Subject matter and scope

1. This Regulation lays down harmonised rules ensuring the participation of citizens of the Union in the capital value created by hyper-automated undertakings operating in the internal market.

2. The participation referred to in paragraph 1 shall be of such scale that, on the designations made under Article 3 and the methodology laid down in Annex II, the aggregate value of the holdings attributable to each citizen's entitlement is capable of reaching, within one generation of the first designations and in constant prices, an amount of the order of six months of the median equivalised disposable income in the Union as published by the Commission (Eurostat). Distributions under Article 10 shall remain the property income of the holders and shall be governed solely by Article 8 and Annex II. The Commission shall assess progress against this objective in each report under Article 14(2), and where the assessment shows the objective to be manifestly unattainable or manifestly exceeded, the report shall be accompanied, where appropriate, by a proposal to amend the percentage laid down in Article 5(2) or the thresholds laid down in Article 3(2).

3. To that end, this Regulation establishes:
(a) criteria and a procedure for the designation of covered undertakings;
(b) an obligation on covered undertakings to issue citizens' capital warrants to the European Citizens' Capital Reserve;
(c) the European Citizens' Capital Reserve and the rules governing its holdings and conduct;
(d) an individual entitlement of citizens of the Union to distributions from the Reserve, administered through national vehicles;
(e) rules protecting the Reserve and individual entitlements.

4. This Regulation applies to undertakings offering goods or services in the internal market, irrespective of their place of establishment.

5. This Regulation is without prejudice to Directive (EU) 2016/2341 and to Regulation (EU) 2019/1238, save as expressly provided in Article 11.