(1)

On 29 September 2015, the Council authorised the Commission and the High Representative of the Union for Foreign Affairs and Security Policy to open negotiations with the Republic of Armenia on a framework agreement.

(2)

Those negotiations have been successfully completed, and the Comprehensive and Enhanced Partnership Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Armenia, of the other part (‘the Agreement’) was initialled on 21 March 2017.

(3)

The Agreement will be signed on behalf of the Union and applied on a provisional basis in accordance with Article 385 of the Agreement, pending its entry into force at a later date.

(4)

The Agreement also covers matters falling under competences of the European Atomic Energy Community.

(5)

The signature and conclusion of the Agreement are subject to a separate procedure as regards matters falling under the Treaty on European Union and the Treaty on the Functioning of the European Union.

(6)

The Agreement should therefore also be concluded on behalf of the European Atomic Energy Community as regards matters falling under the Euratom Treaty.

(7)

Article 102 of the Euratom Treaty states that the Agreement may not enter into force for the European Atomic Energy Community until the European Commission has been notified by the Member States that the Agreement has become applicable in accordance with the provisions of their respective national laws.

(8)

The conclusion of the Agreement by the European Commission, acting on behalf of the European Atomic Energy Community, should be approved as regards matters falling within the competence of the European Atomic Energy Community,

(1)

A number of the State aid rules adopted as part of the 2012 ‘State Aid Modernisation’ initiative are due to expire by the end of 2020. In particular, Commission Regulations (EU) No 1407/2013 (2) and (EU) No 651/2014 (3) will expire on 31 December 2020.

(2)

To provide predictability and legal certainty, while preparing for a possible future update of the State aid rules adopted as part of the State Aid Modernisation initiative, the Commission should take action in two phases.

(3)

First, the Commission should extend the period of application of State aid rules which would otherwise expire by end 2020. Second, in line with the Commission’s Better Regulation Guidelines (4), the Commission should evaluate those rules together with the other State aid rules, which were adopted as part of the State Aid Modernisation initiative. The Commission launched the evaluation of those rules on 7 January 2019 in the form of a ‘fitness check’. In the context of the European Green Deal (5) and the European Digital Agenda, the Commission has already announced its intention to revise a series of guidelines by the end of 2021. On that basis, the Commission will decide whether to further prolong or update the rules.

(4)

Considering the broad scope of the fitness check and the fact that the results of the evaluations will not be available before late 2020, a policy decision on the design of the State aid rules post 2020 cannot be taken in time to ensure legal certainty and stability for the stakeholders as regards the applicable rules post 2020. A prolongation is therefore necessary to allow a proper assessment of the State aid rules and ensure predictability and stability of those rules for the Member States.

(5)

Therefore, the period of application of Regulations (EU) No 1407/2013 and (EU) No 651/2014 should be extended by three years until 31 December 2023.

(6)

Regulations (EU) No 1407/2013 and (EU) No 651/2014 should therefore be amended accordingly.

(7)

As a consequence of the extension of the period of application of Regulation (EU) No 651/2014, some Member States may wish to extend the validity of aid measures exempted under that Regulation and about which summary information has been provided in accordance with point (a) of Article 11 of that Regulation. In order to provide transparency, Member States should communicate to the Commission the updated summary information regarding the extension of those measures.

(8)

Schemes set up under Sections 1 (with the exception of Article 15), 2, 3, 4, 7 (with the exception of Article 44) and 10 of Chapter III of Regulation (EU) No 651/2014, having an average annual State aid budget exceeding EUR 150 million, which have been exempted for longer than six months pursuant to a decision by the Commission and which the respective Member State wishes to extend for the period after 31 December 2020, should continue to be exempted until 31 December 2023, provided Member States have provided the Commission with the updated summary information and have submitted a final evaluation report in line with the evaluation plan approved by the Commission.

(9)

In view of the economic and financial consequences that the COVID-19 outbreak has on undertakings and in order to ensure consistency with the general policy response adopted by the Commission, especially in the period 2020-2021, Regulation (EU) No 651/2014 should be amended accordingly. In particular, undertakings which became undertakings in difficulty as a consequence of the COVID-19 outbreak should remain eligible under Regulation (EU) No 651/2014 for a limited period of time. Likewise, undertakings, which have to temporarily or permanently lay off staff due to the COVID-19 outbreak, should not be deemed to have breached relocation commitments given before 31 December 2019 at the time of receiving regional aid. Those exceptional provisions should apply for a limited period from 1 January 2020 to 30 June 2021.

(10)

Regulations (EU) No 1407/2013 and (EU) No 651/2014 should therefore be amended accordingly,

(1)

Regulation (EU) 2015/2283 provides that only novel foods authorised and included in the Union list may be placed on the market within the Union.

(2)

Pursuant to Article 8 of Regulation (EU) 2015/2283, Commission Implementing Regulation (EU) 2017/2470 (2) which establishes a Union list of authorised novel foods was adopted.

(3)

On 29 February 2012, the company Sciotec Diagnostic Technologies, GmbH informed the Commission, pursuant to Article 5 of Regulation (EC) No 258/97 of the European Parliament and of the Council (3), of its intention to place on the market ‘protein extract from pig kidneys’ as a novel food ingredient to be used in foods for special medical purposes as defined in Regulation (EU) No 609/2013 of the European Parliament and of the Council (4), and in food supplements as defined in Directive 2002/46/EC of the European Parliament and of the Council (5). Therefore, protein extract from pig kidneys was included in the Union list of novel foods.

(4)

On 14 May 2019, the company Dr Health Care España, S.L. made a request to the Commission to extend the conditions of use of the protein extract from pig kidneys within the meaning of Article 10(1) of Regulation (EU) 2015/2283. The application requested to include enteric coated tablets as an allowed form of protein extract from pig kidneys to be used in foods for special medical purposes and in food supplements, in addition to the currently authorised enteric coated encapsulated pellets.

(5)

The Commission did not request an opinion from the European Food Safety Authority, as the amendment of the conditions of use of the novel food protein extract from pig kidneys by including enteric coated tablets as an allowed form of protein extract from pig kidneys to be used in foods for special medical purposes and in food supplements, is not liable to change the effects of this authorised novel food on human health.

(6)

The maximum level of protein extract from pig kidneys as a novel food currently authorised to be used in enteric coated encapsulated pellets in foods for special medical purposes, and in food supplements, is 3 capsules/day, corresponding to 12,6 mg pig kidney extract a day. The proposed use of the enteric coated tablets form will not alter the currently authorised maximum level of the novel food. Therefore, it is appropriate to amend the section of the Union list on the conditions of use of protein extract from pig kidneys to authorise its use also in enteric coated tablets form at the same maximum authorised level as the already authorised forms of use of this novel food.

(7)

The Annex to Implementing Regulation (EU) 2017/2470 should therefore be amended accordingly.

(8)

The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Plants, Animals, Food and Feed,

(1)

Pursuant to Article 50(2)(a) of Regulation (EU) No 1151/2012, Italy’s application to register the name ‘Pecorino del Monte Poro’ was published in the Official Journal of the European Union (2).

(2)

As no statement of opposition under Article 51 of Regulation (EU) No 1151/2012 has been received by the Commission, the name ‘Pecorino del Monte Poro’ should therefore be entered in the register.

(3)

By letter received on 20 January 2020, the Italian authorities notified the Commission that the company Cooperativa Fattoria della Piana Società Agricola, which is established on their territory, had been legally marketing the product sold under the name ‘Pecorino Monteporo’, using this name continuously for at least 5 years, and that this point had been noted in the national opposition procedure.

(4)

Since the company Cooperativa Fattoria della Piana Società Agricola meets the requirements laid down in Article 15(1) of Regulation (EU) No 1151/2012 for the granting of a transitional period in which to make legal use of the sales name after registration, it should be granted a transitional period of 3 years in which it may use the name ‘Pecorino Monteporo’.

(5)

The measures provided for in this Regulation are in accordance with the opinion of the Agricultural Product Quality Policy Committee,

(1)

The Union is the world-leading producer of wine. In marketing years 2014/15 to 2018/2019, the average annual wine production in the Union was 167,6 million hectolitres. The wine marketing year runs from 1 August to 31 July of the following year. The Union accounts for 45 % of global wine-growing areas, 65 % of global production, 60 % of global consumption and 70 % of exports to third countries. The top five wine-producing countries in the Union are, in decreasing order of production volumes, Italy, France, Spain, Germany and Portugal.

(2)

Due to the COVID-19 pandemic and the extensive movement restrictions on persons put in place in the Member States, growers of wine grapes and producers of wine have been experiencing an economic disruption that has led to financial difficulties and cash-flow problems.

(3)

The spread of the disease and the measures in place have limited the availability of labour, compromising notably the stages of production, processing and transport of wine grapes and wine.

(4)

The mandatory closure of restaurants, hotels, bars, as well as the cancellation of festivities and celebrations such as weddings, birthdays and business events in the Union and in third countries, brought the operation of the hospitality and catering sectors to a halt for several months. In addition, tourism and wine-tourism activities such as tastings, fairs and purchases and consumption at the source, have been largely disrupted in most Member States since March 2020.

(5)

As a result, there have been significant changes in the demand patterns for wine. Consumer demand has shifted towards the home consumption of wine. While consumers have increased the home consumption of certain wine products, such increased home consumption has not compensated for the drop in demand in the hospitality and catering industry.

(6)

The closure of restaurants and other hospitality establishments has caused a drop in turnover for wine producers. In Germany, wine producers lost 50 % of their turnover in the first quarter of 2020 as sales to restaurants did not take place. There was also a 23 % reduction in sales to specialised wine shops, which often market higher-end wines. According to industry estimates for the entire Union, restaurant, bar and hotel closures have, from the beginning of the closure of restaurants from mid-March until the end of May 2020, resulted in a 30 % reduction in the volume of wine sold and a drop in value of 50 % compared to the sales before the closures.

(7)

Despite the recent relaxation of certain measures and the easing of certain movement restrictions, including the reopening of restaurants and hospitality establishments, the situation is not expected to normalise in the next 6 months. Restaurants and other hospitality establishments will have to respect social distancing conditions that limit the number of customers. In addition, in many Member States, certain restrictions remain in place regarding the size of social gatherings, including private events such as weddings, where wine is traditionally consumed.

(8)

Worldwide tourism, which is expected to experience a 70 % drop in turnover in the second quarter of 2020, is also not expected to resume in the next 6 months to a sufficient extent to compensate for the absence of consumption in restaurants during the period where the extensive movement restrictions were in place.

(9)

Overall, it is estimated that wine consumption in the Union in marketing year 2019/2020 will fall to 108 million hectolitres. This is an overall reduction in consumption of more than 8 % in marketing year 2019/2020 compared to the average of the past 5 marketing years.

(10)

Exports to third countries are particularly important for the Union wine sector. In 2019, exports totalled EUR 12,1 billion. During the COVID-19 pandemic, exports have been affected by logistical challenges as well as by a reduction in consumption because of the movement restrictions imposed also in third countries. The outbreak of the COVID-19 pandemic in China led to significant port congestion there and elsewhere, as well as to increased blank sailings that led to containers being scarcer, freight rates increasing significantly and exporters seeing their shipments postponed. In addition, Union wine exports had already been negatively affected by the increased import tariffs that the United States imposed on certain wine imports from the Union. Since October 2019, the United States, which is the Union’s main wine export market, has imposed 25 % ad valorem import tariffs on Union still wines.

(11)

Overall, Union wine exports to third countries are expected to fall by 14 % in marketing year 2019/2020, both compared to the previous marketing year and compared to the average of the past 5 marketing years. Compared to May 2019, the exports of French, Italian and Spanish wines to third countries decreased significantly in May 2020: French wine exports to third countries decreased by 33 % in volume and 55 % in value; Italian wine exports to third countries decreased by 22 % in volume and 26 % in value; and Spanish wine exports to third countries decreased by 63 % in volume and 43 % in value.Exports of sparkling wines have been particularly impacted based on the same reference periods. According to estimates from the wine industry, in May 2020, exports of Champagne to the United States and China decreased by 64 % in volume and 55 % in value, exports of Prosecco to third countries decreased by 27 % in volume and 32 % in value, and exports of Cava to third countries decreased by 40 % in volume and value.

(12)

In addition, there are currently large volumes of wine in storage due to an exceptional harvest of 174,4 million hectolitres in marketing year 2018/2019, which increased the opening stocks in marketing year 2019/2020 by 14 % compared to marketing year 2018/2019. Unsold wine will have to be stored.

(13)

The above circumstances lead to a qualification of these events as a period of severe market imbalance.

(14)

In order to help wine growers and wine producers find a balance in this period of severe market imbalance, it is appropriate to allow for agreements and decisions of farmers, farmers’ associations or associations of such associations, or recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations concerning the production of wine grapes and of wine, on a temporary basis for a period of 6 months. These measures include: (i) transformation and processing; (ii) storage; (iii) joint promotion; (iv) quality requirements; and (v) temporary planning of production.

(15)

Such agreements and decisions could for example include: (i) processing wine for other purposes such as distillation of wine into alcohol; (ii) creating and finding storage capacities for the increased volume of wine to be stored; (iii) promoting the consumption of wine; (iv) agreeing on quality requirements that would restrict the marketing of wines to those respecting such requirements; and (v) planning measures to reduce volumes for future harvest.

(16)

Any agreement or decision should be temporarily authorised for a period of 6 months. The upcoming harvest for marketing year 2020/2021 starting in August 2020, and the run-up to the end of year celebrations, where in particular high-end wines and sparkling wines are consumed and exported, are the periods in which the said measures can be expected to have most impact.

(17)

In accordance with the first subparagraph of Article 222(1) of Regulation (EU) No 1308/2013, an authorisation is to be given if it does not impair the functioning of the internal market and if the agreements and decisions strictly aim at stabilising the sector. These specific conditions exclude agreements and decisions that directly or indirectly lead to partitioning markets, to discrimination based on nationality or to fixing prices. If the agreements and decisions do not fulfil these conditions, or no longer fulfil these conditions, Article 101(1) of the Treaty applies to these agreements and decisions.

(18)

The authorisation provided for in this Regulation should cover the Union territory given that the severe market imbalance is common to the whole Union.

(19)

In order for the Member States to be in a position to assess whether agreements and decisions concerning the production of wine grapes and of wine do not undermine the functioning of the internal market and strictly aim to stabilise the wine sector, information should be provided to the competent authorities of the Member State, including the competition authorities of that state, having the highest share of estimated volume of production of wine grapes and of wine covered by those agreements or decisions on the agreements concluded and decisions taken and on the volume of production of wine grapes and of wine and time period covered by them.

(20)

Given the severe market imbalance, the necessity to take into account the existing stocks of wine, the drop in consumption and the loss of export markets and so as to help the wine sector recover in the period when the COVID-19 restrictions are eased, including until and beyond the end of year celebrations, this Regulation should enter into force on the day following that of its publication.

(21)

The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of the Agricultural Markets,

(1)

In accordance with the procedure laid down in Articles 19 to 22 of Regulation (EU) 2018/1877, the Commission is to present a proposal by 15 June 2020 specifying (a) the amount of the second instalment of the contribution for 2020, (b) a revised annual amount of the contribution for 2020, in cases where the amount deviates from actual needs.

(2)

In accordance with Article 46 of Regulation (EU) 2018/1877, on 8 April 2020, the European Investment Bank (EIB) sent to the Commission its updated estimates of commitments and payments under the instruments it manages.

(3)

Article 20(1) of Regulation (EU) 2018/1877 provides that calls for contributions first use up the amounts provided for in previous European Development Funds (EDFs). Therefore a call for funds under the 10th European Development Fund (the ‘10th EDF’) for the EIB and under the 11th European Development Fund (the ‘11th EDF’) for the Commission should be made.

(4)

Article 55 of Regulation (EU) 2018/1877 provides that the amounts from projects under the 10th EDF or from other previous EDFs not committed according to Article 1(3) of the Internal Agreement between the Representatives of the Governments of the Member States of the European Union, meeting within the Council, on the financing of European Union aid under the multiannual financial framework for the period 2014 to 2020, in accordance with the ACP-EU Partnership Agreement and on the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the Treaty on the Functioning of the European Union applies (‘the Internal Agreement’), or decommitted according to Article 1(4) of the Internal Agreement, unless decided otherwise by the Council unanimously, shall reduce that part of Member States’ contributions stated in point (a) of Article 1(2) of the Internal Agreement.

(5)

By means of Decision (EU) 2019/1800 (3), the Council has adopted, on 24 October 2019, on a proposal by the Commission, the Decision to set the annual amount of the Member States’ EDF contributions for 2020 at EUR 4 400 000 000 for the Commission, and at EUR 300 000 000 for the EIB,

(1)

The CS2JU carries out its activities in accordance with Regulation (EU) No 558/2014.

(2)

In accordance with Article 25(1) of Regulation (EU) 2018/1725, restrictions on the application of Articles 14 to 22, 35 and 36, as well as Article 4 of that Regulation in so far as its provisions correspond to the rights and obligations provided for in Articles 14 to 22 should be based on internal rules to be adopted by the CS2JU, where these are not based on legal acts adopted on the basis of the Treaties.

(3)

These internal rules, including its provisions on the assessment of the necessity and proportionality of a restriction, should not apply where a legal act adopted on the basis of the Treaties provides for a restriction of data subject’s rights.

(4)

Within the framework of its administrative functioning, the CS2JU may conduct administrative inquiries, disciplinary proceedings, carry out preliminary activities related to cases of potential irregularities reported to OLAF, process whistleblowing cases, process (formal and informal) procedures of harassment, process internal and external complaints, conduct internal audits, carry out investigations by the Data Protection Officer in line with Article 45(2) of Regulation (EU) 2018/1725 and internal (IT) security investigations.

(5)

The CS2JU processes several categories of personal data, including hard data (‘objective’ data such as identification data, contact data, professional data, administrative details, data received from specific sources, electronic communications and traffic data) and soft data (‘subjective’ data related to the case such as reasoning, behavioural data, appraisals, performance and conduct data and data related to or brought forward in connection with the subject matter of the procedure or activity) (4).

(6)

The CS2JU, represented by its Executive Director, acts as the data controller irrespective of further delegations of the controller role within the CS2JU to reflect operational responsibilities for specific personal data processing operations.

(7)

The personal data are stored securely in an electronic environment or on paper ensuring the required safeguards to prevent unlawful access or transfer of data to persons who do not have any lawful right to access such personal data. The personal data processed are retained for no longer than necessary and appropriate for the purposes for which the data are processed for the period specified in the data protection notices, privacy statements or records of the CS2JU.

(8)

The internal rules should apply to all processing operations carried out by the CS2JU in the performance of administrative inquiries, disciplinary proceedings, preliminary activities related to cases of potential irregularities reported to OLAF, whistleblowing procedures, (formal and informal) procedures for cases of harassment, processing internal and external complaints, internal audits, the investigations carried out by the Data Protection Officer in line with Article 45(2) of Regulation (EU) 2018/1725, (IT) security investigations handled internally or with external involvement (e.g. CERT-EU).

(9)

The internal rules should apply to processing operations carried out prior to the opening of the procedures referred to above, during these procedures and during the monitoring of the follow-up to the outcome of these procedures. They should also be applicable to any assistance and cooperation provided by the CS2JU to national authorities and international organisations outside of its own administrative investigations.

(10)

In cases where these internal rules apply, the CS2JU must provide justifications explaining why the restrictions are strictly necessary and proportionate in a democratic society and respect the essence of the fundamental rights and freedoms.

(11)

Within this framework the CS2JU is bound to respect, to the maximum extent possible and in full compliance with the relevant legislation and guidance, the fundamental rights of the data subjects during the above procedures, in particular, those relating to the right of provision of information, access and rectification, right to erasure, restriction of processing, right of communication of a personal data breach to the data subject or confidentiality of communication as enshrined in Regulation (EU) 2018/1725.

(12)

However, the CS2JU may be obliged to restrict the information to data subjects and other data subjects’ rights to protect, in particular, its own investigations, the investigations and proceedings of other public authorities, as well as the rights of other persons connected to its investigations or other procedures.

(13)

The CS2JU may thus restrict the information for the purposes of protecting the investigation, and the fundamental rights and freedoms of other data subjects.

(14)

The CS2JU should periodically monitor that the conditions justifying the restriction apply, and lift the restriction as far as they no longer apply.

(15)

The Controller should inform the Data Protection Officer at the moment of deferral and during the revisions,