(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2023)0516),

–  having regard to Article 294(2) and Articles 50 and 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9‑0326/2023),

–  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 January 2024(1),

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

–  having regard to the letter from the Committee on the Internal Market and Consumer Protection,

–  having regard to the report of the Committee on Legal Affairs (A9-0062/2024),

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.

(1) OJ C, C/2024/4061, 12.7.2024, ELI: http://data.europa.eu/eli/C/2024/4061/oj.

(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 50 and Article 114 thereof,

Having regard to the proposal from the European Commission,

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

Having regard to the opinion of the European Economic and Social Committee(1),

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)  In accordance with Article 26(2) of the Treaty on the Functioning of the European Union (TFEU), the internal market comprises an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured. To achieve this objective, Article 50 TFEU provides for the European Parliament and the Council to act by means of directives in order to attain freedom of establishment as regards a particular activity. In addition, Article 114 TFEU provides for the European Parliament and the Council to adopt the measures for the approximation of the provisions laid down by law, regulation or administrative action in Member States, which have as their object the establishment and functioning of the internal market.

(2)  The elimination of barriers to the development of activities of non-profit associations across Member States is essential in order to attain their freedom of establishment, as well as other fundamental freedoms such as the freedom to provide and receive capital and the freedom to provide and receive services within the internal market. By approximating the provisions of national law which affect the exercise of these freedoms, this Directive serves the objective of improving the functioning of the internal market. In so doing, this Directive will further serve the objectives of strengthening European integration, ensuring equal treatment, by promoting social fairness and prosperity for EU citizens and facilitating the effective exercise of the freedom of assembly and of association throughout the Union. [Am. 1]

(3)  The European Parliament adopted a resolution on 17 February 2022 with recommendations to the Commission on a statute for European cross-border associations and non-profit organisations(2).

(4)  On 9 December 2021, the European Commission adopted an action plan for the social economy.(3) In the action plan, the Commission put forward specific measures to create opportunities for social economy entities to start up and scale up, and to ensure that the social economy and its potential are more visible. The European Parliament welcomed the action plan in its resolution issued on 6 July 2022.(4)

(5)  Following up on the action plan for the social economy, the Commission recommended concrete measures to support the social economy, which prioritises people, social and environmental causes over profit. The proposal for a Council Recommendation on developing social economy framework conditions of 13 June 2023(5) includes recommendations for Member States to design and implement social economy strategies. On the same day, the Commission also published two Staff Working Documents to improve the understanding of relevant tax rules for social economy entities(6) and cross-border public-benefit donations.(7)

(6)  Among the legal forms available in the non-profit sector and the social economy, the legal form of the non-profit association is the choice for the large majority. In addition to contributing to the Union's objectives and to achieving goals that are in the public interest, non-profit associations make an important contribution to the internal market by engaging on a regular basis in a wide range of non-economic and economic activities, for example by offering services in sectors such as social services and health, communication and information, advocacy, culture, the protection of the environment, education, recreation, sports, and in the promotion of scientific and technological advances. This is true when the pursuit of economic activities is the principal activity or objective of the non-profit association, and in other cases. [Am. 2]

(6a)   Although the majority of the activities of non-profit organisations are currently carried out at national level, an increasing number of them are operating across borders, thereby strengthening the social cohesion between Member States and deepening the internal market. In order to ensure that the socio-economic potential of non-profit associations and related entities and their contribution to the European integration is fully exploited, all barriers, hindering the cross-border operation of their activities should be removed. [Am. 3]

(7)  A fully functioning internal market for the activities of non-profit associations is essential in order to promote economic and social growth across Member States. At present, barriers within the internal market and the lack of harmonisation prevent non-profit associations from extending their operations beyond their national borders, as they often encounter unjustifiable restrictions, thereby hindering the effective operation of the internal market. Working towards a fully effective and functioning internal market requires full freedom of establishment for all activities which contribute to the objectives of the Union thereby bolstering cohesion and cooperation throughout the Union. [Am. 4]

(8)  In order to establish a genuine internal market for the economic activities of non-profit associations, it is necessary to abolish any unjustified restrictions and barriers on the freedom of establishment, the free movement of services, the free movement of goods and the free movement of capital that still apply in the laws of certain Member States. These restrictions create legal uncertainty, discourage and hinder non-profit associations from operating cross-border, not least because they impose on them a specific need to allocate resources to unnecessary administrative or compliance activities, which has a particularly deterrent effect in view of their non-profit nature. Therefore, Member States should not apply restrictive or disruptive measures which can amount to excessive or costly burden on non-profit organisations. The freedom of association does not only include the ability to create or dissolve an association but also the ability for that association to operate without unjustified interference by a Member State. It also includes the ability to seek, secure and use resources, which is essential to the operation of any association. In particular, Article 63 and 65 TFEU together with Articles 7, 8 and 12 of the Charter of Fundamental Rights of the European Union (the 'Charter') enshrine the freedom of association at all levels and protect non-profit organisations against discriminatory, unnecessary and unjustified restrictions regarding the free movement of capital. This principle has been further developed by the Court of Justice in its case law, including in its judgement of 10 June 2020 in Case C-78/18, Commission vs Hungary(8). [Am. 5]

(9)  These barriers arise due to inconsistencies in the national legal frameworks of Member States. The legal framework in which non-profit associations carry out their activities in the Union is based on national law, without harmonisation at Union level. Presently, non-profit associations do not receive uniform recognition of their legal personality and capacity throughout the Union and often need to follow different administrative procedures in multiple Member States, for example, to register for a second time in another Member State or even form a new legal entity in order to engage in activities in a Member State other than the one in which they are established. The fundamental elements concerning the mobility of non-profit associations within the Union remain inadequately regulated, resulting in legal ambiguity for all non-profit associations with cross-border activities. For instance, when non-profit associations intend to relocate their registered office to a new Member State, uncertainties persist regarding relocation. In particular, the lack of a possibility of transferring the registered office without going through a liquidation hinders non-profit associations from acting, moving, and restructuring across borders within the Union. National rules diverge and often fail to provide clear solutions and procedures for the exercise of cross-border mobility and economic activities of non-profit associations. [Am. 6]

(9a)   The heterogeneity of national laws and the lack of approximation of practices also leads to an uneven playing field due to the different market conditions and the diverse obstacles that non-profit organisations face in different Member States, for example when opening bank accounts, raising and accounting funds, including foreign funds, benefitting from public support measures and schemes and verifying and complying with requirements with regard to transparency duties. [Am. 7]

(10)  The ability to access and channel funds and capital efficiently across borders is necessary in order to facilitate non-profit associations’ activities in the internal market. Cooperation and the exchange of best practices between non-profit associations from different States can help to increase the efficiency and impact of their actions at European level. By promoting common standards and a cohesive approach, red tape can be reduced and cross-border financial support encouraged in a more fluid and efficient way. This includes remuneration for economic activities, but also donations, inheritance, or other forms of funding. Different regulatory frameworks and existing restrictions in the Member States regarding receiving, soliciting donations, and similar contributions in whatever form result in fragmentation in the internal market and constitute a barrier to the functioning of the internal market. [Am. 8]

(11)  Moreover, laws of certain Member States impose requirements regarding nationality or legal residence on members of non-profit associations or on members of the executive body of such non-profit associations. Such requirements should be eliminated in order to protect the exercise of freedom of establishment and freedom of association of EU citizens, which would encourage the active participation of Union citizens in various non-profit organisations, irrespective of their country of nationality or residence. [Am. 9]

(11a)   Taking into account their particular nature and their non-profit purpose, a large part of the activities of non-profit associations may be organised in a non-commercial way and thus be non-economic in nature. [Am. 10]

(12)  The freedom of association is crucial for the functioning of democracy, as it constitutes an essential condition for the exercise of other fundamental rights by individuals, including the right to freedom of expression and information. As recognised in the Charter of Fundamental Rights of the European Union (CFR) and in the Convention for the Protection of Human Rights and Fundamental Freedoms (ECHR), freedom of association is a fundamental right. Furthermore, the essential role of civil society and representative organisations in contributing to democracy at all levels is considered a fundamental value of the Union, as recognised, in particular by Article 11 of the Treaty on European Union (TEU), and requires the existence of an open, transparent and regular dialogue. This implies therefore also that frameworks for such dialogue should be used for the implementation and application of this Directive. [Am. 11]

(13)  It is thereforeimportant to ensure convergence at Union level and avoid any unnecessary fragmentation. Thus, it is necessary to put in place harmonised rules facilitating the pursuit of non-profit associations’ cross-border activities. Existing national rules on cross-border associations should be harmonised so that they allow those non-profit associations to take a legal form specifically designed to facilitate operations on a cross border basis. That legal form should be provided in Member State’s domestic legal orders through the adaptation of their respective rules on non-profit associations. This legal form, which is to be designated as the ‘European cross-border association’, (‘ECBA’), should be automatically recognised by all Member States and will allow non-profit associations to overcome the obstacles they face in the internal market, while respecting Member States’ traditions regarding non-profit associations. These are important steps towards the deepening and ultimately the completion of the internal market. [Am. 12]

(13a)   Non-profit associations are currently not automatically recognised when they operate in a country other than the one in which they are established, and often have to set up a new entity, concerning around 310,000 associations in the EU, with 185,000 more entities likely to engage in cross-border activities within a simplified framework. The ECBA statute should facilitate the cross-border activities of non-profit associations and their mobility. The accompanying certificate should provide them with this automatic recognition and enable them to develop their activities in other Member States, thus fully enjoy the benefits of the internal market. [Am. 13]

(14)  Furthermore, allowing non-profit associations to fully enjoy the freedom of establishment in the Union via a single registration that would be valid throughout the Union and automatic recognition of their legal personality is directly related to, and necessary for, the functioning of the internal market and the possibility to effectively benefit from the rights derived from that freedom.

(15)  Trade unions and associations of trade unions should not be allowed to establish ECBAs, since they have a particular status in national law. It should however be possible for such organisations to become a non-founding member of an ECBA, if they choose to do so. [Am. 14]

(16)  Nor political parties and associations of political parties should be allowed to establish ECBAs, as they enjoy a particular status within national law and Union law as laid down in Regulation (EU, Euratom) No 1141/2014 of the European Parliament and of the Council(9). [Am. 15]

(17)  Churches and other religious organisations and philosophical or non-confessional organisations, within the meaning of Article 17 TFEU, as well as associations of these entities, should also not be allowed to establish an ECBA, due to the lack of Union competence to regulate their status, and due to them havinghave a particular status in national law, which should not be adversely affected by this Directive. Therefore, these entities should also be allowed to establish or become a member of an ECBA, if they choose to do so. [Am. 16]

(18)  The establishment of an ECBA should be the result of an agreement between natural persons that are Union citizens or legally resident third-country nationals, or legal entities established in the Union, except persons that have been convicted of offences concerning money laundering, associated predicate offences(10), or terrorist financing or are subject to measures that prohibit their operations in a Member State on the same grounds. In this regards a proportionate level of accountability, public reporting and the transparency of financing and governance structure should be ensured. In view of the non-profit purpose of the ECBA, where an ECBA is constituted by legal entities, they should also have a non-profit purpose. [Am. 17]

(19)  The non-profit purpose of an ECBA should mean that, when a profit is generated by means of economic activities, it should be used only in pursuit of the objectives of the ECBA, as defined in its statutes, and may not be redistributed directly nor indirectly among its members, including members of its governing bodies, nor among its founders or any other private parties. The direct beneficiaries of organisations aimed at providing care services for individuals with specific social needs or health conditions, should not be considered to be private parties in this regard. Therefore, there should be an asset lock requiring that no distribution of assets to members is to take place, even in the event of dissolution. In the latter case, residual assets should be transferred in a disinterested manner, such as to other non-profit associations having the sameor a local authority to be used for a similar purpose. [Am. 18]

(20)  In a society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail, ECBAs should pursue objectives that are compatible with the values enshrined in Article 2 of the Treaty on European Union (‘TEU’) such as the respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. In addition, it should not be possible to use ECBAs for terrorist financing, tax evasion, tax avoidance, money laundering or any criminal offences or illegal purposes.

(20a)   The values of the European Union enshrined in Article 2 of the Treaty on European Union should be respected both in the purpose and in the exercise of the activity of an ECBA, everywhere and at all times. To that end, the statutes of the ECBA should include a declaration that it will respect these values in its objectives and in the pursuit of its activities. [Am. 19]

(21)  The cross-border element of an ECBA is central. Therefore, an ECBA should carry out or have in its statutes the objective to carry out at least part of its activities across borders in the Union, in at least two Member States, and have founding members with links to at least two Member States, either based on citizenship or residence in the case of natural persons, or based on the location of their registered office in the case of legal entities. The notion of “cross-border” under the present Directive is without prejudice to this notion in other Union legislation. [Am. 20]

(22)  In order to ensure that ECBAs fulfil the objectives underlying their creation, the degree of harmonisation of the features and rights of an ECBA should be proportionate to the scale and scope of the identified problems non-profit associations face when engaging in cross-border activities.

(23)  Harmonisation throughout the Union of the key features of ECBAs’ legal personality and capacity and their automatic recognition across Member States and the registration procedure, without Member States laying down diverging rules on these issues, is an essential condition for ensuring a level-playing field for all ECBAs, required under the single market, and creating legal certainty. That may lead to cost reduction, improved access to the single market for associations, increased offer and quality of services and products, better cooperation and will foster innovation. The aspects of ECBAs’ activities that are not harmonised by this Directive should be governed by the national rules that apply to the single most similar typeor most commonly used legal form of non-profit association in national law. This applies, for example, with regard to national rules on the potential acquisition of a public benefit status or the application of employment legislation in accordance with the legislation in the Member State in which the relevant activities and operations take place. Such entities, independently of their name in the domestic legal order, should in all cases be membership-based and self-governed, have a non-profit purpose, and have legal personality. Self-governed in this context means having an institutional structure allowing the exercise of all internal and external organisational functions, and allowing the making of essential decisions to be carried out independently. To ensure transparency and legal certainty, Member States should notify the Commission and the ECBA committee of the single legal form of non-profit association that is most similar or most commonly used in national law and of theof those rules applicable to such legal form. [Am. 21]

(23a)   Associations are already permitted to acquire a public benefit status in all Member States, though the requirements for and implications of acquiring such a status are very diverse. Such preferential status, regardless of its exact denomination, entails a number of benefits. With regard to recognising or granting a public benefit status, different approaches exist in national rules throughout the Union. In some Member States, such legal status is connected, for example, with fiscal privileges or access to public funding, and associations can decide to acquire such status in addition to their legal form, provided that they satisfy specific requirements and depending on the jurisdiction in which they operate. For example, entities legally established in the form of an association can acquire the legal status and denomination of non-profit organisations, public benefit organisations, non-governmental organisations, civil society organisations, third sector organisations, charities, provided they satisfy the legal requirements for such a status and denomination. This Directive should not affect such preferential status and should promote the activities of associations irrespective of such status under national rules. The Commission should, however, assess in the future whether it is appropriate to further develop legislation to also regulate such status at Union level. [Am. 22]

(24)  To ensure that Member States have the appropriate tools to combat terrorism financing and ensure transparency of certain capital movements, The rules applicable to ECBAs under this Directive should be without prejudice to measures adopted by Member States to prevent the misuse of non-profit associations for public policy and public security reasons and to ensure transparency of certain capital movements, in the context of the fight against terrorism financing and money laundering, when required by Union law, or national law in compliance with Union law. Such measures should be legitimate and appropriate, not go beyond what is strictly necessary and the impact of the measure on the ECBA should be proportionate to the objective pursued. To ensure these safeguards are upheld, an application of these measures should be based on a case-by-case assessment by the Member State's competent authorities. [Am. 23]

(25)  In order to remove legal and administrative barriers for non-profit associations operating in more than one Member State and ensure the functioning of the internal market, all Member States should automatically recognise an ECBA’s legal personality and legal capacity. This legal personality and the legal capacity should be granted upon the ECBA’s registration in a Member State.

(26)  ECBAs should be able to decide freely on their rules of operation. Any limitation on this freedom imposed by a Member State should be applied in a general and non-discriminatory way, prescribed by law, justified by an overriding reason in the public interest, and be appropriate for ensuring the attainment ofand limited to what is strictly necessary, and the impact of the measure on the ECBA should proportionate to the objective pursued and not going beyond what is necessary for it to be attained. [Am. 24]

(27)  Articles 52, 62 and 65 TFEU and relevant case law also apply to ECBAs. These TFEU Articles provide for the justification of measures restricting the freedom of establishment, freedom to provide services and free movement of capital on grounds including public policy, public security and public health. Furthermore, the concept of ‘overriding reasons in the public interest’ to which reference is made in certain provisions of this Directive has been developed by the Court of Justice in its case law. Measures by Member States that are liable to hinder or make less attractive the exercise of those Treaty freedoms should be permitted only where they can be justified by objectives listed in the Treaty or by overriding reasons in the public interest recognised by Union law. While no exhaustive definition exists, the Court of Justice has recognised that justifications are possible on various grounds such as public policy, public security and public health, the maintenance of order in society, social policy objectives, the protection of the recipients of services, consumer protection, the protection of workers, or the protection of creditors, provided that the other conditions are met. Such measures need, in any event, to be prescribed by law, appropriate for ensuring the attainment ofand limited to what is strictly necessary, and the impact of the measure on the ECBA needs to be proportionate to the objective in question and not go beyond what is necessary to attain that objectivepursued. This is particularly relevant as many associations are active in the public interest areas mentioned in this recital. [Am. 25]

(28)  In order to ensure a common and appropriate approach to governance across the Union, ECBAs should comprise a decision-making body meaning the body which gathers all members, which is in some Member States traditionally referred to as the general meeting or general assembly. ECBAs should also comprise an executive body, which is in some Member States traditionally referred to as an executive committee or board of directors; the executive body should be in charge of the administration, management and conduct of the ECBA. It should also ensure compliance with the statutes of an ECBA and legal obligations, as well as represent an ECBA in dealings with third parties and in legal proceedings. The executive body of an ECBA should be composed of a minimum of three persons, be it natural persons or legal entities through their representatives.

(29)  In order to ensure that ECBAs are able to effectively perform their activities and ensure equal treatment vis-à-vis non-profit associations in national law, ECBAs should not be treated less favourably than the most similar non-profit association of the single most similar or most commonly used legal form in the domestic legal order of the home Member State where it operates. [Am. 26]

(30)  In accordance with the principle ofprinciples of equality and non-discrimination and to ensure the freedom of association, in the implementation and application of this Directive there should be no discrimination against any group or individual on any grounds, such as birth, age, colour, sex and gender, sexual orientation, gender identity, health conditions, immigration or residency status, genetic features, language, national, ethnic or social origin, political or any other opinion, membership of a national minority, physical or mental disability, property, race, religion or belief, or other status. [Am. 27]

(31)  To facilitate the cooperation among Member States and between Member States and the Commission, Member States should designate a competent authority responsible for the application of the rule transposing this Directive (‘competent authority’) and inform the Commission and the ECBA committee thereof. The competent authorities should keep in close contact with the Commission and the ECBA committee. The Commission should publish the list of competent authorities on a public website and update it without undue delay when changes occur. To have a comprehensive overview of the legal treatment of ECBAs in Member States, Member States should notify the Commission of the names and tasks of relevant authorities, other than the competent authorities, established or designated for the purposes of the national rules applicable to the single most similar or most commonly used legal form of non-profit association in national law, if applicable. [Am. 28]

(32)  In accordance with the right to an effective remedy and to a fair trial as laid down in Article 47 CFR and Article 13 ECHR, decisions made by competent authorities in applying national provisions implementing this Directive should be subject to judicial review. Such judicial review should be available to ECBAs, as well as any other natural persons or legal persons, in respect of decisions made by competent authorities regarding ECBAs, including in cases of failure to act. The right to judicial review includes the right to a fair and public hearing within a reasonable time by an independent and impartial tribunal previously established by law according to the national law of the relevant Member State in compliance with Article 47 Charter of Fundamental Rights of the Union.

(33)  In view of their non-profit purpose, ECBAs should be able to apply for funding from a public or private source in the Member State(s) in which they operate on a non-discriminatory basis. Therefore, the same rules should apply to the ECBA as those applicable to the single most similar or most commonly used legal form. There should be no restriction on the ECBA’s right to receive and provide funding, except where a restriction is prescribed by law, justified by an overriding reason in the public interest, is appropriate for ensuring the attainment or where the Member State can prove that the ECBA flagrantly and repeatedly breaches the values of the objective pursued and does not go beyond what is necessary for it to be attained andUnion enshrined in Article 2 TEU through its activities, where it is compliant with Union law, appropriate and limited to what is strictly necessary, and where the impact of the restriction on the ECBA is proportionate to the objective pursued. [Am. 29]

(34)  To ensure that ECBAs fully benefit from the internal market, ECBAs should be able to provide and receive services, as well as to engage in trade in goods without interference from Member States. Restrictions should be permitted only if they are prescribed by law, justified by overriding reasons in the public interest, and are appropriate for ensuring the attainment of the objective pursued and do not go beyond what is necessary in order for it to be attained. This should not affect provisions of other Union acts. This should include the provisions of Union acts that reinforce the fundamental freedoms, such as those laid down in Directive 2006/123/EC of the European Parliament and of the Council(11) which guarantee the freedom of establishment and the freedom to provide services as well as the provisions of other Union acts which regulate specific economic activities ECBAs engage in.

(35)  In order to establish a genuine internal market for non-profit associations, it is necessary to abolish certain restrictions on the freedom of establishment, the free movement of services and the free movement of capital that still apply in the laws of certain Member States. Therefore, Member States should not impose any discriminatory requirements based on the nationality of members of an ECBA or its executive body, except as provided for by this Directive. Nor should Member States provide for any requirement on physical presence of members for the validity of a meeting. To enable ECBAs to enjoy the full benefits of the internal market, Member States should not require the registered office of an ECBA to be in the same Member State as its central administration or the principal place of operations. Member States should also not impose general prohibitions on ECBAs carrying out economic activities, nor only allow them to engage in economic activities if they are linked to an objective set out in an ECBA’s statutes.

(35a)   In line with the right to freedom of expression and freedom of association, it is important to ensure that Member States do not limit the right to participation of associations in public life and public or political debate, which could concern for example the organisation of or participation in public interest advocacy or peaceful assembly. Such participation in the public or political debate should however not be meant to benefit any single particular political party or political candidate. [Am. 30]

(36)  The registration of an ECBA should be constitutive of the ECBA. In order to register, an ECBA should have a minimum of three founding members. Both legal entities with a non-profit purpose established in the Union and natural persons who are Union citizens or legally residing in the territory of the Union should be able to be founding members of an ECBA. It should also be possible for non-profit associations to convert into an ECBA within the same Member State.

(36a)   The possibilities offered by the digitalization should be fully exploited by Member States in order to facilitate the exercise of the freedom of association and establishment as well as in order to reduce the administrative burdens and compliance costs. To facilitate the registration process, including in the case of mergers and conversions, Member States should ensure that the application for registration may be submitted online. That should also apply to the requests for transfer of the registered office and notification for a change of information part of the ECBA certificate. Digital means should be encouraged also to facilitate and speed up, where possible, administrative procedures and cooperation. [Am. 31]

(37)  To ensure that ECBAs are able to operate across borders and in compliance with the principle of proportionality, they should be required to register only once, in the home Member State, in order to acquire their legal personality and legal capacity. To ensure automatic recognition of this registration throughout the Union, it is necessary to harmonise the registration procedure. This concerns in particular the documents and information required for an application to register an ECBA, as well as the checks to be carried out.

(38)  Member States should be entitled to require a registered ECBA to make a declaration, provide information, request or obtain authorisations for engaging in particular activities only where such requirements are (i) applied in a general and non-discriminatory way, (ii) prescribed by law, (iii) justified by overriding reasons in the public interest, (iv) appropriate for ensuring the attainment ofand limited to what is strictly necessary, and the impact of the measure on the ECBA should proportionate to the objective pursued and do not go beyond what is necessary in order for it to be attained. Such requirements may be connected, for example, to the specificities of certain sectors, like healthcare. Where Member States provide for such additional procedures, this information should be made publicly available in a clear, easily accessible and comprehensible way, in order to ensure that an ECBA is able to comply with these requirements. [Am. 32]

(39)  To prevent fraud and to ensure the reliability of the relevant register, it is important that Member States verify the identity of the founding members and the legal representatives of the ECBA. The verification of identity is particularly important, especially if the application for registration is conducted electronically. Due to the variety of different practices in Member States, the specific methods of verifying identity should remain in the prerogative of the Member State concerned. This approach provides the necessary flexibility to take account of the specific traditions, specificities and procedures of each Member State, while ensuring that security and authenticity standards are respected at Union level. [Am. 33]

(40)  While respecting the freedom of establishment and association, the registration of an ECBA should be denied in cases of failure to comply with the formal requirements for the registration, as laid down in this Directive, where the application is not complete or if the objectives described in the statutes contravene Union law or national law compliant with Union law. Furthermore, the registration must be rejected, if the application fails to comply with the basic requirements set out in this Directive to constitute an ECBA, namely the non-profit purpose, the minimum number of founding members and the cross-border element in terms of carrying out or having the objective of carrying out activities in at least two Member States and founding members with links with at least two Member States. Any refusal to register an ECBA should be made in writing and duly reasoned by the competent authority. [Am. 34]

(41)  Member States should be required to establish a register or make use of an existing national register for the purposes of the registration and for maintaining and publishing information on ECBAs. This register should contain information about ECBAs and the submitted documents. As the information kept in the register may become outdated, Member States should ensure that the ECBA notifies any changes concerning the information on ECBAs to the competent authority and that the information held in the register is updated. Member States should be allowed to make use of their existing national registers for the purpose of this Directive. In order to ensure transparency especially for members of an ECBA and its creditors, if applicable, the ECBA certificate, the liquidation and the dissolution of an ECBA are pieces of information that should be made publicly available for a maximum of 6 months afteruntil the end of the financial year following the dissolution of an ECBA. The interoperability solutions developed as part of the implementation of the Proposal for a Regulation of the European Parliament and of the Council laying down measures for a high level of public sector interoperability across the Union(12) can further support Member States to move towards cross-border interoperability of their registers. To ensure that information about the existence of an ECBA is still available even after its dissolution, all data retained and stored in the register should be kept for 2at least 5 years after dissolution Any national or European requirements concerning the authenticity, reliability and the appropriate legal form of documents or information that are to be submitted in case of online registration of the single most similar or most commonly used legal form, should also apply to the ECBA. [Am. 35]

(42)  Regulations (EU) 2016/679(13) and (EU) 2018/1725(14) of the European Parliament and of the Council apply to the processing of personal data carried out in the context of this Directive, including the processing of personal data to maintain the national register or registers on ECBAs and their legal representatives, to access personal data in such registers and to exchange personal data in the context of administrative cooperation and mutual assistance between Member States under this Directive, where applicable via the Internal Market Information System (IMI) established by Regulation (EU) No 1024/2012 of the European Parliament and of the Council(15), and the keeping of records in accordance with this Directive..

(43)  In order to enable ECBAs to reap the full benefits of the internal market and given that mobility rights are directly related and necessary to the functioning of the internal market, ECBAs should be able to transfer their registered office from one Member State to another. Such a transfer of registered office should not result in the dissolution of an ECBA in the home Member State or the creation of a new legal entity in the new home Member State, or affect any of the assets or liabilities, including any terms contained in contracts, or credits, rights or obligations of an ECBA existing before the transfer. In the case of mobility, Member States should ensure the protection of the interests of the ECBA’s creditors if any. To ensure protection of employees of ECBAs, ECBAs should be required to inform them of any proposed transfer in good time and allow them to examine the draft terms of such transfer. Other provisions of Union and national law concerning the protection of employees, such as Directive 2002/14/EC of the European Parliament and of the Council(16), may also be applicable.

(44)  To harmonise the procedure of transfer of registered office of an ECBA, Member States should ensure that a transfer of registered office is decided by the decision-making body of the ECBA concerned. The ECBA should submit the request with the relevant documents to the competent authority of the Member State to which the transfer is to be made and inform in parallel the competent authority of its home Member State when submitting the request for transfer. One of the relevant documents in the event of a transfer would be a report explaining the safeguards for creditors and employees, if applicable under Union or national law. Member States should ensure that the preparation of such a report does not impose an excessive administrative burden. Where applicable, the proposed statutes of the ECBA should be amended according to the requirements of the national law of the Member State to which the ECBA requests the transfer. Upon transfer of the registered office, the ECBA becomes an ECBA under the national law of the new home Member State. This change of applicable law ensuing from the transfer of the registered office should not lead, in order to avoid duplications, the competent authority of the new home Member State to verify any element already verified during the registration in the previous Member State and harmonised by this Directive. The competent authority of the Member State to which the ECBA intends to transfer the registered office should reject the request of transfer only where the requirements laid down in national law transposing this Directive are not met and should not refuse it on other grounds. In particular, the competent authority should not reject the request on the ground of non-compliance with requirements under its national law that could not have been a ground to reject the registration in accordance with Article 19. In order to facilitate the transfer of registered office of an ECBA in the internal market, the competent authority of the new home Member State should issue an updated certificate in accordance with paragraph 2 of Article 21, adapting the unique registration number and the two-letter country code of the Member State where the ECBA’s office is transferred and the postal address of the registered office, as well as any other elements, if applicable.. [Am. 36]

(45)  In compliance with the freedom of assembly and of association, an ECBA should be dissolved only by decision of its members or by a decision of the competent authority of the home Member State. Where the dissolution of an ECBA is the result of a decision of its members, it should be taken by two-thirds of the votes representing at least half of the total of the members during an extraordinary meeting. The dissolution of an ECBA may be involuntary by decision of the competent authority of the home Member State of the ECBA, as a last resort, only. Therefore involuntary dissolution should only happen where an ECBA does not respect its non-profit purpose, or where its activities constitute a threat to public order, or where the membersa flagrant and repeated breach of the executive body of an ECBA have been convicted of a particularly serious criminal offence or the ECBA itselfvalues of the Union enshrined in Article 2 TEU through its activities has been convicted of a criminal offence, if national law allows for this possibilityestablished under the condition that the dissolution is preceded by a risk assessment, that it is prescribed by law, appropriate and strictly necessary, and that the dissolution of the ECBA is proportionate to the objective pursued. In this case, the competent authority should communicate to the ECBA a formal comprehensively reasoned notice of its concerns and hear the ECBA in order to give the ECBA the opportunity to reply or rectify the situation within a reasonable period of time. Any decision for involuntary dissolution should be duly reasoned and include a comprehensive written justification. [Am. 37]

(46)  The dissolution of the ECBA should lead to its liquidation. The liquidation of ECBAs should be compliant with Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (EIR 2105)(17) which requires that the law applicable to insolvency proceedings and their effects shallshould be that of the Member State within the territory of which such proceedings are opened. In line with the non-profit purpose of ECBAs, any assets of a dissolved ECBA should be transferred to a non-profit entity carrying out a similaran activity as the onesimilar to one of the activities carried out by the dissolved ECBA or, transferred to a local authority which should utilise them for an activity like that pursued byor for the pursuit of an objective that is similar to one of the activities or objectives of the dissolved ECBA. [Am. 38]

(47)  To enable an ECBA to prove that it has registered within a Member State and to further facilitate cross-border procedures and simplify and reduce formalities, the competent authorities should, as the final step of the registration process, issue a certificate (’ECBA certificate’) which contains the essential registration information, including the name of an ECBAthe association followed or preceded by the acronym 'ECBA', the address of its registered office, and the names of the legal representatives. To facilitate the use of this certificate in various Member States without additional adaptations or compliance costs, the Commission should establish a standardised template available in all languages of the Union. Therefore, in order to ensure uniform conditions for the implementation of this act, implementing powers should be conferred on the Commission to produce a standardised template including in relation to the technical specifications of the template. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council(18). Those implementing acts should be adopted in accordance with the examination procedure referred to in Article 5 of Regulation (EU) No 182/2011 of the European Parliament and of the Council. [Am. 39]

(48)   The notion of ‘particularly serious crime’ should be defined by Member States and may include terrorism, trafficking in human beings and sexual exploitation of women and children, illicit drug trafficking, illicit arms trafficking, money laundering, corruption, counterfeiting of means of payment, computer crime and organised crime. [Am. 40]

(49)  In order to allow Member States to efficiently implement legal provisions of this Directive on administrative cooperation and facilitate cooperation, Member States should use the Internal Market Information System (IMI). In particular, the competent authorities should use IMI to notify the competent authorities of the other Member States when a new ECBA is constituted, including when a non-profit association converts into an ECBA. Where a competent authority receives an application for registration, it should communicate through IMI with the competent authorities of the Member State(s) in which these documents have been issued to verify, for instance, their lawfulness. In the case of a transfer of the registered office of an ECBA, the competent authority of the new home Member State should notify the competent authorities of the other Member States of this transfer and update IMI with the relevant information. In the case of a dissolution, both voluntary or involuntary, the competent authority should also notify the competent authorities of the other Member States to inform them about the dissolution and to update IMI with the relevant information.

(49a)   In accordance with the right to good administration and the principles of efficiency and effectiveness of the public administrations, the transposition of this Directive should foster the simplification of administrative rules and the reduction of administrative costs and burdens. Member States should therefore ensure that the administrative procedures and obligations of ECBAs can be submitted online and that such procedures are easily accessible. Member States should make all the necessary information available and provide support for the administrative processes related to ECBAs. [Am. 41]

(49b)   In view of monitoring the implementation of this directive, the Commission should be assisted by the ECBA committee composed of representatives of the Member States. In line with the Union principles and article 2 TEU in particular, the composition of the committee should be balanced. The Committee should involve, as appropriate, other relevant Union bodies and committees and stakeholders in its work, such as the European Union Agency for Fundamental Rights and non-profit organisations. Public access to information on committee proceedings should be ensured in accordance with Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents. [Am. 42]

(49c)   This Directive takes an important step in completing the single market and opening it up further to the non-profit sector. In light of this, the Commission is invited to assess in addition to this Directive the possible benefits and the feasibility of complementing this Directive by measures to support a regular, meaningful and structured dialogue with civil society and representative organisations, of a similar European regulatory framework with regards to foundations. [Am. 43]

(50)  Since the objectives of this Directive, namely improving the functioning of the internal market by removing legal and administrative barriers for non-profit associations operating in more than one Member State, cannot be sufficiently achieved by the Member States alone and can rather be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives.

(51)  The European Data Protection Supervisor was consulted in accordance with Article 42(1) of Regulation (EU) 2018/1725 and delivered an opinion on 27 June 2023,

HAVE ADOPTED THIS DIRECTIVE:

Chapter 1

General provisions

Article 1

Subject matter

This Directive lays down measures coordinating the conditions for establishing and operating ‘European cross-border associations’ (ECBAs), in order to facilitate the effective exercise by non-profit associations of their rights related to the freedom of establishment, free movement of capital, freedom to provide and receive services and free movement of goods in the internal market.

Article 2

Definitions

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

(a)  “home Member State” means the Member State in which the ECBA establishes or transfers its registered office;

(b)  “host Member State” means a Member State other than the home Member State in which the ECBA operates;

(c)  “non-profit purpose” means that, regardless of whether the association’s activities are of an economic nature or not, any profits generated are used only in pursuit of the objectives of the ECBA as defined in its statutes and not to be distributed among its members, including members of its governing bodies, nor among founders or other private parties, in a direct or indirect manner; [Am. 44]

(d)  “non-profit association” means a legal entity under national law that is membership-based, self-governed, has a non-profit purpose, and has legal personality; [Am. 45]

(e)  “ECBA certificate” means a certificate issued by the competent authority of the home Member State, serving as evidence of the registration, legal personality and legal capacity of an ECBA. [Am. 46]

(ea)   ‘particularly serious criminal offence’ means one of the offences listed in Article 2(2) of Council Framework Decision 2002/584/JHA, to be strictly interpreted by Member States and applied in a non-discriminatory way. [Am. 47]

Article 3

European Cross-Border Association (ECBA)

1.  Each Member State shall establish in its legal system the legal form of the European cross-border association (ECBA). Member States shall ensure that an ECBA is a membership-based legal entity, constituted by means of voluntary agreement by natural persons that are Union citizens or legally resident in the EU or legal entities with a non-profit purpose legally established in the Union, with the exception of:

(a)  trade unions, and political parties, religious organisations and associations of such entities; [Am. 48]

(b)  persons who have been convicted of offences of money laundering, associated predicate offences, or terrorist financing;

(c)  persons who are subject to measures that prohibit their activity in a Member State in connection with money laundering, associated predicate offences, or terrorist financing.

2.  Member States shall ensure that an ECBA shall have a non-profit purpose and any profits of an ECBA shall be used exclusively for the pursuit of its objectives, as described in its statutes, without any distribution among its membersin accordance with Article 2(1), point (c). [Am. 49]

3.  Member States shall ensure that an ECBA shall carry out or have in its statute the objective to carry out activities in at least two Member States and have founding members with links to at least two Member States, either based on citizenship or legal residence in the case of natural persons, or based on the location of their registered office in the case of legal entities.: [Am. 50]

(a)   based on citizenship or legal residence in the case of natural persons; or [Am. 51]

(b)   based on the location of their registered office in the case of legal entities. [Am. 52]

4.  Member States shall ensure that the name of the ECBA shall be preceded or followed by the acronym ‘ECBA’.

5.  Member States shall ensure that the registered office of an ECBA shall be located in the Union.

Article 4

Rules applicable to ECBAs

1.  For all matters harmonised by this Directive, Member States shall ensure that an ECBA shall be governed by the measures transposing this Directive in the Member State it is registered in or operates.

2.  For further matters that concern the establishment or operation of ECBAs, each Member State shall ensure that the national rules applicable to the most similar or most commonly used legal form of non-profit association in national law apply to ECBAs. [Am. 53]

3.  The rules applicable to ECBAs under this Directive shall not affect the measures adopted by Member States on grounds of public policy and public security to prevent the risk of misuse of non-profit associations and to ensure transparency of certain capital movements when required by Union law or national law in compliance with Union law, where such measures are prescribed by law, are appropriate for the attainment of the objective pursued, do not go beyond what is strictly necessary and the impact of the measure on the ECBA is proportionate to the objective pursued. The application of these measures shall be based on a case-by-case assessment by the Member State's competent authorities. [Am. 54]

4.  By [two years... [one year after the entry into force of this Directive] and following consultation of stakeholders, including non-profit associations, each Member State shall identify the single most similar or most commonly used legal form of non-profit association in its domestic legal order as referred to in paragraph 2 and notify the Commission and the ECBA Committee referred to in Article 30, thereof and of the national rules that apply to that legal form. Member States shall notify the Commission and ECBA Committee without delay of any changes regarding the legal forms identified and of any changes to the rules applicable to them. Member States and the Commission shall make the notified information referred to in this paragraph publicly available. [Am. 55]

4a.   The constitution of an ECBA, including through conversions or mergers, as well as the transfer of an office shall not be used to undermine workers’ or trade union rights, representation, consultation or working conditions nor creditors rights, in accordance with applicable Union and national law as well as collective agreements. [Am. 56]

Article 5

Legal personality and legal capacity

1.  Member States shall ensure that an ECBA acquires legal personality and legal capacity upon registration in accordance with Article 19. Member States shall recognise the legal personality and legal capacity of ECBAs registered in another Member State, without any further procedures or assessment or requiring any further registration. [Am. 57]

2.  Member States shall ensure that an ECBA has the right to at least conclude contracts and perform legal acts, be a party to legal proceedings, own movable and immovable property, carry out economic activities, employ staff, receive, solicit and dispose of donations and other funds of any kind from any lawful sourcein line with Article 13, participate in public tenders, and apply for public funding. The ECBA shall be allowed to do so in accordance with this Directive and without the need to register in any Member State other than the home Member State or to fulfil additional administrative requirements other than those required of the legal form identified in accordance with Article 4(4). [Am. 58]

Article 6

Statutes

1.  Except for the rules laid down in paragraph 2 of this Article and in Articles 3, 7 and 8, the home Member State shall not lay down rules restricting an ECBA’s right to determine its rules of operation, including rules concerning internal management and governance structures, unless the restricting rules are:

(a)  prescribed by law;

(b)  justified by overriding reasons in the public interest; and [Am. 59]

(c)  appropriate for ensuring the attainment of the objective pursued and, do not go beyond what is strictly necessary in order for it to be attainedand the impact of the restricting rules on an ECBA is proportionate to the objective pursued. [Am. 60]

2.  Member States shall ensure that the statutes of an ECBA are provided in writing, submitted in compliance with formal requirements applicable to the legal entity identified in accordance with Article 4(4), and include the following information: [Am. 61]

(a)  the name of the ECBA;

(b)  a detailed description of its objectives and, a statement of its non-profit purpose and a description of its cross-border dimension; [Am. 62]

(ba)   a declaration that the ECBA will respect the values of the Union enshrined in Article 2 TEU in its objectives and in the pursuit of its activities; [Am. 63]

(c)  the names and addresses of the founding members, where they are natural persons, and the names of the legal representatives and registered office of the founding members, where they are legal entities;

(d)  where a founding member is a legal entity, a detailed description or copy of its statutes and a detailed description of its non-profit purpose; [Am. 64]

(e)  the address of the ECBA’s registered office;

(f)  the assets of the ECBA at the time of its registration;

(g)  the conditions and procedures for the admission, exclusion and resignation of members;

(h)  the rights and obligations of members;

(i)  provisions governing composition, functioning, powers and responsibilities of the decision-making body and the executive body;

(j)  provisions governing the number, appointment, removal, powers and responsibilities of the members of the executive body; [Am. 65]

(k)  the majority and quorum requirements applicable to the decision-making body;

(l)  the procedure to amend the statutes;

(m)  the duration of the existence of the ECBA, where it is of a limited duration;

(n)  the method of disposition of the ECBA’s assets in the event of dissolution.; and [Am. 66]

(na)   the date of adoption of the statutes. [Am. 67]

Article 7

Governance

1.  Member States shall ensure that ECBAs have a decision-making body and an executive body.

2.  Member StatesThe executive body of an ECBA shall ensure that onlybe composed of a minimum of three persons, of which at least two persons are natural persons that are Union citizens or legally resident in the Union, or and legal entities with a non-profit purpose established in the Union, through their representatives, may be members of the executive body of an ECBA. The executive body of an ECBA shall be composed of a minimum of three persons. [Am. 68]

3.  Member States shall ensure that natural persons who have been convicted of a particularly serious criminal offence are not to be members of the executive body or representatives of a legal entity that is a member of the executive body, in case participation in the executive body by this person would constitute a threat to the public order. [Am. 69]

Article 8

Membership

-1.   Notwithstanding the criteria for the constitution of an ECBA laid down in Article 3(1), the membership criteria of an ECBA shall be regulated by its statutes. [Am. 70]

1.  Member States shall ensure that each member of an ECBA has one vote, unless the ECBA decides to allow a differentiation including by making a distinction between full members who can vote and associate members who cannot vote. In all cases, any differentiation in voting rights shall be set out in the statutes. [Am. 71]

2.  Member States shall ensure that members of an ECBA are not personally liable for acts or omissions of the ECBA.

Chapter 2

Rights and prohibited restrictions

Article 9

Equal treatment

Each Member State shall ensure that in any aspect of their operations, ECBAs are not treated less favourably than the non-profit association in national law identified pursuant to Article 4(4).

Article 10

Non-discrimination

Member States shall ensure that, within the ambit of application of this Directive, public authorities do notECBAs are not discriminated nor that national laws, regulations or administrative acts regulating ECBAs discriminate against any group or individual on any grounds, such as birth, age, colour, sex and gender, sexual orientation, gender identity, health conditions, immigration or residency status, genetic features, language, national, ethnic or social origin, political or any other opinion, physical or mental disability, membership of a national minority, property, race, religion or belief, or other status. [Am. 72]

Article 11

Judicial review

Member States shall ensure access to effective complaint mechanisms in accordance with national law and shall ensure that all decisions of competent authorities on their territory affecting the rights and obligations of ECBAs, or the rights and obligations of other persons in connection to the operations of ECBAs, are subject to effective judicial reviewremedies, in compliance with Article 47 of the Charter of Fundamental Rights of the Union. [Am. 73]

Article 12

Single registration

1.  Member States shall ensure that an ECBA shall only be required to register once. Registration shall take place in accordance with Articles 18 and 19.

2.  Without prejudice to Articles 9 to 11, Member States shall not require registered ECBAs to make a declaration, provide information, or request or obtain authorisations for engaging in particular activities, unless such requirements are: [Am. 74]

(a)  prescribed by law;

(b)  justified by overriding reasons in the public interest; and [Am. 75]

(c)  appropriate for ensuring the attainment of the objective pursued and, do not go beyond what is strictly necessary in order for it to be attainedand the impact of the requirements on an ECBA is proportionate to the objective pursued. [Am. 76]

3.  Paragraph 1 shall not affect requirements to make a declaration, provide information, request or obtain authorisations for engaging in particular activities provided by Union law or national provisions implementing Union law.

Article 13

Funding

1.  Member States shall ensure that an ECBA, regardless of the Member State of registration, has free and non-discriminatory access to funding from a public source, in compliance with the general principles of EU law.

2.  Without prejudice to Articles 9 to 11, Member States shall not impose any restrictions on an ECBA’s ability to provide or receive funding, including donations, from any lawful source, except to the extent that such restrictions are: [Am. 77]

(a)  prescribed by law;

(b)  justified by overriding reasons in the public interest or where the Member State can prove that the ECBA flagrantly and repeatedly breaches the values of the Union enshrined in Article 2 TEU through its activities; and [Am. 78]

(c)  appropriate for ensuring the attainment of the objective pursued and, do not go beyond what is strictly necessary in order for it to be attainedand the impact of the restriction on an ECBA is proportionate to the objective pursued. [Am. 79]

Article 14

Provision of services and trade in goods

1.  Member States shall ensure that ECBAs are free to establish, to provide and receive services, and to exercise the free movement of goods in the internal market in compliance with EU law.

2.  Without prejudice to provisions of other acts of Union law as well as Articles 9 to 11 of this Directive, Member States shall not impose any restrictions on the activities referred to in paragraph 1, unless such restrictions are: [Am. 80]

(a)  prescribed by law;

(b)  justified by overriding reasons in theof public interest; and [Am. 81]

(c)  appropriate for ensuring the attainment of the objective pursued and, do not go beyond what is strictly necessary in order for it to be attainedand the impact of the restriction on an ECBA is proportionate to the objective pursued. [Am. 82]

Article 15

Prohibited restrictions

Member States shall ensure that an ECBA is not subject to any of the following requirements:

(a)  requirements based directly or indirectly on nationality or residence of natural persons that are members of the ECBA or its executive body, except as provided for by this Directive;

(b)  a requirement of physical presence of members of the ECBA, its executive body or its decision-making body for the validity of any meeting;

(c)  a requirement to have its central administration or its principal place of operation in the same Member State as its registered office;

(d)  a requirement whereby a host Member State subjects the recognition of an ECBA registered in another Member State to the condition of reciprocity as regards the recognition of its ECBAs in that other Member State;

(e)  a requirement for an ECBA to have been registered in the home Member State for a given period in order to operate in the host Member State;

(f)  a requirement of an authorisation or approval by a Member State authority as a condition for receiving donations from a source within the Union;

(g)  the following restrictions on the exercise of economic activities, whether carried out on a regular or on an occasional basis, unless such prohibition would allow the ECBA to access a different preferential status: [Am. 83]

(i)  general prohibitions on carrying out economic activities;

(ii)  allowing ECBAs to carry out economic activities only if such activities are linked to the objectives described in their statutes;

(iii)  requiring that the pursuit of an economic activity is not the primary objective or activity of the ECBA;

(ga)   restrictions or additional requirements regarding the participation in matters of public debate, whether carried out on a regular or on an occasional basis. [Am. 84]

Chapter 3

Constitution and registration

Article 16

Constitution

1.  Member States shall ensure that an ECBA is constituted upon registration.

2.  Member States shall ensure that an ECBA has a minimum of three founding members.

3.  Member States shall ensure that the founding members express their intention to constituteformation of an ECBA either byshall be executed by a written agreement between themall of the founding members or by an agreement atwritten minutes documenting the constitutive meeting of the ECBA that is recorded in the written minutes; to that end, such an agreement or minutes shall be duly signed by theall founding members and duly verified if the applicable national law requires so for the legal entity identified in accordance with Article 4(4). [Am. 85]

Article 17

Conversion of non-profit associationsentities into an ECBA [Am. 86]

1.  Member States shall ensure that existing non-profit associationsentities that are legally established in a Member State and which fulfil the requirements set out in this Directive, canthe Union may convert into an ECBA within the same Member State. [Am. 87]

2.  Member States shall ensure that any conversion is approved by the decision-making body of the converting entity.

3.  Member States shall ensure the conversion shall not result in the dissolution of the non-profit association that is converting or in any loss ofor interruption of its legal personality. [Am. 88]

4.  Member States shall ensure that all assets and liabilities are transferred to the newly constituted ECBA.

5.  Member States shall ensure that the conversion shall take effect upon registration of the newly constituted ECBA in accordance with Article 19.

6.  Member States shall ensure that the entry concerning the non-profit association that has converted is removed from any register.

Article 17a

Merger of existing non-profit entities into an ECBAs

1.   Member States shall ensure that two or more existing non-profit entities that are legally established in on or more Member States, can merge into an ECBA where:

(a)   one or more non-profit entity, on being dissolved without going into liquidation, transfers all its assets and liabilities to another existing ECBA, being the acquiring ECBA; or

(b)   one or more non-profit entity, on being dissolved without going into liquidation, transfers all its or their assets and liabilities to an ECBA that it or they form, being the newly established ECBA.

2.   Member States shall ensure that any merger is approved by the decision-making bodies of the merging non-profit entities.

3.   Member States shall ensure that mergers do not result in the dissolution or any loss or interruption of the legal personality of the acquiring ECBA and that legal continuity is unaffected in the event of a merger that results in a newly established ECBA.

4.   Member States shall ensure that all assets and liabilities are transferred to the acquiring or newly constituted ECBA, as applicable.

5.   Member States shall ensure that the merger shall take effect, as applicable, upon registration of the newly established ECBA in accordance with Article 19 or from the date from which the transactions of the acquired ECBAs are to be treated for accounting purposes as being those of the acquiring ECBA.

6.   Member States shall ensure that the entry concerning the non-profit entities that merged, apart from the acquiring ECBA where applicable, are removed from any register. [Am. 89]

Article 18

Application for registration

1.  Member States shall ensure that an application for registration of an ECBA is submitted to the competent authority of the Member State in which the ECBA intends to have its registered office. The application shall be submitted in the same format the legal entity identified in accordance with Article 4(4) is required to use, and shall be accompanied by the following documents and information, provided in an official language of that Member State or any other language allowed under the law of that Member State: [Am. 90]

(a)  the name of the ECBA;

(b)  the statutes of the ECBA;

(c)  the postal address of the intended registered office and an electronic mail address; [Am. 91]

(d)  the names and addresses, and any other information necessary in accordance with the applicable national law for their identification, of persons authorised to represent the ECBA in dealings with third parties and in legal proceedings and an indication whether those persons may do so alone or are required to act jointly;

(e)  the written agreement of the founding members or minutes of the constitutive meeting of the ECBA containing such an agreement, duly signed by the founding members, or the decision to convert referred in Article 17 or the decision to merge referred to in Article 17a; [Am. 92]

(f)  a declaration by the members of the executive body that they have not been disqualified from serving as a board member on the comparable bodies of non-profit associations or of companies.

Member States shall not require documents or information other than those listed in this paragraph.

2.  Notwithstanding paragraph 3, Member States shall ensure that, for the purpose of registration, an application is complete when it contains the documents and information set out in paragraph 1.

3.  By way of derogation from the second subparagraph of paragraph 1, Member States may adopt rules allowing the competent authority to request documents or information additional to those referred to in paragraph 1 by written decision addressed to the person authorised to represent the ECBA referred to in Article 18(1), point (d), setting out a duly substantiated concern that the objectives described in the statutes of the ECBA would contravene Union law, including the values of the Union as enshrined in Article 2 TEU, or provisions of national law compliant with Union law, where those documents or information are necessary. [Am. 93]

4.  Member States shall ensure that the application for registration of an ECBA mayincluding in cases of conversions and mergers, can be submitted online. [Am. 94]

Article 19

Registration procedure

1.  Member States shall ensure that registration of an ECBA takes place within 30 days from the submission of a complete application and is valid throughout the Union.

2.  Member States shall ensure that the competent authority of the home Member State notifies, without delay, the competent authorities of all the other Member States of any new registration of an ECBA.

3.  Where the information provided for the purposes of registration is incomplete or contains manifest errors, the competent authority shall ask the ECBA to complete or rectify its submission within a reasonable period of time, which shall not be less than 15 days from the date when the competent authority contacts the person authorised to represent the ECBA referred to in Article 18(1), point (d).

4.  Notwithstanding paragraph 1 of this Article, Member States shall ensure that, upon receipt of a complete application pursuant to paragraph 1 of this Article, the competent authority verifies the application to register an ECBA and that it rejects it only where:

(a)  the application fails to comply with the requirements set out in Article 3;

(b)  the application is not completed or rectified within the period of time set out in paragraph 3 of this Article;

(c)  the identities of the legal representatives of the ECBA could not be verified or have been ascertained to have been falsified;

(d)  the competent authority determines, after having taken the decision set out in Article 18(3) and assessed all documents and information provided in response to that decision, that the objectives described in the statutes of the ECBA would contravene Union law, including the values of the Union enshrined in Article 2 TEU, or provisions of national law compliant with Union law; [Am. 95]

(e)  where any person authorised to represent the ECBA referred to in Article 18(1), point (d) or any member of the executive body, has been convicted of a particularly serious criminal offence, and where this would constitute a threat to public order. In such cases, the ECBA shall be given reasonable time to rectify the situation. [Am. 96]

A decision refusing registration shall be in writing, duly reasoned and addressed to the person authorised to represent the ECBA referred to in Article 18(1), point (d).

5.  Where the competent authority decides to reject the application or has not reached a decision within 30 days of the submission of the complete application, Member States shall ensure that that decision, or the lack of such decision, is subject to effective judicial review.

5a.   Member States shall publish the registration procedure on the Single Digital Gateway established by Regulation (EU) 2018/1724 of the European Parliament and of the Council(19). [Am. 97]

Article 20

Register

1.  Each Member State shall establish adesignate a national register and responsible public body, for the purposes of registration of ECBAs pursuant to Article 19, and shall inform the Commission thereof. [Am. 98]

2.  Member States shall ensure that the following documents and information are stored in the register and up-to-date:

(a)  the statutes of an ECBA;

(aa)   the annual reports of the ECBA, drafted in accordance with the national law applicable to the legal entity identified in accordance with Article 4(4); [Am. 99]

(b)  a copy of the ECBA certificate pursuant to Article 21;

(c)  the names and addresses, and any other information necessary in accordance with the applicable national law for their identification, of persons authorised to represent the ECBA in dealings with third parties and in legal proceedings and an indication whether those persons may do so alone or are required to act jointly;

(d)  the liquidation and dissolution of an ECBA.

3.  Member States shall ensure that registered ECBAs notify the competent authority of their home Member State about changes to the information held in the register within 30 days from such change.

4.  Member State shall ensure that the following information is made publicly available in an online version of the register:

(a)  the ECBA certificate pursuant to Article 21;

(b)  the liquidation of an ECBA;

(c)  the dissolution of an ECBA.

5.  Member States shall ensure that the documents and information referred to in paragraph 4 are not publicly available for longer than 6 months afteruntil the end of the financial year following the dissolution of an ECBA. [Am. 100]

6.  Member States shall ensure that personal data are not retained in the register after the dissolution of an ECBA for longer than 25 years. [Am. 101]

Article 21

Contents of the ECBA certificate

1.  Member State shall ensure that the competent authorities issue the ECBA certificate, both digitally and in paper form within 5 days from the registration of an ECBA. Member States shall ensure that the ECBA certificate is recognised as evidence of the registration of the ECBA, its legal personality and legal capacity. The ECBA certificate shall include the following information: [Am. 102]

(a)  the unique registration number of the ECBA and the two-letter country code of the home Member State;

(b)  the date of registration of the ECBA;

(c)  the date of any transfer of the registered office of the ECBA

(d)  the name of the ECBA;

(e)  the postal address of the registered office, and the electronic mail address, of the ECBA;

(f)  the objectives of the ECBA as set out in its statutes.

2.  Upon notification from the person authorised to represent the ECBA referred to in Article 18(1), point (d) that the information listed in paragraph 1 of this Article has changed, Member States shall issue an updated ECBA certificate, both digitally and in paper form, within 5 days from the notification of those changes.

3.  To facilitate the use of the ECBA certificate in all Member States, harmonise its format and reduce the administrative burden for both Member States competent authorities and ECBAs, the Commission shall establish the template for the ECBA certificate and its technical specifications by means of an implementing act. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 30(2)29a(6). [Am. 103]

Chapter 4

Mobility

Article 22

Transfer of registered office

1.  Member States shall ensure that an ECBA have the right to transfer its registered office from one Member State to another.

2.  Member States shall ensure that the transfer referred to in paragraph 1 shall not result in the dissolution of the ECBA or the creation of a new legal person in the Member State to which its office is transferred. Member States shall ensure that the transfer of the registered office shall not affect any of the assets or liabilities of the ECBA existing before the transfer, including any terms contained in contracts, or credits, rights and obligations.

3.  Member States shall ensure that the transfer takes effect on the date of the registration of the ECBA in the home Member State to which it is transferred.

4.  By way of derogation to paragraph 1 of this Article, Member States shall ensure that the competent authority of the Member State to which the ECBA intends to transfer its registered office does not permit the transfer in any of the following cases:

(a)  where the ECBA does not comply with the requirements of Article 3, paragraph 1, paragraph 2 or paragraph 3;

(b)  where a decision referred to in Article 24(2) has been taken or where a reasoned notice referred to in Article 25(3) has been issued;

(c)  when an ECBA has been declared insolvent or is subject to insolvency are pendingproceedings; [Am. 104]

(d)  where the persons authorised to represent the ECBA referred to in Article 18(1), point (d), any member of the executive body or the ECBA itself, if national law provides for this possibility, are the subject of proceedings for a particularly serious criminal offence, and where this would constitute a threat to public order. In such cases, a in the previous home Member State shall proceed with the transfer of the registered office when the representative or member of the executive body has been replaced or where the proceedings have ended and they did not lead to a conviction. [Am. 105]

Article 23

Procedure of transfer of the registered office

1.  Without prejudice to any provisions in force more favourable to employees based on national or Union law, Member States shall ensure that the employees of an ECBA willing to transfer its registered office are informed of the potential transfer and entitled, in good time and at least one month before the extraordinary meeting referred to in paragraph 2, to examine the draft of the decision approving the request for transfer of registered office referred to in paragraph 23, and to express their views. [Am. 106]

1a.   Member States shall provide for an adequate system of protection of the interests of creditors to ensure that the creditors of an ECBA whose claims existed prior to the publication of the request for transfer referred to in paragraph 3a, can require the ECBA to provide them with appropriate safeguards. The provision of such guarantees shall be governed by the law of the Member State in which the ECBA had its registered office prior to the transfer. The system of protection of creditors provided for in accordance with article 86j of Directive (EU) 2017/1132 of the European Parliament and of the Council(20) shall apply mutatis mutandis. [Am. 107]

2.  Member States shall ensure that the transfer of the registered office needs to be adopted byat a meeting of the decision-making body of the ECBA in an extraordinary meeting. That decision shall be taken by two thirds of the votes, representing at least half of all members. [Am. 108]

3.  Member States shall ensure that the decision-making body of the ECBA submits a request for transfer of registered office to the competent authority of the Member State to which it wishes to transfer its registered office and informs the competent authority of its home Member State of that request. The request shall include the following:

(a)  the decision of the decision-making body of the ECBA approving the transfer;

(b)  the ECBA certificate;

(c)  the proposed address of the ECBA’s registered office in the Member State to which it is transferred;

(d)  the statutes of the ECBA, specifying, if applicable, its new name;

(e)  the proposed date for the transfer;

(f)  a report explaining in detail the safeguards for creditors and employees that the ECBA has put in place, in accordance with, if applicable under Union orlaw, national law and collective agreements. [Am. 109]

3a.   Member States shall ensure that the request for a transfer of a registered office can be submitted online, and that any request is published on a publicly available website. [Am. 110]

4.  Member States may adopt rules allowing the competent authority of the Member State to which the ECBA wishes to transfer its registered office to request documents or information additional to those set out in paragraph 3 by written decision addressed to the person authorised to represent the ECBA referred to in Article 18(1), point (d) setting out a duly substantiated concern that the objectives described in the statutes of the ECBA would contravene provisions of national law of that Member State, where those documents or information are necessary to assess that matter.

5.  Member States shall ensure that the competent authority of the Member State where the ECBA intends to transfer its registered office is authorised to decide on the request to transfer. That competent authority shall only be entitled to reject the request where:

(a)  the requirements set out in paragraph 2 of this Article are not met;

(b)  where the request does not include all the elements required under paragraph 3;

(c)  where one of the situations set out in Article 22(4) occurs;

(d)  the competent authority determines, after having taken a decision as set out in this paragraph and assessed all documents and information provided in response to that decision, that the objectives described in the statutes of the ECBA would contravene national law compliant with Union law.

6.  The competent authority shall adopt the decision referred to in paragraph 5 of this Article within 30 days from reception of the request for transfer of registered office referred to in paragraph 3.

7.  Notwithstanding paragraph 6, Member States shall ensure that the transfer takes place within 30 days from the submission of a complete application.

8.  Where the information provided for the purposes of transfer is incomplete or contains manifest errors, the competent authority shall ask the ECBA to complete or rectify its submission within a reasonable period of time, which shall not be less than 15 days from the date when the competent authority contacts the person authorised to represent the ECBA referred to in Article 18(1), point (d).

9.  Member States shall ensure that the competent authority of the new home Member State registers the ECBA and updates the ECBA certificate as regards the elements listed in paragraph 1 of Article 21.

10.  Member States shall ensure that the competent authority of the home Member State following the transfer of the registered office notifies the competent authorities of other Member States of the transfer of registered office without delay. Upon receipt of this notification, the competent authority of the previous home Member State shall remove the ECBA from the register following receipt of that notification.

Chapter 5

Dissolution

Article 24

Voluntary dissolution

1.  Member States shall ensure that an ECBA shall only be dissolved by decision of its members and only in the following cases:in accordance with its statutes. [Am. 111]

(a)   the objective of the ECBA has been achieved; [Am. 112]

(b)   the time for which it was set up has expired; [Am. 113]

(c)   for any reason in accordance with its statutes. [Am. 114]

2.  Member States shall ensure that the decision-making body of the ECBA shall be entitled to dissolve an ECBA only by decision taken by two-thirds of the votes, representing at least half of the total of members, during an extraordinary meeting.

Member States shall ensure that upon liquidation of the ECBA as provided for in Article 28 the competent authority shall remove the ECBA from the register only when the liquidation is completed and that the relevant information in IMI is updated accordingly.

Article 25

Involuntary dissolution

1.  By way of derogation to Article 26(1), Member States shall ensure that an ECBA may only be involuntarily dissolved by the competent authority of the home Member State) in the circumstances and according to the conditions provided for in this Article.

2.  Member States may provide for the involuntary dissolution of an ECBA, provided that the dissolution is preceded by a risk assessment, that it is prescribed by law, appropriate for the attainment of the objective pursued, does not go beyond what is strictly necessary, and that the dissolution is proportionate to the objective pursued, and only on the basis of one of the following reasons: [Am. 115]

(a)  non-compliance of the ECBA with the non-profit purpose;

(b)  a serious threat to public order or public security caused by the activities of the ECBAs; or [Am. 116]

(ba)   a flagrant and repeated breach of the values of the Union enshrined in Article 2 TEU through its activities; [Am. 117]

(c)  a conviction for a particularly serious criminal offence of the ECBA or of the members of its executive body committed in the name, on behalf or for the benefit of the ECBA; or [Am. 118]

(ca)   a conviction for a serious criminal offence of a member of the executive body for a particularly serious criminal offence committed after the creation of the ECBA where participation in the executive body by such person would constitute a threat to public order. [Am. 119]

3.  Where the competent authority has concerns that one of the reasons referred to in paragraph 2 of this Article exists, it shall give a comprehensively reasoned notice to the ECBA in writing of its concerns and give reasonable time to the ECBA to provide replies regarding those concerns as well as to rectify the situation. [Am. 120]

4.  Member States shall ensure that where, after having duly examined the replies by the ECBA pursuant to paragraph 3 of this Article, the competent authority determines that the ECBA must be dissolved because one of the reasons referred to in paragraph 2 of this Article has been ascertained and has not been rectified, it shall adopt a written decision to that effect which is to be formally shared with the ECBA. A decision to dissolve an ECBA may only be taken where there are no less restrictive measures capable of addressing the concerns raised by the competent authority. [Am. 121]

5.  Member States shall ensure that the decision referred to in paragraph 4 of this Article is duly reasoned and includes a comprehensive written justification, confirmed by a judicial decision, where applicable, in accordance with national law and subject to effective and independent judicial review in line with Article 11, and does not take effect while judicial review is pending. [Am. 122]

6.  Member States shall ensure that the competent authority shall inform the ECBA of its decision and shall remove the ECBA from the register in due time only after the decision referred to in paragraph 4 has taken effect and after the liquidation of the ECBA as provided for in Article 26 has been completed. The competent authority shall notify the competent authorities of the Member States of the relevant information.

Article 26

Liquidation in case of dissolution

1.  Member States shall ensure that the dissolution of an ECBA as provided for by Articles 24 and 25 entails its liquidation.

2.  Member States shall ensure that any assets of the dissolved ECBA remaining after financial interests of possible creditors are discounted are transferred to a non-profit entity carrying out a similaran activity assimilar to one of the activities of the dissolved ECBA or that the assets are transferred to a local authority, which is obliged to utilise them for an activity or for the pursuit of an objective that is similar to the one pursued byone of the activities or objectives of the dissolved ECBA. [Am. 123]

Chapter 6

Application and administrative cooperation

Article 27

Competent authorities

1.  Each Member States shall designate the competent authority (‘competent authority’) responsible for the application of and supervision under this Directive. [Am. 124]

2.  Member States shall notify the Commission of the names of the competent authority designated pursuant to paragraph 1. The Commission shall publish a list of the designated competent authorities on a publicly available website and update it when relevant. [Am. 125]

3.  Member States shall notify the Commission of the names and tasks of other competent authorities established or designated for the purposes of the national rules applicable to the most similar non-profit associationlegal entity in their domestic legal order, as identified pursuant to Article 4(4), if applicable. [Am. 126]

Article 28

Administrative cooperation

1.  The competent authorities of Member States shall cooperate with and assist each other in an effective and efficient way for the purposes of the application of the provisions of this Directive.

2.  The administrative cooperation and the exchanges of information between the competent authorities pursuant to Article 17, Article 18, Article 19(2), Article 19(4), Article 23(5), Article 23(6), Article 23(7), Article 24(3), Article 25(6) and Article 27 shall take place in accordance with Regulation (EU) No 1024/2012.

3.  Member States shall ensure that information recorded in IMI is kept up to date and they shall inform each other about the changes of previous information communicated in accordance with Regulation (EU) No 1024/2012.

Article 29

Reporting and review [Am. 127]

-1.   On a yearly basis Member States shall share with the Commission and the ECBA committee referred to in Article 30, to the extent possible through digital tools, a list of ECBAs registered in their territory, aggregated data concerning those ECBAs, as well as information with regard to:

(a)   any measures adopted or updated by Member States on grounds of public policy and public security to prevent the risk of misuse of non-profit associations and to ensure transparency in relation to certain capital movements, as referred to in Article 4(3),

(b)   national rules restricting an ECBA’s right to determine its rules of operation, as referred to in Article 6(1),

(c)   cases where additional requirements for registration were imposed on ECBAs, in accordance with Article 12(2),

(d)   cases where restrictions on funding were imposed on an ECBA, in accordance with Article 13(2),

(e)   cases where restrictions on the provision of services and trade in goods were imposed on an ECBA, in accordance with Article 14(2),

(f)   cases where additional documents or information were requested, in accordance with Article 18(3),

(g)   cases where registration was refused, in accordance with Article 19(4),

(h)   cases where the transfer of a registered office was refused in accordance with Article 22(4) or Article 23(5), and

(i)   cases of involuntary dissolution as referred to in Article 27.

The Commission shall publish the list of all registered ECBAs on a publicly available website. [Am. 128]

1.   By ... [sevenfive years after transposition deadline] at the latest, and every five years thereafter, the Commission shall report to the European Parliament and to the Council on the transposition and application of this Directive. To that end, the Commission may request, to the extent possible through digital tools, Member States to share aggregated data concerningThe report shall be preceded by a consultation of relevant stakeholders, including ECBAs registered in their territory.and other relevant non-profit organisations, and shall include in particular: [Am. 129]

(a)   an overview of the number and geographical spread of ECBAs in the EU; [Am. 130]

(b)   an evaluation of the adequacy and effectiveness of the Directive with regard to the goals pursued, including an assessment of the impact of this directive on the functioning of the internal market; [Am. 131]

(c)   an assessment of the relevant legal, technical and economic developments affecting non-profit associations, and [Am. 132]

(d)   an assessment of possible benefits and the feasibility of harmonising at Union level the transparency requirements and recognition and granting of a public benefit status, in particular to ECBAs; [Am. 133]

Where appropriate, the report shall be accompanied by a legislative proposal for amending this Directive. [Am. 134]

Article 29a

ECBA Committee

1.   The Commission shall be assisted by a Committee called the ECBA Committee. That Committee shall be a committee within the meaning of Article 3(2) of the Regulation (EU) No 182/2011.The Committee shall establish its own rules of procedure and adopt and organise its own operational arrangements.

2.   The Committee shall monitor the implementation of this Directive, in particular with regard to the provisions that make reference to Article 29(-1). It shall promote the exchange of information, experience and best practices as well as the coordination of policy approaches among national governments, competent authorities, and the Commission.

3.   The Committee may prepare reports, formulate opinions, develop guidelines or undertake other work within its fields of competence, and shall, as appropriate, have regular contacts and exchanges with other relevant bodies and committees as well as relevant stakeholders.

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

5.   The Commission shall inform the Council and the European Parliament about the activities of the Committee on an annual basis. [Am. 135]

Chapter 7

Final provisions

Article 30

Committee procedure

1.   The Commission shall be assisted by a Committee. That Committee shall be a committee within the meaning of Article 3(2) of the Regulation (EU) No 182/2011.

2.   Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. [Am. 136]

Article 31

Transposition

1.  Member States shall adopt and publish, including online, the laws, regulations, and administrative provisions necessary to comply with this Directive by [2 years... [1 year from the entry into force of this Directive]. They shall immediately communicate the text of those measures to the Commission. [Am. 137]

1a.   Member States shall provide information to and consult with non-profit organisations established, registered or operating in their territory prior to and during the transposition and implementation of the provisions of this Directive as well as the revision of relevant national provisions. [Am. 138]

2.  When Member States adopt those measures pursuant to paragraph 1, they shall contain a reference to this Directive or shall be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made and how that statement is to be formulated. [Am. 139]

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

Article 32

Entry into force

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

Article 33

Addresses

This Directive is addressed to the Member States.

Done at …,

For the European Parliament For the Council

The President The President

(1) OJ C, C/2024/4061, 12.7.2024, ELI: http://data.europa.eu/eli/C/2024/4061/oj. (2) A statute for European cross-border associations and non-profit organisations. European Parliament resolution of 17 February 2022 with recommendations to the Commission on a statute for European cross-border associations and non-profit organisations (2020/2026(INL)) (2022/C 342/17) (OJ C 342, 6.9.2022, p. 225). (3) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, ‘Building an economy that works for people: an action plan for the social economy’, COM(2021) 778 final. (4) European Parliament resolution of 6 July 2022 on the EU action plan for the social economy (2021/2179(INI)). (5) Proposal for a Council Recommendation on developing social economy framework conditions COM(2023) 316 final. (6) Commission Staff Working Document, Relevant taxation frameworks for Social Economy Entities, SWD(2023) 211 final. (7) Commission Staff Working Document, Non-discriminatory taxation of charitable organisations and their donors: principles drawn from EU case-law, SWD(2023) 212 final. (8) Judgment of the Court of Justice of 10 June 2020, Commission v. Hungary, C-78/18, ECLI:EU:C:2020:476. (9) Regulation (EU, Euratom) No 1141/2014 of the European Parliament and of the Council of 22 October 2014 on the statute and funding of European political parties and European political foundations (OJ L 317, 4.11.2014, p. 1). (10) Directive (EU) 2018/1673 of the European Parliament and of the Council of 23 October 2018 on combating money laundering by criminal law (OJ L 284, 12.11.2018, p. 22). (11) Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market (OJ L 376, 27.12.2006, p. 36). (12) COM(2022)720. (13) 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 (OJ L 119, 4.5.2016, p.1). (14) 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). (15) Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on administrative cooperation through the Internal Market Information System and repealing Commission Decision 2008/49/EC (OJ L 316, 14.11.2012, p. 1). (16) Directive 2002/14/EC of the European Parliament and of the Council of 11 March 2002 establishing a general framework for informing and consulting employees in the European Community - Joint declaration of the European Parliament, the Council and the Commission on employee representation (OJ L 80. 23.3.2002, p. 39). (17) Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (EIR 2105), OJ L 141, 5.6.2015, p. 19. (18) 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, 28.02.2011, p. 13. (19) Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 establishing a single digital gateway to provide access to information, to procedures and to assistance and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, p. 1). (20) Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law (OJ L 169, 30.06.2017, p.46).