Changes from report parliamentary committee draft to plenary report

AddedRecital 33: (33) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards the possibility to adopt supportive measures for facilitating the free movement of persons. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.

AddedRecital 34: (34) The activation of the internal market vigilance or emergency mode should trigger an obligation for the Member States to notify the Commission of the adoption of measures regarding crisis-relevant restrictions on the free movement of goods, the freedom to provide services and the free movement of persons, including workers, accompanied by a statement justifying the introduction of such measures. The statement on the proportionality of such measures should take into account the impact of the measures, their scope and their expected duration. / (deleted) / (deleted)

AddedRecital 35: (35) When examining the compatibility of any notified draft or adopted measures with the principle of proportionality, the Commission should pay due regard to the evolving crisis situation and often limited information that is at the disposal of the Member States when they seek to reduce the emerging risks in the context of the crisis. Where justified and necessary in the circumstances, the Commission may consider, based on any available information, including specialised or scientific information, the merits of Member State arguments. It is the task of the Commission to ensure that such measures comply with Union law and do not create unjustified obstacles to the functioning of the internal market. The Commission should react to the notifications of Member States as quickly as possible, taking into account the circumstances of the particular crisis, and at the latest within the time-limits set out in this Regulation.

AddedRecital 36: (36) If the Commission finds that the notified measures are not in accordance with Union law, it may issue a decision requiring the Member State concerned to modify or to refrain from adopting the notified draft measure. The adoption of decisions is without prejudice to the prerogatives of the Commission as guardian of the Treaties, having the responsibility of ensuring respect for the free movement of goods, services and persons. To guarantee the effective implementation of this Regulation, the Commission should provide an effective response to breaches of Union law through infringement proceedings.

AddedRecital 37: (37) To ensure that citizens, consumers, economic operators and workers and their representatives are provided with assistance in the event of an emergency, it is important to establish national single points of contact and a Union level single point of contact. Member States should ensure that it is possible for anyone affected by national crisis response measures to receive relevant information from the competent authorities, provided in clear, understandable and intelligible language, and in easily accessible manner for people with disabilities.

AddedRecital 38: (38) In order to ensure that the specific internal market emergency measures provided for in this Regulation are used only where this is indispensable for responding to a particular internal market emergency, such measures should require individual activation by means of Commission implementing acts, which indicate the reasons for such activation and the crisis-relevant goods or services that such measures apply to.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedRecital 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.

AddedArticle 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)

Change 4

RemovedThese paragraphs are not suitable to describing the subject matter or clarifying the objective of this regulation.

Article 1 – paragraph 3: deleted

Change 5

RemovedThese paragraphs are not suitable to describing the subject matter or clarifying the objective of this regulation.

Article 1 – paragraph 4: deleted

Change 6

RemovedThese paragraphs are not suitable to describing the subject matter or clarifying the objective of this regulation.

Article 2 – title: Scope

Change 7

ChangedArticle 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 marketmarket, andwithout itsprejudice supplyto chains.fundamental rights, including the freedom to conduct business, as laid down in the Charter of Fundamental Rights of the European Union.

Change 8

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

Change 9

ChangedArticle 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 Council44;Council 45; / 44(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.). / (deleted)26).

Change 10

AddedArticle 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.

AddedArticle 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.

AddedArticle 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.

Change 11

ChangedArticle 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; / (deleted) / (deleted) / (deleted)2002/58/EC.

Change 12

AddedArticle 2 – paragraph 6 – point a: deleted

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

AddedArticle 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

Change 13

RemovedMoved to Recital 37 as this only restates the hierarchy of norms.

Article 2 – paragraph 8: deleted

Change 14

RemovedMember States should be able to pursue legitimate public interests, including that of national security, while respecting the Treaties. Therefore, this was moved to Art. 16.

AddedArticle 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;

Change 15

ChangedArticle 3 – paragraph 1 – point 1:2: (1)(2) ‘crisis’‘internal meansmarket anvigilance exceptionalmode’ ,means naturala orframework man-madefor eventaddressing the threat of extraordinarya naturecrisis andleading scaleto thata takessignificant placedisruption insideof orthe outsidesupply of thegoods Union,and services of critical importance and which has athe detrimentalpotential impactto onescalate theinto freean movementinternal ofmarket goods,emergency serviceswithin orthe persons;next six months;

Change 16

RemovedThe crisis definition should be clearly linked to the objective of the regulation and provide certainty on when crisis measures can be activated.

AddedArticle 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;

Change 17

ChangedArticle 3 – paragraph 1 – point 2: (2)4: ‘internal(4) market‘critically vigilanceimportant mode’areas’ means a framework for addressingareas athat threatare of significantcritical disruptionimportance ofto the supplyUnion ofand goodsits Member States and servicesthat are of criticalsystemic and vital importance for public security, public safety, public order, public health or the environment, and the disruption, failure, loss or destruction of which haswould thehave potentiala tosignificant escalateimpact intoon anthe functioning of the internal marketmarket, emergencyin withinparticular on the nextfree sixmovement months;of goods, services or persons;

Change 18

ChangedArticle 3 – paragraph 1 – point 3: (3) ‘internal market5: emergency’(5) means‘goods, aservices wide-rangingand impactworkers of a crisis on the internal marketcritical thatimportance’ severelymeans disruptsgoods, theservices freeand movementcategories of goods,workers servicesthat andare persons,indispensable orfor ensuring the functioning of the supply chains that areinternal indispensablemarket in thecritically maintenanceimportant ofareas vitaland societalwhich orcannot economicbe activitiessubstituted inor, thewhere internalrelevant, market;diversified;

Change 19

ChangedArticle 3 – paragraph 1 – point 4: (4) ‘critically important areas’ means6: areas(6) with‘crisis-relevant criticalgoods importanceand toservices’ themeans Uniongoods and its Member Statesservices whichthat are of systemic and vital importanceindispensable for public security, publicresponding safety,to publicthe ordercrisis or public health,for andaddressing the disruption, failure, loss or destructionimpacts of which would have a significantthe impactcrisis on the functioninginternal ofmarket theduring an internal market;market emergency;

Change 20

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

RemovedArticle 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.

Change 21

ChangedArticle 4 – title: AdvisoryInternal boardMarket Emergency and Resilience Board

Change 22

ChangedArticle 4 – paragraph 1: 1. An advisoryInternal boardMarket Emergency and Resilience Board (the Board) is established.

Change 23

ChangedArticle 4 – paragraph 2: 2. The advisory boardBoard shall be composed of one representative from each Member State. Each Member State shall nominate a representative and an alternate representative. European Free Trade Association (EFTA) States may participate as observers in accordance withone theexpert Agreementappointed onby the European Economic Area, as well as in accordanceParliament. withEach theMember bilateralState agreementsshall betweennominate thea Unionrepresentative and thean Swissalternate Confederation.representative.

Change 24

RemovedThe internal market is not only made up of EU member states, and the Covid pandemic has shown that a fragmented response across the continent can be detrimental to all.