title: Commission Directive 2014/88/EU of 9 July 2014 amending Directive 2004/49/EC of the European Parliament and of the Council as regards common safety indicators and common methods of calculating accident costs  Text with EEA relevance

text:
               10.7.2014

               EN

               Official Journal of the European Union

               L 201/9

         COMMISSION DIRECTIVE 2014/88/EU
   of 9 July 2014
   amending Directive 2004/49/EC of the European Parliament and of the Council as regards common safety indicators and common methods of calculating accident costs
   (Text with EEA relevance)
   THE EUROPEAN COMMISSION,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to Directive 2004/49/EC of the European Parliament and of the Council of 29 April 2004 on safety of the Community's railways and amending Council Directive 95/18/EC on the licensing of railway undertakings and Directive 2001/14/EC on the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure and safety certification (Railway Safety Directive) (1), and in particular Article 5(2) thereof,
   Whereas:

               (1)

               In accordance with Article 5(1) of Directive 2004/49/EC information on common safety indicators (CSIs) is to be collected by Member States in order to facilitate assessment as to whether the common safety targets (CSTs) have been achieved and provide for the monitoring of the general development of railway safety. In conformity with Article 7(3) of the Directive, the CSTs should define the safety levels expressed in risk acceptance criteria for societal risks. The main purpose of the CSIs should be to measure safety performance and facilitate assessment of the economic impact of CSTs. Therefore, it is necessary to move from indicators relating to accident-related costs borne by railways to indicators relating to the economic impact of accidents on society.

               (2)

               Attributing monetary values to improved safety performance should be seen in the context of limited budgetary resources for public policy actions. Priority should therefore be given to initiatives that ensure an efficient allocation of resources.

               (3)

               Article 9 of Regulation (EC) No 881/2004 of the European Parliament and of the Council (2) mandates the European Railway Agency (the Agency) to set up a network with the safety authorities (as defined in Article 3 of Directive 2004/49/EC) and with the national bodies responsible for investigations in order to define the content of the CSIs listed in Annex I to Directive 2004/49/EC. The Agency delivered its recommendation on the revision of Annex I on 10 December 2013 (ERA-REC-08-2013).

               (4)

               Annex I to Directive 2004/49/EC should therefore be amended accordingly.

               (5)

               The measures provided for in this Directive are in accordance with the opinion of the Committee established pursuant to Article 27(1) of Directive 2004/49/EC,

         HAS ADOPTED THIS DIRECTIVE:
   Article 1
   Annex I to Directive 2004/49/EC is replaced by the text in the Annex to this Directive.
   Article 2
   1.   Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 30 July 2015 at the latest. They shall communicate the text of those provisions to the Commission forthwith.
   When Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on their official publication. Member States shall determine how such reference is to be made.
   2.   Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.
   3.   The obligations to transpose and implement this Directive shall not apply to the Republic of Cyprus and the Republic of Malta for as long as no railway system is established on their territories.
   Article 3
   This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
   Article 4
   This Directive is addressed to the Member States.

      Done at Brussels, 9 July 2014.

            For the Commission

            The President

         José Manuel BARROSO

      (1)  OJ L 164, 30.4.2004, p. 44.

      (2)  Regulation (EC) No 881/2004 of the European parliament and the Council of 29 April 2004 establishing a European railway agency (Agency Regulation) (OJ L 164, 30.4.2004, p. 1).

      ANNEX
      ‘
            ANNEX I
            Common safety indicators
            Common safety indicators (CSIs) shall be reported annually by the safety authorities defined in Article 3(g).
            Indicators relating to activities referred to in Article 2(2), (a) and (b), should be accounted for separately, if they are submitted.
            If new facts or errors are discovered after the submission of the report, the indicators for one particular year shall be amended or corrected by the safety authority at the first convenient opportunity and at the latest in the next annual report.
            Common definitions for the CSIs and methods to calculate the economic impact of accidents are laid down in the Appendix.
            1.   Indicators relating to accidents

                        1.1.

                        Total and relative (to train-kilometres) number of significant accidents and a break-down for the following types of accidents:

                                    —

                                    collision of train with rail vehicle,

                                    —

                                    collision of train with obstacle within the clearance gauge,

                                    —

                                    derailment of train,

                                    —

                                    level crossing accident, including accident involving pedestrians at level crossing, and a further break-down for the five types of level crossings defined in point 6.2,

                                    —

                                    accident to persons involving rolling stock in motion, with the exception of suicides and attempted suicides,

                                    —

                                    fire in rolling stock,

                                    —

                                    other.

                              Each significant accident shall be reported under the type of the primary accident, even if the consequences of the secondary accident are more severe (e.g. a derailment followed by a fire).

                        1.2.

                        Total and relative (to train-kilometres) number of persons seriously injured and killed by type of accident divided into the following categories:

                                    —

                                    passenger (also relative to total passenger-kilometres and passenger train-kilometres),

                                    —

                                    employee or contractor,

                                    —

                                    level crossing user,

                                    —

                                    trespasser,

                                    —

                                    other person at a platform,

                                    —

                                    other person not at a platform.

                  2.   Indicators relating to dangerous goods

            Total and relative (to train-kilometres) number of accidents involving the transport of dangerous goods by rail divided into the following categories:

                        —

                        accident involving at least one railway vehicle transporting dangerous goods, as defined in the Appendix,

                        —

                        number of such accidents in which dangerous goods are released.

                  3.   Indicators relating to suicides

            Total and relative (to train-kilometres) number of suicides and attempted suicides
            4.   Indicators relating to precursors of accidents

            Total and relative (to train-kilometres) number of precursors to accidents and a break down on the following types of precursor:

                        —

                        broken rail,

                        —

                        track buckle and other track misalignment,

                        —

                        wrong-side signalling failure,

                        —

                        signal passed at danger when passing a danger point,

                        —

                        signal passed at danger without passing a danger point,

                        —

                        broken wheel on rolling stock in service,

                        —

                        broken axle on rolling stock in service.

                  All precursors are to be reported, both those resulting and those not resulting in accidents. (A precursor resulting in a significant accident shall also be reported under indicators relating to precursors; a precursor not resulting in a significant accident shall only be reported under indicators relating to precursors).
            5.   Indicators to calculate the economic impact of accidents

            Total in euro and relative (to train-kilometres):

                        —

                        number of deaths and serious injuries multiplied by the Value of Preventing a Casualty (VPC),

                        —

                        cost of damages to environment,

                        —

                        cost of material damages to rolling stock or infrastructure,

                        —

                        cost of delays as a consequence of accidents.

                  Safety authorities shall report the economic impact of significant accidents.
            The VPC is the value society attributes to the prevention of a casualty and as such shall not form a reference for compensation between parties involved in accidents.
            6.   Indicators relating to technical safety of infrastructure and its implementation

                        6.1.

                        Percentage of tracks with Train Protection Systems (TPSs) in operation and percentage of train-kilometres using on-board TPSs, where these systems provide:

                                    —

                                    warning,

                                    —

                                    warning and automatic stop,

                                    —

                                    warning and automatic stop and discrete supervision of speed,

                                    —

                                    warning and automatic stop and continuous supervision of speed.

                        6.2.

                        Number of level crossings (total, per line kilometre and track kilometre) by the following five types:

                                    (a)

                                    passive level crossing

                                    (b)

                                    active level crossing:

                                                (i)

                                                manual,

                                                (ii)

                                                automatic with user-side warning,

                                                (iii)

                                                automatic with user-side protection,

                                                (iv)

                                                rail-side protected.

            Appendix
            Common definitions for the CSIs and methods of calculating the economic impact of accidents
            1.   Indicators relating to accidents

            1.1.   “significant accident” means any accident involving at least one rail vehicle in motion, resulting in at least one killed or seriously injured person, or in significant damage to stock, track, other installations or environment, or extensive disruptions to traffic, excluding accidents in workshops, warehouses and depots;
            1.2.   “significant damage to stock, track, other installations or environment” means damage that is equivalent to EUR 150 000 or more;
            1.3.   “extensive disruptions to traffic” means that train services on a main railway line are suspended for six hours or more;
            1.4.   “train” means one or more railway vehicles hauled by one or more locomotives or railcars, or one railcar travelling alone, running under a given number or specific designation from an initial fixed point to a terminal fixed point, including a light engine, i.e. a locomotive travelling on its own,;
            1.5.   “collision of train with rail vehicle” means a front to front, front to end or a side collision between a part of a train and a part of another train or rail vehicle, or with shunting rolling stock;
            1.6.   “collision of train with obstacle within the clearance gauge” means a collision between a part of a train and objects fixed or temporarily present on or near the track (except at level crossings if lost by a crossing vehicle or user), including collision with overhead contact lines;
            1.7.   “derailment of train” means any case in which at least one wheel of a train leaves the rails;
            1.8.   “level crossing accident” means any accident at level crossings involving at least one railway vehicle and one or more crossing vehicles, other crossing users such as pedestrians or other objects temporarily present on or near the track if lost by a crossing vehicle or user;
            1.9.   “accident to persons involving rolling stock in motion” means accidents to one or more persons who are either hit by a railway vehicle or by an object attached to, or that has become detached from, the vehicle, this includes persons who fall from railway vehicles as well as persons who fall or are hit by loose objects when travelling on board vehicles;
            1.10.   “fire in rolling stock” means a fire or explosion that occurs in a railway vehicle (including its load) when it is running between the departure station and the destination, including when stopped at the departure station, the destination or intermediate stops, as well as during re-marshalling operations;
            1.11.   “other (accident)” means any accident other than a collision of train with rail vehicle, collision of train with obstacle within the clearance gauge, derailment of train, level crossing accident, an accident to person involving rolling stock in motion or a fire in rolling stock;
            1.12.   “passenger” means any person, excluding a member of the train crew, who makes a trip by rail, including a passenger trying to embark onto or disembark from a moving train for accident statistics only;
            1.13.   “employee or contractor” means any person whose employment is in connection with a railway and is at work at the time of the accident, including the staff of contractors, self-employed contractors, the crew of the train and persons handling rolling stock and infrastructure installations;
            1.14.   “level crossing user” means any person using a level crossing to cross the railway line by any means of transport or by foot;
            1.15.   “trespasser” means any person present on railway premises where such presence is forbidden, with the exception of a level crossing user;
            1.16.   “other person at a platform” means any person at a railway platform who is not defined as “passenger”, “employee or contractor”, “level crossing user”, “other person not at a platform” or “trespasser”;
            1.17.   “other person not at a platform” means any person not at a railway platform who is not defined as “passenger”, “employee or contractor”, “level crossing user”, “other person at a platform” or “trespasser”;
            1.18.   “death (killed person)” means any person killed immediately or dying within 30 days as a result of an accident, excluding any suicide;
            1.19.   “serious injury (seriously injured person)” means any person injured who was hospitalised for more than 24 hours as a result of an accident, excluding any attempted suicide.
            2.   Indicators relating to dangerous goods

            2.1.   “accident involving the transport of dangerous goods” means any accident or incident that is subject to reporting in accordance with RID (1)/ADR section 1.8.5;
            2.2.   “dangerous goods” means those substances and articles the carriage of which is prohibited by RID, or authorised only under the conditions prescribed therein.
            3.   Indicators relating to suicides

            3.1.   “suicide” means an act to deliberately injure oneself resulting in death, as recorded and classified by the competent national authority;
            3.2.   “attempted suicide” means an act to deliberately injure oneself resulting in serious injury.
            4.   Indicators relating to precursors of accidents

            4.1.   “broken rail” means any rail which is separated in two or more pieces, or any rail from which a piece of metal becomes detached, causing a gap of more than 50 mm in length and more than 10 mm in depth on the running surface;
            4.2.   “track buckle or other track misalignment” means any fault related to the continuum and the geometry of track, requiring track to be placed out of service or immediate restriction of permitted speed;
            4.3.   “wrong side signalling failure” means any technical failure of a signalling system (either to infrastructure or to rolling stock), resulting in signalling information less restrictive than that demanded;
            4.4.   “Signal Passed at Danger when passing a danger point” means any occasion when any part of a train proceeds beyond its authorised movement and travels beyond the danger point;
            4.5.   “Signal Passed at Danger without passing a danger point” means any occasion when any part of a train proceeds beyond its authorised movement but does not travel beyond the danger point.
            Unauthorised movement as referred to in points 4.4 and 4.5 above means to pass:

                        —

                        a trackside colour light signal or semaphore at danger, or an order to STOP where a Train Protection system (TPS) is not operational,

                        —

                        the end of a safety related movement authority provided in a TPS,

                        —

                        a point communicated by verbal or written authorisation laid down in regulations,

                        —

                        stop boards (buffer stops are not included) or hand signals.

                  Any case in which a vehicle without any traction unit attached or a train that is unattended runs away past a signal at danger is not included. Any case in which, for any reason, the signal is not turned to danger in time to allow the driver to stop the train before the signal is not included.
            Safety Authorities may report separately on the four indices of unauthorised movement listed in the indents in this point and shall report at least an aggregate indicator containing data on all four items indices.
            4.6.   “broken wheel on rolling stock in service” means a break affecting the wheel and creating a risk of accident (derailment or collision);
            4.7.   “broken axle on rolling stock in service” means a break affecting the axle and creating a risk of accident (derailment or collision).
            5.   Common methodologies to calculate the economic impact of accidents

            5.1.   The Value of Preventing a Casualty (VPC) is composed of:

                        (1)

                        Value of safety per se: Willingness to Pay (WTP) values based on stated preference studies carried out in the Member State for which they are applied.

                        (2)

                        Direct and indirect economic costs: cost values appraised in the Member State, composed of:

                                    —

                                    medical and rehabilitation cost,

                                    —

                                    legal court cost, cost for police, private crash investigations, the emergency service and administrative costs of insurance,

                                    —

                                    production losses: value to society of goods and services that could have been produced by the person if the accident had not occurred.

                  When calculating the costs of casualties, fatalities and serious injuries shall be considered separately (different VPC for fatality and serious injury).
            5.2.   Common principles to appraise the value of safety per se and direct/indirect economic costs:
            For the value of safety per se, the assessment of whether available estimates are appropriate or not shall be based on the following considerations:

                        —

                        estimates shall relate to a system for valuation of mortality risk reduction in the transport sector and follow a Willingness to Pay (WTP) approach according to stated preference methods,

                        —

                        the respondent sample used for the values shall be representative of the population concerned. In particular, the sample has to reflect the age/income distribution along with other relevant socioeconomic/demographic characteristics of the population,

                        —

                        method for eliciting WTP values: survey design shall be such that questions are clear/meaningful to respondents.

                  Direct and indirect economic costs shall be appraised on the basis of the real costs borne by society.
            5.3.   Definitions
            5.3.1.   “Cost of damage to environment” means costs that are to be met by Railway Undertakings and Infrastructure Managers, appraised on the basis of their experience, in order to restore the damaged area to its state before the railway accident.
            5.3.2.   “Cost of material damage to rolling stock or infrastructure” means the cost of providing new rolling stock or infrastructure, with the same functionalities and technical parameters as that damaged beyond repair, and the cost of restoring repairable rolling stock or infrastructure to its state before the accident, to be estimated by Railway Undertakings and Infrastructure Managers on the basis of their experience, including also costs related to the leasing of rolling stock, as a consequence of non-availability due to damaged vehicles.
            5.3.3.   “Cost of delays as a consequence of accidents” means the monetary value of delays incurred by users of rail transport (passengers and freight customers) as a consequence of accidents, calculated by the following model:

               VT = monetary value of travel time savings

               Value of time for a passenger of a train (an hour)

            VTP = [VT of work passengers] * [Average percentage of work passengers per year] + [VT of non-work passengers] * [Average percentage of non-work passengers per year]
            VTP is measured in EUR per passenger per hour
            “Work passenger” means a passenger travelling in connection with their professional activities excluding commuting.

               Value of time for a freight train (an hour)

            VTF = [VT of freight trains] * [(Tonne-Km)/(Train-Km)]
            VTF is measured in EUR per freight tonne per hour
            Average tonnes of goods transported per train in one year = (Tonne-Km)/(Train-Km)

               CM = Cost of 1 minute of delay of a train

               Passenger train

            CMP = K1 * (VTP/60) * [(Passenger-Km)/(Train-Km)]
            Average number of passengers per train in one year = (Passenger-Km)/(Train-Km)

               Freight train

            CMF = K2 * (VTF/60)
            Factors K1 and K2 are between the value of time and the value of delay, as estimated by stated preference studies, to take into account that the time lost as a result of delays is perceived significantly more negatively than normal travel time.
            Cost of delays of an accident = CMP * (Minutes of delay of passenger trains) + CMF * (Minutes of delay of freight trains)

               Scope of the model

            Cost of delays is to be calculated for significant accidents, as follows:

                        —

                        real delays on the railway lines where accidents occurred as measured at terminal station

                        —

                        real delays or, if not possible, estimated delays on the other affected lines.

                  6.   Indicators relating to technical safety of infrastructure and its implementation

            6.1.   “Train Protection System (TPS)” means a system that helps to enforce obedience to signals and speed restrictions.
            6.2.   “On-board systems” mean systems assisting the driver to observe line-side signalling and in cab signalling and thus providing protection of danger points and enforcement of speed limits. On-board TPSs are described as follows:

                        (a)

                        Warning, providing automatic warning to driver.

                        (b)

                        Warning and automatic stop, providing automatic warning to driver and automatic stop when passing a signal at danger.

                        (c)

                        Warning and automatic stop and discrete supervision of speed, providing protection of danger points, where “discrete supervision of speed” means supervision of speed at certain locations (speed traps) at the approach of a signal.

                        (d)

                        Warning and automatic stop and continuous supervision of speed, providing protection of danger points and continuous supervision of the speed limits of the line, where “continuous supervision of speed” means continuous indication and enforcement of the maximal allowed target speed on all sections of the line.

                  Type (d) is regarded as Automatic Train Protection (ATP) system.
            6.3.   “level crossing” means any level intersection between a road or passage and a railway, as recognised by the infrastructure manager and open to public or private users. Passages between platforms within stations are excluded, as well as passages over tracks for the sole use of employees.
            6.4.   “road” means, for the purpose of railway accident statistics, any public or private road, street or highway, including adjacent footpaths and bicycle lanes.
            6.5.   “passage” means any route, other than a road, provided for the passage of people, animals, vehicles or machinery.
            6.6.   “passive level crossing” means a level crossing without any form of warning system or protection activated when it is unsafe for the user to traverse the crossing.
            6.7.   “active level crossing” means a level crossing where the crossing users are protected from or warned of the approaching train by devices activated when it is unsafe for the user to traverse the crossing.

                        —

                        Protection by the use of physical devices includes:

                                    —

                                    half or full barriers,

                                    —

                                    gates.

                        —

                        Warning by the use of fixed equipment at level crossings:

                                    —

                                    visible devices: lights,

                                    —

                                    audible devices: bells, horns, klaxons, etc.

                  Active level crossings are classified as:

                        (a)

                        Manual: a level crossing where user-side protection or warning is manually activated by a railway employee.

                        (b)

                        Automatic with user-side warning: a level crossing where user-side warning is activated by the approaching train.

                        (c)

                        Automatic with user-side protection: a level crossing where user-side protection is activated by the approaching train. This shall include a level crossing with both user-side protection and warning.

                        (d)

                        Rail-side protected: a level crossing where a signal or other train protection system permits a train to proceed once the level crossing is fully user-side protected and is free from incursion.

                  7.   Definitions of the scaling bases

            7.1.   “train-km” means the unit of measure representing the movement of a train over one kilometre. The distance used is the distance actually run, if available, otherwise the standard network distance between the origin and destination shall be used. Only the distance on the national territory of the reporting country shall be taken into account.
            7.2.   “passenger-km” means the unit of measure representing the transport of one passenger by rail over a distance of one kilometre. Only the distance on the national territory of the reporting country shall be taken into account.
            7.3.   “line km” means the length measured in kilometres of the railway network in Member States, whose scope is laid down in Article 2. For multiple-track railway lines, only the distance between origin and destination is to be counted.
            7.4.   “track km” means the length measured in kilometres of the railway network in Member States, whose scope is laid down in Article 2. Each track of a multiple-track railway line is to be counted.
         ’

         (1)  RID, Regulations concerning the International Carriage of Dangerous Goods by Rail, as adopted under Directive 2008/68/EC of the European Parliament and of the Council of 24 September 2008 on the inland transport of dangerous goods (OJ L 260, 30.9.2008, p. 13).


Avis juridique important

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31988L0361

Council Directive 88/361/EEC of 24 June 1988 for the implementation of Article 67 of the Treaty

Official Journal L 178 , 08/07/1988 P. 0005 - 0018 Finnish special edition: Chapter 10 Volume 1 P. 0044  Swedish special edition: Chapter 10 Volume 1 P. 0044

COUNCIL DIRECTIVE of 24 June 1988 for the implementation of Article 67 of the Treaty (88/361/EEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Economic Community, and in particular Articles 69 and 70 (1) thereof,Having regard to the proposal from the Commission, submitted following consultation with the Monetary Committee (1),Having regard to the opinion of the European Parliament (2),Whereas Article 8a of the Treaty stipulates that the internal market shall comprise an area without internal frontiers in which the free movement of capital is ensured, without prejudice to the other provisions of the Treaty;Whereas Member States should be able to take the requisite measures to regulate bank liquidity; whereas these measures should be restricted to this purpose;Whereas Member States should, if necessary, be able to take measures to restrict, temporarily and within the framework of appropriate Community procedures, short-term capital movements which, even where there is no appreciable divergence in economic fundamentals, might seriously disrupt the conduct of their monetary and exchange-rate policies;Whereas, in the interests of transparency, it is advisable to indicate the scope, in accordance with the arrangements laid down in this Directive, of the transitional measures adopted for the benefit of the Kingdom of Spain and the Portuguese Republic by the 1985 Act of Accession in the field of capital movements;Whereas the Kingdom of Spain and the Portuguese Republic may, under the terms of Articles 61 to 66 and 222 to 232 respectively of the 1985 Act of Accession, postpone the liberalization of certain capital movements in derogation from the obligations set out in the First Council Directive of 11 May 1960 for the implementation of Article 67 of the Treaty (3), as last amended by Directive 86/566/EEC (4); whereas Directive 86/566/EEC also provides for transitional arrangements to be applied for the benefit of those two Member States in respect of their obligations to liberalize capital movements; whereas it is appropriate for those two Member States to be able to postpone the application of the new liberalization obligations resulting from this Directive;Whereas the Hellenic Republic and Ireland are faced, albeit to differing degrees, with difficult balance-of-payments situations and high levels of external indebtedness; whereas the immediate and complete liberalization of capital movements by those two Member States would make it more difficult for them to continue to apply the measures they have taken to improve their external positions and to reinforce the capacity of their financial systems to adapt to the requirements of an integrated financial market in the Community; whereas it is appropriate, in accordance with Article 8c of the Treaty, to grant to those two Member States, in the light of their specific circumstances, further time in which to comply with the obligations arising from this Directive;Whereas, since the full liberalization of capital movements could in some Member States, and especially in border areas, contribute to difficulties in the market for secondary residences; whereas existing national legislation regulating these purchases should not be affected by the entry into effect of this Directive;Whereas advantage should be taken of the period adopted for bringing this Directive into effect in order to enable the Commission to submit proposals designed to eliminate or reduce risks of distortion, tax evasion and tax avoidance resulting from the diversity of national systems for taxation and to permit the Council to take a position on such proposals;Whereas, in accordance with Article 70 (1) of the Treaty, the Community shall endeavour to attain the highest possible degree of liberalization in respect of the movement of capital between its residents and those of third countries;Whereas large-scale short-term capital movements to or from third countries may seriously disturb the monetary or financial situation of Member States or cause serious stresses on the exchange markets; whereas such developments may prove harmful for the cohesion of the European Monetary System, for the smooth operation of the internal market and for the progressive achievement of economic and monetary union; whereas it is therefore appropriate to create the requisite conditions for concerted action by Member States should this prove necessary;Whereas this Directive replaces Council Directive 72/156/EEC of 21 March 1972 on regulating international capital flows and neutralizing their undesirable effects on domestic liquidity (5); whereas Directive 72/156/EEC should accordingly be repealed,HAS ADOPTED THIS DIRECTIVE:Article 11.  Without prejudice to the following provisions, Member States shall abolish restrictions on movements of capital taking place between persons resident in Member States. To facilitate application of this Directive, capital movements shall be classified in accordance with the Nomenclature in Annex I.2.  Transfers in respect of capital movements shall be made on the same exchange rate conditions as those governing payments relating to current transactions.Article 2Member States shall notify the Committee of Governors of the Central Banks, the Monetary Committee and the Commission, by the date of their entry into force at the latest, of measures to regulate bank liquidity which have a specific impact on capital transactions carried out by credit institutions with non-residents.Such measures shall be confined to what is necessary for the purposes of domestic monetary regulation. The Monetary Committee and the Committee of Governors of the Central Banks shall provide the Commission with opinions on this subject.Article 31.  Where short-term capital movements of exceptional magnitude impose severe strains on foreign-exchange markets and lead to serious disturbances in the conduct of a Member State's monetary and exchange rate policies, being reflected in particular in substantial variations in domestic liquidity, the Commission may, after consulting the Monetary Committee and the Committee of Governors of the Central Banks, authorize that Member State to take, in respect of the capital movements listed in Annex II, protective measures the conditions and details of which the Commission shall determine.2.  The Member State concerned may itself take the protective measures referred to above, on grounds of urgency, should these measures be necessary. The Commission and the other Member States shall be informed of such measures by the date of their entry into force at the latest. The Commission, after consulting the Monetary Committee and the Committee of Governors of the Central Banks, shall decide whether the Member State concerned may continue to apply these measures or whether it should amend or abolish them.3.  The decisions taken by the Commission under paragraphs 1 and 2 may be revoked or amended by the Council acting by a qualified majority.4.  The period of application of protective measures taken pursuant to this Article shall not exceed six months.5.  Before 31 December 1992, the Council shall examine, on the basis of a report from the Commission, after delivery of an opinion by the Monetary Committee and the Committee of Governors of the Central Banks, whether the provisions of this Article remain appropriate, as regards their principle and details, to the requirements which they were intended to satisfy.Article 4This Directive shall be without prejudice to the right of Member States to take all requisite measures to prevent infringements of their laws and regulations, inter alia in the field of taxation and prudential supervision of financial institutions, or to lay down procedures for the declaration of capital movements for purposes of administrative or statistical information.Application of those measures and procedures may not have the effect of impeding capital movements carried out in accordance with Community law.Article 5For the Kingdom of Spain and the Portuguese Republic, the scope, in accordance with the Nomenclature of capital movements contained in Annex I, of the provisions of the 1985 Act of Accession in the field of capital movements shall be as indicated in Annex III.Article 61.  Member States shall take the measures necessary to comply with this Directive no later than 1 July 1990. They shall forthwith inform the Commission thereof. They shall also make known, by the date of their entry into force at the latest, any new measure or any amendment made to the provisions governing the capital movements listed inAnnex I.2.  The Kingdom of Spain and the Portuguese Republic, without prejudice for these two Member States to Articles 61 to 66 and 222 to 232 of the 1985 Act of Accession, and the Hellenic Republic and Ireland may temporarily continue to apply restrictions to the capital movements listed in Annex IV, subject to the conditions and time limits laid down in that Annex.If, before expiry of the time limit set for the liberalization of the capital movements referred to in Lists III and IV of Annex IV, the Portuguese Republic or the Hellenic Republic considers that it is unable to proceed with liberalization, in particular because of difficulties as regards its balance of payments or because the national financial system is insufficiently adapted, the Commission, at the request of one or other of these Member States, shall in collaboration with the Monetary Committee, review the economic and financial situation of the Member State concerned. On the basis of the outcome of this review, the Commission shall propose to the Council an extension of the time limit set for liberalization of all or part of the capital movements referred to. This extension may not exceed three years. The Council shall act in accordance with the procedure laid down in Article 69 of the Treaty.3.  The Kingdom of Belgium and the Grand Duchy of Luxembourg may temporarily continue to operate the dual exchange market under the conditions and for the periods laid down in Annex V.4.  Existing national legislation regulating purchases of secondary residences may be upheld until the Council adopts further provisions in this area in accordance with Article 69 of the Treaty. This provision does not affect the applicability of other provisions of Community law.5.  The Commission shall submit to the Council, by 31 December 1988, proposals aimed at eliminating or reducing risks of distortion, tax evasion and tax avoidance linked to the diversity of national systems for the taxation of savings and for controlling the application of these systems.The Council shall take a position on these Commission proposals by 30 June 1989. Any tax provisions of a Community nature shall, in accordance with the Treaty, be adopted unanimously.Article 71.  In their treatment of transfers in respect of movements of capital to or from third countries, the Member States shall endeavour to attain the same degree of liberalization as that which applies to operations with residents of other Member States, subject to the other provisions of this Directive.The provisions of the preceding subparagraph shall not prejudice the application to third countries of domestic rules or Community law, particularly any reciprocal conditions, concerning operations involving establishment, the provisions of financial services and the admission of securities to capital markets.2.  Where large-scale short-term capital movements to or from third countries seriously disturb the domestic or external monetary or financial situation of the Member States, or of a number of them, or cause serious strains in exchange relations within the Community or between the Community and third countries, Member States shall consult with one another on any measure to be taken to counteract such difficulties. This consultation shall take place within the Committee of Governors of the Central Banks and the Monetary Committee on the initiative of the Commission or of any Member State.Article 8At least once a year the Monetary Committee shall examine the situation regarding free movement of capital as it results from the application of this Directive. The examination shall cover measures concerning the domestic regulation of credit and financial and monetary markets which could have a specific impact on international capital movements and on all other aspects of this Directive. The Committee shall report to the Commission on the outcome of this examination.Article 9The First Directive of 11 May 1960 and Directive 72/156/EEC shall be repealed with effect from 1 July 1990.Article 10This Directive is addressed to the Member States.Done at Luxembourg, 24 June 1988.For the CouncilThe PresidentM. BANGEMANN(1) OJ N° C 26, 1. 2. 1988, p. 1.(2) Opinion delivered on 17 June 1988 (not yet published in the Official Journal).(3) OJ N° 43, 12. 7. 1960, p. 921/60.(4) OJ N° L 332, 26. 11. 1986, p. 22.(5) OJ N° L 91, 18. 4. 1972, p. 13.ANNEX I NOMENCLATURE OF THE CAPITAL MOVEMENTS REFERRED TO IN ARTICLE 1 OF THE DIRECTIVE In this Nomenclature, capital movements are classified according to the economic nature of the assets and liabilities they concern, denominated either in national currency or in foreign exchange.The capital movements listed in this Nomenclature are taken to cover:- all the operations necessary for the purposes of capital movements: conclusion and performance of the transaction and related transfers. The transaction is generally between residents of different Member States although some capital movements are carried out by a single person for his own account (e.g. transfers of assets belonging to emigrants),- operations carried out by any natural or legal person (¹), including operations in respect of the assetsor liabilities of Member States or of other public administrations and agencies, subject to the provisions ofArticle 68 (3) of the Treaty,- access for the economic operator to all the financial techniques available on the market approached for the purpose of carrying out the operation in question. For example, the concept of acquisition of securities and other financial instruments covers not only spot transactions but also all the dealing techniques available: forward transactions, transactions carrying an option or warrant, swaps against other assets, etc. Similarly, the concept of operations in current and deposit accounts with financial institutions, includes not only the opening and placing of funds on accounts but also forward foreign exchange transactions, irrespective of whether these are intended to cover an exchange risk or to take an open foreign exchange position,- operations to liquidate or assign assets built up, repatriation of the proceeds of liquidation thereof (¹) or immediate use of such proceeds within the limits of Community obligations,- operations to repay credits or loans.This Nomenclature is not an exhaustive list for the notion of capital movements - whence a heading XIII - F. 'Other capital movements - Miscellaneous'. It should not therefore be interpreted as restricting the scope of the principle of full liberalization of capital movements as referred to in Article 1 of the Directive.I - DIRECT INVESTMENTS (¹) 1.  Establishment and extension of branches or new undertakings belonging solely to the person providing the capital, and the acquisition in full of existing undertakings.2.  Participation in new or existing undertaking with a view to establishing or maintaining lasting economic links.3.  Long-term loans with a view to establishing or maintaining lasting economic links.4.  Reinvestment of profits with a view to maintaining lasting economic links.A - Direct investments on national territory by non-residents (¹)B - Direct investments abroad by residents (¹)II - INVESTMENTS IN REAL ESTATE (not included under I) (¹) A - Investments in real estate on national territory by non-residentsB - Investments in real estate abroad by residentsIII - OPERATIONS IN SECURITIES NORMALLY DEALT IN ON THE CAPITAL MARKET (not included under I, IV and V) (a)  Shares and other securities of a participating nature (¹).(b)  Bonds (¹).(¹) See Explanatory Notes below.A - Transactions in securities on the capital market 1.  Acquisition by non-residents of domestic securities dealt in on a stock exchange (¹).2.  Acquisition by residents of foreign securities dealt in on a stock exchange.3.  Acquisition by non-residents of domestic securities not dealt in on a stock exchange (¹).4.  Aquisition by residents of foreign securities not dealt in on a stock exchange.B - Admission of securities to the capital market (¹)(i)  Introduction on a stock exchange (¹).(ii)  Issue and placing on a capital market (*).1.  Admission of domestic securities to a foreign capital market.2.  Administration of foreign securities to the domestic capital market.IV - OPERATIONS IN UNITS OF COLLECTIVE INVESTMENT UNDERTAKINGS (¹) (a)  Units of undertakings for collective investment in securities normally dealt in on the capital market (shares, other equities and bonds).(b)  Units of undertakings for collective investment in securities or instruments normally dealt in on the money market.(c)  Units of undertakings for collective investment in other assets.A - Transactions in units of collective investment undertakings1.  Acquisition by non-residents of units of national undertakings dealt in on a stock exchange.2.  Acquisition by residents of units of foreign undertakings dealt in on a stock exchange.3.  Acquisition by non-residents of units of national undertakings not dealt in on a stock exchange.4.  Acquisition by residents of units of foreign undertakings not dealt in on a stock exchange.B - Administration of units of collective investment undertakings to the capital market(i)  Introduction on a stock exchange.(ii)  Issue and placing on a capital market.1.  Admission of units of national collective investment undertakings to a foreign capital market.2.  Admission of units of foreign collective investment undertakings to the domestic capital market.V   OPERATIONS IN SECURITIES AND OTHER INSTRUMENTS NORMALLY DEALT IN ON THE MONEY MARKET (¹) A - Transactions in securities and other instruments on the money market1.  Acquisition by non-residents of domestic money market securities and instruments.2.  Acquisition by residents of foreign money market securities and instruments.B - Admission of securities and other instruments to the money market(i)  Introduction on a recognized money market (*).(ii)  Issue and placing on a recognized money market.1.  Admission of domestic securities and instruments to a foreign money market.2.  Admission of foreign securities and instruments to the domestic money market.(¹) See Explanatory Notes below.VI - OPERATIONS IN CURRENT AND DEPOSIT ACCOUNTS WITH FINANCIAL INSTITUTIONS (¹) A - Operations carried out by non-residents with domestic financial institutionsB - Operations carried out by residents with foreign financial institutionsVII - CREDITS RELATED TO COMMERCIAL TRANSACTIONS OR TO THE PROVISION OF SERVICES IN WHICH A RESIDENT IS PARTICIPATING (¹) 1.  Short-term (less than one year).2.  Medium-term (from one to five years).3.  Long-term (five years or more).A - Credits granted by non-residents to residentsB - Credits granted by residents to non-residentsVIII - FINANCIAL LOANS AND CREDITS (not included under I, VII and XI) (¹) 1.  Short-term (less than one year).2.  Medium-term (from one to five years).3.  Long-term (five years or more).A - Loans and credits granted by non-residents to residentsB - Loans and credits granted by residents to non-residentsIX - SURETIES, OTHER GUARANTEES AND RIGHTS OF PLEDGE A - Granted by non-residents to residentsB - Granted by residents to non-residentsX - TRANSFERS IN PERFORMANCE OF INSURANCE CONTRACTS A - Premiums and payments in respect of life assurance1.  Contracts concluded between domestic life assurance companies and non-residents.2.  Contracts concluded between foreign life assurance companies and residents.B - Premiums and payments in respect of credit insurance1.  Contracts concluded between domestic credit insurance companies and non-residents.2.  Contracts concluded between foreign credit insurance companies and residents.C - Other transfers of capital in respect of insurance contractsXI - PERSONAL CAPITAL MOVEMENTS A - LoansB - Gifts and endowmentsC - DowriesD - Inheritances and legaciesE - Settlement of debts by immigrants in their previous country of residenceF - Transfers of assets constituted by residents, in the event of emigration, at the time of their installation or during their period of stay abroadG - Transfers, during their period of stay, of immigrants' savings to their previous country of residence(¹) See Explanatory Notes below.XII - PHYSICAL IMPORT AND EXPORT OF FINANCIAL ASSETS A - SecuritiesB - Means of payment of every kindXIII - OTHER CAPITAL MOVEMENTS A - Death dutiesB - Damages (where these can be considered as capital)C - Refunds in the case of cancellation of contracts and refunds of uncalled-for payments (where these can be considered as capital)D - Authors' royalties: patents, designs, trade marks and inventions (assignments and transfers arising out of such assignments)E - Transfers of the monies required for the provision of services (not included under VI)F - MiscellaneousEXPLANATORY NOTES For the purposes of this Nomenclature and the Directive only, the following expressions have the meanings assigned to them respectively:Direct investmentsInvestments of all kinds by natural persons or commercial, industrial or financial undertakings, and which serve to establish or to maintain lasting and direct links between the person providing the capital and the entrepreneur to whom or the undertaking to which the capital is made available in order to carry on an economic activity. This concept must therefore be understood in its widest sense.The undertakings mentioned under I-1 of the Nomenclature include legally independent undertakings (wholly-owned subsidiaries) and branches.As regards those undertakings mentioned under I-2 of the Nomenclature which have the status of companies limited by shares, there is participation in the nature of direct investment where the block of shares held by a natural person of another undertaking or any other holder enables the shareholder, either pursuant to the provisions of national laws relating to companies limited by shares or otherwise, to participate effectively in the management of the company or in its control.Long-term loans of a participating nature, mentioned under I-3 of the Nomenclature, means loans for a period of more than five years which are made for the purpose of establishing or maintaining lasting economic links. The main examples which may be cited are loans granted by a company to its subsidiaries or to companies in which it has a share and loans linked with a profit-sharing arrangement. Loans granted by financial institutions with a view to establishing or maintaining lasting economic links are also included under this heading.Investments in real estatePurchases of buildings and land and the construction of buildings by private persons for gain or personal use. This category also includes rights of usufruct, easements and building rights.Introduction on a stock exchange or on a recognized money marketAccess - in accordance with a specified procedure - for securities and other negotiable instruments to dealings, whether controlled officially or unofficially, on an officially recognized stock exchange or in an officially recognized segment of the money market.Securities dealt in on a stock exchange (quoted or unquoted)Securities the dealings in which are controlled by regulations, the prices for which are regularly published, either by official stock exchanges (quoted securities) or by other bodies attached to a stock exchange - e.g. committees of banks (unquoted securities).Issue of securities and other negotiable instrumentsSale by way of an offer to the public.Placing of securities and other negotiable instrumentsThe direct sale of securities by the issuer of by the consortium which the issuer has instructed to sell them, with no offer being made to the public.Domestic or foreign securities and other instrumentsSecurities according to the country in which the issuer has his principal place of business. Acquisition by residents of domestic securities and other instruments issued on a foreign market ranks as the acquisition of foreign securities.Shares and other securities of a participating natureIncluding rights to subscribe to new issues of shares.BondsNegotiable securities with a maturity of two years or more from issue for which the interest rate and the terms for the repayment of the principal and the payment of interest are determined at the time of issue.Collective investment undertakings Untertakings:- the object of which is the collective investment in transferable securities or other assets of the capital they raise and which operate on the principle of risk-spreading, and- the units of which are, at the request of holders, under the legal, contractual or statutory conditions governing them, repurchased or redeemed, directly or indirectly, out of those undertakings' assets. Action taken by a collective investment undertaking to ensure that the stock exchange value of its units does not significantly vary from their net asset value shall be regarded as equivalent to such repurchase or redemption.Such undertakings may be constituted according to law either under the law of contract (as common funds managed by management companies) or trust law (as unit trusts) or under statute (as investment companies).For the purposes of the Directive, 'common funds' shall also include unit trusts.Securities and other instruments normally dealt in on the money marketTreasury bills and other negotiable bills, certificates of deposit, bankers' acceptances, commercial paper and other like instruments.Credits related to commercial transactions or to the provision of servicesContractual trade credits (advances or payments by instalment in respect of work in progress or on order and extended payment terms, whether or not involving subscription to a commercial bill) and their financing by credits provided by credit institutions. This category also includes factoring operations.Financial loans and creditsFinancing of every kind granted by financial institutions, including financing related to commercial transactions or to the provision of services in which no resident is participating.This category also includes mortgage loans, consumer credit and financial leasing, as well as back-up facilities and other note-issuance facilities.Residents or non-residentsNatural and legal persons according to the definitions laid down in the exchange control regulations in force in each Member State.Proceeds of liquidation (of investments, securities, etc.)Proceeds of sale including any capital appreciation, amount of repayments, proceeds of execution of judgements, etc.Natural or legal personsAs defined by the national rules.Financial institutionsBanks, savings banks and institutions specializing in the provision of short-term, medium-term and long-term credit, and insurance companies, building societies, investment companies and other institutions of like character.Credit institutionsBanks, savings banks and institutions specializing in the provision of short-term, medium-term and long-term credit.ANNEX II >TABLE>ANNEX III  REFERRED TO IN ARTICLE 5 OF THE DIRECTIVE >TABLE>>TABLE>>TABLE>ANNEX IV REFERRED TO IN ARTICLE 6 (2) OF THE DIRECTIVE I. The Portuguese Republic may continue to apply or reintroduce, until 31 December 1990 restrictions existing on the date of notification of the Directive on capital movements given in List I below:>TABLE>II. The Kingdom of Spain and the Portuguese Republic may continue to apply or reintroduce, until 31 December 1990 and 31 December 1992 respectively, restrictions existing on the date of notification of the Directive on capital movements given in List II below:>TABLE>Nature of operationHeadingIII. The Hellenic Republic, the Kingdom of Spain, Ireland and the Portuguese Republic may, until 31 December 1992, continue to apply or reintroduce restrictions existing at the date of notification of the Directive on capital movements given in List III below:>TABLE>IV. The Hellenic Republic, the Kingdom of Spain, Ireland and the Portuguese Republic may, until 31 December 1992, defer liberalization of the capital movements given in List IV below:>TABLE>ANNEX V Since the dual exchange market system, as operated by the Kingdom of Belgium and the Grand Duchy of Luxembourg, has not had the effect of restricting capital movements but nevertheless constitutes an anomaly in the EMS and should therefore be brought to an end in the interests of effective implementation of the Directive and with a view to strengthening the European Monetary System, these two Member States undertake to abolish it by 31 December 1992. They also undertake to administer the system, until such time as it is abolished, on the basis of procedures which will still ensure the de facto free movement of capital on such conditions that the exchange rates ruling on the two markets show no appreciable and lasting differences.