falls within a period for which the borrowing rate is fixed Member States may provide that the exercise of the right referred to in paragraph 1 is subject to the existence of a legitimate interest on the part of the consumer.
▌
Article 26
Flexible and reliable markets
1. Member States shall have appropriate mechanisms in place to ensure that the claim against the security is enforceable by or on behalf of creditors. Member States shall ensure that creditors keep appropriate records concerning the types of immovable property accepted as a security as well as the related mortgage underwriting policies used.
2. Member States shall take the necessary measures to ensure an appropriate statistical monitoring of the residential property market, including for market surveillance purposes, where appropriate by encouraging the development and use of specific price indexes which may be public or private or both.
Article 27
Information concerning changes in the borrowing rate
1. Member States shall ensure that the creditor informs the consumer of any change in the borrowing rate, on paper or another durable medium, before the change takes effect. The information shall at least state the amount of the payments to be made after the new borrowing rate takes effect and, in cases where the number or frequency of the payments changes, particulars thereof.
2. However, the Member States may allow the parties to agree in the credit agreement that the information referred to in paragraph 1 is to be given to the consumer periodically where the change in the borrowing rate is correlated with a change in a reference rate, the new reference rate is made publicly available by appropriate means and the information concerning the new reference rate is kept available in the premises of the creditor and communicated personally to the consumer together with the amount of new periodic instalments.
3. Creditors may continue to inform consumers periodically where the change in the borrowing rate is not correlated with a change in a reference rate where this was allowed under national law before …(27).
4. Where changes in the borrowing rate are determined by way of auction on the capital markets and it is therefore impossible for the creditor to inform the consumer of any change before the change takes effect, the creditor shall, in good time before the auction, inform the consumer on paper or on another durable medium of the upcoming procedure and provide an indication of how the borrowing rate could be affected.
Article 28
Arrears and foreclosure
1. Member States shall adopt measures to encourage creditors to exercise reasonable forbearance before foreclosure proceedings are initiated.
2. Member States may require that, where the creditor is permitted to define and impose charges on the consumer arising from the default, those charges are no greater than is necessary to compensate the creditor for costs it has incurred as a result of the default.
3. Member States may allow creditors to impose additional charges on the consumer in the event of default. In that case Member States shall place a cap on those charges.
4. Member States shall not prevent the parties to a credit agreement from expressly agreeing that return or transfer to the creditor of the security or proceeds from the sale of the security is sufficient to repay the credit.
5. Where the price obtained for the immovable property affects the amount owed by the consumer Member States shall have procedures or measures to enable the best efforts price for the foreclosed immovable property to be obtained.
Where after foreclosure proceedings outstanding debt remains, Member States shall ensure that measures to facilitate repayment in order to protect consumers are put in place.
Chapter 11
Requirements for establishment and supervision of credit intermediaries and appointed representatives
Article 29
Admission of credit intermediaries
1. Credit intermediaries shall be duly admitted to carry out all or part of the credit intermediation activities set out in point 5 of Article 4 or to provide advisory services by a competent authority ▌in their home Member State. Where a Member State allows appointed representatives under Article 31, such an appointed representative shall not need to be admitted as a credit intermediary under this Article.
▌
2. Member States shall ensure that the admission of credit intermediaries is made subject to fulfilment of at least the following professional requirements in addition to the requirements provided for in Article 9:
(a) Credit intermediaries shall hold professional indemnity insurance covering the territories in which they offer services, or some other comparable guarantee against liability arising from professional negligence. However, for tied credit intermediaries, the home Member State may provide that such insurance or comparable guarantee can be provided by a creditor for which the credit intermediary is empowered to act.
Powers are delegated to the Commission to adopt and, where necessary amend, regulatory technical standards to stipulate the minimum monetary amount of the professional indemnity insurance or comparable guarantee referred to in the first paragraph of this point. Those regulatory technical standards shall be adopted in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
EBA shall develop draft regulatory technical standards to stipulate the minimum monetary amount of the professional indemnity insurance or comparable guarantee referred to in the first paragraph of this point for submission to the Commission by …(28). EBA shall review, and if necessary, develop draft regulatory technical standards to amend the minimum monetary amount of the professional indemnity insurance or comparable guarantee referred to in the first paragraph of this point for submission to the Commission for the first time by …(29)* and every two years thereafter.
(b) A natural person established as a credit intermediary, the members of the board of a credit intermediary established as a legal person and natural persons performing equivalent tasks within a credit intermediary which is a legal person but does not have a board shall be of good repute. As a minimum they shall have a clean police record or any other national equivalent in relation to serious criminal offences linked to crimes against property or other crimes related to financial activities and they shall not have previously been declared bankrupt, unless they have been rehabilitated in accordance with national law.
(c) A natural person established as a credit intermediary, the members of the board of a credit intermediary established as a legal person and natural persons performing equivalent tasks within a credit intermediary which is a legal person but does not have a board shall possess the appropriate level of knowledge and competence in relation to credit agreements. The home Member State shall establish the appropriate level of knowledge and competence in accordance with the principles set out in Annex III.
3. Member States shall ensure that the criteria established in order for credit intermediaries’ or creditors’ staff to meet their professional requirements are made public.
4. Member States shall ensure that all admitted credit intermediaries, whether established as natural or legal persons, are entered into a register with a competent authority in their home Member State. Member States shall ensure that the register of credit intermediaries is kept up to date and is publicly available online.
The register of credit intermediaries shall contain at least the following information:
(a) the names of the persons within the management who are responsible for the intermediation business. Member States may require the registration of all natural persons who exercise a client-facing function in an undertaking that pursues the activity of credit intermediation;
(b) the Member States in which the credit intermediary conducts business under the rules on the freedom of establishment or on the freedom to provide services and of which the credit intermediary has informed the competent authority of the home Member State in accordance with Article 32(3);
(c) whether the credit intermediary is tied or not.
Member States that decide to avail themselves of the option referred to in Article 30 shall ensure that the register indicates the creditor on whose behalf the tied credit intermediary acts.
Member States that decide to avail themselves of the option referred to in Article 31 shall ensure that the register indicates the credit intermediary or in the case of an appointed representative of a tied credit intermediary, the creditor on whose behalf the appointed representatives acts.
5. Member States shall ensure that:
(a) any credit intermediary which is a legal person has its head office in the same Member State as its registered office if under its national law it has a registered office;
(b) any credit intermediary which is not a legal person or any credit intermediary which is a legal person but under its national law has no registered office has its head office in the Member State in which it actually carries on its main business.
6. Each Member State shall establish a single information point to allow quick and easy public access to information from the national register, which shall be compiled electronically and kept constantly updated. These information points shall provide the identification details of the competent authorities of each Member State.
EBA shall publish on its website references or hyperlinks to that information point.
7. Home Member States shall ensure that all admitted credit intermediaries and appointed representatives comply with the requirements defined in paragraph 2 on a continuing basis. This paragraph shall be without prejudice to Articles 30 and 31.
8. Member States may decide not to apply this Article to persons carrying out the credit intermediation activities set out in point 5 of Article 4 where those activities are carried out in an incidental manner in the course of a professional activity and that activity is regulated by legal or regulatory provisions or a code of ethics governing the profession which do not exclude the carrying out of those activities.
9. This Article shall not apply to credit institutions authorised in accordance with Directive 2013/36/EU or to other financial institutions which under national law are subject to an equivalent authorisation and supervision regime.
Article 30
Credit intermediaries tied to only one creditor
1. Without prejudice to Article 31(1), Member States may allow tied credit intermediaries specified in point (a) of point 7 of Article 4 to be admitted by competent authorities through the creditor on whose behalf the tied credit intermediary is exclusively acting.
In such cases, the creditor shall remain fully and unconditionally responsible for any action or omission on the part of the tied credit intermediary that is acting on behalf of the creditor in areas regulated by this Directive. Member States shall require the creditor to ensure that those tied credit intermediaries comply with at least the professional requirements set out in Article 29(2).
▌
2. Without prejudice to Article 34, creditors shall monitor the activities of tied credit intermediaries specified in point (a) of point 7 of Article 4 in order to ensure that they continue to comply with this Directive. In particular, the creditor shall be responsible for monitoring compliance with the knowledge and competence requirements of the tied credit intermediary and its staff.
Article 31
Appointed representatives
1. Member States may decide to allow a credit intermediary to appoint appointed representatives.
Where the appointed representative is appointed by a tied credit intermediary specified in point (a) of point 7 of Article 4, the creditor shall remain fully and unconditionally responsible for any action or omission on the part of the appointed representative that is acting on behalf of that tied credit intermediary in areas regulated by this Directive. In other cases the credit intermediary shall remain fully and unconditionally responsible for any action or omission on the part of the appointed representative acting on behalf of the credit intermediary in areas regulated by this Directive.
2. The credit intermediaries shall ensure that their appointed representatives comply at least with the professional requirements set out in Article 29(2). However, the home Member State may provide that the professional indemnity insurance or a comparable guarantee can be provided by a credit intermediary for which the appointed representative is empowered to act.
3. Without prejudice to Article 34, credit intermediaries shall monitor the activities of their appointed representatives in order to ensure full compliance with this Directive. In particular, the credit intermediaries shall be responsible for monitoring compliance with the knowledge and competence requirements of the appointed representatives and their staff.
4. Member States that decide to allow a credit intermediary to appoint appointed representatives shall establish a public register containing at least the information referred to in Article 29(4). Appointed representatives shall be registered in the public register in the Member State where they are established. The register shall be updated on a regular basis. It shall be publicly available for consultation online.
Article 32
Freedom of establishment ▌and ▌ freedom to provide ▌services by credit intermediaries
1. The admission of a credit intermediary by the competent authority of its home Member State as laid down in Article 29(1) shall be effective for the entire territory of the Union without ▌further admission by the competent authorities of the host Member States being required for the carrying out of the activities and provision of services covered by the admission, provided that the activities a credit intermediary intends to carry out in the host Member States are covered by the admission. However, credit intermediaries shall not be allowed to provide their services in relation to credit agreements offered by non-credit institutions to consumers in a Member State where such non-credit institutions are not allowed to operate.
2. Appointed representatives appointed in Member States which avail themselves of the option under Article 31 are not allowed to carry out part or all of the credit intermediation activities set out in point 5 of Article 4 or to provide advisory services in Member States where such appointed representatives are not allowed to operate.
3. Any admitted credit intermediary intending to carry out business for the first time in one or more Member States under the freedom to provide services or when establishing a branch shall inform the competent authorities of its home Member State.
Within a period of one month after being informed, those competent authorities shall notify the competent authorities of the host Member States concerned of the intention of the credit intermediary and shall at the same time inform the credit intermediary concerned of that notification. They shall notify the competent authorities of the host Member States concerned of the creditors to which the credit intermediary is tied and whether the creditors take full and unconditional responsibility for the credit intermediary’s activities. The host Member State shall use the information received from the home Member State to enter the necessary information into its register.
The credit intermediary may start business one month after the date on which he was informed by the competent authorities of the home Member State of the notification referred to in the second subparagraph.
4. Before the branch of a credit intermediary commences its activities or within two months of receiving the notification referred to in the second subparagraph of paragraph 3, the competent authorities of the host Member State shall prepare for the supervision of the credit intermediary in accordance with Article 34 and, if necessary, indicate to the credit intermediary the conditions under which, in areas not harmonised in Union law, those activities are to be carried out in the host Member State.
Article 33
Withdrawal of admission of credit intermediaries
1. The competent authority of the home Member State may withdraw the admission granted to a credit intermediary in accordance with Article 29 where such a credit intermediary:
(a) expressly renounces the admission or has carried out neither credit intermediation activities set out in point 5 of Article 4 nor provided advisory services for the preceding six months, unless the Member State concerned has provided for admission to lapse in such cases;
(b) has obtained the admission through false or misleading statements or any other irregular means;
(c) no longer fulfils the requirements under which admission was granted;
(d) falls within any of the cases where national law, in respect of matters outside the scope of this Directive, provides for withdrawal;
(e) has seriously or systematically infringed the provisions adopted pursuant to this Directive governing the operating conditions for credit intermediaries.
2. Where the admission of a credit intermediary is withdrawn by the competent authority of the home Member State, the latter shall notify the competent authorities of the host Member States of such withdrawal as soon as possible and at the latest within 14 days, by any appropriate means.
3. Member States shall ensure that credit intermediaries whose admission has been withdrawn are deleted from the register without undue delay.
Article 34
Supervision of credit intermediaries and appointed representatives
1. Member States shall ensure that credit intermediaries are subject to supervision of their ongoing activities by the competent authorities of the home Member State.
Home Member States shall provide that tied credit intermediaries are to be subject to supervision directly or as part of the supervision of the creditor on behalf of which they act if the creditor is a credit institution authorised in accordance with Directive 2013/36/EU or another financial institution which under national law is subject to an equivalent authorisation and supervision regime. However, if the tied credit intermediary provides services in a Member State other than the home Member State, then the tied credit intermediary shall be subject to supervision directly.
Home Member States which allow credit intermediaries to appoint representatives in accordance with Article 31 shall ensure that such appointed representatives are subject to supervision either directly or as part of the supervision of the credit intermediary on behalf of which it acts.
2. The competent authorities of the Member States in which a credit intermediary has a branch shall be responsible for ensuring that the services provided by the credit intermediary within its territory comply with the obligations laid down in Article 7(1) and Articles 8, 9, 10, 11, 13, 14, 15, 16, 17, 20, 22 and 39 and in measures adopted pursuant thereto.
Where the competent authorities of a host Member State ascertain that a credit intermediary that has a branch within its territory is in breach of the measures adopted in that Member State pursuant to Article 7(1) and Articles 8, 9, 10, 11, 13, 14, 15, 16, 17, 20, 22 and 39, those authorities shall require the credit intermediary concerned to put an end to its irregular situation.
If the credit intermediary concerned fails to take the necessary steps, the competent authorities of the host Member State shall take all appropriate action to ensure that the credit intermediary concerned puts an end to its irregular situation. The nature of that action shall be communicated to the competent authorities of the home Member State.
If, despite the action taken by the host Member State, the credit intermediary persists in breaching the measures referred to in the first subparagraph in force in the host Member State, the host Member State may, after informing the competent authorities of the home Member State, take appropriate action to prevent or to penalise further irregularities and, in so far as necessary, to prevent the credit intermediary from initiating any further transactions within its territory. The Commission shall be informed of any such action without undue delay.
Where the competent authority of the home Member State disagrees with such action taken by the host Member State, it may refer the matter to EBA and request its assistance in accordance with Article 19 of Regulation (EU) No 1093/2010. In that case, EBA may act in accordance with the powers conferred on it by that Article.
3. The competent authorities of the Member States in which the branch is located shall have the right to examine branch arrangements and to request such changes as are strictly needed to fulfil its responsibilities under paragraph 2 and to enable the competent authorities of the home Member State to enforce the obligations under Article 7(2),(3) and (4) and measures adopted pursuant thereto with respect to the services provided by the branch.
4. Where the competent authority of the host Member State has clear and demonstrable grounds for concluding that a credit intermediary acting within its territory under the freedom to provide services is in breach of the obligations arising from the measures adopted pursuant to this Directive or that a credit intermediary that has a branch within its territory is in breach of the obligations arising from the measures adopted pursuant to this Directive, other than those specified in paragraph 2, it shall refer those findings to the competent authority of the home Member State which shall take the appropriate action.
Where the competent authority of the home Member State fails to take any action within one month from obtaining those findings or where, despite the action taken by the competent authority of the home Member State, a credit intermediary persists in acting in a manner that is clearly prejudicial to the interests of the host Member State consumers or orderly functioning of the markets, the competent authority of the host Member State:
(a) shall, after having informed the competent authority of the home Member State take all appropriate action needed to protect consumers and ensure the proper functioning of the markets, including by preventing the offending credit intermediary from initiating any further transactions within its territory. The Commission and EBA shall be informed of such action without undue delay;
(b) may refer the matter to EBA and request its assistance in accordance with Article 19 of Regulation (EU) No 1093/2010. In that case EBA may act in accordance with the powers conferred on it by that Article.
5. Member States shall provide that, where a credit intermediary admitted in another Member State has established a branch within its territory, the competent authorities of the home Member State, in the exercise of their responsibilities and after having informed the competent authorities of the host Member State, may carry out on-site inspections in that branch.
6. The allocation of tasks between Member States specified in this Article shall be without prejudice to the Member States’ competences in relation to fields not covered by this Directive in conformity with their obligations under Union law.
Chapter 12
Admission and supervision of non-credit institutions
Article 35
Admission and supervision of non-credit institutions
Member States shall ensure that non-credit institutions are subject to adequate admission process including entering the non-credit institution in a register and supervision arrangements by a competent authority.
Chapter 13
Cooperation between competent authorities of different Member States
Article 36
Obligation to cooperate
1. Competent authorities of different Member States shall cooperate with each other whenever necessary for the purpose of carrying out their duties under this Directive, making use of their powers, whether set out in this Directive or in national law.
Competent authorities shall render assistance to competent authorities of the other Member States. In particular, they shall exchange information and cooperate in any investigation or supervisory activities.
In order to facilitate and accelerate cooperation, and more particularly the exchange of information, Member States shall designate one single competent authority as a contact point for the purposes of this Directive. Member States shall communicate to the Commission and to the other Member States the names of the authorities which are designated to receive requests for exchange of information or cooperation pursuant to this paragraph.
2. Member States shall take the necessary administrative and organisational measures to facilitate assistance provided for in paragraph 1.
3. Competent authorities of Member States having been designated as contact points for the purposes of this Directive in accordance with paragraph 1 shall without undue delay supply one another with the information required for the purposes of carrying out the duties of the competent authorities, designated in accordance with Article 5, set out in the measures adopted pursuant to this Directive.
Competent authorities exchanging information with other competent authorities under this Directive may indicate at the time of communication that such information must not be disclosed without their express agreement, in which case such information may be exchanged solely for the purposes for which those authorities gave their agreement.
The competent authority having been designated as the contact point may transmit the information received to the other competent authorities, however it shall not transmit the information to other bodies or natural or legal persons without the express agreement of the competent authorities which disclosed it and solely for the purposes for which those authorities gave their agreement, except in duly justified circumstances in which case it shall immediately inform the contact point that supplied the information.
4. A competent authority may refuse to act on a request for cooperation in carrying out an investigation or supervisory activity or to exchange information as provided for in paragraph 3 only where:
(a) such an investigation, on-the-spot verification, supervisory activity or exchange of information might adversely affect the sovereignty, security or public policy of the Member State addressed;
(b) judicial proceedings have already been initiated in respect of the same actions and the same persons before the authorities of the Member State addressed;
(c) final judgement has already been delivered in the Member State addressed in respect of the same persons and the same actions.
In the event of such a refusal, the competent authority shall notify the requesting competent authority accordingly, providing as detailed information as possible.
Article 37
Settlement of disagreements between competent authorities of different Member States
The competent authorities may refer the situation to EBA where a request for cooperation, in particular the exchange of information, has been rejected or has not been acted upon within a reasonable time, and request EBA’s assistance in accordance with Article 19 of Regulation (EU) No 1093/2010. In such cases, EBA may act in accordance with the powers conferred on it by that Article and any binding decision made by EBA in accordance with that Article shall be binding on the competent authorities concerned regardless of whether those competent authorities are members of EBA or not.
▌
Chapter 14
Final provisions
Article 38
Sanctions
1. Member States shall lay down the rules on sanctions applicable to infringements of the national provisions adopted on the basis of this Directive and shall take all measures necessary to ensure that they are implemented. Those sanctions shall be effective, proportionate and dissuasive.
2. Member States shall provide that the competent authority may disclose to the public any administrative sanction that will be imposed for infringement of the measures adopted in the transposition of this Directive, unless such disclosure would seriously jeopardise the financial markets or cause disproportionate damage to the parties involved.
Article 39
Dispute resolution mechanisms
1. Member States shall ensure that appropriate and effective complaints and redress procedures are established for the out-of-court settlement of consumer disputes with creditors, credit intermediaries and appointed representatives in relation to credit agreements, using existing bodies where appropriate. Member States shall ▌ensure that such procedures are applicable to creditors and credit intermediaries and cover the activities of appointed representatives.
2. Member States shall require the bodies responsible for the out-of-court settlement of consumer disputes to cooperate so that cross-border disputes concerning credit agreements can be resolved.
Article 40
Exercise of the delegation
1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.
2. The power to adopt delegated acts referred to in Articles ▌14(9) and 17(8) shall be conferred on the Commission for an indeterminate period of time from …(30).
3. The delegation of power referred to in Articles 14(9) and 17(8) 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 powers 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 Articles 14(9) and 17(8) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months ▌ of notification of that act to the European Parliament and to 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 three months at the initiative of the European Parliament or of the Council ▌.
Article 41
Imperative nature of this Directive
Member States shall ensure that:
(a) consumers may not waive the rights conferred on them by national law transposing this Directive;
(b) the measures they adopt in transposing this Directive cannot be circumvented in a way which could lead to consumers losing the protection granted by this Directive as a result of the way in which agreements are formulated, in particular by integrating credit agreements falling within the scope of this Directive into credit agreements the character or purpose of which would make it possible to avoid the application of those measures.
▌
Article 42
Transposition
1. Member States shall adopt and publish, by …(31), the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those measures.
Where the documents accompanying notification of transposition measures provided by the Member States are not sufficient to assess fully the compliance of those measures with certain provisions of this Directive, the Commission may, upon EBA's request with a view to carrying out its tasks under Regulation (EU) No 1093/2010, or on its own initiative, require Member States to provide more detailed information regarding the transposition of this Directive and the implementation of those measures.
2. Member States shall apply measures referred to in paragraph 1 from …*.
When Member States adopt those measures, 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.
3. Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.
Article 43
Transitional provisions
1. This Directive shall not apply to credit agreements existing before ...(32).
2. Credit intermediaries already carrying out credit intermediation activities set out in point 5 of Article 4 before …(33) and which have not yet been admitted in accordance with the conditions set out in the national law of the home Member State transposing this Directive may continue to carry out those activities in compliance with national law until …(34)*. Where a credit intermediary relies on this derogation it may perform the activities only within their home Member State unless it also satisfies the necessary legal requirements of the host Member States.
3. Creditors, credit intermediaries or appointed representatives performing activities regulated by this Directive before …(35)** shall comply with the national law transposing Article 9 by …**.
Article 44
Review clause
1. The Commission shall undertake a review of this Directive by …(36). The review shall consider the effectiveness and appropriateness of the provisions on consumers and the internal market.
The review shall include the following:
(a) an assessment of the use and consumer understanding of and satisfaction with the ESIS;
(b) an analysis of other pre-contractual disclosures;
(c) an analysis of cross-border business by credit intermediaries and creditors;
(d) an analysis of the evolution of the market for non-credit institutions providing credit agreements relating to residential immovable property;
(e) an assessment on the need for further measures, including a passport for non-credit institutions providing credit agreements relating to residential immovable property;
(f) an examination of the need to introduce additional rights and obligations with regard to the post-contractual stage of credit agreements;
(g) an assessment of whether the scope of this Directive remains appropriate, taking account of its impact on other, substitutable forms of credit;
(h) an assessment of whether additional measures are necessary to ensure the traceability of credit agreements secured against residential immovable property;
(i) an assessment of the availability of data on trends in prices of residential immovable property and on the extent to which data are comparable;
(j) an assessment of whether it continues to be appropriate to apply Directive 2008/48/EC to unsecured credits the purpose of which is the renovation of a residential immovable property involving a total amount of credit above the maximum amount specified in point (c) of Article 2(2) of that Directive;
(k) an assessment of whether the arrangements for the publication of sanctions under Article 38(2) provide sufficient transparency;
(l) an assessment of the proportionality of warnings referred to in Article 11(6) and in Article 13(2) and the potential for further harmonisation of risk warnings.
Article 45
Further initiatives on responsible lending and borrowing
By ...(37), the Commission shall submit a comprehensive report assessing the wider challenges of private over-indebtedness directly linked to credit activity. It will also examine the need for the supervision of credit registers and the possibility for the development of more flexible and reliable markets. That report shall be accompanied, where appropriate, by legislative proposals.
Article 46
Amendment to Directive 2008/48/EC
In Article 2 of Directive 2008/48/EC, the following paragraph is inserted:"
"2a. Notwithstanding point (c) of paragraph 2, this Directive shall apply to unsecured credit agreements the purpose of which is the renovation of a residential immovable property involving a total amount of credit above EUR 75 000."
"
Article 47
Entry into force
This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Article 48
Addressees
This Directive is addressed to the Member States.
Done at …
For the European Parliament For the Council
The President The President
ANNEX I
CALCULATION OF THE ANNUAL PERCENTAGE RATE OF CHARGE (APRC)
I. Basic equation expressing the equivalence of drawdowns on the one hand and repayments and charges on the other.
The basic equation, which establishes the annual percentage rate of charge (APRC), equates, on an annual basis, the total present value of drawdowns on the one hand and the total present value of repayments and payments of charges on the other hand, i.e.:
where:
— X is the APRC
m is the number of the last drawdown
— k is the number of a drawdown, thus 1 ≤ k ≤ m
Ck is the amount of drawdown k
— tk is the interval, expressed in years and fractions of a year, between the date of the first drawdown and the date of each subsequent drawdown, thus t1 = 0
— m' is the number of the last repayment or payment of charges
— l is the number of a repayment or payment of charges
Dl is the amount of a repayment or payment of charges
— sl is the interval, expressed in years and fractions of a year, between the date of the first drawdown and the date of each repayment or payment of charges.
Remarks:
(a) The amounts paid by both parties at different times shall not necessarily be equal and shall not necessarily be paid at equal intervals.
(b) The starting date shall be that of the first drawdown.
(c) Intervals between dates used in the calculations shall be expressed in years or in fractions of a year. A year is presumed to have 365 days (or 366 days for leap years), 52 weeks or 12 equal months. An equal month is presumed to have 30,41666 days (i.e. 365/12) regardless of whether or not it is a leap year.
Where intervals between dates used in the calculations cannot be expressed as a whole number of weeks, months or years, the intervals shall be expressed as a whole number of one of those periods in combination with a number of days. Where using days:
(i) every day shall be counted, including weekends and holidays;
(ii) equal periods and then days shall be counted backwards to the date of the initial drawdown;
(iii) the length of the period of days shall be obtained excluding the first day and including the last day and shall be expressed in years by dividing this period by the number of days (365 or 366 days) of the complete year counted backwards from the last day to the same day of the previous year.
(d) The result of the calculation shall be expressed with an accuracy of at least one decimal place. If the figure at the following decimal place is greater than or equal to 5, the figure at the preceding decimal place shall be increased by one.
(e) The equation can be rewritten using a single sum and the concept of flows (Ak), which will be positive or negative, in other words either paid or received during periods 1 to n, expressed in years, i.e.:
S being the present balance of flows. If the aim is to maintain the equivalence of flows, the value will be zero.
II. Additional assumptions for the calculation of the APRC
(a) If a credit agreement gives the consumer freedom of drawdown, the total amount of credit shall be deemed to be drawn down immediately and in full.
(b) If a credit agreement provides different ways of drawdown with different charges or borrowing rates, the total amount of credit shall be deemed to be drawn down at the highest charge and borrowing rate applied to the most common drawdown mechanism for this type of credit agreement.
(c) If a credit agreement gives the consumer freedom of drawdown in general but imposes, amongst the different ways of drawdown, a limitation with regard to the amount of credit and period of time, the amount of credit shall be deemed to be drawn down on the earliest date provided for in the credit agreement and in accordance with those drawdown limits. ▌
(d) If different borrowing rates and charges are offered for a limited period or amount, the highest borrowing rate and charges shall be deemed to be the borrowing rate and charges for the whole duration of the credit agreement. ▌
(e) For credit agreements for which a fixed borrowing rate is agreed in relation to the initial period, at the end of which a new borrowing rate is determined and subsequently periodically adjusted according to an agreed indicator or internal reference rate the calculation of the APRC shall be based on the assumption that, at the end of the fixed borrowing rate period, the borrowing rate is the same as at the time of calculation of the APRC, based on the value of the agreed indicator or internal reference rate at that time, but is not less than the fixed borrowing rate.
(f) If the ceiling applicable to the credit has not yet been agreed, that ceiling is assumed to be EUR 170 000. In the case of credit agreements, other than contingent liabilities or guarantees, the purpose of which is not to acquire or retain a right in immovable property or land, overdrafts, deferred debit cards or credit cards this ceiling is assumed to be EUR 1 500.
(g) In the case of credit agreements other than overdrafts, bridging loans, shared equity credit agreements, contingent liabilities or guarantees and open-ended credit agreements as referred to in the assumptions set out in points (i), (j), (k), (l) and (m):
(i) if the date or amount of a repayment of capital to be made by the consumer cannot be ascertained, it shall be assumed that the repayment is made at the earliest date provided for in the credit agreement and is for the lowest amount for which the credit agreement provides;
(ii) if the interval between the date of initial drawdown and the date of the first payment to be made by the consumer cannot be ascertained, it shall be assumed to be the shortest interval.
(h) Where the date or amount of a payment to be made by the consumer cannot be ascertained on the basis of the credit agreement or the assumptions set out in points (g), (i), (j), (k), (l) and (m) it shall be assumed that the payment is made in accordance with the dates and conditions required by the creditor and, when these are unknown:
(i) interest charges are paid together with the repayments of the capital;
(ii) non-interest charges expressed as a single sum are paid at the date of the conclusion of the credit agreement;
(iii) non-interest charges expressed as several payments are paid at regular intervals, commencing with the date of the first repayment of capital, and if the amount of such payments is not known they shall be assumed to be equal amounts;
(iv) the final payment clears the balance of capital, interest and other charges, if any.
(i) In the case of an overdraft facility, the total amount of credit shall be deemed to be drawn down in full and for the whole duration of the credit agreement. If the duration of the overdraft facility is not known, the APRC shall be calculated on the assumption that the duration of the credit is three months.
(j) In the case of a bridging loan, the total amount of credit shall be deemed to be drawn down in full and for the whole duration of the credit agreement. If the duration of the credit agreement is not known the APRC shall be calculated on the assumption that the duration of the credit is 12 months.
(k) In the case of an open ended credit agreement, other than an overdraft facility and bridging loan, it shall be assumed that:
(i) for credit agreements, the purpose of which is to acquire or retain rights in immovable property the credit is provided for a period of 20 years starting from the date of the initial drawdown, and that the final payment made by the consumer clears the balance of capital, interest and other charges, if any; in the case of credit agreements the purpose of which is not to acquire or retain rights in immovable property or which are drawn down by deferred debit cards or credit cards, this period shall be of one year;
(ii) the capital is repaid by the consumer in equal monthly payments, commencing one month after the date of the initial drawdown. However, in cases where the capital must be repaid only in full, in a single payment, within each payment period, successive drawdowns and repayments of the entire capital by the consumer shall be assumed to occur over the period of one year. Interest and other charges shall be applied in accordance with those drawdowns and repayments of capital and as provided for in the credit agreement.
For the purposes of this point, an open-ended credit agreement is a credit agreement without fixed duration and includes credits which must be repaid in full within or after a period but, once repaid, become available to be drawn down again.
(l) In the case of contingent liabilities or guarantees:
(i) the total amount of credit shall be deemed to be drawn down in full as a single amount at the earlier of:
(a) the latest draw down date permitted under the credit agreement being the potential source of the contingent liability or guarantee; or
(b) in the case of a rolling credit agreement at the end of the initial period prior to the roll over of the agreement.
(m) In the case of shared equity credit agreements:
(i) the payments by consumers shall be deemed to occur at the latest date or dates permitted under the credit agreement;
(ii) percentage increases in value of the immovable property which secures the shared equity credit agreement, and the rate of any inflation index referred to in the agreement, shall be assumed to be a percentage equal to the higher of the current central bank target inflation rate or the level of inflation in the Member State where the immovable property is located at the time of conclusion of the credit agreement or 0 % if those percentages are negative.
ANNEX II
European Standardised Information Sheet (ESIS)
PART A
The text in this model shall be reproduced as such in the ESIS. Indications between square brackets shall be replaced with the corresponding information. Instructions for the creditor or, where applicable, credit intermediary on how to complete the ESIS are provided in Part B.
Wherever the words 'where applicable' are indicated, the creditor shall provide the information required if it is relevant to the credit agreement. Where the information is not relevant, the creditor shall delete the information in question or the entire section (for example, in cases where the section is not applicable). Where the entire section is deleted, the numbering of the ESIS sections shall be adjusted accordingly.
The information below ▌ shall be provided in a single document. The font used shall be clearly readable. Bold font, shading or larger font sizes shall be used for the information elements to be highlighted. All applicable risk warnings shall be highlighted.
ESIS Model
(Introductory text)
This document was produced for [name of consumer] on [current date].
This document was produced on the basis of the information that you have provided so far and on the current financial market conditions.
The information below remains valid until [validity date], (where applicable) apart from the interest rate and other costs. After that date, it may change in line with market conditions.
(Where applicable) This document does not constitute an obligation for [name of creditor] to grant you a loan.
1. Lender
[Name]
[Telephone number]
[Geographical address]
(Optional) [E-mail address]
(Optional) [Fax number]
(Optional) [Web address]
(Optional)[Contact person/point]
(Where applicable information as to whether advisory services are being provided:) [(We recommend, having assessed your needs and circumstances, that you take out this mortgage./We are not recommending a particular mortgage for you. However, based on your answers to some questions, we are giving you information about this mortgage so that you can make your own choice.)]
2. (Where applicable) Credit intermediary
[Name]
[Telephone number]
[Geographical address]
(Optional) [E-mail address]
(Optional) [Fax number]
(Optional) [Web address]
(Optional)[Contact person/point]
(Where applicable [information as to whether advisory services are being provided]) [(We recommend, having assessed your needs and circumstances, that you take out this mortgage./We are not recommending a particular mortgage for you. However, based on your answers to some questions, we are giving you information about this mortgage so that you can make your own choice.)]
[Remuneration]
3. Main features of the loan
Amount and currency of the loan to be granted: [value][currency]
(Where applicable) This loan is not in [national currency of the borrower].
(Where applicable) The value of your loan in [national currency of the borrower] could change.
(Where applicable) For example, if the value of [national currency of the borrower] fell by 20 % relative to [credit currency], the value of your loan would increase to [insert amount in national currency of the borrower]. However, it could be more than this if the value of [national currency of the borrower] falls by more than 20 %.
(Where applicable) The maximum value of your loan will be [insert amount in national currency of the borrower].(Where applicable) You will receive a warning if the credit amount reaches [insert amount in national currency of the borrower]. (Where applicable) You will have the opportunity to [insert right to renegotiate foreign currency loan or right to convert loan into [relevant currency] and conditions].
Duration of the loan: [duration]
[Type of loan]
[Type of applicable interest rate]
Total amount to be reimbursed:
This means that you will pay back [amount] for every [unit of the currency] borrowed.
(Where applicable) [This /Part of this] is an interest-only loan. You will still owe [insert amount of loan on an interest-only basis] at the end of the mortgage term.
(Where applicable) Value of the property assumed to prepare this information sheet: [insert amount]
(Where applicable) Maximum available loan amount relative to the value of the property [insert ratio] or Minimum value of the property required to borrow the illustrated amount [insert amount]
(Where applicable) [Security]
4. Interest rate and other costs
The annual percentage rate of charge (APRC) is the total cost of the loan expressed as an annual percentage. The APRC is provided to help you to compare different offers.
The APRC applicable to your loan is [APRC].
It comprises:
Interest rate [value in percentage or, where applicable, indication of a reference rate and percentage value of creditor’s spread]
[Other components of the APRC]
Costs to be paid on a one-off basis
(Where applicable) You will need to pay a fee to register the mortgage. [Insert amount of fee where known or basis for calculation.]
Costs to be paid regularly
(Where applicable) This APRC is calculated using assumptions regarding the interest rate.
(Where applicable) Because [part of] your loan is a variable interest rate loan, the actual APRC could be different from this APRC if the interest rate for your loan changes. For example, if the interest rate rose to [scenario as described in Part B], the APRC could increase to [insert illustrative APRC corresponding to the scenario].
(Where applicable) Please note that this APRC is calculated on the basis that the interest rate remains at the level fixed for the initial period throughout the duration of the contract.
(Where applicable) The following costs are not known to the lender and are therefore not included in the APRC: [Costs]
(Where applicable)You will need to pay a fee to register the mortgage.
Please make sure that you are aware of all other taxes and costs associated with your loan.
5. Frequency and number of payments
Repayment frequency: [frequency]
Number of payments: [number]
6. Amount of each instalment
[Amount] [currency]
Your income may change. Please consider whether you will still be able to afford your [frequency] repayment instalments if your income falls.
(Where applicable) Because [this/part of this] is an interest-only loan you will need to make separate arrangements to repay the [insert amount of loan on an interest-only basis] you will owe at the end of the mortgage term. Remember to add any extra payments you will need to make to the instalment amount shown here.
(Where applicable) The interest rate on [part of] this loan can change. This means the amount of your instalments could increase or decrease. For example, if the interest rate rose to [scenario as described in Part B] your payments could increase to [insert instalment amount corresponding to the scenario].
(Where applicable) The value of the amount you have to pay in [national currency of the borrower] each [frequency of instalment] could change. (Where applicable) Your payments could increase to [insert maximum amount in national currency of the borrower] each [insert period]. (Where applicable) For example, if the value of [national currency of the borrower] fell by 20 % relative to [credit currency] you would have to pay an extra [insert amount in national currency of the borrower] each [insert period]. Your payments could increase by more than this.
(Where applicable) The exchange rate used for converting your repayment in [credit currency] to [national currency of the borrower] will be the rate published by [name of institution publishing exchange rate] on [date] or will be calculated on [date] using [insert name of benchmark or method of calculation].
(Where applicable) [Details on tied savings products, deferred-interest loans]
This table shows the amount to be paid every [frequency].
The instalments (column [relevant no.]) are the sum of interest to be paid (column [relevant no.]), where applicable, capital paid (column [relevant no.]) and, where applicable, other costs (column [relevant no.]). (Where applicable) The costs in the other costs column relate to [list of costs]. Outstanding capital (column [relevant no.]) is the amount of the loan that remains to be reimbursed after each instalment.
[Table]
8. Additional obligations
The borrower must comply with the following obligations in order to benefit from the lending conditions described in this document.
[Obligations]
(Where applicable) Please note that the lending conditions described in this document (including the interest rate) may change if these obligations are not complied with.
(Where applicable) Please note the possible consequences of terminating at a later stage any of the ancillary services relating to the loan:
[Consequences]
9. Early repayment
You have the possibility to repay this loan early, either fully or partially.
(Where applicable) [Conditions]
(Where applicable) Exit charge: [insert amount or, where not possible, the method of calculation]
(Where applicable) Should you decide to repay this loan early, please contact us to ascertain the exact level of the exit charge at that moment.
10. Flexible features
(Where applicable) [Information on portability/subrogation] You have the possibility to transfer this loan to another [lender][or] [property]. [Insert conditions]
(Where applicable) You do not have the possibility to transfer this loan to another [lender] [or] [property].
(Where applicable) Additional features: [insert explanation of additional features listed in Part B and, optionally, any other features offered by the lender as part of the credit agreement not referred to in previous sections].
11. Other rights of the borrower
(Where applicable) You have [length of reflection period] after [point in time when the reflection period begins] to reflect before committing yourself to taking out this loan. (Where applicable) Once you have received the credit contract from the lender, you may not accept it before the end of [length of reflection period].
(Where applicable) For a period of [length of withdrawal period] after [point in time when the withdrawal period begins] you may exercise your right to cancel the agreement. [Conditions] [Insert procedure]
(Where applicable) You may lose your right to cancel the agreement if, during that period, you buy or sell a property connected to this credit agreement.
(Where applicable) Should you decide to exercise your right of withdrawal [from the credit agreement], please verify whether you will remain bound by your other obligations relating to the loan [including the ancillary services relating to the loan] [, referred to in Section 8].
12. Complaints
If you have a complaint please contact [insert internal contact point and source of information on procedure].
(Where applicable) Maximum time for handling the complaint [period of time]
(Where applicable) [If we do not resolve the complaint to your satisfaction internally,] you can also contact: [insert name of external body for out-of-court complaints and redress] (Where applicable) or you can contact FIN-NET for details of the equivalent body in your own country.
13. Non-compliance with the commitments linked to the loan: consequences for the borrower
[Types of non-compliance]
[Financial and/or legal consequences]
Should you encounter difficulties in making your [frequency] payments, please contact us straight away to explore possible solutions.
(Where applicable) As a last resort, your home may be repossessed if you do not keep up with payments.
(Where applicable) [Indication of the law applicable to the credit contract].
(Where the lender intends to use a language different from the language of the ESIS) Information and contractual terms will be supplied in [language]. With your consent, we intend to communicate in [language/s] during the duration of the credit agreement.
[Insert statement on right to be provided with or offered, as applicable, a draft credit agreement]
(Where applicable) 14. Additional information ▌
15. Supervisor
This lender is supervised by [Name(s), and web address(es) of supervisory authority/ies]
(Where applicable) This credit intermediary is supervised by [Name and web address of supervisory authority].
▌PART B
Instructions to complete the ESIS
In completing the ESIS, at least the following instructions shall be followed. Member States may however elaborate or further specify the instructions for completing the ESIS.
Section 'Introductory text'
(1) The validity date shall be properly highlighted. For the purpose of this section, the ‘validity date’ means the length of time the information, e.g. the borrowing rate, contained in the ESIS will remain unchanged and will apply should the creditor decide to grant the credit within this period of time. Where the determination of the applicable borrowing rate and other costs depends on the results of the selling of underlying bonds, the eventual borrowing rate and other costs may be different from those stated. In those circumstances only, it shall be stipulated that the validity date does not apply to the borrowing rate and other costs by adding the words: “apart from the interest rate and other costs”.
Section '1. Lender'
(1) Name, telephone number, and geographical address ▌of the creditor shall refer to the contact information that the consumer may use for future correspondence.
(2) Information on the e-mail address, fax number, web address and contact person/point is optional.
(3) In line with Article 3 of Directive 2002/65/EC, where the transaction is being offered at a distance, the creditor shall indicate, where applicable, the name and geographical address of its representative in the Member State of residence of the consumer. Indication of the telephone number, e-mail address and web address of the representative of the credit provider is optional.
(4) Where Section 2 is not applicable, the creditor shall inform the consumer whether advisory services are being provided and on what basis using the wording in Part A.
Where the product information is being provided to the consumer by a credit intermediary, that intermediary shall include the following information:
(1) Name, telephone number and geographical address of the credit intermediary shall refer to the contact information that the consumer may use for future correspondence.
(2) Information on the e-mail address, fax number, web address and contact person/point is optional.
(3) The credit intermediary shall inform the consumer whether advisory services are being provided and on what basis using the wording in Part A.
(4) An explanation of how the credit intermediary is being remunerated. Where it is receiving commission from a creditor, the amount and, where different from the name in Section 1, the name of the creditor shall be provided.
Section '3. Main features of the loan'
(1) This section shall clearly explain the main characteristics of the credit, including the value and currency and the potential risks associated with the borrowing rate, including the ones referred to in point (8), and amortisation structure.
(2) Where the credit currency is different from the national currency of the consumer, the creditor shall indicate that the consumer will receive a regular warning at least when the exchange rate fluctuates by more than 20 %, where applicable the right to convert the currency of the credit agreement or to the possibility to renegotiate the conditions and any other arrangements available to the consumer to limit their exposure to exchange rate risk. Where there is a provision in the credit agreement to limit the exchange rate risk, the creditor shall indicate the maximum amount the consumer could have to pay back. Where there is no provision in the credit agreement to limit the exchange rate risk to which the consumer is exposed to a fluctuation in the exchange rate of less than 20 %, the creditor shall indicate an illustration of the effect of a 20 % fall in the value of consumer's national currency relative to the credit currency on the value of the credit.
(3) The duration of the credit shall be expressed in years or months, whichever is the most relevant. Where the duration of the credit can vary during the lifetime of the contract, the creditor shall explain when and under which conditions this can occur. Where the credit is open-ended, for example, for a secured credit card, the creditor shall clearly state that fact.
(4) The type of credit shall be clearly indicated (e.g. mortgage credit, home loan, secured credit card). The description of the type of credit shall clearly indicate how the capital and the interest shall be reimbursed during the life of the credit (i.e. the amortisation structure), specifying clearly whether the credit agreement is on capital repayment or interest-only basis, or a mixture of the two.
(5) Where all or part of the credit is an interest-only credit, a statement clearly indicating that fact shall be inserted prominently at the end of this section using the wording in Part A.
(6) This section shall explain whether the borrowing rate is fixed or variable and, where applicable, the periods during which it will remain fixed; the frequency of subsequent revisions and the existence of limits to the borrowing rate variability, such as caps or floors.
The formula used to revise the borrowing rate and its different components (e.g. reference rate, interest rate spread) shall be explained. The creditor shall indicate, e.g. by means of a web address, where further information on the indices or rates used in the formula can be found, e.g. Euribor or central bank reference rate.
(7) If different borrowing rates apply in different circumstances, the information shall be provided on all applicable rates.
(8) The 'total amount to be reimbursed' corresponds to the total amount payable by the consumer. It shall be shown as the sum of the credit amount and the total cost of the credit to the consumer. Where the borrowing rate is not fixed for the duration of the contract, it shall be highlighted that this amount is illustrative and may vary in particular in relation with the variation in the borrowing rate.
(9) Where the credit will be secured by a mortgage on the immovable property or another comparable security or by a right related to immovable property, the creditor shall draw the consumer’s attention to this. Where applicable the creditor shall indicate the assumed value of the immovable property or other security used for the purpose of preparing this information sheet.
(10) The creditor shall indicate, where applicable, either:
a) 'maximum available loan amount relative to the value of the property', indicating the loan-to-value ratio. This ratio is to be accompanied by an example in absolute terms of the maximum amount that can be borrowed for a given property value; or
b) the 'minimum value of the property required by the creditor to lend the illustrated amount'.
(11) Where credits are multi-part credits (e.g. concurrently part fixed rate, part variable rate), this shall be reflected in the indication of the type of credit and the required information shall be given for each part of the credit.
Section '4. Interest rate' and other costs
(1) The reference to ‘interest rate’ corresponds to the borrowing rate or rates.
(2) The borrowing rate shall be mentioned as a percentage value. Where the borrowing rate is variable and based on a reference rate the creditor may indicate the borrowing rate by stating a reference rate and a percentage value of creditor’s spread. The creditor shall however indicate the value of the reference rate valid on the day of issuing the ESIS.
Where the borrowing rate is variable the information shall include: (a) the assumptions used to calculate the APRC; (b) where relevant, the applicable caps and floors and (c) a warning that the variability could affect the actual level of the APRC. In order to attract the consumer's attention the font size used for the warning shall be bigger and shall figure prominently in the main body of the ESIS. The warning shall be accompanied by an illustrative example on the APRC. Where there is a cap on the borrowing rate, the example shall assume that the borrowing rate rises at the earliest possible opportunity to the highest level foreseen in the credit agreement. Where there is no cap the example shall illustrate the APRC at the highest borrowing rate in at least the last 20 years, or where the underlying data for the calculation of the borrowing rate is available for a period of less than 20 years the longest period for which such data is available, based on the highest value of any external reference rate used in calculating the borrowing rate where applicable or the highest value of a benchmark rate specified by a competent authority or EBA where the creditor does not use an external reference rate. Such requirement shall not apply to credit agreements where the borrowing rate is fixed for a material initial period of several years and may then be fixed for a further period following negotiation between the creditor and the consumer. For credit agreements where the borrowing rate is fixed for a material initial period of several years and may then be fixed for a further period following negotiation between the creditor and the consumer, the information shall include a warning that the APRC is calculated on the basis of the borrowing rate for the initial period. The warning shall be accompanied by an additional, illustrative APRC calculated in accordance with Article 17(4). Where credits are multi-part credits (e.g. concurrently part fixed rate, part variable rate), the information shall be given for each part of the credit.
(3) In the section on ‘other components of the APRC’ all the other costs contained in the APRC shall be listed, including one-off costs such as administration fees, and regular costs, such as annual administration fees. The creditor shall list each of the costs by category (costs to be paid on a one-off basis, costs to be paid regularly and included in the instalments, costs to be paid regularly but not included in the instalments), indicating their amount, to whom they are to be paid and when. This does not have to include costs incurred for breaches of contractual obligations. Where the amount is not known, the creditor shall provide an indication of the amount if possible, or if not possible, how the amount will be calculated and specify that the amount provided is indicative only. Where certain costs are not included in the APRC because they are unknown to the creditor, this shall be highlighted.
Where the consumer has informed the creditor of one or more components of his preferred credit, such as the duration of the credit agreement and the total amount of credit, the creditor shall, where possible, use those components; if a credit agreement provides different ways of drawdown with different charges or borrowing rates and the creditor uses the assumptions set out in Part II of Annex I, it shall indicate that other drawdown mechanisms for this type of credit agreement may result in a higher APRC. Where the conditions for drawdown are used for calculating the APRC, the creditor shall highlight the charges associated with other drawdown mechanisms that are not necessarily the ones used in calculating the APRC.
(4) Where a fee is payable for registration of the mortgage or comparable security that shall be disclosed in this section with the amount, where known, or where this is not possible the basis for determining the amount. Where the fees are known and included in the APRC the existence and amount of the fee shall be listed under "Costs to be paid on a one-off basis". Where the fees are not known to the creditor and therefore not included in the APRC the existence of the fee shall be clearly mentioned in the list of costs which are not known to the creditor. In either case the standardised wording in Part A shall be used under the appropriate heading.
Section '5. Frequency and number of payments'
(1) Where payments are to be made on a regular basis, the frequency of payments shall be indicated (e.g. monthly). Where the frequency of payments will be irregular, this shall be clearly explained to the consumer.
(2) The number of payments indicated shall cover the whole duration of the credit.
Section '6. Amount of each instalment'
(1) The credit currency and currency of the instalments shall be clearly indicated.
(2) Where the amount of the instalments may change during the life of the credit, the creditor shall specify the period during which that initial instalment amount will remain unchanged and when and how frequently afterwards it will change.
(3) Where all or part of the credit is an interest-only credit, a statement clearly indicating that fact, shall be inserted prominently at the end of this section using the wording in Part A.
If there is a requirement for the consumer to take out a tied savings product as a condition for being granted an interest-only credit secured by a mortgage or another comparable security, the amount and frequency of any payments for this product shall be provided.
(4) Where the borrowing rate is variable the information shall include a statement indicating that fact, using the wording in Part A and an illustration of a maximum instalment amount. Where there is a cap, the illustration shall show the amount of the instalments if the borrowing rate rises to the level of the cap. Where there is no cap, the worst case scenario shall illustrate the level of instalments at the highest borrowing rate in the last 20 years, or where the underlying data for the calculation of the borrowing rate is available for a period of less than 20 years the longest period for which such data is available, based on the highest value of any external reference rate used in calculating the borrowing rate where applicable, or the highest value of a benchmark rate specified by a competent authority or EBA where the creditor does not use an external reference rate. The requirement to provide an illustrative example shall not apply to credit agreements where the borrowing rate is fixed for a material initial period of several years and may then be fixed for a further period following negotiation between the creditor and the consumer. Where credits are multi-part credits (e.g. concurrently part fixed rate, part variable rate), the information shall be given for each part of the credit, and in total.
(5) (Where applicable) Where the credit currency is different from the consumer's national currency or where the credit is indexed to a currency which is different from the consumer’s national currency, the creditor shall include a numerical example clearly showing how changes to the relevant exchange rate may affect the amount of the instalments using the wording in Part A. That example shall be based on a 20 % reduction in the value of the consumer’s national currency together with a prominent statement that the instalments could increase by more than the amount assumed in that example. Where there is a cap which limits that increase to less than 20 %, the maximum value of the payments in the consumer's currency shall be given instead and the statement on the possibility of further increases omitted.
(6) Where the credit is fully or partly a variable rate credit and point 3 applies, the illustration in point 5 shall be given on the basis of the instalment amount referred to in point 1.
(7) Where the currency used for the payment of instalments is different from the credit currency or where the amount of each instalment expressed in the consumer’s national currency depends on the corresponding amount in a different currency, this section shall indicate the date at which the applicable exchange rate is calculated and either the exchange rate or the basis on which it will be calculated and the frequency of their adjustment. Where applicable such indication shall include the name of institution publishing the exchange rate.
(8) Where the credit is a deferred-interest credit under which interest due is not fully repaid by the instalments and is added to the total amount of credit outstanding, there shall be an explanation of: how and when deferred interest is added to the credit as a cash amount; and what the implications are for the consumer in terms of their remaining debt.
Section '7. Illustrative repayment table'
(1) This section shall be included where the credit is a deferred interest credit under which interest due is not fully repaid by the instalments and is added to the total amount of credit outstanding or where the borrowing rate is fixed for the duration of the credit agreement. Member States may provide that the illustrative amortisation table is compulsory in other cases.
Where the consumer has the right to receive a revised amortisation table, this shall be indicated along with the conditions under which the consumer has that right.
(2) Member States may require that where the borrowing rate may vary during the lifetime of the credit, the creditor shall indicate the period during which that initial borrowing rate will remain unchanged.
(3) The table to be included in this section shall contain the following columns: 'repayment schedule' (e.g. month 1, month 2, month 3), 'amount of the instalment', 'interest to be paid per instalment', 'other costs included in the instalment' (where relevant), 'capital repaid per instalment' and 'outstanding capital after each instalment'.
(4) For the first repayment year the information shall be given for each instalment and a subtotal shall be indicated for each of the columns at the end of that first year. For the following years, the detail can be provided on an annual basis. An overall total row shall be added at the end of the table and shall provide the total amounts for each column. The total cost of the credit paid by the consumer (i.e. the overall sum of the 'amount of the instalment' column) shall be clearly highlighted and presented as such.
(5) Where the borrowing rate is subject to revision and the amount of the instalment after each revision is unknown, the creditor may indicate in the amortisation table the same instalment amount for the whole credit duration. In such a case, the creditor shall draw that fact to the attention of the consumer by visually differentiating the amounts which are known from the hypothetical ones (e.g. using a different font, borders or shading). In addition, a clearly legible text shall explain for which periods the amounts represented in the table may vary and why.
Section '8. Additional obligations'
(1) The creditor shall refer in this section to obligations such as the obligation to insure the immovable property, to purchase life insurance, to have a salary paid into an account with the creditor or to buy any other product or service. For each obligation, the creditor shall specify towards whom and by when the obligation needs to be fulfilled.
(2) The creditor shall specify the duration of the obligation, e.g. until the end of the credit agreement. The creditor shall specify for each obligation any costs to be paid by the consumer, which are not included in the APRC.
(3) The creditor shall state whether it is compulsory for the consumer to hold any ancillary services to obtain the credit on the stated terms, and if so whether the consumer is obliged to purchase them from the creditor's preferred supplier or whether they may be purchased from a provider of consumer’s choice. Where such possibility is conditional on the ancillary services meeting certain minimum characteristics, such characteristics shall be described in this section.
Where the credit agreement is bundled with other products the creditor shall state the key features of those other products and clearly state whether the consumer has a right to terminate the credit agreement or the bundled products separately, the conditions for and implications of doing so, and, where applicable, of the possible consequences of terminating the ancillary services required in connection with the credit agreement.
Section '9. Early repayment'
(1) The creditor shall indicate under what conditions the consumer can repay the credit early, either fully or partially.
(2) In the section on exit charges the creditor shall draw the consumer's attention to any exit charge or other costs payable on early repayment in order to compensate the creditor and where possible indicate their amount. In cases where the amount of compensation would depend on different factors, such as the amount repaid or the prevailing interest rate at the moment of the early repayment, the creditor shall indicate how the compensation will be calculated and provide the maximum amount that the charge might be, or where this is not possible, an illustrative example in order to demonstrate to the consumer the level of compensation under different possible scenarios.
Section '10. Flexible features
(1) Where applicable, the creditor shall explain the possibility to and conditions for transferring the credit to another creditor or immovable property.
(2) (Where appropriate) Additional features: Where the product contains any of the features listed in point 5, this section must list these features and provide a brief explanation of: the circumstances in which the consumer can use the feature; any conditions attached to the feature; if the feature being part of the credit secured by a mortgage or comparable security means that the consumer loses any statutory or other protections usually associated with the feature; and the firm providing the feature (if not the creditor).
(3) If the feature contains any additional credit, then this section must explain to the consumer: the total amount of credit (including the credit secured by the mortgage or comparable security); whether the additional credit is secured or not; the relevant borrowing rates; and whether it is regulated or not. Such additional credit amount shall either be included in the original creditworthiness assessment or, if it is not, this section shall make clear that the availability of the additional amount is dependent on a further assessment of the consumer's ability to repay.
(4) If the feature involves a savings vehicle, the relevant interest rate must be explained.
(5) The possible additional features are: 'Overpayments/Underpayments' [paying more or less than the instalment ordinarily required by the amortisation structure]; 'Payment holidays' [periods where the consumer is not required to make payments]; 'Borrow back' [ability for the consumer to borrow again funds already drawn down and repaid]; 'Additional borrowing available without further approval'; 'Additional secured or unsecured borrowing' [in accordance with point 3 above]; 'Credit card'; 'Linked current account'; and 'Linked savings account'.
(6) The creditor may include any other features offered by the creditor as part of the credit agreement not mentioned in previous sections.
Section '11. Other rights of the borrower
(1) The creditor shall clarify the right(s) of e.g. withdrawal or reflection and where applicable other rights such as, portability (including subrogation) that exist, specify the conditions to which this/these right(s) is subject, the procedure that the consumer will need to follow in order to exercise this/these right(s), inter alia, the address to which the notification of withdrawal shall be sent, and the corresponding fees (where applicable).
(2) Where a reflection period or right of withdrawal for the consumer applies this shall be clearly mentioned.
(3) In line with Article 3 of Directive 2002/65/EC, where the transaction is being offered at a distance, the consumer shall be informed of the existence or absence of a right of withdrawal.
Section '12. Complaints'
(1) This Section shall indicate the internal contact point [name of the relevant department] and a means of contacting them to complain [Geographical address] or [Telephone number] or [Contact person:] [contact details] and a link to the complaints procedure on the relevant page of a website or similar information source.
(2) It shall indicate the name of the relevant external body for out-of-court complaints and redress and where using the internal complaint procedure is a precondition for access to that body, indicate that fact using the wording in Part A.
(3) In the case of credit agreements with a consumer who is resident in another Member State, the creditor shall refer to the existence of FIN-NET (http://ec.europa.eu/internal_market/fin-net/).
Section '13.
Non-compliance with the commitments linked to the credit:
consequences for the borrower'
(1) Where non-observance of any of the consumer’s obligations linked to the credit may have financial or legal consequences for the consumer, the creditor shall describe in this section the different main cases (e.g. late payments/default, failure to respect the obligations set out in Section 8 'Additional obligations') and indicate where further information could be obtained.
(2) For each of those cases, the creditor shall specify, in clear, easy comprehensible terms, the sanctions or consequences to which they may give rise. Reference to serious consequences shall be highlighted.
(3) Where the immovable property used to secure the credit may be returned or transferred to the creditor, if the consumer does not comply with the obligations, this section shall include a statement indicating that fact, using the wording in Part A.
Section '14. Additional information
(1) In the case of distance marketing, this section will include any clause stipulating the law applicable to the credit agreement or the competent court.
(2) Where the creditor intends to communicate with the consumer during the life of the contract in a language different from the language of the ESIS that fact shall be included and the language of communication named. This is without prejudice to point (g) of point 3 of paragraph 1 of Article 3 of Directive 2002/65/EC.
(3) The creditor or credit intermediary shall state the consumer’s right to be provided with or offered, as applicable, a copy of the draft credit agreement at least once an offer binding on the creditor has been made.
Section '15. Supervisor
(1) The relevant authority or authorities for the supervision of the pre-contractual stage of lending shall be indicated.
ANNEX III
Minimum knowledge and competence requirements
1. The minimum knowledge and competence requirements for creditors’, credit intermediaries’ and appointed representatives’ staff referred to in Article 9 and for persons involved in the management of credit intermediaries or appointed representatives referred to in point (c) of Article 29(2) and Article 31(2) need to include at least:
(a) appropriate knowledge of credit products within the scope of Article 3 and the ancillary services typically offered with them;
(b) appropriate knowledge of the laws related to the credit agreements for consumers, in particular consumer protection;
(c) appropriate knowledge and understanding of the immovable property purchasing process;
(d) appropriate knowledge of security valuation;
(e) appropriate knowledge of organisation and functioning of land registers;
(f) appropriate knowledge of the market in the relevant Member State;
(g) appropriate knowledge of business ethics standards;
(h) appropriate knowledge of the consumer’s creditworthiness assessment process or where applicable, competence in assessing consumers' creditworthiness;
(i) appropriate level of financial and economic competency.
2. When establishing minimum knowledge and competence requirements Member States may differentiate between the levels and types of requirements applicable to the staff of creditors, the staff of credit intermediaries or appointed representatives and the management of credit intermediaries or appointed representatives.
3. Member States shall determine the appropriate level of knowledge and competence on the basis of:
(a) professional qualifications, e.g. diplomas, degrees, training, competency tests; or
(b) professional experience, which may be defined as a minimum number of years working in areas related to the origination, distribution or intermediation of credit products.
After …(38), the determination of the appropriate level of knowledge and competence shall not be based solely on the methods listed in point (b) of the first subparagraph.
European Parliament legislative resolution of 10 September 2013 on the proposal for a regulation of the European Parliament and of the Council on insider dealing and market manipulation (market abuse) (COM(2011)0651 – C7-0360/2011 – 2011/0295(COD))
– having regard to the Commission proposal to Parliament and the Council (COM(2011)0651) and the amended Commission proposal to Parliament and the Council (COM(2012)0421),
– 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 (C7–0360/2011),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to the opinion of the European Central Bank of 22 March 2012(1),
– having regard to the opinion of the European Economic and Social Committee of 28 March 2012(2),
– having regard to the undertaking given by the Council representative by letter of 26 June 2013 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 Environment, Public Health and Food Safety and of the Committee on Legal Affairs (A7-0347/2012),
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 10 September 2013 with a view to the adoption of Regulation (EU) No .../2014 of the European Parliament and of the Council on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC
(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) No 596/2014.)
Amendment of Council Regulation (EC) No 2187/2005 for the conservation of fishery through technical measures in the Baltic Sea, the Belts and the Sound ***I
European Parliament legislative resolution of 10 September 2013 on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 2187/2005 for the conservation of fishery through technical measures in the Baltic Sea, the Belts and the Sound (COM(2012)0591 – C7-0332/2012 – 2012/0285(COD))
– having regard to the Commission proposal to Parliament and the Council (COM(2012)0591),
– having regard to Article 294(2) and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7‑0332/2012),
– 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 11 July 2012(1),
– having regard to Rule 55 of its Rules of Procedure,
– having regard to the report of the Committee on Fisheries (A7-0259/2013),
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 10 September 2013 with a view to the adoption of Regulation (EU) No .../2013 of the European Parliament and of the Council amending Council Regulation (EC) No 2187/2005 for the conservation of fishery through technical measures in the Baltic Sea, the Belts and the Sound
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(2) 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) Council Regulation (EC) No 2187/2005(4) confers powers upon the Commission in order to implement some of the provisions of that Regulation.
(2) As a consequence of the entry into force of the Lisbon Treaty, the powers conferred upon the Commission under Regulation (EC) No 2187/2005 need to be aligned to Articles 290 and 291 of the Treaty on the Functioning of the European Union.
(3) Implementing powers should be conferred on the Commission in order to ensure uniform conditions for the implementation of Regulation (EC) No 2187/2005 as regards measures taken by Member States which apply only to fishing vessels flying their flag.
(4) Powers to adopt detailed rules for the implementation of Regulation (EC) No 2187/2005 are no longer required. The provision conferring those powers should therefore be deleted.
(5) 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 to amend rules concerning the construction of the certain gears. Such amendments should reflect changes occurring in the selectivity patterns of the fishery, new technical knowledge on materials for construction or changes in the rigging of the gear which may enhance gear selectivity.
(6) It is of particular importance that the Commission should carry out appropriate consultations during its preparatory work for the adoption of delegated acts, including at expert level. When preparing and drawing-up delegated acts, the Commission should ensure the simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and Council.
(7) Regulation (EC) No 2187/2005 should therefore be amended accordingly,
HAVE ADOPTED THIS REGULATION:
Article 1
Regulation (EC) No 2187/2005 is amended as follows:
(1) In Article 26, paragraph 5 is replaced by the following:"
"5. If the Commission concludes that the measures do not comply with the conditions laid down in paragraph 1 it shall adopt an implementing decisionact requiring the Member State to withdraw or modify the measures." [Am. 1]
"
(2) Article 28 is deleted.
(3) Article 29 is replaced by the following:"
"Article 29
Amendments to Appendices 1 and 2 of Annex II
The Commission shall be empowered to adopt delegated acts in accordance with Article 29a to amend or supplement Appendices 1 and 2 of Annex II by adapting specifications of the gear to:
(a)
changes in selectivity;
(b)
improvements in technical knowledge on new materials for gear construction;
(c)
changes to rigging that enhance gear selectivity."
"
(4) The following Article is inserted:"
"Article 29a
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 delegation of power to adopt delegated acts referred to in Article 29 shall be conferred on the Commission for an indeterminatea period of time three yearsfrom …(5).The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the three-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such an extension not later than three months before the end of each period. [Am. 2]
3. The delegation of powers referred to in Article 29 may be revoked by the European Parliament or by the Council at any time. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
4. As soon as the Commission adopts a delegated act, it shall notify it simultaneously to the European Parliament and to the Council.
5. A delegated act adopted pursuant to Article 29 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."
"
(4a) The following Article is inserted:"
"Article 31a
Overall assessment and review
By …(6), the Commission shall review the effectiveness of the measures laid down in this Regulation, and, where appropriate, submit a legislative proposal to the European Parliament and to the Council for the amendment of this Regulation in order to ensure that it is compatible with Regulation (EU) No .../2013 of the European Parliament and of the Council1.
_______________
1 Regulation (EU) No .../2013 of the European Parliament and of the Council of ... on the Common Fisheries Policy (OJ L ...).(7)"
"
[Am. 3]
Article 2
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.
Council Regulation (EC) No 2187/2005 of 21 December 2005 for the conservation of fishery through technical measures in the Baltic Sea, the Belts and the Sound, amending Regulation (EC) No 1434/98 and repealing Regulation (EC) No 88/98 (OJ L 349, 31.12.2005, p. 1).
– having regard to the Commission Communication entitled ‘Making the internal energy market work’ and the accompanying working documents (COM(2012)0663),
– having regard to its position of 12 March 2013 on the proposal for a regulation of the European Parliament and the Council on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC(1),
– having regard to Regulation (EU) No 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning measures to safeguard security of gas supply and repealing Council Directive 2004/67/EC(2),
– having regard to Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency(3),
– having regard to Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas(4),
– having regard to Directive 2009/72/EC of the European Parliament and the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC(5),
– having regard to Regulation (EC) No 714/2009 of the European Parliament and the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003,
– having regard to Regulation (EC) No 715/2009 of the European Parliament and the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005,
– having regard to Directive 2012/27/EU of the European Parliament and the Council of 25 October 2012 on Energy Efficiency(6),
– having regard to Council Directive 2009/71/Euratom of 25 June 2009 on establishing a Community framework for the nuclear safety of nuclear installations(7),
– 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 Decision No 994/2012/EU of the European Parliament and of the Council of 25 October 2012 establishing an information exchange mechanism with regard to intergovernmental agreements between Member States and third countries in the field of energy(8),
– having regard to the Commission communication of 15 December 2011entitled ‘Energy Roadmap 2050’ (COM(2011)0885),
– having regard to the Commission communication of 3 October 2012 entitled ‘Single Market Act II Together for New Growth’ (COM(2012)0573),
– having regard to the Commission communication of 6 June 2012 entitled ‘Renewable energy: a major player in the European energy market’ (COM(2012)0271),
– having regard to its resolution of 25 November 2010 entitled ‘Towards a new Energy Strategy for Europe 2011-2020’(9),
– having regard to its resolution of 12 June 2012 on engaging in energy policy cooperation with partners beyond our borders: A strategic approach to secure, sustainable and competitive energy supply(10),
– having regard to its resolution of 13 December 2012 on the EU steel industry(11),
– having regard to the recommendations issued on 12 February 2013 by the High-Level Round Table on the future of the European steel industry,
– having regard to its resolution of 15 March 2012 on a roadmap for moving to a competitive low carbon economy in 2050(12),
– having regard to its resolution of 14 March 2013 on the Energy Roadmap 2050, a future with energy(13),
– having regard to its resolution on the industrial, energy and other aspects of shale gas and shale oil(14) and its resolution on environmental impacts of shale gas and shale oil extraction activities(15), both adopted on 21 November 2012,
– having regard to Rule 48 of its Rules of Procedure,
– having regard to the report of the Committee on Industry, Research and Energy and the opinion of the Committee on Internal Market and Consumer Protection (A7-0262/2013),
A. whereas the Member States have committed themselves to clear deadlines for the completion of the internal energy market by 2014 and for doing away with the EU’s ‘energy islands’ by 2015;
B. whereas a completed internal energy market is indispensable for the Union’s overall energy security and sustainability, and is of essential value for the Union’s global competitiveness, economic growth and the creation of new jobs, as recognised in the Single Market Act II and the Europe 2020 strategy;
C. whereas the Commission’s Energy 2020 strategy builds on estimates for necessary investment needs in the energy sector amounting to EUR 1 trillion by 2020, of which EUR 540 billion are for power generation and EUR 210 billion for electricity and gas networks of European importance;
D. whereas the Energy Roadmap 2050 underlines that full integration of the European energy networks and the opening up of markets are critical for maintaining the balance between energy security, competitiveness, cost efficiency, a sustainable economy and consumer interests; whereas the Energy Roadmap 2050 states that energy efficiency, renewable energies and energy infrastructures are the no-regrets options;
E. whereas the share in Europe's energy mix accounted for by renewable energy sources (RES) is growing in the short, medium and long term; whereas large-scale integration of RES presupposes an adaptation of the grid and improved flexibility;
F. whereas a single energy market will empower the Union to speak with one voice vis-à-vis external partners and ensure a level playing field for all EU and non-EU companies, while also guaranteeing social and environmental standards and working towards reciprocity in third countries;
G. whereas a system needs to be established that will allow the Member States to exchange information on energy-supply agreements with third countries;
H. whereas an internal European energy market and its respective national energy markets must be competitive and deliver real choice and transparent information to all consumers, who play a central role in the energy market; whereas the completion of the internal energy market is essential to bring down energy costs and prices to affordable and competitive levels in the short, medium and long-term; whereas reduced prices on energy markets are often not passed on to the consumers;
I. whereas a European Energy Community, applying the Community method, must be based on a strong common energy market, the coordination of energy purchasing outside of the EU, and common European funding of new sustainable energy technologies, notably in the areas of research and innovation;
J. whereas certain progress has been achieved towards enhanced cross-border cooperation, partial elimination of energy islands and prevention of supply shortages;
1. Welcomes, broadly, the Communication and the accompanying Action Plan, which summarise the progress achieved so far and the challenges ahead for the completion of the internal energy market;
2. Acknowledges that the trend of rising energy prices is likely to continue given that these prices are currently linked – in the case of gas – to per-barrel oil price, and – in the case of electricity – to volatile fuel prices, and are further affected by Europe´s dependency on oil and gas imports, by the impact of the intervening measures, by the insufficient actions to promote energy efficiency, and by the lack of investments needed to maintain and modernise energy systems (including reverse flows and interconnectors) with a view to guaranteeing high levels of security of supply and facilitating the integration of RES; advocates, therefore, the decoupling of the gas pricing mechanism from the oil indexation to more flexible alternatives, while respecting the freedom of commercial exchange;
3. Stresses that the development of indigenous resources will lead to the emergence of new trading hubs in the EU and new spot markets for gas and electricity, thus presenting a real opportunity for the EU and the Member States to determine their own energy prices, including at a regional and local level;
4. Recognises the European added value of better energy policy coordination and cooperation among the Member States, in a spirit of solidarity, and of creating efficient and secure trans-border energy systems, thereby creating synergies through improved management of the supply and demand of energy, facilitated through smart technologies at distribution system level;
5. Points to the importance of regional markets, and of cooperation between Member States, when it comes to removing barriers, speeding up the integration process and improving network efficiency;
6. Recalls its support for the creation of a European Energy Community between the Member States, and asks the Commission and the European Council to report on the progress towards its creation;
Consumer-oriented market
7. Stresses that end energy-consumers – individuals, SME’s and industry alike – are at the very core of the user-friendly and transparent internal energy market; notes that, as such, they must be duly protected, and accurately informed with easy access to information, so that they are able to exercise their rights fully, while encouraged to play a more active role in stimulating market competition, moving from passive service recipients to active informed consumers and prosumers;
8. Emphasises the importance of ensuring a competitive, easily managed and transparent energy market that offers real choice and competing prices to consumers as well as provides all present and future EU energy consumers with safe, sustainable, affordable and reliable ways of generating energy that takes into account the interests of coming generations;
9. Takes the view that greater participation on the part of consumers will be facilitated by local cooperatives for renewable energy, collective switching initiatives and aggregators, or other enablers such as decentralised storage and smart appliances; believes that such enablers will help consumers better understand and manage their energy consumption, and thereby become more flexible and responsive (from both a demand and a supply perspective), and that they can strengthen access to renewables and generate the necessary financial investments;
10. Draws attention to the advantage of applying variable network-use charges in order to encourage customers to consume energy outside peak periods, in the interest of promoting a sustainable energy use;
11. Believes that smart technologies must deliver accurate, understandable and user-friendly information to consumers, and must empower them to manage their energy consumption and production; believes, therefore, that smart technologies must be completed with dynamic, online transmission and distribution grid management, incorporating such services as grid support services, voluntary demand-side response, energy efficiency services, micro-generation and storage solutions, and local or home brokers; points out, however, that the levels of energy consumption required for smart meters to provide economic advantages must be duly scrutinised, and that consumers of energy volumes below such levels shall not be obliged to invest in them;
12. Expresses concern about developments encouraging telecommunication companies to manage distribution grid data, as such a responsibility on their part raises serious questions about the protection of data as well as the risk that operators would have to buy the technical data they need to fulfil their functions as distribution system operators;
13. Recognises that energy poverty presents considerable challenges in Member States; points out that the one-size-fits all approach does not take into account the diversity of national realities; considers, therefore, that vulnerable consumers require special and effective protection, and that, to that end, appropriate mechanisms must be put in place, while market distortions are avoided; highlights that specific measures already exist as required by the Third Energy Package;
14. Notes that the shale gas revolution in the US has reduced CO2 emissions while creating a significant competitive advantage for the US industry;
Current challenges in completing the internal energy market
15. Stresses that the internal energy market is not completed yet, and that national energy markets fall short of satisfying the needs and expectations of consumers, as in some Member States they continue to face: high prices; a limited choice of suppliers, producers and tariffs; overall low quality of services; often too weak consumer protection; and difficulties in switching supplier; stresses, therefore, the need to build a more user-friendly market where consumers can play an active role and become prosumers in an EU-wide market in which they are informed about the terms offered by individual providers in such a way as to facilitate comparison; notes, in this regard, the role of collective switching in empowering consumers and providing lower energy bills;
16. Believes that the lack of full implementation of internal energy market legislation remains one of the main obstacles for the completion of this market; believes that the necessary consolidation of the internal market includes extending our infrastructure whilst implementing internal market law and enforcing competition rules;
17. Stresses that modernising the existing energy infrastructure, and building new, intelligent and flexible generation, transmission (especially transborder gas and electricity interconnectors), distribution and storage infrastructures is essential for a stable, well-integrated and well-connected energy market, where any negative effects, such as unplanned power flows, are avoided, where supply at affordable and competitive prices is secured, where the full potential of all sustainable energy sources, and of micro-generation, cogeneration and efficiency, demand-side management and storage, is fully exploited, and where no Member State remains isolated from the European gas and electricity networks by 2015, to be achieved, i.a., through the synchronous integration of isolated power systems into the European continental networks; emphasises that large-scale investments should be made in parallel with investments in regional or even local networks, as energy generation increasingly takes place at regional/local level;
18. Notes, in this regard, that a decentralised renewable energy supply reduces the need to build new transmission lines, and hence the associated costs, as decentralised technologies –which can be directly integrated in homes, cities and remote areas – are much closer to the end-consumers;
19. Acknowledges that allowing renewable electricity production to grow without a commensurate development of the necessary infrastructure may result in uncoordinated cross-border loop-flows and, consequently, sub-optimal energy prices;
20. Recalls than the Member States’ target to reach a level of electricity and gas interconnections equivalent to at least 10 % of their installed production capacity, as agreed on at the European Council summits in 2002 and 2007, has not yet been achieved;
21. Welcomes the Commission's emphasis that Europe's future energy systems will be characterised by flexibility; notes that, in all timeframes, well-functioning cross-border wholesale markets are easily accessible sources of flexibility; calls for further efforts to stimulate the future uptake of energy storage technologies and demand-side responsiveness, all of which offer additional sources of flexibility;
22. Believes that energy efficiency is one of the most sustainable and cost-effective ways of reducing energy bills, enhancing security of supply, reducing fossil fuel import needs and avoiding carbon emissions; recognises that any measure which promotes energy efficiency must be appropriate to the needs of consumers, cost-effective and supported by the right incentives;
23. Underlines that according to International Energy Agency findings, bolder action on energy efficiency can reduce EU gas imports by one-third in 2035, corresponding to 100 bcm of gas;
24. Recalls that synergies between telecommunication and energy infrastructure development, deployment and maintenance will play a key role in the efforts to fulfil the European Union energy efficiency objectives;
25. Highlights the need to continue to unbundle European energy markets in order to secure competition and ensure the supply of electricity at the lowest possible price;
26. Believes that investment in infrastructure needs to be encouraged through a stable, innovation-friendly and predictable regulatory frameworks that does not impede the functioning of the internal market, and that pension funds and institutional investors should be allowed to invest in transmission, recognising that this cannot be achieved unless market-driven; recognises at the same time, however, that, in certain specific cases, infrastructural transformations can hardly be achieved unless public funding is provided to supports key infrastructure projects that may not be commercially viable; stresses, in this connection, the importance of the Connecting Europe Facility, and regrets that this mechanism's share of the energy budget is less than the amount proposed by the Commission;
27. Calls for studies exploring the possibility of establishing a European fund for investment in energy networks;
28. Underlines that streamlining authorisation procedures within the Member States will contribute to the development of infrastructure networks and to the unlocking of investments; stresses that local and regional authorities should play an important role in this respect by simplifying planning procedures and integrating energy infrastructure in their local and regional planning schemes;
29. Notes that the lack of open and non-discriminatory access to transmission infrastructure continues in some cases to hinder new entrants from joining the network or, indeed, from competing on the market on fair terms against incumbent companies; underlines the need to tackle structural market distortions that lead to the high level of concentration existing in several Member States;
30. Stresses, in this regard, that the rules of the third energy package should be applied fully to both European and foreign companies; believes that any exemptions from these rules granted by the Commission should be limited in their scope and length of application, and be subject to review by Parliament and the Council;
31. Stresses that the lack of transparency and the existence of anticompetitive practices in wholesale energy markets undermine consumer trust; believes there is an urgent need to understand cost formation in wholesale markets as well as the impact on consumers' bills;
32. Fully supports measures taken to introduce a level playing field by creating more decentralised and competitive market models, given that they create more opportunities for local energy producers and for new industrial players;
33. Recalls that in order to prevent dominant incumbent suppliers from foreclosing the opening of the market, it is important to enable the development of new business models, such as the ability to contract simultaneously with several suppliers;
34. Notes that a stable regulatory framework – for producers, regulators, network operators, energy suppliers, demand-related service providers and, most importantly, end consumers and prosumers – is essential for a well-functioning internal market and for attracting long-term investment in infrastructure development; underlines that development of network codes encompassing sound, non-discriminatory and well-balanced rules should lead to harmonisation of grid management, market design and interoperability; emphasises that it is crucial that agreements on unbundling of transmission networks, production and delivery are respected across the EU, including agreements on the independent position of energy regulators and on requirements for consumer protection; stresses, therefore, the need to support and further develop the role of the EU Agency for the Cooperation of Energy Regulators (ACER), particularly its capacity to scrutinise national regulatory decisions and settle disputes;
35. Notes that concerns exist that some Member States have already implemented or plan to implement national capacity-remuneration mechanisms (CRMs) in order to secure the supply of electricity without duly exploring all potential alternative solutions, in particular in terms of cross-border solutions and flexibility resources; recognises that although these mechanisms are necessary in some circumstances, they could interfere with and distort wholesale market design and, if badly designed, potentially create lock-in effects; calls on the Commission to ensure a more coordinated approach at EU level to guarantee that any such CRMs are needed, efficient, transparent, technologically neutral and non-discriminatory;
36. Regrets that, to date, the cooperation mechanisms introduced by Directive 2009/28/EC on the promotion of the use of energy from renewable sources have not yet been utilised; points to the Commission's findings indicating that better use of the existing scope for cooperation could bring considerable benefits, such as boosting trade; calls on the Member States, therefore, to make better use of the cooperation mechanisms where it is appropriate and to increase communication among themselves;
37. Stresses that, without prejudice either to the Member States' right to choose their energy mix or to the need for increased EU-wide coordination, the EU as a whole must make full use of the potential of all sustainable energy sources that are at the disposal of the Member States, in full respect of the threefold objectives of EU energy policy as a whole, namely competitiveness, sustainability and security of supply;
38. Notes that some Member States, being energy islands, are still totally isolated from the European gas and electricity networks and continue to pay higher price for energy resources, which alters their competitiveness; points out that without substantial infrastructure investment, those Member States will not be able to achieve the commitment reiterated by the European Council that no Member State should remain isolated from the EU networks by 2015; believes that the Commission should, at the request of those Member States, take part in negotiations with non-EU energy suppliers on the subject of energy prices, for instance where the purchase of gas is concerned;
39. Stresses that the solidarity between Member States called for by the EU Treaty should apply to both the daily working and the crisis management of the internal and external energy policy; calls on the Commission to provide a clear definition of 'energy solidarity' in order to ensure that it is respected by all Member States;
40. Emphasises the need to tackle the anticipated growth of gas and electricity imports from third countries to the EU in the short- and medium-term, with view of ensuring security of energy supply, burden-sharing and a fair functioning of the internal market; reiterates that, for some Member States, this challenge is closely linked to a dependency on gas and oil imports from a single third country and that meeting it requires actions oriented at diversifying the portfolio of energy suppliers, routes and sources; acknowledges that strategic objectives in this regard is the realisation of Southern Gas Corridor, including the Nabucco pipeline and its potential lineage to countries of Central and Eastern Europe, and the achievement of supply routes to the EU capable of providing roughly 10-20 % of the EU’s gas demand by 2020, with a view to securing each European region physical access to at least two different sources of gas;
41. Believes that an open and transparent internal market, where all EU and third country companies respect the acquis communautaire in the field of energy, can help strengthen the negotiating position of EU energy suppliers vis-à-vis external competitors, which is particularly important for the potential of further coordinating external energy purchasing at the EU level; calls on the EU to consider the establishment of a joint gas purchase agency, and the mechanisms needed for this, in order to counterbalance the monopolistic position of dominant external suppliers; notes that the reciprocity principle must be used to guide relations with EU and third-country energy suppliers; stresses the need for the Commission, in its relations with third country energy suppliers, to take into account, and be transparent about, the impact of its decisions on consumer prices;
42. Is convinced that the Commission should be granted mandates to conduct negotiations on infrastructure projects of strategic importance that affect the security of supply to the EU as a whole, and that such mandates should also be considered in the instances of other intergovernmental agreements considered to have a significant impact on the EU's long-term energy policy objectives, in particular its energy independence; welcomes, in this regard, the progress made in the Commission-led negotiations on the treaty between EU, Azerbaijan and Turkmenistan to build the Trans-Caspian Pipeline System;
43. Stresses that progressive convergence of renewable- and efficiency-related incentives, and of auxiliary energy costs across all Member States post 2020, is essential for a well-functioning and efficient internal energy market, at both the wholesale and retail level, and for creating favourable conditions for the long-term development, and large-scale uptake, of renewable energy sources;
44. Believes that, in the short term, regional groupings of neighbouring Member States should be encouraged to move away from national plans towards a harmonised or single regional support scheme for renewables;
45. Encourages the Member States to review their feed-in or other support tariffs regularly and in a transparent manner which would allow for their adjustment in pace with falling technological and supply costs;
46. Recognises that joint EU research projects supported by framework programmes and initiatives such as the SET-Plan have not been used sufficiently in the development of new technologies allowing for improvements in efficiency, renewables, safety and security of nuclear power plants, low-emission usage of fossil fuels, and intelligent networks, all of which areas are critical for the energy market;
47. Believes it is important to make more progress on the electricity highways of the future, and in particular the South Eastern-North Electricity Highway (SENEH), which would also help in accommodating the transfer of the energy produced by photovoltaic parks, such as the Helios project, from south-east Europe to the north and west;
Urgent actions are needed
A well-integrated, open and well-regulated, and competitive internal energy market
48. Calls on the Member States to transpose and implement fully all relevant EU legislation, in particular the third energy package, as a matter of urgency; urges the Commission to undertake action against those Member States in which implementation has been unduly delayed; welcomes the fact that the Commission has already opened formal proceedings to investigate breaches of EU rules;
49. Underlines the need to tackle structural market distortions, and lack of market transparency; calls on the Commission to increase its efforts to enforce the implementation of the third energy package;
50. Asks the Commission to monitor closely the effective implementation of EU energy legislation, in particular the provisions that create essential consumer rights, as well as those that concern system operators, national regulating authorities and competition and state aid rules, and those that aim to reduce the phenomenon of loop flows in the internal electricity market, the latter constituting a significant though manageable challenge to the internal energy market as it weakens the security of the energy system by reducing storage options and network capacity; urges the Commission to use the most appropriate means at its disposal to address any continued non-compliance with relevant EU legislation;
51. Notes that all blackouts so far have been the result of operational failures, not capacity shortages; acknowledges that as a result of the economic recession, high natural gas prices and the increasing share of intermittent renewable electricity production, investors in the EU face considerable uncertainty when developing flexible electricity generation capacities; calls on the Commission to conduct a comprehensive assessment of generation adequacy, based on a harmonised methodology, and to provide guidance on how to enhance flexibility and maintain supply;
52. Urges the Commission and the Member States to coordinate infrastructure projects in a better way and to plan network development jointly, thereby ensuring full, EU-wide system connectivity and cost-effectiveness by taking advantage of cross-border synergies and a more efficient energy infrastructure network; points out that an integrated approach, which includes the distribution operators, should be promoted; encourages, to that end, the Commission and the Member States to ensure the rapid assessment, selection, permitting and implementation of projects of common European interest, especially with regard to electricity and gas trans-border interconnectors, including reverse flow mechanisms, liquefied natural gas, energy storage infrastructures and smart transmission and distribution networks, which are vital for a well-integrated and well-functioning energy market;
53. Recommends that, when implementing the energy budget of the ‘Connecting Europe’ facility, the Commission give priority to projects having the greatest impact on the functioning of the internal market, thereby boosting competition, speeding up the market penetration of renewables, creating necessary cross-border interconnections and enhancing security of supply;
54. Calls on the Commission to conduct a fresh review of existing plans for energy projects, especially for the construction of new liquefied natural gas terminals scheduled to take more than ten years to complete, to assess their economic benefit – taking account of the liquefied natural gas terminals which are already under construction or at the planning stage in individual Member States and which, in the near future, will contribute to energy supply security in Member States classed as ‘energy islands’ – and to contribute to the financing of such projects;
55. Urges the Commission and the Member States to put in place an efficient congestion management system in order to foster the efficient use of existing gas and electricity transmission capacity, reducing the cost of expanding network capabilities, and facilitate the increased connection of renewable generation sources to the electricity network;
56. Calls on the Member States to refrain, as soon as possible, from using price caps or regulated energy retail prices set, at national level, below the cost incurred, as such measures can distort competition and seriously threaten future investments in capacity and infrastructure in the energy sector; stresses, however, that policies in this regard shall take into account the legitimate interests of vulnerable consumers, who are not always able to benefit from real competition in the energy markets;
57. Welcomes the Commission's determination to enforce anti-trust and state-aid rules vis-à-vis all energy sector undertakings and their subsidiaries operating on the territory of the European Union, ensuring that a level playing field is established with equal conditions of access for all market players; calls on the Commission to issue guidelines on how to assess the abuse of a dominant position in gas and electricity markets by any company, as well as to provide guidance on best practices and on experiences gained in renewable energy support schemes;
58. Asks the Commission to review state aid rules in relation to national energy efficiency measures and to energy projects co-financed under the cohesion policy, in order to ensure that more of these actions are eligible for state funding, leading to more completed projects;
59. Recommends that the Commission use its state aid scrutiny powers to encourage the development of cross-border infrastructure; believes that such interconnectors would play a vital role when it comes to increasing the ability to draw on a neighbour's supplies in the event of an energy emergency or imbalance and to reducing subsidies over time;
60. Strongly supports the Commission's efforts, based on the coordinated work developed by ENTSOs, to introduce harmonised network codes by 2014 and rules in accordance with the plan, and to ensure the stability and increased innovation-friendliness of the regulatory framework of the internal energy market;
61. Strongly supports the regulatory measures taken by ACER and the national regulatory authorities to encourage, improve and simplify the cross-border energy trade, including on intra-day, day-ahead and balancing markets, and to bridge the gap between energy systems in different Member States by promoting transparent use of interconnectors; emphasises the need for appropriate numbers of staff – with necessary qualifications, experience and expertise – in ACER and the national regulatory authorities to carry out the tasks relating to the monitoring of wholesale transactions and the identification of insider trading practices and attempts to manipulate the market;
62. With regard to the internal electricity market, calls on the Commission urgently to provide a thorough analysis of the system adequacy and flexibility of national generation capacities in the short and long term, fully taking into account the potential contribution of all flexible measures, such as demand response, energy storage and interconnection, and to report on the impact of the applied national measures related to capacity assessment and development planning on the internal energy market and competition rules, taking into account the consequences in terms of both security of supply and the cross-border aspects of this complementary market design policy; calls, in this regard, on further efforts to be put on the future uptake of energy storage technologies and demand-side responsiveness, all of which are additional sources of flexibility;
63. Calls on the Commission to prepare guidance on the use and deployment of flexibility resources – such as demand-side management, storage, and physical infrastructures, including cross border ones – so that the Member States can prepare and implement national strategies to deploy flexibility resources on their territories;
64. Calls on the Commission and on ENTSO-E to develop a coherent and aligned methodology for ensuring generation adequacy in Europe, including the positive contribution of renewable energy sources and, in particular, variable renewables;
65. Calls on the Commission to explore future energy market forms which, contrary to present national capacity mechanisms, could provide additional non-discriminatory revenue streams to investors in all forms of power generation and ensure a most cost-effective provision of flexibility services in the energy sector;
66. Calls on the Commission to set up rules to promote the further development of a market for ancillary services open to the participation of all energy sources, including renewables;
67. Calls on the Commission, the Member States and the relevant stakeholders to provide incentives, and to support regional initiatives and partnerships, aiming at closer market integration, through the setting up of regional energy exchanges and gas trading centres, and through more harmonised rules for gas trading and market coupling mechanisms on all timeframes, and through the uptake of an adequate level of market liquidity and transparency;
68. Underlines that internal market measures should promote the diversification of energy sources, both indigenous and external, and should not primarily focus on the continued development or enlargement of current routes and supplies;
69. Draws attention to the external dimension of the energy market, the aim of which is to make it easier for all Member States to gain access to diversified energy sources; calls on the Commission, in coordination with the EEAS, to use its foreign policy instruments to promote the rules and standards of the internal energy market in relation to third countries and, especially, within the EU's neighbourhood; urges the Commission to resolve, in bilateral dialogues with relevant third countries, the issue of clear rules on congestion management of cross-border electricity and gas connections and on third-party access to transmission networks; strongly urges the Commission to take measures to prevent anti-competitive practices on the part of third-country companies that may lead to restricted competition, higher prices or reduced security of the energy supply; calls on the Commission to ensure, in its relations with external partners, that EU companies are able to compete on equal footing globally; urges the Commission to enhance cooperation with EU neighbouring countries on nuclear safety; calls on the Commission to be transparent about all factors still causing problems with regard to the implementation of the third energy package, and to present clear figures on their impact on consumer prices;
70. Asks the Member States and the Commission to increase political and financial support to the Energy Community and to take further measures to support the extension of internal market rules to South-East and Eastern Europe;
71. Calls on the Commission and the Member States, in the light of the creation of an information exchange mechanism for intergovernmental agreements between the EU Member States and third countries on energy policy, to show further ambition in ensuring that agreements contrary to internal market legislation are not put in place; takes the view that the Commission should be able to examine draft agreements for their compatibility with the acquis communautaire and to participate in the negotiations whenever relevant;
72. Reminds the Commission that the internal market is not independent from the global market; asks the Commission, when planning its internal market actions, to take Parliament's recommendations on the external dimension of energy policy(16) fully into account; confirms its support for the idea that only a fully functioning internal market will allow the EU to speak with one voice globally; asks the Commission to develop further additional actions in the area of external energy policy;
73. Believes that the future EU-US Free Trade Agreement should include a chapter focused on such energy matters as could affect the internal market, including, among other issues: energy wholesale trading, commodities trading, maritime energy transport rules, emission trading schemes, fuel safety standards, accounting practices, state energy subsidies, and the transfer of intellectual property in relation to energy exploration, production, transformation and end-of-lifecycle products;
74. Supports the mandate given by the European Council to the Commission to present an analysis of the composition and drivers of energy prices and costs in individual Member States before the end of 2013, with a particular focus on the impact on households, SMEs and energy intensive industries, and looking more widely at the EU's competitiveness vis-à-vis its global economic counterparts; calls also on the Commission continuously to monitor energy prices and costs in the Member States;
75. Calls on the Commission and the Member States, with regard to the internal gas market, to review all gas contracts based on obsolete pricing mechanisms – in particular the oil indexation principle – that impose high prices on the consumers, and urges the Commission to assist in exploring the possibilities of renegotiating these contracts, not only in the context of their prolongation; stresses the need to develop and support all products and mechanisms aimed at strengthening short-term gas trading capacities; underlines that the aforementioned measures are crucial for ensuring real competitiveness when it comes to the price of supplying gas to all consumers on the internal gas market.
Effectively protecting and supporting consumers
76. Calls on the Commission, the Member States and the relevant stakeholders to improve the quality and availability of the information offered to consumers, to provide them with clear and transparent billing methods, to establish price-comparison tools that let them make the best-informed choices, and to make them aware of ways to control consumption of the possibilities for energy saving, energy efficiency and small-scale production; urges the Member States to implement the Directive on Alternative Dispute Resolution and the Regulation on Online Dispute Resolution for consumer disputes; welcomes the Commission’s proposal to establish an information platform on consumer rights; recommends that the Commission and the Member States roll-out consumer-friendly information campaigns in which governments and civil society organisations should take active part;
77. Points out that even though energy prices on wholesale energy markets have fallen worldwide, consumers continue to pay high prices; calls on the Commission and the Member States, and on Member State regulators, to ensure that consumers benefit directly and adequately from wholesale market price developments;
78. Invites the Members States and the Commission to develop a comprehensive strategy aimed at encouraging consumers and prosumers to participate actively in the energy market, inter alia by inclusion through existing legislation as well as through the implementation of the relevant provisions of the Energy Efficiency Directive; suggests that the network-use pricing signal be adjusted regularly in order to provide both existing and future users with the necessary guidance and thus ensure consistency between network development and individual decisions;
79. Calls on the Commission to encourage further cooperation between the energy and the information and communications technology (ICT) sectors, and to review existing regulatory frameworks to encourage energy-related innovations to the benefit of all consumers, and to facilitate the deployment, in a user-friendly, secure and reliable way, of smart grids that do not place a financial burden on the consumers and that take their data privacy into account; calls for cooperation in the development of smart grids at European, national and regional level and in the development of European standards for smart grids;
80. Urges the Member States, and regional and local authorities, to incorporate and create financial incentives for investments in ICT solutions in smart grids, and to aim for a prosumer market, leading to more flexibility, energy efficiency/savings and voluntary demand-side participation;
81. Looks forward to the Commission's guidelines to help set ambitious policy objectives with regard to vulnerable consumers, which will assist the Member States in better defining their approach to this category of consumers; calls on the Commission to prepare these guidelines, taking due account of the existing national mechanisms and instruments for protecting such consumers, with a view to achieving a more coherent and comprehensive approach at EU level, while leaving it to the Member States to select the most suitable instruments for providing such support; adds that comprehensive advisory services for this category of consumers, and the exchange of best practices, can play an important role;
82. Welcomes the Commission's impending analysis on energy poverty in the EU; believes that, as part of its analysis, the Commission should make efforts to ensure that combating energy poverty becomes part of the social basket of services for Europe, e.g. through the social and cohesion funds; stipulates that existing and new energy efficiency programmes should always include a targeted focus on low-income groups;
83. Urges the Commission to develop and recommend a proper supplier-centric retail market design to harmonise European retail markets, thereby easing the administrative burden on consumers by letting the suppliers charge all levies directly on the electricity bill;
Helping future energy and climate challenges
84. Calls on the Member States, the Commission and the relevant stakeholders to convert the necessary supporting schemes for all power generators into transparent, predictable, convergent and market-driven mechanisms, as soon as it is feasible, in order to create a common market for requested support features – such as energy efficiency, prosumers, cogeneration, flexibility, renewables, and grid support services – in a way that ensures their compatibility and that avoids any overlap; calls on the Commission to present guidance on efficient and cost-effective support schemes for renewables energies;
85. Calls on the Commission, the Member States and the national regulatory authorities to revise the indicators used to measure the degree of competition in energy markets, and to include indicators such as the proportion of consumers on the cheapest tariffs, the ability of new companies to enter the market, and the levels of customer service and innovation, all of which will help provide a real picture of the level of competition on the market;
86. With regard to the internal electricity market, calls on the Commission to examine thoroughly the implications of integrating the growing share of renewables, into the energy grids with regard to financial support, system-wide technical requirements and market design; underlines that the lack of a coordinated approach towards those sources has until now hampered their integration within the European energy systems; underlines the fact that the current European energy grid and storage infrastructures need to be adapted to the contribution of distributed generation from renewable energy; stresses the importance of gas as a back-up fuel to cope with the variability of renewable electricity production, and asks the Commission to assess the necessary level of flexibility in the power system (smart grids, demand-side management, storage and flexible back-up capacity); believes that pumped storage has a large role to play in storing electricity;
87. Asks the Commission to continue to use regional development, cohesion and other EU structural funds to support the creation of smart gas and power grids in the next period in order to better absorb new types and sources of energy and to modernisation all regions of Europe; believes that distribution system operators should also be encourage to accept adaptations to their networks;
88. Calls on the Commission and the Member States to promote incentives to unlock the untapped possibilities of micro-generation and to pay attention to the need to develop cogeneration further, as it is one of the most efficient ways of producing electrical energy and heat, and to base this option on the wide implementation of efficient district heating and cooling;
89. Stresses the potential of combined heat and power/district heating and cooling to accommodate the rising share of intermittent power by adding flexibility and resilience to the energy market and providing an economical energy storage for surplus electricity; calls on the Commission to address and reward this ability in its forthcoming initiative concerning CRMs and to support this kind of cross-sectorial integration and balancing under Horizon 2020;
90. Calls on the Commission to launch a study analysing new and cost-efficient market designs for the European electricity market with a view to ensuring that consumers receive reasonably priced electricity and to preventing carbon leakage;
91. Welcomes the work done to make research in the energy field a priority of the Horizon 2020 programme, and calls on the Member States to take full advantage of this programming area; encourages the Commission and the Member States to support research on, and the development of, innovative energy technologies, and to improve existing technologies that fall outside of the framework of Horizon 2020 and European Institute of Innovation and Technology (EIT) projects; urges the Member States to create synergies between EU and national research programmes, in recognition of the fact that research is the only way forward to reduce emissions, improve energy security, increase the competitive position of EU industry on the global market, maintain EU technology leadership, and contribute to the European agenda for growth and jobs; underscores the need to offer industry legislative certainty over a time span that extends beyond 2020;
92. Urges the Commission to make sufficient funding available for the development of smart distribution grids, which offer the most-cost effective way to realise the large-scale penetration of distributed generation from renewable energy sources while ensuring security of supply and making the most of energy saving potentials;
93. Notes that the current system, characterised by a fragmented internal market, poses challenges to the long-term stability of companies and investors that could lead to plant closures and uncertainties with regard to employment and capacity; asks the Commission to undertake an independent evaluation of the future of the internal market for electricity and gas in which issues pertaining to investments, sector employment, the environment and the protection of consumers are given a central role; asks that this evaluation be ready by March 2014 and that it be inclusive by taking on board the opinions of stakeholders such as social partners, representatives of low-income households, environmental organisations and SMEs;
o o o
94. Instructs its President to forward this resolution to the Council and the Commission.
Implementation and impact of the energy efficiency measures under Cohesion policy
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European Parliament resolution of 10 September 2013 on the implementation and impact of the energy efficiency measures under Cohesion Policy (2013/2038(INI))
– having regard to Article 37 of the Charter of Fundamental Rights of the EU,
– having regard to Article 3 of the TEU,
– having regard to Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999,
– having regard to Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund and repealing Regulation (EC) No 1783/1999,
– having regard to Council Regulation (EC) No 1084/2006 of 11 July 2006 establishing a Cohesion Fund and repealing Regulation (EC) No 1164/94,
– having regard to Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC,
– having regard to Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings,
– having regard to the Commission’s communication of 3 March 2010 entitled ‘Europe 2020 - A strategy for smart, sustainable and inclusive growth’ (COM(2010)2020),
– having regard to the Commission’s report of 18 April 2013 entitled ‘Financial support for energy efficiency in buildings’ (COM(2013)0225),
– having regard to chapter 5 (‘The European divide in clean energy and fuel poverty’) of the European Trade Union Institute (ETUI) report ‘Benchmarking Working Europe 2013’, Brussels 2013,
– having regard to Directive 2006/32/EC of the European Parliament and of the Council of 5 April 2006 on energy end-use efficiency and energy services and repealing Council Directive 93/76/EEC,
– having regard to its report of 11 June 2013 on social housing in the European Union(1),
– having regard to the Council’s Report of 4 March 2013 entitled ‘Implementation of the European Semester – Synthesis report’ (6754/13),
– having regard to the Commission’s communication of 26 January 2011 entitled ‘Regional policy contributing to sustainable growth in Europe 2020’ (COM(2011)0017),
– having regard to the Commission’s statistical pocketbook of 2012 entitled ‘EU energy in figures’(2),
– having regard to the Commission’s communication of 16 December 2008 entitled ‘Cohesion Policy: investing in the real economy’ (COM(2008)0876),
– having regard to the Commission’s communication of 19 October 2006 entitled ‘Action Plan for Energy Efficiency: Realising the Potential’ (COM(2006)0545),
– having regard to the Court of Auditors’ Special Report No 21/2012 entitled ‘Cost-effectiveness of Cohesion Policy Investments in Energy Efficiency’,
– having regard to its resolution of 11 March 2009 on a European Economic Recovery Plan(3),
– having regard to the report from KfW Research entitled ‘Impact on public budgets of KfW promotional programmes in the field of “Energy-efficient building and rehabilitation”’(4),
– having regard to its resolution of 16 January 2013 on the role of EU cohesion policy and its actors in implementing the new European energy policy(5),
– having regard to the Commission’s communication of 8 March 2011 entitled ‘A Roadmap for moving to a competitive low carbon economy in 2050’ (COM(2011)0112),
– having regard to its resolution of 24 May 2012 on a resource-efficient Europe(6),
– having regard to the Commission’s report of 18 April 2013 entitled ‘Cohesion policy: Strategic report 2013 on programme implementation 2007-2013’ (COM(2013)0210),
– having regard to the opinion of the Committee of the Regions of 4 May 2012 entitled ‘Energy efficiency in cities and regions – a focus on the differences between rural districts and cities’(7),
– having regard to the opinion of the Committee of the Regions of 14 December 2011 entitled ‘Energy efficiency’(8),
– having regard to the opinion of the European Economic and Social Committee (EESC) entitled ‘The proposal for a directive of the European Parliament and the Council on energy efficiency’(9),
– having regard to the MARIE/ELIH-MED policy paper entitled ‘Improving MED transnational cooperation answers to energy efficiency challenges in buildings’,
– having regard to the Commission’s communication of 8 March 2011 entitled ‘Energy Efficiency Plan 2011’ (COM(2011)0109),
– having regard to the recommendations of Structural and Cohesion Funds for Sustainable Energy Investments (SF Energy Invest) entitled ‘Practical recommendations to increase the share of sustainable energy investments in the upcoming SCF programming period 2014-2020’(10),
– having regard to the report submitted to the Commission by Ismeri Europa entitled ‘Expert evaluation network delivering policy analysis on the performance of Cohesion policy 2007-2013 – Synthesis of national reports 2011 – renewable energy and energy efficiency of housing’,
– having regard to the Commission’s Green Paper of 27 March 2013 entitled ‘A 2030 framework for climate and energy policies’ (COM(2013)0169),
– having regard to the study by Copenhagen Economics entitled ‘Multiple benefits of investing in energy efficient renovation of buildings’(11),
– having regard to the Commission’s contribution to the European Council of 22 May 2013 entitled ‘Energy challenges and policy’,
– having regard to Rule 48 of its Rules of Procedure,
– having regard to the report of the Committee on Regional Development and the opinion of the Committee on Industry, Research and Energy (A7-0271/2013),
A. whereas improved energy efficiency (EE) means using less energy input for an equivalent level of economic activity or service(12);
B. whereas the promotion of EE is set by Article 194(1) of the Treaty on the Functioning of the European Union (TFEU) in the context of the establishment and functioning of the internal market and the need to preserve and improve the environment;
C. whereas achieving EE is a key priority for the Commission and Member States, as illustrated by one of the EU 2020 objectives to increase EE by 20 %;
D. whereas cutting consumption by means of energy efficiency is the most sustainable way of reducing dependence on fossil fuels, leading to a reduction in imports of around 25 %;
E. whereas a great deal of energy still comes from hydrocarbons which, during combustion, release greenhouse gases;
F. whereas investment in EE can bring economic, social and environmental returns to the European regions;
G. whereas a timely and cost-effective implementation of the Energy Efficiency Directive has the potential to reduce energy consumption significantly, decrease dependence on imports of fossil fuels, create new jobs, provide social protection and eradicate energy poverty;
H. whereas in the current 2007-2013 programming period, EUR 5,5 billion were allocated for energy efficiency, co-generation and energy management within the Cohesion Policy budget;
I. whereas the Commission latest report(13) concludes that up to the end of 2011, almost EUR 3,8 billion had been allocated to specific EE projects, including revolving funds, representing an implementation rate of 68 %; whereas the report also noted that this implementation rate was uneven across the Union;
J. whereas the Council, in its Synthesis Report from March 2013(14), identified among the factors adversely affecting EE development the lack of adequate information and financial incentives, the low profile of energy efficiency measures and the inadequate implementation of existing legislation, noting that these factors are more practical than regulatory;
K. whereas the minimum amount of project funding available from the European Local Energy Assistance (ELENA) facility is EUR 50 million, and from the Intelligent Energy programme the minimum is in excess of EUR 6 million, which is more than for many projects in small and rural communities;
General remarks
1. Stresses that in the current period of crisis, and with the Union importing over 50 % of its energy needs, improving EE in a cost-effective manner can contribute in an important way to boosting EU competitiveness, creating jobs and growth at local and regional level, and could represent a win-win option in the fight against climate change and high energy expenses;
2. Supports the EU’s commitment to achieve the objective of increasing EE by 20 % by 2020; stresses that timely and proper implementation of the Energy Efficiency Directive and its instruments, in line with individual national circumstances, would bring the Member States back on track of achieving the 20 % target; urges, in this regard, the Member States to put further efforts towards achieving the EU2020 objective, and to pave the way for further savings beyond this date;
3. Notes that European Structural and Investment Funds could help provide incentives for private investment in energy-efficient products, transport modes, buildings, industry, works and services, including energy efficiency services, and could help reduce public expenditures on energy bills, giving better value for public money; welcomes the suggested prioritisation of energy efficiency within the energy research chapter of Horizon 2020;
4. Highlights the experience of the current funding period, which shows that the funds set aside for energy efficiency from the European Structural and Investment Funds cannot be fully exploited; stresses, therefore, that in the financial framework for 2014-2020 – in which the share of funding set aside for energy efficiency is greater than before – care must be taken to facilitate access by local and regional authorities to these funds;
5. Stresses that the Member States should see the use of European Structural and Investment Funds for EE as an investment opportunity with a high leverage effect and not as an expenditure; calls on the Commission to revise the rules on State Aids further in order to allow greater national funding for EE alongside European investments;
6. Highlights the importance of Cohesion Policy, and of the financial resources allocated to it, for the full development of smart grids and intelligent networks, which result in more efficient energy systems across the regions, reducing energy consumption and energy loss;
7. Stresses that local and regional authorities must have adequate competences and responsibilities, not only with regard to energy supply and use but also to the achievement of the energy efficiency objectives;
8. Calls on the Commission to improve legal certainty with regard to regional State aid (RSA) rules for the construction of social housing that complies with energy efficiency standards and investment in sustainable buildings and energy;
9. Recalls that, according to some academic research, in 2010 close to 9 % of the citizens of the EU and of Norway and Switzerland (52,08 million people) could not heat their homes adequately; notes that fuel poverty is particularly severe in new Member States and is, in most cases, due to poorly insulated homes; calls on the Commission to examine in detail the links between EE promotion, fuel poverty and vulnerable consumers; stresses that savings made through EE measures must be passed on to consumers in reducing their bills;
10. Points out that the potential for energy efficiency has not yet been realised effectively in certain economic sectors, such as the building and transport sectors, and that allocations from the Structural Fund or the Cohesion Fund, or other forms of investment, to improve energy efficiency should help increase employment opportunities in this sector;
11. Highlights the need to ensure that social housing construction and renovation is conducted with a view to achieving energy efficiency objectives and standards; while respecting the principle of subsidiarity, asks the Member States and all stakeholders to take account of social housing in their national reform programmes and in the shaping of strategic priorities under partnership agreements in the upcoming programming period 2014-2020; reminds the Member States, in this context, of the provisions laid down in Article 20 of Directive 2012/27/EU on Energy Efficiency;
12. Acknowledges that one of the greatest obstacles to realising energy savings at local and regional level is the need to invest upfront; is convinced that any measure taken at EU level should take due account of the implications for, and budgetary restrictions of, municipalities and regions; recommends, therefore, that local and regional representatives be consulted when development guidelines are being established in the field of energy, and that financial support be provided for local and regional level programmes for the use of existing energy resources;
13. Recalls that Parliament has already adopted the report on the role of EU Cohesion Policy and its actors in implementing the new European energy policy, and that this report also covers energy efficiency issues;
Programming period 2014-2020 and legislative changes
14. Notes that the primary objective of Cohesion Policy remains the reduction of the economic, social and territorial disparities between regions, and considers that energy efficiency policies should not interfere with this objective; stresses that some of the EU’s poorest regions may have different priorities and require investment in other areas first; underlines that the strength of Cohesion Policy lies in its flexibility and the decentralised administration of funds at local level;
15. Recalls the 2009 amendment of the European Regional Development Fund (ERDF) Regulation regarding energy efficiency, making housing eligible for support in all parts of the EU, with a cap of 4 %; notes that, as a result of a late change to the provisions, namely a modification of operational programmes made during the programming period, in many Member States this policy action has not resulted in a substantial increase of funds diverted to this objective; notes that because this change was not met with new additional EU funding, some Member States rejected this opportunity while in others a significant correlation has been found between low absorption of funds and weak administrative functions; points to the importance of legal clarity regarding EE measures before and during the programming period 2014-2020;
16. Welcomes the new opportunities offered by, and the more important role in realising the EE objectives given to, the ERDF and the Cohesion Fund in the programming period 2014-2020; supports in particular the future role of Cohesion Policy funding in the entire building sector, including housing;
17. Urges the Member States to introduce, within their operational programmes, simple and non-bureaucratic procedures for the use of funding earmarked for the improvement of household energy efficiency;
18. Urges the Member States to ensure that decentralisation arrangements give municipal authorities direct access to funding for household energy efficiency;
19. Acknowledges the result of the negotiations on the ERDF regulation regarding the earmarked minimum percentages to be used on specific thematic objectives for each category of regions, which allow for an increase in allocations for EE and renewable energy resources; recalls that ambitious minimum shares are crucial for easier mobilisation of local actors and help create stable, long-term programmes;
20. Welcomes the Commission’s proposal to extend the use of innovative financial instruments (FI) in the programming period 2014-2020 to all thematic objectives, including EE;
21. Endorses the Commission’s proposals for simplification of the European Structural and Investment Funds in the programming period 2014-2020; believes that the conclusion of negotiations on the Common Provisions Regulation (CPR) should result in a successful implementation of multiple-funds usage, which would greatly benefit EE projects;
22. Welcomes the progress achieved in negotiations on CPR with regard to partnership agreements; calls, in this regard, on the Member States and the Managing Authorities to work with experts from the field of energy efficiency in order to make good use of this mechanism when preparing the operational programmes (OPs);
23. Encourages the Member States to strengthen relations between their respective National Energy Efficiency Action Plans and the OPs with a view to ensuring that European Structural and Investment Funds will be part of a coherent strategy while still responding to territorial needs; stresses that the principal objective of energy efficiency should be energy autonomy at regional and local level;
24. Believes that EU measures should support energy efficiency in the energy production, distribution and consumption phases; notes that while Cohesion Policy energy funding is currently mainly spent on renewables(15), a better balance must be reached whereby a greater percentage of funding is targeted at energy efficiency projects;
25. Stresses that excessive specification and binding targets as regards the implementation of the energy efficiency objectives may increase expenditures of regional and local authorities on implementing these measures and impose additional costs for costumers;
26. Stresses the importance of integrating an energy efficiency dimension into the research and innovation strategies for smart specialisation that the Member States and their regions will have to design in order to access innovation funding under the future Cohesion Policy;
27. Reminds the Member States once more of the importance of a well-funded budget for the 2014-2020 multiannual financial framework, in which the Cohesion Policy can and should act as a driver of recovery;
Raising awareness and the importance of information dissemination
28. Calls on the Commission to improve the quality and dissemination of the practical information on EE issues available to local and regional authorities, in particular as regards the gains to be made from EE investment, the best methodologies, standards and financial incentives, and the providers of relevant services, including energy performance contracting; notes that the lack of energy service companies in many regions, and in many Member States, could affect the uptake of EE funding;
29. Highlights that the lack of detailed information regarding the characteristics of the building stock at the regional level presents a major barrier for national and regional authorities when formulating strategies and plans; notes the requirements for the listing of such information, as provided by in Directive 2012/27/EU, and asks for this to be completed at regional level as well and made available to the public;
30. Encourages the Managing Authorities to improve the visibility of OPs and the opportunities for potential beneficiaries of offered sustainable energy projects; suggests that this be done through the creation of national websites, platforms or databases for potential beneficiaries and stakeholders, the organisation of workshops and events to inform target groups, and measures to improve the visibility and accessibility to existing web resources (such as the Build Up web portal and the SF Energy Invest Manual);
31. Encourages the Managing Authorities, in the programming period 2014-2020, to promote integrated projects by adopting a holistic approach to EE on a territorial level, in particular by making use of the new strategic programming tools, such as Integrated Territorial Investment, and by involving existing initiatives, such as the Covenant of Mayors, to help develop integrated plans; encourages the Commission and the Member States to apply a ‘fast-track’ approach to fund applications from authorities which are signatures to the Covenant of Mayors and are fully implementing its requirements;
32. Welcomes the annual ‘Open Days’ conference and the number of panels dedicated to local and regional energy efficiency projects; suggests that the Commission, the Member States and the Managing Authorities build on this event in order to set up an information exchange platform with a view to promoting much needed dialogue and an exchange of best practices for the implementation and management of EE projects funded by European Structural and Investment Funds;
Capacity building and technical assistance
33. Calls on the Member States to follow up on the Commission’s recommendations(16) and to increase capacity building, using technical assistance budgets, in order to strengthen the effective participation of local, regional and civil society actors in the design of regional and local energy strategies;
34. Acknowledges that the transition to energy efficient technologies requires new skills, environment-conscious vocational education and specific training in construction and other sectors; encourages, in this regard, the Member States to continue to use funds to provide technical assistance at all levels (such as through the ELENA facility); calls, furthermore, on the Member States to make use of the European Structural and Investment Funds to re-train and up-skill workers for newly emerging jobs in the low-carbon economy, and to avoid any shortages of skilled manpower in this sector;
35. Underlines the potential benefits available under the JESSICA (Joint European Support for Sustainable Investment in City Areas) and ELENA initiatives for sustainable energy investment at local level, with a view to helping cities and regions embark on viable investment projects in the fields of energy efficiency, and calls for the promotion of these initiatives;
36. Encourages further administrative support to local and regional authorities in order to assist them create groupings of small and medium-sized energy efficiency projects that on their own would be below the minimum financial thresholds for access to ELENA, JESSICA and Intelligent Energy funding; draws the attention of the Member States and the Commission to the fact that small and medium-sized towns and rural communities often lack the necessary administrative capacity to use new financial instruments fully;
37. Emphasises that bureaucracy and lack of procedural clarity have made access to the Structural Funds and the Cohesion Fund difficult and have discouraged those actors most in need of such funding from applying; supports, therefore, the simplification of rules and procedures, the removal of red tape, and increased flexibility in allocating these funds at both EU and national level; believes that simplification will contribute to the efficient allocation of funds, higher absorption rates, fewer errors and reduced payment periods, and allow the poorest Member States and regions to take full advantage of the financial instruments intended to reduce regional and inter-state disparities; considers that a balance needs to be struck between simplification and the stability of rules and procedures;
Role of financial instruments
38. Stresses that a combination of grants and FI can serve as a successful and innovative approach to leverage private funding, create new models of private-public partnerships and enhance innovation; stresses the importance of attracting private investment in energy efficiency from both the EU and third countries;
39. Points out that efforts to acquire finance for investment in energy efficient projects are often hindered by market, regulatory and trust barriers such as high upfront costs for investors and difficulties to forecast the exact energy savings potential; urges the Member States to find suitable ways of encouraging investment in household energy efficiency;
40. Highlights with concern that the current economic and financial crisis has made it increasingly difficult for the Member States to find the funding needed to co-finance Cohesion Policy programmes related to EE; finds it essential, in this regard, that new innovative ways of financing EE projects are found, including by the private sector;
41. Recognises the Commission’s support for the enhanced role of new and innovative FI in the programming period 2014-2020; stresses that the lack of timely delivery and legal clarity presents a significant difficulty both for the Member States and for other stakeholders included in the management of such instruments; urges the Commission to present without delay proposals for off-the-shelf FI to be available in support of EE measures;
42. Calls on the Member States to share best practices in the design of national energy efficiency funds, whereby European Structural and Investment Funds can be used as equity contributions, or similar, and be aligned with additional funding sources from the private sector;
43. Calls on the Commission to improve further the targeted financial support of the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), the Council of Europe Development Bank (CEB) and the European Energy Efficiency Fund (EEEF) for EE projects; calls on the EIB, the CEB and the EBRD to form a joint working group to study alternatives for new FI, which can be made available to the Member States together with or through their National Energy Efficiency Funds to stimulate additional private sector investment;
44. Emphasises that the allocation of funds must be based on the principles of proportionality, cost effectiveness and economic effectiveness, and that it must not increase administrative burdens;
Climate, geographical and competitiveness realities
45. Highlights the importance of regularly assessing whether EE measures and requirements are still adequate given climate realities, the competitiveness impacts on industry and SMEs and the energy price implications in different Member States and regions; calls on the Commission to consider this carefully when preparing a set of performance indicators;
46. Stresses the need to take account as well of the specific geographical characteristics of the outermost regions (OR) with regard to EE in order to make better use of the natural assets deriving from their island status (geothermal, solar, wind and marine energy);
47. Supports the progress of the MARIE programme in setting up a Mediterranean Building Energy Efficiency Improvement Strategy; calls, in this regard, on the Member States in the Mediterranean area to share best practices in order to deliver a cost-optimal model for southern Europe; calls for the creation of similar programmes in other European regions, especially Central Europe; considers that a similar strategy could be implemented for the OR, particularly as most of them (though not all) are situated in the tropics;
Indicators and criteria
48. Calls on the Member States to set demanding targets for ensuring that public buildings, and buildings serving other purposes, meet the highest EE standards provided by in Directive 2010/31/EU, and to make them subject to energy certification on a regular basis;
49. Calls on the Commission to clarify the common indicators for EE in Cohesion Policy to be applied and used by the Member States in the programming period 2014-2020;
50. Calls on the Commission to take due account of the economic, geographic and social situation in determining, for each Member State or region, the investment costs related to achieving savings of one kWh;
51. Calls on the Commission to develop, without delay and in close consultation with the Member States and regions, EE project assessment guidelines, which could serve as a basis for setting up mechanisms for evaluating, monitoring and verifying projects and for ascertaining their cost-effectiveness;
52. Calls on the Member States to apply output indicators as defined in the Annex to ERDF Regulation, as well as to use transparent project selection criteria, and standard investment costs per unit of energy to be saved, specifying a maximum acceptable simple payback period for EE projects;
53. Takes note of the Court of Auditors’ latest report on the cost-effectiveness of Cohesion Policy investments in EE; highlights the Court’s recommendation of using transparent and stricter selection criteria for projects at both EU and Member State level; agrees with the Court’s conclusion that assessment criteria used to make investment decisions must be clearer and more precise as regards to how EE aspects are to be considered;
54. Notes, however, that the Court’s assessment is rather restrictive in terms of sample and payback period; stresses that the Cohesion Policy is an integrated policy and, thus, that a comprehensive approach, based on life-cycle cost analysis, needs to be adopted when carrying out assessments of projects;
Importance of the buildings sector
55. Points out that in 2010 the energy consumption in buildings constituted the largest share of the total final energy consumption in the EU – 40 %, of which households accounted for 26,7 % – and that this consumption accounted for 36 % of the Union’s CO2 emissions; regrets that most Member States fall short when it comes to making full use of the energy saving potential of buildings; calls on the Commission to find ways to encourage efforts to ensure that the greatest energy saving potential does not remain untapped by delivering proposals for clear objectives as regards to the energy consumption of buildings in Member States;
56. Recalls that buildings have a natural renovation cycle of 40 years and that energy saving technologies in this sector are well developed, leaving most barriers that prevent the full use of energy saving potential to be of a non-technical nature; points out that due to the nature of EE renovation projects, which are often less visible, smaller and more difficult to aggregate, the European Structural and Investment Funds also have a crucial role to play in providing the funding needed to overcome these barriers;
57. Notes that energy saving potential, which largely depends on the condition of existing building stock, is not equally spread among the Member States and regions; asks the Member States to refine their definition of ‘decent housing’ to include energy-efficiency standards;
58. Stresses that public investment in EE in buildings is needed, in particular in the least‑developed regions and in Member States which are beneficiaries of Cohesion Policy funding, where there is significant potential for reducing energy consumption through cost-effective measures;
59. Encourages the Member States to maximise the use of national and regional programmes to ensure that a high degree of EE is designed into new buildings and implemented into the existing building stock (retrofitting), including residential buildings for low-income households;
60. Notes that rural and remote areas have ideal conditions for the deployment of efficient forms of decentralised energy production, which would reduce the energy losses associated with long-distance electricity transportation;
61. Calls on the relevant public authorities to speed up the renovation of buildings they own, using Cohesion Policy funding to provide the needed leverage and create exemplarity;
62. Calls on the Member States to pay special attention to the difficulties faced by the joint ownership of multifamily apartment buildings, which represent a difficult free-rider problem;
63. Calls on the Commission to build awareness around the real potential of deep renovation and staged deep renovation of building stocks by supporting Member States and regions in the preparation of their renovation strategies; recommends that these strategies be developed in parallel with proposals for OPs, and that they focus on incorporating the use of innovative FI and include indicative milestones to build investor confidence;
o o o
64. Instructs its President to forward this resolution to the Council, the Commission and the Committee of the Regions.
Report from the Commission to the European Parliament and the Council on Financial support for energy efficiency in buildings (COM(2013)0225), 18 April 2013.
Report submitted to the Commission by Ismeri Europa entitled ‘Expert evaluation network delivering policy analysis on the performance of Cohesion policy 2007-2013 – Synthesis of national reports 2011 – renewable energy and energy efficiency of housing’: http://ec.europa.eu/regional_policy/sources/docgener/evaluation/pdf/eval2007/expert_innovation/2011_synt_rep_en.pdf)
– having regard to the Treaty on the Functioning of the European Union (TFEU),
– having regard to the Commission communication entitled ‘A Maritime Strategy for the Adriatic and Ionian Seas’ (COM(2012)0713),
– having regard to Council Regulation (EC) No 1967/2006 of 21 December 2006 concerning management measures for the sustainable exploitation of fishery resources in the Mediterranean Sea, amending Regulation (EEC) No 2847/93 and repealing Regulation (EC) No 1626/94(1), as subsequently amended (the Mediterranean Regulation),
– having regard to its resolution of 6 February 2013 on the common fisheries policy(2),
– having regard to its resolution of 22 November 2012 on the external dimension of the common fisheries policy(3),
– having regard to Directive 2008/56/EC and to the obligation for Member States to take the necessary measures to achieve or maintain good environmental status in the marine environment by the year 2020 at the latest,
– having regard to its resolution of 3 July 2012 on the evolution of EU macro-regional strategies: present practice and future prospects, especially in the Mediterranean(4),
– having regard to its position of 8 March 2011 on the proposal for a regulation of the European Parliament and of the Council on certain provisions for fishing in the GFCM (General Fisheries Commission for the Mediterranean) Agreement Area(5),
– having regard to its resolution of 21 October 2010 on the Integrated Maritime Policy (IMP) – evaluation of progress made and new challenges(6),
– having regard to the Commission proposal for a directive establishing a framework for maritime spatial planning and integrated coastal management (COM(2013)0133),
– having regard to its resolution of 17 June 2010 on a new impetus for the strategy for the sustainable development of European aquaculture(7),
– having regard to the declaration of 7 October 2012 of the European ministers responsible for the integrated maritime policy, and of the Commission, on a marine and maritime agenda for growth and jobs (the Limassol Declaration),
– having regard to the Commission communication entitled ‘Blue growth: opportunities for marine and maritime sustainable growth’ (COM(2012)0494),
– having regard to the European Council resolutions of 23-24 June 2011,
– having regard to the Convention for the Protection of the Mediterranean Sea against Pollution and the protocols thereto(9),
– having regard to the Commission communication entitled ‘Europe 2020 – A strategy for smart, sustainable and inclusive growth’ (COM(2010)2020),
– having regard to Committee of the Regions’ own-initiative opinion of 12 October 2011 advocating the development of a new Adriatic-Ionian macro-region(10),
– having regard to the Ancona Declaration, adopted on 5 May 2010 at the 12th Ionian Council meeting,
– having regard to the United Nations Convention on the Law of the Sea (UNCLOS) of 10 December 1982,
– having regard to the FAO Code of Conduct for Responsible Fisheries, adopted on 31 October 1995,
– having regard to International Labour Organisation (ILO) Recommendation 199 concerning work in the fishing sector,
– having regard to Rule 48 of its Rules of Procedure,
– having regard to the report of the Committee on Fisheries (A7-0234/2013),
A. whereas seven countries have an outlet to the Adriatic and Ionian seas(11), four of which are Member States (Italy, Greece, Croatia and Slovenia), one is a candidate country (Montenegro) and two are potential candidate countries (Albania, and Bosnia and Herzegovina);
B. whereas cross-border cooperation is essential in order to establish arrangements for the joint management of fishing activities and to make sure that fish stocks are exploited in a sustainable manner;
C. whereas, although some of the Adriatic countries have established special zones, a substantial proportion of the waters of the Adriatic and Ionian seas are still international waters;
D. whereas in its recent resolution on the evolution of EU macro-regional strategies, Parliament stressed that the Adriatic-Ionian macro-regional strategy is a significant factor in efforts to achieve reconciliation between countries in the Western Balkans, and may assist those countries’ efforts to join the EU, thus enabling an overall policy for the whole Mediterranean basin to be implemented;
E. whereas the signatory states to the Ancona Declaration have called on the Commission to draw up a macro-regional strategy for the Adriatic-Ionian region, along the lines of the macro-regional strategies it has already put forward for the Baltic (2009), the Danube (2010) and the Atlantic Ocean (2011)(12);
F. whereas in its resolution of 23-24 June 2011 the European Council invited the Member States to ‘continue work in cooperation with the Commission on possible future macro-regional strategies, in particular as regards the Adriatic and Ionian region’;
G. whereas, in a recent opinion, the Committee of the Regions has called on Parliament to support the establishment of an EU strategy for an Adriatic-Ionian macro-region that takes account of the major challenges facing the area, in particular as regards the fisheries and aquaculture sector;
H. whereas fishing has traditionally been an important industry in most of the regions facing on to the Adriatic and Ionian seas, and whereas fishing activities in this area are currently managed by the General Fisheries Commission for the Mediterranean (GFCM) and the International Commission for the Conservation of Atlantic Tunas (ICCAT);
I. whereas the principal geo-physical feature of the Adriatic sea basin, especially in the northern part, is a shallow and sandy seabed which only becomes deeper many miles out from the shore, the features of the Ionian sea basin are similar to those of the rest of the much deeper Mediterranean, in particular in GSAs (GFCM Geographical Sub-Areas) 18 and 19, which reach depths of up to 2000 metres;
J. whereas the Adriatic-Ionian sea basin is a multi-species fishery in which multi-gear fishing activities are carried out, ranging from small-scale artisanal fishing to demersal trawling and from pelagic mid-water trawling to recreational fishing;
K. whereas the Adriatic is home to a large number of endemic fish species; whereas, however, an increase in fishing effort and/or higher pollution levels have given rise to major problems for fish stocks and for the fishing industry in general, in particular on the Italian side of the southern Adriatic;
L. whereas, furthermore, over recent years there has been a considerable increase in aquaculture in the Adriatic-Ionian area, although there are major environmental and spatial constraints, and although not all areas are suited to the installation of offshore breeding facilities and, where they are, such facilities are not always compatible with other activities;
M. whereas a number of valuable regional schemes to promote scientific cooperation aimed at securing responsible fishing in the Adriatic Sea, such as Adriamed(13), are already in progress;
N. whereas many Member States do not have specific national or regional development plans that regulate installations in coastal and marine areas and that clearly identify the zones available for aquaculture plants, thereby preventing easily foreseeable conflicts of interest with other economic sectors, such as tourism, agriculture and coastal fishing;
O. having regard to the Adriatic Protected Areas Network (AdriaPAN), the purpose of which is to optimise the management and planning of those areas through partnership;
P. whereas the development of an integrated approach to maritime policies in the Adriatic and Ionian seas needs to be accompanied by a dialogue and partnership process with all coastal states, given the transboundary nature of marine activities and shared resources;
General considerations
1. Points out that, following the entry into force of the Lisbon Treaty, Parliament now has full co-legislative powers in the fisheries and aquaculture sector and intends to play its full part in shaping fisheries policy at EU level, as well as at regional and trans-regional level;
2. Believes that a strategy for the Adriatic and Ionian seas should make particular reference to the sustainable development and growth of the fisheries and aquaculture sector, including employment;
3. Believes that a strategy for the Adriatic and Ionian seas should strive to ensure the preservation and protection of the environment;
4. Welcomes the Commission communication of 3 December 2012 as an important step towards the adoption of a legislative framework that will foster closer cooperation between the countries and regions along the shores of the Adriatic and Ionian seas, with a view to ensuring that fishing is carried out in a responsible manner and is economically viable for coastal communities;
5. Believes, in this context, that the Integrated Maritime Policy (IMP) should play a vital role in developing a long-term strategic policy in the Adriatic and Ionian seas, aiming at sustainable marine and maritime growth and the preservation of marine ecosystems for future generations;
6. Believes further that maritime spatial planning – as the public process for analysing and planning the spatial and temporal distribution of human activities in the Adriatic and Ionian Sea areas, in particular in the north of the Adriatic Sea – is vital for the sustainable future of the fishing sector in relation to other related activities;
7. Reiterates its support to the introduction of a macro-regional strategy for this important maritime area, with a view to addressing the shared challenges and problems faced by the inhabitants of the coastal regions concerned and to promoting economic development and European integration in the area;
8. Takes the view that all EU programmes and funding instruments(14) for the regions in the Adriatic-Ionian sea basin, including the instrument for pre-accession assistance (IPA), should be compatible with one another and should be used as efficiently as possible, so as to provide genuine added value for fishermen and fisheries sector operators;
9. Firmly believes that all efforts that are made to secure responsible, sustainable fishing in the Adriatic-Ionian sea basin can act as a catalyst for the development of coastal and rural areas in the countries concerned, and foster the development of combined economic activities – such as fishing tourism, in which professional fishermen take tourists or researchers out on fishing trips – which remain fully in keeping with the principle of practising a sustainable form of fishing that conserves the local environment and biodiversity;
10. Considers that the Barcelona Convention and its Protocol on Integrated Coastal Management, which entered into force in March 2011, could serve as a model to render an integrated policy compulsory for Member States bordering on the Adriatic and Ionian seas;
11. Considers the data available on Adriatic-Ionian fish stocks, their movements and their distribution, as well as on recreational fishing, to be unsatisfactory, and calls, accordingly, on the relevant authorities and research bodies to make good the shortcomings at the earliest opportunity;
12. Calls on the Commission to take further measures to promote research programmes relating to the marine environment and fisheries, and to encourage the utilisation and dissemination of the findings of this research;
13. Takes the view that successful schemes for cooperation in commercial matters between administrative bodies from various regions(15) can serve as examples of best practice to be used in other areas with a view to enhancing the traceability, profitability and marketing of fisheries and aquaculture products, in particular local products;
14. Endorses the participation of all stakeholders for the development of a sustainable and productive fisheries sector in this area;
15. Considers it essential, with a view to ensuring the sustainable development of the fisheries and aquaculture sector throughout the Adriatic-Ionian sea basin and to boosting employment in coastal areas, for the vital work carried out by women in the fisheries sector to be given proper recognition, for it to be made easier for women to gain professional qualifications and for women to be included in coastal action groups and producer organisations;
16. Calls for incentives that can attract young people to the fisheries and aquaculture sectors in this area and encourage them to engage in these activities;
17. Points out that Parliament has already in the past drawn attention to the need for simpler, more consistent and more transparent aquaculture legislation that removes the barriers which, to date, have prevented the potential of the EU’s aquaculture sector from being fully exploited, and that this will require the establishment of clear and consistent EU and national rules, together with the drafting of clearly defined marine and coastal development plans by the Member States, in line with the guidelines recently adopted by the GFCM(16);
18. Points out that the targeted development of the aquaculture sector could generate non-seasonal jobs in Adriatic-Ionian coastal regions, which are heavily dependent on the summer tourist trade, thus giving a significant boost to employment in the area;
19. Stresses that the expansion of aquaculture activities must not jeopardise the achievement of good environmental status under Directive 2008/56/EC and shall be carried out in full compliance with all relevant Union environmental legislation;
20. Points out that the only way of ensuring that fish stocks and the marine environment can be protected against pollution and over-fishing and/or illegal fishing is to set up an integrated network of maritime activities information and monitoring systems, in close cooperation with the states and coastal regions affected;
Specific considerations
21. Urges the coastal countries of the Adriatic-Ionic sea basin to cooperate in drafting a global overview of the area’s specific geo-physical and bathymetric features, the presence and distribution of the various marine species and the different fishing techniques, in order to obtain an overall perspective to serve as a basis for improved fisheries management and help strengthen fisheries activity within the framework of any future macro-regional strategy;
22. Urges the Commission to adopt, at the earliest opportunity and by 2013 at the latest, the action plan for the practical implementation on a macro-regional basis of the maritime strategy for the Adriatic Sea and the Ionian Sea, pointing out that the fisheries sector should form one of the priorities of that strategy, taking account of the specific geo-physical features and linking this plan of action to regional policy, the Union’s integrated maritime policy and the Connecting Europe Facility, so as to maximise its leverage effect;
23. Calls on the Commission to submit, at the earliest opportunity, a proposal for a regulation laying down common technical measures for fishing in the Adriatic-Ionian sea basin and specifying the admissible fishing effort, fishing periods and fishing gears and other relevant management measures;
24. Regrets that the Member States have not made greater use of these individual management plans, which allow certain general rules to be suspended so that specific characteristics can be taken into account; considers that this would have considerably facilitated local management and would have provided valuable data on the situation in the different zones, making it possible to introduce appropriate changes; asks, therefore, the coastal Member States to collaborate constructively with each other and with the Commission in updating and continuously adapting fisheries management measures;
25. Calls on the Commission to establish an ongoing dialogue with the non-EU countries of the Adriatic-Ionian sea basin, with a view to concluding bilateral or multilateral agreements with the aim of advancing towards a harmonisation and standardisation of the rules for fisheries management in order to achieve the objectives of the EU Common Fisheries Policy CFP in the Mediterranean while taking full advantage of the framework for collaboration provided by the international and regional fisheries organisations; points out that a strategy for the Adriatic and Ionian seas can only be of added value if all bordering countries, EU and non EU-countries alike, are taken into account;
26. Calls on the Commission to promote CFP objectives, notably the goal of achieving above maximum sustainable yield (MSY) for all fish stocks by 2020 at the latest, and to encourage the employment of an ecosystem-based approach vis-à-vis non-EU countries;
27. Calls on the Commission to step up exchanges of best conservation practice, in cooperation with the coastal states, and to promote the establishment of marine protected areas for the recovery of the most threatened species;
28. Calls on the Commission to promote the goals of the Marine Strategy Framework Directive (MSFD) vis-à-vis non-EU countries bordering on the Adriatic and Ionian seas, namely to achieve or maintain good environmental status in the marine environment by the year 2020 at the latest;
29. Calls, in this regard, on the Commission to encourage those Member States bordering on the Adriatic and Ionian seas to develop and implement marine strategies that take an eco-system-based approach and that ensure the integration of environmental concerns into the different policies that have an impact on the marine environment, taking into account the trans-boundary effects on the quality of marine waters of neighbouring third countries;
30. Recalls that funding exists, both under the future European Maritime and Fisheries Fund (EMFF), through its data collection programmes, and within the framework for the Union’s various research programmes, for improving knowledge of the marine environment, including fish species, and for introducing greater innovation and better practices in fisheries activity; calls, therefore, on the Member States to put forward projects in these areas, and considers that advance cooperation among the various coastal countries, whether or not they belong to the EU, can lead to extremely interesting initiatives able to benefit the whole of the Adriatic-Ionian basin, through projects presented by the Member States;
31. Calls on the Commission to consider whether a specific funding line for implementation of the measures and objectives laid down for this strategy should be created in cooperation with the European Investment Bank (EIB), drawing on the experience gained with the FEMIP(17) so as to avoid further complicating matters through the adoption of new budgetary instruments; calls on the Commission to consider as well the possibility of using project bonds and public-private partnerships as eminently suitable financing instruments;
32. Calls on the Commission to propose that specific advisory bodies for the Adriatic Sea and the Ionian Sea should be set up within the Regional Advisory Council (RAC) already established for the Mediterranean area, drawing on the positive experience gained with the ‘maritime districts’ that have been set up in Italian waters(18) (such as the Northern Adriatic fisheries district, established in 2012 for the shared and concerted management of the northern Adriatic fisheries sector from a political, economic, social and environmental point of view);
33. Calls on the Commission to include in the future legislative proposal on maritime spatial planning provisions obliging maritime Member States to make inventories of the environmental and tourism protection rules in force on their respective national territories and, in respect of areas not subject to restrictions, to adopt marine and coastal development plans establishing the admissibility and compatibility of the use and occupation of these areas, with a view to facilitating access to areas suitable for setting up aquaculture undertakings;
34. Calls on the Commission to establish a specific Work Plan for the Adriatic and Ionian Seas, setting out the future objectives in that region as is currently undertaken in the Mediterranean Sea (IMP-MED project); stresses that this Work Plan should be seen as a project eligible for funding under the EMFF;
35. Urges the Commission to create a toolbox of sanction measures to ensure that a Member State that does not fulfil its data collection and transmission obligations, or is unable to tackle problems with illegal, unreported and unregulated (IUU) fishing in its waters or by its fishing fleet, can be sanctioned;
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36. Instructs its President to forward this resolution to the Council and the Commission.
The International Hydrographic Organisation (IHO) definition puts the southern boundary of the Ionian Sea at a line drawn between Capo Passero (Sicily) and Cape Tenaron (Greece).
Adriamed is an FAO regional project funded by the Italian Ministry of Agriculture, Food and Forestry Policies (MiPAAF) and the Commission that seeks to promote scientific cooperation among the Adriatic countries (Albania, Croatia, Italy, Montenegro and Slovenia), in line with the UN FAO Code of Conduct for Responsible Fisheries.
‘Maritime districts’ were set up to improve cooperation between central and regional government in developing and providing support for the fisheries and aquaculture sector and to promote partnership with fishermen and fisheries sector operators.
More efficient and cost-effective interpretation in the European Parliament
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European Parliament resolution of 10 September 2013 on ‘Towards more efficient and cost effective interpretation in the European Parliament’ (2011/2287(INI))
– having regard to Article 286 of the Treaty on the Functioning of the European Union,
– having regard to its resolution of 5 September 2006 on the Court of Auditors’ Special Report No 5/2005 on interpretation expenditure incurred by Parliament, the Commission and the Council(1),
– having regard to the European Court of Auditors’ Special Report No 5/2005 entitled ‘Interpretation expenditure incurred by the Parliament, the Commission and the Council’, together with the institutions’ replies(2),
– having regard to the note to the members of the Bureau entitled ‘Resource-efficient full multilingualism in interpretation – implementation of the decision on the European Parliament’s budget 2012’,
– having regard to the report by the Secretary-General of the European Parliament of 9 April 2013 entitled ‘Preparing for Complexity: European Parliament in 2025 – The Answers’,
– having regard to Rule 48 of its Rules of Procedure,
– having regard to the report of the Committee on Budgetary Control (A7-0233/2013),
A. whereas multilingualism is one of the key elements of the European Parliament, and of the Union as a whole, and whereas it ensures respect for cultural and linguistic diversity as well as equal treatment of EU citizens with different origins and backgrounds;
B. whereas the principle of multilingualism in the European Parliament is the foundation of the institution’s political, co-legislative and communication work;
C. whereas the principle of multilingualism in the European Parliament guards against unnecessary obstruction of the right of European citizens to stand for election to the European Parliament;
D. whereas multilingualism guarantees the right of citizens to communicate with Parliament in any of the EU’s official languages, thus enabling them to exercise their right of democratic scrutiny;
E. whereas Parliament’s linguistic services facilitate communication and, in so doing, make sure that Parliament remains open to all of Europe’s citizens, ensuring transparency within the Union’s unique multilingual structure based on 24 official languages;
F. whereas Parliament’s Rules of Procedure stipulate that Members may speak in the official language of their choice and that interpretation into the other official languages will be provided, thus respecting the democratic right to be elected to the European Parliament irrespective of one’s language skills;
G. whereas, as a result of successive enlargements, the challenge of multilingualism has reached a completely new dimension in terms of size, complexity and policy relevance, and whereas extensive multilingualism translates, naturally, into major and increasing costs for Parliament and therefore for the Union’s citizens;
H. whereas, with regard to Parliament’s 2012 budget, considerable savings, including a reduction of EUR 10 million per year in the costs of interpretation services, were necessary in order to limit the budget’s growth to 1.9 % compared with the previous year;
Interpretation framework in the European Parliament
1. Acknowledges that the European Union is the only entity in the world running an official policy of multilingualism based on 24 official languages, with a total of 552 language combinations to be covered; welcomes, in this connection, the very high quality of Parliament’s interpretation services, but believes that ways of reducing the burden entailed by the complex structure of multilingualism and its considerable and increasing costs should be sought;
2. Notes that, of all the languages spoken in plenary in Strasbourg and Brussels from September 2009 to February 2013, English was used for 26 979 minutes (29,1 %), German for 12 556 minutes (13,6 %), French for 8 841 minutes (9,5 %), Estonian for 109 minutes (0,1 %) and Maltese for 195 minutes (0,2 %);
3. Stresses that both plenary sittings and committee meetings can be publicly accessed by all through webstreaming or video on demand – new media which are increasing the transparency of European Parliament activities for EU citizens – and that their availability in all official languages highlights the democratic and multicultural nature of Parliament;
4. Notes that some multinational bodies, such as the United Nations and the North Atlantic Treaty Organisation, operate only at intergovernmental level with no legislative function; points out in this connection that the UN, with 192 members, has a language regime with six official languages, and that NATO, with 28 members, uses mainly English, despite having two official languages;
5. Stresses, however, that Parliament is a directly elected political body whose Members are elected regardless of their language skills; reaffirms, therefore, the right of every Member to speak in the official language of their choice, as a key principle of Parliament’s operating arrangements;
6. Notes that the practical implications of the use of official languages in the European Parliament are set out in its Code of Conduct on Multilingualism, updated in 2008; notes the fact that the concept of ‘controlled full multilingualism’ laid down in that Code maintains equality among Members and citizens; points out that the implementation of full multilingualism, while based on the principle of ‘interpretation on demand’, will in the long term be contingent upon making users of language services fully aware of the costs of providing those services, and hence of their responsibility to make the best possible use of them;
7. Believes that the principle of sound financial management needs to apply to interpretation as well, and that, with a view to ensuring the best value for money for European taxpayers, critical analysis should continually be undertaken to assess where and how efficiency can be improved, and costs controlled or limited;
Efficient use of interpretation resources
8. Notes the decision on ‘Resource-efficient full multilingualism in interpretation’ taken by Parliament’s Bureau in 2011, which increases the efficiency of interpretation services and reduces their structural costs in the following ways:
(i)
matching the needs arising from travel by Parliament delegations with the financial and human resources available,
(ii)
giving priority to interpretation for trilogues during committee weeks,
(iii)
spreading committee meetings more evenly over the week,
(iv)
applying the rules on the duration of evening meetings more stringently;
9. Welcomes the fact that, as a result, the budgetary resources devoted to interpretation services in Parliament have started to decrease; points out that in 2010 the budget outturn figure was EUR 54 990 000, that in 2011 it was EUR 56 964 283 and that it currently stands at EUR 47 000 000 for 2012, although the final outturn for 2012 will not be known until 31 December 2013 and may be higher;
10. Notes that the estimated 2013 budget figure for the interpretation DG is EUR 58 000 000, of which EUR 53 000 000 is directly linked to interpretation services; asks to be informed in detail and on a regular basis about the concrete results of the ‘Resource-efficient full multilingualism’ initiative as regards the 2013 budget, in particular in terms of expected cost reductions or increases;
11. Notes, furthermore, that while Parliament’s interpretation services cost EUR 157 954 283 in the three year-period leading up to the end of 2012, a reduction of 17 % was achieved when comparing the budgetary outturn figures for 2010 and 2012; notes that the smart savings achieved in interpretation services did not jeopardise the principle of multilingualism and insists that equal access to language services needs to be ensured for Members and that proper working conditions need to be upheld for the services concerned;
12. Welcomes the fact that Parliament’s estimates of revenue and expenditure for the financial year 2014 propose reducing interpretation costs by 23 % during an election year, compared with the 2013 budget figure of EUR 58 000 000; asks for detailed information proving that the proposed cuts are feasible and that the excellent quality of interpretation can be maintained;
13. Emphasises that the implementation of ‘resource-efficient full multilingualism’ has led to considerable gains being made through a more even spread of committee meetings during the week, without any reduction in the overall number of committee meetings; notes that, as a result, the total number of interpreter days decreased from 105 258 (EUR 107 047 386) in 2011 to 97 793 (EUR 100 237 825) in 2012, leading to savings of EUR 6 809 561;
14. Notes with concern that, according to the reports on the Code of Conduct on Multilingualism, requests for interpretation services originating from committees, delegations and political groups were still affected by a high and growing level of late cancellations, as illustrated by the following figures:
Committees
2009
2010
2011
2012
Requests
984
1712
2213
2448
Late
cancellations
76
172
238
359
%
7,72 %
10,05 %
10,80 %
14,70 %
Delegations
2009
2010
2011
2012
Requests
624
813
836
832
Late
cancellations
116
93
102
171
%
18,59 %
11,44 %
12,20 %
20,60 %
Political groups
2009
2010
2011
2012
Requests
1922
2310
2297
2146
Late
cancellations
285
378
266
292
%
14,83 %
16,36 %
11,60 %
13,60 %
15. Notes with concern that the potential costs incurred as a result of these late cancellations would represent, without last-minute redeployment of some interpreters, a substantial proportion of the overall interpretation budget; notes in this connection that in 2011 EUR 4 350 000 (7,6 % of the interpretation budget) and in 2012 EUR 5 480 000 (11,9 % of the interpretation budget) would have been spent on interpretation services made available and then cancelled outside the deadlines foreseen in the Code of Conduct on Multilingualism; calls on the Bureau to provide the Committee on Budgetary Control with a detailed analysis of the growing trend in late cancellations and to introduce a mechanism to increase awareness of the lost resources due to late cancellations and to significantly reduce the number and percentage of such cancellations;
16. Reiterates that, while maintaining a high standard of work, it is also necessary to make more efficient use of language resources and to control their costs by looking at the overall workload for each language section and ensuring that the costs generated by the late cancellation of meeting requests and delegation visits with interpretation, in contravention of the deadlines laid down in the Code of Conduct, are reduced; insists that committees, delegations and political groups should be made aware of the rules laid down in the Code of Conduct;
17. Calls on the Bureau to develop a system with further measures to combat late cancellations of interpreter bookings;
18. Calls on the administration to make full and efficient use of Members’ updated language profiles when making language arrangements for committees, delegations and political groups both in and outside the places of work; insists that all Members’ language profiles should be updated every year; points out, in addition, that a copy of the updated profiles should be forwarded to the secretariats of the committees, delegations, political groups and working groups;
19. Insists that, with due regard for the decision of Parliament’s Bureau of December 2011 on ‘Resource‑efficient full multilingualism’, interpretation into an official language during a delegation visit should be provided only on the explicit written request of a participating Member of the European Parliament; stresses that during a delegation visit the number of interpreters should be kept to the absolute minimum in compliance with the applicable rules;
20. Recalls the proposal by the Secretary-General to introduce measures to raise awareness among users of interpretation services, including committees, delegations and political groups, and awaits further detailed proposals to improve awareness of the cost of late cancellations;
21. Calls on the administration to continue having the head of the team of interpreters draw up a list of interpretation facilities requested but not used at the end of each meeting and in agreement with the secretariat of that meeting; notes that a copy of that list should be forwarded to the secretariat of the meeting concerned; considers that the list should also take account of those using webstreaming or video on demand;
22. Takes note of the new Interpretation ad personam (IAP) service offered to Members and established following the pilot project which started in 2010; notes that this new service entailed costs of EUR 157 000 in 2011 and EUR 115 000 in 2012; believes that the service should be reviewed in order to look for ways to improve it;
Interpretation in the European Parliament: the way forward
23. Welcomes the fact that the interpretation services have achieved efficiency gains and cost reductions in recent years while maintaining an excellent quality of work; emphasises that interpretation and translation expenditure continues to take up a significant proportion of Parliament’s budget and therefore believes that the challenge of multilingualism at reasonable costs requires Parliament’s continual attention;
24. Believes that the Committee on Budgetary Control should be informed regularly about changes in the cost of interpretation; calls for the annual Code of Conduct report prepared by the interpretation services and sent to the Secretary-General to be made public to members of the committee;
25. Takes the view that situations in which interpretation into certain languages is offered without being used should be avoided as far as possible; stresses the need for measures to reduce the costs of unneeded interpretation at meetings, and calls, therefore, for the development and urgent implementation of a system that prevents situations in which interpretation is made available into languages that are not actually spoken at a given meeting or requested by webstream users;
26. Expects the Secretary-General to present, by the end of the year, a detailed analysis of the interpretation languages provided for all (working) group, committee and delegation meetings and of the languages actually spoken at these meetings, as well as an overview of the derogations from the general interpretation rules adopted by the Bureau on 12 March 2012(3) which are requested by and granted to delegation visits;
27. Calls on the Bureau to adopt a further decision on multilingualism by the end of the year, dealing specifically with possible scenarios for ‘interpretation on demand’ and the efficiency gains expected to be achieved as a result;
28. Asks the Court of Auditors, therefore, to provide Parliament, within a reasonable time frame and at the latest by March 2014, with a special report on the interpretation and translation expenditure incurred by Parliament, the Commission and the Council, assessing the soundness of the financial management involved and updating the findings made in its Special Report No 5/2005; notes, furthermore, that this report could be produced periodically and used for the discharge procedure; reiterates that the report should provide information on whether the institutions involved have adequate tools and procedures to ensure that:
–
the services provided do not exceed the real needs,
–
all the services needed can be provided,
–
the services are provided at the lowest possible cost,
–
the services provided are of high quality;
29. Notes also that this follow-up report should carefully compare the cost-effectiveness of Parliament’s interpretation services with that of the interpretation services provided by the Council and the Commission, and compare the actual costs of the three institutions’ interpretation services with those recorded in the audit reference period;
30. Insists, furthermore, that Parliament address, as a matter of priority, the considerable number of late cancellations and invites the Bureau to present a detailed action plan for reducing it;
31. Reiterates that interinstitutional cooperation is essential in order to exchange best practices that promote effectiveness and allow savings to be made; considers that interinstitutional cooperation should be improved as regards interpretation; calls for a thorough review to be carried out, with priority being given to more effective sharing of available resources among all the institutions and concrete measures in the area of freelance interpretation;
32. Stresses the importance of software applications as management instruments and insists that more funding be allocated for this purpose in next year’s budget; notes that a higher level of efficiency can be obtained if Parliament’s administrative services are provided with appropriate management information; considers it regrettable that certain DGs are still lagging behind in terms of the software applications available, despite improvements in the IT sector since 2010;
33. Calls on its relevant services to assess whether the considerable efficiency gains made in the area of interpretation can serve as an example for improvement within other DGs;
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34. Instructs its President to forward this resolution to the Council and the Commission.
It was decided specifically that, while delegations would continue to benefit from the full interpretation entitlement of up to five languages – as laid down in the Code of Conduct on Multilingualism – during weeks set aside for external parliamentary activities (green weeks), delegations requiring derogations for travel during committee weeks would only be provided with a limited language regime not exceeding interpretation into one language.
Online gambling in the internal market
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European Parliament resolution of 10 September 2013 on online gambling in the internal market (2012/2322(INI))
– having regard to the Commission communication of 23 October 2012 entitled ‘Towards a comprehensive European framework for online gambling’ (COM(2012)0596),
– having regard to the Commission communication of 18 January 2011 entitled 'Developing the European Dimension in Sport' (COM(2011)0012),
– having regard to its resolution of 14 March 2013 on match-fixing and corruption in sports(1),
– having regard to its resolution of 2 February 2012 on the European dimension in sport(2),
– having regard to its resolution of 15 November 2011 on online gambling in the internal market(3),
– having regard to its resolution of 10 March 2009 on the integrity of online gambling(4),
– having regard to the Nicosia Declaration of 20 September 2012 on the Fight Against Match-Fixing,
– having regard to the Council conclusions of 10 December 2010 and the progress reports of the French, Swedish, Spanish and Hungarian Presidencies on the framework for gambling and betting in the EU Member States,
– having regard to the preparatory action entitled 'European Partnerships on Sport' and, in particular, to the assembling of projects focusing on the prevention of match-fixing incidents through the provision of education and information to relevant stakeholders,
– having regard to Articles 51, 52 and 56 of the Treaty on the Functioning of the European Union (TFEU),
– having regard to the Protocol on the application of the principles of subsidiarity and proportionality annexed to the TFEU,
– having regard to the case-law developed by the Court of Justice of the European Union, whereby in the specific area of the organisation of games of chance, the Court notably recognizes consumer protection, the prevention of both fraud and incitement to squander on gaming, as well as the general need to preserve public order as reasons of overriding general interest that may justify restrictions on the freedom to provide services(5),
– having regard to the opinion of the European Economic and Social Committee of 22 May 2012,
– having regard to Rule 48 of its Rules of Procedure,
– having regard to the report of the Committee on the Internal Market and Consumer Protection and the opinions of the Committee on Culture and Education and the Committee on Legal Affairs (A7-0218/2013),
A. whereas gambling is not an ordinary economic activity given its potentially negative health and social impacts, which include: compulsive gambling, the consequences and costs of which are difficult to estimate; organised crime; money laundering; and match-fixing; whereas online gambling may involve a greater risk of addiction than traditional offline gambling, owing, inter alia, to the increased ease of access and the absence of social control, but additional research and data is needed in this regard; notes that, on these grounds, certain internal market rules – including the freedom of establishment, the freedom to provide services and the principle of mutual recognition – do not preclude Member States from determining their own additional measures for the protection of players;
B. whereas Article 35 of the Charter of Fundamental Rights of the European Union establishes the obligation to protect human health in the definition and implementation of all the Union's policies and activities;
C. whereas Article 169 of the TFEU obliges the EU to ensure a high level of consumer protection;
D. whereas, given the special nature of the online gambling sector, the protection of human health and consumers should be the main guiding principle when EU-level recommendations and national legislation are made;
E. whereas, with due regard to the principle of subsidiarity, Member States have the right to determine how the offer of online gambling services is organised and regulated in accordance with their own values and pursued objectives of general interest, while observing Union law;
F. whereas, because of its specific nature and in application of the subsidiarity principle, the supply of online gambling services is not subject to sector-specific regulation at EU level and is exempted from the services and consumer rights directives, remaining – nevertheless – subject to a number of EU secondary legislative acts, such as the data protection directive, the directive on privacy and electronic communication and the unfair commercial practices directive;
G. whereas the online gambling sector differs from other markets on account of the risks involved in terms of consumer protection and the fight against organised crime, as repeatedly acknowledged by the Court of Justice of the European Union;
H. whereas the Court of Justice has confirmed that the provision of games of chance or gambling is an economic activity of a special nature, where restrictions may be justified for reasons of overriding general interest such as consumer protection, fraud prevention, the fight against money laundering and the preservation of public order and public health; whereas any restrictions imposed thereto need to comply with those provided for by the TFEU, such that they must be proportionate to the objectives pursued and must not be discriminatory;
I. whereas, now more than ever, the Member States share common general concerns as to the negative social and economic impact of illegal online gambling at national level, their principal objectives being to protect underage and vulnerable members of society and combat addiction, crime and tax evasion;
J. whereas the cross-border nature of online gambling, the risks involved in terms of consumer protection, fraud prevention and law enforcement against illegal activities, such as money laundering and match -fixing, as well as the need to combat illegal gambling-related activities, require better-coordinated action among Member States and at EU level;
K. whereas it is essential to introduce mechanisms for scrutinising sports competitions and financial flows, along with supervisory mechanisms;
L. whereas a comprehensive overview of the online gambling sector, in terms of information and data regarding domestic and cross-border, intra-EU and global, authorised and unauthorised offer, is currently needed;
M. whereas the form taken by advertising for online gambling varies between the Member States or is not regulated at all;
Specific nature of the online gambling sector and consumer protection
1. Considers that, in order to ensure a high level of consumer protection, in particular for those consumers who are the most vulnerable, a fair and legal offer of gambling services defined by each Member State in compliance with Union law might diminish the social costs and harmful effects of gambling activities;
2. Warns that gambling can lead to dangerous addiction, which is an issue that would need to be addressed in any legislative proposal for the sake of consumers;
3. Calls on the Commission and the Member States to take action against illegal gambling offered from within Member State territories; urges the Commission, in this regard, to call on the Member States to take enforcement measures against offers for illegal gambling in its planned recommendations on consumer protection and advertising;
4. Believes that there is a dangerous link between severe economic hardship and high levels of gambling; stresses that the present, extremely harsh social and economic climate has been instrumental in the huge upsurge in gambling, in particular among the poorest sections of society, and that there is, therefore, a need for close, ongoing monitoring of levels of gambling addiction and problem gambling;
5. Affirms that online gambling is a form of commercial use of sport and that, while the online gambling sector is growing steadily by keeping abreast of technological innovations, Member States face difficulties in controlling it, given the specific nature of the internet, which creates the risk of violations of consumers’ rights and of the sector being subject to investigations in the context of the fight against organised crime;
6. Insists that, regardless of the manner in which Member States decide to organise and regulate the offer of online gambling services at national level, a high level of protection of human health and consumers must be ensured; calls on the Commission to continue to explore measures at EU level to protect vulnerable consumers, including formalised cooperation between regulatory authorities in the Member States; stresses that the expert group should ensure that it is impossible for minors to access online gambling services; invites Member States to oblige operators working with a licence from the Member State to carry the logo, trustmark of the regulatory authority in a prominent fixed position on its website;
7. Asks the Commission to study what can be done to stop the practice whereby companies based in one Member State market online-gambling services – for example via satellite-TV or advertisement campaigns – in another Member State in which they are not licensed to offer such services;
8. Calls for operators to be obliged to display clear, prominent and explicit warnings to minors stating that it is illegal for them to engage in online gambling;
9. Considers that measures should be taken to ensure that the more vulnerable members of society do not have their subsistence jeopardised even further as a result of gambling;
10. Believes that additional research and data are needed in order to quantify compulsive gambling and the risks associated with different forms of gambling; calls on all the Member States and the Commission to carry out, in a coordinated manner, further studies to understand problem gambling; notes that gambling operators have a responsibility to contribute towards the prevention of gambling addiction;
11. Calls on the Commission, in cooperation with the Member States – where appropriate through the expert group – to explore the possibility of EU-wide interoperability between national self-exclusion registers that include, inter alia, self-exclusion, personal loss and time limits, and that are accessible to national authorities and licensed gambling operators, so that any customer self-excluding or surpassing their gambling limits at one gambling operator has the opportunity to be automatically self-excluded from all other licensed gambling operators; underlines the fact that any mechanism to exchange personal information on problem-gamblers must be subject to strict data protection rules; stresses the importance of the expert group in working towards the protection of citizens against gambling addictions; stresses that in order to make consumers aware of their own gambling activity, this register should show the consumer all information pertaining to her/his gambling history whenever she/he starts to play;
12. Recommends that a clear distinction be made between gambling activities and other forms of online entertainment; services which combine distinguishing features of the gambling sector must fall under appropriate gambling legislation and fully respect age and identity verification mechanisms;
13. Notes that self-regulatory initiatives can serve as good contributions for identifying the content of common standards; reiterates its position that, in an area as sensitive as gambling, self-regulation can only complement but not replace national legislation;
14. Calls on the Commission to consider implementing a compulsory third-party identification control in order to exclude minors or persons using fake identities from playing; suggests that this could, inter alia, be a check on social security number, bank account information or other unique identifier, noting that such identification should take place in advance of any gambling activity;
15. Believes that the software used for online gambling services should be made more secure and that common minimum certification requirements should be laid down in order to ensure that uniform parameters and standards are used;
16. Draws attention to the need to draw up efficient methods of betting supervision, bearing in mind the rapid development of the online environment, but highlights as well the importance of protecting users’ personal data against abuse;
17. Takes the view that common standards for online gambling should address the rights and obligations of both the service provider and the consumer, ensuring a high level of protection for citizens and consumers, in particular minors and other vulnerable persons, and the prevention of misleading and excessive advertisements; encourages the European gambling operators’ associations to develop and adopt self-regulatory codes of conduct;
18. Calls on the Commission to include in its recommendation that gambling operators should be obliged actively to promote the use of self-restrictions at the time of registration as well as in cases of repeated losses;
19. Recommends the introduction of uniform, pan-European common security standards for electronic identification and cross border e-verification services; welcomes the Commission’s proposal for a directive on e-identification and authentication, which will allow for interoperability of national e-identification schemes where these exist; calls, therefore, for registration and identification procedures to be streamlined and made more efficient, notably in order to ensure efficient identification mechanisms and to prevent multiple accounts per player and access by minors to online gambling websites; recommends the exchange of best practices between Member States on enforcement measures – such as on establishing white and black lists of illegal gambling websites, jointly defining secure and traceable payment solutions, and considering the feasibility of blocking financial transactions – in order to protect consumers against illegal operators;
20. Calls on the Member States and on operators to encourage responsible advertising in relation to online gambling; welcomes the Commission’s initiative to adopt a Recommendation on responsible gambling advertising: asks the Commission to include common minimum standards which provide sufficient protection for vulnerable consumers; recommends that advertising should be responsible, contain clear warnings as to the risks of gambling addiction and be neither excessive nor displayed on content specifically targeted at minors or where there is a higher risk of targeting minors, as is the case notably with social media advertising;
21. Calls for the definition and implementation of measures to enable children and young people to attain and further develop digital literacy; believes that the introduction of school courses aimed at young people on the best uses of the Internet could make users more adept in protecting themselves against addiction to online gambling services;
22. Stresses the important role of education, advisory services and parents in raising awareness on the subject of online gambling and its consequences among minors;
23. Calls on the Commission and the Member States to introduce effective measures to raise awareness of the risks of gambling addiction, targeting young people in particular;
24. Calls for socially responsible advertising of online gambling games to be permitted only for gambling products which are legal; considers that it should never be allowed to advertise for online gambling services by exaggerating the probability of winning, so that a false impression is given that gambling is a reasonable strategy for improving a person’s finances; believes that advertising should contain clear information concerning the consequences of compulsive gambling;
25. Stresses that defining a non‑harmful format for advertising, and rules on its dissemination, is key to preventing people under 18 from gambling and to combating problematic and compulsive gambling;
26. Stresses that consumer protection measures should be flanked by a combination of preventive and responsive enforcement measures to reduce the contact of citizens with unauthorised operators; stresses the importance of jointly defining the notion of legal gambling operators, so that Member States, in compliance with EU law, only authorise operators who fulfil at least the following requirements and are thus considered to be legal:
(a)
the operator must have a licence which gives it a right to operate in the Member State of the player;
(b)
the operator is not considered to be illegal under the law applicable in any other Member State;
27. Is of the opinion that a registration process should include, as a mandatory feature, maximum loss limits, set and defined by the player for a certain time period; as a minimum, this feature should be present in games with short frequency;
Compliance with EU law
28. Stresses that, on the one hand, providers of online gambling should in all cases respect the national laws of the Member States in which they operate and, on the other hand, that Member States should retain the right to impose the restrictions they deem necessary and justified to address illegal online gambling in order to implement national legislation and exclude illegal providers from market access;
29. Recognises that, in accordance with the principle of subsidiarity, the Member States have the right to determine how the offer of online gambling services is to be organised and regulated at national level, and the right to enforce all measures they consider necessary against illegal gambling services, while observing the basic EU Treaty principles; recognises that such legislation must be proportionate, consistent, transparent, and non-discriminatory; notes the need for more coherent EU policies in order to address the cross-border nature of online gambling;
30. Notes that the Commission has sent letters to a number of Member States asking for detailed information on their current gambling legislation; calls on the Commission to continue the dialogue with the Member States; takes note of the Commission’s work on the infringement cases and on complaints brought against certain Member States; calls on the Commission to continue to monitor and enforce compliance of national laws and practices with EU law, in cooperation with the Member States, and to launch infringement procedures against those Member States that appear to breach EU law; respects the decision taken by the Member States in relation to the establishment of monopolies in this sector, provided that, in line with the case-law of the Court of Justice, they are subject to strict state control and ensure a particularly high level of consumer protection, that their activities are coherent with the objectives of general interest and that they reduce gambling opportunities in a consistent manner;
31. Calls on the Commission, the Member States and the expert group on gambling services to draw up coordinated measures and strategies, including exchanges of best practice, with a view to looking into and addressing the problem of tax avoidance by authorised operators who provide online gambling services on the EU market but have their registered offices in tax havens within or outside the EU;
32. Notes the risks that access by consumers to illegal online gambling services might pose; calls on the Commission and the Member States to discuss, as part of the work of the group of experts on gambling services, the social costs of permitting regulated gambling activities versus the harmful effects of consumers resorting to illegal operators;
33. Emphasises that those Member States that choose to open up their online gambling sector must provide for a transparent and legally certain licensing application procedure based on objective and non-discriminatory criteria, in full compliance with EU law and with sufficient and strict citizen and consumer protection;
Administrative cooperation
34. Calls on the expert group on gambling services and on the Commission to facilitate, as much as possible, the flow of data between regulators in the Member States in order to share best practices and information to facilitate the establishment of a common system for identifying players, enforcement measures against illegal operators, enhance protection of consumers, responsible advertising, establishment of white and black lists, prevent match-fixing and make self-exclusion mechanisms that include, inter alia, personal time and money limits applicable throughout the EU; calls on the Commission to arrange for the expert group to benefit from the broadest expertise possible in the development of its work; urges the Member States to restart the dialogue on online gambling services in the forum of the Council Working Party on establishment and services;
35. Calls on the Commission always to include experts specialised in problem and pathological gambling in expert groups and consultations;
36. Is of the opinion that cooperation and exchanges of best practices among national experts from the social and health spheres specialising in pathological and problem gambling should be strengthened at European level;
37. Emphasises that, while the effective exchange of information between investigative bodies is important for successful law enforcement, action to combat match-fixing must comply with national and European data protection laws and regulations;
38. Encourages the Member States, in the context of the expert group, to work in close cooperation with the Commission and with each other to coordinate steps to combat the unauthorised supply of cross-border gambling services, and to implement the action plan contained in the Commission’s communication on online gambling;
39. Recognises that cooperation among Member States is essential but stresses that it is also very important that the expert group on gambling works in close collaboration with all stakeholders, including the gambling industry and consumer organisations;
40. Stresses the importance for the expert group to work towards more transparent and simplified procedures that remove unnecessary administrative burdens on Member States that could unnecessarily increase costs for legal online operators in those countries which choose to open up their markets; notes that the removal of administrative burdens must not compromise protection of consumers;
41. Believes that steps should be taken to bring national tax regimes for gambling services into line with one other in order to prevent disproportionate tax concessions from fostering a proliferation and concentration of online gambling services;
42. Encourages national regulatory authorities in those Member States that have chosen to introduce licensing systems to exchange best practices that would facilitate the application of national gambling licenses, including technical standards for gaming equipment; encourages the competent national regulatory authorities to allow operation of a gambling company within their jurisdiction only when said company does not operate in contravention of the law in another Member State, the legislation of which has not been established as non-compliant by the Court of Justice;
Money laundering
43. Points to the fact that online gambling is a non-cash-based environment and that – given the dependency on third-party financial service providers – additional safeguards against money laundering are needed; emphasises the need for close cooperation between national gambling authorities, national police and national enforcement authorities in preventing criminal activity;
44. Calls on the Commission, the Member States and the expert group to take effective action against money laundering; welcomes, in this respect, the proposal to extend the provisions of the Anti-Money Laundering Directive to include all forms of gambling, and calls on the competent national authorities to ensure that any transaction suspected of being potentially connected to money laundering or other criminal activity is reported in accordance with the provisions of this Directive;
45. Calls on the Council to proceed in a swift and ambitious manner with the negotiations on the Commission proposal for a Directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (COM(2013)0045), and to address all types of gambling, including online gambling, in order to prevent the exploitation of online sports-betting activities by criminal interests for money laundering purposes;
46. Emphasises that solid registration and unambiguous verification systems are key tools in preventing any misuse of online gambling, such as money laundering; notes that, for such identity verification purposes, advantage can be taken of existing and developing online structures, such as online bank and credit-card verification systems;
47. Takes the view that all the online gambling companies operating in the EU area need to be registered as legitimate entities in the EU;
48. Stresses that all the Member States must identify and designate the responsible public authority in charge of monitoring online gambling; stresses that the authority will also be authorised to intervene should any suspicious online gambling appear; gaming companies should also be required to inform the authority about any suspicious gaming activity;
Integrity of sports
49. Stresses that, in view of the transnational nature of match-fixing, the fight against it requires more effective cooperation between all stakeholders, including public authorities, law enforcement agencies, the sport industry, gambling operators and gambling regulators, athletes and supporters, while emphasis should also be given to education and prevention actions in this regard; welcomes, in this respect, the recent Commission 2012 Preparatory Action, which supports transnational educating projects in order to combat match fixing; notes that match fixing occurs in both the offline and the online gambling markets and that, in the majority of cases, online betting-related match-fixing occurs through gambling operators established in unregulated markets outside the EU;
50. Calls for a code of conduct, as a part of a self-regulatory initiative containing a general ban on all staff (in particular players, coaches, referees, medical and technical staff, owners and managers of clubs) involved in sporting events who may have a direct influence on the result from placing bets on their own matches or events; also emphasises, in this context, the need for strict and reliable age and identity verifications systems at Member State level; calls on sports organisations to use education campaigns and codes of conduct to educate – from an early age – sportspersons, referees and officials on the illegality of manipulating sports results;
51. Recognises that efforts to combat sport organisations’ involvement in corrupt activities like match-fixing or money laundering, such as codes of conduct, need to address all stakeholder groups (officials, owners, managers, agents, players, referees and supporters) and all organisations (clubs, leagues, federations, etc.);
52. Calls on the Member States to increase the priority given to preventing corruption in sport and stresses the need for increased focus on efficient law enforcement in this regard; calls for the adoption at national level of effective measures to prevent conflicts of interest, notably by avoiding wagers of all stakeholders from the world of sports on betting organised on competitions in which they are involved; calls upon all sports governing bodies to commit to good governance practices in order to reduce the risk of falling victim to match-fixing; calls on the Commission, in this regard, to take into account the work of the Council of Europe on the assessment of the risks of certain types of bets and to assess the possible risks of spot betting, where it is possible to bet on certain bets during a competition and to take appropriate action accordingly;
53. Calls on sport federations and gambling operators to include, in a code of conduct, a ban on betting on so-called negative events, such as yellow cards, penalty kicks or free kicks during a match or event; calls on Member States and gambling operators to ban all forms of live sports betting since these have proved to be very vulnerable to match-fixing and therefore pose a risk to the integrity of sport;
54. Calls for an obligation for cooperation and exchange of information on suspicious activities at national as well as European level, among sports bodies, public authorities, Europol and Eurojust, in order to combat criminal cross-border online gambling activities;
55. Welcomes the Commission’s intention to promote a better exchange of good practice in regard to combating match-fixing; highlights the importance of the support of the European Union to the ongoing work within the Council of Europe towards the negotiation of an international convention on the protection and the promotion of sports integrity; highlights that match fixing is not always related to betting, and that this non-betting side to match fixing, which also poses a problem to the integrity of sports, needs to be addressed as well; stresses the need for strengthened cooperation at EU and global level in the fight against match fixing; calls on the Commission to take the lead in the creation of a global platform for exchange of information and best practices and in the coordination of joint prevention and enforcement actions between regulators, sports organisations, police and judicial authorities and gambling operators;
56. Considers that a consistent policy on criminal sanctions is essential to a pan-European approach to regulating the online gambling sector and, to this end, urges the Member States to ensure that the fraudulent manipulation of results for financial or other advantage is prohibited by establishing as a criminal offence any threat to the integrity of competitions, including those linked to betting operations; urges the Commission to take action at EU level against unregulated online gambling and to support the fight against match-fixing;
57. Recognises that in some Member States gambling revenues and lotteries represent a considerable source of income that can be channelled to support publicly beneficial and charitable purposes, cultural works, grassroots sports and horse racing and equine sector; underlines, furthermore, the significance of this sustainable contribution and specific role that should be acknowledged in discussions at the European level; reaffirms its position that sports bets are a form of commercial use of sporting competitions; recommends, while fully respecting the Members States’ competence on the issue, that sporting competitions should be protected from any unauthorised commercial use, notably by recognising the property rights of sports event organisers, not only in order to secure a fair financial return for the benefit of all levels of professional and amateur sport but also as a means of strengthening the fight against sports fraud, particularly match-fixing;
58. Calls for more cooperation at European level, under the coordination of the Commission, to identify and prohibit online betting operators engaged in illegal activities such as, inter alia, match-fixing or betting on junior competitions involving minors and expects the online gambling industry to respect this ban through self-regulation;
59. Encourages the Member States to consider a ban on all forms of spot fixing, such as gambling on corner kicks, free kicks, throw-ins and yellow cards, as these has proven to be very vulnerable to match-fixing;
60. Calls up the Commission to install a European alert system for betting regulators in order rapidly to exchange information about fixed sporting events;
61. Welcomes transnational education projects to combat match-fixing on a global level;
62. Stresses that athletes need effective protection mechanisms to oppose corrupting influences, including the safeguarding of the moral and physical integrity of athletes, proper working conditions and the safeguarding of salaries or remunerations, including bans on participation at different levels of competition for sports organisations failing to regularly fulfil these obligations towards their athletes;
63. Emphasises that match-fixing allegations are often tried in public courts as well as by sports arbitration and that, under both procedures, international minimum procedural standards, as laid down in Article 6 of the European Convention on Human Rights, must be observed;
64. Calls for the strict regulation or the prohibition, after an evaluation conducted at the level of each Member State, of dangerous forms of gambling;
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65. Instructs its President to forward this resolution to the Council, the Commission, and the governments and parliaments of the Member States.
see, to that effect, Case C 275/92 Schindler, paragraphs 57 to 60; Case C 124/97 Läärä and Others, paragraphs 32 and 33; Case C-67/98 Zenatti, paragraphs 30 and 31; Case C-243/01 Gambelli and Others, paragraph 67; Case C-42/07Liga Portuguesa, paragraph 56; Joined Cases C 316/07, C 358/07 to C 360/07, C 409/07 and C 410/07, Markus Stoß and others, paragraph 74; Case C 212/08, Zeturf Ltd, paragraph 38; Case C-72/10 Costa paragraph 71; Case C 176/11 Hit Larix, paragraph 15; Joined Cases C 186/11 and C 209/11 Stanleybet and others, paragraph 44.
Appointment of Luigi Berlinguer to the panel set up under Article 255 of the TFEU
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European Parliament decision of 10 September 2013 proposing the appointment of Luigi Berlinguer to the panel set up under Article 255 of the Treaty on the Functioning of the European Union (2013/2161(INS))