Changes from plenary report to adopted text

Recital 39: (39) Furthermore, in order to ensure the proportionality of the implementing acts and due respect for the role of economic operators in crisis management, the Commission should only resort to the activation of the internal market emergency mode measures where economic operators are not able to provide a solution on a voluntary basis within a reasonable time. The reasons for such activation should be indicated in each act, and should take all particular aspects of a crisis into account.

Recital 40: (40) Information requests to economic operators should be used by the Commission as a last resort only where the information which is necessary for responding adequately to the internal market emergency, such as information necessary for procurement by the Commission on behalf of the Member States or estimating the production capacities of manufacturers of crisis-relevant goods whose supply chains have been disrupted, cannot be obtained from publicly available sources or as a result of information provided voluntarily any other way, in cooperation with the Board and the Member States.

Recital 41: (41) Where there are substantial risks to the functioning of the internal market or where there are severe shortages or an exceptionally high demand for goods of critical importance, measures at Union level aiming to ensure the availability of crisis-relevant goods, such as priority-rated orders, may prove to be indispensable in order to return to the normal functioning of the internal market.

Recital 41 a (new): (41a) Where there is a severe shortage of crisis-relevant goods and services on the internal market during an internal market emergency, and it is clear that the economic operators that operate on the internal market do not produce such goods, but would in principle be able to repurpose their production lines or would have sufficient capacity to provide the necessary goods or services, the Commission should be able to recommend to the Member States, as a last resort, to take measures to facilitate or request the ramping up or repurposing of the production capacity of manufacturers or the capacity of service providers to provide crisis-relevant services. In doing so, the Commission should inform the Member States as to the severity of the shortage and the type of the crisis-relevant goods and services that are necessary and should provide support and advice in relation to the flexibilities in the Union acquis for such purposes.

Recital 41 b (new): (41b) The measures ensuring regulatory flexibility would allow the Commission to recommend that Member States accelerate the procedures for granting permits necessary for the enhancement of the capacity to produce crisis-relevant goods or provide crisis-relevant services.

Recital 41 c (new): (41c) Additionally, to ensure that crisis-relevant goods are available during the internal market emergency, the Commission may invite the economic operators that operate crisis-relevant supply chains to prioritise orders for crisis-relevant goods or orders for inputs necessary for the production of crisis-relevant goods. In the event that an economic operator refuses to accept the invitation to prioritise such orders, despite objective evidence that the availability of crisis-relevant goods is indispensable, the Commission may invite the economic operators concerned to accept and prioritise certain orders, the fulfilment of which will then take precedence over any other private or public law obligations. In the event of failure to accept, the operator in question should give legitimate reasons for declining the request.

Recital 41 d (new): (41d) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards the activation of specific emergency response measures, namely priority-rated orders, during an internal market emergency, to allow for a rapid and coordinated response. The priority-rated order should be placed at a fair and reasonable price, including, where relevant, appropriate compensation for all additional costs incurred by the economic operator, including costs arising from, for example, contracts outside of the Union or changing production lines. Those powers should be exercised in accordance with Regulation (EU) No 182/2011.

Recital 41 e (new): (41e) Furthermore, where severe shortages of crisis-relevant goods and services affect a Member State, the Member State concerned may inform the Commission thereof and indicate the quantities needed. The Commission should transmit the information to all competent authorities and streamline the coordination of Member States’ responses. To ensure availability of crisis-relevant goods during an internal market emergency, the Commission may also recommend that Member States distribute strategic reserves, having due regard to the principles of solidarity, necessity and proportionality.

Recital 41 f (new): (41f) In order to leverage the purchasing power and negotiating position of the Commission during the internal market vigilance and emergency modes, Member States should be able to request that the Commission procures on their behalf. It is also essential to ensure that Member States coordinate their actions with the support of the Commission and the Board prior to launching procedures for the procurement of crisis-relevant goods and services. Transparency is a core principle of effective public procurement that improves competition, increases efficiency and creates a level playing field. The European Parliament should be informed about procedures concerning joint procurements under this Regulation and, upon request, be granted access to the contracts concluded as a result of those procedures, subject to the adequate protection of commercially sensitive information, including business secrets.

Recital 41 g (new): (41g) It is necessary to lay down rules on digital tools in order to ensure preparedness when responding to possible future emergencies in a timely and efficient manner, as well as to guarantee the continued functioning of the internal market, the free circulation of goods, services and persons in times of crisis and the availability of crisis relevant goods and services to citizens, businesses and public authorities. When establishing such tools, the Commission should seek to ensure interoperability with already existing digital tools, such as the Internal Market Information System (IMI) in order to avoid duplication of requirements and any additional administrative burden. This Regulation should also set out rules for the adequate coordination, cooperation and exchange of information, and establish digital tools to guarantee the functioning of fast lanes for critical goods and services, aiming to accelerate authorisation, registration or declaration procedures. Furthermore, in order to enhance involvement of all economic actors, in particular businesses and civil society, the Commission should set up a stakeholder platform to facilitate and encourage voluntary response to internal market emergencies.

Recital 41 h (new): (41h) This Regulation respects fundamental rights and observes the principles recognised in particular by the Charter of Fundamental Rights of the European Union (the ‘Charter’). In particular, it respects the right to privacy of the economic operators enshrined in Article 7 of the Charter, the right to data protection set out in Article 8 of the Charter, the freedom to conduct business and the freedom of contract, which are protected by Article 16 of the Charter, the right to property, protected by Article 17 of the Charter, the right to collective bargaining and action, protected by Article 28 of the Charter and the right to an effective judicial remedy and to a fair trial as provided for in Article 47 of the Charter.

Recital 41 i: (41i) Since the objective of this Regulation cannot be sufficiently achieved by the Member States and can rather, by reason of the scale or effects of the action, be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

Recital 41 j (new): (41j) The Commission should carry out an evaluation of the effectiveness of this Regulation and submit a report to the European Parliament and the Council, including an evaluation of the work of the Board, stress tests, training and crisis protocols, the criteria for the activation of the emergency mode as well as the use of digital tools. Furthermore, reports should be submitted after the deactivation of the emergency modes. Those reports should include an evaluation of the functioning of the emergency response system and of the impact of the emergency measures on fundamental rights, such as the freedom to conduct business, the freedom to seek employment and to work, and the right to collective bargaining and action, including the right to strike. This Regulation should not be interpreted as affecting the right of collective bargaining and the right to take collective action in accordance with the Charter of Fundamental Rights of the European Union (‘the Charter’), including the right of workers and employees to take collective action to defend their interests, including strike action. Furthermore, this Regulation should not affect the autonomy of the social partners as recognised by the TFEU.

Recital 41 k (new): (41k) Any actions under this Regulation should be consistent with the Union’s obligations under the relevant international law. The Union remains fully committed to international solidarity and strongly supports the principle that any measures deemed necessary taken under this Regulation, including those necessary to prevent or relieve critical shortages, are implemented in a manner that is targeted, transparent, proportionate, temporary and consistent with WTO obligations.

Recital 41 l (new): (41l) The Union framework should include interregional elements to establish coherent, multi-sectoral, cross-border internal market vigilance and emergency response measures, in particular considering the resources, capacities and vulnerabilities across neighbouring regions, specifically border regions.

Recital 41 m (new): (41m) In order to put in place a framework of crisis protocols, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to supplement this Regulation by further specifying the modalities of cooperation of the Member States and Union authorities during the internal market vigilance and emergency modes, as well as the modalities of the secure exchange of information and of the risk and crisis communication. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Recital 41 n (new): (41n) Council Regulation (EC) No 2679/98 provides for a mechanism for bilateral discussions and notification of obstacles to the functioning of the internal market. In order to avoid the duplication of notification requirements in crisis situations, that Regulation should therefore be amended accordingly. Regulation (EC) No 2679/98 should not in any way affect the exercise of fundamental rights as recognised at Union level, including the right or freedom to strike or to take other action covered by the specific industrial relations systems in Member States, in accordance with national law. It should also be without prejudice to the right to negotiate, to conclude and enforce collective agreements, or to take collective action in accordance with national law.

Article 1 – paragraph 1: 1. The aim of this Regulation is to contribute to the proper functioning of the internal market by setting out a framework of harmonised rules to strengthen its resilience, to effectively anticipate and prevent crises, to ensure an effective response to crises, and to facilitate the free movement of goods, services and persons.

Article 1 – paragraph 2: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Article 1 – paragraph 3: deleted

Article 1 – paragraph 4: deleted

Article 2 – title: Scope

Article 2 – paragraph 1: 1. The measures set out in this Regulation apply in relation to significant impacts of a crisis on the functioning of the internal market, without prejudice to fundamental rights, including the freedom to conduct business, as laid down in the Charter of Fundamental Rights of the European Union.

Article 2 – paragraph 2 – point a: (a) medicinal products as defined in Article 1, point 2 of Directive 2001/83/EC of the European Parliament and of the Council;

Article 2 – paragraph 2 – point c: (c) other medical countermeasures as defined in Article 3, point (10), of Regulation (EU) 2022/2371 of the European Parliament and of the Council 45; / (deleted) / 45 Regulation (EU) 2022/2371 of the European Parliament and of the Council of 23 November 2022 on serious cross-border threats to health and repealing Decision No 1082/2013/EU (OJ L 314, 6.12.2022, p. 26).

Article 2 – paragraph 2 – point f: (f) financial services, such as banking, credit, insurance and re-insurance, occupational or personal pensions, securities, investment funds, payment and investment advice, including the services listed in Annex I to Directive 2013/36/EU, as well as settlement and clearing activities and advisory, intermediation and other auxiliary financial services.

Article 2 – paragraph 3: 3. By way of derogation from paragraph 2, points (a), (b) and (c), Articles 16 to 20 and Articles 41 to 41c shall apply to the products referred to in those points.

Article 2 – paragraph 3 a (new): 3a. This Regulation is without prejudice to the Integrated Political Crisis Response arrangements set out in Council Implementing Decision (EU) 2018/1993.

Article 2 – paragraph 5: 5. This Regulation is without prejudice to Union competition rules, including antitrust, merger and State aid rules.

Article 2 – paragraph 6 – introductory part: 6. This Regulation is without prejudice to Union law on the protection of personal data, in particular Regulations (EU) 2016/679 and (EU) 2018/1725 and Directive 2002/58/EC.

Article 2 – paragraph 6 – point a: deleted

Article 2 – paragraph 6 – point b: deleted / (deleted)

Article 2 – paragraph 6 a (new): 6a. This Regulation shall not in any way affect the exercise of fundamental rights as recognised by the Member States and at Union level, including the right to strike or the right to take other action covered by the specific industrial relations systems in Member States, in accordance with national law and practice. It also should not affect the right to negotiate, to conclude and enforce collective agreements, or to take collective action in accordance with national law and practice.

Article 2 – paragraph 7: deleted

Article 2 – paragraph 8: deleted

Article 3 – paragraph 1 – point 1: (1) ‘crisis’ means an exceptional, natural or man-made event of extraordinary nature and scale that takes place inside or outside of the Union, which has a detrimental impact on the free movement of goods, services or persons in the internal market;

Article 3 – paragraph 1 – point 2: (2) ‘internal market vigilance mode’ means a framework for addressing the threat of a crisis leading to a significant disruption of the supply of goods and services of critical importance and which has the potential to escalate into an internal market emergency within the next six months;

Article 3 – paragraph 1 – point 3: (3) ‘internal market emergency mode’ means a framework for addressing a significant wide-ranging impact of a crisis on the internal market that severely disrupts the free movement of goods, services or persons, or the functioning of the supply chains that are indispensable in the maintenance of vital societal or economic activities in the internal market;

Article 3 – paragraph 1 – point 4: (4) ‘critically important areas’ means areas that are of critical importance to the Union and its Member States and that are of systemic and vital importance for public security, public safety, public order, public health or the environment, and the disruption, failure, loss or destruction of which would have a significant impact on the functioning of the internal market, in particular on the free movement of goods, services or persons;

Article 3 – paragraph 1 – point 5: (5) ‘goods, services and workers of critical importance’ means goods, services and categories of workers that are indispensable for ensuring the functioning of the internal market in critically important areas and which cannot be substituted or, where relevant, diversified;

Article 3 – paragraph 1 – point 6: (6) ‘crisis-relevant goods and services’ means goods and services that are indispensable for responding to the crisis or for addressing the impacts of the crisis on the internal market during an internal market emergency;

Article 3 – paragraph 1 – point 7: (7) ‘strategic reserves’ means a stock of goods of critical importance under the control of a Member State for which building a reserve may be necessary to prepare for an internal market emergency.

Article 4 – title: Internal Market Emergency and Resilience Board

Article 4 – paragraph 1: 1. An Internal Market Emergency and Resilience Board (the Board) is established.

Article 4 – paragraph 2: 2. The Board shall be composed of one representative from each Member State and one expert appointed by the European Parliament. Each Member State shall nominate a representative and an alternate representative.

Article 4 – paragraph 3: 3. The Commission shall chair the Board and provide its secretariat. Where appropriate, the Commission may establish standing or temporary sub-groups of the Board for the purpose of examining specific questions. / (deleted)

Article 4 – paragraph 3 a (new): 3a. The Commission shall invite representatives of other crisis-relevant bodies at Union level as observers to the relevant meetings of the Board, as well as representatives of third countries or international organisations, in accordance with bilateral or international agreements. Where relevant, the Commission shall also invite organisations representing interested parties, in particular representatives of economic operators, stakeholder organisations and social partners, to attend the meetings of the Board as observers. The Commission may also invite experts with a specific competence in a crisis-relevant subject to participate in the work of the Board on an ad hoc basis.

Article 4 – paragraph 3 b (new): 3b. The Board may adopt opinions, recommendations or reports, which shall be made publicly available, without prejudice to personal data or trade secrets. The Commission shall take utmost account of opinions, recommendations or reports of the Board in a transparent manner.

Article 4 – paragraph 4 – introductory part: 4. In order to strengthen the resilience of the internal market, for the purpose of contingency planning under Articles 6 to 8, the Board shall assist and advise the Commission as regards the following tasks:

Article 4 – paragraph 4 – point a: (a) proposing arrangements for administrative cooperation between the Commission and the Member States at the time of the internal market vigilance and emergency modes that would be contained in the crisis protocols referred to in Article 6;

Article 4 – paragraph 4 – point b: (b) assessing incidents that the Member States or other relevant stakeholders have alerted the Commission to in accordance with in Article 8 and their impact on the free movement of goods, services and persons, including workers;

Article 4 – paragraph 4 – point b a (new): (ba) recommending Member States to build a reserve of critical goods in order to prepare for an internal market emergency, taking into account the probability and impact of shortages;

Article 4 – paragraph 4 – point b b (new): (bb) gathering foresight on the possibility of a crisis occurring, conducting data analysis and providing market intelligence;

Article 4 – paragraph 4 – point b c (new): (bc) consulting the representatives of economic operators, including SMEs, and representative organisations, as well as, where relevant, social partners, in order to collect market intelligence;

Article 4 – paragraph 4 – point b d (new): (bd) analysing aggregated data received by other crisis-relevant bodies at Union and international level;

Article 4 – paragraph 4 – point b e (new): (be) maintaining a repository of national and Union crisis measures that have been used in previous crises and that have had an impact on the internal market and its supply chains;

Article 4 – paragraph 4 – point b f (new): (bf) taking measures to strengthen the internal market’s resilience in accordance with this Regulation, such as organising trainings and simulations, and identifying relevant economic operators and supply chains as part of stress tests.

Article 4 – paragraph 5 – introductory part: 5. For the purpose of the internal market vigilance mode as referred to in Article 9, the Board shall assist the Commission in the following tasks:

Article 4 – paragraph 5 – point a: (a) establishing whether the criteria are present for the activation or deactivation of the vigilance mode and in particular the threat referred to in Article 3(2), and the scope of such threat;

Article 4 – paragraph 5 – point b: deleted