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From · opinion parliamentary committee · 2023-06-15 ITRE-AD-745415 on the proposal for a regulation of the European Parliament and of the Council establishing a Single Market emergency instrument and repealing Council Regulation No (EC) 2679/98

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To · opinion parliamentary committee · 2023-07-03 EMPL-AD-745211 on the proposal for a regulation of the European Parliament and of the Council establishing a Single Market emergency instrument and repealing Council Regulation No (EC) 2679/98

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PA_Legam

~~SHORT JUSTIFICATION~~

~~1. Introduction~~

The COVID-19 crisis and Russia’s illegal war in Ukraine have presented unprecedented and unique challenges for the Union. As Europe emerges from the crisis, it seeks to learn lessons and put in place mechanisms for dealing with a crisis, and preventing and preparing for one.

Crises can often birth multiple crises: threat to life, economic harm, restrictions to freedom of movement, damage to competitiveness, and vulnerabilities to law and order. Therefore, the “Single Market Emergency Instrument” aims to provide measures and fora for better cooperation and information exchange between Member States and economic operators.

~~2. The Draft Opinion~~

The Single Market has been one of the greatest achievements and assets in the history of the EU, and has created a path to prosperity and growth for many Member States. The Rapporteur fully supports the objective to provide the Single Market with tools to ensure greater resilience and protection – “fail to prepare and prepare to fail”.

When it comes to crisis, prevention will always be better than cure. This therefore, places particular importance upon the role of the Advisory Group in providing foresight and conducting broad and meaningful consultation with representatives of economic operators, stakeholder organisations and experts. Such an approach will help enable the Single Market to safeguard and ensure the continuity of its most precious commodity – the four freedoms.

It is essential the Regulation provide a clear and precise framework of measures that focus on increasing cooperation, communication, and preparedness among Member States and economic operators. It must help ensure business continuity, limit industrial disruption, and make sure the heavy hand of market intervention is a last resort.

Any measures adopted must ensure that they both help protect the functioning of the Single Market, while enabling the Union to be competitive, innovative, agile, and an attractive place to invest. According to the competences of the ITRE Committee, the Rapporteur has focused on the following Articles:

~~A: Activation:~~

~~Clarity, precision, and proportionality are essential for Member States, economic operators, and workers regarding the vigilance and emergency stage measures.~~

The vigilance mode should be activated once there is clear evidence and justification for it. Given the serious measures to be taken during this phase, ensuring there are checks and balances in place when activating the mode is essential – including the involvement of the Advisory Group, the drafting of a Single Market Crisis Protection Report and, if necessary, a vote.

The end of the vigilance mode should also provide for reflection, to improve its use in the future. Therefore, a review should be carried out. Extending or deactivating the Vigilance Mode requires further clarity and safeguards around the decision-making process. This is particularly critical for when the prolongation is used as a preventative measure for triggering the Emergency Framework, or if there is a need to end the Vigilance Mode early. To ensure coherence, the Rapporteur has merged Articles 9 and 10.

~~B: Strategic Reserves:~~

Given the potentially serious and significant impact on the Single Market, free trade, and business continuity of building strategic reserves, the Rapporteur has sought to include important checks and balances.

There should be a greater role for the Advisory Group to ensure a streamlined, communicative, and collaborative approach in building strategic reserves. Solidarity and effective action can best be secured by ensuring as much transparency and proportionality as possible in the actions taken.

The Rapporteur introduces a new article on ‘Long-Term Strategic Reserve Planning’. This provision utilises a review procedure to provide recommendations as to the necessity and usefulness of Member States and the Commission establishing a long-term plan for maintaining a permanent or phased reserve of goods of strategic importance. This will assist with preventing future shortages and the activation of the vigilance or crisis mode.

~~C: Priority Rated Orders and Procurement:~~

There may be occasions when priority rated orders are necessary. However, it is essential that there is a clear process that protects the integrity of the Single Market, the economic health of economic operators, and the future competitiveness of the Union.

It is vital that when priority rated orders are requested, that they are a measure of last resort. Full and due consideration must be given to the ability of, and impact on, economic operators to carry out the order.

Given the significant market intervention that priority orders represent, it is essential that there is a right to be heard by economic operators, and a larger role for scrutiny, approval, and the resolution of disagreements, for the Advisory Group and economic operators.

~~D: Digital Tool:~~

It is the intention that digital tools shall support the objectives of this Regulation. Therefore, it is important that the Commission ensure sufficient resources and budget for these tasks are provided, and that high levels of data protection and cybersecurity are applied.

~~There should also be a focus on interoperability and usability, in particular for SMEs and citizens.~~

AMENDMENTS

The Committee on ~~Industry, Research~~Employment and ~~Energy~~Social Affairs calls on the Committee on the Internal Market and Consumer Protection, as the committee responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulation

~~Recital 8~~

Title 1

Text proposed by the Commission

Amendment

Proposal for a

(8) The framework of measures set out under this Regulation should be deployed in a coherent, transparent, efficient, proportionate and timely manner, having due regard to the need to maintain vital societal functions, meaning including public security, safety, public order, or public health respecting, the responsibility of the Member States to safeguard national security and their power to safeguard other essential state functions, including ensuring the territorial integrity of the State and maintaining law and order. The Regulation should not restrict national measures on security and defence policy. National defence capabilities must be taken into account when applying proportionate measures in the event of a crisis.

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing a Single Market emergency instrument and repealing Council Regulation No (EC) 2679/98

establishing a Single Market emergency instrument and amending Council Regulation No (EC) 2679/98

(Text with EEA relevance)

Amendment 2

Proposal for a regulation

~~Recital 9 – indent 3~~

Recital -1 (new)

Text proposed by the Commission

Amendment

~~– the means for the timely accessibility and availability of the information which is needed for a targeted response and adequate market behaviour by businesses and citizens during a crisis.~~

(-1) In accordance with the Treaties, Member States have an obligation to ensure the proper functioning of the Single Market. They should therefore abstain from adopting measures that are contrary to the free movement of goods, services and persons, and they should take all necessary measures to facilitate the free movement of goods, services or persons.

– the means for the timely accessibility and availability of the information which is needed for a targeted response and adequate market behaviour by businesses, workers, and citizens during a crisis.

Amendment 3

Proposal for a regulation

~~Recital 24 a (new)~~

Recital 1

Text proposed by the Commission

Amendment

(24a) Highlights the importance of the Advisory Group in providing strategic foresight and conducting broad and comprehensive consultations with economic operators, social partners, stakeholder organisations and experts, for the purpose of preventing and tackling a crisis.

(1) Past crises, especially the early days of the COVID-19 pandemic, have shown that the internal market (also referred to as the Single Market and its supply chains can be severely affected by such crises, and appropriate crisis management tools and coordination mechanisms are either lacking, do not cover all aspects of the Single market or do not allow for a timely response to such impacts.

(1) Past crises, especially the early days of the COVID-19 pandemic, have shown that the internal market (also referred to as the Single Market), its supply chains, businesses, workers and consumers can be severely affected by such crises, that the free movement of goods, services and people are not sufficiently safeguarded despite being laid down in the Treaties and that appropriate, harmonised crisis management tools and coordination mechanisms are either lacking, do not cover all aspects of the Single Market or do not allow for a timely and effective response to such impacts.

Amendment 4

Proposal for a regulation

~~Recital 32~~

Recital 1 a (new)

Text proposed by the Commission

Amendment

(32) Additionally, to ensure that crisis-relevant goods are available during the Single Market emergency, the Commission may invite the economic operators that operate in crisis-relevant supply chains to prioritise the orders of inputs necessary for the production of final goods that are crisis relevant, or the orders of such final goods themselves. Should an economic operator refuse to accept and prioritise such orders, following objective evidence that the availability of crisis-relevant goods is indispensable, the Commission may decide to invite the economic operators concerned to accept and prioritise certain orders, the fulfilment of which will then take precedence over any other private or public law obligations. In the event of failure to accept, the operator in question should explain its legitimate reasons for declining the request. The Commission may make such reasoned explanation or parts of it public, with due regard to business confidentiality.

(1a) During the COVID-19 pandemic, the sectors most concerned were characterised by a high dependence on mobile workers, including frontier and cross-border workers. These workers, who played an essential role to keep the European economy going, were particularly affected by uncoordinated measures restricting the free movement of persons. They were often left without adequate support when exercising their freedom of movement, faced heavy administrative burden and suffered from a lack of information about measures taken and their duration. The restrictions to the free movement exacerbated obstacles faced by mobile workers, including frontier and cross-border workers. While some could not cross borders to access their workplace, others were forced to spend months in the Member State of their employer without the possibility to return to their Member State of residence or that of their families due to travel restrictions and legal obstacles preventing them to work remotely.

(32) Additionally, to ensure crisis-relevant goods are available during the Single Market emergency, the Commission, after consulting the Advisory Group, may invite the economic operators that operate in crisis-relevant supply chains to prioritise the orders of inputs necessary for the production of final goods that are crisis relevant, or the orders of such final goods themselves. Should an economic operator not accept the priority rated order, they shall provide legitimate reasons as to why the request cannot be carried out.

Amendment 5

Proposal for a regulation

Recital 352

Text proposed by the Commission

Amendment

(35) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards the possibility to adopt supportive measures for facilitating free movement of persons, for establishing a list of individual targets (quantities and deadlines) for those strategic reserves that the Member States should maintain, so that the objectives of the initiative are achieved. Furthermore, implementing powers should be conferred on the Commission as regards activating the vigilance mode and vigilance measures in order to carefully monitor the strategic supply chains and coordinate the building up of strategic reserves for goods and services of strategic importance. Moreover, implementing powers should be conferred on the Commission as regards activation of specific emergency response measures at the time of a Single Market emergency, to allow for a rapid and coordinated response. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.

(2) The Union was not sufficiently prepared to ensure efficient manufacturing, procurement and distribution of crisis-relevant non-medical goods such as personal protective equipment, especially in the early phase of the COVID-19 pandemic and the ad-hoc measures taken by the Commission in order to re-establish the functioning of the Single Market and to ensure the availability of crisis-relevant non-medical goods during the COVID-19 pandemic were necessarily reactive The pandemic also revealed insufficient overview of manufacturing capacities across the Union as well as vulnerabilities related to the global supply chains.

(35) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards the possibility to adopt supportive measures for facilitating free movement of persons, for establishing a list of strategic reserves that the Member States should maintain, so that the objectives of the initiative are achieved. Furthermore, implementing powers should be conferred on the Commission as regards activating the vigilance mode and vigilance measures in order to carefully monitor the strategic supply chains and coordinate the building up of strategic reserves for goods and services of strategic importance. Moreover, implementing powers should be conferred on the Commission as regards activation of specific emergency response measures at the time of a Single Market emergency, to allow for a rapid and coordinated response. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.

(2) The Union was not sufficiently prepared to ensure efficient manufacturing, procurement and distribution of crisis-relevant non-medical goods such as personal protective equipment, especially in the early phase of the COVID-19 pandemic and the ad-hoc measures taken by the Commission in order to re-establish the functioning of the Single Market and to ensure the availability of crisis-relevant non-medical goods during the COVID-19 pandemic were necessarily reactive. The pandemic also revealed insufficient overview of manufacturing capacities across the Union as well as vulnerabilities related to the global supply chains including lack of resilience and dependency on authoritarian regimes.

Amendment 6

Proposal for a regulation

~~Recital 39 a (new)~~

Recital 3

Text proposed by the Commission

Amendment

(39a) The success of digital tools and their development will depend on the close collaboration between the Commission and Member States, in order to ensure Union wide interoperability of such tools, and where possible and necessary, a common user interface integrated into the existing services, such as Your Europe portal.

(3) Actions by the Commission were delayed by several weeks due to the lack of any Union wide contingency planning measures and of clarity as to which part of the national administration to contact to find rapid solutions to crisis-related impacts on the Single Market. In addition it became clear that uncoordinated restrictive actions taken by the Member States further aggravated the impacts of the crisis on the Single market. It emerged that in order to ensure predictability, there is a need for clear and transparent rules and arrangements between the Member States and Union authorities as well as social partners and other stakeholders as regards contingency planning, technical level coordination and cooperation and information exchange. Social partners play a key role in supporting coordination efforts and the elaboration and implementation of emergency measures, including when it comes to dissemination of relevant information to workers, businesses and economic operators.

Amendment 7

Proposal for a regulation

~~Article 3 – paragraph 1 – point 1~~

Recital 4

Text proposed by the Commission

Amendment

~~(1) ‘crisis’ means an exceptional unexpected and sudden, natural or man-made event of extraordinary nature and scale that takes place inside or outside of the Union;~~

(4) Representative organisations of economic operators have suggested that economic operators did not have sufficient information on the crisis response measures of the Member States during the pandemics, partly due to not knowing where to obtain such information, partly due to language constraints and the administrative burden implied in making repeated inquiries in all the Member States, especially in a constantly changing regulatory environment. This prevented them from making informed business decisions as to what extent they may rely on their free movement rights or continue cross-border business operations during the crisis. It is necessary to improve the availability of information on national and Union level crisis response measures

(1) ‘crisis’ means an exceptional unexpected and sudden, natural or man-made event of extraordinary nature and scale that takes place inside or outside of the Union; that may have a detrimental effect to the functioning of the Single Market, including a significant disruption of supply chains and the freedom of movement of goods, capital, people, and services.

(4) Representative organisations of economic operators, trade unions and employers have suggested that economic operators, workers and businesses did not have sufficient information on the crisis response measures of the Member States during the pandemics, partly due to not knowing where to obtain such information, partly due to language constraints and the administrative burden implied in making repeated inquiries in all the Member States, especially in a constantly changing regulatory environment. This prevented them from making informed decisions as to what extent they may rely on their free movement rights and/or continue cross-border business operations during the crisis. It is necessary to improve the availability of information on national and Union level crisis response measures.

Amendment 8

Proposal for a regulation

~~Article 3 – paragraph 1 – point 7 a (new)~~

Recital 5

Text proposed by the Commission

Amendment

(7a) ‘economic operator’ means the manufacturer, authorised representative, importer, distributor, service provider or any other natural or legal person who is subject to obligations in relation to the provision of a service or the manufacture of products, and making them available on the market or putting them into service;

(5) These recent events have also highlighted the need for the Union to be better prepared for possible future crises, especially as we consider the continuing effects of climate change and resulting natural disasters as well as global economic and geopolitical instabilities. Given the fact that it is not known which kind of crises could come up next and produce severe impacts on the Single Market and its supply chains in the future, it is necessary to provide for an instrument that would apply with regards to impacts on the Single Market of a wide range of crises.

(5) These recent events have also highlighted the need for the Union to be better prepared for possible future crises, especially considering the continuing aggravating effects of climate change and resulting natural disasters as well as global economic and geopolitical instabilities. Given the fact that it is not known which kind of crises could come up next and produce severe impacts on the Single Market and its supply chains in the future, it is necessary to provide for an a crisis instrument that would strengthen resilience, improve transparency, and provide clear rules for crisis governance that would apply to the free movement of goods, services and persons with regards to disruptions of the Single Market.

Amendment 9

Proposal for a regulation

~~Article 3 a (new)~~

Recital 7

Text proposed by the Commission

Amendment

~~Article3a~~

~~Emergency and Resilience Dialogue~~

(7) Since any specific aspects of future crises that would impact the Single Market and its supply chains are hard to predict, this Regulation should provide for a general framework for anticipating, preventing, preparing for, mitigating and minimising the negative impacts which any crisis may cause on the Single Market and its supply chains while ensuring that any crises related emergency response fully respects fundamental human rights and workers’ rights and safeguards and facilitates the free movement of goods, services and persons in line with the Treaties.

In order to enhance the dialogue between the institutions of the Union, in particular the European Parliament, the Council and the Commission, in relation to resilience and the effective response to crises and to ensure greater transparency and accountability, the competent committee of the European Parliament may invite the President of the Council and Commission to appear before the committee to discuss:

~~(a) exchanges of information on all matters falling within the scope of this Regulation;~~

~~(b) opinions, recommendations and reports adopted by the Advisory Group;~~

~~(c) crisis protocols and their implementation and their affect on industry and notifications of significant incidents;~~

(d) the activation of the vigilance mode, its extension and deactivation, and the vigilance measures pursuant to Part III of this Regulation, and notifications submitted by the Member States during the vigilance mode;

~~(e) the outcome of the internal market protection and resilience assessments report under Article 9 of this Regulation.~~

~~(f) the activation of the emergency mode, its extension and deactivation, and the measures for upholding, re-establishing and facilitating the free movement of goods, services and persons;~~

~~(g) priority rated orders pursuant to Article 27 of this Regulation;~~

~~(h) the procurement of goods and services of strategic importance and crisis-relevant goods;~~

~~(i) any further initiatives, decisions or measures taken under this regulation. 2.~~

The competent committee of the European Parliament may offer the opportunity to a concerned Member State to participate in an exchange of views. 3. The Council and the Commission shall regularly inform the European Parliament of the application of this Regulation.

Amendment 10

Proposal for a regulation

~~Article 4 – paragraph 2~~

Recital 8

Text proposed by the Commission

Amendment

~~2. The advisory group shall be composed of one representative from each Member State. Each Member State shall nominate a representative and an alternate representative.~~

2. The advisory group shall be composed of one representative from each Member State and a representative of the European Parliament. Each Member State shall nominate a high-level representative and an alternate representative.

(8) The framework of measures set out under this Regulation should be deployed in a coherent, transparent, efficient, proportionate and timely manner, having due regard to the need to maintain vital societal functions, meaning including public security, public safety, public order, or public health while respecting the responsibility of the Member States to safeguard national security and their power to safeguard other essential state functions, including ensuring the territorial integrity of the State and maintaining law and order. The framework should also recognise the important role played by social partners in elaborating and implementing contingency measures and ensure full respect for collective bargaining rights and the autonomy of social partners.

Amendment 11

Proposal for a regulation

~~Article 4 – paragraph 3~~

Recital 9 – indent 1

Text proposed by the Commission

Amendment

3. The Commission shall chair the advisory group and ensure its secretariat. The Commission may invite a representative of the European Parliament, representatives of EFTA States that are contracting parties to the Agreement on the European Economic Area49 , representatives of economic operators, stakeholder organisations, social partners and experts, to attend meetings of the advisory group as observers. It shall invite the representatives of other crisis-relevant bodies at Union level as observers to the relevant meetings of the advisory group.

— the necessary means to ensure the continued functioning of the Single Market, the businesses that operate on the Single Market and its strategic supply chains, including the free circulation of goods, services and persons in times of crisis and the availability of crisis relevant goods and services to citizens, businesses and public authorities at the time of crisis;

3. The Commission shall chair the advisory group and ensure its secretariat. The Commission may invite representatives of EFTA States that are contracting parties to the Agreement on the European Economic Area49, representatives of economic operators, stakeholder organisations, social partners and experts, to attend meetings of the advisory group as observers. It shall invite the representatives of other crisis-relevant bodies at Union level as observers to the relevant meetings of the advisory group.

— the necessary means to ensure the continued functioning of the Single Market also in times of crisis, both for businesses that operate on the Single Market and their strategic supply chains, including the free movement of goods, services and persons under safe conditions, in times of crisis and the availability of crisis relevant goods and services to citizens, businesses and public authorities, while ensuring workers’ rights and occupational health and safety;

~~_________________~~

~~49 OJ L 1, 3.1.1994, p. 3.~~

Amendment 12

Proposal for a regulation

~~Article 4 – paragraph 5 – point c~~

Recital 9 – indent 2

Text proposed by the Commission

Amendment

~~(c) consulting the representatives of economic operators, including SMEs, and industry to collect market intelligence;~~

— a forum for adequate coordination, cooperation and exchange of information; and

~~(c) consulting the representatives of economic operators, including SMEs, social partners, and industry to collect market intelligence;~~

— a forum for adequate coordination, cooperation and exchange of information also in view of speeding up administrative procedures, such as declarations, registrations and authorisations, while using the full potential of digital tools; and

Amendment 13

Proposal for a regulation

~~Article 4 – paragraph 5 – point f~~

Recital 9 – indent 3

Text proposed by the Commission

Amendment

~~(f) maintaining a repository of national and Union crisis measures that have been used in previous crises that have had an impact on the Single Market and its supply chains~~

— the means for the timely accessibility and availability of the information which is needed for a targeted response and adequate market behaviour by businesses and citizens during a crisis.

~~deleted~~

— the means for the timely accessibility and availability of the information which is needed for a targeted response and adequate market behaviour by businesses, workers and citizens during a crisis.

Amendment 14

Proposal for a regulation

~~Article 4 – paragraph 5 – point f a (new)~~

Recital 10

Text proposed by the Commission

Amendment

(fa) Identify supply chains, and crisis goods and services within the Single Market that are of strategic importance and necessary for the maintenance of vital societal or economic activities. This task shall be performed as part of the crisis preparedness and single market protection report drawn up in article 9.

(10) Where possible, this Regulation should allow for anticipation of events and crises, building on on-going analysis concerning strategically important areas of the Single Market economy and the Union’s continuous foresight work.

(10) Where possible, this Regulation should allow for anticipation and prevention of events and crises, building on on-going analysis concerning strategically important areas of the Single Market economy and the Union’s continuous foresight work.

Amendment 15

Proposal for a regulation

~~Article 4 – paragraph 9~~

Recital 17

Text proposed by the Commission

Amendment

~~9. The advisory group may adopt opinions, recommendations or reports in the context of its tasks set out in paragraphs 4 to 6.~~

(17) Article 21 TFEU lays down the right of EU citizens to move and reside freely within the territory of the Member States, subject to the limitations and conditions laid down in the Treaties and the measures adopted to give them effect. The detailed conditions and limitations are laid down in Directive 2004/38/EC. This Directive sets out the general principles applicable to these limitations and the grounds that may be used to justify such measures. These grounds are public policy, public security or public health. In this context, restrictions to freedom of movement can be justified if they are proportionate and non-discriminatory. This Regulation is not intended to provide for additional grounds for the limitation of the right to free movement of persons beyond those provided for in Chapter VI of Directive 2004/38/EC.

9. The advisory group may adopt opinions, recommendations or reports in the context of its tasks set out in paragraphs 4 to 6. The minutes of the Advisory Group meetings shall be made available to the Council and the European Parliament as soon as they have been approved.

(17) Article 21 TFEU lays down the right of EU citizens to move and reside freely within the territory of the Member States, subject to the limitations and conditions laid down in the Treaties and the measures adopted to give them effect. The detailed conditions and limitations are laid down in Directive 2004/38/EC. This Directive sets out the general principles applicable to these limitations and the grounds that may be used to justify such measures. Member States shall refrain from introducing restrictions on the free movement of Union citizens and their family members and of third-country nationals legally staying or residing in the territories of the Member States as well as refugees and beneficiaries of international protection on grounds of public policy, public security and public health that are directly discriminatory. This Regulation is not intended to provide for additional grounds for the limitation of the right to free movement of persons beyond those provided for in Chapter VI of Directive 2004/38/EC.

Amendment 16

Proposal for a regulation

~~Article 4 – paragraph 9 a (new)~~

Recital 18

Text proposed by the Commission

Amendment

9a. The Advisory Group shall ensure confidentiality of information and data obtained in carrying out their tasks and activities in such a manner as to protect intellectual property rights, commercially sensitive data, and trade secretes as defined in EU Law.

(18) As regards the measures for re-establishing and facilitating free movement of persons and any other measures affecting the free movement of persons provided under this Regulation, they are based on Article 21 TFEU and complement Directive 2004/38/EC without affecting its application at the time of Single Market emergencies. Such measures should not result in authorising or justifying restrictions to free movement contrary to the Treaties or other provisions of Union law.

(18) As regards the measures for ensuring and facilitating free movement of persons and any other measures affecting the free movement of persons provided under this Regulation, they are based on Article 21 TFEU and complement Directive 2004/38/EC without affecting its application at the time of Single Market emergencies. Such measures should not result in authorising or justifying restrictions to free movement contrary to the Treaties or other provisions of Union law.

Amendment 17

Proposal for a regulation

~~Article 4 – paragraph 9 b (new)~~

Recital 19

Text proposed by the Commission

Amendment

9b. In order to enhance the dialogue between the institutions of the Union in the context of the Single Market Emergency Instrument, and to ensure greater transparency, accountability and coordination, the competent committee of the European Parliament may invite the Commission in its capacity as Chair of the Advisory Group to appear before the committee to provide information on all matters falling within the scope of this regulation.

(19) Article 45 TFEU lays down the right to free movement of workers, subject to the limitations and conditions laid down in the Treaties and the measures adopted to give them effect. This Regulation contains provisions, which complement the existing measures in order to safeguard and facilitate the free movement of persons, including workers, under safe conditions, to increase transparency and to provide adequate and timely information as well as administrative assistance during Single Market emergencies. Such measures should provide that essential and crisis relevant workers exercising their freedom of movement during a Single Market emergency are guaranteed the same level of protection in terms of health and safety as local workers active in the relevant sector in the host Member State. They should also include setting up and making available of the single points of contact to workers and their representatives in the Member States and at Union level during the Single Market vigilance and emergency modes under this regulation. The Commission and the Member States are encouraged to use existing structures for the operation of these contact points. Such contact points should be active even outside the emergency mode and facilitate communication between the Member States and with the advisory board. The information provided by the contact point should be clear, understandable and accessible to persons with disabilities.

Amendment 18

Proposal for a regulation

~~Article 4 – paragraph 9 c (new)~~

Recital 19 a (new)

Text proposed by the Commission

Amendment

~~9c. The Commission shall ensure that the European Parliament is regularly informed regarding the application of this Regulation.~~

(19a) In order to facilitate cross-border measures to maintain or reinforce the free movement of workers, the Commission should make full use of digital tools to facilitate cross-border management and coordination of social security rights and obligations. Special attention should be paid to the most affected workers especially mobile workers, including frontier and cross- border workers as well as workers who are able to work remotely but have to do so from a particular Member State.

Amendment 19

Proposal for a regulation

~~Article 6 – paragraph 2 – point b~~

Recital 20

Text proposed by the Commission

Amendment

(b) consultation of the representatives of economic operators and social partners, including SMEs, on their initiatives and actions to mitigate and respond to potential supply chain disruptions and overcome potential shortages of goods and services in the Single Market;

(20) If Member States adopt measures affecting free movement of goods or persons, goods or the freedom to provide services in preparation for and during Single Market emergencies, they should limit such measures to what is necessary and remove them as soon as the situation allows it. Such measures should respect the principles of proportionality and non-discrimination and should take into consideration the particular situation of border regions.

(20) Citizens, workers, consumers and businesses depend on a well-functioning Single Market and on the freedom of movement under safe conditions also in times of crisis. Member States should refrain from adopting measures affecting the free movement of goods or persons, or the freedom to provide services unless justified on grounds of legitimate public policy, public security or public health and proportionate for the objective pursued. Any such measures should therefore be proportionate and non-discriminatory. Member States should limit such measures to what is necessary and remove them as soon as the situation allows it. Such measures should respect the Treaties, Union law and international obligations on fundamental human rights and should take into consideration the particular situation of border regions and of sectors that are notably dependent on mobile workers, including frontier and cross-border workers. Any measure restricting the free movement should have no longer legal effect when the emergency mode is deactivated.

Amendment 20

Proposal for a regulation

~~Article 8 – paragraph 3 – point a~~

Recital 20 a (new)

Text proposed by the Commission

Amendment

~~(a) the number of economic operators affected by the disruption or potential disruption;~~

(20a) In the light of digitalisation and its cross-border impacts on the Single Market and the EU labour market, special consideration needs to be given to teleworking arrangements. In particular, in cases of restrictions to the free movement of workers, special attention should be paid to the question of whether mobile workers, including cross borders and frontier workers, are able to carry out their tasks remotely or not. In order to avoid discrimination, workers for whom cross-border telework is not feasible, for example due to the nature of their tasks and responsibilities, should not be subject to undue restrictions to their freedom of movement as long as their health and safety can be ensured. To ensure the equal treatment of workers when exercising their freedom of movement, Member States should allow mobile and cross-border workers to continue crossing their borders to reach their workplace if work in the sector concerned is still allowed in the receiving Member State.

~~(a) the number of economic operators and workers affected by the disruption or potential disruption;~~

Amendment 21

Proposal for a regulation

~~Article 9 – paragraph 1 – introductory part~~

Recital 21

Text proposed by the Commission

Amendment

1. Where the Commission, taking into consideration the opinion provided by the advisory group, considers that the threat referred to in Article 3(2) is present, it shall activate the vigilance mode for a maximum duration of six months by means of an implementing act. Such an implementing act shall contain the following:

(21) The activation of the Single Market emergency mode should trigger an obligation for the Member States to notify crisis-relevant free movement restrictions.

1. Where the Commission becomes aware that the threat referred to in Article 3, point (2) is present, the Commission shall consult with the Advisory Group and provide concrete and reliable evidence as to the need to activate the Vigilance Mode. The Commission shall propose to the Council to activate the Vigilance Mode for a maximum of six months.

(21) The activation of the Single Market emergency mode should trigger an obligation for the Member States to notify any crisis-relevant free movement restrictions without undue delay, including a justification of its necessity and proportionality. Social partners should be consulted regarding any emergency measure having an impact on the labour market. A close cooperation with social partners can also facilitate the implementation of such measures and information provision to workers, businesses and economic operators.

~~The Council, acting by qualified majority, may activate the vigilance mode by means of a Council implementing act.~~

Amendment 22

Proposal for a regulation

~~Article 9 – paragraph 1 – point a~~

Recital 22

Text proposed by the Commission

Amendment

~~(a) an assessment of the potential impact of the crisis;~~

(22) When examining the compatibility of any notified draft or adopted measures with the principle of proportionality, the Commission should pay due regard to the evolving crisis situation and often limited information that is at the disposal of the Member States when they seek to reduce the emerging risks in the context of the crisis. Where justified and necessary in the circumstances, the Commission may consider based on any available information, including specialised or scientific information, the merits of Member State arguments relying on the precautionary principle as a reason for adoption of free movement of persons restrictions. It is the task of the Commission to ensure that such measures comply with Union law and do not create unjustified obstacles to the functioning of the Single Market. The Commission should react to the notifications of Member States as quickly as possible, taking into account the circumstances of the particular crisis, and at the latest within the time-limits set out by this Regulation.

~~deleted~~

(22) When examining the necessity and the compatibility of any notified draft or adopted measures with the principle of proportionality and non-discrimination, the Commission should consult with stakeholders, such as social partners, regarding the impact on the labour market. The Commission should assess the merits of Member State arguments including those relying on the precautionary principle enshrined in Article 191 TFEU as a reason for adoption of restrictions of the free movement of persons. It is the task of the Commission to ensure that such measures fully comply with the Treaties and Union law and do not create unjustified obstacles to the functioning of the Single Market and to the right to free movement. The Commission should react to the notifications of Member States as quickly as possible, taking into account the circumstances of the particular crisis, and at the latest within the time-limits set out by this Regulation.

Amendment 23

Proposal for a regulation

~~Article 9 – paragraph 1 – point b~~

Recital 23

Text proposed by the Commission

Amendment

~~(b) list of the goods and services of strategic importance concerned, and~~

(23) In order to ensure that the specific Single Market emergency measures provided for in this Regulation are used only where this is indispensable for responding to a particular Single Market emergency, such measures should require individual activation by means of Commission implementing acts, which indicate the reasons for such activation and the crisis-relevant goods or services that such measures apply to.

~~deleted~~

(23) In order to ensure that the specific Single Market emergency measures provided for in this Regulation are used only where this is indispensable for responding to a particular Single Market emergency, such measures should require individual activation by means of Commission implementing acts, which indicate the reasons for such activation and how the measures comply with the Treaties, as well as the crisis-relevant goods or services that such measures apply to.

Amendment 24

Proposal for a regulation

~~Article 9 – paragraph 1 – point c~~

Recital 24

Text proposed by the Commission

Amendment

~~(c) the vigilance measures to be taken.~~

(24) Furthermore, in order to ensure the proportionality of the implementing acts and due respect for the role of economic operators in crisis management, the Commission should only resort to the activation of the Single Market emergency mode, where economic operators are not able to provide a solution on a voluntary basis within a reasonable time. Why this is the case should be indicated in each such act, and in relation to all particular aspects of a crisis.

~~deleted~~

(24) Furthermore, in order to ensure the proportionality of the implementing acts and due respect for the autonomy of social partners and the role of economic operators in crisis management, the Commission should only resort to the activation of the Single Market emergency mode, where economic operators or social partners are not able to provide a solution on a voluntary basis within a reasonable time. Why this is the case should be indicated in each such act, and in relation to all particular aspects of a crisis.

Amendment 25

Proposal for a regulation

~~Article 9 – paragraph 2~~

Recital 25

Text proposed by the Commission

Amendment

~~2. The implementing act referred to in paragraph 1 shall be adopted in accordance with the examination procedure referred to in Article 41(2).~~

(25) Information requests to economic operators should be used by the Commission only where the information which is necessary for responding adequately to the Single Market emergency, such as information necessary for procurement by the Commission on behalf of the Member States or estimating the production capacities of manufacturers of crisis-relevant goods the supply chains of which have been disrupted, cannot be obtained from publicly available sources or as a result of information provided voluntarily.

~~deleted~~

(25) Information requests to economic operators should be used by the Commission with due regard to trade secrets in line with Directive 2016/943 only where the information which is necessary for responding adequately to the Single Market emergency, such as information necessary for procurement by the Commission on behalf of the Member States or estimating the production capacities of manufacturers of crisis-relevant goods the supply chains of which have been disrupted, cannot be obtained from publicly available sources or as a result of information provided voluntarily.

Amendment 26

Proposal for a regulation

~~Article 9 – paragraph 2 a (new)~~

Recital 28

Text proposed by the Commission

Amendment

2a. Upon activation of the vigilance mode, the Council implementing act shall be accompanied by a Crisis Preparation and Single Market Protection Report, drawn up by the Commission and the Advisory Group.

(28) In cases where there are substantial risks to the functioning of the Single Market or in cases of severe shortages or an exceptionally high demand of goods of strategic importance, measures at Union level aimed to ensure the availability of crisis-relevant products, such as priority rated orders, may prove to be indispensable for the return to the normal functioning of the Single Market.

~~The report shall lay out:~~

(28) In cases where there are substantial risks to the functioning of the Single Market or in cases of severe shortages or an exceptionally high demand of goods of critical importance, measures at Union level aimed to ensure the availability of crisis-relevant products, such as priority rated orders, may prove to be indispensable for the return to the normal functioning of the Single Market.

~~(a) why the crisis is of critical importance to the Union and its Member States;~~

~~(b) the necessity and proportionality of the vigilance mode;~~

~~(c) the anticipated impact on the Single Market and the period of time before the threat escalates into a Single Market Emergency;~~

~~(d) the potential impact of the crisis on fundamental rights, public health and public security;~~

~~(e) the estimated cost and resources required during the vigilance mode;~~

~~(f) a list of the goods and services of strategic importance whose functioning and/or supply is at risk of being significantly disrupted;~~

~~(g) the specific recommendations for preventive measures and remedial actions;~~

~~(h) which Member States most likely to be affected by the crisis;~~

~~(i) the impact of measures taken on workers and citizens;~~

~~(j) third countries who are involved in the current supply chain under threat.~~

~~The report shall be provided to the European Parliament without undue delay.~~

Amendment 27

Proposal for a regulation

~~Article 9 – paragraph 2 b (new)~~

Recital 30

Text proposed by the Commission

Amendment

2b. If necessary and proportionate, and if the reasons for activating the vigilance mode pursuant to Article 9 (1) are still valid, the Commission, in consultation with the Advisory Group, shall propose to the Council that the vigilance mode shall be extended for a maximum of six months. The Council, acting by qualified majority, may extend the vigilance mode by means of a Council implementing act.

(30) Where there is a severe shortage of crisis-relevant products or services on the Single market during a Single Market emergency, and it is clear that the economic operators that operate on the Single market do not produce any such goods, but would in principle be able to repurpose their production lines or would have insufficient capacity to provide the goods or services needed, the Commission should be able to recommend to the Member States as a last resort to take measures to facilitate or request the ramping up or repurposing of production capacity of manufacturers or the capacity of the service providers to provide crisis-relevant services. In doing so the Commission would inform the Member States as to the severity of the shortage and the type of the crisis-relevant goods or services that are needed and would provide support and advice in relation to the flexibilities in the EU acquis for such purposes.

(30) Where there is a severe shortage of crisis-relevant products or services on the Single market during a Single Market emergency, and it is clear that the economic operators that operate on the Single market do not produce any such goods, but would in principle be able to repurpose their production lines or would have insufficient capacity to provide the goods or services needed, the Commission should be able to recommend to the Member States as a last resort to take measures, strictly limited to what is necessary and only for a limited period of time, to facilitate or request the ramping up or repurposing of production capacity of manufacturers or the capacity of the service providers to provide crisis-relevant services. In doing so, the Commission would inform the Member States, the advisory group and the European Parliament as to the severity of the shortage and the type of the crisis-relevant goods or services that are needed and would provide support and advice in relation to the flexibilities in the EU acquis for such purposes. If any ramping up or repurposing of production capacity of manufacturers have an impact on workers in a company or sector, workers' representatives and trade unions should be informed and consulted before and during the implementation phase.

Amendment 28

Proposal for a regulation

~~Article 9 – paragraph 2 c (new)~~

Recital 35

Text proposed by the Commission

Amendment

2c. An additional Crisis Preparation and Single Market Protection Report shall be produced each time the vigilance mode is extended. The vigilance mode shall not be extended more than twice. The extension of the vigilance mode shall be approved only on the basis of clear evidence as regards the necessity and proportionality of the extension.

(35) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards the possibility to adopt supportive measures for facilitating free movement of persons, including the protection of workers exercising this right, and for establishing a list of individual targets (quantities and deadlines) for those strategic reserves that the Member States should maintain, so that the objectives of the initiative are achieved. Furthermore, implementing powers should be conferred on the Commission as regards activating the vigilance mode and vigilance measures in order to carefully monitor the strategic supply chains and coordinate the building up of strategic reserves for goods and services of strategic importance. Moreover, implementing powers should be conferred on the Commission as regards activation of specific emergency response measures at the time of a Single Market emergency, to allow for a rapid and coordinated response. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.

Amendment 29

Proposal for a regulation

~~Article 9 – paragraph 2 d (new)~~

Recital 36

Text proposed by the Commission

Amendment

2d. When extending the Vigilance Mode, specific consideration shall be given to whether strategic reserves require building further, and whether the extension of the vigilance mode could help to avoid the activation of the emergency mode. The activation of the emergency mode is to be used as a measure of a last resort.

(36) This Regulation respects fundamental rights and observes the principles recognised in particular by the Charter of Fundamental Rights of the European Union (the ‘Charter’). In particular, it respects the right to privacy of the economic operators enshrined in Article 7 of the Charter, right to data protection set out in Article 8 of the Charter, the freedom to conduct business and the freedom of contract, which are protected by Article 16 of the Charter, the right to property, protected by Article 17 of the Charter, right to collective bargaining and action protected by Article 26 of the Charter and the right to an effective judicial remedy and to a fair trial as provided for in Article 47 of the Charter. Since the objective of this Regulation cannot be sufficiently achieved by the Member States and can rather, by reason of the scale or effects of the action, be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective. The Regulation should not affect the autonomy of the social partners as recognised by the TFEU.

(36) This Regulation safeguards the fundamental rights as laid down in the Treaties and observes the principles recognised in particular by the Charter of Fundamental Rights of the European Union (the ‘Charter’) and the right to liberty and security of person (Article 6). In particular, it respects everyone’s right to privacy enshrined in Article 7 of the Charter, the right to data protection set out in Article 8 of the Charter, the freedom to choose an occupation and the right to engage in work as protected by Article 15 of the Charter, the freedom to conduct business and the freedom of contract, which are protected by Article 16 of the Charter, the right to property, protected by Article 17 of the Charter, the right to non-discrimination as protected by Article 21 of the Charter, the right to collective bargaining and action protected by Article 28 of the Charter, the right to fair and just working conditions as protected by Article 31 of the Charter, and the right to an effective judicial remedy and to a fair trial as provided for in Article 47 of the Charter. No emergency measure triggered under this Regulation in response to a crisis on the Single Market should be used to undermine or circumvent fundamental human rights as guaranteed under the Charter or international human rights instruments. Since the objective of this Regulation cannot be sufficiently achieved by the Member States and can rather, by reason of the scale or effects of the action, be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective. The Regulation should not affect the autonomy of the social partners as recognised by the TFEU.

Amendment 30

Proposal for a regulation

~~Article 9 – paragraph 2 e (new)~~

Recital 38

Text proposed by the Commission

Amendment

2e. Where the Commission, after consultation with the advisory group, finds that the threat referred to in Article 3(2) is no longer present, with respect to some or all vigilance measures or for some or all of the goods and services, the Commission shall propose to the Council to deactivate the Single Market vigilance mode. The Council, acting by qualified majority, may deactivate the vigilance mode by means of a Council implementing act.

(38) The Union framework shall include interregional elements to establish coherent, multi-sectoral, cross-border Single Market vigilance and emergency response measures, in particular considering the resources, capacities and vulnerabilities across neighbouring regions, specifically border regions as well as the situation of mobile workers, including frontier workers and cross border workers, with a specific focus on workers' rights and working conditions.

Amendment 31

Proposal for a regulation

Article 91 – paragraph ~~2 f (new)~~1

Text proposed by the Commission

Amendment

2f. Not later than six months after the end of the duration of the vigilance mode, the Commission shall present to the Advisory Group a report detailing the lessons learned from the measures adopted to address the Single Market Emergency. The report shall be used for the purpose of the review provided for in Article 44. The Commission shall also update the criteria for the monitoring referred to in Article 11, to reflect the findings of this report.

1. This Regulation establishes a framework of measures to anticipate, prepare for and respond to impacts of crises on the Single Market, with the purpose of safeguarding the free movement of goods, services and persons and of ensuring the availability of goods and services of strategic importance and crisis-relevant goods and services in the Single Market.

~~The report shall also assess the necessity for long-term strategic reserve planning. The Commission shall make this report available to the Council and to the European Parliament.~~

1. This Regulation establishes a framework of measures to anticipate, prevent, prepare for and respond to impacts of crises on the Single Market, with the purpose of safeguarding and facilitating the free movement of goods, services and persons in line with the Treaties, including the free movement of workers, of strengthening its resilience and functioning, of protecting consumers, the environment and workers fundamental rights in times of crisis, and of ensuring the availability of goods and services of critical importance and crisis-relevant goods and services in the Single Market.

Amendment 32

Proposal for a regulation

Article 91 – paragraph 2 g– ~~(new)~~point c

Text proposed by the Commission

Amendment

2g. In order to ensure the greatest possible degree of transparency and accountability, the relevant European Parliament committees may invite the ‘responsible Commissioners’ to present information about the state of play of the vigilance mode and the content of the ‘crisis preparation and Single Market Protection report’.

Amendment 33

Proposal for a regulation

Article 91 – paragraph ~~2 h (new)~~3

Text proposed by the Commission

Amendment

2h. Before the adoption of any implementing act pursuant to this Regulation, and taking its urgency into account, the Council shall invite the European Parliament to submit their comments within a reasonable timeframe.

3. Member States shall regularly exchange information on all matters falling within the scope of this Regulation among themselves and with the Commission.

3. Member States shall regularly exchange information on all matters falling within the scope of this Regulation among themselves, the advisory group, and with the Commission. The European Parliament shall have timely access to that information.

Amendment 34

Proposal for a regulation

~~Article 10~~

Article 2 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

~~Article 10~~

1a. This Regulation shall not in any way affect the exercise of fundamental rights as recognised in the Member States and at Union level, including the right or freedom to strike or to take other action covered by the specific industrial relations systems in Member States, in accordance with national law and/or practice. Nor does it affect the right to negotiate, to conclude and enforce collective agreements, or to take collective action in accordance with national law and/or practice.

~~deleted~~

~~Extension and deactivation~~

1. The Commission, if it considers that the reasons for activating the vigilance mode pursuant to Article 9(1) remain valid, and taking into consideration the opinion provided by the advisory group, may extend the vigilance mode for a maximum duration of six months by means of an implementing act.

2. Where the Commission, taking into consideration the opinion provided by the advisory group, finds that the threat referred to in Article 3(2) is no longer present, with respect to some or all vigilance measures or for some or all of the goods and services, it shall deactivate the vigilance mode in full or in part by means of an implementing act.

~~3. Implementing acts referred to in paragraphs 1 and 2 shall be adopted in accordance with the examination procedure referred to in Article 42(2).~~

Amendment 35

Proposal for a regulation

Article 122 – paragraph ~~1 – subparagraph 1~~7

Text proposed by the Commission

Amendment

The Commission may, among the goods of strategic importance listed in an implementing act adopted pursuant to Article 9(1),, identify those for which it may be necessary to build a reserve in order to prepare for a Single Market emergency, taking into account the probability and impact of shortages. The Commission shall inform the Member States thereof.

7. Any actions under this Regulation shall be consistent with Union’s obligations under international law

The Commission, after consulting with the Advisory Group, relevant economic operators, and where appropriate and necessary, third countries, may among the goods of strategic importance listed in an implementing act adopted pursuant to Article 9(1), identify those for which a shortage is possible and it may be necessary for Member States to build a reserve in order to prepare for or prevent a Single Market emergency, taking into account the probability and impact of shortages. The Commission shall provide that information to Member States, the Council and the European Parliament.

7. Any actions under this Regulation shall be consistent with Union’s obligations under international law, including human rights obligations.

Amendment 36

Proposal for a regulation

Article 123 – paragraph ~~2 – subparagraph~~ 1 – ~~introductory~~point ~~part~~1

Text proposed by the Commission

Amendment

The Commission may require, by means of implementing acts, that the Member States provide information on the goods listed in an implementing act adopted pursuant to Article 9(1), as regards all of the following:

(1) ‘crisis’ means an exceptional unexpected and sudden, natural or man-made event of extraordinary nature and scale that takes place inside or outside of the Union;

~~Member States shall provide information to the Commission and the Advisory Group on the goods listed in an implementing act adopted pursuant to Article 9(1), as regards all of the following:~~

(1) ‘crisis’ means an exceptional unexpected and sudden, natural or man-made event of extraordinary nature and scale that takes place inside or outside of the Union, with the exclusion of collective actions, and that results or risks to result in a significant disruption of the proper functioning of the Single Market, including the freedom of movement of goods, services and persons;

Amendment 37

Proposal for a regulation

Article 123 – paragraph ~~2 – subparagraph~~ 1 – point a2

Text proposed by the Commission

Amendment

~~(a) the current stock in their territory;~~

(2) ‘Single Market vigilance mode’ means a framework for addressing a threat of significant disruption of the supply of goods and services of strategic importance and which has the potential to escalate into a Single Market emergency within the next six months;

~~(a) current reserves in their territory;~~

(2) ‘Single Market vigilance mode’ means a framework for addressing a threat of a significant disruption of the supply of goods and services of critical importance and/or the free movement of persons, and which has the potential to escalate into a Single Market emergency within the next six months;

Amendment 38

Proposal for a regulation

Article 123 – paragraph ~~2 – subparagraph~~ 1 – point ~~a a (new)~~3

Text proposed by the Commission

Amendment

~~(aa) existing and anticipated shortages;~~

(3) ‘Single Market emergency’ means a wide-ranging impact of a crisis on the Single Market that severely disrupts the free movement on the Single Market or the functioning of the supply chains that are indispensable in the maintenance of vital societal or economic activities in the Single Market;

(3) ‘Single Market emergency’ means a wide-ranging impact of a crisis on the Single Market that severely disrupts the free movement of goods, services and persons on the Single Market or the functioning of the supply chains that are indispensable in the maintenance of vital societal or economic activities in the Single Market;

Amendment 39

Proposal for a regulation

Article 123 – paragraph ~~2 – subparagraph~~ 1 – point ~~a b (new)~~4

Text proposed by the Commission

Amendment

~~(ab) existing or pending plans to increase reserves;~~

(4) ‘strategically important areas’ means those areas with critical importance to the Union and its Member States, in that they are of systemic and vital importance for public security, public safety, public order or public health, and the disruption, failure, loss or destruction of which would have a significant impact on the functioning of the Single Market;

(4) ‘critically important areas’ means those areas with critical importance to the Union and its Member States, in that they are of systemic and vital importance for public security, public safety, public order or public health, and the disruption, failure, loss or destruction of which would have a significant impact on the functioning of the Single Market;

Amendment 40

Proposal for a regulation

Article 123 – paragraph ~~2 – subparagraph~~ 1 – point ~~a c (new)~~5

Text proposed by the Commission

Amendment

~~(ac) existing actions to increase reserves;~~

(5) ‘goods and services of strategic importance’ means goods and services that are indispensable for ensuring the functioning of the Single Market in strategically important areas and which cannot be substituted or diversified;

(5) ‘goods and services of critical importance’ means goods and services that are indispensable for ensuring the functioning of the Single Market in critically important areas and which cannot be substituted or diversified in a timely manner;

Amendment 41

Proposal for a regulation

Article 123 – paragraph ~~2 – subparagraph~~ 1 – point b7

Text proposed by the Commission

Amendment

~~(b) any potential for further purchase;~~

(7) ‘strategic reserves’ means a stock of goods of strategic importance for which building a reserve may be necessary to prepare for a Single Market emergency, under the control of a Member State.

~~(b) potential for further purchase;~~

(7) ‘strategic reserves’ means a stock of goods of critical importance for which building a reserve may be necessary to prepare for a Single Market emergency, under the control of a Member State.

Amendment 42

Proposal for a regulation

Article 123 – paragraph ~~2 – subparagraph~~ 1 – point c7 a (new)

Text proposed by the Commission

Amendment

~~(c) any options for alternative supply;~~

(7a) ‘economic operator’ means the manufacturer, the authorised representative, the importer and the distributor as defined in Regulation 765/2008/EC or a service provider as defined in Directive 2006/123/EC.

~~(c) options for alternative supply or substitute goods;~~

Amendment 43

Proposal for a regulation

Article 124 – paragraph 2 ~~– subparagraph 1 – point d~~

Text proposed by the Commission

Amendment

~~(d) further information that could ensure the availability of such goods.~~

2. The advisory group shall be composed of one representative from each Member State. Each Member State shall nominate a representative and an alternate representative.

~~deleted~~

2. The advisory group shall be composed of one representative from each Member State and four representatives of European social partners. Each Member State shall nominate a representative and an alternate representative. Cross-industry social partner organisations at Union level may designate four representatives to the advisory group with an equal representation of trade union and employer organisations.

Amendment 44

Proposal for a regulation

~~Article 12 – paragraph 2 – subparagraph 1 – point d a (new)~~

Article 4 – paragraph 3

Text proposed by the Commission

Amendment

~~(da) existing bilateral agreements as regards supply with another Member State;~~

3. The Commission shall chair the advisory group and ensure its secretariat. The advisory group shall invite the representatives of other crisis-relevant bodies at Union level, one independent expert appointed by the European Parliament and representatives of EFTA States that are contracting parties to the Agreement on the European Economic Area, as observers to its the relevant meetings. It may invite representatives of economic operators, trade unions, employers and stakeholder organisations, social partners as well as wokers’ representatives and other relevant experts to attend the meetings of the advisory group to provide input.

__________________

49 OJ L 1, 3.1.1994, p. 3.

Amendment 45

Proposal for a regulation

~~Article 12 – paragraph 2 – subparagraph 1 – point d b (new)~~

Article 4 – paragraph 4 – introductory part

Text proposed by the Commission

Amendment

~~(db) existing agreements or obligations with third countries regarding the supply of goods listed;~~

4. For the purpose of contingency planning under Articles 6 to 8, the advisory group shall assist and advise the Commission as regards the following tasks:

4. For the purpose of strengthening the resilience and the proper functioning of the Single Market and contingency planning under Articles 6 to 8, the advisory group shall assist and advise the Commission as regards the following tasks:

Amendment 46

Proposal for a regulation

Article 124 – paragraph ~~2 – subparagraph 1~~4 – point ~~d c (new)~~b

Text proposed by the Commission

Amendment

~~(dc) current demand for supply;~~

(b) assessingment of significant incidents that the Member States have alerted the Commission to.

(b) Assessing significant incidents that the Member States have alerted the Commission to.

Amendment 47

Proposal for a regulation

Article 124 – paragraph ~~2 – subparagraph 1~~5 – point ~~d d (new)~~c

Text proposed by the Commission

Amendment

~~(dd) expected demand for supply in the short and medium term;~~

(c) consulting representatives of economic operators, including SMEs and industry, and, where relevant, of trade unions and employer organisations, to collect market intelligence;

Amendment 48

Proposal for a regulation

Article 124 – paragraph ~~2 – subparagraph 1~~5 – point dc ea (new)

Text proposed by the Commission

Amendment

~~(de) Current or potential shortages of labour force related to the production of goods listed;~~

(ca) consulting representatives of trade unions and employers to better understand the social and labour market impacts of potential crises and related measures, especially on worker’s rights and on the freedom of movement of workers with a special focus on mobile workers, including frontier and cross-border workers;

Amendment 49

Proposal for a regulation

Article 124 – paragraph ~~2 – subparagraph 1~~5 – point d f ~~(new)~~

Text proposed by the Commission

Amendment

~~(df) The estimated financial and societal costs and impact associated with building a reserve of the goods listed for both Member States and economic operators, and in particular SMEs;~~

(f) maintaining a repository of national and Union crisis measures that have been used in previous crises that have had an impact on the Single Market and its supply chains

(f) maintaining a repository of national and Union crisis measures that have been used in previous crises that have had an impact on the Single Market and its supply chains but also on the labour market , workers’ rights, working conditions and the freedom of movement of workers.

Amendment 50

Proposal for a regulation

Article 124 – paragraph ~~2 – subparagraph 1~~6 – point da ga (new)

Text proposed by the Commission

Amendment

~~(dg) the potential negative impact on the free movement of goods, services and persons.~~

(aa) consulting representatives of trade unions and employers on the impact of the emergency on the labour market and the free movement of workers particularly mobile workers, including frontier and cross-border workers;

Amendment 51

Proposal for a regulation

Article 124 – paragraph 26 – ~~subparagraph~~point 2a b (new)

Text proposed by the Commission

Amendment

~~The implementing act shall specify the goods for which information is to be given.~~

(ab) consulting representatives of economic operators, including SMEs and industry, and where relevant, of trade unions and employer organisations to collect market intelligence and assess the impact of the emergency as referred to in Article 3(3);

~~deleted~~

Amendment 52

Proposal for a regulation

Article 124 – paragraph 26 – ~~subparagraph~~point 3d a (new)

Text proposed by the Commission

Amendment

~~Member States shall report to the Commission the levels of strategic reserves of goods of strategic importance held by them, and the levels of other stocks of such goods held on their territory.~~

(da) proposing and assessing measures to strengthen the Single Market’s resilience, such as mapping of relevant supply chains and stress tests;

~~deleted~~

Amendment 53

Proposal for a regulation

Article 124 – paragraph ~~2 – subparagraph 3 a (new)~~7

Text proposed by the Commission

Amendment

~~Confidential information shall be treated in line with existing EU guidelines and laws.~~

7. The Commission shall ensure the participation of all bodies at Union level that are relevant to the respective crisis. The advisory group shall cooperate and coordinate closely, where appropriate, with other relevant crisis-related bodies at Union level. The Commission shall ensure coordination with the measures implemented through other Union mechanisms, such as the Union Civil Protection Mechanism (UCPM) or the EU Health Security Framework. The advisory group shall ensure information exchange with the Emergency Response Coordination Centre under the UCPM.

Amendment 54

Proposal for a regulation

Article 124 – paragraph 39

Text proposed by the Commission

Amendment

3. Taking due account of stocks held or being built up by economic operators on theirterritory, Member States shall deploy their best efforts to build up strategic reserves of the goods of strategic importance identified in accordance with paragraph 1. The Commission shall provide support to Member States to coordinate and streamline their efforts.

9. The advisory group may adopt opinions, recommendations or reports in the context of its tasks set out in paragraphs 4 to 6.

3. Taking due account for stocks held or being built up by economic operators on their territory, Member States, where necessary, technically and economically possible, shall build up strategic reserves of the goods of strategic importance identified in accordance with paragraph 1. Where requested by Member States, the Commission shall provide support to Member States to coordinate and streamline their efforts.

9. The advisory group may adopt opinions, recommendations or reports in the context of its tasks set out in paragraphs 4 to 6. Opinions, recommendations and reports of the advisory group shall be made public insofar as they are in accordance with Directive 2016/943 and their disclosure is not contrary to public policy and security interests.

Amendment 55

Proposal for a regulation

Article 126 – paragraph 41 – introductory part

Text proposed by the Commission

Amendment

4. Where the building of strategic reserves of goods of strategic importance identified pursuant to paragraph 1 can be rendered more effective by streamlining among Member States, the Commission may draw up and regularly update, by means of implementing acts, a list of individual targets regarding the quantities and the deadlines for those strategic reserves that the Member States should maintain. When setting the individual targets for each Member State, the Commission shall take into account:

1. The Commission taking into consideration the opinion of the advisory group and the input of relevant Union level bodies, is empowered after consulting the Member States, to adopt a delegated act to supplement this Regulation with a framework setting out crisis protocols regarding crisis cooperation, exchange of information and crisis communication for the Single Market vigilance and emergency modes, in particular:

4. Where appropriate and necessary the Commission after consulting with the Advisory Group may establish a list of recommended individual targets for Member States. When setting the individual targets for each Member State, the Commission and the Advisory Group shall take into account:

1. The Commission taking into consideration the opinion of the advisory group and the input of relevant Union level bodies and after consulting the Member States, is empowered to adopt a delegated act to supplement this Regulation with a framework setting out crisis protocols regarding crisis cooperation, exchange of information and crisis communication for the Single Market vigilance and emergency modes, in particular:

Amendment 56

Proposal for a regulation

Article 126 – paragraph 41 – point bc

Text proposed by the Commission

Amendment

~~(b) the level of existing stocks of the economic operators and strategic reserves across the Union, and any information on economic operators’ ongoing activities to increase their stocks;~~

(c) a coordinated approach to risk and crisis communication also vis-à-vis the public with a coordinating role for the Commission;

~~(b) the level of existing stocks of the economic operators and strategic reserves across the Union;~~

(c) a coordinated approach to risk and crisis communication also vis-à-vis the public, economic operators, workers, employers, trade unions and other relevant stakeholders with a coordinating role for the Commission;

Amendment 57

Proposal for a regulation

Article 126 – paragraph ~~4 – point b~~1 a (new)

Text proposed by the Commission

Amendment

~~(ba) actions taken to increase stocks by the Member States and across the Union;~~

1a. Where the Commission, in adopting a delegated act, does not reflect the opinion of the advisory group, it shall explain its reasons in writing.

Amendment 58

Proposal for a regulation

Article 126 – paragraph 42 – point cb

Text proposed by the Commission

Amendment

~~(c) the costs for building and maintaining such strategic reserves.~~

~~(c) The financial costs for Member States for building and maintaining such strategic reserves;~~

(b) consultation of representatives of economic operators, including SMEs and industry, as well as trade unions and employers on initiatives and actions to mitigate and respond to potential supply chain disruptions and disruptions of the free movement of workers, and to overcome potential shortages of goods and services in the Single Market;

Amendment 59

Proposal for a regulation

Article 126 – paragraph 42 – point cb a (new)

Text proposed by the Commission

Amendment

~~(ca) The financial costs and negative impact on economic operators;~~

(ba) consultation of economic operators, including SMEs and industry, as well as trade unions and employers regarding the impact of initiatives and actions on the labour market, occupational health and safety, working conditions and fundamental worker’s rights, including in areas of critical importance;

Amendment 60

Proposal for a regulation

Article 128 – paragraph 43 – point ~~c b (new)~~a

Text proposed by the Commission

Amendment

~~(cb) the impact on Union competitiveness, inward investment to the Single Market, and economic operators in that Member State.~~

(a) the number of economic operators affected by the disruption or potential disruption;

(a) an estimated number of economic operators and workers affected by the disruption or potential disruption, including possible disruptions on the labour market and on the free movement of workers, with a special focus on mobile workers, including frontier and cross-border workers;

Amendment 61

Proposal for a regulation

Article 129 – paragraph 51 – point b

Text proposed by the Commission

Amendment

5. The Member States shall regularly inform the Commission about the current state of their strategic reserves. Where a Member State has reached the individual targets referred to in paragraph 4, it shall inform the Commission if it has at its disposal any stocks of the goods in question in excess of their target. The Member States whose reserves have not reached the individual targets shall explain to the Commission the reasons for this situation. The Commission shall facilitate cooperation between the Member States which have already reached their targets and the other Member States.

(b) list of the goods and services of strategic importance concerned, and

5. The Member States shall regularly, and where necessary at an agreed interval, inform the Commission and the Advisory Group about the current state of their strategic reserves. Where a Member State has reached the individual targets referred to in paragraph 4, it shall inform the Commission and the Advisory Group if it has at its disposal any stocks of the goods in question in excess of their target or if their proposed targets have not been met. Where necessary and proportionate, the Commission and Advisory Group shall provide recommendations on how to address any remaining shortfalls.

(b) list of the goods and services of critical importance concerned, and

Amendment 62

Proposal for a regulation

Article 129 – paragraph 62

Text proposed by the Commission

Amendment

Where the strategic reserves of a Member State continuously fall significantly short of the individual targets referred to in paragraph 4 and economic operators on its territory are not able to compensate that shortfall, the Commission may, at its own initiative or at the request of 14 Member States, assess the need to take further measures to build up strategic reserves of goods of strategic importance identified pursuant to paragraph 1.

2. The implementing act referred to in paragraph 1 shall be adopted in accordance with the examination procedure referred to in Article 41(2).

~~deleted~~

2. The implementing act referred to in paragraph 1 shall be adopted in accordance with the examination procedure referred to in Article 42(2). The Commission shall report any activation of the vigilance mode to the European Parliament and the Council without undue delay.

~~Following such an assessment, where the Commission establishes, supported by objective data, that~~

(a) the needs for the good in question remain unchanged or have increased compared to the situation at the time the target referred to in paragraph 4 was first set or last amended pursuant to paragraph 4,

~~(b) access to the concerned good is indispensable to ensure preparedness for a Single Market emergency~~

~~(c) the Member State concerned has not provided sufficient evidence to explain the failure to meet the individual target, and~~

(d) exceptional circumstances exist, in that the failure by that Member State, considering its importance to the supply chain concerned, to build up such strategic reserves gravely imperils the Union’s preparedness in the face of an impending threat of a Single Market emergency,

~~the Commission may adopt an implementing act, requiring the Member State in question to build up its strategic reserves of the goods concerned by a set deadline.~~

Amendment 63

Proposal for a regulation

Article 1210 – paragraph ~~7 – subparagraph~~ 1

Text proposed by the Commission

Amendment

When acting under this Article, the Commission shall seek to ensure that the building up of strategic reserves does not create a disproportionate strain on the supply chains of the goods identified in accordance to paragraph 1, or on the fiscal capacity of the Member State concerned.

When acting under this Article, the Commission and the Advisory Group shall seek to ensure that recommendations for building up of strategic reserves does not create unjustified and disproportionate strain on the supply chains of the goods identified, in accordance to paragraph 1; and the competitiveness and capacity of the Single Market, Union industrial sectors, labour market, and the fiscal capacity of the Member State concerned.

Amendment 64

Proposal for a regulation

Article 1210 – paragraph ~~7 – subparagraph~~ 2

Text proposed by the Commission

Amendment

~~The Commission shall take fully into account any national security concerns raised by Member States.~~

~~The Commission shall take fully into account any public health, safety and national security concerns, and any other relevant factors raised by Member States.~~

Amendment 65

Proposal for a regulation

Article 1211 – paragraph 81

Text proposed by the Commission

Amendment

~~8. The implementing acts referred to in this Article shall be adopted in accordance with the examination procedure referred to in Article 42(2).~~

1. When the vigilance mode has been activated in accordance with Article 9, national competent authorities shall monitor the supply chains of goods and services of strategic importance that have been identified in the implementing act activating the vigilance mode.

~~deleted~~

1. When the vigilance mode has been activated in accordance with Article 9, national competent authorities shall monitor the supply chains of goods and services of critical importance that have been identified in the implementing act activating the vigilance mode. Member States shall, in consultation with social partners, assess how workers and economic operators in critical areas identified might be affected by the potential crisis.

Amendment 66

Proposal for a regulation

Article 12 a– ~~(new)~~paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

~~Article 12a~~

~~Long-term Strategic Reserves of Critical Importance~~

The Commission may, among the goods of critical importance listed in an implementing act adopted pursuant to Article 9(1),, identify those for which it may be necessary to build a reserve in order to prepare for a Single Market emergency, taking into account the probability and impact of shortages. The Commission shall inform the Member States, the European Parliament and the advisory board thereof.

1. In order to minimise disruption to the Single Market and to the Union's industrial production capabilities and competitiveness, the outcome of the review provided for in Article 9(2c) shall include recommendations as regards the necessity, proportionality and usefulness of Member States and the Commission establishing a long-term plan for maintaining permanent, phased, and voluntary strategic reserves of goods of strategic importance, in order to help prevent future shortages and the activation of the vigilance or emergency mode.

2. Due consideration shall be given to the costs and practicalities of building and maintaining such long-term or phased strategic reserves. Consideration shall also be given to the possible need for better cooperation, coordination and information exchange between Member States, economic operators, and where relevant third countries, in order to increase the resilience of the Single Market, improve the reliability of global supply chains in times of crisis or the run-up to a crisis, and to ensure that market intervention is a method of a last resort. The Commission may, where requested by Member States, coordinate this process.

3. Member States shall seek to strengthen the Union’s supply-chain resilience and reduce third country dependencies for goods and services of strategic importance, including by developing manufacturing capacities in the Union where appropriate.

~~4. Capacities which are part of the rescEU reserve in accordance with Article 12 of Decision No 1313/2013/EU shall be excluded from the application of this Article.~~

Amendment 67

Proposal for a regulation

Article 1412 – paragraph 2 – subparagraph 3

Text proposed by the Commission

Amendment

2. Where the Commission, taking into consideration the opinion provided by the advisory group, considers there is a Single Market emergency, it shall propose to the Council to activate the Single Market emergency mode.

Member States shall report to the Commission the levels of strategic reserves of goods of strategic importance held by them, and the levels of other stocks of such goods held on their territory.

Member States shall report to the Commission the levels of strategic reserves of goods of critical importance held by them, and the levels of other stocks of such goods held on their territory.

Amendment 68

Proposal for a regulation

Article 2712 – paragraph 13

Text proposed by the Commission

Amendment

1. The Commission may invite one or more economic operators in crisis-relevant supply chains established in the Union to accept and prioritise certain orders for the production or supply of crisis-relevant goods (‘priority rated order’).

1. Where necessary and proportionate and as a measure of last resort, the Commission, after consultation with the Advisory Group, may invite one or more economic operators in crisis-relevant supply chains established in the Union to accept and prioritise certain orders for the production or supply of crisis-relevant goods (‘priority rated order’). The request to fulfil a priority order shall be based on objective and up-to-date data and information, and shall be accompanied by a detailed justification.

3. Taking due account of stocks held or being built up by economic operators on theirterritory, Member States shall deploy their best efforts to build up strategic reserves of the goods of critical importance identified in accordance with paragraph 1. The Commission shall provide support to Member States to coordinate and streamline their efforts.

Amendment 69

Proposal for a regulation

Article 2712 – paragraph 24 – introductory part

Text proposed by the Commission

Amendment

2. If an economic operator does not accept and prioritise priority rated orders, the Commission may, at its own initiative or at the request of 14 Member States, assess the necessity and proportionality of resorting to priority rated orders in such cases, the Commission shall give the economic operator concerned as well as any parties demonstrably affected by the potential priority rated order, the opportunity to state their position within a reasonable time limit set by the Commission in light of the circumstances of the case. In exceptional circumstances, following such an assessment, the Commission may address an implementing act to the economic operator concerned, requiring it to either accept and prioritise the priority rated orders specified in the implementing act or explain why it is not possible or appropriate for that operator to do so. The Commission’s decision shall be based on objective data showing that such prioritisation is indispensable to ensure the maintenance of vital societal economic activities in the Single Market

2. If an economic operator does not accept and prioritise priority rated orders, the Commission, in consultation with the Advisory Group, shall give the economic operator concerned, as well as any parties demonstrably affected by the potential priority rated order, the right to be heard and to provide explanation as to why the request will not be carried out.

4. Where the building of strategic reserves of goods of critical importance identified pursuant to paragraph 1 can be rendered more effective by streamlining among Member States, the Commission may draw up and regularly update, by means of implementing acts, a list of individual targets regarding the quantities and the deadlines for those strategic reserves that the Member States should maintain. When setting the individual targets for each Member State, the Commission shall take into account:

Amendment 70

Proposal for a regulation

Article 2712 – paragraph 26 a– ~~(new)~~subparagraph 1

Text proposed by the Commission

Amendment

2a. The economic operator referred to in paragraph 2 shall provide to the Commission within 10 days from the notification of the request, a reasoned explanation setting out duly justified reasons why it is not possible or appropriate, in light of the objectives of this provision, for it to comply with the request.

Such reasons shall include the inability of the operator to perform the priority rated order on account of insufficient production capacity, technical grounds, a serious risk that accepting the order would entail particular hardship or economic burden for the operator including risk in business continuity, or other considerations of comparable gravity.

Where the strategic reserves of a Member State continuously fall significantly short of the individual targets referred to in paragraph 4 and economic operators on its territory are not able to compensate that shortfall, the Commission may, at its own initiative or at the request of 14 Member States, assess the need to take further measures to build up strategic reserves of goods of critical importance identified pursuant to paragraph 1.

Amendment 71

Proposal for a regulation

Article 2713 – paragraph 21 b– point a a (new)

Text proposed by the Commission

Amendment

2b. If the Commission, after its consultation with the Advisory Group and the examination of the economic operator’s reasoned explanation, believes that the grounds for refusing the priority order are insufficient, then in serious and duly justified cases where an alternative solution cannot be found, the economic operator may be subject to the fines referred to in Article 28. Any further action shall be determined by national law.

(aa) the crisis has already severely disrupted the freedom of movement of persons, goods and services or is likely to do so, with a particular focus on mobile workers, including frontier and cross-border workers;

Amendment 72

Proposal for a regulation

Article 2713 – paragraph 41 – point a b (new)

Text proposed by the Commission

Amendment

4. Where the economic operator to which the decision referred to in paragraph 2 is addressed declines to accept the requirement to accept and prioritise the orders specified in the decision, it shall provide to the Commission, within 10 days from the notification of the decision, a reasoned explanation setting out duly justified reasons why it is not possible or appropriate, in light of the objectives of this provision, for it to comply with the requirement. Such reasons include the inability of the operator to perform the priority rated order on account of insufficient production capacity or a serious risk that accepting the order would entail particular hardship or economic burden for the operator, or other considerations of comparable gravity.

(ab) the introduction of travel restrictions and border controls;

~~deleted~~

~~The Commission may make such reasoned explanation or parts of it public, with due regard to business confidentiality.~~

Amendment 73

Proposal for a regulation

Article 2713 – paragraph 51 – point d

Text proposed by the Commission

Amendment

~~5. When an economic operator established in the Union is subject to a measure of a third country which entails a priority rated order, it shall inform the Commission thereof.~~

(d) the impacts in terms of degree and duration on economic and societal activities, the environment and public safety;

5. When an economic operator established in the Union is subject to a measure of a third country, which entails a priority rated order, it shall inform the Commission thereof. The Member State concerned and the Commission shall engage in dialogue with the third country in order to seek an amicable and managed outcome in order to limit or prevent long- term damage to the economic operator.

(d) the impacts in terms of degree and duration on economic and societal activities, including the labour market, as well as on the climate, the environment and public safety;

Amendment 74

Proposal for a regulation

Article 2713 – paragraph 61 a– ~~(new)~~point f

Text proposed by the Commission

Amendment

~~6a. The Commission may work with the Advisory Group and where relevant with third countries, to exchange best practices with regard to the future application of priority rated orders.~~

(f) the market position of affected economic operators in the concerned sector or sectors;

(f) the market share of affected economic operators in the concerned sector or sectors, where that share is critical to the supply of crisis-relevant goods and services;

Amendment 75

Proposal for a regulation

Article 2713 – paragraph 61 b– ~~(new)~~point g

Text proposed by the Commission

Amendment

6b. The Commission may work together with the Member States to help them introduce or improve other incentives applied to the economic operators carrying out a priority rated order, in particular for SMEs.

(g) the geographic area that is and could be affected, including any cross-border impacts on the functioning of supply chains that are indispensable in the maintenance of vital societal or economic activities in the Single Market;

(g) the geographic areas, in particular border regions, that are and could be affected, including any cross-border impacts on the free movement of goods, services and persons and the functioning of supply chains that are indispensable in the maintenance of vital societal or economic activities in the Single Market;

Amendment 76

Proposal for a regulation

Article 2713 – paragraph 71 a– ~~(new)~~point h

Text proposed by the Commission

Amendment

7a. Entities and persons affected by the necessary breach of the contractual obligations for compliance with the required prioritization shall not be liable for any breach of contractual obligations derived from the original breach.

(h) the importance of the affected economic operator in maintaining a sufficient level of supply of the goods or services, taking into account the availability of alternative means for the provision of those goods or services; and

(h) the importance of the affected economic operators in maintaining a sufficient level of supply of the goods or services, taking into account the availability of alternative means for the provision of those goods or services; and

Amendment 77

Proposal for a regulation

Article 2713 – paragraph 81 – point i

Text proposed by the Commission

Amendment

8. The implementing acts referred to in paragraph 2 shall be adopted in accordance with the examination procedure referred to in Article 42(2). On duly justified imperative grounds of urgency relating to the impacts of the crisis on the Single Market, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 42(3).

(i) the absence of substitute goods, inputs or services.

~~deleted~~

(i) the absence or shortage of substitute goods, inputs or services.

Amendment 78

Proposal for a regulation

Article 2714 – paragraph ~~8 a (new)~~2

Text proposed by the Commission

Amendment

8a. The Commission shall ensure that there is full coherence and operational continuity with other existing Union law that require priority rated orders and procurement orders during crises. Where appropriate, the Advisory Group shall consult the Management and Advisory Boards and Groups established under other existing Union law.

Amendment 79

Proposal for a regulation

Article 2714 – paragraph ~~8 b (new)~~3

Text proposed by the Commission

Amendment

8b. Priority Rated Orders as requested under this Regulation, are without prejudice to Article 5(3) of the Treaty on European Union (TEU) and Protocol (No 2) on the application of the principles of subsidiarity and proportionality.

3. The Council may activate the Single Market emergency mode by means of a Council implementing act. The duration of the activation, hall be specified in the implementing act, and shall be a maximum of six months.

3. The Council may activate the Single Market emergency mode by means of a Council implementing act. This implementing act shall include where relevant an overview of crisis relevant goods and services as well as sectors notably depending on mobile workers, including frontier and cross-border workers. The duration of the activation, shall be specified in the implementing act, and shall be a maximum of six months.

Amendment 80

Proposal for a regulation

Article 2814 – paragraph ~~1 – point a~~5

Text proposed by the Commission

Amendment

(a) where a representative organisation of economic operators or an economic operator, intentionally or through gross negligence, supplies incorrect, incomplete or misleading information in response to a request made pursuant to Article 24, or does not supply the information within the prescribed time limit;

5. As soon as the Single Market emergency mode is activated, the Commission shall, without delay, adopt a list of crisis-relevant goods and services by means of an implementing act. The list may be amended by means of implementing acts.

(a) where an economic operator, intentionally or through gross negligence, supplies incorrect, incomplete or misleading information, or fails to provide any information in response to a request made pursuant to Article 24, or does not supply the information within the prescribed time limit;

5. As soon as the Single Market emergency mode is activated, the Commission shall, without delay, consult the advisory group and adopt a list of crisis-relevant goods and services as well as sectors notably depending on mobile workers, including frontier and cross- border workers by means of an implementing act. The list may be amended by means of implementing acts.

Amendment 81

Proposal for a regulation

~~Article 28 – paragraph 1 – point b~~

Part IV – title II – Chapter I – title

Text proposed by the Commission

Amendment

(b) where an economic operator, intentionally or through gross negligence, does not comply with the obligation to inform the Commission of a third country obligation pursuant to Article 27 or fails to explain why it has not accepted a priority rated order;

Measures for re-establishing and facilitating free movement

~~(b) where an economic operator, intentionally or through gross negligence, does not comply with the obligation to inform the Commission of a third country obligation pursuant to Article 27.~~

Measures for ensuring and facilitating free movement

Amendment 82

Proposal for a regulation

Article 2816 – paragraph 21

Text proposed by the Commission

Amendment

~~2. Fines imposed in the cases referred to in paragraph 1 (a) and (b) shall not exceed 200 000 EUR.~~

1. When adopting and applying national measures in response to a Single Market emergency and the underlying crisis, Member States shall ensure that their actions fully comply with the Treaty and Union law and, in particular, with the requirements laid down in this Article.

2. Fines imposed in the cases referred to in paragraph 1 (a) and (b) shall not exceed a maximum of 200 000 EUR. If the economic operator concerned is an SME, the penalty payments imposed shall not exceed a maximum of 50 000 EUR.

1. Where Member States adopt and apply national measures in response to a Single Market emergency and the underlying crisis, they shall ensure that such measures are justified, proportionate non-discriminatory and fully comply with the Treaty and Union law, international obligations on fundamental human rights and worker’s rights as well as the requirements laid down in this Article.

Amendment 83

Proposal for a regulation

Article 2816 – paragraph ~~3 a (new)~~2

Text proposed by the Commission

Amendment

~~3a. If the economic operator concerned is an SME, the penalty payments imposed shall not exceed 0,5 % of total turnover in the preceding business year.~~

2. Any restriction shall be limited in time and removed as soon as the situation allows it. Additionally, any restriction should take into account the situation of border regions.

2. Any restriction shall be limited in time and to what is strictly necessary. Any restriction shall be regularly reviewed and removed as soon as the situation allows for. Any restriction shall have no longer legal effect when the emergency mode is deactivated. Additionally, any restriction should take into account the situation of border regions and that of mobile workers, in particular cross-border and frontier workers.

Amendment 84

Proposal for a regulation

Article 2816 – paragraph 42 a (new)

Text proposed by the Commission

Amendment

4. In fixing the amount of the fine, regard shall be had to the size and economic resources of the economic operator concerned, to the nature, gravity and duration of the infringement, taking due account of the principles of proportionality and appropriateness.

2a. Any restriction on the free movement of Union citizens and their family members and of third-country nationals legally staying or residing in the territories of Member States, as well as of refugees and beneficiaries of international protection for reasons of public policy, public security or public health, or any other measure having equivalent effect, shall not be implemented without prior risk assessment;

~~4. In fixing the amount of the fine, regard shall be had to:~~

~~(a) the size and economic resources of the economic operator concerned;~~

~~(b) the nature, gravity and duration of the infringement;~~

~~(c) any previous negative decisions taken in the context of this Regulation or another Union crisis measure;~~

~~(d) any positive actions taken in the context of this Regulation or another Union crisis measure;~~

~~(e) whether there was an intention not to comply with the requirements of this Regulation;~~

~~(f) the impact such a fine would have on the economic health of the economic operator and their business continuity.~~

~~When fixing the amount of the fine referred to in the first subparagraph, due account shall be taken of the principles of proportionality and appropriateness of the level of fine in question.~~

Amendment 85

Proposal for a regulation

Article 2916 – paragraph 23

Text proposed by the Commission

Amendment

2. The time shall begin to run on the day on which the Commission becomes aware of the infringement. However, in case of continuous or repeated infringements, time shall begin to run on the day on which the infringement ceases

3. Any requirement imposed on citizens and businesses shall not create an undue or unnecessary administrative burden.

2. The time shall begin to run on the day on which the infringement was committed. However, in case of continuous or repeated infringements, time shall begin to run on the day on which the infringement ceases.

3. Any requirement imposed on citizens, workers, employers and economic operators shall not create an undue or unnecessary administrative burden.

Amendment 86

Proposal for a regulation

Article 3016 – paragraph 14

Text proposed by the Commission

Amendment

~~1. The power of the Commission to enforce decisions taken pursuant to Article 28 shall be subject to a limitation period of five years.~~

4. Member States shall inform citizens, consumers, businesses, workers and their representatives about measures that affect their free movement rights in a clear and unambiguous manner.

~~1. The power of the Commission to enforce decisions taken pursuant to Article 28 shall be subject to a limitation period of three years.~~

4. Member States shall inform citizens, consumers, economic operators, workers, employers and their representatives about measures that affect their free movement rights in a clear, timely and unambiguous manner so as to ensure legal certainty and facilitate cross-border coordination. Member States shall cooperate with social partners at national and local level to ensure the effective dissemination of relevant information to workers and economic operators. All information shall be made available electronically, be easily accessible for persons with disabilities, and in relevant languages in particular in cross-border situations.

Amendment 87

Proposal for a regulation

Article 3116 – paragraph ~~1 – introductory part~~5

Text proposed by the Commission

Amendment

~~1. Before adopting a decision pursuant to Article 28, the Commission shall give the economic operator or representative organisations of economic operators concerned the opportunity of being heard on:~~

5. Member States shall ensure that all affected stakeholders are informed of measures restricting free movement of goods, services and persons, including workers and service providers, before their entry into force. Member States shall ensure a continuous dialogue with stakeholders, including communication with social partners and international partners.

~~1. Before adopting a decision, pursuant to Article 28, the Commission shall give the economic operator or representative organisations concerned the opportunity of being heard on:~~

5. Member States shall ensure that all affected stakeholders are informed of measures restricting free movement of goods, services and persons, including workers and service providers, as well as the anticipated expiry of such measures, before their entry into force. Member States shall duly involve social partners in the development and, where applicable, implementation of any measure with an impact on the free movement of persons and ensure a continuous dialogue with other stakeholders and international partners.

Amendment 88

Proposal for a regulation

Article 3117 – paragraph 41 – point c

Text proposed by the Commission

Amendment

4. The rights of defence of the economic operator or representative organisations of economic operators concerned shall be fully respected in any proceedings. The economic operator or representative organisations of economic operators concerned shall be entitled to have access to the Commission's file under the terms of a negotiated disclosure, subject to the legitimate interest of economic operators in the protection of their business secrets. The right of access to the file shall not extend to confidential information and internal documents of the Commission or the authorities of the Member States. In particular, the right of access shall not extend to correspondence between the Commission and the authorities of the Member States. Nothing in this paragraph shall prevent the Commission from disclosing and using information necessary to prove an infringement.

(c) discrimination between Member States or between citizens, including in their role as service providers or workers, based directly on nationality or, in the case of companies, the location of the registered office, central administration or principal place of business;

4. The rights of defence of the economic operator or representative organisations concerned shall be fully respected in any proceedings. The economic operator or representative organisations concerned shall be entitled to have access to the Commission's file under the terms of a negotiated disclosure, subject to the legitimate interest of economic operators in the protection of their business secrets. The right of access to the file shall not extend to confidential information and internal documents of the Commission or the authorities of the Member States. Nothing in this paragraph shall prevent the Commission from disclosing and using information necessary to prove an infringement.

(c) discrimination between Member States or between citizens, including in their role as service providers or workers, based directly or indirectly on nationality or, in the case of companies, the location of the registered office, central administration or principal place of business;

Amendment 89

Proposal for a regulation

Article 3417 – paragraph 1 – point d – introductory part

Text proposed by the Commission

Amendment

1.(d) ~~Two~~restrictions oron ~~more~~the ~~Member~~free ~~States~~movement ~~may~~of ~~request~~persons ~~that~~involved in the ~~Commission~~production ~~launch~~of acrisis-relevant ~~procurement~~goods onthat ~~behalf~~are oflisted ~~the~~in ~~Member~~an ~~States~~implementing ~~that~~act ~~wish~~adopted topursuant beto ~~represented~~Article by14, ~~the~~paragraph ~~Commission~~5 ~~(ʽparticipating~~and ~~Member~~their ~~Statesʼ),~~parts ~~for~~or ~~the~~in ~~purchasing~~provision of ~~goods and~~crisis-relevant services ~~of strategic~~that ~~importance~~are listed in an implementing act adopted pursuant to Article ~~9(1) or crisis-relevant goods and services listed~~14 inparagraph an5, ~~implementing~~or ~~act~~other ~~adopted~~measures ~~pursuant~~having toequivalent ~~Article~~effect, ~~14(5).~~that:

~~1. The Commission~~(d) ~~may,~~restrictions ~~upon~~on the ~~request~~free ofmovement ~~two~~of orpersons ~~more~~involved ~~Member~~in ~~States,~~the ~~act~~production asof acrisis-relevant ~~central~~goods ~~purchasing~~that ~~body~~are onlisted ~~behalf~~in ofan ~~all~~implementing ~~Member~~act ~~States~~adopted ~~willing~~pursuant to ~~participate~~Article ~~(‘participating~~14, ~~Member~~paragraph ~~States’)~~5 ~~for~~and ~~the~~their ~~public~~parts ~~procurement~~or ofin ~~goods~~provision ~~and~~of ~~services~~crisis-relevant ofservices ~~strategic~~that ~~importance~~are listed in an implementing act adopted pursuant to Article ~~9(1)~~14 paragraph 5 or ~~crisis-relevant~~which ~~goods~~are ~~and~~essential ~~services~~to ~~listed~~the infunctioning anof ~~implementing~~the ~~act.~~distorted sector, or other measures having equivalent effect, that:

Amendment 90

Proposal for a regulation

Article 3417 – paragraph 1 a– ~~(new)~~point d – point ii

Text proposed by the Commission

Amendment

1a. The request to the Commission to procure goods and services on the behalf of Member States, shall set out the reasons for the request, and shall demonstrate that the request is used exclusively to address supply chain disruptions and shortages of goods and services related to the specific emergency situation within the Single Market, and that all other options have been considered.

(ii) are directly discriminatory based on nationality of the person.

(ii) are directly or indirectly discriminatory based on nationality of the person.

Amendment 91

Proposal for a regulation

Article 3417 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

2. The Commission shall assess the utility, necessity and proportionality of the request. Where the Commission intends not to follow the request, it shall inform the Member States concerned and the advisory group referred to in Article 4 and give reasons for its refusal.

~~2. The Commission shall consult with the Advisory Group to assess the utility, necessity and proportionality of the request.~~

2. During the Single Market emergency mode and when responding to the Single Market emergency, Member States shall refrain from any of the following, unless to do so is inherent to the nature of the crisis on grounds of public policy, public security or public health and proportionate for achieving the objective purportedly pursued:

Amendment 92

Proposal for a regulation

Article 3417 – paragraph 23 a– ~~(new)~~introductory part

Text proposed by the Commission

Amendment

2a. In the event the Commission in consultation with the Advisory Group decides that the Commission should not follow the request, it shall inform the Member States concerned and give reasons for its refusal in the form of a written explanation outlining its decision.

3. During the Single Market emergency mode and when responding to a Single Market emergency, Member States shall refrain from any of the following unless to do so is inherent to the nature of the crisis/Single Market emergency on grounds of public policy, public security or public health and proportionate for achieving the objective purportedly pursued:

Amendment 93

Proposal for a regulation

Article 3417 – paragraph 34 – point a

Text proposed by the Commission

Amendment

3. Where the Commission agrees to procure on behalf of the Member States, it shall draw up a proposal for a framework agreement to be concluded with the participating Member States allowing the Commission to procure on their behalf. This agreement shall lay down the detailed conditions for the procurement on behalf of the participating Member States referred to in paragraph 1.

3. When a positive decision is made, the Commission shall draw up a proposal for a framework agreement to be concluded with the participating Member States allowing the Commission to procure on their behalf. This agreement shall lay down the detailed conditions, practical arrangements, and the rules of decision making for the procurement on behalf of the participating Member States referred to in paragraph 1, including justification as regards the use of the procurement of goods and services by the Commission on behalf of the Member States concerned, including mechanisms and liabilities to be assumed. Upon agreement of carrying out the procurement, the Commission shall launch a call for other Member States who wish to participate in the procurement procedure.

(a) applying of more generous rules to travel to or from one Member State to or from another Member State or group of Member States, as compared to travel to and from other Member States unless to do so is inherent to the nature of the crisis/Single Market emergency on grounds of public policy, public security or public health and proportionate for achieving the objective purportedly pursued;

Amendment 94

Proposal for a regulation

Article 3417 – paragraph 34 a– ~~(new)~~point d

Text proposed by the Commission

Amendment

3a. Procurement under this Regulation shall be carried out by the Commission in accordance with the rules set out in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council1 (the Financial Regulation) for its own procurement. The Commission may have the ability and responsibility, on behalf of all participating Member States, to enter into contracts with economic operators, including individual producers of crisis-relevant products, concerning the purchase of such products or concerning the financing of the production or the development of such products in exchange for a priority right to the result.

(d) imposing prohibitions on travel, including travel for imperative family reasons, which are not appropriate for the achievement of any legitimate public interest purportedly pursued by such measures or which manifestly go beyond what is necessary to achieve that aim;

(d) imposing prohibitions on travel, including travel for imperative family reasons, which are not proportionate for the achievement of any legitimate public interest purportedly pursued by such measures or which manifestly go beyond what is necessary to achieve that aim;

Amendment 95

Proposal for a regulation

Article 3417 – paragraph 34 b– ~~(new)~~point e

Text proposed by the Commission

Amendment

3b. The Commission shall carry out the procurement procedures and conclude the contracts with economic operators on behalf of the participating Member States. The Commission shall invite the participating Member States to appoint representatives to take part in the preparation of the procurement procedures.

(e) imposing restrictions on workers and service providers and their representatives, unless to do so in inherent to the nature of the crisis/Single Market emergency and it does not manifestly go beyond what is necessary for that purpose.

~~The deployment of procurement pursuant to this Article is without prejudice to other instruments provided in the Financial Regulation.~~

(e) imposing restrictions on workers and service providers and their representatives, which are not proportionate for achieving the objective purportedly pursued by such measures. To this end, due regard should be given to the needs of mobile workers, in particular frontier and cross-border workers, who depend on the freedom of movement to access their workplace, in particular those in professions which require physical presence, as well as workers who are able to work remotely but have to do so from a particular Member State.

Amendment 96

Proposal for a regulation

Article 3417 – paragraph ~~3 c (new)~~5

Text proposed by the Commission

Amendment

3c. If the Commission is unable to award the contract to a suitable economic operator, the Commission shall immediately inform the Member States, and therefore, Member States shall have a right to initiate their own procurement processes without delay.

5. When a Single Market emergency has been activated in accordance with Article 14 and the activities exercised by the service providers, business representatives and workers are not affected by the crisis in the Member State and safe travel is possible despite the crisis, that Member State shall not impose travel restrictions on such categories of persons from other Member States that would prevent them from having access to their place of activity or workplace.

5. When a Single Market emergency has been activated in accordance with Article 14 and the activities exercised by the service providers, business representatives and workers are not affected by the crisis in a Member State and safe travel is possible despite the crisis, Member States shall not impose travel restrictions on such categories of persons from other Member States that would prevent them from having access to their place of activity or workplace, provided that their health and safety can be ensured on the basis of equal treatment with persons in a comparable situation in the relevant sector of the receiving Member State.

Amendment 97

Proposal for a regulation

Article 3417 – paragraph 36 d– ~~(new)~~introductory part

Text proposed by the Commission

Amendment

3d. When Member States become aware of a change in circumstance after the framework agreement is concluded between the Commission and the Member States, the Commission shall be duly notified in a timely manner. If such changes have a significant effect on the original agreement, the European Commission shall review the decision, and if necessary amend or terminate the agreement.

6. When a Single Market emergency has been activated in accordance with Article 14 and exceptional circumstances resulting from the crisis do not allow all service providers, business representatives and workers from other Member States to travel and to have unhindered access to their place of activity or workplace, but travelling is still possible, Member States shall not impose travel restrictions, on the following categories of persons, provided that their health and safety can be ensured on the basis of equal treatment with persons in a comparable situation in the relevant sector of the receiving Member State:

Amendment 98

Proposal for a regulation

Article 3417 – paragraph 36 e– ~~(new)~~point a

Text proposed by the Commission

Amendment

~~3e. Where the Commission procures crisis relevant goods and services on behalf of participating Member States, this shall be without prejudice to the procurement of non-participating Member States.~~

(a) Those service providers that provide crisis-relevant services that are listed in an implementing act adopted pursuant to Article 14(5), or business representatives or workers that are involved in production of crisis-relevant goods or provision of crisis-relevant services that are listed in an implementing act adopted pursuant to Article 14(5) to allow them to have access to the place of their activities, if activities in the sector concerned are still allowed in the Member State;

(a) Those service providers that provide crisis-relevant services that are listed in an implementing act adopted pursuant to Article 14(5), or business representatives or workers that are involved in production of crisis-relevant goods or provision of crisis-relevant services that are listed in an implementing act adopted pursuant to Article 14(5), including those that are essential to the functioning of the distorted sector, to allow them to have access to the place of their activities, if activities in the sector concerned are still allowed in the receiving Member State;

Amendment 99

Proposal for a regulation

Article 3517 – paragraph ~~2 a (new)~~7

Text proposed by the Commission

Amendment

2a. The European Commission shall provide written explanation to the Advisory Group, the European Parliament, and the Council, detailing the reasons for the economic operator chosen to fulfil the procurement contract.

7. When taking the measures referred to in this provision, the Member States shall ensure full compliance with the Treaties and Union law. Nothing in this provision shall be construed as authorising or justifying restrictions to free movement contrary to the Treaties or other provisions of Union law.

7. When taking the measures referred to in this provision, the Member States shall ensure full compliance with the Treaties and Union law, including the protection of workers, service providers and business representatives, ensuring they are able to exercise their freedom of movement under safe conditions. Nothing in this provision shall be construed as authorising or justifying restrictions to free movement contrary to the Treaties or other provisions of Union law.

Amendment 100

Proposal for a regulation

Article 3618 – paragraph 21

Text proposed by the Commission

Amendment

2. The contracts may include a clause stating that a Member State which has not participated in the procurement procedure may become a party to the contract after it has been signed, laying out in detail the procedure for doing so and its effects.

1. During the Single Market emergency mode, the Commission may provide for supportive measures to reinforce free movement of persons referred to in Article 17(6) and 17(7) by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 422(2). On duly justified imperative grounds of urgency relating to the impacts of the crisis on the Single Market, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 42(3).

2. The contracts shall include a clause stating that a Member State which has not participated in the procurement procedure may become a party to the contract after it has been signed, laying out in detail the procedure for doing so and its effects.

1. During the Single Market emergency mode, the Commission may provide for supportive measures to facilitate the free movement of persons referred to in Article 17(6) and 17(7) and to ensure that they can exercise their freedom of movement under safe conditions by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 422(2). On duly justified imperative grounds of urgency relating to the impacts of the crisis on the Single Market, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 42(3).

Amendment 101

Proposal for a regulation

Article 3818 – paragraph 12

Text proposed by the Commission

Amendment

When the Single Market emergency mode has been activated pursuant to Article 14, Member States shall consult each other and the Commission and coordinate their actions with the Commission and the representatives of the other Member States in the advisory group prior to launching procurement of crisis-relevant goods and services listed in an implementing act adopted pursuant to Article 14(5) in accordance with Directive 2014/24/EU of the European Parliament and of the Council55 .

2. During the Single Market emergency mode, where the Commission establishes that Member States have put in place templates for attesting that the individual or economic operator is a service provider that provides crisis-relevant services, a business representative or worker that is involved in production of crisis-relevant goods or provision of crisis-relevant services or a civil protection worker and it considers that the use of different templates by each Member States is an obstacle to the free movement at the time of a Single Market emergency, the Commission may issue, if it considers it necessary for supporting the free movement of such categories of persons and their equipment during the ongoing Single Market emergency, templates for attesting that they fulfil the relevant criteria for the application Article 17(6) in all Member States by means of implementing acts.

When the Single Market emergency mode has been activated pursuant to Article 14, Member States, the Commission, and the advisory group shall coordinate and consult prior to launching procurement of crisis-relevant goods and services listed in an implementing act adopted pursuant to Article 14(5) in accordance with Directive 2014/24/EU of the European Parliament and of the Council 55 .

~~_________________~~

~~55 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65)..~~

Amendment 102

Proposal for a regulation

Article 3919 – ~~title~~paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

~~Ban of individual procurement action by participating Member States~~

During the Single Market emergency, Member States shall notify to the Commission any crisis-relevant draft measures restricting free movement of goods and the freedom to provide services as well as crisis-relevant restrictions of free movement of persons, including workers together with the reasons for those measures.

~~Individual procurement action by participating Member States~~

During the Single Market emergency, Member States shall notify to the Commission any draft measures and restrictions linked to the crisis and, in particular, those restricting the free movement of goods, the freedom to provide services and the free movement of persons, including workers, together with the reasons for those measures and restrictions as well as special arrangements facilitating the free movement of mobile workers in crisis-relevant sectors, including frontier workers and cross-border workers.

Amendment 103

Proposal for a regulation

Article 3919 – paragraph 12

Text proposed by the Commission

Amendment

~~Where~~2. Member States shall provide to the ~~Single~~Commission ~~Market~~a ~~emergency~~statement ~~mode~~of ~~has~~the ~~been~~reasons ~~activated~~which ~~pursuant~~make tothe ~~Article~~enactment 16of ~~and~~such ~~procurement~~measure byjustified ~~the~~and ~~Commission~~proportionate, onwhere ~~behalf~~those ofreasons ~~Member~~have ~~States~~not ~~has~~already been ~~launched~~made clear in ~~accordance~~the ~~with~~notified ~~Articles~~measure. 34Member States shall communicate to ~~36,~~the Commission the ~~contracting~~full ~~authorities~~text of the ~~participating~~national ~~Member~~legislative ~~States~~or ~~shall~~regulatory ~~not~~provisions ~~procure~~which ~~goods~~contain or ~~services covered by such~~are ~~procurement~~modified by ~~other~~the ~~means.~~measure.

Where the Single Market emergency mode has been activated pursuant to Article 16 and procurement by the Commission on behalf of Member States has been launched in accordance with Articles 34 to 36, the contracting authorities of the participating Member States shall not procure goods or services covered by such procurement by other means without informing the Commission and the Advisory Group.

2. Member States shall provide to the Commission a statement substantiating that the enactment of such measures or restrictions are justified, proportionate and non-discriminatory. Member States shall communicate to the Commission the full text of the national legislative or regulatory provisions which contain or are modified by the measure.

Amendment 104

Proposal for a regulation

Article 4119 – paragraph 16

Text proposed by the Commission

Amendment

The Commission and the Member States may set up interoperable digital tools or IT infrastructures supporting the objectives of this Regulation. Such tools or infrastructures may be developed outside the duration of the Single Market Emergency.

6. The Commission shall ensure that citizens and businesses are informed of the notified measures, unless Member States request that the measures remain confidential, or the Commission deems disclosure of those measures would affect the security and public order of the European Union or its Member States, as well as of the decisions and Member States’ comments adopted in accordance with this Article.

The Commission and the Member States may set up interoperable digital tools or IT infrastructures supporting the objectives of this Regulation. Such tools or infrastructures shall be developed outside the duration of the Single Market Emergency, in order to be prepared to respond to possible future emergencies in a timely and efficient manner.

6. The Commission shall ensure that citizens, workers, economic operators, social partners and other affected stakeholders are informed of the notified measures in a clear and unambiguous matter, unless the Commission or the Member States deem disclosure of those measures would affect public policy and the security of the European Union or its Member States, as well as of the decisions and Member States’ comments adopted in accordance with this Article.

Amendment 105

Proposal for a regulation

Article 4121 – paragraph 1 a– ~~(new)~~introductory part

Text proposed by the Commission

Amendment

The Commission shall seek to make any digital tools compatible with existing structures already established by Member States, ensuring the highest levels of interoperability in the Union’s digital tools in order to avoid duplication of system requirements and any additional administrative burden, so that all citizens, businesses and administrations, in all Member States, can benefit from these digital tools.

1. Member States shall operate national single points of contact that shall provide citizens, consumers, economic operators and workers and their representatives with the following assistance:

1. Member States shall operate national single points of contact and cooperate with social partners in this regard, that shall provide citizens, civil society organizations, consumers, economic operators and workers and their representatives with the following assistance:

Amendment 106

Proposal for a regulation

Article 4121 – paragraph ~~1 b (new)~~2

Text proposed by the Commission

Amendment

~~These digital tools shall be user friendly, accessible through various electronic devices, and developed and optimised for different web browsers.~~

2. Member States shall ensure that it is possible for citizens, consumers, economic operators and workers and their representatives to receive, at their request and via the respective single points of contact, information from the competent authorities on the way in which the respective national crisis response measures are generally interpreted and applied. Where appropriate, such information shall include a step-by-step guide. The information shall be provided in clear, understandable and intelligible language. It shall be easily accessible at a distance and by electronic means and shall be kept up to date.

2. Member States shall ensure that it is possible for citizens, consumers, civil society organisations, economic operators and workers and their representatives to receive, at their request and via the respective single points of contact, information from the competent authorities on the way in which the respective national crisis response measures are generally interpreted and applied. Where appropriate, such information shall include a step-by-step guide. The information shall be provided in clear, understandable and intelligible language and shall be accessible to persons with disabilities. It shall also be easily accessible at a distance and by electronic means and shall be kept up to date.

Amendment 107

Proposal for a regulation

Article 4122 – paragraph 12 c– ~~(new)~~introductory part

Text proposed by the Commission

Amendment

~~The Commission shall ensure that the highest levels of cybersecurity and data protection are employed in the development and operation of any digital tools.~~

2. The Union level single point of contact shall provide citizens, consumers, economic operators, workers and their representatives with the following assistance:

2. The Union level single point of contact shall provide citizens, civil society organizations, consumers, economic operators and workers and their representatives with the following assistance:

Amendment 108

Proposal for a regulation

Article 4122 – paragraph 12 d– ~~(new)~~point a

Text proposed by the Commission

Amendment

~~Special consideration shall be given to SMEs and citizens in order to prioritise the accessibility and usability of any digital tools and digital systems developed.~~

(a) assistance in requesting and obtaining information as regards Union level crisis response measures that are relevant to the activated Single Market emergency or which affect the exercise of the free movement of goods, services, persons and workers;

(a) assistance in requesting and obtaining information as regards Union level and national crisis response measures that are relevant to the activated Single Market emergency or which affect the exercise of the free movement of goods, services, persons and workers;

Amendment 109

Proposal for a regulation

Article 4127 – paragraph ~~1 e (new)~~2

Text proposed by the Commission

Amendment

~~The Commission shall ensure through budgetary means that digital tools are adequately funded and resourced.~~

2. If an economic operator does not accept and prioritise priority rated orders, the Commission may, at its own initiative or at the request of 14 Member States, assess the necessity and proportionality of resorting to priority rated orders in such cases, the Commission shall give the economic operator concerned as well as any parties demonstrably affected by the potential priority rated order, including workers’ representatives and trade unions, the opportunity to state their position, following the parties’ receipt of comprehensive information, within a reasonable time limit set by the Commission in light of the circumstances of the case. In exceptional circumstances, following such an assessment, the Commission may address an implementing act to the economic operator concerned, requiring it to either accept and prioritise the priority rated orders specified in the implementing act or explain why it is not possible or appropriate for that operator to do so. The Commission’s decision shall be based on objective data showing that such prioritisation is indispensable to ensure the maintenance of vital societal economic activities in the Single Market. Workers affected by such decision shall be consulted about the modalities and where applicable be trained and compensated in accordance with national and Union law. Occupational health and safety provisions must be respected at all times.

Amendment 110

Proposal for a regulation

Article 4127 – paragraph 23

Text proposed by the Commission

Amendment

The Commission shall, by means of implementing acts, set out the technical aspects of such tools or infrastructures. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 42(2).

The Commission shall, by means of implementing acts, set out the technical aspects applicable standards and interoperability requirements of such tools or infrastructures. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 42(2).

3. Where the economic operator to which the decision referred to in paragraph 2 is addressed accepts the requirement to accept and prioritise the orders specified in the decision, that obligation shall take precedence over any performance obligation under private or public law. When prioritising the orders specified in the decision, the economic operators shall ensure full compliance with their obligations under Union and national labour law, in particular regarding workers' rights and working conditions.

Amendment 111

Proposal for a regulation

~~Article 44 – title~~

Article 33 – paragraph 2 – point c

Text proposed by the Commission

Amendment

~~Report and review~~

~~Report, review and transparency~~

(c) aiming at accelerating permitting of crisis-relevant goods, fully respecting applicable legislation, including health and safety provisions as well as environmental and consumer protection.

Amendment 112

Proposal for a regulation

Article ~~44 – paragraph 2~~39 a (new)

Text proposed by the Commission

Amendment

2a. When implementing this Regulation, all actors shall act with the greatest possible degree of transparency, taking into account the protection of trade secrets, business confidentiality, and security related matters.

Article 39a

Non regression clause

1. This Directive shall not affect Member States’ prerogative to apply or to introduce laws, regulations or administrative provisions which are more favourable to workers or to encourage or permit the application of collective agreements which are more favourable to workers.

Amendment 113

Proposal for a regulation

~~Article 44 – paragraph 2 b (new)~~

Article 45 – title

Text proposed by the Commission

Amendment

~~2b. The Commission shall inform the European Parliament in a timely and correct manner, in particular when Members of the European Parliament ask written questions.~~

Repeal

Amendments to Regulation (EC) 2679/98

Amendment 114

Proposal for a regulation

Article 4445 – paragraph ~~2 c (new)~~1

Text proposed by the Commission

Amendment

2c. The Commission shall give due consideration to the opinions of the European Ombudsman, especially where they relate to transparency of decision-making. Where the Commission does not follow those opinions, it will duly justify this in a report and submit it to the Council and the Parliament.

Council Regulation (EC) 2679/98 is repealed with effect from [date].

Articles 3, 4 and 5 of Regulation (EC) 2679/98 shall cease to apply for the duration of the Single Market emergency mode.

Amendment 115

Proposal for a regulation

Article 45 – paragraph 1

Text proposed by the Commission

Amendment

2. Article 2 of Regulation (EC) 2679/98 is amended as follows: “This Regulation shall not in any way affect the exercise of fundamental rights as recognised in the Member States and at Union level, including the right or freedom to strike or to take other action covered by the specific industrial relations systems in Member States, in accordance with national law and/or practice. Nor does it affect the right to negotiate, to conclude and enforce collective agreements, or to take collective action in accordance with national law and/or practice.”

PROCEDURE – COMMITTEE ASKED FOR OPINION

Date announced in plenary

~~ITRE~~

EMPL

~~15.12.2022~~

9.11.2022

~~Associated committees - date announced in plenary~~

~~20.4.2023~~

Rapporteur for the opinion

Date appointed

~~Eva Maydell~~

Marc Angel

~~15.12.2022~~

17.11.2022

Discussed in committee

~~25.4.2023~~

22.3.2023

Date adopted

~~12.6.2023~~

28.6.2023

Result of final vote

Members present for the final vote

François-Xavier Bellamy, Hildegard Bentele, Tom Berendsen, Marc Botenga, Jerzy Buzek, Maria da Graça Carvalho, Ignazio Corrao, Beatrice Covassi, Ciarán Cuffe, Nicola Danti, Marie Dauchy, Christian Ehler, Valter Flego, Claudia Gamon, Jens Geier, Bart Groothuis, Christophe Grudler, Henrike Hahn, Ivo Hristov, Ivars Ijabs, Seán Kelly, Izabela-Helena Kloc, Zdzisław Krasnodębski, Miapetra Kumpula-Natri, Eva Maydell, Georg Mayer, Marina Mesure, Dan Nica, Angelika Niebler, Johan Nissinen, Mauri Pekkarinen, Mikuláš Peksa, Tsvetelina Penkova, Morten Petersen, Clara Ponsatí Obiols, Manuela Ripa, Sara Skyttedal, Maria Spyraki, Beata Szydło, Grzegorz Tobiszowski, Evžen Tošenovský, Henna Virkkunen, Pernille Weiss

João Albuquerque, Atidzhe Alieva-Veli, Marc Angel, Vilija Blinkevičiūtė, Milan Brglez, David Casa, Leila Chaibi, Ilan De Basso, Margarita de la Pisa Carrión, Özlem Demirel, Jarosław Duda, Lucia Ďuriš Nicholsonová, Loucas Fourlas, Cindy Franssen, Chiara Gemma, Helmut Geuking, Elisabetta Gualmini, Agnes Jongerius, Irena Joveva, Radan Kanev, Katrin Langensiepen, Miriam Lexmann, Elena Lizzi, Sara Matthieu, Jörg Meuthen, Max Orville, Kira Marie Peter-Hansen, Dragoş Pîslaru, Dennis Radtke, Elżbieta Rafalska, Daniela Rondinelli, Mounir Satouri, Romana Tomc, Marianne Vind, Maria Walsh, Tomáš Zdechovský

Substitutes present for the final vote

~~Alex Agius Saliba, Andrus Ansip, Marek Paweł Balt, Damien Carême, Matthias Ecke, Martin Hojsík, Andrius Kubilius, Elena Lizzi, Dace Melbārde, Marcos Ros Sempere, Jordi Solé, Marion Walsmann~~

Konstantinos Arvanitis, Marc Botenga, Antonio Maria Rinaldi, Anna Zalewska

Substitutes under Rule 209(7) present for the final vote

~~Asim Ademov, Rosanna Conte, Estrella Durá Ferrandis, Andrey Kovatchev, Andrey Novakov, Jan-Christoph Oetjen, Tom Vandenkendelaere~~

Clara Aguilera, Attila Ara-Kovács, Marie Dauchy, Marian-Jean Marinescu, Karen Melchior, Maite Pagazaurtundúa

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION