Index 
Texts adopted
Tuesday, 16 April 2019 - StrasbourgFinal edition
Community statistics on migration and international protection ***I
 EU Accession to the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications ***
 Action of the Union following its accession to the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications ***I
 EU-Philippines Agreement on certain aspects of air services ***
 International Agreement on olive oil and table olives ***
 Nomination of a member of the Court of Auditors – Viorel Ştefan
 Nomination of a member of the Court of Auditors – Ivana Maletić
 Protection of persons reporting on breaches of Union law ***I
 Cross-border distribution of collective investment undertakings (Directive) ***I
 Cross-border distribution of collective investment undertakings (Regulation) ***I
 Capital Requirements (Regulation) ***I
 Capital Requirements (Directive) ***I
 Loss-absorbing and recapitalisation capacity of credit institutions and investment firms (Regulation)***I
 Loss-absorbing and recapitalisation capacity of credit institutions and investment firms (Directive) ***I
 Sovereign bond-backed securities ***I
 European Supervisory Authorities and financial markets ***I
 European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board ***I
 Markets in financial instruments and taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) ***I
 Prudential supervision of investment firms (Directive) ***I
 Prudential requirements of investment firms (Regulation) ***I
 Transparent and predictable working conditions in the European Union ***I
 European Labour Authority ***I
 Conservation of fishery resources and protection of marine ecosystems through technical measures ***I
 Regulation on European business statistics ***I
 OLAF investigations and cooperation with the European Public Prosecutor's Office ***I
 Establishing the instrument for financial support for customs control equipment ***I
 Establishing the 'Customs' programme for cooperation in the field of customs ***I
 Marketing and use of explosives precursors ***I
 Common framework for European statistics relating to persons and households ***I
 Interoperability between EU information systems in the field of borders and visa ***I
 Interoperability between EU information systems in the field of police and judicial cooperation, asylum and migration ***I
 European network of immigration liaison officers ***I
 Type-approval requirements for motor vehicles as regards general safety ***I

Community statistics on migration and international protection ***I
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Resolution
Consolidated text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 862/2007 of the European Parliament and of the Council on Community statistics on migration and international protection (COM(2018)0307 – C8-0182/2018 – 2018/0154(COD))
P8_TA(2019)0359A8-0395/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0307),

–  having regard to Article 294(2) and Article 338(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0182/2018),

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

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

–  having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs and the position in the form of amendments of the Committee on Women's Rights and Gender Equality (A8-0395/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) .../… of the European Parliament and of the Council amending Regulation (EC) No 862/2007 of the European Parliament and of the Council on Community statistics on migration and international protection

P8_TC1-COD(2018)0154


(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 338(1) thereof,

Having regard to the proposal from the European Commission,

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

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

Whereas:

(1)  Regulation (EC) No 862/2007 of the European Parliament and of the Council(2) establishes a common and comparable legal framework for European statistics on migration and international protection.

(2)  To respond to new needs within the Union for statistics on asylum migration and managed migration international protection, and whereas the characteristics of migration migratory movements are subject to rapid change, there is a need for a framework allowing quick response to changing needs as regards statistics on asylum migration and managed migration international protection. [Am. 1]

(2a)  Due to the constant changing and diverse nature of current migratory flows, comprehensive and comparable gender-disaggregated statistical data on the migrant population are needed to understand the reality of the situation, identify vulnerabilities and inequalities, and provide policy makers with reliable data and information for the development of future public policies. [Am. 2]

(3)  To support the Union in responding effectively to the challenges posed by migration and in developing gender-responsive and human-rights based policies, there is a need for sub-annual frequency data on migration asylum and international protection managed migration. [Am. 3]

(4)  Migration Asylum and international protection managed migration statistics are fundamental for the study, definition and evaluation of a wide range of policies, particularly as regards responses to the arrival of persons seeking protection in Europe, with the aim of achieving the best solutions. [Am. 4]

(4a)  Statistics on migration and international protection are essential for having an overview of migratory movements within the Union and for Member States to be able to apply Union law properly in accordance with fundamental rights as laid down in the Charter of Fundamental Rights of the European Union (the ‘Charter’) and the Convention for the Protection of Human Rights and Fundamental Freedoms. [Am. 5]

(4b)  Persecution on the ground of gender constitutes a ground for seeking and being granted international protection. The national and Union statistical authorities should collect the statistics on applications for international protection based on the grounds of gender, including gender-based violence. [Am. 6]

(5)  To ensure the quality, and, in particular, the comparability, of data provided by the Member States, and for reliable overviews to be drawn up at Union level, the data used should be based on the same concepts, and should refer to the same reference date or period.

(6)  Data provided on migration asylum and international protection managed migration should be consistent with the relevant information collected pursuant to Regulation (EC) No 862/2007.

(7)  Regulation (EC) No 223/2009 of the European Parliament and of the Council(3) provides a reference framework for European statistics on migration and international protection. In particular, it requires compliance with the principles of professional independence, impartiality, objectivity, reliability, statistical confidentiality and cost effectiveness.

(8)  When developing, producing and disseminating European statistics, the national and European statistical authorities, and, where applicable, other relevant national and regional authorities, should take account of the principles set out in the European Statistics Code of Practice, as reviewed and updated by the European Statistical System Committee on 28 September 2011.

(9)  Since the The objective of this Regulation, namely to revise and complete the existing common rules for the collection and compilation of European statistics on migration and international protection, cannot be sufficiently achieved by the Member States, but can acting individually. Rather rather, for reasons of harmonisation and comparability, it can be better achieved at Union level, the . The Union may therefore adopt appropriate measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(9a)  In order to achieve the objectives of Regulation (EC) No 862/2007, sufficient financial resources should be allocated for the collection, analysis and dissemination of high quality national and Union statistics on migration and international protection, in particular by supporting actions in that regard in accordance with the Regulation (EU) No 516/2014 of the European Parliament and of the Council(4). [Am. 7]

(10)  This Regulation guarantees the right to respect for private and family life, and to the protection of personal data, non-discrimination and gender equality, as set out in Articles 7, and 8 8, 21 and 23 of the Charter and in accordance with Regulation (EU) 2016/679 of the European Parliament and of the Council(5). [Am. 8]

(10a)  The collection of gender-disaggregated data should allow for the identification and analysis of specific vulnerabilities and capacities of women and men, revealing gaps and inequalities. Gender-responsive data on migration have the potential to promote greater equality and offer opportunities for disadvantaged groups. Migration statistics should also take account of variables such as gender identity and sexual orientation to collect data on LGBTQI+ persons’ experiences and inequalities in migration and asylum processes. [Am. 9]

(11)  To In order to ensure uniform conditions for the implementation of Regulation (EC) No 862/2007 regulation, implementing powers should be conferred on the Commission in respect of specifying disaggregations laying down the rules on the appropriate formats for the transmission of data. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council(6). [Am. 10]

(11a)  In order to adapt Regulation (EC) No 862/2007 to technological and economic developments, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending Regulation (EC) No 862/2007 to update certain definitions and of supplementing it to determine the groupings of data and additional disaggregations and to lay down rules on accuracy and quality standards. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making(7). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. [Am. 11]

(11b)  The effective monitoring of the application of Regulation (EC) No 862/2007 requires that it be evaluated at regular intervals. The Commission should thoroughly assess the statistics compiled pursuant to Regulation (EC) No 862/2007, as well as their quality and timely provision, for the purpose of submitting reports to the European Parliament and to the Council. Close consultation should be held with all actors involved in asylum data collection, including United Nations agencies and other relevant international and non-governmental organisations. [Am. 12]

(12)  Regulation (EC) No 862/2007 should therefore be amended accordingly.

(13)  The European Statistical System Committee has been consulted,

HAVE ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 862/2007 is amended as follows:

(-1)  in Article 1, point (c) is replaced by the following:"

‘(c) administrative and judicial procedures and processes in the Member States relating to immigration, granting of permission to reside, citizenship, asylum and other forms of international protection, irregular entry and stay and returns.’; [Am. 13]

"

(-1a)  Article 2 is amended as follows:

(a)  in paragraph 1, point (j) is replaced by the following:"

‘(j) ‘application for international protection’ means an application for international protection as defined in point (h) of Article 2 of Directive 2011/95/EU of the European Parliament and of the Council(8);’; [Am. 14]

"

(b)  in paragraph 1, point (k) is replaced by the following:"

‘(k) ‘refugee status’ means refugee status as defined in point (e) of Article 2 of Directive 2011/95/EU;’; [Am. 15]

"

(c)  in paragraph 1, point (l) is replaced by the following:"

‘(l) ‘subsidiary protection status’ means subsidiary protection status as defined in point (g) of Article 2 of Directive 2011/95/EU;’; [Am. 16]

"

(d)  in paragraph 1, point (m) is replaced by the following:"

‘(m) ‘family members’ means family members as defined in point (g) of Article 2 of Regulation (EU) No 604/2013 of the European Parliament and of the Council(9);’; [Am. 17]

"

(e)  in paragraph 1, point (o) is replaced by the following:"

‘(o) ‘unaccompanied minor’ means an unaccompanied minor as defined in point (l) of Article 2 of Directive 2011/95/EU;’; [Am. 18]

"

(f)  in paragraph 1, point (p) is replaced by the following:"

‘(p) ‘external borders’ means external borders as defined in point 2 of Article 2 of Regulation (EU) 2016/399 of the European Parliament and of the Council(10);’; [Am. 19]

"

(g)  in paragraph 1, point (q) is replaced by the following:"

‘(q) ‘third-country nationals refused entry’ means third-country nationals who are refused entry at the external border because they do not fulfil all the entry conditions laid down in Article 6(1) of Regulation (EU) 2016/399 and do not belong to the categories of persons referred to in Article 6(5) of that Regulation;’; [Am. 20]

"

(h)  in paragraph 1 the following point is added:"

‘(sa) ‘removal’ means removal as defined in point 5 of Article 3 of Directive 2008/115/EC of the European Parliament and of the Council(11);’; [Am. 21]

"

(i)  in paragraph 1 the following point is added:"

‘(sb) ‘voluntary departure’ means voluntary departure as defined in point 8 of Article 3 of Directive 2008/115/EC;’; [Am. `22]

"

(j)  in paragraph 1 the following point is added:"

‘(sc) ‘assisted voluntary return’ means voluntary departure as defined in point 8 of Article 3 of Directive 2008/115/EC supported by logistical, financial or other material assistance.’; [Am. 23]

"

(k)  paragraph 3 is deleted. [Am. 24]

(-1b)  Article 3 is replaced by the following:"

‘Article 3

Statistics on international migration, usually resident population and acquisition of citizenship

1.  Member States shall supply to the Commission (Eurostat) statistics on the numbers of:

   (a) immigrants moving to the territory of the Member State, disaggregated as follows:
   (i) groups of citizenship by age and gender;
   (ii) groups of country of birth by age and gender;
   (iii) groups of country of previous usual residence by age and gender;
   (b) emigrants moving from the territory of the Member State disaggregated as follows:
   (i) groups of citizenships;
   (ii) age;
   (iii) gender;
   (iv) groups of countries of next usual residence;
   (c) persons having their usual residence in the Member State at the end of the reference period, disaggregated as follows:
   (i) groups of citizenship by age and gender;
   (ii) groups of country of birth by age and gender;
   (d) persons having their usual residence in the territory of the Member State and having acquired during the reference year the citizenship of the Member State and having formerly held the citizenship of another Member State or a third country or having formerly been stateless, disaggregated by age and gender, and by the former citizenship of the persons concerned and by whether the person was formerly stateless;
   (da) persons having their usual residence in the territory of the Member State and having acquired during the reference year a long-term residence permit, disaggregated by age and gender.

2.  The statistics referred to in paragraph 1 shall relate to reference periods of one calendar year and shall be supplied to the Commission (Eurostat) within 12 months of the end of the reference year. The first reference year shall be 2020.’; [Am. 25]

"

(1)  Article 4 is amended as follows:

(-a)  in paragraph 1, point (c) is replaced by the following:"

‘(c) applications for international protection having been withdrawn during the reference period, disaggregated by type of withdrawal;’; [Am. 26]

"

(a)  in paragraph 1, the following points are added:"

‘(d) persons having submitted an application for international protection or having been included in such an application as a family member during the reference period and applying for international protection for the first time;

   (da) persons having submitted an application for international protection or having been included in such an application as a family member and having had their applications processed under the accelerated procedure referred to in Article 31(8) of Directive 2013/32/EU of the European Parliament and of the Council(12); [Am. 27]
   (db) persons having submitted an application for international protection or having been included in such an application as a family member and having had their applications processed under the border procedures referred to in Article 43 of Directive 2013/32/EU during the reference period; [Am. 28]
   (dc) persons having submitted an application for international protection or having been included in such an application as a family member during the reference period and who are exempted from the accelerated procedure or the border procedure in accordance with Articles 24(3) and 25(6) of Directive 2013/32/EU; [Am. 29]
   (dd) persons having submitted an application for international protection without having been registered in Eurodac as referred to in Article 14 of Regulation (EU) No 603/2013 of the European Parliament and of the Council(13); [Am. 30]
   (de) persons having submitted an application for international protection or having been included in such an application as a family member during the reference period who are able to present documentary evidence which can aid in the establishment of their identity; [Am. 31]
   (df) persons having submitted a subsequent application for international protection as referred to in Article 40 of Directive 2013/32/EU or having been included in such an application as a family member during the reference period; [Am. 32]
   (dg) persons having submitted an application for international protection or having been included in such an application as a family member during the reference period and who were in detention in accordance with Directive 2013/33/EU of the European Parliament and of the Council(14) at the end of the reference period, disaggregated by the month those persons were placed in detention and the grounds for the detention; [Am. 33]
   (dh) persons having submitted an application for international protection or having been included in such an application as a family member and who were subject to an administrative or judicial decision or act ordering their detention in accordance with Directive 2013/33/EU during the reference period; [Am. 34]
   (di) persons having submitted an application for international protection or having been included in such an application as a family member and who were subject to an administrative or judicial decision or act ordering an alternative to detention in accordance with Directive 2013/33/EU during the reference period, disaggregated by type of alternative as follows:
   (i) reporting;
   (ii) deposit of a financial guarantee;
   (iii) obligation to stay at an assigned place;
   (iv) other type of alternative to detention; [Am. 35]
   (dj) persons having submitted an application for international protection or having been included in such an application as a family member during the reference period and who were subject to an administrative or judicial decision or act ordering an alternative to detention in accordance with Directive 2013/33/EU at the end of the reference period, disaggregated by the month, the administrative or judicial decision or act was issued against those persons, and further disaggregated by type of alternatives as follows:
   (i) reporting;
   (ii) deposit of a financial guarantee;
   (iii) obligation to stay at an assigned place;
   (iv) other type of alternative to detention; [Am. 36]
   (dk) persons having submitted an application for international protection and who have undergone an age assessment during the reference period; [Am. 37]
   (dl) decisions on age assessments of applicants, disaggregated as follows:
   (i) assessments concluding that the applicant is a minor;
   (ii) assessments concluding that the applicant is an adult;
   (iii) inconclusive or abandoned assessments; [Am. 38]
   (dm) persons having submitted an application for international protection or having been included in such an application as a family member and having been identified as being in need of special procedural guarantees in accordance with Article 24 of Directive 2013/32/EU or as applicants with special reception needs within the meaning of point (k) of Article 2 of Directive 2013/33/EU during the reference period; [Am. 39]
   (dn) persons having submitted an application for international protection or having been included in such an application as a family member and having benefited from free legal assistance under Article 20 of Directive 2013/32/EU during the reference period, disaggregated by procedures at first and second instance; [Am. 40]
   (do) persons having submitted an application for international protection or having been included in such an application as a family member and having benefited from material reception conditions providing an adequate standard of living for applicants, in accordance with Article 17 of Directive 2013/33/EU, at the end of the reference period; [Am. 41]
   (dp) persons having submitted an application for international protection as unaccompanied minors and to whom a representative has been appointed in accordance with Article 25 of Directive 2013/32/EU during the reference period; [Am. 42]
   (dq) persons having submitted an application for international protection having been recognised as unaccompanied minors and having been granted access to the education system in accordance with Article 14 of Directive 2013/33/EU during the reference period; [Am. 43]
   (dr) persons having submitted an application for international protection, having been recognised as unaccompanied minors and having been placed in accordance with Article 31(3) of Directive 2011/95/EU during the reference period, disaggregated by the grounds for placement; [Am. 44]
   (ds) the average number of unaccompanied minors per guardian during the reference period.’; [Am. 45]

"

(b)  the last subparagraph of paragraph 1 is replaced by the following:"

‘These statistics shall be disaggregated by age and sex gender and by the citizenship of the persons concerned, and by unaccompanied minors. They shall relate to reference periods of one calendar month and shall be supplied to the Commission (Eurostat) within two months of the end of the reference month. The first reference month shall be January 2020.’; [Am. 46]

"

(ba)  in paragraph 2, point (a) is replaced by the following:"

‘(a) persons covered by first instance decisions rejecting applications for international protection taken by administrative or judicial bodies during the reference period, disaggregated as follows:

   (i) decisions considering applications to be inadmissible, further disaggregated by ground for inadmissibility;
   (ii) decisions rejecting applications as unfounded;
   (iii) decisions rejecting applications as manifestly unfounded under the regular procedure, further disaggregated by ground for rejection;
   (iv) decisions rejecting applications as manifestly unfounded under the accelerated procedure, further disaggregated by ground for acceleration and ground for rejection;
   (v) decisions rejecting applications on the ground that the applicant is eligible for protection within his or her country of origin in accordance with Article 8 of Directive 2011/95/EU;’; [Am. 47]

"

(bb)  in paragraph 2, point (b) is replaced by the following:"

‘(b) persons covered by first instance decisions, taken by administrative or judicial bodies during the reference period, granting, revoking, ending or refusing to renew refugee status based on cessation, exclusion or other grounds; decisions taken on cessation or exclusion shall be further disaggregated by the specific ground on which cessation or exclusion is based;’; [Am. 48]

"

(bc)  in paragraph 2, point (c) is replaced by the following:"

‘(c) persons covered by first instance decisions, taken by administrative or judicial bodies during the reference period, granting, revoking, ending or refusing to renew subsidiary protection status based on cessation, exclusion or other grounds; decisions taken on cessation or exclusion shall be further disaggregated by the specific ground on which cessation or exclusion is based;’; [Am. 49]

"

(bd)  in paragraph 2, the following point is added:"

‘(ea) persons covered by first instance decisions reducing or withdrawing material reception conditions, taken by administrative or judicial bodies during the reference period, disaggregated by type of decision, duration of reduction or withdrawal and by ground.’; [Am. 50]

"

(c)  in paragraph 2, the last subparagraph is replaced by the following:"

‘These statistics shall be disaggregated by age and sex gender and by the citizenship of the persons concerned, and by unaccompanied minors. They shall relate to reference periods of three calendar months and shall be supplied to the Commission (Eurostat) within two months of the end of the reference period. The first reference period shall be January-March 2020.

These statistics shall be further disaggregated by decisions taken following a personal interview and decisions taken without a personal interview. Statistics on decisions taken following a personal interview shall be further disaggregated by personal interviews where the applicant received the services of an interpreter and personal interviews where the applicant did not receive the services of an interpreter.’; [Am. 51]

"

(d)  in paragraph 3, point (a) is deleted;

(da)  in paragraph 3, point (b) is replaced by the following:"

‘(b) persons covered by final decisions rejecting applications for international protection taken by administrative or judicial bodies in appeal or review during the reference period, disaggregated as follows:

   i) decisions considering applications to be inadmissible, further disaggregated by ground for inadmissibility;
   (ii) decisions rejecting applications as unfounded;
   (iii) decisions rejecting applications as manifestly unfounded under the regular procedure, further disaggregated by ground for rejection;
   (iv) decisions rejecting applications as manifestly unfounded under the accelerated procedure, further disaggregated by ground for acceleration and ground for rejection;
   (v) decisions rejecting applications on the ground that the applicant is eligible for protection within his or her country of origin in accordance with Article 8 of Directive 2011/95/EU;’; [Am. 52]

"

(db)  in paragraph 3, point (c) is replaced by the following:"

‘(c) persons covered by final decisions, taken by administrative or judicial bodies during the reference period, granting, revoking, ending or refusing to renew refugee status based on cessation, exclusion or other grounds; decisions taken on cessation or exclusion shall be further disaggregated by the specific ground on which cessation or exclusion is based;’; [Am. 53]

"

(dc)  in paragraph 3, point (d) is replaced by the following:"

‘(d) persons covered by final decisions, taken by administrative or judicial bodies during the reference period, granting, revoking, ending or refusing to renew subsidiary protection status based on cessation, exclusion or other grounds; decisions taken on cessation or exclusion shall be further disaggregated by the specific ground on which cessation or exclusion is based;’; [Am. 54]

"

(dd)  in paragraph 3, the following point is added:"

‘(ga) persons covered by final decisions reducing or withdrawing material reception conditions, taken by administrative or judicial bodies during the reference period, disaggregated by type of decision, duration of reduction or withdrawal and by ground.’; [Am. 55]

"

(e)  in paragraph 3, the last subparagraph is replaced by the following:"

‘Statistics under points (b), (c), (d), (e), (f) and (g) shall be disaggregated by age and sex gender and by the citizenship of the persons concerned, and by unaccompanied minors. In addition, for point (g), statistics shall be disaggregated by the country of residence and by the type of asylum decision. They shall relate to reference periods of one calendar year and shall be supplied to the Commission (Eurostat) within three months of the end of the reference year. The first reference year shall be 2020.’; [Am. 56]

"

(ea)  the following paragraph is inserted:"

‘3a. Member States shall supply to the Commission (Eurostat) statistics on the duration of appeals, in calendar days, from the time that the appeal is lodged until the time that there is a first instance decision on the appeal.’; [Am. 57]

"

(f)  in paragraph 4, point (d) is replaced by the following:"

‘(d) the numbers of transfers to which the decisions referred to in points (c) and (h) lead;’;

"

(g)  in paragraph 4, the following points are added:"

‘(f) the number of re-examination requests for taking back and taking charge of an asylum seeker;’

   (g) the provisions on which the requests referred to in point (f) are based;
   (h) the decisions taken in response to the requests referred to in point (f).’;

"

(h)  in paragraph 4, the last subparagraph is replaced by the following:"

These statistics shall be disaggregated by age and gender, and by the citizenship of the persons concerned, and by unaccompanied minors. These statistics shall relate to reference periods of one calendar year month and shall be supplied to the Commission (Eurostat) within three months of the end of the reference year. The first reference year period shall be January 2020.’; [Am. 58]

"

(ha)  the following paragraph is added:"

‘4a. The statistics referred to in paragraphs 1 to 4 shall be disaggregated by month of submission of the application.’; [Am. 59]

"

(1a)  Article 5 is amended as follows:

(a)  the title is replaced by the following:"

‘Statistics on the prevention of irregular entry and stay’; [Am. 60]

"

(b)  in paragraph 1, point (a) is replaced by the following:"

‘(a) third-country nationals refused entry to the Member State's territory at the external border, disaggregated by age, gender and citizenship;’; [Am. 61]

"

(c)  in paragraph 1, point (b) is replaced by the following:"

‘(b) third-country nationals found to be irregularly present in the Member State's territory under national laws relating to immigration.’; [Am. 62]

"

(d)  the third subparagraph of paragraph 1 is replaced by the following:"

‘The statistics under point (b) shall be disaggregated by age and gender, citizenship of the persons concerned, grounds for their apprehension and place of apprehension.’; [Am. 63]

"

(2)  Article 6 is amended as follows:

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

‘1. Member States shall supply to the Commission (Eurostat) statistics on:

   (-a) the number of applications for first-time residence permits made by third-country nationals, disaggregated by citizenship, by the reason for the permit being requested, by age and by gender; [Am. 64]
   (-aa) the number of rejected applications for first-time residence permits made by third-country nationals, disaggregated by citizenship, by the reason for which the permit was requested, by age and by gender; [Am. 65]
   (-ab) the number of applications for a residence permit changing immigration status or reason for stay refused during the reference period, disaggregated by citizenship, by the reason for the permit being refused, by age and by gender; [Am. 66]
   (a) the number of residence permits issued to persons who are third-country nationals, disaggregated as follows:
   (i) permits issued during the reference period whereby the person is being granted permission to reside for the first time, disaggregated by citizenship, by the reason for the permit being issued, by the length of validity of the permit, by age and by sex gender; [Am. 67]
   (ii) permits issued during the reference period and granted on the occasion of a person changing immigration status or reason for stay, disaggregated by citizenship, by the reason for the permit being issued, by the length of validity of the permit, by age and by sex gender; [Am. 68]
   (iii) valid permits at the end of the reference period (number of permits issued, not withdrawn and not expired), disaggregated by citizenship, by the reason for the issue of the permit, by the length of validity of the permit, by age and by sex gender; [Am. 69]
   (b) the number of long-term residents at the end of the reference period, disaggregated by citizenship, by type of long-term status, by age and by sex gender. [Am. 70]

For statistics under points (-a), (-aa) and (a), permits issued for family reasons shall be further disaggregated by reason and by status of the sponsor of the third-country national.’; [Am. 71]

"

(b)  paragraph 3 is replaced by the following:"

‘The statistics referred to in paragraph 1 shall relate to reference periods of one calendar year and shall be supplied to the Commission (Eurostat) within six months of the end of the reference year. The first reference year shall be 2020.’;

"

(3)  Article 7 is amended as follows:

(-a)  in paragraph 1, point (a) is replaced by the following:"

‘(a) the number of third-country nationals found to be in an irregular situation in the territory of the Member State who are subject to an administrative or judicial decision or act stating or declaring that their stay is irregular and imposing an obligation to leave the territory of the Member State, disaggregated by citizenship of the persons concerned and the reasons for the decision;’; [Am. 72]

"

(-aa)  in paragraph 1, the following point is inserted:"

‘(aa) the number of third-country nationals referred to in point (a) of this paragraph who were subject to an administrative or judicial entry-ban decision or act as referred to in Article 11 of Directive 2008/115/EC at the end of the reference period, disaggregated by citizenship of the persons concerned;’; [Am. 73]

"

(-ab)  in paragraph 1, the following point is inserted:"

‘(ab) the number of third-country nationals who were subject to an administrative or judicial decision or act ordering their detention in accordance with Directive 2008/115/EC during the reference period;’; [Am. 74]

"

(-ac)  in paragraph 1, the following point is inserted:"

‘(ac) the number of third-country nationals who were subject to an administrative or judicial decision or act ordering their detention in accordance with Directive 2008/115/EC at the end of the reference period, disaggregated by the month those third-country nationals were placed in detention;’; [Am. 75]

"

(-ad)  in paragraph 1 the following point is inserted:"

‘(ad) the number of third-country nationals who were subject to an administrative or judicial decision or act ordering an alternative to detention in accordance with Directive 2008/115/EC during the reference period, disaggregated by type of alternative as follows:

   (i) reporting;
   (ii) deposit of a financial guarantee;
   (iii) obligation to stay at an assigned place;
   (iv) other type of alternative to detention;’; [Am. 76]

"

(-ae)  in paragraph 1, the following point is inserted:"

‘(ae) the number of third-country nationals who were subject to an administrative or judicial decision or act ordering an alternative to detention in accordance with Directive 2008/115/EC at the end of the reference period, disaggregated by the month the administrative or judicial decision or act was issued against those persons, and further disaggregated by type of alternative as follows:

   (i) reporting;
   (ii) deposit of a financial guarantee;
   (iii) obligation to stay at an assigned place;
   (iv) other type of alternative to detention;’; [Am. 77]

"

(-af)  in paragraph 1, the following point is inserted:"

‘(af) the number of third-country nationals having been subject to a postponement of removal in accordance with Article 9 of Directive 2008/115/EC during the reference period, disaggregated by ground for postponement and citizenship of the persons concerned;’; [Am. 78]

"

(-ag)  in paragraph 1, the following point is inserted:"

‘(ag) the number of third-country nationals having been subject to an administrative or judicial decision or act ordering their detention and having taken judicial review proceedings as referred to in Article 15(2) of Directive 2008/115/EC during the reference period;’; [Am. 79]

"

(a)  in paragraph 1, point (b) is replaced by the following:"

‘(b) the number of third-country nationals who have in fact left the territory of the Member State, following an administrative or judicial decision or act, as referred to in point (a), disaggregated by the citizenship of the persons returned, by the type of return and assistance received, and by the destination country, further disaggregated by returns to the country of origin of the third-country national;’; [Am. 80]

"

(aa)  in paragraph 1, the following point is added:"

‘(ba) the number of third-country nationals who have left the territory of the Member State following an administrative or judicial decision or act, disaggregated by the type of decision or act as follows:

   i) in accordance with a formal Union readmission agreement;
   ii) in accordance with an informal Union readmission arrangement;
   (iii) in accordance with a national readmission agreement.

These statistics shall be further disaggregated by country of destination and the nationality of the person concerned.’; [Am. 81]

"

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

‘2. The statistics referred to in paragraph 1 shall be disaggregated by age and gender of the person concerned, and by unaccompanied minors. They shall relate to reference periods of three one calendar months month and shall be supplied to the Commission (Eurostat) within two weeks months of the end of the reference period. The first reference period shall be January to March 2020.’; [Am. 82]

"

(4)  Article 8 is deleted.

(4a)  In Article 9, paragraph 2 is replaced by the following:"

‘2. Member States shall report to the Commission (Eurostat) on the data sources used, the reasons for the selection of these sources and the effects of the selected data sources on the quality of the statistics, the mechanisms used to ensure protection of personal data and on the estimation methods used, and shall keep the Commission (Eurostat) informed of changes thereto.’; [Am. 83]

"

(4b)  The following Article is inserted:"

‘Article 9a

Delegated acts

The Commission is empowered to adopt delegated acts in accordance with Article 10a amending the definitions set out in Article 2(1).

The Commission is empowered to adopt delegated acts in accordance with Article 10a amending this Regulation by:

   (a) defining the categories of groups of country of birth, groups of country of previous and next usual residence and groups of citizenship as provided for in Article 3(1);
   (b) defining the categories of the reasons for the issuance of residence permits as provided for in Article 6(1)(a);
   (c) defining additional disaggregations;
   (d) laying down the rules on accuracy and quality standards.’; [Am. 84]

"

(5)  Article 10 is amended as follows:

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

‘1. The Commission shall be empowered to adopt implementing acts for the purpose of specifying disaggregations in line with Articles 4, 5, 6 and 7 and laying down the rules on the appropriate formats for the transmission of data as provided for in Article 9. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 11(2).’; [Am. 85]

These implementing acts shall be adopted in accordance with the procedure referred to in Article 11(2).’

"

(b)  In paragraph paragraph 2, point (d) is deleted. [Am. 86]

(5a)  The following Article is inserted:"

‘Article 10a

Exercise of the delegation

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

2.  The power to adopt delegated acts referred to in Article 9a shall be conferred on the Commission for an indeterminate period of time from ... [date of entry into force of this amending Regulation].

3.  The delegation of power referred to in Article 9a may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.  Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

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

6.  A delegated act adopted pursuant to Article 9a shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.’; [Am. 87]

"

(5b)  Article 11 is amended as follows:

(a)  the title is replaced by the following:"

‘Committee procedure’; [Am. 88]

"

(b)  paragraph 1 is replaced by the following:"

‘1. The Commission shall be assisted by the European Statistical System Committee, established by Regulation (EC) No 223/2009. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.’; [Am. 89]

"

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

‘2. Where reference is made to this paragraph, Article 5 and Article 10 of Regulation (EU) No 182/2011 shall apply, having regard to the provisions of Article 11 thereof.’; [Am. 90]

"

(d)  paragraph 3 is deleted. [Am. 91]

Article 2

Entry into force and application

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

Article 4 paragraphs (1) and (2) and Article 7 paragraph (1) point (b) and paragraph (2) of Regulation (EC) No 862/2007 shall apply from 1 March 2020.

Article 4 paragraphs (3) and (4) and Article 6 paragraphs (1) and (3) of Regulation (EC) No 862/2007 shall apply from 1 July 2020.

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

Done at …,

For the European Parliament For the Council

The President The President

(1) Position of the European Parliament of 16 April 2019.
(2)Regulation (EC) No 862/2007 of the European Parliament and of the Council of 11 July 2007 on Community statistics on migration and international protection and repealing Council Regulation (EEC) No 311/76 on the compilation of statistics on foreign workers (OJ L 199, 31.7.2007, p. 23).
(3)Regulation (EC) No 223/2009 of the European Parliament and of the Council of 11 March 2009 on European statistics and repealing Regulation (EC, Euratom) No 1101/2008 of the European Parliament and of the Council on the transmission of data subject to statistical confidentiality to the Statistical Office of the European Communities, Council Regulation (EC) No 322/97 on Community Statistics, and Council Decision 89/382/EEC, Euratom establishing a Committee on the Statistical Programmes of the European Communities (OJ L 87, 31.3.2009, p. 164).
(4) Regulation (EU) No 516/2014 of the European Parliament and of the Council of 16 April 2014 establishing the Asylum, Migration and Integration Fund, amending Council Decision 2008/381/EC and repealing Decisions No 573/2007/EC and No 575/2007/EC of the European Parliament and of the Council and Council Decision 2007/435/EC (OJ L 150, 20.5.2014, p. 168).
(5) Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).
(6)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).
(7) OJ L 123, 12.5.2016, p. 1.
(8) Directive 2011/95/EU of the European Parliament and of the Council of 13 December 2011 on standards for the qualification of third-country nationals or stateless persons as beneficiaries of international protection, for a uniform status for refugees or for persons eligible for subsidiary protection, and for the content of the protection granted (OJ L 337, 20.12.2011, p. 9).
(9)Regulation (EU) No 604/2013 of the European Parliament and of the Council of 26 June 2013 establishing the criteria and mechanisms for determining the Member State responsible for examining an application for international protection lodged in one of the Member States by a third-country national or a stateless person (OJ L 180, 29.6.2013, p. 31).
(10) Regulation (EU) 2016/399 of the European Parliament and of the Council of 9 March 2016 on a Union Code on the rules governing the movement of persons across borders (Schengen Borders Code) (OJ L 77, 23.3.2016, p. 1).
(11) Directive 2008/115/EC of the European Parliament and of the Council of 16 December 2008 on common standards and procedures in Member States for returning illegally staying third-country nationals (OJ L 348, 24.12.2008, p. 98).
(12)Directive 2013/32/EU of the European Parliament and of the Council of 26 June 2013 on common procedures for granting and withdrawing international protection (OJ L 180, 29.6.2013, p. 60).
(13)Regulation (EU) No 603/2013 of the European Parliament and of the Council of 26 June 2013 on the establishment of 'Eurodac' for the comparison of fingerprints for the effective application of Regulation (EU) No 604/2013 establishing the criteria and mechanisms for determining the Member State responsible for examining an application for international protection lodged in one of the Member States by a third-country national or a stateless person and on requests for the comparison with Eurodac data by Member States' law enforcement authorities and Europol for law enforcement purposes, and amending Regulation (EU) No 1077/2011 establishing a European Agency for the operational management of large-scale IT systems in the area of freedom, security and justice (OJ L 180, 29.6.2013, p. 1).
(14) Directive 2013/33/EU of the European Parliament and of the Council of 26 June 2013 laying down standards for the reception of applicants for international protection (OJ L 180, 29.6.2013, p. 96).


EU Accession to the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications ***
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European Parliament legislative resolution of 16 April 2019 on the draft Council decision on the accession of the European Union to the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications (06929/2019 – C8-0133/2019 – 2018/0214(NLE))
P8_TA(2019)0360A8-0187/2019

(Consent)

The European Parliament,

–  having regard to the draft Council decision (06929/2019),

–  having regard to the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications signed in Geneva on 20 May 2015 (11510/2018),

–  having regard to the request for consent submitted by the Council in accordance with Article 207 and Article 218(6), second subparagraph, point (a), of the Treaty on the Functioning of the European Union (C8‑0133/2019),

–  having regard to Rule 99(1) and (4) and Rule 108(7) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on Legal Affairs and the opinions of the Committee on International Trade and the Committee on the Environment, Public Health and Food Safety (A8-0187/2019),

1.  Gives its consent to the accession of the European Union to the Act;

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


Action of the Union following its accession to the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications ***I
PDF 134kWORD 48k
Resolution
Text
Annex
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council on the action of the Union following its accession to the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications (COM(2018)0365 – C8-0383/2018 – 2018/0189(COD))
P8_TA(2019)0361A8-0036/2019

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0365),

–  having regard to Article 294(2) and Article 207 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0383/2018),

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

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

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 20 March 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Legal Affairs and the opinions of the Committee on International Trade, the Committee on the Environment, Public Health and Food Safety and the Committee on Agriculture and Rural Development (A8-0036/2019),

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

2.  Takes note of the three statements by the Commission annexed to this resolution, the first and second of which will be published in the L series of the Official Journal of the European Union together with the final legislative act;

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council on the action of the Union following its accession to the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications

P8_TC1-COD(2018)0189


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/1753.)

ANNEX TO THE LEGISLATIVE RESOLUTION

Commission statement on the possible extension of EU geographical indication protection to non-agricultural products

The Commission takes note of the European Parliament resolution of 6 October 2015 on the possible extension of EU geographical indication protection to non-agricultural products.

The Commission launched a study in November 2018 to get further economic and legal evidence on the protection of non-agricultural GIs within the Single Market, as a complement to a study of 2013, and to obtain further data on issues such as competitiveness, unfair competition, counterfeiting, consumer perceptions, costs/benefits as well as on the effectiveness of non-agricultural GI protection models in light of the proportionality principle.

In accordance with the principles of Better Regulation and to the commitments laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making, the Commission will examine the study as well as the report on the participation of the Union in the Geneva Act as referred to in the Article on monitoring and review of the Regulation on the action of the Union following its accession to the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications and consider any possible next steps.

Commission statement on the procedure set out in Article 9a(3) of the Regulation

The Commission notes that whilst the procedure set out in Article 9a(3) of the Regulation is a legal necessity given the exclusive competence of the Union it can nevertheless state that in the context of the current EU acquis any such intervention of the Commission would be exceptional and duly justified. During consultations with a Member State, the Commission will make every effort in order to resolve together with the Member State any concerns in order to avoid the issuing of a negative opinion. The Commission notes that any negative opinion would be notified in writing to the Member State concerned and pursuant to Article 296 TFEU would state the reasons on which it was based. The Commission would further note that a negative opinion would not preclude the submission of a further application concerning the same appellation of origin, if the reasons for the negative opinion have been duly addressed thereafter or are no longer applicable.

Commission statement concerning the proposal for a Council Decision on the accession of the European Union to the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications

The Commission notes that the Union has exclusive external competence on geographical indications and is acceding to the Geneva Act of the Lisbon Agreement as a Party on its own right. This follows from the ruling of the European Court of Justice of 25/10/2017 (case C-389/15- Commission v. Council). Given the EU’s exclusive external competence, Member States are prevented from becoming Parties to the Geneva Act in their own right and should no longer themselves protect geographical indications newly registered by third country members of the Lisbon system. The Commission, mindful of the exceptional circumstances given that seven Member States have been Parties to the Lisbon Agreement for a long time, that they have extensive intellectual property registered under it and that a smooth transition is needed, would exceptionally have been ready to agree that, in this particular case, Bulgaria, Czechia, Slovakia, France, Hungary, Italy, Portugal could have been authorised to accede to the Geneva Act in the interest of the EU.

The Commission strongly objects to the Council’s continued insistence on the possibility for all EU Member States which wish to do so to be authorized to ratify or accede to the Geneva Act alongside the Union, while giving as a reason the regularisation of the Union’s voting rights in view of point (b)(ii) of Article 22(4) of the Geneva Act rather than the aforesaid exceptional circumstances.

Further, the Commission would like to recall that, given that the Union has exercised its internal competence for agricultural geographical indications, the EU Member States cannot have national agricultural GI protection systems of their own.

Therefore the Commission reserves its rights including the right to avail itself of legal remedies against the Council's decision and, in any event, considers that this case cannot constitute a precedent for any other existing or future international/WIPO agreements, in particular but not only where the EU has already ratified international agreements by itself on the basis of its exclusive competence.

(1) OJ C 110, 22.3.2019, p. 55.


EU-Philippines Agreement on certain aspects of air services ***
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European Parliament legislative resolution of 16 April 2019 on the draft Council decision on the conclusion on behalf of the Union of the Agreement between the European Union and the Government of the Republic of the Philippines on certain aspects of air services (15056/2018 – C8-0051/2019 – 2016/0156(NLE))
P8_TA(2019)0362A8-0191/2019

(Consent)

The European Parliament,

–  having regard to the draft Council decision (15056/2018),

–  having regard to draft agreement between the European Union and the Government of the Republic of the Philippines on certain aspects of air services(1),

–  having regard to the request for consent submitted by the Council in accordance with Article 100(2) and Article 218(6), second subparagraph, point (a) of the Treaty on the Functioning of the European Union (C8‑0051/2019),

–  having regard to Rule 99(1) and (4), and Rule 108(7) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on Transport and Tourism (A8-0191/2019),

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

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

(1) OJ L 322, 18.12.2018, p. 3.


International Agreement on olive oil and table olives ***
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European Parliament legislative resolution of 16 April 2019 on the draft Council decision on the conclusion on behalf of the European Union of the International Agreement on Olive Oil and Table Olives, 2015 (06781/2019 – C8-0134/2019 –2017/0107(NLE))
P8_TA(2019)0363A8-0186/2019

(Consent)

The European Parliament,

–  having regard to the draft Council decision (06781/2019),

–  having regard to the draft International Agreement on Olive Oil and Table Olives, 2015 (11178/2016),

–  having regard to the request for consent submitted by the Council in accordance with Article 207(4) and Article 218(6), second subparagraph, point (a)(v), and Article 218(7) of the Treaty on the Functioning of the European Union (C8-0134/2019),

–  having regard to Rule 99(1) and (4) and Rule 108(7) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on International Trade and the opinion of the Committee on Agriculture and Rural Development (A8-0186/2019),

1.  Gives its consent to conclusion of the Agreement;

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


Nomination of a member of the Court of Auditors – Viorel Ştefan
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European Parliament decision of 16 April 2019 on the nomination of Viorel Ştefan as a Member of the Court of Auditors (C8-0049/2019 – 2019/0802(NLE))
P8_TA(2019)0364A8-0194/2019

(Consultation)

The European Parliament,

–  having regard to Article 286(2) of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C8-0049/2019),

–  having regard to Rule 121 of its Rules of Procedure,

–  having regard to the report of the Committee on Budgetary Control (A8-0194/2019),

A.  whereas, by letter of 14 February 2019, the Council consulted Parliament on the nomination of Viorel Ştefan as a Member of the Court of Auditors;

B.  whereas Parliament’s Committee on Budgetary Control proceeded to evaluate the credentials of the nominee, in particular in view of the requirements laid down in Article 286(1) of the Treaty on the Functioning of the European Union;

C.  whereas at its meeting of 8 April 2019 the Committee on Budgetary Control heard the Council’s nominee for membership of the Court of Auditors;

1.  Delivers an unfavourable opinion on the Council’s nomination of Viorel Ştefan as a Member of the Court of Auditors;

2.  Instructs its President to forward this decision to the Council and, for information, to the Court of Auditors, the other institutions of the European Union and the audit institutions of the Member States.


Nomination of a member of the Court of Auditors – Ivana Maletić
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European Parliament decision of 16 April 2019 on the nomination of Ivana Maletić as a Member of the Court of Auditors (C8-0116/2019 – 2019/0803(NLE))
P8_TA(2019)0365A8-0195/2019

(Consultation)

The European Parliament,

–  having regard to Article 286(2) of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C8-0116/2019),

–  having regard to Rule 121 of its Rules of Procedure,

–  having regard to the report of the Committee on Budgetary Control (A8-0195/2019),

A.  whereas, by letter of 5 March 2019, the Council consulted Parliament on the nomination of Ivana Maletić as a Member of the Court of Auditors;

B.  whereas Parliament’s Committee on Budgetary Control proceeded to evaluate the credentials of the nominee, in particular in view of the requirements laid down in Article 286(1) of the Treaty on the Functioning of the European Union;

C.  whereas at its meeting of 8 April 2019 the Committee on Budgetary Control heard the Council’s nominee for membership of the Court of Auditors;

1.  Delivers a favourable opinion on the Council’s nomination of Ivana Maletić as a Member of the Court of Auditors;

2.  Instructs its President to forward this decision to the Council and, for information, to the Court of Auditors, the other institutions of the European Union and the audit institutions of the Member States.


Protection of persons reporting on breaches of Union law ***I
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Resolution
Text
Annex
European Parliament legislative resolution of 16 April 2019 on the proposal for a directive of the European Parliament and of the Council on the protection of persons reporting on breaches of Union law (COM(2018)0218 – C8-0159/2018 – 2018/0106(COD))
P8_TA(2019)0366A8-0398/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0218),

–  having regard to Article 294(2) and Articles 16, 33, 43, 50, 53(1), 62, 91, 100, 103, 109, 114, 168, 169, 192, 207 and 325(4) of the Treaty on the Functioning of the European Union and Article 31 of the Treaty establishing the European Atomic Energy Community, pursuant to which the Commission submitted the proposal to Parliament (C8‑0159/2018),

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

–  having regard to Article 294(3) and Articles 16, 43(2), 50, 53(1), 91, 100, 114, 168(4), 169, 192(1) and 325(4) of the Treaty on the Functioning of the European Union and Article 31 of the Treaty establishing the European Atomic Energy Community,

–  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 Swedish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to the opinion of the Court of Auditors of 26 September 2018(1),

–  having regard to the opinion of the European Economic and Social Committee of 18 October 2018(2),

–  After consulting the Committee of the Regions,

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 15 March 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Legal Affairs and the opinions of the Committee on Economic and Monetary Affairs, the Committee on Civil Liberties, Justice and Home Affairs, the Committee on Budgetary Control, the Committee on Employment and Social Affairs, the Committee on the Environment, Public Health and Food Safety, the Committee on Culture and Education, and the Committee on Constitutional Affairs (A8-0398/2018),

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

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Directive (EU) 2019/… of the European Parliament and of the Council on the protection of persons who report breaches of Union law

P8_TC1-COD(2018)0106


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive (EU) 2019/1937.)

ANNEX TO THE LEGISLATIVE RESOLUTION

Commission statement on the Directive on the protection of persons reporting on breaches of Union law

At the time of the review to be conducted in accordance with Article 27 of the Directive, the Commission will consider the possibility of proposing to extend its scope of application to certain acts based on Articles 153 TFEU and 157 TFEU, after consulting the social partners, where appropriate, in accordance with Article 154 TFEU.

(1) OJ C 405, 9.11.2018, p. 1.
(2) OJ C 62, 15.2.2019, p. 155.


Cross-border distribution of collective investment undertakings (Directive) ***I
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Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a directive of the European Parliament and of the Council amending Directive 2009/65/EC of the European Parliament and of the Council and Directive 2011/61/EU of the European Parliament and of the Council with regard to cross-border distribution of collective investment funds (COM(2018)0092 – C8-0111/2018 – 2018/0041(COD))
P8_TA(2019)0367A8-0430/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0092),

–  having regard to Article 294(2) and Article 53(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0111/2018),

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

–  having regard to the opinion of the European Economic and Social Committee of 11 July 2018(1),

–  having regard to the provisional agreement approved by the responsible committee under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 27 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0430/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Directive (EU) 2019/… of the European Parliament and of the Council amending Directives 2009/65/EC and 2011/61/EU with regard to cross-border distribution of collective investment undertakings

P8_TC1-COD(2018)0041


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive (EU) 2019/1160.)

(1) OJ C 367, 10.10.2018, p. 50.


Cross-border distribution of collective investment undertakings (Regulation) ***I
PDF 121kWORD 46k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council on facilitating cross-border distribution of collective investment funds and amending Regulations (EU) No 345/2013 and (EU) No 346/2013 (COM(2018)0110 – C8-0110/2018 – 2018/0045(COD))
P8_TA(2019)0368A8-0431/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0110),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0110/2018),

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

–  having regard to the opinion of the European Economic and Social Committee of 11 July 2018(1),

–  having regard to the provisional agreement approved by the responsible committee under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 27 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0431/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council on facilitating cross-border distribution of collective investment undertakings and amending Regulations (EU) No 345/2013, (EU) No 346/2013 and (EU) No 1286/2014

P8_TC1-COD(2018)0045


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/1156.)

(1) OJ C 367, 10.10.2018, p. 50.


Capital Requirements (Regulation) ***I
PDF 130kWORD 60k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements and amending Regulation (EU) No 648/2012 (COM(2016)0850 – C8-0480/2016 – 2016/0360A(COD))
P8_TA(2019)0369A8-0242/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0850),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0480/2016),

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

–  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 Swedish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to the opinion of the European Central Bank of 8 November 2017(1),

–  having regard to the opinion of the European Economic and Social Committee of 30 March 2017(2),

–  having regard to the decision by the Conference of Presidents on 18 May 2017 to authorise the Committee on Economic and Monetary Affairs to split the above-mentioned Commission proposal and to draw up two separate legislative reports on the basis thereof,

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 15 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0242/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements, and Regulation (EU) No 648/2012

P8_TC1-COD(2016)0360A


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/876.)

(1) OJ C 34, 31.1.2018, p. 5.
(2) OJ C 209, 30.06.2017, p. 36.


Capital Requirements (Directive) ***I
PDF 122kWORD 54k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a directive of the European Parliament and of the Council amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures (COM(2016)0854 – C8-0474/2016 – 2016/0364(COD))
P8_TA(2019)0370A8-0243/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0854),

–  having regard to Article 294(2) and Article 53(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0474/2016),

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

–  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 Swedish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to the opinion of the European Central Bank of 8 November 2017(1),

–  having regard to the opinion of the European Economic and Social Committee of 30 March 2017(2)

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 15 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0243/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Directive (EU) 2019/… of the European Parliament and of the Council amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures

P8_TC1-COD(2016)0364


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive (EU) 2019/878.)

(1) OJ C 34, 31.1.2018, p. 5.
(2) OJ C 209, 30.6.2017, p. 36.


Loss-absorbing and recapitalisation capacity of credit institutions and investment firms (Regulation)***I
PDF 122kWORD 51k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 806/2014 as regards loss-absorbing and Recapitalisation Capacity for credit institutions and investment firms (COM(2016)0851 – C8-0478/2016 – 2016/0361(COD))
P8_TA(2019)0371A8-0216/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0851),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0478/2016),

–  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 8 November 2017(1),

–  having regard to the opinion of the European Economic and Social Committee of 30 March 2017(2),

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 15 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0216/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council amending Regulation (EU) No 806/2014 as regards the loss-absorbing and recapitalisation capacity of credit institutions and investment firms

P8_TC1-COD(2016)0361


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/877.)

(1) OJ C 34, 31.1.2018, p. 17.
(2) OJ C 209, 30.6.2017, p. 36.


Loss-absorbing and recapitalisation capacity of credit institutions and investment firms (Directive) ***I
PDF 121kWORD 50k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a directive of the European Parliament and of the Council amending Directive 2014/59/EU on loss-absorbing and recapitalisation capacity of credit institutions and investment firms and amending Directive 98/26/EC, Directive 2002/47/EC, Directive 2012/30/EU, Directive 2011/35/EU, Directive 2005/56/EC, Directive 2004/25/EC and Directive 2007/36/EC (COM(2016)0852 – C8-0481/2016 – 2016/0362(COD))
P8_TA(2019)0372A8-0218/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0852),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0481/2016),

–  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 8 November 2017(1);

–  having regard to the opinion of the European Economic and Social Committee of 30 March 2017(2);

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 15 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0218/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Directive (EU) 2019/… of the European Parliament and of the Council amending Directive 2014/59/EU as regards the loss-absorbing and recapitalisation capacity of credit institutions and investment firms and Directive 98/26/EC

P8_TC1-COD(2016)0362


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive (EU) 2019/879.)

(1) OJ C 34, 31.1.2018, p. 17.
(2) OJ C 209, 30.6.2017, p. 36.


Sovereign bond-backed securities ***I
PDF 223kWORD 69k
Resolution
Consolidated text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities (COM(2018)0339 – C8-0206/2018 – 2018/0171(COD))
P8_TA(2019)0373A8-0180/2019

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0339),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0206/2018),

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

–  after consulting the European Central Bank,

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

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0180/2019),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council on sovereign bond-backed securities

P8_TC1-COD(2018)0171


(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(2),

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

Acting in accordance with the ordinary legislative procedure(4),

Whereas:

(1)  Sovereign Bond-Backed Securities (‘SBBSs’) might be able to address some vulnerabilities that have been exposed by or have resulted from the 2007-2008 financial crisis. More specifically, SBBSs might be able to help banks and other financial institutions better diversify their sovereign exposures, further weaken the bank-sovereign nexus and enhance the supply of low-risk euro denominated assets facilitating the implementation of monetary policy. SBBSs could in addition render bonds issued in small and less liquid national markets more attractive for international investors, which can foster private sector risk sharing and risk reduction and promote a more efficient allocation of risks among financial operators.

(2)  Under the existing legal framework, SBBSs would be treated as securitisations and thus be subject to additional charges and discounts relative to the charges and discounts faced by the euro area sovereign bonds in the underlying portfolio. Those additional charges and discounts would hinder the production and use of SBBSs by the private sector, despite the fact that SBBSs carry lesser risks than those associated with other types of securitisations.▐ However, some risks such as warehouse risks or fraudulent behaviour by SPE staff prevail. SBBS should therefore be subject to a regulatory framework that better takes into account the features and properties of SBBSs to enable that product to emerge on the market.

(2a)  As securitisations, SBBSs are exposed to specific product risks linked to the SPE, that is the legally separate, self-standing entity which was set up for the purpose of issuing SBBs. A first-loss tranche outside the banking system will be key to reducing the bank-sovereign nexus. Therefore, the preferential regulatory treatment accorded to the underlying assets of an SBBS should be extended to holdings by banks on an SBBS senior tranche.

(3)  Enabling a market-led development of SBBSs is part of the Commission's efforts to reduce risks to financial stability and advance towards completion of the Banking Union. SBBSs could support further portfolio diversification in the banking sector, while creating a new source of high‑quality collateral, which is particularly suited for use in cross-border financial transactions as well as for the activities of central banks in the Eurosystem and those of central counterparties. Furthermore, enabling SBBSs could also increase the number of instruments available for cross-border investment and private risk sharing, which feeds into the Commission's efforts to complete the Banking Union and deepen and integrate further Europe's capital markets in the context of the Capital Markets Union.

(4)  SBBSs do not involve any mutualisation of risks and losses among Member States because Member States will not mutually guarantee their respective liabilities within the portfolio of sovereign bonds underlying the SBBSs. Enabling the emergence of SBBSs neither involves any changes to the current regulatory treatment of sovereign exposures.

(5)  To achieve the objectives of geographic risk diversification within the Banking Union and the internal market, the underlying portfolio of SBBSs should be composed of sovereign bonds of Member States whose currency is the euro. To avoid currency risks only euro-denominated sovereign bonds issued by Member States whose currency is the euro should be allowed for inclusion in the SBBSs underlying portfolio. To ensure that sovereign bonds of each euro-area Member State contribute to the production of SBBSs in line with each Member State's stake in the stability of the overall euro area, the relative weight of the national sovereign bonds in the SBBSs’ underlying portfolio should be very close to the relative weight of the respective Member States in the key for subscription by the national central banks of Member States of the European Central Bank's capital.

(6)  To provide for a high quality low-risk asset and at the same time cater for investors' different levels of risk appetite, an SBBS issue should be composed of both a senior tranche and one or more subordinated tranches. The senior tranche, corresponding to seventy percent of the nominal value of an SBBS issue, should keep the SBBS issue expected loss rate in line with that of the safest euro area sovereign bonds, taking into account the risk and correlation of the sovereign bonds in the SBBSs underlying portfolio of sovereign bonds. The subordinated tranches should provide for protection to the senior tranche. ▌To limit the risk to the junior tranche (the tranche bearing losses before any other tranche), the nominal value of the junior tranche should however be at least 5 percent of the outstanding nominal value of the entire SBBSs issue. Considering the particular complexity of the product, acquisition by retail consumers should only be considered for senior tranches and not for junior tranches.

(7)  To ensure the integrity of an SBBS issue and limit as much as possible the risks related to the holding and management of the underlying portfolio of sovereign bonds, maturities of underlying sovereign bonds should be closely aligned with the maturity of the SBBSs and the composition of the underlying portfolio of sovereign bonds should be fixed for the entire lifecycle of the SBBSs.

(8)  The standardised composition of the underlying portfolio of an SBBSs may render difficult or impede the issuance of an SBBS issue when sovereign bonds of one or more Member States are not available on the market. For that reason, it should be possible to exclude sovereign bonds of a particular Member State from future issuances of SBBSs where and as long as the issuance of sovereign bonds by that Member State is significantly limited due to a reduced need for public debt or impaired market access.

(9)  To ensure that SBBSs are sufficiently homogeneous, the exclusion and re-integration of sovereign bonds of a particular Member State from the underlying portfolio of sovereign bonds should be allowed only following a decision of the Commission, ensuring that all SBBSs issued at the same time have the same underlying portfolio of sovereign bonds. SBBSs are new products and, in order to ensure the continuity of their issuance on the market, a timely decision-making mechanism to adjust the underlying portfolio of SBBSs in situations where a Member State no longer enjoys market access is warranted. In addition, commentators and stakeholders have raised concerns about the potential for negative impacts on the liquidity of the markets for the underlying government bonds which deserve to be taken seriously. To that end, this Regulation assigns to the European Supervisory Authority (European Securities and Markets Authority) established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council(5) (ESMA) the duty of monitoring the markets for SBBSs and the underlying government bonds for signs of disruption.

(9a)  On the basis of ESMA’s observations and supported by their reports, the Commission should be empowered to provide a clear definition of “market liquidity” and a method for its calculation, and to determine the criteria by which ESMA should assess whether a Member State no longer enjoys market access for the purposes of this Regulation. The Commission should be empowered to adopt a delegated act in accordance with Article 290 TFEU. The Commission, when preparing and drawing up such delegated act, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.

(10)  The fixed size of the senior tranche of each SBBS issue may be reduced for future SBBSs issuances where, due to adverse market developments that severely disrupt the functioning of sovereign debt markets in a Member State or in the Union, a smaller size is required to ensure continued high credit quality and low risk for the senior tranche. When such adverse market developments end, the size of the senior tranche for future SBBSs issuances should be brought back to its initial value of seventy percent. ▌

(11)  Investors should be protected as much as possible from the risk of insolvency of the institution that acquires the sovereign bonds ('original purchaser') for the purposes of assembling the SBBSs underlying portfolio. For that reason, only special purpose entities (‘SPEs’) that are exclusively devoted to the issuance and management of SBBSs and that do not undertake any other activities, such as providing credit, should be allowed to issue SBBSs. For the same reason, SPEs should be subject to strict asset segregation requirements.

(12)  To manage limited maturity mismatches in the time period between receipt of proceeds of debt service on the underlying portfolio and pay out dates to SBBSs investors, SPEs should be allowed to invest the proceeds from the debt service on the underlying portfolio of sovereign bonds of the SBBSs only in cash and highly liquid financial instruments with low market and credit risk.

(12a)  Member States should ensure that holdings of sovereign bonds by SPEs enjoy the same treatment as any other holdings of the same sovereign bond or of other sovereign bonds issued with the same terms.

(13)  Only products that fulfil the requirements regarding the composition and maturity of the underlying portfolio, the size of the senior and the subordinated tranches as provided for in this Regulation, and whose issue complies with the supervisory regime, should enjoy ▌the regulatory treatment provided for in this Regulation.

(14)  A system of certification by ESMA should ensure that an SBBS issue complies with the requirements of this Regulation. ESMA should therefore keep a list of certified SBBSs ▌, enabling investors to verify whether a product that is offered for sale as an SBBS is indeed an SBBS. For the same reason, ESMA should indicate in that list whether any sanction in relation to a SBBS has been imposed and remove from that list those products that are found to be in violation of this Regulation.

(15)  Investors should be able to rely on the certification of SBBSs by ▌ESMA and on the information provided by SPEs. Information on SBBSs and the sovereign bonds in the SBBSs underlying portfolio should empower investors to understand, assess and compare SBBSs transactions and not to rely solely on third parties, including credit rating agencies. That possibility should enable investors to act prudently and to carry out their due diligence efficiently. Information on SBBSs should therefore be freely available to investors, via standardised templates, on a website that ensures continuous accessibility.

(16)  To prevent abusive behaviour and to ensure that trust in SBBSs is maintained, appropriate administrative sanctions and remedial measures should be provided for by ESMA for cases of negligent or intentional infringements of notification or product requirements for SBBSs.

(17)  Investors in different financial sectors should be able to invest in SBBSs under the same conditions as they invest in the underlying euro area sovereign bonds with the exception of investments in holdings of the subordinated tranches of an SBBS by banks. Directive 2009/65/EC of the European Parliament and of the Council(6), Regulation (EU) No 575/2013 of the European Parliament and of the Council(7), Directive 2009/138/EC of the European Parliament and of the Council(8) and Directive (EU) 2016/2341 of the European Parliament and of the Council(9) should therefore be amended to ensure that SBBS are granted the same regulatory treatment as their underlying assets across the various regulated financial sectors.

(18)  To safeguard financial stability, ensure investors' confidence and promote liquidity, a proper and effective supervision of SBBSs markets is important. To that end, ESMA should be informed about the issuance of SBBSs and should receive from SPEs all the relevant information needed to perform its supervisory tasks. Supervision of compliance with this Regulation should primarily be performed to ensure investors’ protection and, where applicable, on aspects that may be linked to the issuance and holding of SBBSs by regulated financial entities.

(19)  National competent authorities of the entities involved in assembling SBBSs or in the SBBS market and ESMA should closely coordinate their supervision and ensure that their decisions are consistent. ▌

(20)  Given that SBBSs are new products, whose effects on the markets for the underlying sovereign debt securities is unknown it is appropriate that the European Systemic Risk Board (ESRB) and the national competent and designated authorities for macroprudential instruments oversee the SBBSs market. To that end, the ESRB should avail itself of the powers conferred on it under Regulation (EU) No 1092/2010 of the European Parliament and of the Council(10) and, if appropriate, should issue warnings and make suggestions for remedial actions to the competent authorities.

(21)  As a body with highly specialised expertise regarding securities markets, it is appropriate to entrust ESMA with the development of draft regulatory technical standards concerning the types of investment that the SPE may conduct with the proceeds from the payments of principal or interest of the SBBSs’ underlying portfolio, the information to be provided by the SPE for the notification and certification to ESMA of an issuance of SBBSs issues, the information to be provided before transferring an SBBS, the cooperation and information exchange obligations among competent authorities. The Commission should be empowered to adopt those standards in accordance with Article 290 of the Treaty on the Functioning of the European Union (‘TFEU’) and with Articles 10 to 14 of Regulation (EU) No 1095/2010.

(22)  The Commission should also be empowered to adopt implementing technical standards by means of implementing acts pursuant to Article 291 TFEU and in accordance with Article 15 of Regulation (EU) No 1095/2010 with regard to notification requirements of SPEs prior to the issuance of an SBBS issue.

(23)  In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission to decide whether sovereign bonds of a Member State should be removed from or included in the SBBSs’ underlying portfolio and whether the size of the senior tranche of the future SBBSs issues to be issued should be changed. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council(11).

(24)  Since the objective of this Regulation, namely laying down a framework for SBBSs, cannot be sufficiently achieved by the Member States, given that the emergence of a SBBSs market depends on the removal of obstacles resulting from the application of Union legislation and that a level playing field in the internal market for all institutional investors and entities involved in the operation of SBBSs, can only be achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,

HAVE ADOPTED THIS REGULATION:

Chapter 1

Subject matter, scope and definitions

Article 1

Subject matter

This Regulation lays down a general framework for sovereign bond-backed securities (‘SBBSs’).

Article 2

Scope

This Regulation applies to original purchasers, special purpose entities, investors and any other entity involved in the issuance or holding of SBBSs.

Article 3

Definitions

For the purposes of this Regulation, the following definitions shall apply:

(1)  ‘competent authority’ means a public authority or a body officially recognised by national law that is empowered by national or Union law to perform the tasks set out in this Regulation;

(2)  ‘sovereign bond’ means any debt instrument issued by the central government of a Member State that is denominated and funded in the domestic currency of that Member State and has an original maturity of one year or more;

(3)  ‘sovereign bond-backed security’ or ‘SBBS’ means a financial instrument denominated in euro whose credit risk is associated with the exposures to a portfolio of sovereign bonds and that complies with this Regulation;

(4)  ‘special purpose entity’ or ‘SPE’ means a legal person, other than the original purchaser, that issues SBBSs and carries out the activities in relation to the underlying portfolio of sovereign bonds in accordance with Articles 7 and 8 of this Regulation;

(5)  ‘original purchaser’ means a legal person that purchases sovereign bonds on its own account and subsequently transfers those sovereign bonds to an SPE for the purpose of issuing SBBSs;

(6)  ‘investor’ means a natural or legal person that holds an SBBS;

(7)  ‘tranche’ means a contractually established segment of the credit risk associated with the SBBSs' underlying portfolio of sovereign bonds and that bears a risk of greater or smaller credit loss than a position of the same amount in another segment of that credit risk;

(8)  ‘senior tranche’ means the tranche within an SBBSs issue that bears losses after all the subordinated tranches of that SBBS issue have done so;

(9)  ‘subordinated tranche’ means any tranche within an SBBSs issue bearing losses before the senior tranche;

(10)  ‘junior tranche’ means the tranche within an SBBSs issue bearing losses before any other tranche.

Chapter 2

Composition, maturity and structure of SBBSs

Article 4

Composition of the underlying portfolio

1.  The underlying portfolio of an SBBS issue shall only consist of the following:

(a)  sovereign bonds of Member States whose currency is the euro;

(b)  the proceeds from the redemption of those sovereign bonds.

2.  The weight of sovereign bonds of every Member State within an SBBSs' underlying portfolio (‘baseline weight’) shall be equal to the relative weight of the contribution to the European Central Bank (ECB) by that Member State in accordance with the key for subscription, by the national central banks of Members States, of the ECB's paid-in capital as laid down in Article 29 of the Protocol on the Statute of the European System of Central Banks and of the European Central Bank annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union.

SPEs may however deviate from the nominal value of sovereign bonds of each Member State, as given by the application of the baseline weight, by maximum ten percent.

3.  After the first SBBS is certified, ESMA shall, without undue delay, begin to monitor and assess continuously whether any of the following situations exist:

(a)  over the previous twelve months (‘period of reference’), the Member State has issued less than half of the amount of sovereign bonds resulting from its relative weight determined in accordance with paragraph 2, multiplied by the aggregate amount of SBBSs issued in the twelve months prior to the period of reference;

(aa)   the SBBS issuance has had a significant negative impact on the market liquidity of the sovereign bonds of a Member State included in the underlying portfolio;

(b)  over the previous twelve months, the Member State has financed at least half of its annual funding requirements through official financial assistance in support of the implementation of a macroeconomic adjustment programme as specified in Article 7 of Regulation (EU) No 472/2013 of the European Parliament and of the Council(12), or for any reason the Member State no longer enjoys market access.

For the purposes of point (aa) of the first subparagraph, "market liquidity" shall be determined taking into account as minimum criteria, the previous three months evidence of market breadth and depth as proven by low bid-ask spreads, high trading volume and a large and diverse number of market participants.

For the purposes of point (aa) of the first subparagraph, the Commission shall by ... [6 months after the entry into force of this Regulation] adopt a delegated act in accordance with Article 24a to provide a clear definition and calculation method of “market liquidity” for the purposes of this Regulation.

For the purposes of point (b) of the first subparagraph, the Commission shall by ... [6 months after the entry into force of this Regulation] adopt a delegated act in accordance with Article 24a to supplement this Regulation by determining the criteria by which ESMA shall assess whether a Member State no longer enjoys market access.

3a.  ESMA shall on an ongoing basis monitor and assess whether a Member State whose sovereign bonds are included in the underlying portfolio of an SBBS no longer enjoys market access or entered a macroeconomic adjustment program, if the SBBS issuance had a significant negative impact on market liquidity and whether the baseline weights of Member States with limited availability of sovereign bonds impede the issuance of new SBBSs, or if any of these situations has ceased to exist.

Where ESMA, in consultation with the ESRB, finds that a situation referred to in point (a) or (aa) of the first subparagraph of paragraph 3 applies, it may request the Commission to adjust the baseline weights of the bonds of the Member States included in the underlying portfolio.

If ESMA, in consultation with the ESRB, finds that a situation referred to in point (b) of the first subparagraph of paragraph 3 applies, it may request the Commission either to exclude the Member State from the underlying portfolio of an SBBS or to adjust the baseline weights of the bonds of the Member States included in the underlying portfolio.

Where ESMA, in consultation with the ESRB, finds that a situation referred to in points (a) to (b) of the first subparagraph of paragraph 3 has ceased to exist, it may request the Commission to re-instate the Member State bonds in the underlying portfolio of an SBBS and to adjust the baseline weights of the bonds of the Member States included in the underlying portfolio.

The Commission shall, within 48 hours of the request referred to in the second, third and fourth subparagraphs and based on the reasons and evidence provided by ESMA, do one of the following:

(a)  adopt an implementing act that either excludes sovereign bonds of the Member State from the underlying portfolio of the SBBS or adjusts the baseline weights of relevant Member States;

(b)  adopt an implementing act rejecting the requested exclusion or adjustment of the baseline weights of relevant Member States; or

(c)  adopt an implementing act that re-instates the Member State bonds in the underlying portfolio of an SBBS, adjusting the baseline weights of the bonds of Member States included in the underlying portfolio as appropriate.

3b.  Any implementing act adopted pursuant to paragraph 3a of this Article shall be adopted in accordance with the examination procedure referred to in Article 26(2).

Where a Member State is excluded from the underlying portfolio of an SBBS, following an implementation act under paragraph 3a, the baseline weights of sovereign bonds of the remaining Member States shall be determined by excluding the sovereign bonds of the Member State referred to in paragraph 3a and applying the calculation method set out in paragraph 2. Where an implementing act under paragraph 3a applies and the baseline weights are adjusted, the baseline weights shall be applied in accordance with the implementing act.

The exclusion or adjustment shall be valid for an initial period of one month. The Commission may, after consulting ESMA, extend the exclusion or adjustment of the baseline weights referred to in this Article for additional periods of one month by way of an implementing act. Where the exclusion or adjustment is not renewed by the end of the initial period or by the end of any subsequent renewal period, it shall automatically expire.

3c.   The ECB shall be informed in timely fashion of any decision taken pursuant to paragraphs 3a and 3b.

Article 5

Maturity of the underlying assets

1.  SBBSs tranches that are part of the same issue shall have a single original maturity date. That maturity date shall be equal to or up to one day longer than the remaining maturity of the sovereign bond with the longest remaining maturity within the underlying portfolio.

2.  The remaining maturity of any sovereign bond in an SBBSs' underlying portfolio shall not be shorter by more than six months than the remaining maturity of the sovereign bond with the longest remaining maturity in that portfolio.

Article 6

Structure of the tranches, payment and losses

1.  An SBBSs issue shall be composed of one senior tranche and one or more subordinated tranches. The outstanding nominal value of the senior tranche shall be seventy percent of the outstanding nominal value of the entire SBBSs issue. The number and the outstanding nominal values of the subordinated tranches shall be determined by the SPE, subject to the limitation that the nominal value of the junior tranche shall be at least five percent of the outstanding nominal value of the entire SBBSs issue.

2.  Where adverse developments severely disrupt the functioning of sovereign debt markets in a Member State or in the Union, and where that disruption has been confirmed by the Commission in accordance with paragraph 4, SPEs shall lower the outstanding nominal value of the senior tranche to sixty percent for any SBBSs issue issued after that confirmation.

Where the Commission, in accordance with paragraph 4, has confirmed that that disruption has ceased to exist, paragraph 1 will apply to all SBBSs issues issued after that confirmation.

3.  ESMA shall monitor and assess whether the situation referred to in paragraph 2 exists or has ceased to exist and inform the Commission thereof.

4.  The Commission may adopt an implementing act establishing that the disruption referred to in paragraph 2 exists or has ceased to exist. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 26(2).

5.  Payments under an SBBS shall be dependent upon the payments of the underlying portfolio of sovereign bonds.

6.  The distribution of losses and the order of payments shall be determined by the tranche of the SBBSs issue and shall be fixed for the entire life cycle of the SBBSs issue.

Losses shall be recognised and assigned as they materialise.

Article 7

Issuance of SBBSs and obligations of SPEs

1.  SPEs shall comply with all of the following requirements:

(a)  they are established in the Union;

(b)  their activities are limited to issuing and servicing SBBSs issues and managing the underlying portfolio of those SBBSs issues in accordance with Articles 4, 5, 6 and 8;

(c)  SPEs are solely responsible for the provision of services and activities referred to in point (b).

2.  SPEs shall have full ownership of the underlying portfolio of an SBBSs issue.

The underlying portfolio of an SBBSs issue shall constitute a security financial collateral arrangement as defined in Article 2(c) of Directive 2002/47/EC of the European Parliament and of the Council(13) securing the financial obligations of the SPE towards investors in that SBBSs issue.

Holding an SBBS of a specific SBBS issue shall not provide for any rights or claims on the assets of that SPE issuing the SBBSs issue that go beyond the underlying portfolio of that isse and the income generated from holding that SBBS.

Any reduction in the value or proceeds of the underlying portfolio of sovereign bonds shall not give rise to a liability claim from investors.

3.  An SPE shall keep records and accounts so that it:

(a)  segregates its own assets and financial resources from those of the underlying portfolio of the SBBSs issue and the related proceeds;

(b)  segregates the underlying portfolios and proceeds of different SBBSs issues;

(c)  segregates the positions held by different investors or intermediaries;

(d)  verifies that at any point in time the number of SBBSs of one issue is equal to the sum of the SBBSs held by all investors or intermediaries in that issue;

(e)  verifies that the outstanding nominal value of the SBBSs of one issue is equal to the outstanding nominal value of the underlying portfolio of sovereign bonds of that issue.

4.  SPEs shall hold the sovereign bonds referred to in Article 4(1)(a) in custody, as permitted under point (1) of Section B of Annex I to Directive 2014/65/EU of the European Parliament and of the Council(14) and point (2) of Section A of the Annex to Regulation (EU) No 909/2014 of the European Parliament and of the Council(15) only at central banks, central securities depositories, authorised credit institutions or authorised investment firms.

4a.   Member States shall ensure that holdings of sovereign bonds by SPEs enjoy the same treatment as any other holdings of the same sovereign bond or of other sovereign bonds issued with the same terms.

Article 8

Investment policy

1.  An SPE shall invest payments of principal or interest from the sovereign bonds referred to in Article 4(1)(a) that are due prior to payments of principal or interest under the SBBS only in cash or euro-denominated cash equivalents that are eligible for liquidation within one day with minimal adverse price effect.

An SPE shall hold in custody, as permitted under point (1) of Section B of Annex I to Directive 2014/65/EU and point (2) of Section A of the Annex to Regulation (EU) No 909/2014, the payments referred to in the first subparagraph only at central banks, central securities depositories, authorised credit institutions or authorised investment firms.

2.  An SPE shall not change the underlying portfolio of an SBBS until the maturity of that SBBS.

3.  ESMA shall develop draft regulatory technical standards further specifying the financial instruments that can be considered to be highly liquid with minimal market and credit risk as referred to in paragraph 1. ESMA shall submit those draft regulatory technical standards to the Commission by [6 months from the date of entry into force of this Regulation].

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

Chapter 3

Use of the designation SBBS and notification, transparency and information requirements

Article 9

Use of the designation 'Sovereign Bond-Backed Securities'

The designation ‘Sovereign Bond-Backed Security’ or ‘SBBS’ shall only be used for financial products that comply with all of the following conditions:

(a)  the financial product complies on an ongoing basis with Articles 4, 5 and 6;

(aa)  the SPE complies on an ongoing basis with Articles 7 and 8;

(b)  ESMA has certified that financial product in accordance with Article 10(1) and the financial product has been included in the list referred to in Article 10(2).

Article 10

SBBS notification requirements

1.  An SPE shall submit an application for certification of an SBBS issue by notifying ESMA at least one week before issuance of an SBBSs issue by means of the template referred to in paragraph 5 of this Article that an SBBSs issue meets the requirements of Articles 4, 5 and 6. ESMA shall inform the SPE's competent authority thereof without undue delay.

1a.  The notification provided for in paragraph 1 of this Article shall include an explanation by the SPE of how it has complied with each of the requirements set out in Articles 4, 5, 6, 7 and 8.

1b.  ESMA shall certify an SBBS issue only where it is fully satisfied that the applicant SPE and the SBBS issue comply with all the requirements laid down in this Regulation. ESMA shall inform the applicant SPE without undue delay whether certification has been granted or refused.

2.  ESMA shall maintain on its official website a list of all SBBSs issues that have been certified by ESMA. ESMA shall update that list instantly and remove any SBBSs issue that is no longer considered to be an SBBSs issue following a decision by ESMA in accordance with Article 15.

3.  ▌ESMA shall immediately indicate on the list referred to in paragraph 2 of this Article whenever it has imposed administrative sanctions referred to in Article 16 for which there is no longer a right of appeal, in relation to the SBBS concerned.

3a.  ESMA shall withdraw the certification for an SBBS issue where any of the following conditions is met:

(a)  the SPE has expressly renounced the certification or has not made use of it within six months after the certification has been granted;

(b)  the SPE has obtained the certification by making false statements or by any other irregular means;

(c)  the SBBS issue no longer meets the conditions under which it was certified.

The withdrawal of the certification shall have immediate effect throughout the Union.

4.  ESMA shall develop draft regulatory technical standards specifying the information referred to in paragraph 1.

ESMA shall submit those draft regulatory technical standards to the Commission by ... [6 months from the date of entry into force of this Regulation].

Power is conferred on the Commission to adopt the regulatory technical standards referred to in this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

5.  ESMA shall develop draft implementing technical standards to establish the templates to be used for the provision of the information referred to in paragraph 1.

ESMA shall submit those draft implementing technical standards to the Commission by ... [6 months from the date of entry into force of this Regulation].

Power is conferred on the Commission to adopt the implementing technical standards referred to in this paragraph in accordance with Article 15 of Regulation (EU) No 1095/2010.

Article 11

Transparency requirements

1.  An SPE shall, without undue delay, provide investors and ESMA with the following information:

(a)  information on the underlying portfolio that is essential for assessing whether the financial product complies with Articles 4, 5 and 6;

(b)  a detailed description of the priority of payments of the tranches of the SBBSs issue;

(c)  where no prospectus has been drawn up in the cases set out in Articles 1(4), 1(5) or 3(2) of Regulation (EU) No 2017/1129 of the European Parliament and of the Council(16), an overview of the main features of the SBBS, including, where applicable, details regarding the exposure characteristics, the cash flows and loss waterfall;

(d)  the notification and certification referred to in Article 10(1) and in Article 10(1b) respectively.

The information referred to in point (a) of this paragraph shall be made available at the latest one month after the due date for the payment of interest of the SBBS.

2.  An SPE shall make the information referred to in paragraph 1 available on a website that:

(a)  has a well-functioning data quality control system;

(b)  is subject to appropriate governance standards and is maintained and operated in accordance with an organisational structure that ensures the continuity and orderly functioning of the website;

(c)  is subject to systems, controls and procedures that identify all relevant sources of operational risk;

(d)  includes systems that ensure the protection and integrity of the information received and the prompt recording of that information;

(e)  makes it possible to keep records of the information for at least five years after the maturity date of every SBBSs issue.

Information referred to in paragraph 1 and the location where the information is made available shall be indicated by the SPE in the documentation regarding the SBBSs provided to investors.

Article 12

Information requirements

1.  Before transferring an SBBS, the transferor shall provide to the transferee all the following information:

(a)  the procedure to allocate proceeds from the underlying portfolio of sovereign bonds to the different tranches of the SBBSs issue, including following or in anticipation of a non-payment on the underlying assets;

(b)  how voting rights on an exchange offer following or in anticipation of a non‑payment on any sovereign bonds in the underlying portfolio shall be assigned to investors and how any losses from a debt non-payment shall be allocated across the different tranches of the SBBSs issue.

2.  ESMA shall develop draft regulatory technical standards to specify the information referred to in paragraph 1.

ESMA shall submit those draft regulatory technical standards to the Commission by [6 months from the date of entry into force of this Regulation].

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

Chapter 4

Product oversight

Article 13

Supervision by ESMA

1.  ESMA shall be the competent authority to supervise the compliance of SPEs with ▌the requirements laid down in this Regulation.

2.  ESMA shall ▌have the supervisory, investigatory and sanctioning powers to fulfil its duties under this Regulation.

ESMA shall have the power to, at least:

(a)  request access to any documents in any form to the extent that they relate to SBBSs, and to receive or take a copy thereof;

(b)  require the SPE to provide information without delay;

(c)  require information from any person related to the activities of the SPE;

(d)  carry out on-site inspections with or without prior announcement;

(e)  take appropriate measures to ensure that an SPE continues to comply with this Regulation;

(f)  issue an order to ensure that an SPE complies with this Regulation and desists from a repetition of any conduct that breaches this Regulation.

Article 14

Cooperation between competent authorities and ESMA

1.  Competent authorities responsible for the supervision of entities assembling SBBSs or otherwise engaged in the SBBS market and ESMA shall cooperate closely and exchange information to carry out their duties. In particular, they shall closely coordinate their supervision to identify and remedy infringements of this Regulation, develop and promote best practices, facilitate collaboration, foster consistency of interpretation and provide cross-jurisdictional assessments in the event of any disagreements.

To facilitate the use of powers of competent authorities and ensure the consistent application and enforcement of the obligations set out in this Regulation, ESMA shall act within the powers set out in Regulation (EU) No 1095/2010.

2.  A competent authority that has clear and demonstrable grounds that an SPE is in breach of this Regulation shall promptly inform ESMA in a detailed manner. ESMA shall take appropriate measures, including the decision referred to in Article 15.

3.  Where the SPE persists in acting in a manner that is clearly in breach of this Regulation despite measures taken by ▌ESMA, ESMA may take all appropriate measures to protect investors, including prohibiting the SPE from carrying out any further marketing of SBBSs within its territory and taking the decision referred to in Article 15.

Article 15

Misuse of the SBBS designation

1.  Where there are reasons to believe that an SPE in infringement of Article 9 has used the designation ‘SBBS’ to market a product that fails to comply with the requirements set out in that Article, ESMA shall follow the procedure provided for in paragraph 2.

2.  Within 15 days after becoming aware of the possible infringement referred to in paragraph 1 ESMA shall decide whether Article 9 has been infringed and shall notify other relevant competent authorities thereof, including the competent authorities of the investors, when known. ▌

Where ESMA finds that the infringement by the SPE is related to non-compliance with Article 9 in good faith, it may decide to grant the SPE a period of maximum one month to remedy the identified infringement, starting from the day the SPE was informed of the infringement by ESMA. During that period, an SBBS appearing on the list maintained by ESMA pursuant to Article 10(2) shall continue to be considered an SBBS and shall be kept on that list.

3.  ESMA shall develop draft regulatory technical standards to specify the cooperation obligations and the information to be exchanged under paragraph 1 and 2.

ESMA shall submit those draft regulatory technical standards to the Commission by ... [6 months from the date of entry into force of this Regulation].

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

Article 16

Remedial measures and administrative sanctions

1.  Without prejudice to the right for Member States to lay down criminal sanctions pursuant to Article 17, ESMA shall impose on the SPE or the natural person managing the SPE the appropriate remedial measures, including the decision referred to in Article 15, and the appropriate administrative sanctions set out in paragraph 3 where SPEs:

(a)  have failed to comply with the obligations set out in Articles 7 and 8;

(b)  have failed to meet the requirements of Article 9, including where they have not notified ESMA in accordance with Article 10(1), or have made a misleading notification;

(c)  have failed to meet the transparency requirements of Article 11.

2.  The administrative sanctions referred to in paragraph 1 shall be at least the following:

(a)  a public statement indicating the identity of the natural or legal person having committed the infringement and the nature of the infringement;

(b)  an order requiring the natural or legal person that committed the infringement to cease the conduct and to desist from a repetition of that conduct;

(c)  a temporary ban preventing any member of the SPE's management body or any other natural person held responsible for the infringement from exercising management functions in SPEs;

(d)  in case of an infringement as referred to in point (b) of paragraph 1, a temporary ban on the SPE from making a notification as referred to in Article 10(1);

(e)  an administrative pecuniary sanctions of maximum EUR 5 000 000, or in Member States the currency of which is not the euro, the corresponding value in the national currency on ... [the date of entry into force of this Regulation], or of maximum 10 % of the total annual net turnover of the SPE, as established in the most recent available accounts approved by the management body of the SPE;

(f)  an administrative pecuniary sanctions of maximum twice the amount of the benefit derived from the infringement where that benefit can be determined, even where that benefit exceeds the maximum amounts referred to in point (e).

3.  ESMA, when determining the type and level of administrative sanctions, shall take into account the extent to which the infringement was intentional or results from negligence and all other relevant circumstances, including, where appropriate:

(a)  the materiality, gravity and the duration of the infringement;

(b)  the degree of responsibility of the natural or legal person responsible for the infringement;

(c)  the financial strength of the responsible natural or legal person;

(d)  the importance of profits gained or losses avoided by the responsible natural or legal person, insofar as those profits or losses can be determined;

(e)  the losses for third parties caused by the infringement;

(f)  the level of cooperation of the responsible natural or legal person with the competent authority;

(g)  previous infringements by the responsible natural or legal person.

4.  ESMA shall ensure that any decision imposing the remedial measures or administrative sanctions is properly reasoned and is subject to a right of appeal.

Article 17

Interaction with criminal sanctions

Member States that have laid down criminal sanctions for the infringement referred to in Article 16(1) shall allow ESMA to liaise with judicial, prosecuting, or criminal justice authorities within their jurisdiction and to receive from, and to provide to, relevant authorities specific information about criminal investigations or proceedings commenced for the infringements referred to in Article 16(1).

Article 18

Publication of administrative sanctions

1.  ESMA shall publish on its website any decision imposing an administrative sanction in respect of which there is no longer a right of appeal and which is imposed for an infringement as referred to in Article 16(1) without undue delay and after the person concerned has been informed.

The publication referred to in subparagraph 1 shall include information on the type and nature of the infringement, the identity of the natural or legal person on whom the administrative sanction has been imposed.

2.  ESMA shall publish the administrative sanction on an anonymous basis, ▌in any of the following circumstances:

(a)  where the administrative sanction is imposed on a natural person and, following an prior assessment, publication of personal data is found to be disproportionate;

(b)  where publication would jeopardise the stability of financial markets or an ongoing criminal investigation;

(c)  where publication would cause disproportionate damage to the SPE or natural persons involved.

Alternatively, where the circumstances referred to in the first subparagraph are likely to cease within a reasonable period of time, publication under paragraph 1 may be postponed for such a period of time.

3.  ESMA shall ensure that information published under paragraph 1 or 2 remains on its official website for five years. Personal data shall be retained on the official website of ESMA only for the period necessary.

Article 18a

Supervisory fees

1.  ESMA shall charge the SPE fees in accordance with this Regulation and in accordance with the delegated acts adopted pursuant to paragraph 2 of this Article. Those fees shall be in proportion to the turnover of the SPE concerned and shall fully cover ESMA’s necessary expenditure relating to the licensing of SBBSs and supervision of SPEs.

2.  The Commission is empowered to adopt a delegated act in accordance with Article 24a to supplement this Regulation by further specifying the type of fees, the matters for which fees are due, the amount of the fees and the manner in which they are to be paid.

Article 19

Macroprudential oversight of the SBBSs market

Within the limits of its mandate laid down in Regulation (EU) No 1092/2010, the ESRB shall be responsible for the macroprudential oversight of the Union’s SBBSs market and act in accordance with the powers set out in that Regulation. If it finds that SBBS markets are posing a severe risk to the orderly functioning of the markets for the sovereign debt securities of those Member States whose currency is the Euro, the ESRB shall avail itself of the powers under Articles 16, 17 and 18 of Regulation (EU) No 1092/2010, as appropriate.

Chapter 4

Implementing powers and final provisions

Article 21

Amendment to Directive 2009/65/EC

In Directive 2009/65/EC the following Article 54a is inserted:"

“Article 54a

1.  Where Member States apply a derogation as referred to in Article 54 or grant a waiver as referred to in Article 56(3), the competent authorities of the UCITS home Member State shall:

   (a) apply the same derogation or grant the same waiver for UCITS to invest up to 100% of their assets in SBBSs as defined in Article 3(3) of Regulation [reference of the SBBS Regulation to be inserted] in accordance with the principle of risk-spreading where those competent authorities consider that unit-holders in the UCITS have a protection that is equivalent to that of unit-holders in UCITS complying with the limits laid down in Article 52;
   (b) shall waive the application of paragraphs 1 and 2 of Article 56.

2.  By ... [6 months from date of entry into force of SBBS Regulation], Member States shall adopt, publish and communicate to the Commission and ESMA measures necessary to comply with paragraph 1.”.

"

Article 22

Amendment to Directive 2009/138/EC

In Article 104 of Directive 2009/138/EC, the following paragraph 8 is added:"

"8. For the purposes of the calculation of the Basic Solvency Capital Requirement, exposures to sovereign bond-backed securities as defined in Article 3(3) of Regulation [reference of the SBBS Regulation to be inserted] shall be treated as exposures to Member States' central governments or central banks denominated and funded in their domestic currency.

By ... [6 months from date of entry into force of SBBS Regulation], Member States shall adopt, publish and communicate to the Commission and ESMA measures necessary to comply with the first subparagraph.”.

"

Article 23

Amendments to Regulation (EU) No 575/2013

Regulation (EU) No 575/2013 is amended as follows:

(1)  in Article 268 , the following paragraph 5 is added:"

"5. By way of derogation from the first paragraph, the senior tranche of sovereign bond-backed securities as defined in Article 3(8) of Regulation [reference of the SBBS Regulation to be inserted] may always be treated in accordance with the first paragraph of this Article.";

"

(2)  in Article 325, the following paragraph 4 is added:"

"4. For the purpose of this Title, institutions shall treat exposures in the form of the senior tranche of sovereign bond-backed securities as defined in Article 3(8) of Regulation [reference of the SBBS Regulation to be inserted] as exposures to the central government of a Member State.";

"

(3)  in Article 390(7), the following subparagraph is added:"

“The first subparagraph shall apply to exposures to sovereign bond-backed securities as defined in Article 3(3) of Regulation [reference of the SBBS Regulation to be inserted].”.

"

Article 24

Amendment to Directive (EU) 2016/2341

In Directive (EU) 2016/2341, the following Article 18a is inserted:"

“Article 18a

Sovereign-Bond Backed Securities

1.  In their national rules regarding the valuation of assets of IORPs, the calculation of own funds of IORPs, and the calculation of a solvency margin for IORPs, Member States shall treat sovereign-bond backed securities, as defined in Article 3(3) of Regulation [reference of the SBBS Regulation to be inserted], in the same way as euro area sovereign debt instruments.

2.  By ... [6 months from date of entry into force of the SBBS Regulation], Member States shall adopt, publish and communicate to the Commission and ESMA measures necessary to comply with paragraph 1.”.

"

Article 24a

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 the third and fourth subparagraphs of Article 4(3) and in Article 18a(2) shall be conferred on the Commission for a period of five years from ... [date of entry into force of this Regulation]. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-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.

3.  The delegation of power referred to in the third and fourth subparagraphs of Article 4(3) and in Article 18a(2) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.  Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

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

6.  A delegated act adopted pursuant to the third or fourth subparagraph of Article 4(3) or to Article 18a(2) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of three 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.

Article 25

Evaluation clause

No sooner than five years after the date of entry into force of this Regulation and once sufficient data have become available, the Commission shall carry out an evaluation of this Regulation assessing whether it has achieved its objectives to eliminate undue regulatory hindrances to the emergence of SBBSs.

Article 26

Committee procedure

1.  The Commission shall be assisted by the European Securities Committee established by Commission Decision 2001/528/EC(17). That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

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

Article 27

Entry into force

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

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

Done at …,

For the European Parliament For the Council

The President The President

(1) OJ C 62, 15.2.2019, p. 113.
(2) OJ C , , p. .
(3) OJ C 62, 15.2.2019, p. 113.
(4) Position of the European Parliament of 16 April 2019.
(5) Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).
(6) Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investments in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32).
(7) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (CRR) (OJ L 176, 27.6.2013, p. 1).
(8) Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1).
(9) Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) (OJ L 354, 23.12.2016, p. 37).
(10) Regulation (EU) No 1092/2010 of the European Parliament and of the Council of 24 November 2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board (OJ L 331, 15.12.2010, p. 1).
(11) 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) Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability (OJ L 140, 27.5.2013, p. 1).
(13) Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements (OJ L 168, 27.6.2002, p. 43).
(14) Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).
(15) Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p. 1).
(16) Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (OJ L 168, 30.6.2017, p. 12).
(17) Commission Decision 2001/528/EC of 6 June 2001 establishing the European Securities Committee (OJ L 191, 13.7.2001, p. 45).


European Supervisory Authorities and financial markets ***I
PDF 125kWORD 57k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European Banking Authority); Regulation (EU) No 1094/2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority); Regulation (EU) No 1095/2010 establishing a European Supervisory Authority (European Securities and Markets Authority); Regulation (EU) No 345/2013 on European venture capital funds; Regulation (EU) No 346/2013 on European social entrepreneurship funds; Regulation (EU) No 600/2014 on markets in financial instruments; Regulation (EU) 2015/760 on European long-term investment funds; Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds; Regulation (EU) 2017/1129 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market; and Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money-laundering or terrorist financing (COM(2018)0646 – C8-0409/2018 – 2017/0230(COD))
P8_TA(2019)0374A8-0013/2019

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0646),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0409/2018),

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

–  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 Swedish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to the opinion of the European Central Bank of 11 April 2018(1) and of 7 December 2018(2),

–  having regard to the opinion of the European Economic and Social Committee of 15 February 2018(3) and of 12 December 2018(4),

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 1 April 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on Budgets (A8-0013/2019),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council amending Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European Banking Authority); Regulation (EU) No 1094/2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority); Regulation (EU) No 1095/2010 establishing a European Supervisory Authority (European Securities and Markets Authority); Regulation (EU) No 600/2014 on markets in financial instruments; Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds; and Regulation (EU) 2015/847 on information accompanying transfers of funds

P8_TC1-COD(2017)0230


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/2175.)

(1) OJ C 255, 20.7.2018, p. 2.
(2) OJ C 37, 30.1.2019, p. 1.
(3) OJ C 227, 28.6.2018, p. 63.
(4) OJ C 110, 22.3.2019, p. 58.


European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board ***I
PDF 123kWORD 46k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1092/2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board (COM(2017)0538 – C8-0317/2017 – 2017/0232(COD))
P8_TA(2019)0375A8-0011/2019

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2017)0538),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0317/2017),

–  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 2 March 2018(1),

–  having regard to the opinion of the European Economic and Social Committee of 15 February 2018(2),

–  having regard to the provisional agreement approved by the responsible committee under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 1 April 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs and the opinions of the Committee on Legal Affairs and the Committee on Constitutional Affairs (A8-0011/2019),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council amending Regulation (EU) No 1092/2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board

P8_TC1-COD(2017)0232


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/2176.)

(1) OJ C 120, 6.4.2018, p. 2.
(2) OJ C 227, 28.6.2018, p. 63.


Markets in financial instruments and taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) ***I
PDF 122kWORD 47k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a directive of the European Parliament and of the Council amending Directive 2014/65/EU on markets in financial instruments and Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (COM(2017)0537 – C8-0318/2017 – 2017/0231(COD))
P8_TA(2019)0376A8-0012/2019

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2017)0537),

–  having regard to Article 294(2) and Articles 53(1) and 62 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0318/2017),

–  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 11 May 2018,(1)

–  having regard to the opinion of the European Economic and Social Committee of 15 February 2018,(2)

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 1 April 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0012/2019),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Directive (EU) 2019/… of the European Parliament and of the Council amending Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), Directive 2014/65/EU on markets in financial instruments and Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money-laundering or terrorist financing

P8_TC1-COD(2017)0231


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive (EU) 2019/2177.)

(1) OJ C 251, 18.7.2018, p. 2.
(2) OJ C 227, 28.6.2018, p. 63.


Prudential supervision of investment firms (Directive) ***I
PDF 121kWORD 58k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a directive of the European Parliament and of the Council on the prudential supervision of investment firms and amending Directives 2013/36/EU and 2014/65/EU (COM(2017)0791 – C8-0452/2017 – 2017/0358(COD))
P8_TA(2019)0377A8-0295/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2017)0791),

–  having regard to Article 294(2) and Article 53(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0452/2017),

–  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 August 2018(1),

–  having regard to the opinion of the European Economic and Social Committee of 19 April 2018(2),

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 20 March 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on Legal Affairs (A8-0295/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Directive (EU) 2019/… of the European Parliament and of the Council on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU

P8_TC1-COD(2017)0358


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive (EU) 2019/2034.)

(1) OJ C 378, 19.10.2018, p. 5.
(2) OJ C 262, 25.7.2018, p. 35.


Prudential requirements of investment firms (Regulation) ***I
PDF 121kWORD 56k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council on the prudential requirements of investment firms and amending Regulations (EU) No 575/2013, (EU) No 600/2014 and (EU) No 1093/2010 (COM(2017)0790 – C8-0453/2017 – 2017/0359(COD))
P8_TA(2019)0378A8-0296/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2017)0790),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0453/2017),

–  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 August 2018(1),

–  having regard to the opinion of the European Economic and Social Committee of 19 April 2018(2),

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 20 March 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0296/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014

P8_TC1-COD(2017)0359


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/2033.)

(1) OJ C 378, 19.10.2018, p. 5.
(2) OJ C 262, 25.7.2018, p. 35.


Transparent and predictable working conditions in the European Union ***I
PDF 126kWORD 44k
Resolution
Text
Annex
European Parliament legislative resolution of 16 April 2019 on the proposal for a directive of the European Parliament and of the Council on transparent and predictable working conditions in the European Union (COM(2017)0797 – C8-0006/2018 – 2017/0355(COD))
P8_TA(2019)0379A8-0355/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2017)0797),

–  having regard to Article 294(2) and Article 153(1)(b) and (2)(b) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0006/2018),

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

–  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 Swedish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to the opinion of the European Economic and Social Committee of 23 May 2018(1),

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

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

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

–  having regard to the report of the Committee on Employment and Social Affairs and also the opinions of the Committee on Legal Affairs and the Committee on Women's Rights and Gender Equality (A8-0355/2018),

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

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Directive (EU) 2019/… of the European Parliament and of the Council on transparent and predictable working conditions in the European Union

P8_TC1-COD(2017)0355


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive (EU) 2019/1152.)

ANNEX TO THE LEGISLATIVE RESOLUTION

Commission statement

In accordance with Article 23 of the Directive, the Commission will review the application of this Directive by entry into force plus 8 years, with a view to propose, where appropriate, the necessary amendments. The Commission undertakes in its report to pay particular attention to the application of Articles 1 and 14 by the Member States. The Commission will also verify compliance with Article 14 when assessing whether Member States have fully and correctly transposed the Directive into their national legal systems.

(1) OJ C 283, 10.8.2018, p. 39.
(2) OJ C 387, 25.10.2018, p. 53.


European Labour Authority ***I
PDF 129kWORD 54k
Resolution
Text
Annex
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council establishing a European Labour Authority (COM(2018)0131 – C8-0118/2018 – 2018/0064(COD))
P8_TA(2019)0380A8-0391/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0131),

–  having regard to Article 294(2), and Article 46, Article 48, Article 53(1), Article 62 and Article 91(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0118/2018),

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

–  having regard to Article 294(3) and Articles 46 and 48 of the Treaty on the Functioning of the European Union,

–  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 Swedish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to the opinion of the European Economic and Social Committee of 20 September 2018(1),

–  having regard to the opinion of the Committee of the Regions of 9 October 2018(2),

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 21 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Employment and Social Affairs and the opinions of the Committee on Budgets, the Committee on Transport and Tourism, the Committee on Legal Affairs, the Committee on Civil Liberties, Justice and Home Affairs and the Committee on Women’s Rights and Gender Equality (A8-0391/2018),

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

2.  Approves the joint statement by Parliament, the Council and the Commission annexed to this resolution, which will be published in the L series of the Official Journal of the European Union, in the issue following that in which the final legislative act is published;

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council establishing a European Labour Authority, amending Regulations (EC) No 883/2004, (EU) No 492/2011, and (EU) 2016/589 and repealing Decision (EU) 2016/344

P8_TC1-COD(2018)0064


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/1149.)

ANNEX TO THE LEGISLATIVE RESOLUTION

Joint statement of the European Parliament, the Council and the Commission

The European Parliament, the Council and the Commission note that the process for selecting the location of the seat of the European Labour Authority (ELA) was not concluded at the time of the adoption of its founding Regulation.

Recalling the commitment to sincere and transparent cooperation and recalling the Treaties, the three Institutions acknowledge the value of exchange of information from the initial stages of the process for the selection of the seat of the ELA.

Such early exchange of information would make it easier for the three Institutions to exercise their rights according to the Treaties through the related procedures.

The European Parliament and the Council take note of the Commission's intention to take any appropriate steps in order for the founding Regulation to provide for a provision on the location of the seat of the ELA, and to ensure that the ELA operates autonomously in line with that Regulation.

(1)OJ C 440, 6.12.2018, p. 128.
(2)OJ C 461, 21.12.2018, p. 16.


Conservation of fishery resources and protection of marine ecosystems through technical measures ***I
PDF 123kWORD 57k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council on the conservation of fishery resources and the protection of marine ecosystems through technical measures, amending Council Regulations (EC) No 1967/2006, (EC) No 1098/2007, (EC) No 1224/2009 and Regulations (EU) No 1343/2011 and (EU) No 1380/2013 of the European Parliament and of the Council, and repealing Council Regulations (EC) No 894/97, (EC) No 850/98, (EC) No 2549/2000, (EC) No 254/2002, (EC) No 812/2004 and (EC) No 2187/2005 (COM(2016)0134 – C8-0117/2016 – 2016/0074(COD))
P8_TA(2019)0381A8-0381/2017

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0134),

–  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 (C8-0117/2016),

–  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 13 July 2016(1),

–  having regard to the opinion of the Committee of the Regions of 7 December 2016(2),

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 22 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Fisheries and the opinion of the Committee on the Environment, Public Health and Food Safety (A8-0381/2017).

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council on the conservation of fisheries resources and the protection of marine ecosystems through technical measures, amending Council Regulations (EC) No 1967/2006, (EC) No 1224/2009 and Regulations (EU) No 1380/2013, (EU) 2016/1139, (EU) 2018/973, (EU) 2019/472 and (EU) 2019/1022 of the European Parliament and of the Council, and repealing Council Regulations (EC) No 894/97, (EC) No 850/98, (EC) No 2549/2000, (EC) No 254/2002, (EC) No 812/2004 and (EC) No 2187/2005

P8_TC1-COD(2016)0074


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/1241.)

(1) OJ C 389, 21.10.2016, p. 67.
(2) OJ C 185, 9.6.2017, p. 82.
(3) This position replaces the amendments adopted on 16 January 2018 (Texts adopted, P8_TA(2018)0003).


Regulation on European business statistics ***I
PDF 120kWORD 59k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council on European business statistics, amending Regulation (EC) No 184/2005 and repealing 10 legal acts in the field of business statistics (COM(2017)0114 – C8-0099/2017 – 2017/0048(COD))
P8_TA(2019)0382A8-0094/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2017)0114),

–  having regard to Article 294(2) and Article 338(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0099/2017),

–  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 2 January 2018(1),

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 20 March 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Industry, Research and Energy (A8-0094/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council on European business statistics, repealing 10 legal acts in the field of business statistics

P8_TC1-COD(2017)0048


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/2152.)

(1) OJ C 77, 1.3.2018, p. 2.


OLAF investigations and cooperation with the European Public Prosecutor's Office ***I
PDF 323kWORD 96k
Resolution
Consolidated text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU, Euratom) No 883/2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) as regards cooperation with the European Public Prosecutor's Office and the effectiveness of OLAF investigations (COM(2018)0338 – C8-0214/2018 – 2018/0170(COD))
P8_TA(2019)0383A8-0179/2019

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0338),

–  having regard to Article 294(2) and Article 325 of the Treaty on the Functioning of the European Union, in conjunction with the Treaty establishing the European Atomic Energy Community, and in particular Article 106a thereof, pursuant to which the Commission submitted the proposal to Parliament (C8‑0214/2018),

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

–  having regard to the Opinion 8/2018 of the Court of Auditors(1),

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

–  having regard to the report of the Committee on Budgetary Control and the opinions of the Committee on Legal Affairs and the Committee on Civil Liberties, Justice and Home Affairs (A8-0179/2019),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) .../… of the European Parliament and of the Council amending Regulation (EU, Euratom) No 883/2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) as regards cooperation with the European Public Prosecutor's Office and the effectiveness of OLAF investigations

P8_TC1-COD(2018)0170


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 325 thereof, in conjunction with the Treaty establishing the European Atomic Energy Community, and in particular Article 106a 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 Court of Auditors(2),

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

Whereas:

(1)  With the adoption of Directive (EU) 2017/1371 of the European Parliament and of the Council(4) and Council Regulation (EU) 2017/1939(5), the Union has substantially strengthened the harmonised legal framework provisions regarding means available to protect the financial interests of the Union by means of criminal law. The European Public Prosecutor's Office ("EPPO") will have is a key priority in the field of criminal justice and anti-fraud policy, having the power to carry out criminal investigations and bring indictments related to criminal offences affecting the Union budget, as defined in Directive (EU) 2017/1371, in the participating Member States. [Am. 1]

(2)  To protect the financial interests of the Union, the European Anti-Fraud Office ("the Office") conducts administrative investigations into administrative irregularities as well as into criminal behaviour. At the end of its investigations, it may make judicial recommendations to the national prosecution authorities, aimed at enabling indictments and prosecutions in the Member States. In future, in the Member States participating in the EPPO, it will report suspected criminal offences to the EPPO, and will collaborate with it in the context of its investigations. [Am. 2]

(3)  Therefore, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council(6) should be amended and correspondingly adapted following the adoption of Regulation (EU) 2017/1939. The provisions governing the relationship between the EPPO and the Office in Regulation (EU) 2017/1939 should be reflected and complemented by the rules in Regulation (EU, Euratom) No 883/2013 to ensure the highest level of protection of the financial interests of the Union through synergies between the two bodies, which means implementing the principles of close cooperation, information exchange, complementarity and avoidance of duplication. [Am. 3]

(4)  In view of their common goal to preserve the integrity of the Union budget, the Office and the EPPO should establish and maintain a close relationship based on sincere cooperation and aimed at ensuring the complementarity of their respective mandates and coordination of their action, in particular as regards the scope of the enhanced cooperation for the establishment on the EPPO. Ultimately, the relationship should contribute to ensuring that all means are used to protect the financial interests of the Union and avoiding unnecessary duplication of efforts.

(5)  Regulation (EU) 2017/1939 requires the Office, as well as all institutions, bodies, offices and agencies of the Union and competent national authorities, to report to the EPPO without undue delay suspected criminal conduct in respect of which the EPPO may exercise its competence. Since the mandate of the Office is to carry out administrative investigations into fraud, corruption and any other illegal activity affecting the financial interest of the Union, it is ideally placed and equipped to act as a natural partner and privileged source of information for the EPPO. [Am. 4]

(6)  Elements pointing to possible criminal conduct falling within the competence of the EPPO may, in practice, be present in initial allegations received by the Office or may emerge only in the course of an administrative investigation opened by the Office on the grounds of suspicion of administrative irregularity. In order to comply with its duty to report to the EPPO, the Office should therefore, as the case may be, report criminal conduct at any stage before or during an investigation.

(7)  Regulation (EU) 2017/1939 specifies the minimum elements that, as a rule, reports should contain. The Office may need to conduct a preliminary evaluation of allegations to ascertain these elements and collect the necessary information. The Office should conduct this evaluation expeditiously and through means which do not risk jeopardising a possible future criminal investigation. Upon completion of its evaluation, it should report to the EPPO where a suspicion of an offence within its competence is identified.

(8)  In consideration of the Office's expertise, the institutions, bodies, offices and agencies of the Union should have the choice to make use of the Office to conduct such preliminary evaluation of allegations reported to them.

(9)  In conformity with Regulation (EU) 2017/1939, the Office should in principle not open an administrative investigation parallel to an investigation conducted by the EPPO into the same facts. However, in certain cases, the protection of the Union’s financial interests may require that the Office carry out a complementary administrative investigation before the conclusion of criminal proceedings initiated by the EPPO with the purpose of ascertaining whether precautionary measures are necessary, or financial, disciplinary or administrative action should be taken. These complementary investigations may be appropriate, inter alia, when necessary to recover amounts due to the Union budget subject to specific time-barring rules, when the amounts at risk are very high, or where there is the need to avoid further expenditure in risk situations through administrative measures.

(10)  Regulation (EU) 2017/1939 provides that the EPPO may request such complementary investigations to the Office. In cases where the EPPO does not request it, such a complementary investigation should also be possible on the initiative of the Office, under certain specific conditions, after consultation with the EPPO. In particular, the EPPO should be able to object to the opening or continuation of an investigation by the Office, or to the performance of specific acts of investigation by it. The reasons for this objection should be based on the need to protect the effectiveness of the EPPO's investigation and should be proportionate to this aim. The Office should refrain from performing the action on which the EPPO raised an objection. If the EPPO does not object agrees to the request, the Office investigation should be conducted in close consultation with the EPPO. [Am. 6]

(11)  The Office should actively support the EPPO in its investigations. In this regard, the EPPO may request the Office to support or complement its criminal investigations through the exercise of powers under this Regulation. In these cases the Office should perform these operations within the limits of its powers and within the framework provided for in this Regulation.

(12)  To ensure effective coordination, cooperation and transparency between the Office and the EPPO, information should be exchanged between them on a continuous basis. The exchange of information in the stages prior to the opening of investigations by the Office and the EPPO is particularly relevant to ensure proper coordination between the respective actions to guarantee complementarity and avoid duplication. For this purpose, the Office and the EPPO should make use of the hit/no hit functions of their respective case management systems. The Office and the EPPO should specify the modalities and conditions of this exchange of information in their working arrangements. [Am. 7]

(13)  The Commission Report on Evaluation of the application of Regulation (EU, Euratom) No 883/2013(7), adopted on 2 October 2017, concluded that the 2013 changes to the legal framework brought clear improvements, as regards the conduct of investigations, cooperation with partners and the rights of persons concerned. At the same time, the evaluation has highlighted some shortcomings which impact on the effectiveness and efficiency of investigations.

(14)  It is necessary to address the most unambiguous findings of the Commission evaluation through the amendment of Regulation (EU, Euratom) No 883/2013. These are essential changes necessary in the short term to strengthen the framework for the Office's investigations, in order to maintain a strong and fully-functioning Office that complements the EPPO's criminal law approach with administrative investigations, but which do not entail a change to the mandate or powers. They primarily concern areas where, today, the lack of clarity of the Regulation hinders the effective conduct of investigations by the Office, such as the conduct of on-the spot checks, the possibility of access to bank account information, or the admissibility as evidence of the case reports drawn up by the Office. The Commission should submit a new, comprehensive proposal no later than two years after the evaluation of both the EPPO and the Office, and of their cooperation. [Am. 8]

(15)  These changes do not affect the procedural guarantees applicable in the framework of investigations. The Office is bound to apply the procedural guarantees of Regulation (EU, Euratom) No 883/2013, Council Regulation (Euratom, EC) No 2185/96(8) and those contained in the Charter of Fundamental Rights of the Union. This framework requires that the Office conducts its investigations objectively, impartially and confidentially, seeking evidence for and against the person concerned, and carries out investigative acts on the basis of a written authorisation and following a legality check. The Office must ensure the respect of the rights of persons concerned by its investigations, including the presumption of innocence and the right to avoid self-incrimination. When interviewed, persons concerned have inter alia the rights to be assisted by a person of choice, to approve the record of the interview, and to use any of the official languages of the Union. Persons concerned also have the right to comment on the facts of the case before conclusions are drawn.

(16)  The Office conducts on-the-spot checks and inspections, which allow it to access premises and documentation of economic operators in the framework of its investigations into suspected fraud, corruption or other illegal conduct affecting the financial interests of the Union. These are carried out in accordance with this Regulation and with Regulation (Euratom, EC) No 2185/96, which in some instances make the application of these powers subject to conditions of national law. The Commission evaluation has found that the extent to which national law should apply is not always specified, and as a result hinders the effectiveness of the Office's investigative activities.

(17)  It is therefore appropriate to clarify the instances in which national law should apply in the course of investigations by the Office, without however changing the powers available to the Office or changing the way the Regulation operates in relation to the Member States. This clarification reflects the recent ruling of the General Court in case T-48/16, Sigma Orionis SA v European Commission.

(18)  The conduct by the Office of on-the-spot checks and inspections, in situations where the economic operator concerned submits to the check, should be subject to Union law alone. This should allow it to exercise its investigative powers in an effective and coherent manner in all Member States, with a view to contributing to a high level of protection of the Union's financial interests across the Union, as required by Article 325 of the Treaty on the Functioning of the European Union (TFEU).

(19)  In situations where the Office needs to rely on the assistance of the national competent authorities, particularly in cases where an economic operator opposes an on-the-spot check and inspection, Member States should ensure that the Office's action is effective, and should provide the necessary assistance in accordance with the relevant rules of national procedural law.

(20)  A duty for economic operators to cooperate with the Office should be introduced in Regulation (EU, Euratom) No 883/2013. This is in line with their obligation under Regulation (Euratom, EC) No 2185/96 to grant access for the carrying out of on-the-spot checks and inspections to premises, land, means of transport or other areas, used for business purposes, and with the obligation in Article 129(9) of the Financial Regulation that any person or entity receiving Union funds shall fully cooperate in the protection of the financial interests of the Union, including in the context of investigations by the Office.

(21)  As part of this duty of cooperation, the Office should be able to require economic operators who may have been involved in the matter under investigation, or who might hold relevant information, to supply relevant information. When complying with such requests, economic operators are not obliged to admit that they have committed an illegal activity, but they are obliged to answer factual questions and to provide documents, even if this information may be used to establish against them or against another operator the existence of an illegal activity.

(22)  Economic operators should have the possibility to use any of the official languages of the Member State where the check takes place, and the right to be assisted by a person of their choice, including by external legal counsel, during on-the-spot checks and inspections. The presence of a legal counsel should not, however, represent a legal condition for the validity of on-the-spot checks and inspections. To ensure the effectiveness of the on-the-spot checks and inspections, in particular as regards the risk of evidence disappearing, the Office should be able to access to the premises, land, means of transportation or other areas used for business purposes without waiting for the operator to consult its legal counsel. It should only accept a short reasonable delay pending consultation of the legal counsel before starting the conduct of the check. Any such delay must be kept to the strict minimum.

(23)  To ensure transparency, when carrying out on-the-spot checks and inspections the Office should provide economic operators with appropriate information on their duty to cooperate and the consequences of a refusal to do so, and the procedure applicable to the check, including the applicable procedural safeguards.

(24)  In internal investigations and, where necessary, in external investigations the Office has access to any relevant information held by the institutions, bodies, offices and agencies. It is necessary, as suggested by the Commission evaluation, to clarify that this access should be possible irrespective of the type of medium on which this information or data is stored, in order to reflect evolving technological progress. [Am. 9]

(25)  For a more coherent framework for the investigations of the Office, the rules applicable to internal and external investigations should be further aligned, in order to address certain inconsistencies identified by the Commission evaluation, where divergent rules are not justified. This should be the case, for instance, to provide that reports and recommendations drawn up following an external investigation may be sent to the institution, body, office or agency concerned for it to take appropriate action, as is the case in internal investigations. Where possible in acordance with its mandate, the Office should support the institution, body, office or agency concerned in the follow-up to its recommendations. To further ensure cooperation between the Office and institutions, bodies, offices and agencies, the Office should inform, where necessary, the Union institution, body, office or agency concerned when it decides not to open an external investigation, for instance when a Union institution, body, office or agency was the source of the initial information.

(26)  The Office should dispose of the necessary means to follow the money trail in order to uncover the modus operandi typical of many fraudulent conducts. Today, it is able to obtain banking information relevant for its investigative activity held by credit institutions in a number of Member States, through cooperation with and assistance by the national authorities. To ensure an effective approach throughout the Union, the Regulation should specify the duty of competent national authorities to provide information on bank and payments accounts to the Office, as part of their general duty to assist it. This cooperation should, as a rule, take place through the Financial Intelligence Units in the Member States. When giving this assistance to the Office, the national authorities should act in compliance with the relevant provisions of procedural law provided for in the national legislation of the Member State concerned.

(26a)   In order to pay attention to the protection and respect of procedural rights and guarantees, the Office should create an internal function in the form of the controller of procedural guarantees, and provide him or her with adequate resources. The controller of procedural guarantees should have access to all information necessary to fulfil his or her duties. [Am. 10]

(26b)   This Regulation shall establish a complaints mechanism for the Office in cooperation with the Controller of procedural guarantees, to safeguard the respect for procedural rights and guarantees in all the activities of the Office. This should be an administrative mechanism whereby the Controller should be responsible for handling complaints received by the Office in accordance with the right to good administration. The mechanism should be effective, ensuring that complaints are properly followed up. In order to increase transparency and accountability, the Office should report on the complaints mechanism in its annual report. It should cover in particular the number of complaints it has received, the types of procedural rights and guarantees violations involved, the activities concerned and, where possible, the follow-up measures taken by the Office. [Am. 11]

(27)  The early transmission of information by the Office for the purpose of adopting precautionary measures is an essential tool for the protection of the Union's financial interests. In order to ensure close cooperation in this regard between the Office and the institutions, offices, bodies and agencies of the Union, it is appropriate that the latter have the possibility to consult at any time the Office with a view to deciding on any appropriate precautionary measures, including measures for the safeguarding of evidence.

(28)  Reports drawn up by the Office constitute today admissible evidence in administrative or judicial proceedings in the same way and under the same conditions as administrative reports drawn up by national administrative inspectors. The Commission evaluation found that in some Member States this rule does not sufficiently ensure the effectiveness of the Office’s activities. To increase the effectiveness and the consistent use of reports of the Office, the Regulation should provide for the admissibility of such reports in judicial proceedings of a non-criminal nature before national courts, as well as in administrative proceedings in the Member States. The rule providing for equivalence with the reports of national administrative inspectors should continue to apply in the case of national judicial proceedings of a criminal nature. The Regulation should also provide for the admissibility of the reports drawn up by the Office in administrative and judicial proceedings at Union level.

(29)  The mandate of the Office includes the protection of revenues to the Union budget arising from VAT own resources. In this field, the Office should be able to support and complement the activities of the Member States through investigations conducted in accordance with its mandate, the coordination of national competent authorities in complex, transnational cases, and the support and assistance to Member States and to the EPPO. To this end, the Office should be able to exchange information through the Eurofisc network established by Council Regulation (EU) No 904/2010(10), bearing in mind the provisions of Regulation (EU) 2018/1725 of the European Parliament and of the Council(11) in order to promote and facilitate cooperation in the fight against VAT fraud. [Am. 12]

(30)  The anti-fraud coordination services of the Member States were introduced by Regulation (EU, Euratom) No 883/2013 to facilitate an effective cooperation and exchange of information, including information of an operational nature, between the office and the Member States. The evaluation concluded they have positively contributed to the work of the Office. It also identified the need to further clarify their role in order to ensure that the Office is provided with the necessary assistance to ensure that its investigations are effective, while leaving the organisation and powers of the anti-fraud coordination services to each Member State. In this regard, the anti‑fraud coordination services should be able to provide, obtain or coordinate the necessary assistance to the Office to carry out its tasks effectively, before, during or at the end of an external or internal investigation.

(31)  The duty of the Office to provide the Member States with assistance in order to coordinate their action for the protection of the financial interests of the Union is a key element of its mandate to support cross-border cooperation among the Member States. More detailed rules should be laid down in order to facilitate the coordinating activities of the Office and its cooperation in this context with Member States' authorities, third countries and international organisations. These rules should be without prejudice to the exercise by the Office of powers conferred on the Commission in specific provisions governing mutual assistance between Member States' administrative authorities and cooperation between those authorities and the Commission, in particular to Council Regulation (EC) No 515/97(12).

(32)  Furthermore, it should be possible for the Office to request the assistance of the anti‑fraud coordination services in the context of coordination activities, as well as for the anti-fraud coordination services to cooperate among themselves, in order to further reinforce the available mechanisms for cooperation in the fight against fraud.

(32a)   The competent authorities of the Member States shall give the necessary assistance to the Office to fulfil their tasks. When the Office makes judicial recommendations to the national prosecution authorities of a Member State and no follow-up is made, the Member State should justify its decision to the Office. Once a year, the Office should draw up a report in order to give an account of the assistance provided by the Member States and on the follow-up of the judicial recommendations. [Am. 13]

(32b)   In order to supplement the procedural rules on the conduct of investigations set out in this Regulation, the Office should lay down the procedural code for investigations to be followed by the staff of the Office. Therefore, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission concerning the establishment of such a procedural code, without prejudice to the Office's independence in the exercise of its competences. Those delegated acts should cover, in particular, the practices to be observed in implementing the mandate and statute of the Office; detailed rules governing investigation procedures as well as the investigation acts permitted; the legitimate rights of the persons concerned; procedural guarantees; provisions relating to data protection and policies on communication and access to documents; provisions on the legality check and the means of redress open to the persons concerned; relations with the EPPO. It is of particular importance that the Office carry out appropriate consultations during its preparatory work, including at expert level. The Commission should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council. [Am. 14]

(32c)   No later than five years after the date determined in accordance with the second subparagraph of Article 120(2) of Regulation (EU) 2017/1939, the Commission should evaluate the application of this Regulation and in particular the efficiency of the cooperation between the Office and the EPPO. [Am. 15]

(33)  Since the objective of this Regulation to strengthen the protection of the financial interests of the Union by adapting the operation of the Office to the establishment of the EPPO and by enhancing the effectiveness of the investigations by the Office cannot be sufficiently achieved by the Member States, but can rather be better achieved at Union level through the adoption of rules governing the relationship between two Union offices and increasing the effectiveness in the conduct of investigations by the Office across the Union, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to step up the fight against fraud, corruption and any other illegal activity affecting the financial interests of the Union.

(34)  This Regulation does not modify the powers and responsibilities of the Member States to take measures to combat fraud, corruption and any other illegal activity affecting the financial interests of the Union.

(35)  The European Data Protection Supervisor was consulted in accordance with Article 28(2) of Regulation (EC) No 45/2001 of the European Parliament and of the Council(13) and delivered an opinion on …(14).

(36)  Regulation (EU, Euratom) No 883/2013 should therefore be amended accordingly,

HAVE ADOPTED THIS REGULATION:

Article 1

Regulation (EU, Euratom) No 883/2013 is amended as follows:

(-1)  in Article 1, the introductory part of paragraph 1 is replaced by the following:"

“1. In order to step up the fight against fraud, corruption and any other illegal activity or irregularity affecting the financial interests of the European Union and of the European Atomic Energy Community (hereinafter referred to collectively, when the context so requires, as ‘the Union’), the European Anti-Fraud Office established by Decision 1999/352/EC, ECSC, Euratom (‘the Office’) shall exercise the powers of investigation conferred on the Commission by:” [Am. 16]

"

(-1a)  in Article 1, paragraph 2 is replaced by the following:"

“2. The Office shall provide the Member States with assistance from the Commission in organising close and regular cooperation between their competent authorities in order to coordinate their action aimed at protecting the financial interests of the Union against fraud. The Office shall contribute to the design and development of methods of preventing and combating fraud, corruption and any other illegal activity or irregularity affecting the financial interests of the Union. The Office shall promote and coordinate, with and among the Member States, the sharing of operational experience and best procedural practices in the field of the protection of the financial interests of the Union, and shall support joint anti-fraud actions undertaken by Member States on a voluntary basis.” [Am. 17]

"

(-1b)  in Article 1, point d of paragraph 3 is replaced by the following:"

"(d) Regulation (EU) 2018/1725;" [Am. 18]

"

(-1c)  in Article 1, point da is added to paragraph 3: "

“(da) Regulation (EU) 2016/679.” [Am. 19]

"

(-1d)  in Article 1, paragraph 4 is replaced by the following:"

“4. Within the institutions, bodies, offices and agencies established by, or on the basis of, the Treaties (‘institutions, bodies, offices and agencies’), and without prejudice to Article 12d, the Office shall conduct administrative investigations for the purpose of fighting fraud, corruption and any other illegal activity or irregularity affecting the financial interests of the Union. To that end, it shall investigate serious matters relating to the discharge of professional duties constituting a dereliction of the obligations of officials and other servants of the Union liable to result in disciplinary or, as the case may be, criminal proceedings, or an equivalent failure to discharge obligations on the part of members of institutions and bodies, heads of offices and agencies or staff members of institutions, bodies, offices or agencies not subject to the Staff Regulations (hereinafter collectively referred to as ‘officials, other servants, members of institutions or bodies, heads of offices or agencies, or staff members’).” [Am. 20]

"

(1)  in Article 1, the following paragraph is inserted:"

"4a. The Office shall establish and maintain a close relationship with the European Public Prosecutor's Office (‘the EPPO’) established in enhanced cooperation by Council Regulation (EU) 2017/1939(15). This relationship shall be based on mutual cooperation, complementarity, avoidance of duplication and on information exchange. It shall aim in particular to ensure that all available means are used to protect the Union’s financial interests through the complementarity of their respective mandates and the support provided by the Office to the EPPO. [Am. 21]

Cooperation between the Office and the EPPO shall be governed by Articles 12c to 12f".

"

(1a)  in Article 1, paragraph 5 is replaced by the following:"

“5. For the application of this Regulation, competent authorities of the Member States and institutions, bodies, offices or agencies may establish administrative arrangements with the Office. Those administrative arrangements may concern, in particular, the transmission of information, the conduct and the follow-up of investigations.” [Am. 22]

"

(1b)   in Article 2, point (2) is replaced by the following:"

"(2) ‘irregularity’ shall mean ‘irregularity’ as defined in Article 1(2) of Regulation (EC, Euratom) No 2988/95, including infringements affecting revenue from value-added tax;" [Am. 23]

"

(1c)  in Article 2, point (3) is replaced by the following:"

“(3) ‘fraud, corruption and any other illegal activity or irregularity affecting the financial interests of the Union’ shall have the meaning applied to those words in the relevant Union acts;” [Am. 24]

"

(2)  in Article 2, point (4) is replaced by the following:"

"(4) administrative investigations’ (‘investigations’) shall mean any inspection, check or other measure undertaken by the Office in accordance with Articles 3 and 4, with a view to achieving the objectives set out in Article 1 and to establishing, where necessary, the irregular nature of the activities under investigation; those investigations shall not affect the powers of the EPPO or of the competent authorities of the Member States to initiate criminal proceedings.";

"

(2a)  in Article 2, point (5) is replaced by the following:"

“(5) ‘person concerned’ shall mean any person or economic operator suspected of having committed fraud, corruption or any other illegal activity or irregularity affecting the financial interests of the Union and who is therefore subject to investigation by the Office;” [Am. 25]

"

(2b)  in Article 2, the following point is inserted:"

“(7a) ‘member of an institution’ means a member of the European Parliament, a member of the European Council, a representative of a Member State at ministerial level in the Council, a member of the European Commission, a member of the Court of Justice of the European Union, a member of the Governing Council of the European Central Bank or a member of the Court of Auditors, as appropriate.” [Am. 26]

"

(2c)  in Article 2, the following point is inserted:"

“(7b) ‘the same facts’ means that material facts are identical, with material facts being understood in the sense of the existence of a set of concrete circumstances which are inextricably linked together and which in their totality may establish elements of a delict investigation which is in competence of the Office or the EPPO.” [Am. 27]

"

(3)  Article 3 is replaced by the following:"

"Article 3

External investigations On-the-spot checks and inspections in the Member States and third countries [Am. 28]

1.  Within the scope defined in Article 1 and points (1) and (3) of Article 2, the Office shall carry out on-the-spot checks and inspections in the Member States and, in accordance with the cooperation and mutual assistance agreements and any other legal instrument in force, in third countries and on the premises of international organisations. [Am. 29]

2.  On-the-spot checks and inspections shall be conducted in accordance with this Regulation and, to the extent that a matter is not covered by this Regulation, with Regulation (Euratom, EC) No 2185/96.

3.  Economic operators shall cooperate with the Office in the course of its investigations. The Office may request oral information, including through interviews, and written information from economic operators in accordance with point (b) of Article 4(2). [Am. 30]

4.  The Office shall conduct on-the-spot checks and inspections upon production of a written authorisation, as provided for in Article 7(2) of this Regulation and Article 6(1) of Regulation (Euratom, EC) No 2185/1996. It shall inform the economic operator concerned of the procedure applicable to the check, including the applicable procedural safeguards, and the duty to cooperate of the economic operator concerned.

5.  In the exercise of these powers, the Office shall comply with the procedural guarantees provided for in this Regulation and in Regulation (Euratom, EC) No 2185/96. In the conduct of an on-the-spot check and inspection, the economic operator concerned shall have the right not to make self-incriminating statements and to be assisted by a person of choice. When making statements during the on the spot checks, the economic operator shall be provided with the possibility to use any of the official languages of the Member State where he is located. The right to be assisted by a person of choice shall not prevent access by the Office to the premises of the economic operator, and shall not unduly delay the start of the check.

6.  At the request of the Office, the competent authority of the Member State concerned shall, without undue delay, provide the staff of the Office with the assistance needed in order to carry out their tasks effectively, as specified in the written authorisation referred to in Article 7(2). [Am. 31]

The Member State concerned shall ensure, in accordance with Regulation (Euratom, EC) No 2185/96, that the staff of the Office are allowed access to all information, and documents and data relating to the matter under investigation which prove necessary in order for the on-the-spot checks and inspection to be carried out effectively and efficiently, and that they are able to assume custody of documents or data to ensure that there is no danger of their disappearance. Where privately owned devices are used for work purposes, those devices shall be subject to investigations by the Office only if the Office has good grounds to suspect that their content may be relevant for the investigation. [Am. 32]

7.  Where the economic operator concerned submits to an on-the-spot check and inspection authorised pursuant to this Regulation, Article 2(4) of Regulation (Euratom, EC) No 2988/95 and the third subparagraph of Article 6(1) and Article 7(1) of Regulation (Euratom, EC) No 2185/96 shall not apply, insofar as those provisions require compliance with national law and may restrict access to information and documentation by the Office to the conditions applying to national administrative inspectors.

Where the staff of the Office finds that an economic operator resists an on-the-spot check or inspection authorised pursuant to this Regulation, the Member State concerned shall afford them the necessary assistance of law enforcement authorities so as to enable the Office to conduct its on-the-spot check or inspection effectively and without undue delay.

When providing assistance in accordance with this paragraph or with paragraph 6, the competent national authorities shall act in conformity with national procedural rules applicable to the competent national authority concerned. If that assistance requires authorisation from a judicial authority in accordance with national law, such authorisation shall be applied for.

7a.  Where it is demonstrated that a Member State does not comply with its duty to cooperate pursuant to paragraphs 6 and 7, the Union shall have the right to recover the amount related to the on-the-spot-check or inspection in question. [Am. 33]

8.  As part of its investigative function, the Office shall carry out the checks and inspections provided for in Article 9(1) of Regulation (EC, Euratom) No 2988/95 and in the sectoral rules referred to in Article 9(2) of that Regulation in the Member States and, in accordance with the cooperation and mutual assistance agreements and any other legal instrument in force, in third countries and on the premises of international organisations.

9.  During an external investigation, the Office may have access to any relevant information and data, irrespective of the medium on which it is stored, held by the institutions, bodies, offices and agencies, connected with the matter under investigation, where necessary in order to establish whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. For that purpose Article 4(2) and (4) shall apply. [Am. 34]

10.  Without prejudice to Article 12c(1), where, before a decision has been taken whether or not to open an external investigation, the Office handles information which suggests that there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union, it may inform the competent authorities of the Member States concerned and, where necessary, the institutions, bodies, offices and agencies concerned.

Without prejudice to the sectoral rules referred to in Article 9(2) of Regulation (EC, Euratom) No 2988/95, the competent authorities of the Member States concerned shall ensure that appropriate action is taken, in which the Office may take part, in compliance with national law. Upon request, the competent authorities of the Member States concerned shall inform the Office of the action taken and of their findings on the basis of information as referred to in the first subparagraph of this paragraph."; [Am. 35]

"

(4)  Article 4 is amended as follows:

(-a)  in Article 4, the title is replaced by the following:"

“Further provisions on investigations” [Am. 36]

"

(-aa)  in Article 4, paragraph 1 is replaced by the following:"

“1. Administrative investigations within the institutions, bodies, offices and agencies in the areas referred to in Article 1 shall be conducted in accordance with the conditions set out in this Regulation and in the decisions adopted by the respective institution, body, office or agency.” [Am. 37]

"

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

"2. In the course of internal investigations: [Am. 38]

   (a) the Office shall have the right of immediate and unannounced access, where necessary in order to establish whether there has been fraud, corruption or any other illegal activity or irregularity affecting the financial interests of the Union, to any relevant information and data relating to the matter under investigation, irrespective of the type of medium on which it is stored, held by the institutions, bodies, offices and agencies, and to their premises. Where privately owned devices are used for work purposes, those devices shall be subject to investigations by the Office only if the Office has good grounds to suspect that their content may be relevant for the investigation. The Office shall be empowered to inspect the accounts of the institutions, bodies, offices and agencies. The Office may take a copy of, and obtain extracts from, any document or the contents of any data medium held by the institutions, bodies, offices and agencies and, if necessary, assume custody of such documents or data to ensure that there is no danger of their disappearance; [Am. 39]
   (b) the Office may request oral information, including through interviews, and written information from economic operators, officials, other servants, members of institutions or bodies, heads of offices or agencies, or staff members, thoroughly documented according to regular confidentiality and Union data protection standards. Economic operators shall cooperate with the Office. [Am. 40]

"

(b)  paragraph 3 is replaced by the following: deleted;"

"3. In accordance with Article 3, the Office may carry out on-the-spot checks and inspections at the premises of economic operators in order to obtain access to information relevant to the matter under internal investigation."; [Am. 41]

"

(ba)  in Article 4, paragraph 4 is replaced by the following:"

“4 The institutions, bodies, offices and agencies shall be informed whenever the staff of the Office conduct an investigation on their premises or consult a document or data, or request information held by them. Without prejudice to Articles 10 and 11, the Office may at any time forward to the institution, body, office or agency concerned the information obtained in the course of investigations.” [Am. 42]

"

(bb)  in Article 4, paragraph 5 is replaced by the following:"

“5. The institutions, bodies, offices and agencies shall put in place appropriate procedures and take necessary measures to ensure at all stages the confidentiality of investigations.” [Am. 43]

"

(bc)  in Article 4, paragraph 6, the first subparagraph is replaced by the following:"

“Where investigations reveal that an official, other servant, member of an institution or body, head of office or agency, or staff member may be a person concerned, the institution, body, office or agency to which that person belongs shall be informed.” [Am. 44]

"

(bd)  in Article 4, paragraph 6, the second subparagraph is replaced by the following:"

“In cases where the confidentiality of the investigation cannot be ensured using the usual channels of communication, the Office shall use appropriate alternative channels for transmitting information.” [Am. 45]

"

(be)  in Article 4, paragraph 7 is replaced by the following:"

“7. The decision to be adopted by each institution, body, office or agency as provided for in paragraph 1 shall include, in particular, a rule concerning a duty on the part of officials, other servants, members of institutions or bodies, heads of offices or agencies, or staff members to cooperate with and supply information to the Office, while ensuring the confidentiality of the investigation.” [Am. 46]

"

(c)  in paragraph 8, the first subparagraph is replaced by the following:"

"Without prejudice to Article 12c(1), where, before a decision has been taken whether or not to open an internal investigation, the Office handles information which suggests that there has been fraud, corruption or any other illegal activity or irregularity affecting the financial interests of the Union, it may inform, as appropriate, the competent authorities of the Member States concerned and the institution, body, office or agency institutions, bodies, offices or agencies concerned.

Upon request, the institution, body, office or agency concerned shall inform the Office of any action taken and of its findings on the basis of such information."; [Am. 47]

"

(ca)  in paragraph 8, the second subparagraph is replaced by the following:"

“As regards investigations within the institutions, bodies, offices and agencies, where the Office informs the competent authorities of the Member States concerned, the procedural requirements laid down in the second and third subparagraphs of Article 9(4) shall apply. If the competent authorities decide to take any action on the basis of the information transmitted to them, in accordance with national law, they shall, upon request, inform the Office thereof.” [Am. 48]

"

(cb)  in paragraph 8, the following subparagraph is added:"

“As regards on-the-spot checks and inspections pursuant to Article 3, without prejudice to the sectoral rules referred to in Article 9(2) of Regulation (EC, Euratom) No 2988/95, the competent authorities of the Member States concerned shall ensure that appropriate action is taken, in which the Office may take part, in compliance with national law. Upon request, the competent authorities of the Member States concerned shall inform the Office of the action taken and of their findings on the basis of information as referred to in the first subparagraph of this paragraph.” [Am. 49]

"

(5)  Article 5 is amended as follows:

(a)  in paragraph 1, the first sentence is replaced by the following:"

"Without prejudice to Article 12d, the Director-General may open an investigation when there is a sufficient suspicion, which may also be based on information provided by any third party or anonymous information, that there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union."; [Am. 50]

"

(aa)   paragraph 1 is replaced by the following:"

"1. Without prejudice to Article 12d, the Director-General may open an investigation when there is a sufficient suspicion, which may also be based on information provided by any third party or anonymous information, that there has been fraud, corruption or any other illegal activity or irregularity affecting the financial interests of the Union. The evaluation period preceding the decision shall not exceed two months. If the informant who provided the underlying information is known, he or she shall be informed as appropriate." [Am. 51]

"

(ab)  in paragraph 2, the first subparagraph is replaced by the following:"

“The decision to open an investigation shall be taken by the Director-General, acting on his own initiative or following a request from an institution, body, office or agency of the Union or from a Member State.” [Am. 52]

"

(ac)  in paragraph 2, the second subparagraph is deleted; [Am. 53]

(ad)  paragraph 3 is replaced by the following:"

“3. While the Director-General is considering whether or not to open an investigation following a request as referred to in paragraph 2, and/or while the Office is conducting such an investigation, the institutions, bodies, offices or agencies concerned shall not open a parallel investigation into the same facts, unless agreed otherwise with the Office. This paragraph shall not apply to investigations by the EPPO pursuant to Regulation (EU) 2017/1939.” [Am. 54]

"

(b)  in paragraph 3, the following sentence is added:"

"This paragraph shall not apply to investigations by the EPPO pursuant to Regulation (EU) 2017/1939."; [Am. 55]

"

(ba)   in Article 5, paragraph 5 is replaced by the following:"

"5. If the Director-General decides not to open an investigation within the institutions, bodies, offices and agencies despite there being a sufficient suspicion that there has been fraud, corruption or any other illegal activity or irregularity affecting the financial interests of the Union, he shall without delay send any relevant information to the institution, body, office or agency concerned for appropriate action to be taken in accordance with the rules applicable to that institution, body, office or agency. The Office shall agree with that institution, body, office or agency, if appropriate, on suitable measures to protect the confidentiality of the source of that information and shall, if necessary, ask to be informed of the action taken." [Am. 56]

"

(c)  paragraph 6 is replaced by the following:"

"6. If the Director-General decides not to open an external investigation, he may conduct an on-the-spot check or inspection pursuant to Article 3 despite there being a sufficient suspicion that there has been fraud, corruption or any other illegal activity or irregularity affecting the financial interests of the Union, he shall without delay send any relevant information to the competent authorities of the Member State concerned for action to be taken where appropriate, in accordance with Union law and national law. Where necessary, the Office shall also inform the institution, body, office or agency concerned."; [Am. 57]

"

(ca)  paragraph 6a is added:"

“6a. The Director-General shall periodically inform the Supervisory Committee, in accordance with Article 17(5), about the cases in which he or she has decided not to open an investigation, indicating the reasons for that decision.” [Am. 58]

"

(6)  Article 7 is amended as follows:

(-a)  in Article 7, paragraph 1 is replaced by the following:"

“1. The Director-General shall direct the conduct of investigations on the basis, where appropriate, of written instructions. Investigations shall be conducted under his direction by the staff of the Office designated by him. The Director-General shall not conduct investigations personally.” [Am. 59]

"

(a)  in paragraph 3, the first subparagraph is replaced by the following:"

"The competent authorities of the Member States shall give the necessary assistance to enable the staff of the Office to fulfil their tasks in accordance with this Regulation effectively and without undue delay.";

"

(b)  in paragraph 3, the following second subparagraph is inserted:"

"At the request of the Office in relation to matters under investigation, the Financial intelligence Units established pursuant to Directive (EU) 2015/849 of the European Parliament and of the Council(16) and other relevant competent authorities of the Member States shall provide it with the following:

   (a) information referred to in [Article 32a(3) of] Directive (EU) 2015/849;(17)
   (b) when strictly necessary for the purposes of the investigation, the record of transactions.";

"

(c)  in paragraph 3, the following third subparagraph is added:"

"When providing assistance in accordance with the previous subparagraphs, the national competent authorities shall act in conformity with any national procedural rules applicable to the national competent authority concerned.";

"

(ca)   in paragraph 3, the second subparagraph is replaced by the following:"

"The institutions, bodies, offices and agencies shall ensure that their officials, other servants, members, heads and staff members provide the necessary assistance to enable the staff of the Office to fulfil their tasks in accordance with this Regulation effectively and without undue delay." [Am. 60]

"

(cb)  paragraph 4 is deleted; [Am. 61]

(cc)  in paragraph 6, the introductory part is replaced by the following:"

“6. Where investigations show that it might be appropriate to take precautionary administrative measures to protect the financial interests of the Union, the Office shall without delay inform the institution, body, office or agency concerned of the investigation in progress and suggest measures to be taken. The information supplied shall include the following:” [Am. 62]

"

(cd)  in paragraph 6, first subparagraph, point b is replaced by the following:"

“(b) any information that could assist the institution, body, office or agency concerned in deciding on the appropriate precautionary administrative measures to be taken in order to protect the financial interests of the Union;” [Am. 63]

"

(ce)  in paragraph 6, first subparagraph, point c is replaced by the following:"

“(c) any special measures of confidentiality recommended, in particular in cases entailing the use of investigative measures falling within the competence of a national judicial authority or other national authority, in accordance with the national rules applicable to investigations.” [Am. 64]

"

(d)  in paragraph 6, the second subparagraph is replaced by the following:"

"In addition to the first subparagraph, the institution, body, office or agency concerned may at any time consult shall inform the Office with a view to taking, in close cooperation with the Office, any appropriate without delay of any deviation from the suggested precautionary measures, including measures for the safeguarding of evidence, and shall inform the Office without delay of such decision and the reasons for the deviation."; [Am. 65]

"

(e)  paragraph 8 is replaced by the following:"

"8. If an investigation cannot be closed within 12 months after it has been opened, the Director-General shall, at the expiry of that 12-month period and every six months thereafter, report to the Supervisory Committee, indicating in detail the reasons for the delay and, where appropriate, the remedial measures envisaged taken with a view to speeding up the investigation."; [Am. 66]

"

(ea)  paragraph 8a is added:"

“8a. The report shall contain, as a minimum, a brief description of the facts, their legal qualification, an assessment of the damage caused or likely to be caused, the date of expiration of the statutory limitation period, the reasons why the twelve-month period could not be kept, and the remedial measures envisaged with a view to speeding up the investigation, where applicable.” [Am. 67]

"

(7)  Article 8 is amended as follows:

(-a)  paragraph 1 is replaced by the following:"

“1. The institutions, bodies, offices and agencies shall transmit to the Office without delay any information relating to possible cases of fraud, corruption or any other illegal activity or irregularity affecting the financial interests of the Union. This duty shall apply to the EPPO when the concerned cases do not fall under its mandate in accordance with Chapter IV of Regulation (EU) 2017/1939.” [Am. 68]

"

(a)  in paragraph 1, the following subparagraph is added:"

"Where the institutions, bodies, offices and agencies report to the EPPO in accordance with Article 24 of Regulation (EU) 2017/1939, they may instead transmit comply with the obligation set out in the first subparagraph by transmitting to the Office a copy of the report sent to the EPPO."; [Am. 69]

"

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

"2. The institutions, bodies, offices and agencies and, unless prevented by national law, the competent authorities of the Member States shall, at the request of the Office or on their own initiative, transmit without delay to the Office any document or information they hold which relates to an ongoing investigation by the Office. [Am. 70]

Prior to the opening of an investigation, they shall transmit, at the request of the Office, any document or information they hold which is necessary to assess the allegations or to apply the criteria for opening an investigation as set out in Article 5(1).";

"

(c)  paragraph 3 is replaced by the following:"

"3. The institutions, bodies, offices and agencies and, unless prevented by national law, the competent authorities of the Member States shall transmit without delay to the Office, at the request of the Office or on their own initiative, any other document or information considered pertinent which they hold relating to the fight against fraud, corruption and any other illegal activity or irregularity affecting the financial interests of the Union. [Am. 71]

"

(d)  the following paragraph 4 is added:"

"4. This Article shall not apply to the EPPO as regards the criminal offences in respect of which it could exercise its competence in accordance with Articles 22 and 25 Chapter IV of Regulation (EU) 2017/1939. [Am. 72]

This is without prejudice to the possibility for the EPPO to provide the Office with relevant information on cases in accordance with Article 34(8), Article 36(6), Article 39(4) and Article 101(3) and (4) of Regulation (EU) 2017/1939.";

"

(8)  Article 9 is amended as follows:

(-a)   in paragraph 2, the fourth subparagraph is replaced by the following:"

"The requirements referred to in the second and third subparagraphs shall not apply to the taking of statements in the context of on-the-spot checks and inspections. The person concerned shall however be informed of his or her rights before a statement is taken, in particular of the right to be assisted by a person of his or her choice." [Am. 73]

"

(-aa)   in paragraph 4, the second subparagraph is replaced by the following:"

"To that end, the Office shall send the person concerned an invitation to comment either in writing or at an interview with staff designated by the Office. That invitation shall include a summary of the facts concerning the person concerned and the information required by Articles 15 and 16 of Regulation (EU) 2018/1725, and shall indicate the time-limit for submitting comments, which shall not be less than 10 working days from receipt of the invitation to comment. That notice period may be shortened with the express consent of the person concerned or on duly reasoned grounds of urgency of the investigation. The final investigation report shall make reference to any such comments." [Am. 74]

"

(a)  in paragraph 4, the third subparagraph is replaced by the following:"

"In duly justified cases where it is necessary to preserve the confidentiality of the investigation and/or entailing the use of investigative proceedings falling within the remit of the EPPO or a national judicial authority, the Director‑General may decide to defer the fulfilment of the obligation to invite the person concerned to comment.";

"

(aa)  paragraph 5a is added:"

“5a. For cases where the Office recommends a judicial follow-up, and without prejudice to the confidentiality rights of whistle-blowers and informants, the person concerned shall have access to the report drawn up by the Office under Article 11 following its investigation, and to any relevant documents, to the extent that they relate to that person and if, where applicable, neither the EPPO nor the national judicial authorities object within a period of six months. An authorisation by the competent judicial authority may also be granted before this period has expired.” [Am. 75]

"

(8a)   Article 9a is inserted:"

“Article 9a

Controller of procedural guarantees

1.  A Controller of procedural guarantees ('the Controller') shall be appointed by the Commission, in accordance with the procedure specified in paragraph 2, for a non-renewable term of five years. On expiry of his term, he shall remain in office until he is replaced.

2.   Following a call for applications in the Official Journal of the European Union, the Commission shall draw up a list of suitably qualified candidates for the positions of the Controller. After consultation with the European Parliament and the Council, the Commission shall appoint the Controller.

3.   The Controller shall have the necessary qualifications and experience in the field of procedural rights and guarantees.

4.   The Controller shall exercise his functions in complete independence and shall neither seek nor take instructions from anyone in the performance of his duties.

5.   The Controller shall monitor the Office's compliance with procedural rights and guarantees. He shall be responsible of handling the complaint received by the Office.

6.   The Controller shall report on the exercise of this function on an annual basis, to the European Parliament, the Council, the Commission, the Supervisory Committee and the Office. He shall not refer to individual cases under investigation and shall ensure the confidentiality of investigations even after their closure.” [Am. 76]

"

(8b)   Article 9b is inserted:"

“Article 9b

Complaints mechanism

1.   The Office shall, in cooperation with the Controller, take the necessary measures to set up a complaints mechanism to monitor and ensure the respect for procedural guarantees in all the activities of the Office.

2.   Any person concerned by an investigation by the Office shall be entitled to lodge a complaint with the Controller regarding the Office’s compliance with the procedural guarantees set out in Article 9. The lodging of a complaint shall have no suspensive effect on the conduct of the investigation under way.

3.   Complaints may be lodged at the latest one month after the complainant becomes aware of the relevant facts that constitute the alleged violation of his procedural guarantees. No complaint may be filed later than one month after the closure of the investigation. Complaints related to the notice period referred to in Article 9(2) and (4) shall be filed before the expiry of the notice period laid down in those provisions.

4.   Upon receipt of a complaint, the Controller shall inform the Director-General of the Office immediately and give the Office the possibility to resolve the issue raised by the complainant within 15 working days.

5.   Without prejudice to Article 10 of this Regulation, the Office shall transmit to the Controller all information that may be necessary for the Controller to issue a recommendation.

6.   The Controller shall issue a recommendation on the complaint without delay, but at the latest within two months of the Office informing the Controller of the action it has taken to remedy the issue or after expiry of the period referred to in paragraph 3. The recommendation shall be submitted to the Office and communicated to the complainant. In exceptional cases the Controller may decide to extend the period for issuing the recommendation by a further 15 days. The Controller shall inform the Director-General of the reasons for the extension by letter. In the absence of a recommendation by the Controller within the time limits set out in this paragraph, the Controller shall be deemed to have dismissed the complaint without a recommendation.

7.   Without interfering with the conduct of the investigation under way, the Controller shall examine the complaint in an adversarial procedure. With their consent, the Controller may ask witnesses to provide written or oral explanations he or she considers relevant to ascertaining the facts.

8.   The Director-General shall follow the Controller's recommendation on the issue, save in duly justified cases in which he or she may deviate from it. If the Director-General deviates from the Controller's recommendation, he or she shall communicate to the complainant and to the Controller the main reasons for that decision, inasmuch as doing so does not affect the on-going investigation. He or she shall state the reasons for not following the Controller's recommendation in a note to be attached to the final investigation report.

9.   The Director-General may request the opinion of the Controller on any matter related to the respect of procedural guarantees in the Controller’s mandate, including on the decision to defer information of the person concerned referred to in Article 9(3). The Director-General shall indicate in any such request the time limit within which the Controller is to respond.

10.   Without prejudice to the time limits provided for in Article 90a of the Staff Regulations, where a complaint has been lodged with the Director-General by an official or other servant of the Union in accordance with Article 90a of the Staff Regulations and the official or other servant has lodged a complaint with the Controller related to the same issue, the Director-General shall await the recommendation of the Controller before replying to the complaint.” [Am. 77]

"

(9)  Article 10 is amended as follows:

(-a)   paragraph 1 is replaced by the following:"

"1. Information transmitted or obtained in the course of investigations outside the institutions, bodies, offices and agencies, in whatever form, shall be protected by the relevant provisions under national and Union law." [Am. 78]

"

(-aa)  paragraph 2 is replaced by the following:"

“2. Information transmitted or obtained in the course of investigations within the institutions, bodies, offices and agencies, in whatever form, shall be subject to professional secrecy and shall enjoy the protection afforded by the rules applicable to the Union institutions.” [Am. 79]

"

(-ab)   paragraph 3a is added:"

“3a. The Office shall disclose its reports and recommendations after all related national and Union procedures were concluded by the responsible bodies and the disclosure no longer affects the investigations. The disclosure shall be in compliance with the data protection rules and principles set out in this Article and in Article 1.” [Am. 80]

"

(a)  in paragraph 4, the first subparagraph is replaced by the following:"

"The Office shall designate a Data Protection Officer in accordance with Article 24 43 of Regulation (EC) No 45/2001 (EU) 2018/1725."; [Am. 81]

"

(aa)  paragraph 5a is added:"

"5a. Persons reporting crimes and infringements related to the financial interests of the Union to the Office shall be fully protected, in particular through Union legislation regarding the protection of persons reporting on breaches of Union law." [Am. 82]

"

(10)  Article 11 is amended as follows:

(a)  in paragraph 1, the second subparagraph is replaced by the following:"

"The report may shall be accompanied by recommendations of the Director-General on action to be taken. Those recommendations shall, where appropriate, indicate any disciplinary, administrative, financial and/or judicial action by the institutions, bodies, offices and agencies and by the competent authorities of the Member States concerned, and shall specify in particular the estimated amounts to be recovered, as well as the preliminary classification in law of the facts established."; [Am. 83]

"

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

"2. In drawing up such reports and recommendations, account shall be taken of the relevant provisions of Union law and, in so far as it is applicable, of the national law of the Member State concerned.

The Office shall take proper internal measures to ensure the consistent quality of final reports and recommendations, and consider whether there is a need to revise the Guidelines on Investigation Procedures, to address any possible inconsistencies. [Am. 84]

Upon simple verification of their authenticity, reports drawn up on that basis including all evidence supporting and annexed to these reports shall constitute admissible evidence in judicial proceedings of a non-criminal nature before national courts and in administrative proceedings in the Member States. The power of the national courts to freely assess the evidence shall not be affected by this Regulation. [Am. 85]

Reports drawn up by the Office shall constitute admissible evidence in criminal proceedings of the Member State in which their use proves necessary in the same way and under the same conditions as administrative reports drawn up by national administrative inspectors. They shall be subject to the same evaluation rules as those applicable to administrative reports drawn up by national administrative inspectors and shall have the same evidentiary value as such reports. [Am. 86]

Member States shall notify to the Office any rules of national law relevant for the purposes of the third first subparagraph. [Am. 87]

The national courts shall notify to the Office any rejection of evidence in accordance with this paragraph. The notification shall include the legal basis and a detailed justification for the rejection. The Director-General shall, in his or her annual reports pursuant to Article 17(4), evaluate the admissibility of evidence in the Member States. [Am. 88]

Reports drawn up by the Office shall constitute admissible evidence in judicial proceedings before the Union courts and in administrative proceedings in the Union.";

"

(c)  paragraph 3 is replaced by the following:"

"3. Reports and recommendations drawn up following an external investigation and any relevant related documents shall be sent, as appropriate, to the competent authorities of the Member States concerned in accordance with the rules relating to external investigations and, if necessary, to the institution, body, office or agency concerned. That institution, body, office or agency shall take such action, in particular of a disciplinary or legal nature, as the results of the external investigation warrant, and shall report thereon to the Office, within a time-limit laid down in the recommendations accompanying the report, and, in addition, at the request of the Office. The competent authorities of the Member States shall report back to the Office within nine months on the actions taken in response to the case report."; [Am. 89]

"

(ca)  paragraph 4 is deleted; [Am. 90]

(cb)  paragraph 5 is replaced by the following: "

“5. Where the report drawn up following an investigation reveals the existence of facts which could give rise to criminal proceedings, that information shall be transmitted without delay to the judicial authorities of the Member State concerned, without prejudice to Articles 12c and 12d.” [Am. 91]

"

(cc)    paragraph 6a is inserted:"

“6a. The competent authorities of the Member States and the institutions, bodies, offices and agencies shall ensure that the disciplinary, administrative, financial and judicial recommendations made by the Director-General pursuant to paragraphs 1 and 3 are acted upon, and shall send to the Office a detailed report on the actions taken by 31 March each year, including the reasons for non-implementation of recommendations made by the Office where applicable.” [Am. 92]

"

(cd)  paragraph 8 is modified as follows:"

“8. Where an informant has provided the Office with information which has led to an investigation, the Office shall notify that informant that the investigation has been closed. The Office may, however, refuse any such request if it considers that it is such as to prejudice the legitimate interests of the person concerned, the effectiveness of the investigation and of the action to be taken subsequent thereto, or any confidentiality requirements.” [Am. 93]

"

(10a)  After Article 11, a new article is inserted:"

“Article 11a

Action before the General Court

Any person concerned may bring an action against the Commission for annulment of the investigation report transmitted to the national authorities or to the institutions under Article 11(3) on the grounds of lack of competence, infringement of an essential procedural requirement, infringement of the Treaties, including violation of the Charter, or misuse of powers.” [Am. 94]

"

(11)  Article 12 is amended as follows:

(-a)  paragraph 1 is replaced by the following: "

“1. Without prejudice to Articles 10 and 11 of this Regulation and to the provisions of Regulation (Euratom, EC) No 2185/96, the Office may transmit to the competent authorities of the Member States concerned information obtained in the course of on-the-spot checks or inspections pursuant to Article 3 in due time to enable them to take appropriate action in accordance with their national law. It may also transmit information to the institution, body, office or agency concerned.” [Am. 95]

"

(a)  in paragraph 1, the following sentence is added:"

"It may also transmit information to the institution, body, office or agency concerned."; [Am. 96]

"

(aa)  in paragraph 2, the first subparagraph is replaced by the following:"

“Without prejudice to Articles 10 and 11, the Director-General shall transmit to the judicial authorities of the Member State concerned information obtained by the Office, in the course of investigations within the institutions, bodies, offices and agencies, concerning facts which fall within the jurisdiction of a national judicial authority.” [Am. 97]

"

(b)  paragraph 3 is replaced by the following:"

"3. The competent authorities of the Member State concerned shall, unless prevented by national law, inform the Office in due time, on their own initiative or at the request of the Office, within one month of the action taken on the basis of the information transmitted to them under this Article."; [Am. 98]

"

(c)  the following paragraph 5 is added:"

"5. The Office may exchange, on its own initiative or on request, relevant information with the Eurofisc network established by Council Regulation (EU) No 904/2010(18).";

"

(12)  the following Articles are inserted:"

"Article 12a

Anti-fraud coordination services in the Member States

1.  Member States shall, for the purposes of this Regulation, designate a service (‘the anti-fraud coordination service’) to facilitate effective cooperation and exchange of information, including information of an operational nature, with the Office. Where appropriate, in accordance with national law, the anti-fraud coordination service may be regarded as a competent authority for the purposes of this Regulation.

2.  Upon request of the Office, before a decision has been taken as to whether or not to open an investigation, as well as during or after an investigation, the anti-fraud coordination services shall provide, obtain or coordinate the necessary assistance for the Office to carry out its tasks effectively. That assistance shall include in particular the assistance from the national competent authorities provided in accordance with Article 3(6) and (7), Article 7(3) and Article 8(2) and (3).

3.  The Office may request the assistance of the anti-fraud coordination services when conducting coordination activities in accordance with Article 12b, including, where appropriate, horizontal cooperation and exchange of information between anti-fraud coordination services.

Article 12b

Coordination activities

1.  Pursuant to Article 1(2), the Office may organise and facilitate cooperation between the competent authorities of the Member States, institutions, bodies, offices and agencies, as well as, in accordance with the cooperation and mutual assistance agreements and any other legal instrument in force, third countries' authorities and international organisations. To this end, the participating authorities and the Office may collect, analyse and exchange information, including operational information. The staff of the Office may accompany competent authorities carrying out investigative activities upon request of those authorities. Article 6, Article 7(6) and (7), Article 8(3) and Article 10 shall apply.

2.  The Office may draw up a report on the coordination activities conducted and transmit it, where appropriate, to the competent national authorities and institutions, bodies, offices and agencies concerned.

3.  This Article shall apply without prejudice to the exercise by the Office of powers conferred on the Commission in specific provisions governing mutual assistance between Member States' administrative authorities and cooperation between those authorities and the Commission.

3a.   The obligations of mutual administrative assistance pursuant to Council Regulation (EC) No 515/97(19) and Regulation (EU) No 608/2013(20) shall also apply to coordination activities relating to the European Structural and Investment Funds in accordance with this Article. [Am. 99]

4.  The Office may participate in joint investigation teams established in accordance with applicable Union law and exchange in this framework operational information acquired pursuant to this Regulation.

Article 12c

Reporting to the EPPO of any criminal conduct on which it could exercise its competence

1.  The Office shall report to the EPPO without undue delay any criminal conduct in respect of which the EPPO could exercise its competence in accordance with Article 22 and Article 25(2) and (3) Chapter IV of Regulation (EU) 2017/1939. The report shall be sent at any stage as early as possible before or during an investigation of the Office. [Am. 100]

2.  The report shall contain, as a minimum, a description of the facts and information known by the office, including an assessment of the damage caused or likely to be caused, where the Office has such information, the possible legal qualification and any available information about potential victims, suspects and any other involved persons. Together with the report, the Office shall transmit to the EPPO any other relevant information on the case in its possession. [Am. 101]

3.  The Office shall not be bound to report to the EPPO manifestly unsubstantiated allegations.

In cases where the information received by the Office does not include the elements set out in paragraph 2, and there is no investigation of the Office ongoing, the Office may conduct a preliminary evaluation of the allegations. The evaluation shall be carried out expeditiously without delay, and in any case within two months of receipt of the information. In the course of this evaluation, Article 6 and Article 8(2) shall apply. The Office shall refrain from performing any measures that may jeopardise any possible future investigations of the EPPO. [Am. 102]

Following this preliminary evaluation, the Office shall report to the EPPO if the conditions set out in paragraph 1 are met.

4.  Where the conduct referred to in paragraph 1 comes to light during an investigation by the Office, and the EPPO opens an investigation following the report, the Office shall not continue its investigation into the same facts other than in accordance with Articles 12e or 12f.

For the purpose of applying the first subparagraph, the Office shall verify in accordance with Article 12g(2) via the EPPO's case management system whether the EPPO is conducting an investigation. The Office may request further information from the EPPO. The EPPO shall reply to such a request within 10 working days.

5.  The institutions, bodies, offices and agencies may request the Office to conduct a preliminary evaluation of allegations reported to them. For the purposes of those requests, paragraph 3 paragraphs 1 to 4 shall apply mutatis mutandis. The Office shall inform the institution, body, office or agency concerned of the results of the preliminary evaluation, unless providing such information could jeopardise an investigation conducted by the Office or the EPPO. [Am. 103]

6.  Where, following the report to the EPPO in accordance with this Article, the Office closes its investigation, Article 9(4) and Article 11 shall not apply.

Article 12d

Non-duplication of investigations

1.   The Director-General shall not open an investigation in accordance with Article 5, and shall discontinue an ongoing investigation, if the EPPO is conducting an investigation into the same facts, other than in accordance with Articles 12e or 12f. The Director-General shall inform the EPPO about each decision on not opening or discontinuation taken on such grounds. [Am. 104]

For the purpose of applying the first subparagraph, the Office shall verify in accordance with Article 12g(2) via the EPPO's case management system whether the EPPO is conducting an investigation. The Office may request further information from the EPPO. The EPPO shall reply to such a request within 10 working days. This deadline may be extended in exceptional cases subject to modalities to be set out in the working arrangements referred to in Article 12g(1). [Am. 105]

Where the Office closes its investigation in accordance with the first subparagraph, Article 9(4) and Article 11 shall not apply. [Am. 106]

1a.  Upon request by the EPPO, the Office shall refrain from performing certain acts or measures which could jeopardise an investigation or prosecution conducted by the EPPO. The EPPO shall notify the Office without undue delay when the grounds for such a request cease to apply. [Am. 107]

1b.   Where the EPPO closes or discontinues an investigation on which it had received information from the Director-General pursuant to paragraph 1 and which is relevant to the exercise of the Office's mandate, it shall inform the Office without undue delay and may make recommendations regarding follow-up administrative investigations. [Am. 108]

Article 12e

The Office's support to the EPPO

1.  In the course of an investigation by the EPPO, and at the request of the EPPO in accordance with Article 101(3) of Regulation (EU) 2017/1939, the Office shall, in conformity with its mandate, support or complement the EPPO's activity in particular by:

   (a) providing information, analyses (including forensic analyses), expertise and operational support;
   (b) facilitating coordination of specific actions of the competent national administrative authorities and bodies of the Union;
   (c) conducting administrative investigations.

2.  A request pursuant to paragraph 1, a request shall be transmitted in writing and shall specify at least:

   (a) information on the EPPO investigation in so far as relevant for the purpose of the request;
   (b) the measure or measures which the EPPO requests the Office to perform and;
   (c) where appropriate, the envisaged timeline for their performance;.
   (d) It shall contain information about the EPPO investigation in so far as relevant for the purpose of the request. any instructions pursuant to paragraph 2a.

Where necessary, the Office may request additional information. [Am. 109]

2a.  In order to protect the admissibility of evidence as well as fundamental rights and procedural guarantees, where the Office performs supporting or complementary measures at the request of the EPPO pursuant to this Article, the EPPO may instruct the Office to apply higher standards of fundamental rights, procedural guarantees and data protection than provided for in this Regulation. In doing so, it shall specify in detail the formal requirements and procedures to be applied.

In the absence of any such specific instructions by the EPPO, Chapter VI (procedural safeguards) and Chapter VIII (data protection) of Regulation (EU) 2017/1939 shall apply mutatis mutandis to measures performed by the Office pursuant to this Article. [Am. 110]

Article 12f

Complementary investigations

1.  In duly justified cases where the EPPO is conducting an investigation, where the Director-General considers that an investigation should be opened or continued in accordance with the mandate of the Office with a view to facilitating the adoption of precautionary measures or of financial, disciplinary or administrative action, the Office shall inform the EPPO in writing, specifying the nature and purpose of the investigation, and seeking the EPPO’s written consent to the opening of a complementary investigation. [Am. 111]

Within 30 20 working days after receipt of this information the EPPO may shall either give its consent or object to the opening or continuation of an investigation or to the performance of any certain acts act pertaining to the investigation, where necessary to avoid jeopardising its own investigation or prosecution, and for as long as these grounds persist. The In duly justified situations, the EPPO may extend the deadline by an additional 10 working days. It shall inform the Office thereof.

In the event that the EPPO objects, the Office shall not open a complementary investigation. In that case, the EPPO shall notify to the Office without undue delay when the grounds for the objection cease to apply. [Am. 112]

In the event that the EPPO does not object within the time period of the previous subparagraph gives its consent, the Office may open or continue an investigation, and it shall conduct it in close consultation with the EPPO. [Am. 113]

If the EPPO does not reply within the deadline in the second subparagraph, the Office may enter into consultations with the EPPO so as to take a decision within 10 days. [Am. 114]

The Office shall suspend or discontinue its investigation, or refrain from performing certain acts pertaining to the investigation, if the EPPO subsequently objects to it, on the same grounds as referred to in the second subparagraph.

2.  Where the EPPO informs the Office that it is not conducting an investigation in reply to a request for information submitted in accordance with Article 12d and subsequently opens an investigation into the same facts, it shall inform the Office without delay. If, following receipt of this information, the Director-General considers that the investigation opened by the Office should be continued with a view to facilitating the adoption of precautionary measures or of financial, disciplinary or administrative action, paragraph (1) shall apply.

Article 12g

Working arrangements and exchange of information with the EPPO

1.  Where necessary to facilitate the cooperation with the EPPO as set out in Article 1(4a), the Office shall agree with the EPPO on administrative arrangements. Such working arrangements may establish practical details for the exchange of information, including personal data, operational, strategic or technical information and classified information, as well as the setting up of information technology platforms, including a common approach to upgrades and compatibility of software. They shall include detailed arrangements on the continuous exchange of information during the receipt and verification of allegations for the purpose of determining competences over investigations conducted by both offices. They shall also include arrangements on the transfer of evidence between the Office and the EPPO, as well as arrangements on the division of expenses.

Prior to the adoption of the working arrangements with the EPPO, the Director-General shall send the draft to the European Data Protection Supervisor, the Supervisory Committee and the European Parliament for information. The European Data Protection Supervisor and the Supervisory Committee shall deliver their opinions without delay. [Am. 115]

2.  The Office shall have indirect access to information in the EPPO's case management system on the basis of a hit/no hit system. Whenever a match is found between data entered into the case management system by the Office and data held by the EPPO, the fact that there is a match shall be communicated to both the EPPO and the Office. The Office shall take appropriate measures to enable the EPPO to have access to information in its case management system on the basis of a hit/no-hit system.

Each indirect access to information in the EPPO’s case management system by the Office shall be carried out only in so far as necessary for the performance of the Office’s functions as defined under this Regulation and shall be duly justified and validated via an internal procedure set up by the Office. The Office shall keep a log of all instances of access to the EPPO’s case management system. [Am. 116]

2a.   The Director-General of the Office and the European Chief Public Prosecutor shall meet at least once per year to discuss matters of common interest."; [Am. 117]

"

(12a)  Article 15 is amended as follows:

(a)  in paragraph 1, the second subparagraph is replaced by the following: "

“The Supervisory Committee shall in particular monitor developments concerning the application of procedural guarantees and the duration of investigations.” [Am. 118]

"

(b)  in paragraph 1, the fifth subparagraph is replaced by the following: "

“The Supervisory Committee shall be granted access to all the information and documents it considers necessary for the performance of its tasks, including reports and recommendations on closed investigations and cases dismissed , without however interfering with the conduct of investigations in progress, and with due regard to the requirements of confidentiality and data protection.” [Am. 119]

"

(c)  in paragraph 8, the first subparagraph is replaced by the following:"

“The Supervisory Committee shall appoint its chair. It shall adopt its own rules of procedure, which shall, before adoption, be submitted to the European Parliament, the Council, the Commission and the European Data Protection Supervisor for information. Meetings of the Supervisory Committee shall be convened on the initiative of its chair or the Director-General. It shall hold at least 10 meetings per year. The Supervisory Committee shall take its decisions by a majority of its component members. Its secretariat shall be provided by the Commission and in close cooperation with the Supervisory Committee. Before the appointment of any staff to the secretariat, the Supervisory Committee shall be consulted and its views shall be taken into account. The secretariat shall act on the instructions of the Supervisory Committee and independently from the Commission. Without prejudice to its control over the budget of the Supervisory Committee and its secretariat, the Commission shall not interfere with the monitoring functions of the Supervisory Committee.” [Am. 120]

"

(13)  Article 16 is amended as follows:

(-a)  paragraph 1 is replaced by the following:"

“1. The European Parliament, the Council and the Commission shall once a year meet the Director-General for an exchange of views at political level to discuss the Office’s policy relating to methods of preventing and combating fraud, corruption or any other illegal activity or irregularity affecting the financial interests of the Union. The Supervisory Committee shall participate in the exchange of views. The Chief European Public Prosecutor is invited to participate in the exchange of views. Representatives of the Court of Auditors, Eurojust and/or Europol may be invited to attend on an ad hoc basis upon request of the European Parliament, the Council, the Commission, the Director-General or the Supervisory Committee.” [Am. 121]

"

(a)  in paragraph 1, the third sentence is replaced by the following:"

"Representatives of the Court of Auditors, the EPPO, Eurojust and/or Europol may be invited to attend on an ad hoc basis upon request of the European Parliament, the Council, the Commission, the Director-General or the Supervisory Committee."; [Am. 122]

"

(aa)  in paragraph 2, the introductory part is replaced by the following:"

“2. The exchange of views may relate to any subject the European Parliament, the Council and the Commission agree on. More particularly, the exchange of views may relate to:” [Am. 123]

"

(b)  in paragraph 2, point (d) is replaced by the following:"

"(d) the framework of the relations between the Office and the institutions, bodies, offices and agencies, in particular the EPPO, and action taken on the Office's final investigation reports and other information forwarded by the Office; [Am. 124]

"

(ba)  in paragraph 2, point e is replaced by the following:"

"(e) the framework of the relations between the Office and the competent authorities of the Member States and action taken by competent authorities in the Member States on the Office’s final investigation reports and other information forwarded by the Office;" [Am. 125]

"

(bb)  a new paragraph is added:"

“4a. The presidency of the exchange of views shall rotate between the European Parliament, the Council and the Commission. [Am. 126]";

"

(14)  Article 17 is amended as follows:

(-a)  paragraph 1 is replaced by the following:"

“1. The Office shall be headed by a Director-General. The Director-General shall be appointed by the Commission, in accordance with the procedure specified in paragraph 2. The term of office of the Director-General shall be seven years and shall not be renewable. The Director-General shall be recruited as a temporary agent under the Staff Regulations.” [Am. 127]

"

(-aa)  paragraph 2 is replaced by the following:"

“2. In order to appoint a new Director-General, the Commission shall publish a call for applications in the Official Journal of the European Union. Such publication shall take place at the latest six months before the end of the term of office of the Director-General in office. After a favourable opinion has been given by the Supervisory Committee on the selection procedure applied by the Commission, the Commission shall draw up a list of suitably qualified candidates. The Director-General shall be nominated by common accord between the European Parliament, the Council and the Commission, and shall, subsequently, be appointed by the latter.” [Am. 128]

"

(a)  paragraph 3 is replaced by the following:"

"3. The Director-General shall neither seek nor take instructions from any government or any institution, body, office or agency in the performance of his duties with regard to the opening and carrying-out of external and internal investigations or coordination activities, or to the drafting of reports following such investigations or coordination activities. If the Director-General considers that a measure taken by the Commission calls his independence into question, he shall immediately inform the Supervisory Committee, and shall decide whether to bring an action against the Commission before the Court of Justice."; [Am. 129]

"

(aa)  paragraph 4 is replaced by the following:"

“4. The Director-General shall report regularly, and at least annually, to the European Parliament, the Council, the Commission and the Court of Auditors on the findings of investigations carried out by the Office, the action taken, the problems encountered and the Office’s follow-up to the recommendations made by the Supervisory Committee in accordance with Article 15, whilst respecting the confidentiality of the investigations, the legitimate rights of the persons concerned and of informants, and, where appropriate, national law applicable to judicial proceedings.

The annual report shall also include an assessment of the degree of cooperation with the competent authorities of the Member States and the institutions, bodies, offices and agencies, with particular regard to the implementation of Article 11 (2) and (6a).” [Am. 130]

"

(ab)  paragraph 4a is added:"

“4a. At the request of the European Parliament in the context of its budgetary control rights, the Director-General may provide information about the Office’s activities, respecting the confidentiality of investigations and follow-up proceedings. The European Parliament shall ensure the confidentiality of information provided in accordance with this paragraph.” [Am. 131]

"

(ac)  in paragraph 5, the first subparagraph is deleted; [Am. 132]

(b)  in paragraph 5, second subparagraph, point (b) is replaced by the following:"

"(b) of cases in which information has been transmitted to judicial authorities of the Member States and or to the EPPO;", [Am. 133]

"

(ba)  in paragraph 5, third subparagraph, the following point is inserted:"

“(ba) of cases dismissed;” [Am. 134]

"

(bb)  paragraph 7 is replaced by the following:"

“7. The Director-General shall put in place an internal advisory and control procedure, including a legality check, relating, inter alia, to the respect of the procedural guarantees and fundamental rights of the persons concerned and of witnesses, and of the national law of the Member States concerned, with particular reference to Article 11(2). The legality check shall be carried out by Office experts in law and investigative procedures who are qualified to hold judicial office in a Member State. Their opinion shall be annexed to the final investigation report.” [Am. 135]

"

(bc)  paragraph 8 is replaced by the following:"

“8. The Commission shall be empowered to adopt delegated acts in accordance with Article 19a concerning the establishment of a procedural code for investigations to be followed by the staff of the Office. Those delegated acts shall cover, in particular:

   (a) the practices to be observed in implementing the mandate and statute of the Office;
   (b) detailed rules governing investigation procedures as well as the investigation acts permitted;
   (c) the legitimate rights of the persons concerned;
   (d) procedural guarantees;
   (da) provisions relating to data protection and policies on communication and access to documents;
   (db) provisions on the legality check and the means of redress open to the persons concerned;
   (dc) relations with the EPPO.

During its preparatory work, the Commission shall consult the Supervisory Committee and the European Data Protection Supervisor.

Any delegated act adopted in accordance with this paragraph shall be published for information purposes on the Office’s website in all official languages of the Union.” [Am. 136]

"

(c)  in the first subparagraph of paragraph 8, the following point (e) is added:"

"(e) relations with the EPPO."; [Am. 137]

"

(ca)  in paragraph 9, the first subparagraph is replaced by the following:"

“Before imposing any disciplinary penalty on the Director-General or waiving his or her immunity, the Commission shall consult the Supervisory Committee.” [Am. 138]

"

(14a)  Article 19 is replaced by the following:"

“Article 19

Evaluation report and revision

No later than five years after the date determined in accordance with the second subparagraph of Article 120(2) of Regulation (EU) 2017/1939, the Commission shall submit to the European Parliament and the Council an evaluation report on the application and impact of this Regulation, in particular as regards the effectiveness and efficiency of the cooperation between the Office and the EPPO. That report shall be accompanied by an opinion of the Supervisory Committee.

No later than two years after the submission of the evaluation report pursuant to the first subparagraph, the Commission shall submit a legislative proposal to the European Parliament and the Council to modernise the Office’s framework, including additional or more detailed rules on the setting up of the Office, its functions or the procedures applicable to its activities, with particular regard to its co-operation with the EPPO, cross-border investigations and investigations in Member States not participating in the EPPO.” [Am. 139]

"

(14b)  A new Article 19a is inserted:"

“Article 19a

Exercise of the delegation

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

2.  The power to adopt delegated acts referred to in Article 17(8) shall be conferred on the Commission for a period of four years from ... (date of entry into force of this Regulation). The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the four‑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.

3.  The delegation of power referred to in Article 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 power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

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

5.  A delegated act adopted pursuant to Article 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 two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.” [Am. 140]

"

Article 2

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

2.  Articles 12c to 12f referred to in point 12 in Article 1 shall apply from the date determined in accordance with the second subparagraph of Article 120(2) of Regulation (EU) 2017/1939.

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

Done at

For the European Parliament For the Council

The President The President

(1) ECA Opinion No 8/2018.
(2)OJ C 42, 1.2.2019, p. 1.
(3) Position of the European Parliament of 16 April 2019.
(4)Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).
(5)Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).
(6)Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).
(7)COM(2017)0589. The report was accompanied by an evaluation Staff Working Document, SWD(2017)0332, and an Opinion of the Office's Supervisory Committee, Opinion 2/2017.
(8)Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities, OJ L 292, 15.11.1996, p. 2
(9)Article 129 will be inserted in Regulation (EU) 2018/XX of the European Parliament and the Council (new Financial Regulation), on which a political agreement has been reached and which is expected to be adopted in the coming months.
(10)Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax, OJ L 268, 12.10.2010, p. 1.
(11) Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).
(12)Council Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters, OJ L 82, 22.3.1997, p. 1.
(13)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 (OJ L 8, 12.1.2001, p. 1).
(14)OJ C ….
(15)Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).
(16)Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73).
(17)Article 32a(3) will be inserted in Directive (EU) 2015/849 by Directive (EU) 2018/XX of the European Parliament and of the Council amending Directive (EU) 2015/849, on which a political agreement has been reached on 19 December 2017 and which is expected to be adopted in the coming months.
(18)Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax (OJ L 268, 12.10.2010, p. 1).
(19) Council Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters (OJ L 082, 22.3.1997, p. 1).
(20) Regulation (EU) No 608/2013 of the European Parliament and of the Council of 12 June 2013 concerning customs enforcement of intellectual property rights and repealing Council Regulation (EC) No 1383/2003 (OJ L 181, 29.6.2013, p. 15).


Establishing the instrument for financial support for customs control equipment ***I
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Resolution
Consolidated text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council establishing, as part of the Integrated Border Management Fund, the instrument for financial support for customs control equipment (COM(2018)0474 – C8-0273/2018 – 2018/0258(COD))
P8_TA(2019)0384A8-0460/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0474),

–  having regard to Article 294(2) and Article 33, Article 114 and Article 207 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0273/2018),

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

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

–  having regard to Rule 59 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 Budgets, the Committee on Budgetary Control and the Committee on Civil Liberties, Justice and Home Affairs (A8-0460/2018),

1.  Adopts its position at first reading hereinafter set out(2);

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) .../… of the European Parliament and of the Council establishing, as part of the Integrated Border Management Fund, the instrument for financial support for customs control equipment

P8_TC1-COD(2018)0258


THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 33, 114 and 207 thereof,

Having regard to the proposal from the European Commission,

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

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

Acting in accordance with the ordinary legislative procedure(4),

Whereas:

(1)  The 2 140 customs offices(5) that are present over the external borders of the European Union need to be properly equipped to ensure the efficient and effective operation of the customs union. The need for adequate and equivalent customs controls is ever more pressing not only by reason of the traditional function of customs to collect revenue but also increasingly by the necessity to significantly reinforce the control of goods entering and exiting Union’s external borders in order to ensure both safety and security. However, at the same time, those controls on the movement of goods across the external borders should not impair but rather facilitate legitimate trade with third countries, in compliance with the safety and security conditions. [Am. 1]

(1a)  The customs union is a cornerstone of the European Union, which is one of the largest trading blocks in the world, and is essential for the proper functioning of the single market for the benefit of both businesses and citizens. In its resolution of 14 March 2018(6), the European Parliament expressed particular concern regarding customs fraud, which has created a significant loss of income for the Union's budget. The European Parliament reiterated that a stronger and a more ambitious Europe can only be achieved if it is provided with reinforced financial means and called, therefore, for providing continuous support to existing policies, for increasing resources to the Union’ flagship programmes, and for additional responsibilities to be matched with additional financial means. [Am. 2]

(2)  There is currently an imbalance in the performance of customs control by Member States. This imbalance is due both to geographic differences between Member States and in their respective capacities and resources, as well as to a lack of standardised customs controls. The ability of Member States to react to challenges generated by the constantly evolving global business models and supply chains depend not only on the human component but also on the availability and proper functioning of modern and reliable customs control equipment. Other challenges, such as the surge of e-commerce, the digitalisation of the controls and inspections records, resilience to cyber-attacks, sabotage, industrial espionage and misuse of data, will also increase demand for better functioning of customs procedures. The provision of equivalent customs control equipment is therefore an important element in addressing the existing imbalance. It will improve equivalence in the performance of customs controls throughout Member States and thereby avoid the diversion of the flows of goods towards the weakest points. All the goods entering the customs territory of the Union should be subject to thorough controls in order to avoid “port-shopping” by custom fraudsters. To ensure that the overall strength is increased as well as convergence in the performance of customs control by Member States, a clear strategy related to the weakest points is required. [Am. 3]

(3)  A number of Member States have repeatedly expressed the need for financial support and requested an in-depth analysis of the equipment needed. In its conclusions(7) on customs funding on 23 March 2017, the Council invited the Commission to "evaluate the possibility of funding technical equipment needs from future Commission financial programmes and improve coordination and (…) cooperation between Customs Authorities and other law enforcement authorities for funding purposes". [Am. 4]

(4)  Under Regulation (EU) No 952/2013 of the European Parliament and of the Council(8), customs controls are to be understood not only as the supervision of customs legislation but also other legislation governing the entry, exit, transit, movement, storage and end-use of goods moved between the customs territory of the Union and countries or territories outside that territory, and the presence and movement within the customs territory of the Union of non-Union goods and goods placed under the end-use procedure. Such other legislation empowering customs authorities with specific tasks of control includes provisions on taxation, in particular as regards excise duties and value added tax, on the external aspects of the internal market, on the common trade policy and other common Union policies having a bearing on trade, on the overall supply chain security and on the protection of the financial and economic interests of the Union and its Member States.

(5)  Supporting the creation of an adequate and equivalent level of customs controls at the Union’s external borders allows maximising the benefits of the customs union. A dedicated Union intervention for customs control equipment correcting current imbalances would moreover contribute to the overall cohesion between Member States. In view of the challenges facing the world, in particular the continued need to protect the financial and economic interests of the Union and its Member States while easing the flow of legitimate trade, the availability of modern and reliable control equipment at the external borders is indispensable.

(6)  It is therefore opportune to establish a new Instrument for financial support for customs control equipment that should ensure the detection of practices, such as for example counterfeiting of goods and other illegal commercial practices. Already existing formulas of financial support should be considered. [Am. 5]

(7)  As customs authorities of the Member States have been taking up an increasing number of responsibilities, which often extend to the field of security and take place at the external border, ensuring equivalence in carrying out border control and customs control at the external borders needs to be addressed by providing adequate Union financial support to the Member States. It is equally important to promote inter-agency cooperation, while considering cybersecurity, at Union borders as regards controls of goods and controls of persons among the national authorities in each Member State that are responsible for border control or for other tasks carried out at the border. [Am. 6]

(8)  It is therefore necessary to establish an Integrated Border Management Fund ('the Fund').

(9)  Due to the legal particularities applicable to Title V of the TFEU as well as the different applicable legal bases regarding the policies on external borders and on customs control, it is not legally possible to establish the Fund as a single instrument.

(10)  The Fund should therefore be established as a comprehensive framework for Union financial support in the field of border management comprising the Instrument for financial support for customs control equipment ('the Instrument') established by this Regulation as well as the instrument for financial support for border management and visa established by Regulation (EU) No …/… of the European Parliament and of the Council(9).

(11)  This Regulation lays down a financial envelope for the Instrument, which is to constitute the prime reference amount, within the meaning of point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management(10), for the European Parliament and the Council during the annual budgetary procedure. To secure budgetary discipline, the conditions as to how the grants will be prioritised should be clear, defined and based on needs that have been identified for the tasks performed by customs points. [Am. 7]

(12)  Regulation (EU, Euratom) [2018/XXX] of the European Parliament and of the Council(11) (the ‘Financial Regulation’) applies to this Instrument. It lays down rules on the implementation of the Union budget, including the rules on grants.

(13)  Regulation (EU) [2018/XXX] of the European Parliament and of the Council(12) establishes the "Customs" programme for cooperation in the field of customs to support the customs union and customs authorities. In order to preserve the coherence and horizontal coordination of cooperation actions, it is appropriate to implement all of them under one single legal act and set of rules. Therefore, only the purchase, maintenance and upgrade of the eligible customs control equipment should be supported under this Instrument while the Customs programme for cooperation in the field of customs should support related actions, such as cooperation actions for the assessment of needs or training relating to the equipment concerned.

(13a)  Customs control equipment financed under this Instrument should meet optimal security, including cybersecurity, safety, environmental and health standards. [Am. 8]

(13b)  Data produced by customs control equipment financed under this Instrument should be accessed and processed only by duly authorised staff of the authorities, and should be adequately protected against unauthorised access or communication. Member States should be in full control of that data. [Am. 9]

(13c)  Customs control equipment financed under this Instrument should contribute to providing optimal customs risk management. [Am. 10]

(13d)  When replacing old customs control equipment by the means of this Instrument, Member States should be responsible for environment friendly disposal of old customs control equipment. [Am. 11]

(14)  In addition, and where appropriate, the Instrument should also support the purchase or upgrade of customs control equipment for testing new pieces or new functionalities in operational conditions before Member States start large-scale purchases of such new equipment. Testing in operational conditions should follow up in particular on the outcomes of research of customs control equipment in the framework of Regulation (EU) [2018/XXX](13).

(15)  Most customs control equipment may be equally or incidentally fit for controls of compliance with other legislation, such as provisions on border management, visa or police cooperation. The Integrated Border Management Fund has therefore been conceived as two complementary instruments with distinct but coherent scopes for the purchase of equipment. On the one hand, the instrument for border management and visa established by Regulation [2018/XXX](14) will exclude equipment that can be used for both border management and customs control. On the other hand, the instrument for financial support for customs control equipment established by this Regulation will not only support financially equipment with customs controls as the main purpose but will also allow its use as well for additional related purposes such as border controls, safety, and security. This distribution of roles will foster inter-agency cooperation as a component of the European integrated border management approach, as referred to in Article 4(e) of Regulation (EU) 2016/1624(15), thereby enabling customs and border authorities to work together and maximising the impact of the Union budget through co-sharing and inter-operability of control equipment. To ensure that any instrument or equipment financed by the fund is in the permanent custody of the designated customs point that owns the equipment, the act of co-sharing and interoperability between customs and border authorities should be defined as being non-systematic and non-regular. [Am. 12]

(16)  By way of derogation from the Financial Regulation, funding of an action by several Union programmes or instruments should be possible in order to allow and support, where appropriate, cooperation and interoperability across domains. However, in such cases, the contributions may not cover the same costs in accordance with the principle of prohibition of double funding established by the Financial Regulation. If a Member State has already been awarded or has received contributions from another Union programme or support from a Union fund for the acquisition of the same equipment, that contribution or support should be listed in the application. [Am. 13]

(16a)   The Commission should incentivise joint procurement and testing of customs control equipment between Member States. [Am. 14]

(17)  In view of the rapid evolution of customs priorities, threats and technologies, work programmes should not span over long periods of time. At the same time, the need to establish annual work programmes increases the administrative burden for both the Commission and Member States without it being necessary for the implementation of the Instrument. Against that backdrop, work programmes should in principle cover more than one budgetary year. Moreover, to ensure that the integrity of the Union's strategic interests are preserved, Member States are encouraged to consider carefully cybersecurity and the risks to potential exposure of sensitive data outside the Union when tendering for new customs control equipment. [Am. 15]

(18)  In order to ensure uniform conditions for the implementation of the work programme under this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council(16). [Am. 16]

(19)  Although central implementation is indispensable in order to achieve the specific objective of ensuring equivalent customs controls, given the technical nature of this Instrument, preparatory work is required at technical level. Therefore, implementation should be supported by individual assessments of needs that are dependent on national expertise and experience through the involvement of customs administrations of the Member States. Those assessments of needs should be based on a clear methodology including a minimum number of steps ensuring the collection of the required relevant information. [Am. 17]

(20)  To ensure regular monitoring and reporting, a proper framework for monitoring the results achieved by the Instrument and actions under it should be put in place. Such monitoring and reporting should be based on quantitative and qualitative indicators measuring the effects of the actions under the Instrument. Member States should ensure a transparent and clear procurement procedure. Reporting requirements should include some detailed information on customs control equipment and procurement procedure beyond a certain cost threshold, and a justification of the expenses. [Am. 18]

(21)  Pursuant to paragraph 22 and 23 of the Inter-institutional agreement for Better Law-Making of 13 April 2016(17), there is a need to evaluate this Instrument on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, can include measurable indicators, as a basis for evaluating the effects of the Instrument on the ground.

(22)  In order to respond appropriately to evolving policy priorities, threats and technologies, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending this Regulation in order to lay down work programmes, amending the customs control purposes for actions eligible under the Instrument and the list of indicators to measure the achievement of the specific objectives. It is of particular importance that the Commission carries out appropriate and fully transparent consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. [Am. 19]

(23)  In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council(18), Council Regulation (Euratom, EC) No2988/95(19), Council Regulation (Euratom, EC) No 2185/96(20) and Regulation (EU) 2017/1939(21), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other criminal offences affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other illegal activities affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council(22). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(24)  Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding. Funding under this Instrument should respect the principles of transparency, proportionality, equal treatment and non-discrimination. [Am. 20]

(25)  The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objective of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation. Improving the implementation and quality of spending should constitute guiding principles for the achievement of the objectives of the Instrument while ensuring optimal use of financial resources. [Am. 21]

(26)  Since the objective of this Regulation, which is to establish a Instrument that supports the customs union and customs authorities, cannot be sufficiently achieved by the Member States alone further to objective imbalances existing at geographical level amongst them, but can rather, by reason of the equivalent level and quality of custom control that a coordinated approach and a centralised funding will help providing, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter

1.  This Regulation establishes the Instrument for financial support for customs control equipment ('the Instrument'), as part of the Integrated Border Management Fund ('the Fund') to provide financial support for the purchase, maintenance and upgrade of customs control equipment.

2.  Jointly with Regulation [2018/XXX] establishing, as part of the Integrated Border Management Fund, the instrument for financial support for border management and visa(23), this Regulation establishes the Fund.

3.  It lays down the objectives of the Instrument, the budget for the period 2021 – 2027, the forms of Union funding and the rules for providing such funding.

Article 2

Definitions

For the purposes of this Regulation, the following definitions shall apply:

(1)  'customs authorities' means the authorities defined in point (1) of Article 5 of Regulation (EU) No 952/2013;

(2)  'customs controls' means the specific acts defined in point (3) of Article 5 of Regulation (EU) No 952/2013;

(3)  'customs control equipment' means equipment intended primarily for performing customs controls;

(4)  'mobile customs control equipment' means any means of transport that, beyond its mobile capacities, is intended itself to be a piece of customs control equipment or is fully equipped with customs control equipment;

(5)  'maintenance' means preventive, corrective and predictive interventions, including operational and functional checks, servicing, repair and overhaul but excluding upgrading, necessary for retaining or restoring a piece of customs control equipment to its specified operable condition to achieve its maximum useful life;

(6)  'upgrade' means evolutive interventions necessary for bringing an existing piece of customs control equipment from an outdated to a state-of-the-art specified operable condition.

Article 3

Instrument objectives

1.  As part of the Integrated Border Management Fund and with a view to the long-term aim that all customs controls in the Union are standardised, the Instrument has the general objective to support the customs union and customs authorities to protect the financial and economic interests of the Union and its Member States to promote inter-agency cooperation at Union borders as regards controls of goods and persons, to ensure security and safety within the Union and to protect the Union from unfair and illegal trade while facilitating legitimate business activity. [Am. 22]

2.  The Instrument has the specific objective of contributing to adequate and equivalent customs controls through the fully transparent purchase, maintenance and upgrade of relevant, state-of-the-art, secure, cyber-resilient, safe, environmental-friendly and reliable customs control equipment. An additional objective is to improve the quality of customs controls throughout Member States to avoid the diversion of goods towards weaker points in the Union. [Am. 23]

2a.  The Instrument shall contribute to the implementation of the European Integrated Border Management by supporting interagency cooperation, co-sharing and interoperability of new equipment acquired through the Instrument. [Am. 24]

Article 4

Budget

1.  The financial envelope for the implementation of the Instrument for the period 2021 – 2027 shall be EUR 1 149 175 000 in 2018 prices (EUR 1 300 000 000 in current prices). [Am. 25]

2.  The amount referred to in paragraph 1 may also cover legitimate and verified expenses for preparation, monitoring, control, audit, evaluation and other activities for managing the Instrument and evaluating its performance and the achievement of its objectives. It may moreover cover likewise legitimate and verified expenses relating to the studies, meetings of experts, information and communication actions, exchange of data between involved Member States in so far as they are related to the specific objectives of the Instrument in support of the general objective, as well as expenses linked to information technology networks focusing on information processing and exchange, including corporate information technology tools and other technical and administrative assistance needed in connection with the management of the Instrument. [Am. 26]

Article 5

Implementation and forms of EU funding

1.  The Instrument shall be implemented in direct management in accordance with the Financial Regulation.

1a.   When the action supported involves the purchase or upgrade of equipment, the Commission shall set up adequate safeguards and contingency measures to ensure that all the equipment purchased with the support of Union programmes and instruments is put to use by the relevant customs authorities in all relevant cases. [Am. 27]

2.  The Instrument may provide funding in any of the forms laid down in the Financial Regulation and in particular by means of grants.

3.  When the action supported involves the purchase or upgrade of equipment, the Commission shall set up a coordination mechanism ensuring efficiency and interoperability between all the equipment purchased with the support of Union programmes and instruments, which shall allow for the consultation and participation of relevant Union agencies, in particular the European Border and Coast Guard Agency. The coordination mechanism shall include the participation and consultation of the European Border and Coast Guard Agency to maximise the Union added value in the field of border management. [Am. 28]

3a.   When the action supported involves the purchase or upgrade of equipment, the Commission shall set up adequate safeguards and contingency measures to ensure that all the equipment purchased with the support of Union programmes and instruments meets agreed standards on regular maintenance. [Am. 29]

CHAPTER II

ELIGIBILITY

Article 6

Eligible actions

1.  In order for actions to be eligible for funding under this Instrument, the actions must comply with the following requirements:

(a)  implement the objectives referred to in Article 3;

(b)  support the purchase, maintenance and upgrade of customs controls equipment that has one or more of the following customs control purposes:

(1)  non-intrusive inspection;

(2)  indication of hidden objects on humans;

(3)  radiation detection and nuclide identification;

(4)  analysis of samples in laboratories;

(5)  sampling and field analysis of samples;

(6)  handheld search.

Annex 1 lays down an indicative list of customs control equipment that may be used to achieve the customs control purposes referred to in points (1) to (6).

2.  By way of derogation from paragraph 1, in duly justified cases, the actions may also cover the fully transparent purchase, maintenance and upgrade of customs controls equipment for testing new pieces or new functionalities in operational conditions. [Am. 30]

3.  The Commission is empowered to adopt delegated acts in accordance with Article 14 to amend the customs control purposes set out in point (b) of paragraph 1 as well as Annex 1 where such review is considered necessary and in order to stay up to date with technological developments, changing patterns in smuggling of goods and with new, smart and innovative solutions for customs control purposes. [Am. 31]

4.  Customs control equipment financed under this Instrument should primarily be used for customs controls, but may be used for purposes additional to customs controls, including for control of persons in support of the national border management authorities and investigation to comply with the Instrument's general and specific objectives set out in Article 3. [Am. 32]

4a.   The Commission shall incentivise joint procurement and testing of customs control equipment between Member States. [Am. 33]

Article 7

Eligible entities

By way of derogation from Article 197 of the Financial Regulation, the eligible entities shall be the customs authorities of Member States where they provide the information necessary for the assessments of needs as set out in Article 11(3).

Article 8

Co-financing rate

1.  The Instrument may finance up to 80% of the total eligible costs of an action.

2.  Any funding in excess of that ceiling shall only be granted in duly justified exceptional circumstances.

2a.   Funding in excess of that ceiling may be granted in cases of joint procurement and testing of customs control equipment between Member States. [Am. 34]

2b.   The exceptional circumstances referred to in paragraph 2 may include purchasing of new customs control equipment and submitting it to the technical equipment pool of the European Border and Coast Guard. Admissibility of the customs control equipment to the technical equipment pool shall be ascertained in accordance with Article 5(3). [Am. 35]

Article 9

Eligible costs

All the following costs shall not be related to actions referred to in Article 6 shall be eligible for funding under the Instrument, with the exception of: [Am. 36]

(a)  costs related to the purchase of land;

(aa)  costs relating to training or the upgrading of skills necessary for the use of the equipment; [Am. 37]

(b)  costs relating to infrastructure, such as buildings or outdoor facilities, as well as to furniture;

(c)  costs associated with electronic systems, with the exception of software and software updates directly necessary to use the customs control equipment and with the exception of the electronic software and programming necessary to inter-link existing software with the customs control equipment; [Am. 38]

(d)  costs of networks, such as secured or unsecured communication channels, or subscriptions, with the exception of networks or subscriptions directly necessary to use the customs control equipment; [Am. 39]

(e)  costs of transport means, such as vehicles, aircrafts or ships, with the exception of mobile customs control equipment;

(f)  costs of consumables, including reference or calibration material, for customs control equipment;

(g)  costs relating to personal protective equipment.

CHAPTER III

GRANTS

Article 10

Award, complementarity and combined funding

1.  Grants under the Instrument shall be awarded and managed in accordance with Title VIII of the Financial Regulation.

2.  In accordance with Article 195(f) of the Financial Regulation, grants shall be awarded without a call for proposals to the eligible entities referred to in Article 7.

3.  By way of derogation from Article 191 of the Financial Regulation, an action that has received a contribution from the Customs programme for cooperation in the field of customs established by Regulation (EU) [2018/XXX](24) or from any other Union programme may also receive a contribution under the Instrument, provided that the contributions do not cover the same costs. The rules of each contributing Union programme shall apply to its respective contribution to the action. The cumulative funding shall not exceed the total eligible costs of the action and the support from the different Union programmes may be calculated on a pro-rata basis in accordance with the documents setting out the conditions for support.

CHAPTER IV

PROGRAMMING, MONITORING AND EVALUATION

Article 11

Work programme

1.  The Instrument shall be implemented by work programmes referred to in Article 110(2) of the Financial Regulation.

2.  The work programmes shall be adopted by The Commission by means of an implementing act. That implementing act shall be adopted is empowered to adopt delegated acts in accordance with the examination procedure referred to in Article 15 14, amending Annex 2a in order to lay down work programmes. [Am. 40]

3.  The preparation of the work programmes referred to in paragraph 1 shall be supported by an individual assessment of needs, which shall consist of the following at a minimum: [Am. 41]

(a)  a common categorisation of border crossing points;

(b)  an exhaustive inventory of available and functional customs control equipment; [Am. 42]

(c)  a common definition of a minimum and an optimal technical standard of customs control equipment by reference to the category of border crossing points; and [Am. 43]

(ca)  an assessment of an optimal level of customs control equipment by reference to the category of border crossing points; and [Am. 44]

(d)  a detailed estimate of financial needs depending on the size of customs operations and the relative workload. [Am. 45]

The assessment of needs shall result from actions carried out under the Customs 2020 programme established by Regulation (EU) No 1294/2013 of the European Parliament and of the Council(25) or under the Customs programme for cooperation in the field of customs established by Regulation (EU) [2018/XXX](26) and shall be updated regularly and at a minimum every 3 years.

Article 12

Monitoring and reporting

1.  Indicators to report on In compliance with its reporting requirement pursuant to point (e)(i) of Article 38(3) of the Financial Regulation, the Commission shall present to the European Parliament and the Council information on the performance of the Programme. The Commission’s reporting on performance shall include information on both progress of the Instrument towards the achievement of the general and specific objectives set out in Article 3 are set out in Annex 2 and shortfalls. [Am. 46]

2.  Indicators to report on the progress of the Instrument towards the achievement of the general and specific objectives in Article 3 are set out in Annex 2. To ensure effective assessment of progress of the Instrument towards the achievement of its objectives, the Commission is empowered to adopt delegated acts in accordance with Article 14 to amend Annex 2 to review or complement the indicators where considered necessary and to supplement this Regulation with provisions on the establishment of a monitoring and evaluation framework in order to provide the European Parliament and the Council with updated qualitative as well as quantitative information on performance of the Programme. [Am. 47]

3.  The performance reporting system shall ensure that data for monitoring the implementation and results of the Instrument are comparable and complete as well as collected efficiently, effectively, and in a timely manner. To that end, proportionate reporting requirements shall be imposed on recipients of Union funds. The Commission shall provide the European Parliament and the Council with reliable information on the quality of the performance data used. [Am. 48]

4.  The reporting requirements referred to in paragraph 3 shall include at least the annual communication to the Commission of the following information where the cost of a piece of customs control equipment exceeds EUR 10 000 exclusive of taxes:

(a)  commissioning and decommissioning dates of the customs control equipment;

(b)  statistics on the use of the customs control equipment;

(c)  information on results from the use of the customs control equipment.

(ca)   the presence and condition five years after commissioning of items of equipment funded from the Union budget; [Am. 49]

(cb)   information on instances of maintenance of the customs control equipment; [Am. 50]

(cc)   information on the procurement procedure; [Am. 51]

(cd)   justification of the expenses. [Am. 52]

Article 13

Evaluation

1.  Evaluations of actions funded under the Instrument and referred to in Article 6 shall assess the Instrument's results, impact and effectiveness, and shall be carried out in a timely manner to feed into ensure their efficient use in the decision-making process. [Am. 53]

2.  The interim evaluation of the Instrument shall be performed once there is sufficient information available about the implementation of the Instrument, but no later than four three years after the start of the implementation of the Instrument. [Am. 54]

The interim evaluation shall present findings necessary to make a decision about a follow-up to the Programme beyond 2027 and its objectives. [Am. 55]

3.  At the end of the implementation of the Instrument, but no later than four three years after the end of the period specified in Article 1, a final evaluation of the Instrument shall be carried out by the Commission. [Am. 56]

4.  The Commission shall communicate the conclusions of the evaluations, accompanied by its observations and lessons learned, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. [Am. 57]

4a.  The Commission shall include annual partial evaluations in its report "Protection of the European Union's financial interests - Fight against fraud". [Am. 58]

CHAPTER V

EXERCISE OF THE DELEGATION AND COMMITTEE PROCEDURE

Article 14

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 6(3), 11(2) and 12(2) shall be conferred on the Commission until 31 December 2028. [Am. 59]

3.  The delegation of power referred to in Articles 6(3), 11(2) and 12(2) 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 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. 60]

4.  Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016.

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

6.  A delegated act adopted pursuant to Articles 6(3), 11(2) and 12(2) shall enter into force if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. [Am. 61]

Article 15

Committee procedure

1.  The Commission shall be assisted by the “Customs Programme Committee” referred to in Article 18 of Regulation (EU) [2018/XXX](27).

2.  Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. [Am. 62]

CHAPTER VI

TRANSITIONAL AND FINAL PROVISIONS

Article 16

Information, communication and publicity

1.  The recipients of Union funding shall acknowledge the origin and ensure the visibility of the Union funding (in particular when promoting the actions and their results) by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public, thereby showing the Union added value and aiding the data gathering efforts of the Commission in order to enhance budgetary transparency. [Am. 63]

2.  In order to ensure transparency, the Commission shall implement regularly provide information and communication actions to the public relating to the Instrument, and its actions and results,. Financial resources allocated to the Instrument shall also contribute to the corporate communication of the political priorities of the Union, as far as they are related to the objectives referred to referring to, inter alia, the work programmes referred to in Article 3 11. [Am. 64]

Article 17

Transitional provisions

If necessary, appropriations may be entered in the budget beyond 2027 to cover the expenses provided for in Article 4(2), to enable the management of actions not completed by 31 December 2027.

Article 18

Entry into force

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

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

Done at ...,

For the European Parliament For the Council

The President The President

ANNEX 1

Indicative list of customs control equipment in relation to customs control purpose referred to in Article 6(1)(b)

CUSTOMS CONTROL PURPOSE

CUSTOMS CONTROL EQUIPMENT

CATEGORY

APPLICATION

Non-intrusive inspection

X-Ray scanner - High energy

Containers, trucks, rail wagons and vehicles

X-ray scanner - Low energy

Pallets, boxes and parcels

Passenger baggage

Vehicles

X-ray backscatter

Containers

Trucks

Vehicles

Other

Automatic Number Plate / Container Recognition Systems

Vehicle weighting scales

Forklifts and similar mobile customs control equipment

Indication of hidden objects on humans(28)

X-ray based backscatter portal

Mainly used in airports to detect hidden objects on humans (drugs, explosives, cash)

Body scanner

Millimetre wave-based security scanner

Radiation detection and nuclide identification

Radiological and Nuclear Detection

Personal Radiation Monitor/detector (PRM)

Handheld Radiation detector

Isotope Identification Device (RIID)

Radiation Portal Monitor (RPM)

Spectrometric Portal Monitor for isotope identification (SPM)

Analysis of samples in laboratories

Identification, quantification and verification of all possible goods

Gas and liquid chromatography (GC, LC, HPLC…)

Spectrometry and techniques combined with spectrometry (IR, Raman, UV-VIS, Fluorescence, GC-MS…)

X-Ray equipment (XRF…)

NMR spectrometry and Stable isotope analyses

Other laboratory equipment (AAS, Distillation Analyser, DSC, Electrophoresis, Microscope, LSC, Smoking machine…)

[Ams. 65, 66, 67 and 68]

CUSTOMS CONTROL PURPOSE

CUSTOMS CONTROL EQUIPMENT

CATEGORY

APPLICATION

Sampling and field analysis of samples

Trace detection based on Ion Mobility Spectrometry (IMS)

Portable equipment to screen traces of specific threat materials

Canine trace detection

Applied to a range of risks on small and larger objects

Sampling

Tools to take samples, fume hood, glovebox

Mobile laboratories

Vehicle fully housing equipment for field analysis of samples

[Analysis of organic materials, metals and alloys] Handheld detectors

Chemical colorimetric tests

Raman spectroscopy

Infrared spectroscopy

X-ray fluorescence

Gas detectors for containers

Handheld search

Personal hand tools

Pocket tools

Mechanics tool kit

Telescoping mirror

Devices

Endoscope

Stationary or handed metal detector

Cameras to check the under-side of vehicles

Ultrasonic device

Density meter

Other

Underwater search

ANNEX 2

Indicators

Specific objective: Contribute to equivalent and adequate customs controls through the purchase, maintenance and upgrade of relevant, state-of-the-art and reliable customs control equipment

1.  Equipment available

(a)  Availability at land Border Crossing Points of customs control equipment meeting agreed standards (by type of equipment)

(b)  Availability at sea Border Crossing Points of customs control equipment meeting agreed standards (by type of equipment)

(c)  Availability at air Border Crossing Points of customs control equipment meeting agreed standards (by type of equipment

(d)  Availability at postal Border Crossing Points of customs control equipment meeting agreed standards (by type of equipment)

(e)  Availability at rail Border Crossing Points of customs control equipment meeting agreed standards (by type of equipment)

1a.  Security and Safety

(a)  Degree of compliance with security standards of customs control equipment at all Border Crossing Points, including cybersecurity

(b)  Degree of compliance with safety standards of customs control equipment at all Border Crossing Points [Am. 69]

1b.  Health and Environment

(a)  Degree of compliance with health standards of customs control equipment at all Border Crossing Points

(b)  Degree of compliance with environmental standards of customs control equipment at all Border Crossing Points [Am. 70]

ANNEX 2a

Work programmes [Am. 71]

ANNEX 2b

Exceptional circumstances for excess funding [Am. 72]

(1) OJ C 62, 15.2.2019, p. 67.
(2) This position corresponds to the amendments adopted on 15 January 2019 (Texts adopted, P8_TA(2019)0001).
(3)OJ C 62, 15.2.2019, p. 67.
(4) Position of the European Parliament of 16 April 2019.
(5)Annex of the Annual 2016 Report of the Customs Union Performance available on: https://ec.europa.eu/info/publications/annual-activity-report-2016-taxation-and-customs-union_en.
(6) P8_TA(2018)0075 : The next MFF: Preparing the Parliament’s position on the MFF post-2020
(7)https://www.consilium.europa.eu/media/22301/st09581en17-vf.pdf and http://data.consilium.europa.eu/doc/document/ST-7586-2017-INIT/en/pdf.
(8)Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).
(9)COM(2018)0473.
(10)Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (OJ C 373, 20.12.2013, p. 1).
(11)COM(2016)0605.
(12)COM(2018)0442.
(13)COM(2018)0435.
(14)COM(2018)0473.
(15)Regulation (EU) 2016/1624 of the European Parliament and of the Council of 14 September 2016 on the European Border and Coast Guard and amending Regulation (EU) 2016/399 of the European Parliament and of the Council and repealing Regulation (EC) No 863/2007 of the European Parliament and of the Council, Council Regulation (EC) No 2007/2004 and Council Decision 2005/267/EC (OJ L 251, 16.9.2016, p. 1).
(16)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).
(17)Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making of 13 April 2016 (OJ L 123, 12.5.2016, p. 1).
(18)Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).
(19)Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1).
(20)Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).
(21)Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).
(22)Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).
(23)COM(2018)0473.
(24)COM(2018)0442.
(25)Regulation (EU) No 1294/2013 of the European Parliament and of the Council of 11 December 2013 establishing an action programme for customs in the European Union for the period 2014-2020 (Customs 2020) and repealing Decision No 624/2007/EC (OJ L 347, 20.12.2013, p. 209).
(26)COM(2018)0442.
(27)COM(2018)0442.
(28)Subject to applicable legislative provisions and other recommendations as regards the protection of health and the respect of privacy.


Establishing the 'Customs' programme for cooperation in the field of customs ***I
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Resolution
Consolidated text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council establishing the ‘Customs’ programme for cooperation in the field of customs (COM(2018)0442 – C8-0261/2018 – 2018/0232(COD))
P8_TA(2019)0385A8-0464/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0442),

–  having regard to Article 294(2) and Articles 33, 114 and 207 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0261/2018),

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

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

–  having regard to Rule 59 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 Budgets and the Committee on Budgetary Control (A8-0464/2018),

1.  Adopts its position at first reading hereinafter set out(2);

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) .../… of the European Parliament and of the Council establishing the 'Customs' programme for cooperation in the field of customs

P8_TC1-COD(2018)0232


THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 33, 114 and 207 thereof,

Having regard to the proposal from the European Commission,

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

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

Acting in accordance with the ordinary legislative procedure(4),

Whereas:

(1)  The Customs 2020 programme set up under, established by Regulation (EU) No 1294/2013(5) and its predecessors have contributed significantly contributed to facilitating and enhancing strengthening customs cooperation. Many of the customs activities in the customs area are of a cross-border nature, involving and affecting all Member States, and therefore they cannot be effectively and efficiently delivered by individual implemented by each Member States. A State alone. A Union-wide customs programme at Union level, implemented by the Commission, offers provides Member States with a Union framework at Union level to develop those cooperation such cooperative activities, which is more cost-efficient cost-effective than if each Member State were to set up an individual cooperation frameworks on a framework at bilateral or multilateral basis level. The customs programme also plays an essential role in safeguarding the financial interests of the Union and of the Member States by ensuring the effective collection of customs duties and thus representing an important source of revenue for the Union and national budgets, also by focusing on IT capacity building and increased cooperation in the field of customs. Furthermore, harmonised and standardised controls are necessary in order to track illegal cross-border flows of goods and fight fraud. It is therefore appropriate and in the interest of efficiency to ensure the continuity of Union the Union's financing of activities in the field of customs cooperation by establishing a new programme in the same area field, the Customs programme (‘the Programme’). [Am. 1]

(1a)  For 50 years, the customs union, implemented by national customs authorities, has been a cornerstone of the Union, one of the largest trading blocks in the world. The customs union is a significant example of successful Union integration, and is essential for the proper functioning of the single market for the benefit of both businesses and citizens. The European Parliament, in its resolution adopted on 14 March 2018, entitled ‘The next MFF: Preparing the Parliament’s position on the MFF post-2020’, expressed particular concern regarding customs fraud. A stronger and a more ambitious Union can only be achieved if it is provided with reinforced financial means, continuous support for existing policies, and increased resources. [Am. 2]

(2)  The customs union has evolved considerably over the last fifty 50 years and customs administrations are now successfully perform fulfilling a wide variety of range of border tasks at borders. Acting Working together, they work strive to facilitate ethical and fair trade and reduce red tape bureaucracy, collect revenues revenue for national and Union budgets, and help to protect the public population against terrorist, health, and environmental and threats, as well as other threats. In particular, with the introduction of an EU-wide by introducing a common Risk Management Framework(6) and framework(7) for customs control of movements of risk management at Union level and by controlling large amounts of cash flows to combat money laundering and terrorist financing, the customs assume a front line position authorities take a leading role in the fight against terrorism and organised crime and unfair competition. Given that broad their extensive mandate, the customs is now effectively the lead authority authorities are now in reality the main authorities for the control of goods at the Union’s external borders. Against that backdrop In this context, the Customs programme should not only cover customs cooperation but extend its also provide support to the mission of for the wider customs authorities at large, as set out mission as provided for in Article 3 of Regulation (EU) No 952/2013, i.e. the supervision namely the supervision of the Union's international trade, the implementation of the external aspects of the internal market, of the common commercial trade policy and of the other Union common Union policies having a bearing on an influence on trade, as well asand the security of the supply chain. The legal basis will of this Regulation should therefore cover customs cooperation (Article 33 TFEU), the internal market (Article 114 TFEU) and commercial policy (Article 207 TFEU). [Am. 3]

(3)  In The Programme should, as a general objective, assist the Member States and the Commission by providing a framework for actions that has as objective aims to support the customs union and customs authorities, the Programme should with the long-term objective that all customs administrations in the Union work together as closely as possible; contribute to protecting the financial and economic interests of the Union and its Member States; protecting protect the Union from unfair and illegal trade unlawful commercial practices, while supporting encouraging legitimate business activity; ensuring activities, guaranteeing the security and safety of the Union and its residents;, thereby enhancing consumer protection and facilitating facilitate legitimate trade, so that businesses and citizens can benefit from the full potential of the internal market and of global world trade. [Am. 4]

(3a)  As it has become evident that some of the systems referred to in Article 278 of the Union Customs Code can only be partially deployed by 31 December 2020, which implies that non-electronic systems will continue in use beyond that date, and in the absence of legislative amendments that extend that deadline, companies and customs authorities will be unable to perform their duties and legal obligations as regards customs operations, one of the primary specific objectives of the Programme should be to assist the Member States and the Commission to set up such electronic systems. [Am. 5]

(3b)  Customs management and control is a dynamic policy area, facing new challenges generated by constantly evolving global business models and supply chains, as well as changing consumption patterns and digitalisation, such as e-commerce, including the internet of things, data analytics, artificial intelligence and block chain technology. The Programme should support customs management in such situations and enable the use of innovative solutions. Such challenges further underline the need to enforce cooperation between customs authorities and the need for a uniform interpretation and implementation of the customs legislation. When public finances are under pressure, the volume of world trade increases and fraud and smuggling are a growing concern; the Programme should contribute to tackling those challenges. [Am. 6]

(3c)  In order to ensure maximum efficiency and to avoid overlaps, the Commission should coordinate the implementation of the Programme with related Union programmes and funds. This includes in particular the Fiscalis Programme, the EU anti-fraud Programme and Single Market Programme, as well as with the Internal Security Fund and Integrated Border Management Fund, the Reform Support Programme, the Digital Europe Programme, the Connecting Europe Facility and the Council Decision on the system of Own Resources of the European Union, as well as the implementing regulations and measures. [Am. 7]

(3d)  With regard to the potential withdrawal of the United Kingdom from the Union, the financial envelope of the Programme does not take into account the costs resulting from the signing of the withdrawal agreement and the potential future relationship between the United Kingdom and the Union. The signing of that agreement, the disengagement of the United Kingdom from all existing customs systems and cooperation, and the lapsing of its legal obligations in this area, could lead to additional costs, which cannot be precisely estimated at the time of establishment of the Programme. The Commission should therefore consider reserving sufficient resources to prepare for those potential costs. However, those costs should not be covered by the envelope of the Programme, as the budget provided for in the Programme will only be sufficient to cover the costs which could realistically be foreseen at the time of establishment of the Programme. [Am. 8]

(4)  This Regulation lays down a financial envelope for the Programme, which is to constitute the prime reference amount, within the meaning of point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management(8), for the European Parliament and the Council during the annual budgetary procedure.

(5)  In order to support the process of accession and association by of third countries, the Programme should be open to the participation of acceding and candidate countries as well as potential candidates and partner countries of the European Neighbourhood Policy, if certain all conditions are fulfilled met. It may also be open to other third countries, in accordance with under the conditions laid down provided for in specific agreements between the Union and those the countries covering their concerned on the participation to of those countries in any Union programme, if that participation is of interest to the Union and if it has a positive impact on the internal market without affecting consumer protection. [Am. 9]

(6)  The Programme should be covered by Regulation (EU, Euratom) [2018/XXX] 2018/1046 of the European Parliament and of the Council(9) (hereinafter referred to as the ‘Financial Regulation’) applies to this Programme. It lays down. The Financial Regulation provides for the rules on for the implementation of the Union budget, including the rules on grants, prizes, procurement and reimbursement of external experts. [Am. 10]

(7)  The actions which applied under the Customs 2020 programme and have proven to be adequate and should therefore be maintained, while others that have proven to be inadequate should be terminated. In order to provide more greater simplicity and flexibility in the execution of the Programme and thereby better deliver on its objectives, the actions should be defined only in terms of overall categories with a list of illustrative examples of concrete activities. Through cooperation and capacity building, the Customs programme Programme should also promote and support the uptake and leverage of innovation to further improve the capabilities to deliver on the core priorities of customs. [Am. 11]

(8)  Regulation [2018/XXX] establishes, as part of the Integrated Border Management Fund, a Customs Control Equipment Instrument(10) (‘CCE Instrument’). In order to preserve the coherence and horizontal coordination of all cooperation actions relating to customs and customs control equipment, it is appropriate to implement all of them under one single legal act and set of rules, that act and those rules being this Regulation. Therefore, the CCE Instrument should only support the purchase, maintenance and upgrade of the eligible equipment while this Programme should support all other related actions, such as cooperation actions for the assessment of equipment needs or, where appropriate, training in relation to the equipment purchased. [Am. 12]

(9)  Exchanges of customs and related information are key for a proper functioning of customs and they extend well beyond the exchanges within the customs union. Adaptations or extensions of European electronic systems to third countries not associated to the Programme and international organisations could indeed have an interest for the Union or the Member States. Therefore, when duly justified by such an interest, adaptations of or extensions to European electronic systems for cooperation with third countries and international organisations should be eligible costs under the Programme.

(10)  Considering the importance of globalisation, the Programme should continue to provide for the possibility of involving external experts within the meaning of Article 238 of the Financial Regulation. Those external experts should mainly be representatives of governmental authorities, including from non-associated third countries, as well as academics and representatives of international organisations, economic operators or civil society. [Am. 13]

(11)  In line with the Commission's commitment to ensure the coherence and simplification of funding programmes, set out in its Communication of 19 October 2010 entitled 'The EU Budget Review(11)', resources should be shared with other Union funding instruments if the envisaged actions under the Programme pursue objectives that are common to various funding instruments, taking into account that the amount allocated to the Programme is calculated without taking into account that there could be unforeseen expenses, excluding however double financing. Actions under the Programme should ensure coherence in the use of the Union's resources supporting the customs union and customs authorities. [Am. 14]

(11a)   The purchase of software that is needed to perform tight border controls should be eligible for funding under the Programme. Furthermore, the purchase of software that can be used in all Member States should be encouraged in order to facilitate exchange of data. [Am. 15]

(12)  Information Technology (IT) capacity building actions are set to attract the greatest a greater part of the budget under the Programme. Specific provisions should describe, respectively, the common and national components of the European electronic systems. Moreover, the scope of actions and the responsibilities of the Commission and the Member States should be clearly defined. In order to ensure coherence and coordination of IT capacity-building actions, the Programme should provide that the Commission develops and updates a Multiannual Strategic Customs Plan ('MASP-C'), with the aim of creating an electronic environment which ensures consistency and interoperability of the customs systems in the Union. [Am. 16]

(13)  Decision No 70/2008/EC of the European Parliament and of the Council(12) requests the Commission to draw up a Multi-Annual Strategic Plan for Customs for creating a coherent and interoperable electronic customs environment for the Union. The development and operation of the electronic systems included in the Multi-Annual Strategic Plan are mainly funded by the Programme. In order to ensure coherence and coordination between the Programme and the Multi-Annual Strategic Plan, the relevant provisions of the Decision should be included in this Regulation. As all relevant provisions of Decision No 70/2008/EC are now taken over either by Regulation (EU) No 952/2013 or by this Regulation, Decision No 70/2008/EC should be repealed.

(14)  This Regulation The Commission should be implemented by means of adopt work programmes for the purposes of this Regulation. In view of the mid- to long-term nature of the objectives pursued and building on experience gained over time, work programmes should be able to cover several years. The shift from annual to multiannual work programmes will reduce the administrative burden for both the Commission and Member States. [Am. 62]

(14a)  In line with the findings contained on the two special reports adopted recently by the European Court of Auditors in the field of customs, namely special report No 19/2017 of 5 December 2017 entitled ‘Import procedures: shortcomings in the legal framework and an ineffective implementation impact the financial interests of the EU’, and special report No 26/2018 of 10 October 2018 entitled ‘A series of delays in Customs IT systems: what went wrong?’, the actions undertaken within the ‘Customs’ programme for cooperation in the field of customs should aim at tackling the shortcomings signalled. [Am. 17]

(14b)  On 4 October 2018 the European Parliament adopted a resolution on the fight against customs fraud and the protection of the Union’s own resources. The conclusions contained in that resolution should be taken into account during the actions implemented in the framework of the Programme. [Am. 18]

(15)  In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred to the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council(13). [Am. 63]

(16)  Pursuant to paragraph 22 and 23 of the Inter-institutional agreement for Better Law-Making of 13 April 2016(14), there is a need to evaluate this programme on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, can include measurable indicators, as a basis for evaluating the effects of the Instrument on the ground.

(17)  In order to respond appropriately to changes in policy priorities, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending the list of indicators to measure the achievement of the specific objectives of the Programme, in respect of establishing and updating the Multi‑Annual Strategic Plan for the customs field and in respect of the establishment of the multiannual work programmes. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016(15). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. [Am. 64]

(18)  In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council(16), Council Regulation (Euratom, EC) No 2988/95(17), Council Regulation (Euratom, EC) No 2185/96(18) and Council Regulation (EU) 2017/1939(19), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union, as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council(20). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(19)  Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding.

(20)  The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver the best results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation. [Am. 19]

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

(22)  This Regulation replaces Regulation (EU) No 1294/2013 of the European Parliament and of the Council, which should therefore be repealed,

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter

1.  This Regulation establishes the 'Customs' programme for cooperation in the field of customs ('Programme').

2.  It lays down the objectives of the Programme, the budget for the period 2021 – 2027, the forms of Union funding and the rules for providing such funding.

Article 2

Definitions

For the purposes of this Regulation, the following definitions shall apply:

(1)  'customs authorities' means the authorities defined in point (1) of Article 5 of Regulation (EU) No 952/2013;

(2)  'European electronic systems' means electronic systems necessary for the customs union and for the execution of the mission of customs authorities

(3)  'third country' means a country that is not member of the Union.

Article 3

Programme objectives

1.  With a view to achieving the long-term aim that all customs administrations in the Union work together as closely as possible, and in order to guarantee the security and safety of the Member States and to protect the Union against fraud, unfair and unlawful commercial practices, and at the same time, promote legitimate business activities and a high level of consumer protection, the general objective of the Programme has the general objective is to support the customs union and the customs authorities to protect in protecting the financial and economic interests of the Union and its Member States, to ensure security and safety within the Union and to protect the Union from unfair and illegal trade, while facilitating legitimate business activity. [Am. 20]

2.  The Programme has the following specific objective objectives:

(1)   to support the preparation and uniform implementation of customs legislation and policy as well as customs cooperation;

(2)   and administrative to assist with IT capacity building, including human competency and the development and operation of European which consists in developing, maintaining and operating the electronic systems as referred to in Article 278 of the Union Customs Code, and enabling a smooth transition to a paperless environment and trade in line with Article 12 of this Regulation.

(3)  to finance joint actions, which consist in cooperation mechanisms enabling officials to carry out joint operational activities under their core responsibilities, share experience in the customs field and join efforts to deliver on customs policy;

(4)  to enhance human competencies, supporting the professional skills of customs officials and empowering them to fulfil their role on a uniform basis;

(5)  to support innovation in the area of customs policy.[Am. 21]

2a.  The Programme shall be consistent with and exploit any synergies with other Union action programmes and funds with similar objectives in related fields. [Am. 22]

2b.  The implementation of the Programme shall respect the principles of transparency, proportionality, equal treatment and non-discrimination. [Am. 23]

2c.  The Programme shall also support the continuous evaluation and monitoring of the cooperation between customs authorities with a view to identifying weaknesses and possible improvements. [Am. 24]

Article 4

Budget

1.  The financial envelope for the implementation of the Programme for the period 2021 – 2027 shall be EUR 842 844 000 in 2018 prices (EUR  950 000 000 in current prices). [Am. 25]

2.  When necessary and duly justified, the amount referred to in paragraph 1 may also cover expenses for preparation, monitoring, control, audit, evaluation and other activities for managing the Programme and evaluating its performance and the achievement of its objectives. It may moreover cover expenses relating to studies, meetings of experts, information and communication actions by the Commission addressed to Member States and economic operators, in so far as they are related to the objectives of the Programme, as well as expenses linked to information technology networks focusing on information processing and exchange, including corporate information technology tools and other technical and administrative assistance needed in connection with the management of the Programme, in so far as such activities are required for the achievement of the objectives of the Programme. [Am. 26]

2a.  The Programme shall not be used to cover costs relating to the potential withdrawal of the United Kingdom from the Union. The Commission shall reserve upon its own assessment resources in order to cover the costs relating to the disengagement of the United Kingdom from all Union customs systems and cooperation, and the lapsing of its legal obligations in this area.

Before reserving those resources, the Commission shall make an estimate of the potential costs, and shall inform the European Parliament once data relevant for that estimate become available. [Am. 27]

Article 5

Third countries associated to the Programme

The Programme shall be open to the following third countries:

(a)  acceding countries, candidate countries and potential candidates, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and Association Council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and those countries;

(b)  countries covered by the European Neighbourhood Policy, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and association Council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and those countries, provided that those countries have reached a sufficient level of approximation of the relevant legislation and administrative methods to those of the Union;

(c)  other third countries, in accordance with under the conditions laid down in a specific agreement covering on the participation of the a third country to in any Union programme, provided that the agreement: [Am. 28]

–  ensures a fair balance as regards the contributions and benefits of the third country participating in the Union programmes;

–  lays down establishes the conditions of for participation in the programmes, including the calculation of financial contributions to individual programmes and their administrative costs. These contributions shall constitute assigned revenues revenue in accordance with Article [21(5)] of Regulation [2018/XXX] [the new Financial Regulation]; [Am. 29]

–  does not confer to the third country a decisional power on the Programme;

–  guarantees the rights of the Union to ensure sound financial management and to protect its financial interests.

Article 6

Implementation and forms of EU funding

1.  The Programme shall be implemented in direct management in accordance with the Financial Regulation.

2.  The Programme may provide funding in any of the forms laid down in the Financial Regulation, in particular grants, prizes, procurement and reimbursement of travel and subsistence expenses incurred by external experts.

CHAPTER II

ELIGIBILITY

Article 7

Eligible actions

1.  Only actions implementing the objectives referred to in Article 3 shall be eligible for funding.

2.  Actions complementing or supporting the actions implementing the objectives referred to in Article 3 of Regulation (EU) [2018/XXX] [CCE instrument] and/or complementing or supporting the actions implementing the objectives referred to in Article 2 of Regulation (EU) [2018/XXX] [Anti-Fraud Programme] shall also be eligible for funding under this Programme. [Am. 30]

3.  Actions referred to in paragraphs 1 and 2 shall include the following:

(a)  meetings and similar ad-hoc events;

(b)  project-based structured collaboration, such as collaborative IT development by a group of Member States; [Am. 31

(c)  IT capacity building actions, in particular the development and operation of European electronic systems;

(d)  human competency and capacity building actions, including training and exchange of best practices; [Am. 32]

(e)  support and other actions, including:

(1)  studies;

(2)  innovation activities, in particular proof-of-concepts, pilots and prototyping initiatives;

(3)  jointly developed communication actions;

(3a)   monitoring activities; [Am. 33]

(4)  any other action provided for in the work programmes referred to in Article 13, which is necessary for attaining or in support of the objectives set out in Article 3.

Possible forms of actions referred to in points (a), (b) and (d) are presented in a non-exhaustive list in Annex 1.

4.  Actions consisting in the development, deployment, maintenance and operation of adaptations or extensions to the common components of the European electronic systems for cooperation with third countries not associated to the Programme or international organisations shall be eligible for funding when they are of interest to the Union. The Commission shall put in place the necessary administrative arrangements, which may provide for a financial contribution from the third parties concerned to these actions. [Am. 34]

5.  Where an IT capacity building action referred to in point (c) of paragraph 3 concerns the development and operation of a European electronic system, only the costs related to the responsibilities entrusted to the Commission pursuant to Article 11(2) shall be eligible for funding under the Programme. Member States shall bear the costs related to the responsibilities entrusted to them pursuant to Article 11(3).

Article 8

External experts

1.  Wherever beneficial for the achievement of the actions implementing the objectives referred to in Article 3, representatives of governmental authorities, including those from third countries not associated to the programme Programme pursuant to Article 5, academics and representatives of international and other relevant organisations, of economic operators and organisations representing economic operators and of civil society may take part as external experts to actions organised under the Programme. [Am. 35]

2.  Costs incurred by the external experts referred to in paragraph 1 shall be eligible for reimbursement under the Programme in accordance with the provisions of Article 238 of the Financial Regulation.

3.  The External experts shall be selected by the Commission based on the basis of their skills competence, experience and in the field of application of this Regulation and their relevant knowledge relevant to of the specific action being taken, avoiding any potential conflict of interest. The selection shall strike a balance between business representatives and other civil society experts, as well as take into account the principle of gender equality. The list of external experts shall be regularly updated and made accessible to the public. [Am. 36]

CHAPTER III

GRANTS

Article 9

Award, complementarity and combined funding

1.  Grants under the Programme shall be awarded and managed in accordance with Title VIII of the Financial Regulation, and specifically with the principles of sound financial management, transparency, proportionality, non-discrimination and equal treatment. [Am. 37]

2.  An action that has received a contribution from another Union programme may also receive a contribution under the Programme, provided that the contribution do not cover the same costs. The rules of each contributing Union programme shall apply to its respective contribution to the action. The cumulative funding shall not exceed the total eligible costs of the action and the support from the different Union programmes may be calculated on a pro-rata basis in accordance with the documents setting out the conditions for support.

3.  In accordance with Article 198(f) of the Financial Regulation, the grants shall be awarded without a call for proposals where the eligible entities are customs authorities of the Member States and of the third countries associated to the Programme as referred to in Article 5 of this Regulation, provided that the conditions set out in that Article are met.

Article 10

Co-financing rate

1.  By way of derogation to from Article 190 of the Financial Regulation, the Programme may finance up to 100 % of the eligible costs of an action according to the relevance of the action and the estimated impact. [Am. 38]

2.  The applicable co-financing rate where actions require the awarding of grants shall be set out in the multiannual work programmes referred to in Article 13.

CHAPTER IV

SPECIFIC PROVISIONS FOR IT CAPACITY BUILDING ACTIONS

Article 11

Responsibilities

1.  The Commission and the Member States shall ensure jointly ensure the development and operation of the European electronic systems listed in the Multi-Annual Strategic Plan for Customs referred to in Article 12, including the its design, specification, conformance testing, deployment, maintenance, evolution, modernisation, security, quality assurance and quality control, of the European electronic systems listed in the Multi-Annual Strategic Plan for Customs referred to in Article 12. [Am. 39]

2.  The Commission shall, in particular, ensure the following:

(a)  the development and operation of common components as established under the Multi-Annual Strategic Plan for Customs provided for in Article 12;

(b)  the overall coordination of the development and operation of European electronic systems with a view to their operability, cyber-resilience, inter­connectivity and continuous improvement and their synchronised implementation; [Am. 40]

(c)  the coordination at Union level of European electronic systems with a view to their promotion and implementation at national level;

(d)  the coordination of the development and operation of European electronic systems as regards their interactions with third parties, excluding actions designed to meet national requirements;

(e)  the coordination of European electronic systems with other relevant actions relating to e-Government at Union level.

(ea)   an efficient and swift communication with and between Member States with a view to streamlining the governance of the Union’s electronic systems; [Am. 41]

(eb)   a timely and transparent communication with the stakeholders concerned with the implementation of IT systems at Union and Member States level, in particular about delays in the implementation of and spending relating to Union and national components. [Am. 42]

3.  The Member States shall, in particular, ensure the following:

(a)  the development and operation of national components as established under the Multi-annual Strategic Plan for Customs provided for in Article 12;

(b)  the coordination of the development and operation of the national components of European electronic systems at national level;

(c)  the coordination of European electronic systems with other relevant actions relating to e-Government at national level;

(d)  the regular provision to providing the Commission of with regular information regarding on the measures taken to enable their respective the authorities or economic operators concerned to make full and effective use of the European electronic systems; [Am. 43]

(e)  the implementation at national level of European electronic systems.

Article 12

Multi-Annual Strategic Plan for Customs (MASP-C)

1.  The Commission shall draw up and keep updated adopt delegated acts in accordance with Article 17, supplementing this Regulation by establishing and updating a Multi-Annual Strategic Plan for the customs field listing all the tasks relevant for the development and operation of European electronic systems and classifying each system, or part thereof, of a system as: [Am. 65]

(a)  a common component: a component of the European electronic systems developed at Union level, which is available for all Member States or identified as common by the Commission as being common for reasons of efficiency, security and of rationalisation and reliability; [Am. 45]

(b)  a national component: a component of the European electronic systems developed at national level, which is available in the Member State that created such a component or contributed to its joint creation, for instance as part of a collaborative IT development project by a group of Member States [Am. 46];

(c)  or a combination of both.

2.  The Multi-Annual Strategic Plan for Customs shall also include innovation and pilot actions as well as the supporting methodologies and tools related to the European electronic systems.

3.  Member States shall notify the Commission of the completion of each task allocated to them under the Multi-Annual Strategic Plan for Customs referred to in paragraph 1. They shall also regularly report to the Commission on progress with their tasks and where applicable about foreseeable delays in their implementation. [Am. 47]

4.  No later than 31 March of each year, the Member States shall submit to the Commission annual progress reports on the implementation of the Multi-Annual Strategic Plan for Customs referred to in paragraph 1 covering the period 1 January to 31 December of the preceding year. Those annual reports shall be based on a pre-established format.

5.  No later than 31 October of each year, the Commission shall, on the basis of the annual reports referred to in paragraph 4, establish a consolidated report assessing the progress made by Member States and the Commission in the implementation of the plan referred to in paragraph 1, including information on necessary adaptations of or delays with the plan, and make that report public. [Am. 48]

CHAPTER V

PROGRAMMING, MONITORING, EVALUATION AND CONTROL

Article 13

Work programme

1.  The Programme shall be implemented by Multiannual work programmes as referred to in Article 108 110 of the Financial Regulation shall be adopted for the purposes of the Programme. The multiannual work programmes shall in particular set out the objectives to be pursued, the expected results, the method of implementation and the total amount of the financing plan. They shall also set out in detail a description of the actions to be financed, an indication of the amount allocated to each action and an indicative implementation timetable. [Am. 66]

2.  The Commission shall adopt delegated acts in accordance with Article 17, supplementing this Regulation by establishing the multiannual work programmes shall be adopted by the Commission by means of implementing acts. Those implementing acts shall be adopted in accordance with the procedure referred to in Article 18(2). [Am. 67]

2a.   The multiannual work programmes shall build on lessons learned from previous programmes. [Am. 51]

Article 14

Monitoring and reporting

1.  Indicators to report on progress In compliance with its reporting requirements pursuant to point (h) of Article 41(3) of the Financial Regulation, the Commission shall present to the European Parliament and the Council information on the performance of the Programme towards the achievement of the specific objectives set out in Article 3 are set in Annex 2. Reporting on performance shall include information on both progress and shortfalls. [Am. 52]

2.  Indicators for reporting on the performance of the Programme towards the achievement of the specific objectives provided for in Article 3 are set out in Annex 2. To ensure effective assessment of progress of the Programme towards the achievement of its objectives, the Commission is empowered to adopt delegated acts in accordance with Article 17 to amend Annex 2 to review or complement the indicators where considered necessary and to supplement this Regulation with provisions on the establishment of a monitoring and evaluation framework in order to provide the European Parliament and the Council with updated qualitative as well as quantitative information on the performance of the Programme. [Am. 53]

3.  The performance reporting system shall ensure that the data for the monitoring programme of the implementation and the results of the Programme are comparable and complete as well as collected efficiently, effectively, and in a in an efficient, effective and timely manner. To that this end, proportionate and relevant reporting requirements shall be imposed on the recipients of Union funds. The Commission shall provide the European Parliament and the Council with reliable information on the quality of the performance data used. [Am. 54]

Article 15

Evaluation

1.  Evaluations shall be carried out in a timely manner to feed into the decision-making process.

2.  The interim evaluation of the Programme shall be performed once there is carried out as soon as sufficient information available about the on its implementation of the Programme is available, but no later than four three years after the start of the programme implementation. [Am. 55]

2a.   The interim evaluation shall present findings necessary to make a decision about a follow-up to the Programme beyond 2027 and its objectives. [Am. 56]

3.  At the end of the implementation of the Programme, but no later than four three years after the end of the period specified referred to in Article 1, the Commission shall carry out a final evaluation of the Programme shall be carried out by the Commission. [Am. 57]

4.  The Commission shall present and communicate the conclusions of the evaluations, accompanied by its observations and lessons learned, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. [Am. 58]

Article 16

Audits and investigations

Where a third country participates in the programme by a decision under an international agreement or by virtue of any other legal instrument, the third country shall grant the necessary rights and access required for the authorizing officer responsible, the European Anti-Fraud Office (OLAF), the European Court of Auditors and the European Public Prosecutor's Office (EPPO) to comprehensively exert their respective competences. In the case of OLAF and the EPPO, such rights shall include the right to carry out investigations, including on-the-spot checks and inspections, provided for in Regulation (EU, Euratom) No 883/2013concerning investigations conducted by the European Anti-Fraud Office (OLAF) and in Council Regulation (EU) 2017/1939(21). [Am. 59]

CHAPTER VI

EXERCISE OF THE DELEGATION AND COMMITTEE PROCEDURE

Article 17

Exercise of the delegation

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

2.  The power to adopt delegated acts referred to in Article Articles 12(1), 13(2) and 14(2) shall be conferred on the Commission until 31 December 2028. [Am. 68]

3.  The delegation of power referred to in Article Articles 12(1), 13(2) and 14(2) 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 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. 69]

4.  Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016.

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

6.  A delegated act adopted pursuant to Article Articles 12(1), 13(2) and 14(2) shall enter into force if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. [Am. 70]

Article 18

Committee procedure

1.  The Commission shall be assisted by a committee referred to as the "Customs Programme Committee". That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2.  Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. [Am. 71]

CHAPTER VII

TRANSITIONAL AND FINAL PROVISIONS

Article 19

Information, communication and publicity

1.  The recipients of Union funding shall acknowledge the origin and ensure the maximum visibility of the Union funding (in particular when promoting the actions and their results) by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public. [Am. 60]

2.  The Commission shall implement information and communication actions relating to the Programme, and its on the Programme, on the actions financed under the Programme and on the results achieved by those financed actions. The financial resources allocated to the Programme shall also contribute to the corporate institutional communication of the Union's political priorities of the Union, as in so far as they are related linked to the objectives referred to set out in Article 3. [Am. 61]

Article 20

Repeal

1.  Regulation (EU) No 1294/2013 is repealed with effect from 1 January 2021.

2.  Decision No 70/2008/EC is repealed with effect from 1 January 2021.

Article 21

Transitional provisions

1.  This Regulation shall not affect the continuation or modification of the actions concerned, until their closure, under Regulation (EU) No 1294/2013, which shall continue to apply to the actions concerned until their closure.

2.  The financial envelope for the Programme may also cover technical and administrative assistance expenses necessary to ensure the transition between the Programme and the measures adopted under its predecessor, the Regulation (EU) No 1294/2013.

3.  If necessary, appropriations may be entered in the budget beyond 2027 to cover the expenses provided for in Article 4(2), to enable the management of actions not completed by 31 December 2027.

Article 22

Entry into force

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

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

Done at ...,

For the European Parliament For the Council

The President The President

ANNEX 1

Non-exhaustive list of possible forms of actions

referred to in points (a), (b) and (d) of the first sub-paragraph of Article 7(3)

Actions referred to in points (a), (b) and (d) of the first sub-paragraph of Article 7(3) may take the forms, among others, of:

(a)  As regards meetings and similar ad-hoc events:

–  Seminar and workshop, generally attended by all countries and at which presentations are made and participants engage in intensive discussion and activity on a particular subject;

–  Working visit, organised to enable officials to acquire or increase their expertise or knowledge in customs matters;

(b)  As regards project-based structured collaboration:

–  Project group, generally composed of a limited number of countries, operational during a limited period of time to pursue a predefined objective with a precisely defined outcome, including coordination or benchmarking;

–  Task force, namely structured forms of cooperation, with a non-permanent or permanent character, pooling expertise to perform tasks in specific domains or carry out operational activities, possibly with the support of online collaboration services, administrative assistance and infrastructure and equipment facilities;

–  Monitoring activity, carried out by joint teams made up of Commission officials and officials of the eligible authorities to analyse customs practices, identify any difficulties in implementing rules and, where appropriate, make suggestions for the adaptation of Union rules and working methods;

(c)  As regards human competency and capacity building actions:

–  Common training or development of eLearning to support the build-up of the necessary professional skills and knowledge relating to customs;

–  Technical support, aimed at improving administrative procedures, enhancing administrative capacity and improving customs authorities’ functioning and operations by initiating and sharing good practices.

ANNEX 2

Indicators

Specific objective: Support the preparation and uniform implementation of customs legislation and policy as well as customs cooperation and administrative capacity building, including human competency and the development and operation of the European electronic systems for customs.

1.  Capacity Building (administrative, human and IT capacity):

1.  Union Law and Policy Application and Implementation Index (Number of actions under the Programme organised in this area and recommendations issued following those actions)

2.  Learning Index (Learning modules used; number of officials trained; quality score by participants)

3.  Availability of European electronic systems (in time percentage terms)

4.  Availability of the Common Communication Network (in time percentage terms)

5.  Use of key European electronic systems aimed at increasing interconnectivity and moving to a paper-free Customs Union (number of messages exchanged and consultations carried out)

6.  UCC completion rate (percentage of milestones reached for implementing UCC systems)

2.  Knowledge sharing and networking:

1.  Collaboration Robustness Index (degree of networking generated, number of face-to-face meetings, number of on-line collaboration groups)

2.  Best Practices and Guideline Index (number of actions under the Programme organised in this area; percentage of participants that made use of a working practice/guideline developed with the support of the Programme)

(1)OJ C 62, 15.2.2019, p. 45.
(2)This position replaces the amendments adopted on 15 January 2019 (Texts adopted, P8_TA(2019)0008).
(3)OJ C 62, 15.2.2019, p. 45.
(4) Position of the European Parliament of 16 April 2019.
(5)Regulation (EU) No 1294/2013 of the European Parliament and of the Council of 11 December 2013 establishing an action programme for customs in the European Union for the period 2014-2020 (Customs 2020) and repealing Decision No 624/2007/EC, OJ L 347, 20.12.2013, p. 209.
(6)https://ec.europa.eu/taxation_customs/general-information-customs/customs-risk-management/measures-customs-risk-management-framework-crmf_en
(7) https://ec.europa.eu/taxation_customs/general-information-customs/customs-risk-management/measures-customs-risk-management-framework-crmf_en
(8)OJ C 373, 20.12.2013, p. 1
(9)COM(2016)0605 finalRegulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).
(10)Proposal for a Regulation of the European Parliament and of the Council establishing, as part of the Integrated Border Management Fund, the instrument for financial support for customs control equipment
(11)COM(2010)0700
(12)Decision No 70/2008/EC of the European Parliament and of the Council of 15 January 2008 on a paperless environment for customs and trade (OJ L 23, 26.1.2008, p. 21).
(13)Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13)
(14)Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making of 13 April 2016; OJ L 123, 12.5.2016, p. 1.
(15)OJ L 123, 12.5.2016, p. 1.
(16)Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).
(17)Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1).
(18)Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).
(19)Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).
(20)Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).
(21)Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1.)


Marketing and use of explosives precursors ***I
PDF 123kWORD 50k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council on the marketing and use of explosives precursors, amending Annex XVII to Regulation (EC) No 1907/2006 and repealing Regulation (EU) No 98/2013 on the marketing and use of explosives precursors (COM(2018)0209 – C8-0151/2018 – 2018/0103(COD))
P8_TA(2019)0386A8-0473/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0209),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0151/2018),

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

–  having regard to the opinion of the European Economic and Social Committee of 11 July 2018(1),

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 14 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs (A8-0473/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council on the marketing and use of explosives precursors, amending Regulation (EC) No 1907/2006 and repealing Regulation (EU) No 98/2013

P8_TC1-COD(2018)0103


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/1148.)

(1) OJ C 367, 10.10.2018, p. 35.


Common framework for European statistics relating to persons and households ***I
PDF 126kWORD 55k
Resolution
Text
Annex
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council establishing a common framework for European statistics relating to persons and households, based on data at individual level collected from samples (COM(2016)0551 – C8-0345/2016 – 2016/0264(COD))
P8_TA(2019)0387A8-0247/2017

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0551),

–  having regard to Article 294(2) and Article 338(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0345/2016),

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

–  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 Swedish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 29 March 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Employment and Social Affairs (A8-0247/2017),

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

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council establishing a common framework for European statistics relating to persons and households, based on data at individual level collected from samples, amending Regulations (EC) No 808/2004, (EC) No 452/2008 and (EC) No 1338/2008 of the European Parliament and of the Council, and repealing Regulation (EC) No 1177/2003 of the European Parliament and of the Council and Council Regulation (EC) No 577/98

P8_TC1-COD(2016)0264


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/1700.)

ANNEX TO THE LEGISLATIVE RESOLUTION

Statement by the Commission with respect to Article 14(2) concerning the cooperation with the Union Agencies

To ensure coherence and comparability of European social statistics, the Commission will reinforce cooperation with Union Agencies in line with Article 14(2) and the related recitals (12 and 33). This will include reinforced cooperation on statistical techniques, methodology, quality, new instruments and data sources.


Interoperability between EU information systems in the field of borders and visa ***I
PDF 125kWORD 52k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the amended proposal for a regulation of the European Parliament and of the Council on establishing a framework for interoperability between EU information systems (borders and visa) and amending Council Decision 2004/512/EC, Regulation (EC) No 767/2008, Council Decision 2008/633/JHA, Regulation (EU) 2016/399, Regulation (EU) 2017/2226, Regulation (EU) 2018/XX [the ETIAS Regulation], Regulation (EU) 2018/XX [the Regulation on SIS in the field of border checks] and Regulation (EU) 2018/XX [the eu-LISA Regulation] (COM(2018)0478 – C8-0294/2018 – 2017/0351(COD))
P8_TA(2019)0388A8-0347/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2017)0793) and the amended proposal (COM(2018)0478),

–  having regard to Article 294(2) and Article 16(2), Article 74 and points (a), (b), (d) and (e) of Article 77(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0294/2018),

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

–  having regard to the opinion of the European Economic and Social Committee of 23 May 2018(1),

–  after consulting the Committee of the Regions,

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 13 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rule 59 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 Budgets (A8-0347/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council on establishing a framework for interoperability between EU information systems in the field of borders and visa and amending Regulations (EC) No 767/2008, (EU) 2016/399, (EU) 2017/2226, (EU) 2018/1240, (EU) 2018/1726 and (EU) 2018/1861 of the European Parliament and of the Council and Council Decisions 2004/512/EC and 2008/633/JHA

P8_TC1-COD(2017)0351


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/817.)

(1)OJ C 283, 10.8.2018, p. 48.


Interoperability between EU information systems in the field of police and judicial cooperation, asylum and migration ***I
PDF 124kWORD 46k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the amended proposal for a regulation of the European Parliament and of the Council on establishing a framework for interoperability between EU information systems (police and judicial cooperation, asylum and migration) and amending [Regulation (EU) 2018/XX [the Eurodac Regulation]], Regulation (EU) 2018/XX [the Regulation on SIS in the field of law enforcement], Regulation (EU) 2018/XX [the ECRIS-TCN Regulation] and Regulation (EU) 2018/XX [the eu-LISA Regulation] (COM(2018)0480 – C8-0293/2018 – 2017/0352(COD))
P8_TA(2019)0389A8-0348/2018

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2017)0794) and the amended proposal (COM(2018)0480),

–  having regard to Article 294(2) and Article 16(2), Article 74, point (e) of Article 78(2), point (c) of Article 79(2), point (d) of Article 82(1), Article 85(1), point (a) of Article 87(2) and Article 88(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0293/2018),

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

–  having regard to the opinion of the European Economic and Social Committee of 23 May 2018(1),

–  after consulting the Committee of the Regions,

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 13 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rule 59 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 Budgets (A8-0348/2018),

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council on establishing a framework for interoperability between EU information systems in the field of police and judicial cooperation, asylum and migration and amending Regulations (EU) 2018/1726, (EU) 2018/1862 and (EU) 2019/816

P8_TC1-COD(2017)0352


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/818.)

(1)OJ C 283, 10.8.2018, p. 48.


European network of immigration liaison officers ***I
PDF 123kWORD 44k
Resolution
Text
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council on the creation of a European network of immigration liaison officers (recast) (COM(2018)0303 – C8-0184/2018 – 2018/0153(COD))
P8_TA(2019)0390A8-0040/2019

(Ordinary legislative procedure – recast)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0303),

–  having regard to Article 294(2) and Articles 74 and 79(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0184/2018),

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

–  having regard to the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts(1),

–  having regard to the letter of 28 November 2018 sent by the Committee on Legal Affairs to the Committee on Civil Liberties Justice and Home Affairs in accordance with Rule 104(3) of its Rules of Procedure,

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 27 February 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs (A8-0040/2019),

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

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

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council on the creation of a European network of immigration liaison officers (recast)

P8_TC1-COD(2018)0153


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/1240.)

(1) OJ C 77, 28.3.2002, p. 1.


Type-approval requirements for motor vehicles as regards general safety ***I
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Resolution
Text
Annex
European Parliament legislative resolution of 16 April 2019 on the proposal for a regulation of the European Parliament and of the Council on type-approval requirements for motor vehicles and their trailers, and systems, components and separate technical units intended for such vehicles, as regards their general safety and the protection of vehicle occupants and vulnerable road users, amending Regulation (EU) 2018/.... and repealing Regulations (EC) No 78/2009, (EC) No 79/2009 and (EC) No 661/2009 (COM(2018)0286 – C8-0194/2018 – 2018/0145(COD))
P8_TA(2019)0391A8-0151/2019

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2018)0286),

–  having regard to Article 294(2) and Article114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0194/2018),

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

–  having regard to the opinion of the European Economic and Social Committee of 19 September 2018(1),

–  after consulting the Committee of the Regions,

–  having regard to the provisional agreement approved by the committee responsible under Rule 69f(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 29 March 2019 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rule 59 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 the Environment, Public Health and Food Safety and the Committee on Transport and Tourism (A8-0151/2019),

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

2.  Takes note of the statement by the Commission annexed to this resolution, which will be published in the L series of the Official Journal of the European Union together with the final legislative act;

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

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

Position of the European Parliament adopted at first reading on 16 April 2019 with a view to the adoption of Regulation (EU) 2019/… of the European Parliament and of the Council on type-approval requirements for motor vehicles and their trailers, and systems, components and separate technical units intended for such vehicles, as regards their general safety and the protection of vehicle occupants and vulnerable road users, amending Regulation (EU) 2018/858 of the European Parliament and of the Council and repealing Regulations (EC) No 78/2009, (EC) No 79/2009 and (EC) No 661/2009 of the European Parliament and of the Council and Commission Regulations (EC) No 631/2009, (EU) No 406/2010, (EU) No 672/2010, (EU) No 1003/2010, (EU) No 1005/2010, (EU) No 1008/2010, (EU) No 1009/2010, (EU) No 19/2011, (EU) No 109/2011, (EU) No 458/2011, (EU) No 65/2012, (EU) No 130/2012, (EU) No 347/2012, (EU) No 351/2012, (EU) No 1230/2012 and (EU) 2015/166

P8_TC1-COD(2018)0145


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2019/2144.)

ANNEX TO THE LEGISLATIVE RESOLUTION

Statement by the Commission on worn tyres

The Commission is of the opinion that, in view of road safety, consumer protection, reduction of waste and the circular economy, it is important that tyres are not only tested in new, but also in worn condition. To this effect, the Commission will support the development of appropriate testing protocols in the context of the United Nations world forum for the harmonization of vehicle regulations. If this process is however not finalised by July 2023, the Commission intends to propose EU legislation that specifically covers testing of tyres in worn condition.

(1) OJ C 440, 6.12.2018, p. 90.

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