Changes from plenary report to adopted text

Removed(e) fines not exceeding 0,5% of the undertaking’s net annual worldwide turnover, where it, intentionally or through gross negligence, does not comply with the obligation to prioritise the production of defence products pursuant to Article 50(2).

Removed1a. Fines referred to in paragraph 1 shall be calculated on the basis of the net annual worldwide turnover of the undertaking in the financial year preceding that of the decision to impose the fine.

Removed2. Before taking a decision pursuant to paragraph 1 of this Article, the Commission shall provide an opportunity for the concerned undertakings and associations, including their owners or representatives, to be heard in accordance with Article 56. It shall take into account any duly reasoned justification presented by them for the purpose of determining whether fines or periodic penalty payments are deemed necessary and proportionate.

Removed3. Implementing acts referred to in this Article shall be adopted in accordance with the examination procedure referred to in Article 58(3).

Removed4. In fixing the amount of the fine or periodic penalty payment, the Commission shall take into consideration the nature, gravity and duration of the infringement, including in cases of non-compliance with the obligation to accept and prioritise a priority-rated order set out in Article 47, whether the undertakings or associations, including their owners or representatives referred to in paragraph (1), have partially complied with the priority-rated order.

Removed5. The fines shall constitute external assigned revenue within the meaning of Article 21(5) of the Financial Regulation to the Ukraine Support Instrument.

Removed1. Before adopting a decision pursuant to Article 55, the Commission shall ensure that the concerned undertakings and associations, including their owners or representatives, have been given the opportunity to submit observations on:

Removed(a) the preliminary findings of the Commission, including any matter to which the Commission has taken objections;

Removed(b) the measures that the Commission may intend to take in view of the preliminary findings pursuant to point (a) of this paragraph.

Removed2. The concerned undertakings and associations, including their owners or representatives may submit their observations to the Commission’s preliminary findings within a time limit which shall be fixed by the Commission in its preliminary findings, and which may not be less than 14 working days.

Removed3. The Commission shall base its imposition of fines or periodic penalty payments only on objections on which the concerned undertakings and associations, including their owners or representatives, have been able to comment.

Removed4. Where the Commission has informed the concerned undertakings and associations, including their owners or representatives, of its preliminary findings as referred to in paragraph (1), it shall give access, if so requested, to the Commission's file under the terms of a negotiated disclosure, subject to the legitimate interest of undertakings in the protection of their business secrets, or in order to preserve business secrets or other confidential information of any person. The right of access to the file shall not extend to confidential information and internal documents of the Commission or the authorities of the Member States. In particular, the right of access shall not extend to correspondence between the Commission and the authorities of the Member States. Nothing in this paragraph shall prevent the Commission from disclosing and using information necessary to prove an infringement.

RemovedGovernance, evaluation and control

RemovedExercise of the delegation

Removed1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

Removed2. The power to adopt delegated acts referred to in Article 18(2)(2-a) and in Article 21da(2) shall be conferred on the Commission for a period of 5 years from … [date of entry into force of this Regulation]. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the 5-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

Removed3. The delegation of power referred to in Article 18(2)(2-a) and in Article 21da(2) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

Removed4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

Removed5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

Removed6. A delegated act adopted pursuant to Article 18(2)(2-a) and to Article 21da(2) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of [two months] of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by [two months] at the initiative of the European Parliament or of the Council.

Removed1. The Defence Industrial Readiness Board is hereby established.

Removed2. The general task of the Board is to carry out the measures pursuant to Chapter IV of this Regulation [Security of Supply].

Removed4. The Commission shall maintain a regular flow of information to the Defence Industrial Readiness Board on any planned measures or measures that have been taken related to the activation of the supply-crisis or security-crisis state. The Commission shall provide the necessary information through a secured IT system.

Removed5. For the purposes of the supply-crisis state as referred to in Article 44, the Defence Industrial Readiness Board shall carry out the following tasks:

Removed(a) analysing crisis-relevant information gathered by Member States or the Commission;

Removed(b) assessing whether the criteria for activation or deactivation of the supply-crisis state have been fulfilled;

Removed(c) providing guidance on the implementation of the measures chosen to respond to supply crisis at Union level;

Removed(d) performing a review of national crisis measures;

Removed(e) facilitating exchanges and sharing of information, including with other crisis-relevant bodies at Union level, as well as, as appropriate, third countries, with particular attention paid to developing countries, and international organisations.

Removed6. For the purposes of the security-crisis state as referred to in Article 48, the Defence Industrial Readiness Board shall:

Removed(a) facilitate coordinated action by the Commission and the Member States;

Removed(b) adopt opinions and guidance, including specific response measures, for the Member States for ensuring the timely availability and supply of crisis-relevant products;

Removed(c) assist and provide guidance on the activation of measures as referred to in Articles 49 to 54;

Removed(d) provide a forum for the coordination of actions of the Council, the Commission, and other relevant Union bodies.

Removed7. The Defence Industrial Readiness Board shall be composed of the representatives of the Commission, the High-Representative and Head of the European Defence Agency, the Chair of the European Union Military Committee, Member States and associated countries, as well as representatives from the European Parliament as observers. Each Member State or associated country shall nominate one representative and one alternate representative. The Board shall be co-chaired by the Commission and the Member State holding the rotating presidency of the Council for the purposes of the tasks laid down in this Regulation. The secretariat of the Defence Industrial Readiness Board shall be ensured by the Commission.

Removed8. The Defence Industrial Readiness Board shall meet whenever the situation requires, upon request from the Commission or a Member State or an associated country. It shall adopt its rules of procedure on the basis of a proposal submitted by the Commission. These rules of procedure shall foresee dispute settlement procedures and prevent the blocking of activities and regular work of the Defence Industrial Readiness Board’s by individual Member States.

Removed9. The Defence Industrial Readiness Board may issue opinions, upon the request of the Commission or on its own initiative. The Defence Industrial Readiness Board shall endeavour to find solutions which command the widest possible support.

Removed10. The Defence Industrial Readiness Board shall invite, at least once a year, representatives from National Defence Industrial Associations and selected industrial representatives, taking into account the necessity to ensure a balanced geographical representation (structured dialogue with defence industry). Where the supply crisis state referred to in Article 44 or the security crisis state referred to in Article 48 has been activated, the Defence Industrial Readiness Board shall invite high-level industrial representatives to meet in special configuration in order to discuss issues linked to crisis-relevant products.

Removed11. The Defence Industrial Readiness Board shall invite the representatives of other crisis-relevant bodies at Union level as observers to the relevant meetings of the Board.

Removed12. The Defence Industrial Readiness Board shall invite, in line with its rules of procedure and with due respect to the security and defence interests of the Union and its Member States, a representative from Ukraine to attend meetings as an observer, in particular with a view to actions reinforcing the Ukrainian DTIB.

Removed13. The Commission shall ensure transparency and provide members of the Board with equal access to information, in order to ensure that the decision-making process reflects the situation and the needs of all Member States.

Removed14. The Commission may, on its own initiative or on the proposal of the Defence Industrial Readiness Board, set up working groups on an ad hoc basis to support the Defence Industrial Readiness Board in its work for the purpose of examining specific questions on the basis of the tasks referred to in paragraph 1. Member States shall nominate experts for the working groups.

Removed15. The Commission shall set up a working group on legal, regulatory and administrative hurdles. The objectives of this working group are:

Removed(a) to identify existing or potential legal, regulatory and administrative obstacles at international, EU and national levels to the achievement of the objectives listed in Article 4;

Removed(b) to identify potential solutions and/or mitigation measures to identified obstacles.

Removed1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

Removed2. The EDA shall be invited to provide its views and expertise to the committee as an observer. The EEAS and the European Parliament shall also be invited to assist in the work of the committee.

Removed2a. Where relevant, Ukraine shall be invited to send a representative to the committee.

Removed3. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Removed4. Where the committee delivers no opinion, the Commission shall not adopt the draft implementing act and Article 5(4), third subparagraph, of Regulation (EU) No 182/2011 shall apply.

RemovedParliamentary scrutiny

Removed1. The Commission shall maintain a high level of information and involvement of the European Parliament on the implementation of the provisions laid down in this Regulation, in particular with a view to protect adherence to European ethical standards and due respect of fundamental rights.

Removed2. In the context of the provisions laid down in Chapter IV, the Commission shall ensure an adequate level of information and involvement of the European Parliament.

Removed3. In the context of the provisions laid down in Chapters II-IIc, the Commission shall consult the European Parliament on the Work Programmes and shall ensure annual reporting of the activities implemented in this framework.

Removed1. The Commission shall conclude a framework agreement with Ukraine for the implementation of the actions set out in this Regulation which concern Ukraine or legal entities established in Ukraine receiving Union funds.

Removed2. The framework agreement concluded with Ukraine, taken as a whole, and contracts and agreements signed with legal entities established in Ukraine receiving Union funds, shall ensure that the obligations set out in Article 129 of the Financial Regulation can be fulfilled.

Removed3. The framework agreement shall lay down the obligations of the Ukrainian authorities and bodies entrusted of budget implementation tasks to take all the necessary measures including legislative, regulatory and administrative measures to respect the principles of sound financial management, transparency and non-discrimination, to ensure the visibility of Union action when managing the Union funds, to fulfil the appropriate control and audit obligations and assume the resulting responsibilities, and to protect the financial interests of the Union, by, in particular, detailed enacting provisions concerning:

Removed(a) the activities related to control, supervision, monitoring, evaluation, reporting and audit of Union funding under the Programme, as well as investigations, anti-fraud measures and cooperation;

Removed(b) rules on taxes, duties and charges in accordance with Article 27(9) and (10) of Regulation (EU) 2021/947;

Removed(c) the right of the Commission to monitor activities under this Regulation carried out by the legal entities established in Ukraine, along the whole project cycle, including for cooperation for common procurement action, to take part in these as observer, as appropriate, and to make recommendations for the improvement of such activities and commitment by the Ukrainian authorities to make their best efforts to implement such recommendations of the Commission and to report on this implementation;