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Changes between two versions

What changed between the draft committee report and the plenary report

From · draft committee report· 21 Nov 2023

JURI-PR-756270

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

To · plenary report· 27 Feb 2024

A-9-2024-0062

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

Changes to the text itself, in document order. Cover page, citations and punctuation-only edits are left out; they are under “Every difference”.

The changes · 38

Change 1

Removed:2. Suggests that the act be cited as 'the Sergey Lagodinsky-... Directive on European cross-border associations';

Change 2

Removed: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 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. 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 TFEU together with Articles 7, 8 and 12 of the Charter of Fundamental Rights of the European Union enshrine the freedom of association at all levels and protect non-profit organisations against discriminatory, unnecessary and unjustified restrictions regarding the financing of their activities. 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*. / * Judgement of the Court of Justice of 10 June 2020, C…

Added:Recital 2: (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.

Removed:Recital 15: (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.

Added:Recital 6: (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.

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Removed:Recital 16: (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 Council39 .

Added:Recital 6 a (new): (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.

Removed:Recital 17: (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. This however should not exclude such entities from becoming a non-founding member of an ECBA. It should also not preclude organisations whose values and aims are informed by a religious, philosophical or non-confessional belief, such as faith-based, charitable non-profit organisations, from establishing an ECBA under this Directive.

Added:Recital 7: (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.

Removed:Recital 19 – paragraph 1: 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 among members, 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. 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.

Added: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 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…

Removed:Recital 21: (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. This does not exclude the possibility for persons with no links to a Member State to establish an ECBA together with at least two persons who have links to at least two Member States.

Added:Recital 9: (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.

Removed: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. 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 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, have a non-profit purpose, and have legal personality. To ensure transparency and legal certainty, Member States should notify the Commission and the ECBA committee of the 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.

Added:Recital 9 a (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.

Added:Recital 10: (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.

Added:Recital 11: (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.

Added:Recital 11 a (new): (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.

Added:Recital 12: (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.

Added:Recital 13: (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.

Added:Recital 13 a (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. 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.

Added:Recital 15: (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.

Added:Recital 16: (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 .

Added:Recital 17: (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.

Added:Recital 18: (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.

Added:Recital 19 – paragraph 1: 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.

Added:Recital 20 a (new): (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.

Added:Recital 21: (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.

Added: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 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…

Change 3

Changed:Recital 24: (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, asin partthe context of the fight against terrorism financing,financing and money laundering, when required by Union law, or national law in compliance with Union law.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.

Change 4

Changed:Recital 26: (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 appropriateforappropriate ensuringand thelimited attainmentto ofwhat theis objectivestrictly pursuednecessary, and not going beyond what isthe necessaryimpact forof itthe tomeasure beon attained,the andECBA should be interpreted strictlyproportionate byto thatthe Memberobjective State.pursued.

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Change 5

Changed:Recital 27: (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 duly justified, to be appropriatefor ensuring the attainmentprescribed ofby thelaw, objectiveappropriate inand question,limited to bewhat interpretedis strictly bynecessary, theand Memberthe Stateimpact implementingof them,the andmeasure toon notthe goECBA beyondneeds whatto isbe necessaryproportionate to attainthe theirobjective objective.pursued. This is particularly relevant as many associations are active in the …public interest areas m…

Change 6

Changed:Recital 29: (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. / (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)

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Removed:Recital 31: (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 or most commonly used legal form of non-profit association in national law, if applicable.

Added:Recital 30: (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.

Change 8

Changed:Recital 3331: –(31) paragraphTo 1:facilitate Inthe viewcooperation ofamong theirMember non-profitStates purpose,and ECBAsbetween shouldMember beStates ableand tothe applyCommission, forMember fundingStates fromshould designate a publiccompetent orauthority privateresponsible sourcefor inthe application of the Memberrule State(s)transposing inthis whichDirective they(‘competent operateauthority’) onand ainform non-discriminatorythe basis.Commission Therefore,and the sameECBA rulescommittee thereof. The competent authorities should applykeep toin close contact with the Commission and the ECBA ascommittee. thoseThe applicableCommission toshould publish the mostlist similarof orcompetent mostauthorities commonlyon useda legalpublic form.website Thereand shouldupdate beit nowithout restrictionundue ondelay when changes occur. To have a comprehensive overview of the ECBA’slegal righttreatment toof receiveECBAs andin provideMember funding,States, exceptMember whereStates ashould restrictionnotify isthe prescribedCommission byof law,the justifiednames byand antasks overridingof reasonrelevant inauthorities, other than the publiccompetent interest,authorities, isestablished appropriateor fordesignated ensuringfor the attainmentpurposes of the objectivenational pursuedrules andapplicable doesto notthe gosingle beyondmost whatsimilar isor necessarymost forcommonly itused tolegal beform attainedof andnon-profit isassociation compliantin withnational Unionlaw, law.if applicable.

Change 9

Removed:Recital 35: (35) In order to establish a genuine internal market for non-profit associations, it is necessary to abolish certain restrictions on the freedom of establishment, the free movement of services and the free movement of capital that still apply in the laws of certain Member States. Therefore, Member States should not impose any discriminatory requirements based on the nationality of members of an ECBA or its executive body, except as provided for by this Directive. Nor should Member States provide for any requirement on physical presence of members for the validity of a meeting. To enable ECBAs to enjoy the full benefits of the internal market, Member States should not require the registered office of an ECBA to be in the same Member State as its central administration or the principal place of operations. Member States should also not impose general prohibitions on ECBAs carrying out economic activities, nor only allow them to engage in economic activities if they are linked to an objective set out in an ECBA’s statutes. In line with the right to freedom of expression, Member States should not impose any restrictions or additional requirements with regard to participation in matters of public or political debate, including, inter alia, the organisation of or participation in public interest advocacy, activism, demonstrations, whether carried out on a regular basis or on occasion, as part of the objectives of the ECBA or through its activities, irrespective of whether such part…

Added:Recital 33: (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.

Removed:Recital 38: (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, interpreted strictly by the Member State concerned, and do not go beyond what is necessary in order for the objective 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.

Added:Recital 35 a (new): (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.

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Added:Recital 36 a (new): (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.

Added:Recital 38: (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.

Added:Recital 39: (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.

Change 10

Changed:Recital 41: (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 2at least 5 years after dissolution.dissolution Any national or European requirements concerning the authenticity, reliability and the appropriate legal form of docume…

Change 11

Changed:Recital 45: (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.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,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, where theor membersa offlagrant theand executiverepeated bodybreach of an ECBA have beenthe convictedvalues of a particularly serious criminal offence committed in the name, on behalf or for theUnion benefitenshrined ofin theArticle ECBA,2 orTEU thethrough ECBAits itselfactivities has been convicted of a particularly serious criminal offence,established ifunder nationalthe lawcondition allowsthat forthe thisdissolution possibility,is orpreceded whereby a member ofrisk theassessment, executivethat bodyit is convictedprescribed ofby alaw, particularappropriate seriousand criminalstrictly offencenecessary, committedand afterthat the creationdissolution of the ECBA, in the eventECBA thatis participationproportionate into the executive body by this person would be a threat to publicobjective order.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,time. Any decision for exampleinvoluntary bydissolution replacingshould thebe convictedduly membersreasoned concerne…and include a comprehensive written justification.

Change 12

Removed:Recital 45 a (new): (45a) The term ‘particularly serious criminal offence’ should be understood to mean one of the offences listed in Article 2 (2) of the Council Decision on a European Arrest Warrant*. This notion should be strictly interpreted by Member States and applied in a non-discriminatory way. It should be understood to 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, organised crime and participation in a criminal organisation. / * Council Framework Decision of 13 June 2002 on the European arrest warrant and the surrender procedures between Member States (2002/584/JHA).

Added:Recital 46: (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.

Removed:Replacing former recital 48.

Added:Recital 47: (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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Removed:Recital 46: (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 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 like that pursued by the dissolved ECBA.

Removed:Recital 47: (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 with the acronym 'ECBA' before or after that name, 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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Removed:Replaced by new recital 45a.

Added:Recital 49 a (new): (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.

Removed:Article 2 – paragraph 1 – point e a (new): ea) ‘particularly serious offence’ means one of the offences listed in Article 2(2) of Council Framework Decision 2002/584/JHA; this notion should be strictly interpreted by Member States and applied in a non-discriminatory way.

Added:Recital 49 b (new): (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.

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Removed:Article 3 – paragraph 3: 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: / (a) based on citizenship or legal residence in the case of natural persons, or / (b) based on the location of their registered office or on the citizenship or legal residence or the location of the registered office of their members, in the case of legal entities.

Added:Recital 49 c (new): (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.

Removed:Article 4 – paragraph 2: 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..

Added:Article 2 – paragraph 1 – point c: (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;

Removed:Article 4 – paragraph 3: 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. Such measures shall be appropriate and interpreted strictly by the Member State that applies them, and their application shall be based on a case-by-case assessment by the Member State's competent authorities.

Added:Article 2 – paragraph 1 – point d: (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;

Removed:Article 4 – paragraph 4: 4. By ... [one year after the entry into force of this Directive] and following consultation of stakeholders in line with Article 31(1a) of this Directive, each Member State shall identify the 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. That notification shall be accompanied by a report following the consultation of stakeholders. 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.

Added:Article 2 – paragraph 1 – point e: (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.

Removed:Article 4 – paragraph 4 a (new): 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 or working conditions. In line with applicable collective agreements and Union and national law, the obligations regarding employees and creditors shall continue to be fulfilled and employees, volunteers, trade unions and workers’ representatives shall be duly informed of such obligations and consulted in relation to them. Collective agreements and workers’ board-level representation rights shall be respected and maintained.

Added:Article 2 – paragraph 1 – point e a (new): (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.

Removed:Article 5 – paragraph 2: 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.

Added:Article 3 – paragraph 1 – point a: (a) trade unions and political parties;

Added:Article 3 – paragraph 2: 2. Member States shall ensure that an ECBA shall have a non-profit purpose in accordance with Article 2(1), point (c).

Added:Article 3 – paragraph 3: 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:

Added:Article 3 – paragraph 3 – point a (new): (a) based on citizenship or legal residence in the case of natural persons; or

Added:Article 3 – paragraph 3 – point b (new): (b) based on the location of their registered office in the case of legal entities.

Added:Article 4 – paragraph 2: 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.

Added:Article 4 – paragraph 3: 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.

Added:Article 4 – paragraph 4: 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.

Added:Article 4 – paragraph 4 a (new): 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.

Added:Article 5 – paragraph 1: 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.

Added:Article 5 – paragraph 2: 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).

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Changed:Article 6 – paragraph 1 – point c: (c) appropriate for ensuring the attainment of the objective pursued, interpreteddo strictlynot bygo thebeyond Memberwhat Stateis concernedstrictly andnecessary doand notthe goimpact beyondof whatthe isrestricting necessaryrules inon orderan forECBA thatis objectiveproportionate to bethe attained.objective pursued.

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Added:Article 6 – paragraph 2 – introductory part: 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:

Added:Article 6 – paragraph 2 – point b: (b) a detailed description of its objectives, a statement of its non-profit purpose and a description of its cross-border dimension;

Added:Article 6 – paragraph 2 – point b a (new): (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.

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Removed:Article 7 – paragraph 2: 2. The executive body of an ECBA shall be composed of a minimum of three persons, which are natural persons or legal entities with a non-profit purpose established in the Union, through their representatives.

Added:Article 6 – paragraph 2 – point j: (j) provisions governing the number, appointment, removal, powers and responsibilities of the members of the executive body;

Removed:Article 8 – paragraph -1 (new): -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.

Added:Article 6 – paragraph 2 – point n: (n) the method of disposition of the ECBA’s assets in the event of dissolution; and

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Removed:Article 8 – paragraph 1: 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 specified in the statutes.

Added:Article 6 – paragraph 2 – point n a (new): (na) the date of adoption of the statutes.

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Changed:Article 117 – paragraph 1: Member States shall2: ensure2. thatThe allexecutive decisionsbody of competent authorities onan theirECBA territoryshall affectingbe thecomposed rightsof anda obligationsminimum of ECBAs, orthree thepersons, rightsof andwhich obligationsat ofleast othertwo persons in connectionare tonatural thepersons operationsthat ofare ECBAs,Union arecitizens subjector tolegally effectiveresident andin independentthe judicialUnion, review,or inlegal complianceentities with Articlea 47non-profit Charterpurpose ofestablished Fundamentalin Rightsthe ofUnion, thethrough Union.their representatives.

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Added:Article 7 – paragraph 3: 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.

Added:Article 8 – paragraph -1 (new): -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.

Added:Article 8 – paragraph 1: 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.

Added:Article 10 – paragraph 1: 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.

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Added:Article 11 – paragraph 1: 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.

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Changed:Article 12 – paragraph 2 – point c: (c) appropriate for ensuring the attainment of the objective pursued, interpreted strictly by the Member State concerned and do not go beyond what is strictly necessary inand orderthe forimpact thatof objectivethe requirements on an ECBA is proportionate to bethe attained.objective pursued.

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Changed:Article 13 – paragraph 2 – introductory part: 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 lawful source, except to the extent that such restrictions are:

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Changed:Article 13 – paragraph 2 – point b: (b) justified by overriding reasons in the public interest;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

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Changed:Article 13 – paragraph 2 – point c: (c) appropriate, interpreted strictly and necessaryappropriate for ensuring the attainment of the objective pursued andpursued, do not go beyond what is strictly necessary inand orderthe forimpact itof the restriction on an ECBA is proportionate to bethe attained.objective pursued.

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Changed:Article 14 – paragraph 2 – point b: (b) justified by overriding reasons in theof public interest; and

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Changed:Article 14 – paragraph 2 – point c: (c) appropriate for ensuring the attainment of the objective pursued, interpreted strictly by the Member State concerned and do not go beyond what is strictly necessary inand orderthe forimpact thatof objectivethe restriction on an ECBA is proportionate to bethe attained.objective pursued.

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Changed:Article 15 – paragraph 1 – point g a (new): (ga) restrictions on or additional requirements regarding the participation in matters of public or political debate, whether carried out on a regular or on an occasional basis as part of the objectives of the ECBA or through its activities, whether perceived or real, where such activities are not meant to benefit any single particular political party or political candidate.basis.

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Added:Article 16 – paragraph 3: 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).

Added:Article 17 – title: Conversion of non-profit entities into an ECBA

Added:Article 17 – paragraph 1: 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.

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Changed:Article 17 a (new): Article 17a / Merger of existing non-profit entities into an ECBAs / 1. Member States shall ensure that two or more ECBAsexisting establishednon-profit inentities thethat sameare orlegally established in differenton or more Member StatesStates, maycan merge into an ECBA where: / (a) one or more ECBA,non-profit entity, on being dissolved without going into liquidation, transfers all its assets and liabilities to another existing ECBA, being the acquiring ECBA,ECBA; or / (b) one or more ECBA,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 ECBAs.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 ECBAs that merged, apart from the acquiring ECBA where applicable, are removed from any regi…entry…

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Added:Article 18 – paragraph 1 – subparagraph 1 – introductory part: 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:

Added:Article 18 – paragraph 1 – subparagraph 1 – point c: (c) the postal address of the intended registered office;

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Removed:Article 18 – paragraph 4: 4. Member States shall ensure that the application for registration of an ECBA, including in cases of conversions and mergers, may be submitted online.

Added:Article 18 – paragraph 3: 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.

Removed:Article 19 – paragraph 4 – subparagraph 1 – point e: (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 as referred to in Article 7(3), second subparagraph, and such authorisation to represent the ECBA or membership in the executive body would be a threat to public order. In such cases, the ECBA shall be given reasonable time to rectify the situation.

Added:Article 18 – paragraph 4: 4. Member States shall ensure that the application for registration of an ECBA including in cases of conversions and mergers, can be submitted online.

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Removed:Article 19 – paragraph 5 a (new): 5a. Member States shall publish the registration procedure on the Single Digital Gateway established by Regulation (EU) 2018/1724.

Added:Article 19 – paragraph 4 – subparagraph 1 – point d: (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;

Removed:Article 20 – paragraph 1: 1. Each Member State shall establish or use an existing national register for the purposes of registration of ECBAs pursuant to Article 19.

Added:Article 19 – paragraph 4 – subparagraph 1 – point e: (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.

Removed:Article 20 – paragraph 5: 5. Member States shall ensure that the documents and information referred to in paragraph 4 are publicly available until the financial year following the dissolution of an ECBA.

Added:Article 19 – paragraph 5 a (new): 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).

Removed:Article 22 – paragraph 4 – point d: (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 as referred to in Article 7(3), second subparagraph, in the previous home Member State, and such representation or participation in the executive body by this person would be 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.

Added:Article 20 – paragraph 1: 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.

Removed:Article 23 – paragraph 3 – subparagraph 1 a (new): Member States shall ensure that the application for a transfer of a registered office may be submitted online.

Added:Article 20 – paragraph 2 – point a a (new): (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);

Removed:Article 25 – paragraph 2 – point c: (c) a conviction for a 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

Added:Article 20 – paragraph 5: 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.

Removed:Article 25 – paragraph 2 – point c a (new): (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 be a threat to public order.

Added:Article 20 – paragraph 6: 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.

Removed:Article 25 – paragraph 2 – subparagraph 1 a (new): Where Member States provide for the involuntary dissolution of an ECBA in accordance with the first subparagraph, they shall provide a comprehensive written justification.

Added:Article 21 – paragraph 1 – introductory part: 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:

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Changed:Article 2521 – paragraph 3: 3. WhereTo facilitate the competentuse authorityof hasthe concernsECBA thatcertificate onein ofall Member States, harmonise its format and reduce the reasonsadministrative referredburden tofor inboth paragraphMember 2States ofcompetent thisauthorities Articleand exists,ECBAs, itthe shallCommission giveshall aestablish reasonedthe noticetemplate tofor the ECBA incertificate writingand its technical specifications by means of itsan concernsimplementing andact. giveThat reasonableimplementing timeact toshall thebe ECBAadopted toin provideaccordance replieswith regardingthe thoseexamination concernsprocedure orreferred to rectifyin theArticle situation.29a(6).

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Removed:Article 25 – paragraph 5: 5. Member States shall ensure that the decision referred to in paragraph 4 of this Article is reasoned, confirmed by a judicial decision and subject to effective judicial review in line with Article 11, and does not take effect while judicial review is pending.

Added:Article 22 – paragraph 4 – point c: (c) when an ECBA has been declared insolvent or is subject to insolvency proceedings;

Removed:Article 26 – paragraph 2: 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 that is similar to the one pursued by the dissolved ECBA.

Added:Article 22 – paragraph 4 – point d: (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.

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Removed:Article 27 – paragraph 1: 1. Each Member States shall designate an independent competent authority (‘competent authority’) responsible for the application of this Directive.

Added:Article 23 – paragraph 1: 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.

Removed:Article 27 – paragraph 3: 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 or most commonly used form of non-profit association in their domestic legal order, as identified pursuant to Article 4(4), if applicable.

Added:Article 23 – paragraph 1 a (new): 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).

Added:Article 23 – paragraph 2: 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.

Added:Article 23 – paragraph 3 – point f: (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.

Added:Article 23 – paragraph 3 a (new): 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.

Added:Article 24 – paragraph 1 – introductory part: 1. Member States shall ensure that an ECBA shall only be dissolved by decision of its members and in accordance with its statutes.

Added:Article 24 – paragraph 1 – point a: deleted

Added:Article 24 – paragraph 1 – point b: deleted

Added:Article 24 – paragraph 1 – point c: deleted

Added:Article 25 – paragraph 2 – introductory part: 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:

Added:Article 25 – paragraph 2 – point b: (b) a serious threat to public order or public security caused by the activities of the ECBAs; or

Added:Article 25 – paragraph 2 – point b a (new): (ba) a flagrant and repeated breach of the values of the Union enshrined in Article 2 TEU through its activities;

Added:Article 25 – paragraph 2 – point c: (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

Added:Article 25 – paragraph 2 – point c a (new): (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.

Added:Article 25 – paragraph 3: 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.

Added:Article 25 – paragraph 4: 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.

Added:Article 25 – paragraph 5: 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.

Added:Article 26 – paragraph 2: 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.

Added:Article 27 – paragraph 1: 1. Each Member States shall designate the competent authority (‘competent authority’) responsible for the application of and supervision under this Directive.

Added:Article 27 – paragraph 2: 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.

Added:Article 27 – paragraph 3: 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.

Change 32

Changed:Article 29 – paragraph -1 a (new): -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.

Change 33

Changed:Article 29 – paragraph 1: 1. 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 include in particular: / (a) an evaluation of the effectiveness of the Directive with regard to the goals pursued, / (b) an assessment of possible benefits and the feasibility of harmonising at Union level the recognition and granting of a public benefit status, in particular to ECBAs , / (c) an assessment of possible benefits and the feasibility of putting forward a proposal for abe Regulationpreceded forby a European Association similar to Regulation (EU, Euratom) No 1141/2014 of the European Parliament andconsultation of the Council on the statute and funding ofrelevant Europeanstakeholders, politicalincluding partiesECBAs and European political foundations, / (d) an assessmentother ofrelevant possiblenon-profit benefitsorganisations, and the feasibility of bringing a proposal for a Regulation for a European statute for foundations. / Where appropriate, the report shall be accompanied by a proposal for amendment ofinclude thisin Directive.particular:

Change 34

Removed:Article 29 a (new): Article 29a / ECBA Committee / 1. The Commission shall be assisted by a Committee called the ECBA Committee. The ECBA Committee shall be composed of two representatives of each Member State. The committee shall be chaired by a representative of the Commission. The chair shall not take part in the committee vote. Member States and the Commission shall ensure a gender balance in the composition of national delegations. 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 this Article. It shall promote the exchange of information, experience and best practices as well as the coordination of policy approaches among national governments and the Commission. / 3. The Committee shall prepare reports, formulate opinions or undertake other work within its fields of competence, at the request of either the Council or the Commission or on its own initiative. / 4. The Committee shall work, as appropriate, in cooperation with other relevant bodies and committees, such as the EU Agency for Fundamental Rights. / 5. In fulfilling its mandate, the Committee shall establish appropriate contacts with relevant stakeholders and non-profit associations in particular, and may invite them to their meetings. / 6. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall appl…

Added:Article 29 – paragraph 1 – point a (new): (a) an overview of the number and geographical spread of ECBAs in the EU;

Removed:Moved and amended from article 30

Added:Article 29 – paragraph 1 – point b (new): (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;

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Added:Article 29 – paragraph 1 – point c (new): (c) an assessment of the relevant legal, technical and economic developments affecting non-profit associations, and

Added:Article 29 – paragraph 1 – point d (new): (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;

Added:Article 29 – paragraph 1 – subparagraph 1 (new): Where appropriate, the report shall be accompanied by a legislative proposal for amending this Directive.

Added:Article 29 a (new): 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.

Change 35

Removed:Moved to chapter 6

Added: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.

Change 36

Changed:Article 31 – paragraph 1:1 1.a (new): 1a. Member States shall adoptprovide andinformation publishto theand laws,consult regulations,with andnon-profit administrativeorganisations provisionsestablished, necessaryregistered toor complyoperating within thistheir Directiveterritory byprior [1to yearand fromduring the entrytransposition intoand forceimplementation of thisthe Directive].provisions Theyof shallthis immediatelyDirective communicateas thewell textas ofthe thoserevision measuresof torelevant thenational Commission.provisions.

Change 37

Changed:Article 31 – paragraph 1 a2: (new):2. 1a.When Member States shall consult non-profitadopt organisationsthose established,measures registeredpursuant orto operatingparagraph in1, theirthey territoryshall incontain a timely, transparent and meaningful manner about thereference transpositionto andthis implementationDirective ofor theshall provisionsbe ofaccompanied thisby Directivesuch asa wellreference ason the revisionoccasion of relevanttheir nationalofficial provisions.publication. SuchMember consultationStates shall take placedetermine priorhow tosuch thereference transpositionis ofto thisbe Directivemade and athow leastthat twicestatement ais yearto thereafter.be formulated.

Change 38 under “EXPLANATORY STATEMENT”

Added:LETTER OF THE COMMITTEE ON THE INTERNAL MARKET AND CONSUMER PROTECTION

Added:Mr Adrián VÁZQUEZ LÁZARA

Added:Chair

Added:Committee on Legal Affairs

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Added:BRUSSELS

Added: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))

Added:Dear Mr Chair,

Added: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.

Added: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.

Added:Yours sincerely,

Added:Anna CAVAZZINI

Added:Chairwoman

Added:PRINCIPLES AND PRIORITIES

Added: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:

Added: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.

Added: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.

Added: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.

Added: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.

Added: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.

Added: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.