Changes from report parliamentary committee draft to plenary report

RemovedArticle 7 – paragraph 1: The Commission shall develop and regularly organise trainings on crisis coordination, cooperation and information exchange for the staff of the designated central liaison offices. It shall organise simulations involving the staff of the central liaison offices as well as for other relevant actors or bodies involved in the prevention of, preparedness for and response to internal market emergencies.

AddedArticle 7 – paragraph 1 a (new): 1a. In particular, the Commission shall develop and manage a training programme derived from lessons learnt from previous crises, including aspects of the entire emergency management cycle, in order to provide a rapid response to crises. That programme shall include: / (a) monitoring, analysing and evaluating all the relevant actions to facilitate the free movement of goods, services and persons; / (b) promoting the implementation of best practices at national and Union level, and, where appropriate, best practices, developed by third countries and international organisations; / (c) developing guidance on knowledge dissemination and the implementation of different tasks at national and, where relevant, regional and local level; / (d) encouraging the introduction and use of relevant new technologies and digital tools for the purpose of responding to internal market emergencies.

RemovedTrainings on specific scenarios should involve all relevant actors that may be relevant to that specific crisis response to ensure that the framework is fit for crisis.

AddedArticle 7 – paragraph 1 b (new): 1b. At the request of a Member State facing a disruption, the Commission may deploy an expert team on site to provide advice on preparedness and response measures, taking particular account of the needs and interests of that Member State.

RemovedArticle 7 – paragraph 1 a (new): In particular, the Commission shall develop and manage a training programme derived from lessons learnt from previous crises, including aspects of the entire emergency management cycle, in order to provide a rapid response to crises. The programme shall include: / (a) monitoring, analysing and evaluating all the relevant actions to facilitate the free movement of goods, services and persons; / (b) promoting the implementation of best practices at national and Union level, and, where appropriate, best practices, developed by third countries and international organisations; / (c) developing guidance on knowledge dissemination and the implementation of different tasks at national and, where relevant, regional and local level; / (d) encouraging the introduction and use of relevant new technologies and digital tools for the purpose of responding to internal market emergencies.

AddedArticle 7 a (new): Article 7a / Stress tests / 1. In order to ensure the free movement and the availability of goods and services of critical importance and to anticipate, and prepare for disruptions to the internal market, the Commission, taking into consideration the opinion of the Board, shall conduct and coordinate stress tests, including simulations and peer reviews, in particular for critical sectors identified by the Commission. / In particular, the Commission shall invite staff from the central liaison offices of all Member States to participate in simulations and shall: / (a) develop scenarios and parameters that capture the specific risks associated with internal market emergencies and that aim to identify vulnerabilities in critically important areas, as well as to assess the potential impact on the free movement of goods, services and persons; / (b) identify relevant economic operators and representative organisations, as well as other relevant actors or bodies involved in the prevention of, preparedness for and response to emergencies and invite them to participate on a voluntary basis; / (c) facilitate peer reviews and encourage the development of strategies for emergency preparedness; / (d) identify, in cooperation with all actors involved, risk mitigation measures after the completion of the stress tests. / 2. The Commission shall conduct stress tests regularly and at least once every two years, covering comprehensive Union-wide stress tests or specific geographical areas or bor…

RemovedThe trainings are essential to prepare the governance framework, but also all relevant actors who until now might not have been involved in crisis response for an emergency affecting the internal market.

AddedArticle 7 b (new): Article 7b / Mapping of critical sectors / 1. The Commission taking into due consideration the opinion of the Board and the input of relevant Union level bodies, and after consulting the Member States, is empowered to adopt a delegated act to supplement this Regulation by laying down a methodology for a mapping exercise for determining critical sectors. / 2. For the purpose of the methodology referred to in paragraph 1, the Commission shall take into account the following: / (a) trade flows; / (b) demand and supply; / (c) concentration of supply; / (d) Union and global production and production capacities at different stages of the value chain. / (e) interdependencies among economic operators, both with operators operating within and outside the internal market. / 3. The Commission using the methodology referred to in paragraph 1 and taking into consideration the opinion of the board, shall regularly conduct its mapping exercise to identify critical sectors. Those mapping exercises shall be based solely on publicly or commercially available data and relevant non-confidential information from undertakings. / 4. The Commission shall publish the results of this mapping exercise.

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ChangedArticle 78 – paragraph 11: b1. (new):The Atcentral theliaison requestoffice of a Member State facingshall aimmediately disruption,notify the Commission may deploy an expert team on site to provide advice on preparedness and response measures.the Whencentral carryingliaison outoffices thisof task,other theMember CommissionStates shallof takeany particularincident accountthat ofis thelikely needsto andlead intereststo ofan thatinternal Membermarket State.emergency.

Change 45

RemovedWhile not all crises may constitute an internal market emergency, the lessons learnt from the crisis framework may also help member states facing disruptions.

AddedArticle 8 – paragraph 2: 2. The central liaison offices and any relevant national competent authorities shall, in accordance with Union law and national legislation that complies with Union law, adopt all measures necessary to treat the information referred to in paragraph 1 in a way that respects its confidentiality, protects the security and public order of the Union or its Member States, and protects the security and commercial interests of the economic operators concerned.

RemovedArticle 7 a (new): Article 7a / Stress tests / In order to ensure the free movement and the availability of goods and services of critical importance, as well as the resilience of supply chains, the Commission, taking into consideration the opinion of the advisory board, shall conduct stress tests, including simulations and peer reviews. / In particular, the Commission shall: / (a) develop scenarios and parameters that capture the specific risks associated with internal market emergencies that aim to identify vulnerabilities in critically important areas, as well as to assess the impact on the free movement of goods, services and persons; / (b) invite staff from the central liaison offices of all Member States to participate in simulations of potential internal market emergencies’; / (c) identify relevant economic operators and representative organisations, as well as other relevant actors or bodies involved in the prevention of, preparedness for and response to emergencies and invite them to participate on a voluntary basis; / (d) ensure the secure exchange of information during the stress tests; / (e) facilitate peer reviews and encourage the development of strategies for emergency preparedness; / (g) identify, in cooperation with all actors involved, risk mitigation measures after the completion of the stress tests. / 2. The Commission shall conduct stress tests at least once every two years, covering comprehensive Union-wide stress tests or specific geographical areas or border regions. / 3…

AddedArticle 8 – paragraph 3 – introductory part: 3. In order to determine whether the incidents referred to in paragraph 1 should be the object of an alert, the central liaison office of a Member State shall take the following into account:

RemovedStress tests can help in identifying sector- or region specific vulnerabilities. Stress tests that include economic operators should be based on the principle of voluntary cooperation with the goal of increasing awareness also within companies for the crisis framework and developing operator's capacity to respond to crisis and to overcoming it.

AddedArticle 8 – paragraph 3 – point a: (a) the number of economic operators affected across the Union;

RemovedArticle 8 – paragraph 1: 1. The central liaison office of a Member State shall notify the Commission and the central liaison offices of other Member States without undue delay of any incidents that significantly disrupt or have the potential to significantly disrupt the functioning of the internal market and its supply chains (significant incidents).

AddedArticle 8 – paragraph 3 – point b: (b) the duration or anticipated duration of the incidents;

RemovedArticle 8 – paragraph 3 – introductory part: 3. In order to determine whether the disruption or potential disruption of the functioning of the internal market and its supply chains of goods and services is significant and should be the object of an alert, the central liaison office of a Member State shall take the following into account:

AddedArticle 8 – paragraph 3 – point c: (c) the geographical area; the proportion of the internal market affected and its cross-border effects; the impact on particularly vulnerable or exposed geographical areas such as the outermost regions;

RemovedArticle 8 a (new): Article 8a / Strategic reserves / 1. Member States shall make best efforts to build up strategic reserves of goods of critical importance. The Commission shall provide support to Member States in order to assist them in coordinating and streamlining their efforts. / In particular, the Commission shall ensure coordination and information exchange, and shall promote solidarity between national competent authorities in relation to shortages of crisis-relevant goods or services or building strategic reserves for goods of critical importance. Capacities which are part of the rescEU reserve in accordance with Article 12 of Decision No 1313/2013/EU shall be excluded from the application of this Article. / 2. The exchange of information and best practices shall cover in particular: / (a) the probability and the potential impact of the shortages referred in paragraph 1; / (b) the level of existing stocks of the economic operators and strategic reserves across the Union, and any information regarding the ongoing activities of economic operators to increase their stocks; / (c) the costs for building and maintaining such strategic reserves; / (d) the options for alternative supply and potential for alternative supply; / (e) further information that could ensure the availability of such goods and services.

AddedArticle 8 – paragraph 3 – point d: (d) the effect of those incidents on non-diversifiable and non-substitutable inputs.

RemovedArticle 12.1 - 12.3 was moved here. Strategic reserves must become a more permanent consideration in increasing the Union’s resilience and be part of the contingency mode. But the pro-cyclical creation of reserves during the “Vigilance Mode” or “Emergency Mode” risks an exacerbation of the situation. The Commission should have a permanent role in ensuring coordination, information exchange and promoting solidarity between Member States in the administration of strategic reserves, but not be empowered to prescribe mandatory stockpiles.

AddedArticle 8 a (new): Article 8a / Strategic reserves / 1. Member States shall make best efforts to build up strategic reserves of goods of critical importance. The Commission shall provide support to Member States in order to assist them in coordinating and streamlining their efforts. In particular, the Commission shall ensure coordination and information exchange, and shall promote solidarity between national competent authorities in relation to shortages of crisis-relevant goods or services, or building strategic reserves for goods of critical importance. Capacities which are part of the rescEU reserve in accordance with Article 12 of Decision No 1313/2013/EU shall be excluded from the application of this Article. / 2. The exchange of information and best practices referred to in paragraph 1 may cover in particular: / (a) the probability and the potential impact of the shortages referred to in paragraph 1; / (b) the level of existing stocks of the economic operators and strategic reserves across the Union, and any information regarding the ongoing activities of economic operators to increase their stocks; / (c) the cost of building and maintaining such strategic reserves; / (d) the options for alternative supply and the potential for alternative supply; / (e) further information that could ensure the availability of such goods and services. / Such information and best practices shall be exchanged through a secure channel of communication.

RemovedArticle 9 – paragraph 1 – introductory part: 1. Where the Commission, taking into consideration the opinion provided by the advisory board, considers that the threat referred to in Article 3(2) is present, it shall activate the vigilance mode for a maximum duration of six months by means of an implementing act. Such an implementing act shall contain the following:

AddedPart III – title: Internal market vigilance mode

RemovedArticle 11 – paragraph 3: 3. Member States shall set up and maintain an inventory of the most relevant economic operators established on their respective national territory that operate along the supply chains of goods and services of critical importance that have been identified in the implementing act activating the vigilance mode. The contents of the inventory shall be confidential at all times.

AddedArticle 9 – paragraph 1 – introductory part: 1. Where the Commission, taking into due consideration the opinion provided by the Board, as well as the criteria set out in Article 8(3), considers that the conditions laid down in Article 3(2) are fulfilled, it shall activate the vigilance mode for a maximum duration of six months by means of an implementing act. Where the consideration of the Commission diverges from the opinion of the Board, the Commission shall provide a substantiated justification. Such an implementing act shall contain the following:

AddedArticle 9 – paragraph 1 – point a: (a) an assessment of the potential impact of the expected crisis, including the specific situation of border regions and outermost regions;

AddedArticle 9 – paragraph 1 – point b: (b) a list of the goods, services and categories of workers of critical importance concerned, and

AddedArticle 9 – paragraph 1 – point c: (c) the vigilance measures to be taken, including a justification regarding the necessity and proportionality of such measures.

AddedArticle 10 – paragraph 1: 1. The Commission, if it considers that the reasons for activating the vigilance mode pursuant to Article 9(1) remain valid, and taking into due consideration the opinion provided by the Board, may extend the vigilance mode for a maximum duration of six months by means of an implementing act. Where the Board has concrete and reliable evidence that the vigilance mode should be deactivated, it may adopt an opinion to that effect, and communicate it to the Commission.

AddedArticle 10 – paragraph 2: 2. Where the Commission, taking into due consideration the opinion provided by the Board, finds that the conditions laid down in Article 3(2) are no longer fulfilled with respect to some or all vigilance measures or for some or all of the goods, services and categories of workers, it shall deactivate the vigilance mode in full or in part by means of an implementing act.

AddedArticle 11 – paragraph 1: 1. When the vigilance mode has been activated in accordance with Article 9, national competent authorities shall monitor the supply chains of goods and services of critical importance and the free movement of categories of workers of critical importance that have been identified in the implementing act activating the vigilance mode.

AddedArticle 11 – paragraph 2: 2. The Commission shall provide for standardised and secure means for the collection and processing of information for the purpose of paragraph 1, using electronic means. Without prejudice to national legislation requiring collected information including business secrets to be kept confidential, confidentiality with regard to the commercially sensitive information and information affecting the security and public order of the Union or its Member States shall be ensured.

AddedArticle 11 – paragraph 3: 3. Member States shall, where possible, set up, update and maintain an inventory of the most relevant economic operators established on their respective national territory that operate along the supply chains of goods and services as well as categories of workers of critical importance that have been identified in the implementing act activating the vigilance mode. The contents of the inventory shall be confidential at all times.

AddedArticle 11 – paragraph 4: 4. On the basis of the inventory set up pursuant to paragraph 3, national competent authorities shall, where necessary, address requests for voluntary provision of information to the most relevant operators along the supply chains of goods and services of critical importance as identified in the implementing act adopted pursuant to Article 9 established in their respective national territory. Such requests shall in particular states which information about factors impacting the availability of the identified goods and services of critical importance is requested. Each economic operator that voluntarily provides information shall do so on an individual basis in line with the Union rules on competition governing the exchange of information. The national competent authorities shall transmit the relevant findings to the Commission and the Board without undue delay via the respective central liaison office.

AddedArticle 11 – paragraph 5: 5. National competent authorities shall have due regard to the administrative burden on economic operators and in particular SMEs, which may be associated with requests for information, and ensure that such administrative burden is kept to a minimum and that the confidentiality of the information is respected.

AddedArticle 11 – paragraph 6: 6. The Commission may ask the Board to discuss the findings and prospects of evolution based on the monitoring of supply chains of goods and services of critical importance.

AddedArticle 11 – paragraph 7: 7. On the basis of the information collected through the activities carried out in accordance with paragraph 1, the Commission shall present a report to the European Parliament and the Council of the aggregated findings.

AddedArticle 11 – paragraph 7 a (new): 7a. The Commission may require, by means of implementing acts, that the Member States provide the following information on the goods of critical importance listed in an implementing act adopted pursuant to Article 9(1): / (a) the levels of strategic reserves in their territory; / (b) any potential for further purchase.

AddedArticle 11 – paragraph 7 b (new): 7b. Before adopting the implementing act, the Commission shall: / (a) demonstrate it has no other access to such information and justify its need; and / (b) request the opinion of the Board. / Where the consideration of the Commission diverges from the opinion of the Board, the Commission shall also provide a substantiated justification.

AddedArticle 11 – paragraph 7 c (new): 7c. The implementing act shall specify the goods for which information is to be given.

AddedArticle 11 – paragraph 7 d (new): 7d. The request for information cannot exceed a period of six months and cannot be renewed.

Article 12: deleted

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RemovedMoved to Art. 8a new. Strategic reserves must become a more permanent consideration in increasing the Union’s resilience and be part of the contingency mode. But the pro-cyclical creation of reserves during the “Vigilance Mode” or “Emergency Mode” risks an exacerbation of the situation. The Commission should have a permanent role in ensuring coordination, information exchange and promoting solidarity between Member States in the administration of strategic reserves, but not be empowered to prescribe mandatory stockpiles.

AddedPart IV – title: Internal market emergency

RemovedArticle 13 – paragraph 1 – point a: (a) the crisis has caused activation of a relevant crisis response mechanism, such as the Union Civil Protection Mechanism or the mechanisms set up within the EU Health Security Framework, including Regulation (EU) 2022/2372;

AddedArticle 13 – paragraph 1 – introductory part: 1. When assessing the severity of a disruption for the purposes of ascertaining whether the impact of a crisis on the internal market qualifies as an internal market emergency, the Commission shall, based on concrete and reliable evidence, take into account at least the following indicators:

RemovedArticle 13 – paragraph 1 – point b: (b) the impact on the free movement of goods, services and persons, including an estimation of the number of economic operations or users relying on the disrupted sector or sectors of the internal market for the provision of the goods or services concerned;

AddedArticle 13 – paragraph 1 – point a: (a) the crisis has triggered the activation of a relevant Council crisis response mechanism, including the Integrated Political Crisis Response, the Union Civil Protection Mechanism or any of the mechanisms set up within the EU Health Security Framework, including the emergency framework under Regulation (EU) 2022/2372;

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ChangedArticle 13 – paragraph 1 – point c:b: (c)(b) an estimation of the criticalnumber importanceor market share and market demand of economic operations or users relying on the goodsdisrupted sector or servicessectors concernedof the internal market for otherthe sectors;provision of the goods or services concerned;

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RemovedArticle 13 – paragraph 1 – point e: (e) the economic operators affected by the disruption have not been able to provide a solution in a reasonable time to the particular aspects of the crisis on a voluntary basis;

AddedArticle 13 – paragraph 1 – point c: (c) the critical importance of the goods, services or workers concerned for other sectors;

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ChangedArticle 13 – paragraph 1 – point g: (g) the geographic area, including border regions, that is and could be affected by the disruption, including anyc cross-bordera impacts(new): on(ca) the functioning of supply chains that are indispensable in theestimated maintenanceshortage of societal orgoods economicand activitiesservices in the internal market;

Change 50

ChangedArticle 13 – paragraph 1 – point i:d: (i)(d) the absenceactual or shortagespotential impact of substitutethe goods,crisis inputsin orterms services;of degree and duration on economic and vital societal activities, the environment and public safety;

Change 51

AddedArticle 13 – paragraph 1 – point e: (e) the fact that the economic operators affected by the disruption have not been able to provide a solution in a reasonable time to the particular aspects of the crisis on a voluntary basis;

AddedArticle 13 – paragraph 1 – point g: (g) the geographic area, including border regions and outermost regions, that is and could be affected by the disruption, including any cross-border impacts on the functioning of supply chains that are indispensable in the maintenance of vital societal or economic activities in the internal market;

AddedArticle 13 – paragraph 1 – point i: (i) the absence or shortages of substitute for crisis-relevant goods, inputs or services;

Article 13 – paragraph 1 – point i a (new): (ia) the introduction of travel restrictions or border controls.

Article 14 – paragraph 1: 1. The internal market emergency mode may be activated without the internal market vigilance mode having previously been activated with regard to the same goods or services. Where the vigilance mode has previously been activated, the emergency mode may replace it partially or entirely.