Explanatory Memorandum to COM(2023)515 - Amendment of Regulations (EU) No 1024/2012 and (EU) 2018/1724 as regards the use of the Internal Market Information System and the Single Digital Gateway for the purposes of certain requirements laid down by Directive (EU) …/… of the European Parliament and of the Council on European cross-border associations (COM(2023)516))

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1. CONTEXT OF THE PROPOSAL

See Directive COM(2023)516.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

This proposal is based on Article 21(2) TFEU and Article 114 TFEU.

This proposal amends Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on administrative cooperation through the Internal Market Information System and repealing Commission Decision 2008/49/EC (‘the IMI Regulation’)1 which is based on Article 114 TFEU.

This proposal also amends 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 1024/20122 which is based on Article 21(2) TFEU as well as on Article 114(1) TFEU.

As regards Article 114 TFEU, it lays down that the European Parliament and the Council adopt the measures for the approximation of the provisions laid down by law, regulation or administrative action in Member States which have as their object the establishment and functioning of the internal market. Since this proposal aims at amending Regulation (EU) No 1024/2012 establishing the IMI which has a direct effect on the functioning of the internal market by facilitating the cooperation between Member States and addressing differences between Member States’ provisions which obstruct the fundamental freedoms, Article 114 TFEU is the appropriate legal basis.

Since this proposal aims at clarifying and amending the scope of Regulation (EU) 2018/1724 in order to provide better online access to information and procedures to citizens, businesses and legal persons other than businesses exercising or intending to exercise their rights derived from Union law in the field of the internal market, within the meaning of Article 26(2) TFEU, it will facilitate the exercise of the rights of Union citizens to move and reside freely within the territory of the Member States. Therefore, it should be based on Article 21(2) TFEU.

Subsidiarity (for non-exclusive competence)

See Directive COM(2023)516.

Proportionality

See Directive COM(2023)516.

Choice of the instrument

Article 114 TFEU lays down that the European Parliament and the Council adopt the measures for the approximation of the provisions laid down by law, regulation or administrative action in Member States which have as their object the establishment and functioning of the internal market.

Given that this proposal would amend two regulations, a regulation is the appropriate legal instrument.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Ex-post evaluations/fitness checks of existing legislation

See Directive COM(2023)516.

Stakeholder consultations

See Directive COM(2023)516.

Collection and use of expertise

See Directive COM(2023) 516.

Impact assessment

See Directive COM(2023)516.

Fundamental rights

See Directive COM(2023)516.

4. BUDGETARY IMPLICATIONS

See Directive COM(2023)516.

5. OTHER ELEMENTS

See Directive COM(2023)516.

Explanatory documents (for directives)

See Directive COM(2023)516.

Detailed explanation of the specific provisions of the proposal

This proposed Regulation is of technical nature and accompanies the Directive COM(2023)516. It amends Regulation (EU) No 1024/2012 which established the Internal Market Information System (IMI) in order to ensure that Member States’ competent authorities cooperate and exchange information through the IMI when they apply the national rules transposed in accordance with the provisions of the Directive COM(2023)516 (Article 1). It also amends Regulation (EU) 2018/1724 which established the single digital gateway, to ensure that Member States give online access to information about European cross-border associations and non-profit associations and facilitate the exchange of evidence between competent authorities in the procedures laid down in the Directive COM(2023)516 (Article 2). By doing so, this amendment aims at ensuring the functioning of the internal market with regard to the provision of information, and procedures.