Sittings · Document

REPORT (COM(2023)0516 – C90326/2023 – 2023/0315(COD)) 2024-02-27

On the proposal for a directive of the European Parliament and of the Council on European cross-border associations

Committee on Legal Affairs · Rapporteur: Sergey Lagodinsky

PR_COD_1amCom

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* Consultation procedure

*** Consent procedure

***I Ordinary legislative procedure (first reading)

***II Ordinary legislative procedure (second reading)

***III Ordinary legislative procedure (third reading)

(The type of procedure depends on the legal basis proposed by the draft act.)

Amendments to a draft act

Amendments by Parliament set out in two columns

Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column.

The first and second lines of the header of each amendment identify the relevant part of the draft act under consideration. If an amendment pertains to an existing act that the draft act is seeking to amend, the amendment heading includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend.

Amendments by Parliament in the form of a consolidated text

New text is highlighted in bold italics. Deletions are indicated using either the ▌symbol or strikeout. Replacements are indicated by highlighting the new text in bold italics and by deleting or striking out the text that has been replaced.

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DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a directive of the European Parliament and of the Council on European cross-border associations

(COM(2023)0516 – C90326/2023 – 2023/0315(COD))

(Ordinary legislative procedure: first reading)

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

– having regard to Article 294(2) and Articles 50 and 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90326/2023),

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

– having regard to the opinion of the European Economic and Social Committee of 17 January 2024,

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

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

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

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

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

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

Amendment 1

Proposal for a directive

Recital 2

Text proposed by the Commission

Amendment

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

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

Amendment 2

Proposal for a directive

Recital 6

Text proposed by the Commission

Amendment

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

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

Amendment 3

Proposal for a directive

Recital 6 a (new)

Text proposed by the Commission

Amendment

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

Amendment 4

Proposal for a directive

Recital 7

Text proposed by the Commission

Amendment

(7) A fully functioning internal market for the activities of non-profit associations is essential in order to promote economic and social growth across Member States. At present, barriers within the internal market prevent non-profit associations from extending their operations beyond their national borders, thereby hindering the effective operation of the internal market. Working towards a fully effective internal market requires full freedom of establishment for all activities which contribute to the objectives of the Union.

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

Amendment 5

Proposal for a directive

Recital 8

Text proposed by the Commission

Amendment

(8) In order to establish a genuine internal market for the economic activities of non-profit associations, it is necessary to abolish any unjustified restrictions on the freedom of establishment, the free movement of services, the free movement of goods and the free movement of capital that still apply in the laws of certain Member States. These restrictions hinder non-profit associations from operating cross-border, not least because they impose on them a specific need to allocate resources to unnecessary administrative or compliance activities, which has a particularly deterrent effect in view of their non-profit nature.

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

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* Judgment of the Court of Justice of 10 June 2020, Commission v. Hungary, C-78/18, ECLI:EU:C:2020:476.

Amendment 6

Proposal for a directive

Recital 9

Text proposed by the Commission

Amendment

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

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

Amendment 7

Proposal for a directive

Recital 9 a (new)

Text proposed by the Commission

Amendment

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

Amendment 8

Proposal for a directive

Recital 10

Text proposed by the Commission

Amendment

(10) The ability to access and channel funds and capital efficiently across borders is necessary in order to facilitate non-profit associations’ activities in the internal market. This includes remuneration for economic activities, but also donations, inheritance, or other forms of funding. Different regulatory frameworks and existing restrictions in the Member States regarding receiving, soliciting donations, and similar contributions in whatever form result in fragmentation in the internal market and constitute a barrier to the functioning of the internal market.

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

Amendment 9

Proposal for a directive

Recital 11

Text proposed by the Commission

Amendment

(11) Moreover, laws of certain Member States impose requirements regarding nationality or legal residence on members of non-profit associations or on members of the executive body of such non-profit associations. Such requirements should be eliminated in order to protect the exercise of freedom of establishment and freedom of association of EU citizens.

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

Amendment 10

Proposal for a directive

Recital 11 a (new)

Text proposed by the Commission

Amendment

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

Amendment 11

Proposal for a directive

Recital 12

Text proposed by the Commission

Amendment

(12) The freedom of association is crucial for the functioning of democracy, as it constitutes an essential condition for the exercise of other fundamental rights by individuals, including the right to freedom of expression and information. As recognised in the Charter of Fundamental Rights of the European Union (CFR) and in the Convention for the Protection of Human Rights and Fundamental Freedoms (ECHR), freedom of association is a fundamental right.

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

Amendment 12

Proposal for a directive

Recital 13

Text proposed by the Commission

Amendment

(13) It is therefore necessary to put in place harmonised rules facilitating the pursuit of non-profit associations’ cross-border activities. Existing national rules on cross-border associations should be harmonised so that they allow those non-profit associations to take a legal form specifically designed to facilitate operations on a cross border basis. That legal form should be provided in Member State’s domestic legal orders through the adaptation of their respective rules on non-profit associations. This legal form, which is to be designated as the ‘European cross-border association’, ( ‘ECBA’), should be automatically recognised by all Member States and will allow non-profit associations to overcome the obstacles they face in the internal market, while respecting Member States’ traditions regarding non-profit associations.

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

Amendment 13

Proposal for a directive

Recital 13 a (new)

Text proposed by the Commission

Amendment

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

Amendment 14

Proposal for a directive

Recital 15

Text proposed by the Commission

Amendment

(15) Trade unions and associations of trade unions should not be allowed to establish ECBAs, since they have a particular status in national law.

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

Amendment 15

Proposal for a directive

Recital 16

Text proposed by the Commission

Amendment

(16) Nor political parties and associations of political parties be allowed to establish ECBAs, as they enjoy a particular status within national law and Union law as laid down in Regulation (EU, Euratom) 1141/2014 of the European Parliament and of the Council39 .

(16) Nor political parties and associations of political parties should be allowed to establish ECBAs, as they enjoy a particular status within national law and Union law as laid down in Regulation (EU, Euratom) 1141/2014 of the European Parliament and of the Council 39 .

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39 Regulation (EU, Euratom) No 1141/2014 of the European Parliament and of the Council of 22 October 2014 on the statute and funding of European political parties and European political foundations (OJ L 317, 4.11.2014, p. 1).

39 Regulation (EU, Euratom) No 1141/2014 of the European Parliament and of the Council of 22 October 2014 on the statute and funding of European political parties and European political foundations (OJ L 317, 4.11.2014, p. 1).

Amendment 16

Proposal for a directive

Recital 17

Text proposed by the Commission

Amendment

(17) Churches and other religious organisations and philosophical or non-confessional organisations, within the meaning of Article 17 TFEU, as well as associations of these entities, should also not be allowed to establish an ECBA, due to the lack of Union competence to regulate their status, and due to them having a particular status in national law.

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

Amendment 17

Proposal for a directive

Recital 18

Text proposed by the Commission

Amendment

(18) The establishment of an ECBA should be the result of an agreement between natural persons that are Union citizens or legally resident third-country nationals, or legal entities established in the Union, except persons that have been convicted of offences concerning money laundering, associated predicate offences40 , or terrorist financing or are subject to measures that prohibit their operations in a Member State on the same grounds. In view of the non-profit purpose of the ECBA, where an ECBA is constituted by legal entities, they should also have a non-profit purpose.

(18) The establishment of an ECBA should be the result of an agreement between natural persons that are Union citizens or legally resident third-country nationals, or legal entities established in the Union, except persons that have been convicted of offences concerning money laundering, associated predicate offences 40 , or terrorist financing or are subject to measures that prohibit their operations in a Member State on the same grounds. In this regards a proportionate level of accountability, public reporting and the transparency of financing and governance structure should be ensured. In view of the non-profit purpose of the ECBA, where an ECBA is constituted by legal entities, they should also have a non-profit purpose.

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40 Directive (EU) 2018/1673 of the European Parliament and of the Council of 23 October 2018 on combating money laundering by criminal law (OJ L 284, 12.11.2018, p. 22–30).

40 Directive (EU) 2018/1673 of the European Parliament and of the Council of 23 October 2018 on combating money laundering by criminal law (OJ L 284, 12.11.2018, p. 22–30).

Amendment 18

Proposal for a directive

Recital 19 – paragraph 1

Text proposed by the Commission

Amendment

The non-profit purpose of an ECBA should mean that, when a profit is generated by means of economic activities, it should be used only in pursuit of the objectives of the ECBA, as defined in its statutes, and may not be redistributed. Therefore, there should be an asset lock requiring that no distribution of assets to members is to take place, even in the event of dissolution. In the latter case, residual assets should be transferred in a disinterested manner, such as to other non-profit associations having the same purpose.

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

Amendment 19

Proposal for a directive

Recital 20 a (new)

Text proposed by the Commission

Amendment

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

Amendment 20

Proposal for a directive

Recital 21

Text proposed by the Commission

Amendment

(21) The cross-border element of an ECBA is central. Therefore, an ECBA should carry out or have in its statutes the objective to carry out at least part of its activities across borders in the Union, in at least two Member States, and have founding members with links to at least two Member States, either based on citizenship or residence in the case of natural persons, or based on the location of their registered office in the case of legal entities.

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

Amendment 21

Proposal for a directive

Recital 23

Text proposed by the Commission

Amendment

(23) Harmonisation throughout the Union of the key features of ECBAs’ legal personality and capacity and their automatic recognition across Member States and the registration procedure, without Member States laying down diverging rules on these issues, is an essential condition for ensuring a level-playing field for all ECBAs. The aspects of ECBAs’ activities that are not harmonised by this Directive should be governed by the national rules that apply to the most similar type of non-profit association in national law. Such entities, independently of their name in the domestic legal order, should in all cases be membership-based, have a non-profit purpose, and have legal personality. To ensure transparency and legal certainty, Member States should notify the Commission of those rules.

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

Amendment 22

Proposal for a directive

Recital 23 a (new)

Text proposed by the Commission

Amendment

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

Amendment 23

Proposal for a directive

Recital 24

Text proposed by the Commission

Amendment

(24) To ensure that Member States have the appropriate tools to combat terrorism financing and ensure transparency of certain capital movements, the rules applicable to ECBAs under this Directive should be without prejudice to measures adopted by Member States to prevent the misuse of non-profit associations for public policy and public security reasons and to ensure transparency of certain capital movements when required by Union law, or national law in compliance with Union law.

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

Amendment 24

Proposal for a directive

Recital 26

Text proposed by the Commission

Amendment

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

(26) ECBAs should be able to decide freely on their rules of operation. Any limitation on this freedom imposed by a Member State should be applied in a general and non-discriminatory way, prescribed by law, justified by an overriding reason in the public interest, be appropriate and limited to what is strictly necessary, and the impact of the measure on the ECBA should proportionate to the objective pursued.

Amendment 25

Proposal for a directive

Recital 27

Text proposed by the Commission

Amendment

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

(27) Articles 52, 62 and 65 TFEU and relevant case law also apply to ECBAs. These TFEU Articles provide for the justification of measures restricting the freedom of establishment, freedom to provide services and free movement of capital on grounds including public policy, public security and public health. Furthermore, the concept of ‘overriding reasons in the public interest’ to which reference is made in certain provisions of this Directive has been developed by the Court of Justice in its case law. Measures by Member States that are liable to hinder or make less attractive the exercise of those Treaty freedoms should be permitted only where they can be justified by objectives listed in the Treaty or by overriding reasons in the public interest recognised by Union law. While no exhaustive definition exists, the Court of Justice has recognised that justifications are possible on various grounds such as public policy, public security and public health, the maintenance of order in society, social policy objectives, the protection of the recipients of services, consumer protection, the protection of workers, or the protection of creditors, provided that the other conditions are met. Such measures need, in any event, to be prescribed by law, appropriate and limited to what is strictly necessary, and the impact of the measure on the ECBA needs to be proportionate to the objective pursued. This is particularly relevant as many associations are active in the public interest areas mentioned in this recital.

Amendment 26

Proposal for a directive

Recital 29

Text proposed by the Commission

Amendment

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

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

Amendment 27

Proposal for a directive

Recital 30

Text proposed by the Commission

Amendment

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

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

Amendment 28

Proposal for a directive

Recital 31

Text proposed by the Commission

Amendment

(31) To facilitate the cooperation among Member States and between Member States and the Commission, Member States should designate a competent authority responsible for the application of the rule transposing this Directive (‘competent authority’). The Commission should publish the list of competent authorities. To have a comprehensive overview of the legal treatment of ECBAs in Member States, Member States should notify the Commission of the names and tasks of relevant authorities, other than the competent authorities, established or designated for the purposes of the national rules applicable to the most similar non-profit association in national law, if applicable.

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

Amendment 29

Proposal for a directive

Recital 33

Text proposed by the Commission

Amendment

(33) In view of their non-profit purpose, ECBAs should be able to apply for funding from a public or private source in the Member State(s) in which they operate on a non-discriminatory basis. There should be no restriction on the ECBA’s right to receive and provide funding, except where a restriction is prescribed by law, justified by an overriding reason in the public interest, is appropriate for ensuring the attainment of the objective pursued and does not go beyond what is necessary for it to be attained and is compliant with Union law.

(33) In view of their non-profit purpose, ECBAs should be able to apply for funding from a public or private source in the Member State(s) in which they operate on a non-discriminatory basis. Therefore, the same rules should apply to the ECBA as those applicable to the single most similar or most commonly used legal form. There should be no restriction on the ECBA’s right to receive and provide funding, except where a restriction is prescribed by law, justified by an overriding reason in the public interest or where the Member State can prove that the ECBA flagrantly and repeatedly breaches the values of the Union enshrined in Article 2 TEU through its activities, where it is compliant with Union law, appropriate and limited to what is strictly necessary, and where the impact of the restriction on the ECBA is proportionate to the objective pursued.

Amendment 30

Proposal for a directive

Recital 35 a (new)

Text proposed by the Commission

Amendment

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

Amendment 31

Proposal for a directive

Recital 36 a (new)

Text proposed by the Commission

Amendment

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

Amendment 32

Proposal for a directive

Recital 38

Text proposed by the Commission

Amendment

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

(38) Member States should be entitled to require a registered ECBA to make a declaration, provide information, request or obtain authorisations for engaging in particular activities only where such requirements are (i) applied in a general and non-discriminatory way, (ii) prescribed by law, (iii) justified by overriding reasons in the public interest, (iv) appropriate and limited to what is strictly necessary, and the impact of the measure on the ECBA should proportionate to the objective pursued. Such requirements may be connected, for example, to the specificities of certain sectors, like healthcare. Where Member States provide for such additional procedures, this information should be made publicly available in a clear, easily accessible and comprehensible way, in order to ensure that an ECBA is able to comply with these requirements.

Amendment 33

Proposal for a directive

Recital 39

Text proposed by the Commission

Amendment

(39) To prevent fraud, it is important that Member States verify the identity of the founding members and the legal representatives of the ECBA. The verification of identity is particularly important if the application for registration is conducted electronically. Due to the variety of different practices in Member States, the specific methods of verifying identity should remain in the prerogative of the Member State concerned.

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

Amendment 34

Proposal for a directive

Recital 40

Text proposed by the Commission

Amendment

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

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

Amendment 35

Proposal for a directive

Recital 41

Text proposed by the Commission

Amendment

(41) Member States should be required to establish a register for the purposes of the registration and for maintaining and publishing information on ECBAs. This register should contain information about ECBAs and the submitted documents. As the information kept in the register may become outdated, Member States should ensure that the ECBA notifies any changes concerning the information on ECBAs to the competent authority and that the information held in the register is updated. Member States should be allowed to make use of their existing national registers for the purpose of this Directive. In order to ensure transparency especially for members of an ECBA and its creditors, if applicable, the ECBA certificate, the liquidation and the dissolution of an ECBA are pieces of information that should be made publicly available for a maximum of 6 months after the dissolution of an ECBA. The interoperability solutions developed as part of the implementation of the Proposal for a Regulation of the European Parliament and of the Council laying down measures for a high level of public sector interoperability across the Union42 can further support Member States to move towards cross-border interoperability of their registers. To ensure that information about the existence of an ECBA is still available even after its dissolution, all data retained and stored in the register should be kept for 2 years after dissolution.

(41) Member States should be required to establish a register or make use of an existing national register for the purposes of the registration and for maintaining and publishing information on ECBAs. This register should contain information about ECBAs and the submitted documents. As the information kept in the register may become outdated, Member States should ensure that the ECBA notifies any changes concerning the information on ECBAs to the competent authority and that the information held in the register is updated. In order to ensure transparency especially for members of an ECBA and its creditors, if applicable, the ECBA certificate, the liquidation and the dissolution of an ECBA are pieces of information that should be made publicly available until the end of the financial year following the dissolution of an ECBA. The interoperability solutions developed as part of the implementation of the Proposal for a Regulation of the European Parliament and of the Council laying down measures for a high level of public sector interoperability across the Union42 can further support Member States to move towards cross-border interoperability of their registers. To ensure that information about the existence of an ECBA is still available even after its dissolution, all data retained and stored in the register should be kept for at least 5 years after dissolution Any national or European requirements concerning the authenticity, reliability and the appropriate legal form of documents or information that are to be submitted in case of online registration of the single most similar or most commonly used legal form, should also apply to the ECBA.

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42 COM(2022)720.

42 COM(2022)720.

Amendment 36

Proposal for a directive

Recital 44

Text proposed by the Commission

Amendment

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

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

Amendment 37

Proposal for a directive

Recital 45

Text proposed by the Commission

Amendment

(45) In compliance with the freedom of assembly and of association, an ECBA should be dissolved only by decision of its members or by a decision of the competent authority of the home Member State. Where the dissolution of an ECBA is the result of a decision of its members, it should be taken by two-thirds of the votes representing at least half of the total of the members during an extraordinary meeting. The dissolution of an ECBA may be involuntary by decision of the competent authority of the home Member State of the ECBA, as a last resort, only where an ECBA does not respect its non-profit purpose, where its activities constitute a threat to public order, or where the members of the executive body of an ECBA have been convicted of a particularly serious criminal offence or the ECBA itself has been convicted of a criminal offence, if national law allows for this possibility. In this case, the competent authority should communicate to the ECBA a formal notice of its concerns and hear the ECBA in order to give the ECBA the opportunity to reply.

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

Amendment 38

Proposal for a directive

Recital 46

Text proposed by the Commission

Amendment

(46) The dissolution of the ECBA should lead to its liquidation. The liquidation of ECBAs should be compliant with Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (EIR 2105)47 which requires that the law applicable to insolvency proceedings and their effects shall be that of the Member State within the territory of which such proceedings are opened. In line with the non-profit purpose of ECBAs, any assets of a dissolved ECBA should be transferred to a non-profit entity carrying out a similar activity as the one carried out by the dissolved ECBA or transferred to a local authority which should utilise them for an activity like that pursued by the dissolved ECBA.

(46) The dissolution of the ECBA should lead to its liquidation. The liquidation of ECBAs should be compliant with Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (EIR 2105)47 which requires that the law applicable to insolvency proceedings and their effects should be that of the Member State within the territory of which such proceedings are opened. In line with the non-profit purpose of ECBAs, any assets of a dissolved ECBA should be transferred to a non-profit entity carrying out an activity similar to one of the activities carried out by the dissolved ECBA or, transferred to a local authority which should utilise them for an activity or for the pursuit of an objective that is similar to one of the activities or objectives of the dissolved ECBA.

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47 Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (EIR 2105), OJ L 141, 5.6.2015.

47 Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (EIR 2105), OJ L 141, 5.6.2015.

Amendment 39

Proposal for a directive

Recital 47

Text proposed by the Commission

Amendment

(47) To enable an ECBA to prove that it has registered within a Member State and to further facilitate cross-border procedures and simplify and reduce formalities, the competent authorities should, as the final step of the registration process, issue a certificate (’ECBA certificate’) which contains the essential registration information, including the name of an ECBA, the address of its registered office, and the names of the legal representatives. To facilitate the use of this certificate in various Member States without additional adaptations or compliance costs, the Commission should establish a standardised template available in all languages of the Union. Therefore, in order to ensure uniform conditions for the implementation of this act, implementing powers should be conferred on the Commission to produce a standardised template including in relation to the technical specifications of the template. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council48 . Those implementing acts should be adopted in accordance with the examination procedure referred to in Article 5 of Regulation (EU) No 182/2011 of the European Parliament and of the Council.

(47) To enable an ECBA to prove that it has registered within a Member State and to further facilitate cross-border procedures and simplify and reduce formalities, the competent authorities should, as the final step of the registration process, issue a certificate (’ECBA certificate’) which contains the essential registration information, including the name of the association followed or preceded by the acronym 'ECBA', the address of its registered office, and the names of the legal representatives. To facilitate the use of this certificate in various Member States without additional adaptations or compliance costs, the Commission should establish a standardised template available in all languages of the Union. Therefore, in order to ensure uniform conditions for the implementation of this act, implementing powers should be conferred on the Commission to produce a standardised template including in relation to the technical specifications of the template. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council48. Those implementing acts should be adopted in accordance with the examination procedure referred to in Article 5 of Regulation (EU) No 182/2011 of the European Parliament and of the Council.

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48 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers, OJ L 55, 28.02.2011.

48 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers, OJ L 55, 28.02.2011.

Amendment 40

Proposal for a directive

Recital 48

Text proposed by the Commission

Amendment

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

deleted

Amendment 41

Proposal for a directive

Recital 49 a (new)

Text proposed by the Commission

Amendment

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

Amendment 42

Proposal for a directive

Recital 49 b (new)

Text proposed by the Commission

Amendment

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

Amendment 43

Proposal for a directive

Recital 49 c (new)

Text proposed by the Commission

Amendment

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

Amendment 44

Proposal for a directive

Article 2 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) “non-profit purpose” means that, regardless of whether the association’s activities are of an economic nature or not, any profits generated are used only in pursuit of the objectives of the ECBA as defined in its statutes and not to be distributed among its members;

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

Amendment 45

Proposal for a directive

Article 2 – paragraph 1 – point d

Text proposed by the Commission

Amendment

(d) “non-profit association” means a legal entity under national law that is membership-based, has a non-profit purpose and has legal personality;

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

Amendment 46

Proposal for a directive

Article 2 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e) “ECBA certificate” means a certificate issued by the competent authority of the home Member State, serving as evidence of the registration of an ECBA.

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

Amendment 47

Proposal for a directive

Article 2 – paragraph 1 – point e a (new)

Text proposed by the Commission

Amendment

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

Amendment 48

Proposal for a directive

Article 3 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) trade unions, political parties, religious organisations and associations of such entities;

(a) trade unions and political parties;

Amendment 49

Proposal for a directive

Article 3 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall ensure that an ECBA shall have a non-profit purpose and any profits of an ECBA shall be used exclusively for the pursuit of its objectives, as described in its statutes, without any distribution among its members.

2. Member States shall ensure that an ECBA shall have a non-profit purpose in accordance with Article 2(1), point (c).

Amendment 50

Proposal for a directive

Article 3 – paragraph 3

Text proposed by the Commission

Amendment

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

3. Member States shall ensure that an ECBA shall carry out or have in its statute the objective to carry out activities in at least two Member States and have founding members with links to at least two Member States, either:

Amendment 51

Proposal for a directive

Article 3 – paragraph 3 – point a (new)

Text proposed by the Commission

Amendment

(a) based on citizenship or legal residence in the case of natural persons; or

Amendment 52

Proposal for a directive

Article 3 – paragraph 3 – point b (new)

Text proposed by the Commission

Amendment

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

Amendment 53

Proposal for a directive

Article 4 – paragraph 2

Text proposed by the Commission

Amendment

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

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

Amendment 54

Proposal for a directive

Article 4 – paragraph 3

Text proposed by the Commission

Amendment

3. The rules applicable to ECBAs under this Directive shall not affect the measures adopted by Member States on grounds of public policy and public security to prevent the risk of misuse of non-profit associations and to ensure transparency of certain capital movements when required by Union law or national law in compliance with Union law.

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

Amendment 55

Proposal for a directive

Article 4 – paragraph 4

Text proposed by the Commission

Amendment

4. By [two years after the entry into force of this Directive], each Member State shall identify the most similar legal form of non-profit association in its domestic legal order as referred to in paragraph 2 and notify the Commission thereof and of the national rules that apply to that legal form. Member States shall notify the Commission without delay of any changes regarding the legal forms identified and of any changes to the rules applicable to them. Member States and the Commission shall make the notified information referred to in this paragraph publicly available.

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

Amendment 56

Proposal for a directive

Article 4 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

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

Amendment 57

Proposal for a directive

Article 5 – paragraph 1

Text proposed by the Commission

Amendment

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

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

Amendment 58

Proposal for a directive

Article 5 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall ensure that an ECBA has the right to conclude contracts and perform legal acts, be a party to legal proceedings, own movable and immovable property, carry out economic activities, employ staff, receive, solicit and dispose of donations and other funds of any kind from any lawful source, participate in public tenders, and apply for public funding.

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

Amendment 59

Proposal for a directive

Article 6 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) justified by overriding reasons in the public interest;

(b) justified by overriding reasons in the public interest; and

Amendment 60

Proposal for a directive

Article 6 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) appropriate for ensuring the attainment of the objective pursued and do not go beyond what is necessary in order for it to be attained.

(c) appropriate for the attainment of the objective pursued, do not go beyond what is strictly necessary and the impact of the restricting rules on an ECBA is proportionate to the objective pursued.

Amendment 61

Proposal for a directive

Article 6 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

2. Member States shall ensure that the statutes of an ECBA include the following information:

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

Amendment 62

Proposal for a directive

Article 6 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) a detailed description of its objectives and a statement of its non-profit purpose;

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

Amendment 63

Proposal for a directive

Article 6 – paragraph 2 – point b a (new)

Text proposed by the Commission

Amendment

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

Amendment 64

Proposal for a directive

Article 6 – paragraph 2 – point d

Text proposed by the Commission

Amendment

(d) where a founding member is a legal entity, a detailed description of its statutes and a detailed description of its non-profit purpose;

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

Amendment 65

Proposal for a directive

Article 6 – paragraph 2 – point j

Text proposed by the Commission

Amendment

(j) provisions governing appointment, removal, powers and responsibilities of the members of the executive body;

(j) provisions governing the number, appointment, removal, powers and responsibilities of the members of the executive body;

Amendment 66

Proposal for a directive

Article 6 – paragraph 2 – point n

Text proposed by the Commission

Amendment

(n) the method of disposition of the ECBA’s assets in the event of dissolution.

(n) the method of disposition of the ECBA’s assets in the event of dissolution; and

Amendment 67

Proposal for a directive

Article 6 – paragraph 2 – point n a (new)

Text proposed by the Commission

Amendment

(na) the date of adoption of the statutes.

Amendment 68

Proposal for a directive

Article 7 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall ensure that only natural persons that are Union citizens or legally resident in the Union and legal entities with a non-profit purpose established in the Union, through their representatives, may be members of the executive body of an ECBA. The executive body of an ECBA shall be composed of a minimum of three persons.

2. The executive body of an ECBA shall be composed of a minimum of three persons, of which at least two persons are natural persons that are Union citizens or legally resident in the Union, or legal entities with a non-profit purpose established in the Union, through their representatives.

Amendment 69

Proposal for a directive

Article 7 – paragraph 3

Text proposed by the Commission

Amendment

3. Member States shall ensure that natural persons who have been convicted of a particularly serious criminal offence are not to be members of the executive body or representatives of a legal entity that is a member of the executive body.

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

Amendment 70

Proposal for a directive

Article 8 – paragraph -1 (new)

Text proposed by the Commission

Amendment

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

Amendment 71

Proposal for a directive

Article 8 – paragraph 1

Text proposed by the Commission

Amendment

1. Member States shall ensure that each member of an ECBA has one vote.

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

Amendment 72

Proposal for a directive

Article 10 – paragraph 1

Text proposed by the Commission

Amendment

Member States shall ensure that, within the ambit of application of this Directive, public authorities do not discriminate against any group or individual on any grounds, such as birth, age, colour, sex and gender, sexual orientation, gender identity, health conditions, immigration or residency status, genetic features, language, national, ethnic or social origin, political or any other opinion, physical or mental disability, membership of a national minority, property, race, religion or belief, or other status.

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

Amendment 73

Proposal for a directive

Article 11 – paragraph 1

Text proposed by the Commission

Amendment

Member States shall ensure that all decisions of competent authorities on their territory affecting the rights and obligations of ECBAs, or the rights and obligations of other persons in connection to the operations of ECBAs, are subject to effective judicial review, in compliance with Article 47 Charter of Fundamental Rights of the Union.

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

Amendment 74

Proposal for a directive

Article 12 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

2. Member States shall not require registered ECBAs to make a declaration, provide information, or request or obtain authorisations for engaging in particular activities, unless such requirements are:

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

Amendment 75

Proposal for a directive

Article 12 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) justified by overriding reasons in the public interest;

(b) justified by overriding reasons in the public interest; and

Amendment 76

Proposal for a directive

Article 12 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) appropriate for ensuring the attainment of the objective pursued and do not go beyond what is necessary in order for it to be attained.

(c) appropriate for the attainment of the objective pursued, do not go beyond what is strictly necessary and the impact of the requirements on an ECBA is proportionate to the objective pursued.

Amendment 77

Proposal for a directive

Article 13 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

2. Member States shall not impose any restrictions on an ECBA’s ability to provide or receive funding, including donations, from any lawful source, except to the extent that such restrictions are:

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

Amendment 78

Proposal for a directive

Article 13 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) justified by overriding reasons in the public interest;

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

Amendment 79

Proposal for a directive

Article 13 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) appropriate for ensuring the attainment of the objective pursued and do not go beyond what is necessary in order for it to be attained.

(c) appropriate for the attainment of the objective pursued, do not go beyond what is strictly necessary and the impact of the restriction on an ECBA is proportionate to the objective pursued.

Amendment 80

Proposal for a directive

Article 14 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

2. Without prejudice to provisions of other acts of Union law, Member States shall not impose any restrictions on the activities referred to in paragraph 1, unless such restrictions are:

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

Amendment 81

Proposal for a directive

Article 14 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) justified by overriding reasons in the public interest;

(b) justified by overriding reasons of public interest; and

Amendment 82

Proposal for a directive

Article 14 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) appropriate for ensuring the attainment of the objective pursued and do not go beyond what is necessary in order for it to be attained.

(c) appropriate for the attainment of the objective pursued, do not go beyond what is strictly necessary and the impact of the restriction on an ECBA is proportionate to the objective pursued.

Amendment 83

Proposal for a directive

Article 15 – paragraph 1 – point g – introductory part

Text proposed by the Commission

Amendment

(g) the following restrictions on the exercise of economic activities, whether carried out on a regular or on an occasional basis:

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

Amendment 84

Proposal for a directive

Article 15 – paragraph 1 – point g a (new)

Text proposed by the Commission

Amendment

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

Amendment 85

Proposal for a directive

Article 16 – paragraph 3

Text proposed by the Commission

Amendment

3. Member States shall ensure that the founding members express their intention to constitute an ECBA either by written agreement between them or by an agreement at the constitutive meeting of the ECBA that is recorded in the written minutes; to that end, such an agreement or minutes shall be duly signed by the founding members.

3. Member States shall ensure that the formation of an ECBA shall be executed by a written agreement between all of the founding members or by written minutes documenting the constitutive meeting signed by all founding members and duly verified if the applicable national law requires so for the legal entity identified in accordance with Article 4(4).

Amendment 86

Proposal for a directive

Article 17 – title

Text proposed by the Commission

Amendment

Conversion of non-profit associations into an ECBA

Conversion of non-profit entities into an ECBA

Amendment 87

Proposal for a directive

Article 17 – paragraph 1

Text proposed by the Commission

Amendment

1. Member States shall ensure that non-profit associations established in the Union may convert into an ECBA within the same Member State.

1. Member States shall ensure that existing non-profit entities that are legally established in a Member State and which fulfil the requirements set out in this Directive, can convert into an ECBA within the same Member State.

Amendment 88

Proposal for a directive

Article 17 – paragraph 3

Text proposed by the Commission

Amendment

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

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

Amendment 89

Proposal for a directive

Article 17 a (new)

Text proposed by the Commission

Amendment

Article 17a

Merger of existing non-profit entities into an ECBAs

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

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

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

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

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

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

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

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

Amendment 90

Proposal for a directive

Article 18 – paragraph 1 – subparagraph 1 – introductory part

Text proposed by the Commission

Amendment

Member States shall ensure that an application for registration of an ECBA is submitted to the competent authority of the Member State in which the ECBA intends to have its registered office. The application shall be accompanied by the following documents and information, provided in an official language of that Member State or any other language allowed under the law of that Member State:

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

Amendment 91

Proposal for a directive

Article 18 – paragraph 1 – subparagraph 1 – point c

Text proposed by the Commission

Amendment

(c) the postal address of the intended registered office and an electronic mail address;

(c) the postal address of the intended registered office;

Amendment 92

Proposal for a directive

Article 18 – paragraph 1 – subparagraph 1 – point e

Text proposed by the Commission

Amendment

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

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

Amendment 93

Proposal for a directive

Article 18 – paragraph 3

Text proposed by the Commission

Amendment

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

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

Amendment 94

Proposal for a directive

Article 18 – paragraph 4

Text proposed by the Commission

Amendment

4. Member States shall ensure that the application for registration of an ECBA may be submitted online.

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

Amendment 95

Proposal for a directive

Article 19 – paragraph 4 – subparagraph 1 – point d

Text proposed by the Commission

Amendment

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

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

Amendment 96

Proposal for a directive

Article 19 – paragraph 4 – subparagraph 1 – point e

Text proposed by the Commission

Amendment

(e) where any person authorised to represent the ECBA referred to in Article 18(1), point (d) or any member of the executive body, has been convicted of a particularly serious criminal offence.

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

Amendment 97

Proposal for a directive

Article 19 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

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

___________

* Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 establishing a single digital gateway to provide access to information, to procedures and to assistance and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, p. 1).

Amendment 98

Proposal for a directive

Article 20 – paragraph 1

Text proposed by the Commission

Amendment

1. Each Member State shall establish a register for the purposes of registration of ECBAs pursuant to Article 19.

1. Each Member State shall designate a national register and responsible public body, for the purposes of registration of ECBAs pursuant to Article 19, and shall inform the Commission thereof.

Amendment 99

Proposal for a directive

Article 20 – paragraph 2 – point a a (new)

Text proposed by the Commission

Amendment

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

Amendment 100

Proposal for a directive

Article 20 – paragraph 5

Text proposed by the Commission

Amendment

5. Member States shall ensure that the documents and information referred to in paragraph 4 are not publicly available for longer than 6 months after the dissolution of an ECBA.

5. Member States shall ensure that the documents and information referred to in paragraph 4 are publicly available until the end of the financial year following the dissolution of an ECBA.

Amendment 101

Proposal for a directive

Article 20 – paragraph 6

Text proposed by the Commission

Amendment

6. Member States shall ensure that personal data are not retained in the register after the dissolution of an ECBA for longer than 2 years.

6. Member States shall ensure that personal data are not retained in the register after the dissolution of an ECBA for longer than 5 years.

Amendment 102

Proposal for a directive

Article 21 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

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

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

Amendment 103

Proposal for a directive

Article 21 – paragraph 3

Text proposed by the Commission

Amendment

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

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

Amendment 104

Proposal for a directive

Article 22 – paragraph 4 – point c

Text proposed by the Commission

Amendment

(c) when insolvency are pending;

(c) when an ECBA has been declared insolvent or is subject to insolvency proceedings;

Amendment 105

Proposal for a directive

Article 22 – paragraph 4 – point d

Text proposed by the Commission

Amendment

(d) where the persons authorised to represent the ECBA referred to in Article 18(1), point (d), any member of the executive body or the ECBA itself, if national law provides for this possibility, are the subject of proceedings for a particularly serious criminal offence in the previous home Member State.

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

Amendment 106

Proposal for a directive

Article 23 – paragraph 1

Text proposed by the Commission

Amendment

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

1. Without prejudice to any provisions in force more favourable to employees based on national or Union law, Member States shall ensure that the employees of an ECBA willing to transfer its registered office are informed of the potential transfer and entitled, in good time and at least one month before the meeting referred to in paragraph 2, to examine the draft of the decision approving the request for transfer of registered office referred to in paragraph 3, and to express their views.

Amendment 107

Proposal for a directive

Article 23 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

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

_____________

* Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law (OJ L 169, 30.06.2017, p.46).

Amendment 108

Proposal for a directive

Article 23 – paragraph 2

Text proposed by the Commission

Amendment

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

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

Amendment 109

Proposal for a directive

Article 23 – paragraph 3 – point f

Text proposed by the Commission

Amendment

(f) a report explaining the safeguards for creditors and employees, if applicable under Union or national law.

(f) a report explaining in detail the safeguards for creditors and employees that the ECBA has put in place, in accordance with Union law, national law and collective agreements.

Amendment 110

Proposal for a directive

Article 23 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

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

Amendment 111

Proposal for a directive

Article 24 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. Member States shall ensure that an ECBA shall only be dissolved by decision of its members and only in the following cases:

1. Member States shall ensure that an ECBA shall only be dissolved by decision of its members and in accordance with its statutes.

Amendment 112

Proposal for a directive

Article 24 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) the objective of the ECBA has been achieved;

deleted

Amendment 113

Proposal for a directive

Article 24 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) the time for which it was set up has expired;

deleted

Amendment 114

Proposal for a directive

Article 24 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) for any reason in accordance with its statutes.

deleted

Amendment 115

Proposal for a directive

Article 25 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

2. Member States may provide for the involuntary dissolution of an ECBA only on the basis of one of the following reasons:

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

Amendment 116

Proposal for a directive

Article 25 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) a serious threat to public order or public security caused by the activities of the ECBAs;

(b) a serious threat to public order or public security caused by the activities of the ECBAs; or

Amendment 117

Proposal for a directive

Article 25 – paragraph 2 – point b a (new)

Text proposed by the Commission

Amendment

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

Amendment 118

Proposal for a directive

Article 25 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) a conviction for a serious criminal offence of the ECBA or of the members of its executive body;

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

Amendment 119

Proposal for a directive

Article 25 – paragraph 2 – point c a (new)

Text proposed by the Commission

Amendment

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

Amendment 120

Proposal for a directive

Article 25 – paragraph 3

Text proposed by the Commission

Amendment

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

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

Amendment 121

Proposal for a directive

Article 25 – paragraph 4

Text proposed by the Commission

Amendment

4. Member States shall ensure that where, after having duly examined the replies by the ECBA pursuant to paragraph 3 of this Article, the competent authority determines that the ECBA must be dissolved because one of the reasons referred to in paragraph 2 of this Article has been ascertained, it shall adopt a written decision to that effect. A decision to dissolve an ECBA may only be taken where there are no less restrictive measures capable of addressing the concerns raised by the competent authority.

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

Amendment 122

Proposal for a directive

Article 25 – paragraph 5

Text proposed by the Commission

Amendment

5. Member States shall ensure that the decision referred to in paragraph 4 of this Article is reasoned, subject to effective judicial review, and does not take effect while judicial review is pending.

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

Amendment 123

Proposal for a directive

Article 26 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall ensure that any assets of the dissolved ECBA remaining after financial interests of possible creditors are discounted are transferred to a non-profit entity carrying out a similar activity as the dissolved ECBA or that the assets are transferred to a local authority, which is obliged to utilise them for an activity that is similar to the one pursued by the dissolved ECBA.

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

Amendment 124

Proposal for a directive

Article 27 – paragraph 1

Text proposed by the Commission

Amendment

1. Each Member States shall designate the competent authority (‘competent authority’) responsible for the application of this Directive.

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

Amendment 125

Proposal for a directive

Article 27 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall notify the Commission of the names of the competent authority designated pursuant to paragraph 1. The Commission shall publish a list of the designated competent authorities.

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

Amendment 126

Proposal for a directive

Article 27 – paragraph 3

Text proposed by the Commission

Amendment

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

3. Member States shall notify the Commission of the names and tasks of other competent authorities established or designated for the purposes of the national rules applicable to the legal entity in their domestic legal order identified pursuant to Article 4(4), if applicable.

Amendment 127

Proposal for a directive

Article 29 – title

Text proposed by the Commission

Amendment

Reporting

Reporting and review

Amendment 128

Proposal for a directive

Article 29 – paragraph -1 a (new)

Text proposed by the Commission

Amendment

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

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

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

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

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

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

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

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

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

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

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

Amendment 129

Proposal for a directive

Article 29 – paragraph 1

Text proposed by the Commission

Amendment

By [seven years after transposition deadline] at the latest, and every five years thereafter, the Commission shall report to the European Parliament and to the Council on the transposition and application of this Directive. To that end, the Commission may request, to the extent possible through digital tools, Member States to share aggregated data concerning ECBAs registered in their territory.

By ... [five years after transposition deadline] at the latest, and every five years thereafter, the Commission shall report to the European Parliament and to the Council on the transposition and application of this Directive. The report shall be preceded by a consultation of relevant stakeholders, including ECBAs and other relevant non-profit organisations, and shall include in particular:

Amendment 130

Proposal for a directive

Article 29 – paragraph 1 – point a (new)

Text proposed by the Commission

Amendment

(a) an overview of the number and geographical spread of ECBAs in the EU;

Amendment 131

Proposal for a directive

Article 29 – paragraph 1 – point b (new)

Text proposed by the Commission

Amendment

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

Amendment 132

Proposal for a directive

Article 29 – paragraph 1 – point c (new)

Text proposed by the Commission

Amendment

(c) an assessment of the relevant legal, technical and economic developments affecting non-profit associations, and

Amendment 133

Proposal for a directive

Article 29 – paragraph 1 – point d (new)

Text proposed by the Commission

Amendment

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

Amendment 134

Proposal for a directive

Article 29 – paragraph 1 – subparagraph 1 (new)

Text proposed by the Commission

Amendment

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

Amendment 135

Proposal for a directive

Article 29 a (new)

Text proposed by the Commission

Amendment

Article29a

ECBA Committee

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

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

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

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

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

Amendment 136

Proposal for a directive

Article 30

Text proposed by the Commission

Amendment

Article 30

deleted

Committee procedure

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

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

Amendment 137

Proposal for a directive

Article 31 – paragraph 1

Text proposed by the Commission

Amendment

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

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

Amendment 138

Proposal for a directive

Article 31 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

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

Amendment 139

Proposal for a directive

Article 31 – paragraph 2

Text proposed by the Commission

Amendment

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

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

EXPLANATORY STATEMENT

The proposal for a Directive on European cross-border associations (‘ECBA’) follows the Eu-ropean Parliament’s Resolution of 17 February 2022 with recommendations to the Commis-sion on a statute for European cross-border associations and non-profit organisations, and as well numerous calls over time from the Parliament and civil society to give associations a European legal form.

The Commission estimates the number of non-profit associations in the Member States at 3.8 million, roughly 10% of which are active across the EU. Through their activities in various sectors, they contribute 2.9% to the EU GDP.

Civil society organisations, including but not limited to associations, continue to face various administrative burdens due to a lack of approximation of practices, unjustified restrictions and other hurdles. They are subject to attempts to restrict their activities on political grounds, including the denial, refusal or challenging of their status as public benefit organi-sation.

The rapporteur welcomes the proposal to establish an ECBA by way of establishing a legal form in all Member States.

- In addition to making the same rules applicable to the ECBA that apply to the most similar non-profit association in national law, it should be taken into account which form is the most commonly used. This is to reflect that the Directive should be fit to the established and known practices of associations under existing national rules. The ECBA should therefore be treated equally with the legal form that associations already most commonly choose, providing them with all added benefits of the ECBA.

- The ECBA is a first step to put associations in the EU at the minimum on equal footing with commercial interests, therefore inspiration was taken from the Compa-ny Law Directive in adding provisions for the merger of existing ECBAs.

- The new ECBA Committee will foster the mutual exchange and cooperation of Member States with regards to the implementation and application of the Directive and has an advisory role towards the Commission.

- European civil society is coming increasingly under pressure from governments and administrations, in particular regarding access to funds and donations, and to their status as public benefit organisations. At the same time, associations remain instru-mental for democracy and policy making at all levels. They promote and work for the public good, they are part of the checks and balances necessary for the rule of law, and they are drivers for civic engagement of citizens. Member states should therefore not restrict activities or objectives with regard to participating in matters of public or political debate.

ANNEX: LIST OF ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he has received input from the following entities or persons in the preparation of the draft report.

Entity and/or person

Allianz "Rechtssicherheit für politische Willensbildung" e.V.

Alzheimer Europe

Caritas Europa

CEDAG - European Council of Associations of General Interest

Centre Français des Fonds et Fondations

Civil Society Europe

Deutscher Caritasverband e.V.

E.A.N. - European Ageing Network

EASPD - European Association of Service Providers for Persons with Disabilities

ECNL European Center for Not-For-Profit Law Stichting

EPR - European Platform for Rehabilitation

ESU - European Students' Union

Eurodiaconia

European Alternatives

European Civic Forum

European Fundraising Association, COFACE

FEANTSA - European Federation of National Organisations Working with the Homeless

France générosités

Human Rights Cities Network

Irish Council for Civil Liberties

Le Mouvement associatif

Maecenata Stiftung

Ökotárs - Hungarian Environmental Partnership Foundation

Philea

Red Cross EU Office

Samaritan International

Social Services Europe

The list above is drawn up under the exclusive responsibility of the rapporteur.

07.12.2023

LETTER OF THE COMMITTEE ON THE INTERNAL MARKET AND CONSUMER PROTECTION

Mr Adrián VÁZQUEZ LÁZARA

Chair

Committee on Legal Affairs

BRUSSELS

Subject: Opinion in the form of a letter on the proposal for a Directive of the European Parliament and of the Council on European cross-border associations (COM(2023)0516 – C90326/2023 – 2023/0315(COD))

Dear Mr Chair,

Under the procedure referred to above, the Committee on the Internal Market and Consumer Protection has been asked to submit an opinion to your committee. At its meeting of 19 September 2023, the committee coordinators decided to send the opinion in the form of a letter.

The Committee on the Internal Market and Consumer protection adopted its opinion in a form of a letter with the below amendments and principles and priorities at its meeting of 4 December 2023, and decided to call on the Committee on Legal Affairs (JURI), as the committee responsible, to incorporate the following amendments into its legislative report, and take kind note of the following principles and priorities.

Yours sincerely,

Anna CAVAZZINI

Chairwoman

AMENDMENTS

IMCO 1

Recital 6a new

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

IMCO 2

Recital 8

(8) In order to establish a genuine internal market for the economic activities of non-profit associations, it is necessary to abolish any unjustified restrictions on the freedom of establishment, the free movement of services, the free movement of goods and the free movement of capital that still apply in the laws of certain Member States. These restrictions create legal uncertainty, discourage and hinder non-profit associations from operating cross-border, not least because they impose on them a specific need to allocate resources to unnecessary administrative or compliance activities, which has a particularly deterrent effect in view of their non-profit nature.

IMCO 3

Recital 9a new

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

IMCO 4

Recital 13

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

IMCO 5

Recital 13a new

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

IMCO 6

Recital 23

(23) Harmonisation throughout the Union of the key features of ECBAs’ legal personality and capacity and their automatic recognition across Member States and the registration procedure, without Member States laying down diverging rules on these issues, is an essential condition for ensuring a level-playing field for all ECBAs, required under the single market, and creating legal certainty. That may lead to cost reduction, improved access to the single market for associations, increased offer and quality of services and products, better cooperation, more competition and will foster innovation. The aspects of ECBAs’ activities that are not harmonised by this Directive should be governed by the national rules that apply to the most similar type of non-profit association in national law. Such entities, independently of their name in the domestic legal order, should in all cases be membership-based, have a non-profit purpose, and have legal personality. To ensure transparency and legal certainty, Member States should notify the Commission of those rules.

IMCO 7

Recital 36a new

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

IMCO 8

Article 14 - paragraph 1

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

IMCO 9

Article 17 heading

Conversion of non-profit associations into an ECBA and mergers of existing ECBAs

IMCO 10

Article 17 - paragraph 1a new

1a. Member States shall allow existing ECBAs established in the Union to merge with another ECBA within the same Member State or established in another Member State.

IMCO 11

Article 17 - paragraph 2

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

IMCO 12

Article 17 - paragraph 3

3. Member States shall ensure the conversion or merger shall not result in the dissolution of the non-profit association that is converting or merging or in any loss of interruption of its legal personality.

IMCO 13

Article 17 - paragraph 5

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

IMCO 14

Article 17 - paragraph 6

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

IMCO 15

Article 17 - paragraph 6a new

6a. Member States shall ensure that the request for conversion or merger may be submitted online.

IMCO 16

Article 29 heading

Reporting, evaluation and revision

IMCO 17

Article 29

By [three years after transposition deadline] at the latest, and every five years thereafter, the Commission shall submit a report to the European Parliament and to the Council on the transposition and application of this Directive. The report shall in particular analyse the impact of the measures, adopted in compliance with this Directive, on the proper functioning of the internal market, on non-profit associations, particularly on those operating in more than one Member State. The report shall also consider the adequacy and the proportionality of the measures and their impact on the third sector. To that end, the Commission may request, to the extent possible through digital tools, Member States to share aggregated data concerning ECBAs registered in their territory.

IMCO 18

Article 29 - paragraph 1a new

1a. Shall the Commission find it necessary, the report may be accompanied by proposal for adapting the Directive to legal, technical and economic developments affecting non-profit assosiations, consumer protection and to the proper functioning of the internal market.

IMCO 19

Article 31 - paragraph 1

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

IMCO 20

Article 31 - paragraph 1a new

1a. In the format of a structured dialogue, Member States shall consult non-profit organisations already established, registered or operating in their territory in a timely and transparent manner in the process of transposition and implementation of the provisions of this Directive.

IMCO 21

Article 31 - paragraph 2

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

PRINCIPLES AND PRIORITIES

In addition to the amendments set out above, on behalf of the Committee, I would like to stress that these amendments are based on the following principles and priorities:

I. Removing the existing barriers that the non-profit associations face with regard to the exercise of all internal market freedoms: despite the increasing numbers of cross-border associations and non-profit organisations in the Union, there is currently no harmonised European legislative framework allowing them to operate and organise themselves efficiently and effectively at cross-border level. Non-profit organisations that operate across the Union often face unjustified restrictions, which hinders their activities and discourages them from extending their missions across borders. Furthermore, the regulatory and administrative barriers that the cross-border associations encounter often create unnecessary excessive costs; a comprehensive set of measures should be put in place to ensure long-term predictable, fair, adequate and enabling environment for the non-profit associations that wish to engage in cross-border activities.

II. Creating a level playing field for the non-profit associations operating in the internal market: the lack of approximation of practices leads to an uneven playing field due to the different market conditions and the diverse obstacles that non-profit organisations face in different Member States, for example when opening bank accounts, raising and accounting funds, benefitting from public support measures and schemes and verifying and complying with requirements with regard to transparency duties. In order to achieve a fully functioning internal market, non-profit associations engaging in cross border activities should be given instruments and opportunities equivalent to those available to other organisational legal structures, thereby giving a European dimension to their organisation and activities and creating a favourable environment for their development. Removing the barriers for non-profit associations inside the internal market will lead to an increase in the services and products offered on the national markets, as well as more cooperation and competition. This will foster innovation and enhance quality for services and goods.

III. Enhancing and encouraging the use of digital technologies: the use of digital means can help reducing the administrative burdens linked to cross-border activities of non-profit associations, and ensure efficient administrative cooperation. Furthermore, the application of digital means could facilitate the enforcement of the rules. The possibilities offered by the digitalization should be fully exploited by the Member States in order to facilitate the excercise by the non-profit associations of their right to freedom of association and the right to freedom of mobility. To facilitate the registration process, including in the case of convertion, Member States should ensure that the application for registration may be submitted online. In addition, digital means should be used to facilitate and speed up, where possibe, the procedures and the administrative cooperation.

IV. Transparency of information: all non-profit associations should have access, including online access, to clear and easily understandable information on the conditions and procedures governing the formation, governance, registration, conversion and regulation of non-profit association, involved in cross-border activities. All administrative procedures should be clear and Member States should offer assistance services where and when necessary. Using standardised on-line procedures and entailing standardised information required for the registration of an european cross-border association is essential for the effective functioning of the internal market.

V. Active participation: non-profit associations should be consulted about the introduction, review and implementation of any legislation, policies and practices that affect their operations, including with regard to transposition and implementation of this Directive's provisions. To that end, a regular and transparent civil dialogue should be established.

VI. Reporting, evaluation and revision: based on the information provided by the Member States in accordance with Art. 31, the Commission shall present a report to the European Parliament and the Council on the implementation and application of this Directive no later than three years after the deadline for its transposition. That report shall analyse the impact of the measures, adopted in compliance with this Directive, on the proper functioning of the internal market, on non-profit associations, particularly on those operating in more than one Member State. The report shall also consider the adequacy and the proportionality of the measures and their impact on the third sector. Should the Commission find it necessary, the report may be accompanied by proposal for adapting the Directive to legal, technical and economic developments affecting the non-profit assosiations, consumer protection and to the proper functioning of the internal market. It should be ensured that additional laws and regulations, both on national and European level, are not unnecessarily burdensome on the organisations and are proportionate to the size of the organisations and the scope of activities. Thus, additional legislation should not result in disproportionate requirements or unduly restrict cross-border financing in line with the rules on free movement of capital laid down in the Treaties.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The Chair, in her capacity as rapporteur, declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE RESPONSIBLE

Title

European cross-border associations

References

COM(2023)0516 – C9-0326/2023 – 2023/0315(COD)

Date submitted to Parliament

5.9.2023

Committee responsible

Date announced in plenary

JURI

2.10.2023

Committees asked for opinions

Date announced in plenary

IMCO

2.10.2023

LIBE

2.10.2023

Not delivering opinions

Date of decision

LIBE

19.9.2023

Rapporteurs

Date appointed

Sergey Lagodinsky

26.6.2023

Discussed in committee

29.11.2023

Date adopted

13.2.2024

Result of final vote

+:

–:

0:

20

3

0

Members present for the final vote

Ilana Cicurel, Ibán García Del Blanco, Virginie Joron, Pierre Karleskind, Sergey Lagodinsky, Gilles Lebreton, Karen Melchior, Jiří Pospíšil, Franco Roberti, Adrián Vázquez Lázara, Axel Voss, Marion Walsmann, Tiemo Wölken, Lara Wolters

Substitutes present for the final vote

Pascal Durand, Heidi Hautala, Witold Pahl, Kosma Złotowski

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

Isabel Benjumea Benjumea, Ana Collado Jiménez, Catherine Griset, Anne-Sophie Pelletier, Laurence Sailliet

Date tabled

27.2.2024

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

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