### the programme should be implemented through projects reinforcing essential digital capacities and their wide use . this should involve co - investments with member states and , when needed , the private sector . this should notably require reaching a critical mass in procurement to obtain better value for money and guarantee that suppliers in europe stay at the forefront of technology advancements . ### the programme should be implemented through projects reinforcing essential digital capacities and the union ' s strategic autonomy . this should involve co - investments with member states and , when needed , the private sector . this should notably require reaching a critical mass in procurement to obtain better value for money and guarantee that suppliers in europe stay at the forefront of technology advancements .


### the programme ' s actions should be used to address market failures or sub - optimal investment situations , in a proportionate manner , without duplicating or crowding out private financing and have a clear european added value . ### the programme ' s actions should be used to address market failures and sub - optimal investment situations and look ahead to the next stages of digital transformation , in a proportionate manner , without duplicating or crowding out private financing and have a clear european added value .


### developing capacity related to artificial intelligence is a crucial driver for the digital transformation of industry and also of the public sector . ever more autonomous robots are used in factories , deep sea application , homes , cities and hospitals . commercial artificial intelligence platforms have moved from testing to real applications in health and environment ; all major car manufacturers are developing self - driving cars , and machine learning techniques are at the heart of all main web platforms and big data applications . ### developing capacity related to artificial intelligence is a crucial driver for the digital transformation of industry and also of the public sector . ever more autonomous robots are used in factories , the logistics chain , deep sea application , homes , cities and hospitals . commercial artificial intelligence platforms have moved from testing to real applications in health and environment ; all major car manufacturers are developing self - driving cars , and machine learning techniques are at the heart of all main web platforms and big data applications .


### cybersecurity is a challenge for the whole union that cannot continue to be addressed only with fragmented national initiatives . europe ' s cybersecurity capacity should be reinforced to endow europe with the necessary capacities to protect its citizens and businesses from cyber threats . in addition consumers should be protected when using connected products that can be hacked and compromise their safety . this should be achieved together with member states and private sector by developing , and ensuring coordination between , projects reinforcing europe ' s capacities in cybersecurity and ensuring the wide deployment of latest cybersecurity solutions across the economy , as well as by aggregating the competences in this field to ensure critical mass and excellence . ### cybersecurity is a challenge for the whole union that cannot continue to be addressed only with fragmented national initiatives . europe ' s cybersecurity capacity should be reinforced to endow europe with the necessary capacities to protect its citizens , its strategic networks and its businesses from cyber threats . in addition consumers should be protected when using connected products that can be hacked and compromise their safety . this should be achieved together with member states and private sector by developing , and ensuring coordination between , projects reinforcing europe ' s capacities in cybersecurity and ensuring the wide deployment of the latest cybersecurity solutions across the economy , as well as by aggregating the competences in this field to ensure critical mass and excellence .


### trust is a prerequisite for the digital single market to function . cybersecurity technologies such as digital identities , cryptography or intrusion detection , and their application in areas such as finance , industry 4 . 0 , energy , transportation , healthcare , or e - government are essential to safeguard the security and trust of online activity and transactions by both citizens , public administrations , and companies . ### trust is a prerequisite for the digital single market to function . cybersecurity technologies such as digital identities , cryptography or intrusion detection , and their application in areas such as finance , industry 4 . 0 , logistics , energy , transportation , healthcare , or e - government are essential to safeguard the security and trust of online activity and transactions by both citizens , public administrations , and companies .


### the advanced digital technologies supported by this programme , such as high performance computing , cybersecurity and artificial intelligence are now sufficiently mature to move beyond the research arena and be deployed , implemented and scaled - up at union level . just as the deployment of these technologies require a union response so does the skills dimension . training opportunities in advanced digital skills need to be scaled up , increased and made accessible throughout the eu . failing this could impede the smooth deployment of advanced digital technologies and hamper the overall competitiveness of union ' s economy . the actions supported by this programme are complementary to those supported by the esf , erdf and horizon europe programmes . ### the advanced digital technologies supported by this programme , such as high performance computing , cybersecurity and artificial intelligence are now sufficiently mature to move beyond the research arena and be deployed , implemented and scaled - up at union level . just as the deployment of these technologies requires a union response so does the skills dimension . training opportunities in advanced digital skills need to be scaled up , increased and made accessible throughout the eu , in particular for employees in the sectors that will be most affected by digital innovations . failing this could impede the smooth deployment of advanced digital technologies and hamper the overall competitiveness of the union ' s economy . the actions supported by this programme are complementary to those supported by the esf , erdf , cef and horizon europe programmes .


### reinforce europe ' s capacities in key digital technology areas through large - scale deployment , ### reinforce the union ' s capacities and strategic autonomy in key digital technology areas through large - scale deployment ,


### the performance reporting system shall ensure that data for monitoring programme implementation and results are collected efficiently , effectively , and in a timely manner . to that end , proportionate reporting requirements shall be imposed on recipients of union funds and member states . ### the performance reporting system shall ensure that data for monitoring programme implementation and results are suitable for an in - depth analysis of the progress achieved and the difficulties encountered and are collected efficiently , effectively , and in a timely manner . to that end , proportionate reporting requirements shall be imposed on recipients of union funds and member states .


### evaluations shall be carried out in a timely manner to feed into the decision - making process . ### evaluations shall be carried out in a timely manner to feed into the decision - making process . the evaluations shall also provide for a qualitative assessment of the progress towards achieving the general objectives set out in article 3 .


### the investment environment within the union should be improved by removing barriers to investment , reinforcing the single market and by enhancing regulatory predictability . the work of the efsi , and investments across europe generally , should benefit from this accompanying work . ### the investment environment within the eu should be improved by removing barriers to investment , such as obstacles to ppps that remain at national and eu level , by reinforcing the single market and by enhancing regulatory predictability . with the view to mobilising private companies and supporting the development of ppps , it should be ensured that there is no discrimination depending on the management of the projects , be it private or public . the work of the efsi , and investment across europe generally , should benefit from this accompanying work .


### many small and medium enterprises , as well as mid - cap companies , across the union require assistance to attract market financing , especially as regards investments that carry a greater degree of risk . the efsi should help these businesses to overcome capital shortages by allowing the eib and the european investment fund to provide direct and indirect equity injections , as well as to provide guarantees for high - quality securitisation of loans , and other products that are granted in pursuit of the aims of the efsi . ### many small and medium enterprises , as well as mid - cap companies , across the union require assistance to attract market and private equity and venture capital financing , especially as regards investments that carry a greater degree of risk . the efsi should help these businesses to overcome capital shortages by allowing the eib and the european investment fund to provide direct and indirect equity injections , as well as to provide guarantees for high quality securitisation of loans , and other products that are granted in pursuit of the aims of the efsi .


### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use . ### the efsi should target projects delivering high societal and economic value . in particular , the efsi should target projects that promote structural job creation , long - term growth and competitiveness . the efsi should support a wide range of financial products , including equity , debt or guarantees , to best accommodate the needs of the individual project . this wide range of products should allow the efsi to adapt to market needs whilst encouraging private investment in the projects . the efsi should not be a substitute for private market finance but should instead catalyse private finance by addressing market failures so as to ensure the most effective and strategic use of public money . the requirement for consistency with state aid principles should contribute to such effective and strategic use .


### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . ### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee shall carry out its responsibilities fully independently and in line with the criteria set out in this regulation , as this is key to protect the eib´s credit rating and ensure the trust and participation of the private sector in the investment plan . the investment committee shall not take any instructions from third entities regarding the selection of individual projects to be funded by efsi , but shall be accountable to a steering board of the efsi , who supervises the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi shall support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies .


### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union . ### alongside the financing operations that will be conducted through the efsi , a european investment advisory hub should be created . the eiah should provide strengthened support to member states and their authorities , private investors and investment platforms at all levels for project development and preparation across the union , by building on the expertise of the commission , the eib , national promotional banks and the managing authorities of the european structural and investment funds . this should establish a single point of entry for questions related to technical assistance for investments within the union where possible in a decentralised manner and without altering the objective of existing technical assistance programmes or affect the quality or capacity of these in carrying out their dedicated tasks . in order to ensure sectorial diversification of beneficiaries of financial instruments as well as to encourage geographical diversification across the member states , the steering board through the eiah should provide support to member states and project promoter in developing an appropriate pipeline of projects that could be considered for project financing . in the transport sector , the eiah should closely work with the commission with the support of the innovation and networks executive agency , in particular as regards compliance with the eu policy on transport infrastructure . in this perspective , the eiah should have sectorial knowledge .


### in order to cover the risks related to the eu guarantee to the eib , a guarantee fund should be established . the guarantee fund should be constituted by a gradual payment from the union budget . the guarantee fund should subsequently also receive revenues and repayments from projects that benefit from efsi support and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the eib . ### in order to cover the risks related to the eu guarantee to the eib , a guarantee fund should be established . the guarantee fund should be constituted by a gradual payment from the union budget . the guarantee fund should subsequently also receive revenues and repayments from projects that benefit from efsi support , returns on guarantee fund resources invested and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the eib .


### in order to cover the risks related to the eu guarantee to the eib , a guarantee fund should be established . the guarantee fund should be constituted by a gradual payment from the union budget . the guarantee fund should subsequently also receive revenues and repayments from projects that benefit from efsi support and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the eib . ### in order to cover the risks related to the eu guarantee to the eib , a guarantee fund should be established . the guarantee fund should be constituted by a gradual contribution from the union budget . the guarantee fund should subsequently also receive revenues and repayments from projects that benefit from efsi support and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the eib .


### to partially finance the contribution from the union budget , the available envelopes of the horizon 2020 – the framework programme for research and innovation 2014 - 2020 , provided by regulation no 1291 / 2013 of the european parliament and of the council2 , and the connecting europe facility , provided by regulation no 1316 / 2013 of the european parliament and of the council3 , should be reduced . those programmes serve purposes that are not replicated by the efsi . however , the reduction of both programmes to finance the guarantee fund is expected to ensure a greater investment in certain areas of their respective mandates than is possible through the existing programmes . the efsi should be able to leverage the eu guarantee to multiply the financial effect within those areas of research , development and innovation and transport , telecommunications and energy infrastructure compared to if the resources had been spent via grants within the planned horizon 2020 and connecting europe facility programmes . it is , therefore , appropriate to redirect part of the funding presently envisaged for those programmes to the benefit of efsi . __________________ 2 regulation no 1291 / 2013 of the european parliament and of the council of 11 december 2013 establishing horizon 2020 - the framework programme for research and innovation and repealing decision no 1982 / 2006 / ec . 3 regulation no 1316 / 2013 of the european parliament and of the council of 11 december 2013 establishing the connecting europe facility , amending regulation no 913 / 2010 and repealing regulations no 680 / 2007 and no 67 / 2010 . ### to partially finance the contribution from the union budget , there should be a reduction to the envelopes of the different european structural and investment funds , provided by regulation no 1303 / 2013 of the european parliament and of the council of 17 december 2013 laying down common provisions on the european regional development fund , the european social fund , the cohesion fund , the european agricultural fund for rural development and the european maritime and fisheries fund and laying down general provisions on the european regional development fund , the european social fund , the cohesion fund and the european maritime and fisheries fund and repealing council regulation no 1083 / 2006 . __________________ 2 regulation no 1291 / 2013 of the european parliament and of the council of 11 december 2013 establishing horizon 2020 - the framework programme for research and innovation and repealing decision no 1982 / 2006 / ec . 3 regulation no 1316 / 2013 of the european parliament and of the council of 11 december 2013 establishing the connecting europe facility , amending regulation no 913 / 2010 and repealing regulations no 680 / 2007 and no 67 / 2010 .


### the efsi agreement shall be open to accession by member states . subject to the consent of existing contributors , the efsi agreement shall also be open to accession by other third parties , including national promotional banks or public agencies owned or controlled by member states , and private sector entities . ### the efsi agreement shall be open to accession by member states , under the terms laid out in the efsi agreement . subject to the consent of existing contributors , the efsi agreement shall also be open to accession by other third parties , including national promotional banks or public agencies owned or controlled by member states , and private sector entities . the member states and other third parties may not take part in the efsi governance structure .


### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . ### the purpose of the efsi shall be to support investments that are strategic for the union and to ensure increased and fair access to financing for companies having up to 3000 employees , with a particular focus on small and medium - sized enterprises as well as innovative start - ups , through the supply of risk bearing capacity to the eib .


### the investment committee shall be composed of six independent experts and the managing director . independent experts shall have a high level of relevant market experience in project finance and be appointed by the steering board for a renewable fixed term of three years . ### the experts of the investment committee shall be appointed following an open and transparent selection procedure . in appointing the experts to the investment committee , the steering board shall ensure that the composition of the investment committee is diversified , so as to ensure that it has a wide knowledge of the sectors covered in article 2a and geographic markets within the union . the steering board of the efsi shall supervise the fulfilment of the efsi ' s objectives . when participating in the activities of the investment committee its members shall perform their duties impartially and in the interests of the efsi . when implementing the guidelines adopted by the steering board and taking decisions on the use of the eu guarantee , they shall not seek nor take instructions from the eib , the union institutions , the member states or any other public or private body . adequate organisational arrangements shall be in place to ensure operational independence of the investment committee , without prejudice to the provision of analytical , logistical and administrative support by the staff of the eib to the investment committee .


### the efsi agreement shall provide that the efsi shall have an investment committee , which shall be responsible for examining potential operations in line with the efsi investment policies and approving the support of the eu guarantee for operations in line with article 5 , irrespective of their geographic location . ### the efsi agreement shall provide that the efsi shall have an investment committee . the investment committee shall be responsible for examining potential operations in line with the efsi investment policies and approving the support of the eu guarantee for operations : in line with article 5 ; in line with the overall objectives of regulation no 1316 / 2013 and regulation no 1315 / 2013 as well as the ten - t annual work programmes ; with a proven economic , societal and sustainable added value regarding the promotion of jobs , skills , innovation and competiveness in the union , and which would not have been possible to carry out with the existing union funds and instruments ; irrespective of their geographic location within the union .


### decisions of the investment committee shall be taken by simple majority . ### the decisions of the investment committee shall be taken by simple majority . they shall be independent , free from any undue interference , and publicly accessible .


### the union shall provide a guarantee to the eib for financing or investment operations carried out within the union covered by this regulation . the eu guarantee shall be granted as a guarantee on demand in respect of instruments referred to in article 6 . ### the union shall provide an irrevocable and unconditional guarantee to the eib via the efsi for financing or investment operations carried out within the union covered by this regulation . the eu guarantee shall be granted as a guarantee on demand in respect of instruments referred to in article 6 . the guarantee shall be available for projects in third countries provided that these projects involve cross - border cooperation with a member state and that there is a written agreement between the countries concerned by the project .


### the union shall provide a guarantee to the eib for financing or investment operations carried out within the union covered by this regulation . the eu guarantee shall be granted as a guarantee on demand in respect of instruments referred to in article 6 . ### the union shall provide a guarantee to the eib for financing or investment operations carried out within the union covered by this regulation . the eu guarantee shall also be provided to national promotional banks or institutions , in accordance with article 58 of regulation no 966 / 2012 , and investment platforms . the eu guarantee shall be granted as a guarantee on demand in respect of the eligible instruments referred to in article 6 of this regulation . 2 . contingent legal claims against the commission by efsi beneficiaries shall be limited to the eu guarantee .


### eib loans , guarantees , counter - guarantees , capital market instruments , any other form of funding or credit enhancement instrument , equity or quasi - equity participations . these instruments shall be granted , acquired or issued for the benefit of operations carried out in the union , including cross - border operations between a member state and a third country , in compliance with this regulation and where eib financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled ; ### eib loans , guarantees , counter - guarantees , capital market instruments , any other form of funding or credit enhancement instrument , equity &#160 ; or quasi - equity participations . these instruments shall be granted , acquired or issued for the benefit of operations carried out in the union , including cross - border operations between a member state and a third country , in compliance with this regulation and where eib financing has been granted in accordance with a signed agreement which has neither expired nor been cancelled ;


### the resources of the guarantee fund provided to it under paragraph 2 shall be directly managed by the commission and invested in accordance with the principle of sound financial management and follow appropriate prudential rules . ### the resources of the guarantee fund provided to it under paragraph 2 shall be directly managed by the commission and invested in accordance with the principles such as sound financial management , transparency , proportionality , non - discrimination , equal treatment , additionality , non - distortion of competition , alignment of interest between the commission and the eib and follow appropriate prudential rules .


### the target amount shall initially be met by the gradual payment of resources referred to in paragraph 2 . if there have been calls on the guarantee during the initial constitution of the guarantee fund , endowments to the guarantee fund provided for in points , and of paragraph 2 shall also contribute to meet the target amount up to an amount equal to the calls on the guarantee . ### the target amount shall be set at 25% of the union ' s total guarantee obligations . the target amount shall initially be met by the gradual payment of resources referred to in paragraph 2 . if there have been calls on the guarantee during the initial constitution of the guarantee fund , endowments to the guarantee fund provided for in points , and of paragraph 2 shall also contribute to meet the target amount up to an amount equal to the calls on the guarantee .


### an assessment of the financial benefit transferred to beneficiaries of eib financing and investment operations on an aggregated basis ; ### an assessment of the financial amount transferred to beneficiaries and an assessment of eib financing and investment operations on an aggregated basis ;


### for the purposes of the commission ' s accounting and reporting of the risks covered by the eu guarantee and management of the guarantee fund , the eib , in cooperation with the eif as appropriate , shall provide the commission every year : ### for the purposes of the commission ' s accounting and reporting of the risks covered by the eu guarantee and management of the guarantee fund , the eib , in cooperation with the eif as appropriate , shall provide the commission and the court of auditors every year :


### the outstanding financial obligation for the eu concerning the guarantees provided towards eib financing and investment operations broken down by the individual operations ; ### the outstanding financial obligation for the union concerning the guarantees provided towards eib financing and investment operations under this regulation broken down by the individual operations ;


### interoperability has been a key factor to success in the area of customs , taxation and excise duties , in operating trans - european ict systems spanning all member states supporting interoperable business services funded by the fiscalis 2013 and customs 2013 programmes , implemented and operated by the commission and national administrations . assets created under fiscalis 2013 and customs 2013 programmes are available for sharing and re - use from other policy areas . ### interoperability has been a key factor to success in the area of customs , taxation and excise duties , in operating trans - european ict systems spanning all member states supporting interoperable business services funded by the fiscalis 2013 and customs 2013 programmes , implemented and operated by the commission and national administrations . assets created under fiscalis 2013 and customs 2013 programmes are available for sharing and re - use from other policy areas . in addition , member states have committed themselves , in the council conclusions on the governance forum of the customs union , to develop a strategy of jointly managed and operated it systems in all customs - related areas .


### citizens and enterprises should also benefit from common , re - usable and interoperable front - office services resulting from better integration of processes and exchange of data through the european public administrations’ back - offices . ### citizens and enterprises should also benefit from common , re - usable and interoperable front - office services resulting from better integration of processes and exchange of data through the european public administrations’ back - offices . the ' once only ' principle , for supplying data only once to public administrations , should be promoted to reduce the administrative burden on citizens and businesses . in addition , in order for citizens to have trust in e - services , solutions to provide secure communication through , in particular , e - authentication and encryption should be promoted .


### interoperability is directly connected with , and dependent on the use of , standards and common specifications . the isa2 programme should promote and , where appropriate , support the partial or full standardisation of existing interoperability solutions . this should be achieved in cooperation with other standardisation activities at union level , european standardisation organisations and other international standardisation organisations . ### the lack of interoperability often undermines the implementation of digital end - to - end services and the development of one - stop shops for businesses and citizens . interoperability is directly connected with , and dependent on the use of , open standards and common specifications . the isa2 programme should promote and , where appropriate , support the partial or full standardisation of existing interoperability solutions . this should be achieved in cooperation with other standardisation activities at union level , european standardisation organisations and other international standardisation organisations .


### the assessment of the ict implications of proposed or adopted union legislation ; ### the assessment of the ict implications of proposed or adopted union legislation , with , where appropriate , an assessment of the need to enlarge the scope and mandate of the eu agency for large scale it systems ;


### the assessment , update and promotion of existing common specifications and standards and the development , establishment and promotion of new common specifications and standards through the union’s standardisation platforms and in cooperation with european or international standardisation organisations as appropriate ; and ### the assessment , update and promotion of existing common specifications and standards and the development , establishment and promotion of new common specifications and open standards through the union’s standardisation platforms and in cooperation with european or international standardisation organisations as appropriate ; and


### reducing the negative impact of transport activities remains one of the main goals of the union ' s transport policy . council directive 92 / 106 / eec21 which establishes measures to encourage the development of combined transport , is the only legislative act of the union to directly incentivise the shift from road freight to lower emission transport modes such as inland waterways , maritime and rail . _________________ 21 council directive 92 / 106 / eec of 7 december 1992 on the establishment of common rules for certain types of combined transport of goods between member states . ### reducing the negative impact of transport activities remains one of the main goals of the union ' s transport policy . council directive 92 / 106 / eec21 which establishes measures to encourage the development of combined transport , is the only legislative act of the union to directly incentivise the shift from road freight to lower emission transport modes such as inland waterways , maritime and rail . in order to further reduce the negative externalities of road freight , research into , and the sharing of best practices between member states on solutions to better routing , network optimization , increases in load efficiency and the possibilities for the charging of external costs should be encouraged . _________________ 21 council directive 92 / 106 / eec of 7 december 1992 on the establishment of common rules for certain types of combined transport of goods between member states .


### directive 92 / 106 / eec should be simplified and its implementation improved by reviewing the economic incentives to combined transport , with the aim of encouraging the shift of goods from road transport to modes which are more environmentally friendly , safer , more energy efficient and cause less congestion . ### directive 92 / 106 / eec should be simplified and its implementation improved by reviewing the economic incentives to combined transport , with the aim of encouraging the shift of goods from road transport to modes which are more environmentally friendly , safer , more energy efficient and cause less congestion . in view of this , research on , and the sharing of , best practices on the shift from road to rail should be encouraged .


### the main infrastructure bottleneck hampering the shift from road freight to other modes of transport is at the transhipment terminal level . the current distribution and coverage of transhipment terminals in the union , at least along the existing ten - t core and comprehensive network , is insufficient yet the capacity of existing transhipment terminals is reaching its limit and will need to develop in order to cope with overall freight traffic growth . investing in transhipment terminal capacity may reduce overall transhipment costs , and hence produce a derived modal shift , as demonstrated in some member states . member states should therefore ensure , in coordination with the neighbouring member states and with the commission , that more combined transport transhipment terminals and transhipment capacity are constructed or made available to transport operators . this would incentivise the use of freight transport alternatives and increase modal shift , thus making combined transport operations more competitive than road transport alone . the increased coverage and capacity of transhipment terminals should , at the very minimum , be established along the existing ten - t core and comprehensive networks . there should be on average at least one suitable transhipment terminal for combined transport located no further than 150 km from any shipment location in the union . ### the main infrastructure bottleneck hampering the shift from road freight to other modes of transport is at the transhipment terminal level . the current distribution and coverage of transhipment terminals in the union , at least along the existing ten - t core and comprehensive network , is insufficient yet the capacity of existing transhipment terminals is reaching its limit and will need to develop in order to cope with overall freight traffic growth . investing in transhipment terminal capacity , network optimisation and the development of new transhipment techniques may reduce overall transhipment costs , and hence produce a derived modal shift , as demonstrated in some member states . member states should therefore ensure , in coordination with the neighbouring member states and with the commission , that more efficient combined transport transhipment terminals and transhipment capacity are constructed or made available to transport operators . this would incentivise the use of freight transport alternatives and increase modal shift , thus making combined transport operations more competitive than road transport alone . the increased coverage and capacity of transhipment terminals should , at the very minimum , be established along the existing ten - t core and comprehensive networks . there should be on average at least one suitable transhipment terminal for combined transport located no further than 150 km from any shipment location in the union .


### member states shall coordinate with neighbouring member states and with the commission and ensure that , when such measures are implemented , priority is given to ensuring a balanced and sufficient geographical distribution of suitable facilities in the union , and notably on the ten - t core and comprehensive networks , allowing that any location in the union is not situated at a distance farther than 150 km from such terminal . ### member states shall coordinate with neighbouring member states and with the commission and ensure that , when such measures are implemented , priority is given to ensuring a sufficient geographical distribution of suitable facilities in the union , and notably on the ten - t core and comprehensive networks , allowing that any location in the union is not situated at a distance farther than 150 km from such terminal .


### the seventh environment action programme18 confirms the union ' s long - term objective for air policy , to achieve levels of air quality that do not give rise to significant negative impacts on and risks to human health and the environment , and calls , to that end , for full compliance with the current air quality legislation of the union , post - 2020 strategic targets and actions , enhanced efforts in areas where the population and ecosystems are exposed to high levels of air pollutants , and reinforced synergies between air quality legislation and union ' s policy objectives set for climate change and biodiversity in particular . ––––––––––––––––––––––– 18 proposal for a decision of the european parliament and of the council on a general union environment action programme to 2020 ' living well , within the limits of our planet ' , com 710 , 29 . 11 . 2012 . ### the seventh environment action programme18 confirms the union ' s long - term objective for air policy , to achieve levels of air quality that do not give rise to significant negative impacts on and risks to human health and the environment , and calls , to that end , for full compliance with the current air quality legislation of the union , post - 2020 strategic targets and actions , enhanced efforts in areas where the population and ecosystems are exposed to high levels of air pollutants , and reinforced synergies between air quality legislation and union ' s policy objectives set for climate change and biodiversity in particular . the new common agricultural policy for the 2014 - 2020 period offers the possibility for member states to contribute to air quality with specific measures . future evaluation will provide a better understanding of the effects of these measures . ––––––––––––––––––––––– 18 decision no 1386 / 2013 / eu of the european parliament and of the council of 20 november 2013 on a general union environment action programme to 2020 ‘ living well , within the limits of our planet’ .


### in order to promote cost - effective achievement of the national emission reduction commitments and of the intermediate emission levels , member states should be entitled to account for emission reductions from international maritime traffic if emissions from that sector are lower than the levels of emissions that would result from compliance with union law standards , including the sulphur limits for fuels set in directive 1999 / 32 / ec of the council . 21 member states should also have the possibility to jointly meet their commitments and intermediate emission levels regarding methane and of making use of decision n°406 / 2009 / ec of the european parliament and of the council for so doing . 22 for the purpose of checking compliance with their national emission ceilings , emission reduction commitments and intermediate emission levels , member states could adjust their national emission inventories in view of improved scientific understanding and methodologies regarding emissions . the commission could object to the use of any of these flexibilities by a member state , should the conditions set out in this directive not be met . __________________ 21 council directive 1999 / 32 / ec of 26 april 1999 relating to a reduction in the sulphur content of certain liquid fuels and amending directive 93 / 12 / eec . 22 decision n°406 / 2009 / ec of the european parliament and of the council of 23 april 2009 on the effort of member states to reduce their greenhouse gas emissions to meet the community’s greenhouse gas emission reduction commitments up to 2020 . ### in order to promote cost - effective achievement of the national emission reduction commitments , member states have the possibility to jointly meet their commitments levels regarding methane and of making use of decision n°406 / 2009 / ec of the european parliament and of the council for so doing . 22 the commission could object to the use of this flexibility by a member state , should the conditions set out in this directive not be met . __________________ 21 council directive 1999 / 32 / ec of 26 april 1999 relating to a reduction in the sulphur content of certain liquid fuels and amending directive 93 / 12 / eec . 22 decision n°406 / 2009 / ec of the european parliament and of the council of 23 april 2009 on the effort of member states to reduce their greenhouse gas emissions to meet the community’s greenhouse gas emission reduction commitments up to 2020 .


### members states that intend to apply paragraphs 1 , 2 and 3 shall inform the commission by 30 september of the year preceeding the reporting year concerned . that information shall include the pollutants and sectors concerned and , where available , the magnitude of the impacts upon national emission inventories . ### member states that intend to apply paragraphs 1 and 3 shall inform the commission by 30 september of the year preceding the reporting year concerned . that information shall include the pollutants and sectors concerned and , where available , the magnitude of the impacts upon national emission inventories .


### the commission shall , every five years at least , report to the european parliament and the council on the progress on implementing this directive , including an assessment of its contribution to the achievement of the objectives of this directive . ### the commission shall , every 30 months from the implementation of this directive , report to the european parliament and the council on the progress on implementing this directive . in doing so it shall provide an assessment of : its contribution and members&#160 ; states ' efforts&#160 ; to achieving the objectives of this directive the progress of air pollutants’ emissions up to 2025 and 2030 . the progress of achieving the long terms objectives of air quality aims established in the 7th environment action programme . the exceeding of critical loads and levels as well as world health organisation air pollution guide values . member states uptake of eu funding available , which has been used to target air pollution reduction .


### any significant changes in the policy context , assessments , the programme or the implementation time table . ### reporting on any relevant changes in the policy context , assessments , programme or implementation timetable , including a description of any adjustment measures required as a consequence , so to ensure compliance with the legally binding national emission targets in this directive .


### directive 2010 / 13 / eu should remain applicable only to those services the principal purpose of which is the provision of programmes in order to inform , entertain or educate . the principal purpose requirement should be also considered to be met if the service has audiovisual content and form which is dissociable from the main activity of the service provider , such as stand - alone parts of online newspapers featuring audiovisual programmes or user - generated videos where those parts can be considered dissociable from their main activity . social media services are not included , except if they provide a service that falls under the definition of a video - sharing platform . a service should be considered to be merely an indissociable complement to the main activity as a result of the links between the audiovisual offer and the main activity . as such , channels or any other audiovisual services under the editorial responsibility of a provider may constitute audiovisual media services in themselves , even if they are offered in the framework of a video - sharing platform which is characterised by the absence of editorial responsibility . in such cases , it will be up to the providers with editorial responsibility to abide by the provisions of this directive . ### directive 2010 / 13 / eu should remain applicable only to those services which are intended for reception by , and which could have a clear impact on , a significant proportion of the general public and the principal purpose of which is the provision of programmes in order to inform , entertain or educate . the principal purpose requirement should be also considered to be met if the service has audiovisual content and form which is dissociable from the main activity of the service provider , such as stand - alone parts of online newspapers featuring audiovisual programmes or user - generated videos where those parts can be considered dissociable from their main activity . social media services are not included , except if they provide a service that falls under the definition of a video - sharing platform . similarly , audiovisual media services that are not primarily economic in their purpose and do not compete with television broadcasting , instead , for example , providing and distributing the audiovisual content of private users for sharing in communities of interest should not be included . a service should be considered to be merely an indissociable complement to the main activity as a result of the links between the audiovisual offer and the main activity . as such , channels or any other audiovisual services under the editorial responsibility of a provider may constitute audiovisual media services in themselves , even if they are offered in the framework of a video - sharing platform which is characterised by the absence of editorial responsibility . in such cases , it will be up to the providers with editorial responsibility to abide by the provisions of this directive .


### product placement should not be admissible in news and current affairs programmes , consumer affairs programmes , religious programmes and programmes with a significant children’s audience . in particular , evidence shows that product placement and embedded advertisements can affect children’s behaviour as children are often not able to recognise the commercial content . there is thus a need to continue to prohibit product placement in programmes with a significant children’s audience . consumer affairs programmes are programmes offering advice to viewers , or including reviews on the purchase of products and services . allowing product placement in such programmes would blur the distinction between advertising and editorial content for viewers who may expect a genuine and honest review of products or services in such programmes . ### product placement should not be admissible in news and current affairs programmes , consumer affairs programmes , religious programmes and programmes that are primarily produced for and aimed at children . in particular , evidence shows that product placement and embedded advertisements can affect children’s behaviour as children are often not able to recognise the commercial content . there is thus a need to continue to prohibit product placement in children´s programmes , understood as programmes that are produced for and aimed at children . consumer affairs programmes are programmes offering advice to viewers , or including reviews on the purchase of products and services . allowing product placement in such programmes would blur the distinction between advertising and editorial content for viewers who may expect a genuine and honest review of products or services in such programmes .


### in order to ensure adequate levels of investment on european works , member states should be able to impose financial obligations to on - demand service providers established on their territory . those obligations can take the form of direct contributions to the production of and acquisition of rights in european works . the member states could also impose levies payable to a fund , on the basis of the revenues made with on - demand services that are provided in and targeted towards their territory . this directive clarifies that , given the direct link between financial obligations and member states ' different cultural policies , member states are also allowed to impose such financial obligations on providers of on - demand services established in another member state which are targeted towards its territory . in this case financial obligations should only be charged on the revenues generated through the audience in that member state . ### in order to ensure adequate levels of investment on european works , member states may be able to impose financial obligations to on - demand service providers established on their territory . those obligations can take the form of direct contributions to the production of and acquisition of rights in european works . in this case financial obligations should only be charged on the revenues generated through the audience in that member state .


### in order to ensure that obligations on promotion of european works do not undermine market development and to allow for the entry of new players in the market , companies with no significant presence on the market should not be subject to such requirements . this is in particular the case for companies with a low turnover and low audiences and small and micro enterprises as defined in commission recommendation 2003 / 361 / ec33 . it could also be inappropriate to impose such requirements in cases where – given the nature or theme of the on - demand audiovisual media services– they would be impracticable or unjustified . __________________ 33 commission recommendation 2003 / 361 / ec of 6 may 2003 concerning the definition of micro , small and medium - sized enterprises . ### in order to ensure that obligations on promotion of european works do not undermine market development and to allow for the entry of new players in the market , companies with no significant presence on the market should not be subject to such requirements . this is in particular the case for companies with a low turnover and low audiences and small and micro enterprises as defined in commission recommendation 2003 / 361 / ec33 . it should also be inappropriate to impose such requirements in cases where – given the nature or theme of the on - demand audiovisual media services– they would be impracticable or unjustified . __________________ 33 commission recommendation 2003 / 361 / ec of 6 may 2003 concerning the definition of micro , small and medium - sized enterprises .


### an important share of the content stored on video - sharing platforms is not under the editorial responsibility of the video - sharing platform provider . however , those providers typically determine the organisation of the content , namely programmes or user - generated videos , including by automatic means or algorithms . therefore , those providers should be required to take appropriate measures to protect minors from content that may impair their physical , mental or moral development and protect all citizens from incitement to violence or hatred directed against a group of persons or a member of such a group defined by reference to sex , race , colour , religion , descent or national or ethnic origin . ### an important share of the content stored on video - sharing platforms is not under the editorial responsibility of the video - sharing platform provider . however , where those providers determine the organisation of the content , namely programmes or user - generated videos , including by automatic means or algorithms , they should be encouraged to take appropriate measures to protect minors from content that may impair their physical , mental or moral development and protect all citizens from incitement to violence or hatred directed against a group of persons or a member of such a group defined by reference to sex , race , colour , religion , descent or national or ethnic origin in accordance with guidelines regularly issued by authorities to ensure the protection of user ' s fundamental rights .


### an important share of the content stored on video - sharing platforms is not under the editorial responsibility of the video - sharing platform provider . however , those providers typically determine the organisation of the content , namely programmes or user - generated videos , including by automatic means or algorithms . therefore , those providers should be required to take appropriate measures to protect minors from content that may impair their physical , mental or moral development and protect all citizens from incitement to violence or hatred directed against a group of persons or a member of such a group defined by reference to sex , race , colour , religion , descent or national or ethnic origin . ### an important share of the content stored on video - sharing platforms is not under the editorial responsibility of the video - sharing platform provider . however , some providers determine the organisation of the content , namely programmes or user - generated videos , including by automatic means or algorithms . therefore , those providers should be required to take appropriate measures to protect minors from content that may impair their physical or mental development and protect all citizens from incitement to violence or hatred directed against a group of persons or a member of such a group defined by reference to sex , race , colour , religion , descent or national or ethnic origin .


### this directive is without prejudice to the ability of member states to impose obligations to ensure discoverability and accessibility of content of general interest under defined general interest objectives such as media pluralism , freedom of speech and cultural diversity . such obligations should only be imposed where they are necessary to meet general interest objectives clearly defined by member states in conformity with union law . in this respect , member states should in particular examine the need for regulatory intervention against the results of the outcome of market forces . where member states decide to impose discoverability rules , they should only impose proportionate obligations on undertakings , in the interest of legitimate public policy considerations . ### this directive is without prejudice to the ability of member states to take measures to ensure discoverability and accessibility of content of general interest under defined general interest objectives such as media pluralism , freedom of speech and cultural diversity . such obligations should only be imposed where they are proportionate and meet general interest objectives clearly defined by member states in conformity with union law . in this respect , member states should in particular examine the need for regulatory intervention against the results of the outcome of market forces . where member states decide to introduce discoverability rules , they should only take proportionate measures with regard to undertakings , in the interest of legitimate public policy considerations .


### if a media service provider has its head office in one member state but editorial decisions on the audiovisual media service are taken in another member state , it shall be deemed to be established in the member state where the majority of the workforce involved in the pursuit of the audiovisual media service activity operates ; ; ### if a media service provider has its head office in one member state but editorial decisions on the audiovisual media service are taken in another member state , it shall be deemed to be established in the member state where the majority of the editorial decisions in the pursuit of the audiovisual media service activity are taken ;


### the commission shall decide within 3 months following the notification provided for in point of paragraph 4 . that period shall begin on the day following the receipt of a complete notification . the notification shall be considered as complete if , within 3 months from its receipt , or from the receipt of any additional information requested , the commission does not request any further information . ### the commission shall decide within 1 month following the electronic notification provided for in point of paragraph 4 . that period shall begin on the day following the receipt of a complete notification . the notification shall be considered as complete if , within 2 weeks from its receipt , or from the receipt of any additional information requested , the commission does not request any further information .


### the commission and erga shall encourage the exchange of best practices on self - and co - regulatory systems across the union . where appropriate , the commission shall facilitate the development of union codes of conduct . ; ### the commission and erga shall encourage the exchange of best practices on self - and co - regulatory systems across the union . where appropriate , the commission shall facilitate the development of union codes of conduct , based on best practices in member states ;


### without prejudice to articles 14 and 15 of directive 2000 / 31 / ec , member states shall ensure that video - sharing platform providers take appropriate measures to : ### without prejudice to articles 14 and 15 of directive 2000 / 31 / ec , video - sharing platform providers should be encouraged to take appropriate measures to :


### protect minors from content which may impair their physical , mental or moral development ; ### protect minors from content which may impair their physical or mental development ;


### what constitutes an appropriate measure for the purposes of paragraph 1 shall be determined in light of the nature of the content in question , the harm it may cause , the characteristics of the category of persons to be protected as well as the rights and legitimate interests at stake , including those of the video - sharing platform providers and the users having created and / or uploaded the content as well as the public interest . ### what constitutes an appropriate measure for the purposes of paragraph 1 shall be determined in light of the nature of the content in question , the harm it may cause , the characteristics of the category of persons to be protected as well as the rights and legitimate interests at stake , including those of the video - sharing platform providers and the users having created and / or uploaded the content as well as the public interest , the protection of freedom of expression and information .


### member states shall establish the necessary mechanisms to assess the appropriateness of the measures referred to in paragraphs 2 and 3 taken by video - sharing platform providers . member states shall entrust this task to the authorities designated in accordance with article 30 . ### member states , in cooperation with the commission and erga , shall regularly issue guidelines on the terms and conditions applicable to the removal of content referred to in point a ) and b ) of paragraph 1 , in accordance with national and union law and the charter of fundamental rights . member states shall establish the necessary mechanisms to assess the appropriateness of the measures referred to in paragraphs 2 and 3 taken by video - sharing platform providers in particular with regard to freedom of expression and information . member states shall entrust this task to the authorities designated in accordance with article 30 .


### member states shall establish the necessary mechanisms to assess the appropriateness of the measures referred to in paragraphs 2 and 3 taken by video - sharing platform providers . member states shall entrust this task to the authorities designated in accordance with article 30 . ### member states shall establish the necessary mechanisms to assess transparency , necessity , proportionality and the appropriateness of the measures referred to in paragraphs 2 and 3 taken by video - sharing platform providers . member states shall entrust this task to the authorities designated in accordance with article 30 .


### audiovisual commercial communications for alcoholic beverages shall not be aimed specifically at minors and shall not encourage immoderate consumption of such beverages ; ### paragraph 1 , point is amended as following : audiovisual commercial communications for alcoholic or high caffeine content beverages shall not be aimed specifically at minors and shall not encourage immoderate consumption of such beverages ;


### ‘ 1 . each member state may take measures in accordance with union law to ensure that broadcasters under its jurisdiction do not broadcast on an exclusive basis events which are regarded by that member state as being of major importance for society in such a way as to deprive a substantial proportion of the public in that member state of the possibility of following such events by live coverage or deferred coverage on free television . if it does so , the member state concerned shall draw up a list of designated events , national or non - national , which it considers to be of major importance for society . it shall do so in a clear and transparent manner in due time . in so doing the member state concerned shall also determine whether these events should be available by whole or partial live coverage or , where necessary or appropriate for objective reasons in the public interest , whole or partial deferred coverage . ’ ### article 14 , paragraph 1 is amended as follows : ‘ 1 . each member state may take measures in accordance with union law to ensure that broadcasters under its jurisdiction do not broadcast on an exclusive basis events which are regarded by that member state as being of major importance for society in such a way as to deprive a substantial proportion of the public in that member state of the possibility of following such events by live coverage or deferred coverage on free television . member states shall also require broadcasters under its jurisdiction to broadcast these events of major importance for society in an accessible way for those with functional limitations , including persons with disabilities . if it does so , the member state concerned shall draw up a list of designated events , national or non - national , which it considers to be of major importance for society . it shall do so in a clear and transparent manner in due time . in so doing the member state concerned shall also determine whether these events should be available by whole or partial live coverage or , where necessary or appropriate for objective reasons in the public interest , whole or partial deferred coverage . ’


### ‘ television advertising and teleshopping for alcoholic beverages shall comply with the following criteria : it may not be aimed specifically at minors or , in particular , depict minors consuming these beverages ; it shall not link the consumption of alcohol to enhanced physical performance or to driving ; it shall not create the impression that the consumption of alcohol contributes towards social or sexual success ; it shall not claim that alcohol has therapeutic qualities or that it is a stimulant , a sedative or a means of resolving personal conflicts ; it shall not encourage immoderate consumption of alcohol or present abstinence or moderation in a negative light ; it shall not place emphasis on high alcoholic content as being a positive quality of the beverages . ### article 22 is amended as follows : ‘ television advertising and teleshopping for alcoholic and high caffeine content beverages shall comply with the following criteria : it may not be aimed specifically at minors or , in particular , depict minors consuming these beverages ; it shall not link the consumption of alcohol or high caffeine content to enhanced physical performance or to driving ; it shall not create the impression that the consumption of alcohol or high caffeine content contributes towards social or sexual success ; it shall not claim that alcohol or high caffeine content has therapeutic qualities or that it is a stimulant , a sedative or a means of resolving personal conflicts ; it shall not encourage immoderate consumption of alcohol or high caffeine content or present abstinence or moderation in a negative light ; it shall not place emphasis on high alcoholic content or high caffeine content as being a positive quality of the beverages .


### to give opinions , when requested by the commission , on the issues envisaged in articles 2 , 6a , 9 , 9 and on any matter relating to audiovisual media services , in particular on the protection of minors and incitement to hatred . ' ; ### to give opinions , when requested by the commission , on the issues envisaged in articles 2 , 6a , 9 , 9 and on any matter relating to audiovisual media services , in particular on the protection of minors , incitement to hatred , media pluralism , protection of the freedom of expression and information . ' ;


### to facilitate more consistent application of penalties , in particular in intra - union infringements , widespread infringements and widespread infringements with a union dimension referred to in regulation 2017 / 2394 , common non - exhaustive criteria should be introduced for the application of fines . these criteria should include the cross - border nature of the infringement , namely whether the infringement has harmed consumers also in other member states . any redress provided by the trader to consumers for the harm caused should also be taken into account . repeated infringements by the same perpetrator shows a propensity to commit such infringements and is therefore a significant indication of the gravity of the conduct and , accordingly , of the need to increase the level of the penalty to achieve effective deterrence . the criterion of financial benefits gained , or losses avoided , due to the infringement is especially relevant where the national law provides for fines as penalties and sets the maximum fine as percentage of the trader’s turnover and where the infringement concerns only one or some of the markets in which the trader is operating . ### to facilitate more consistent application of penalties , in particular in intra - union infringements , widespread infringements and widespread infringements with a union dimension referred to in regulation 2017 / 2394 , common non - exhaustive criteria should be introduced for the application of fines . these criteria should include the cross - border nature of the infringement , namely whether the infringement has harmed consumers also in other member states . any redress provided by the trader to consumers for the harm caused , as well as the degree to which the trader has cooperated with member states´ authorities in order to remedy the consequences of the infringement in question and to mitigate the potential adverse effects thereof , should also be taken into account . repeated infringements by the same perpetrator shows a propensity to commit such infringements and is therefore a significant indication of the gravity of the conduct and , accordingly , of the need to increase the level of the penalty to achieve effective deterrence . the criterion of financial benefits gained , or losses avoided , due to the infringement is especially relevant where the national law provides for fines as penalties and sets the maximum fine as percentage of the trader’s turnover and where the infringement concerns only one or some of the markets in which the trader is operating .


### considering technological developments , it is necessary to remove the reference to fax number from the list of the means of communication in article 6 of directive 2011 / 83 / eu since fax is rarely used and largely obsolete . furthermore , traders should be able to provide , as alternative to an e - mail address , other means of online communication with consumers , for example , online forms and chats , provided that such alternative means enable the consumer to retain the content of the communication on a durable medium in a similar way as e - mail . annex i of the directive ' information concerning the exercise of the right of withdrawal ' should also be adjusted in accordance with this amendment . ### considering technological developments , it is necessary to remove the reference to fax number from the list of the means of communication in article 6 of directive 2011 / 83 / eu since fax is rarely used and largely obsolete . furthermore , traders should be able to provide , as alternative to an e - mail address , other means of online communication with consumers , for example , online forms and chats , provided that such alternative means enable the consumer to retain the content of the communication on a durable medium in a similar way as e - mail , as well as to prove that the consumer has contacted the trader . annex i of the directive ' information concerning the exercise of the right of withdrawal ' should also be adjusted in accordance with this amendment .


### using editorial content in the media , or providing information to a consumer’s online search query , to promote a product where a trader has paid for the promotion without making that clear in the content or search results or by images or sounds clearly identifiable by the consumer . this is without prejudice to directive 2010 / 13 / eu48 . __________________ 48 directive 2010 / 13 / eu of the european parliament and of the council of 10 march 2010 on the coordination of certain provisions laid down by law , regulation or administrative action in member states concerning the provision of audiovisual media services . ### using editorial content in the media , or providing information to a consumer’s online search query , to promote a product where a trader has paid for the promotion without making that clear in the content or search results or by images or sounds clearly and easily identifiable by the consumer . this is without prejudice to directive 2010 / 13 / eu48 . __________________ 48 directive 2010 / 13 / eu of the european parliament and of the council of 10 march 2010 on the coordination of certain provisions laid down by law , regulation or administrative action in member states concerning the provision of audiovisual media services .


### the geographical address at which the trader is established as well as the trader’s telephone number , e - mail address or other means of online communication which guarantee that the consumer can keep the correspondence with the trader on a durable medium , to enable the consumer to contact the trader quickly and communicate with him efficiently . where applicable , the trader shall also provide the geographical address and identity of the trader on whose behalf he is acting . ### the geographical address at which the trader is established as well as the trader’s telephone number , e - mail address or other means of online communication which guarantee that the consumer can keep the correspondence with the trader on a durable medium , including that which proves that the consumer has contacted the trader , in order to enable the consumer to contact the trader quickly and communicate with him efficiently . where applicable , the trader shall also provide the geographical address and identity of the trader on whose behalf he is acting .


### the principle of partnership is a key feature in the implementation of the funds , building on the multi - level governance approach and ensuring the involvement of civil society and social partners . in order to provide continuity in the organisation of partnership , commission delegated regulation no 240 / 201413 should continue to apply . _________________ 13 commission delegated regulation no 240 / 2014 of 7 january 2014 on the european code of conduct on partnership in the framework of the european structural and investment funds . ### the principle of partnership is a key feature in the implementation of the funds , building on the multi - level governance approach at local , regional and national level , and ensuring the involvement of civil society and social partners . in order to provide continuity in the organisation of partnership , commission delegated regulation no 240 / 201413 should continue to apply .


### the partnership agreement , prepared by each member state , should be a strategic document guiding the negotiations between the commission and the member state concerned on the design of programmes . in order to reduce the administrative burden , it should not be necessary to amend partnership agreements during the programming period . to facilitate the programming and avoid overlapping content in programming documents , partnership agreements can be included as part of a programme . ### 15 . the partnership agreement , prepared by each member state , should be a strategic document guiding the negotiations between the commission and the member state concerned on the design of programmes . member states should take into account features and specificities pointed out from local and regional administrations . in order to reduce the administrative burden , it should not be necessary to amend partnership agreements during the programming period . to facilitate the programming and avoid overlapping content in programming documents , partnership agreements can be included as part of a programme .


### in order to examine the performance of the programmes , the member state should set up monitoring committees . for the erdf , the esf + and the cohesion fund , annual implementation reports should be replaced by an annual structured policy dialogue based on the latest information and data on programme implementation made available by the member state . ### in order to examine the performance of the programmes , the member state should setup monitoring committees . for the erdf , the esf + and the cohesion fund , annual implementation reports should be replaced by an annual structured policy dialogue based on the latest information and data on programme implementation made available by the member state with the information given by regional and local entities .


### the criteria applied by the member state to select indicators ; ### the criteria applied by the member state to select indicators also given by regional and local entities ;


### the commission may request a member state to review and propose amendments to relevant programmes , where this is necessary to support the implementation of relevant council recommendations . ### the commission shall request a member state to review and propose amendments to relevant programmes , where this is necessary to support the implementation of relevant council recommendations .


### each managing authority shall identify a communication officer for each programme . ### each managing authority shall identify a communication officer for each programme . the communication officer shall take into account all the official and co - official languages of the member state , or the official languages of the regional and / or local entity or entities , where the programme is to be implemented .


### in the digital environment in particular , the competent authorities should be able to stop infringements quickly and effectively , notably where the trader selling goods or services conceals its identity or relocates within the union or to a third country to avoid enforcement . in cases where there is a risk of serious and irreparable harm to consumers , the competent authorities should to be able to adopt interim measures to prevent such harm or reduce it , including , where necessary , the suspension of a website , domain or a similar digital site , service or account . furthermore , the competent authorities should have the power to take down or have a third party service provider take down a website , domain or a similar digital site , service or account , ### in the digital environment in particular , the competent authorities should be able to stop infringements quickly and effectively , notably where the trader selling goods or services conceals its identity or relocates within the union or to a third country to avoid enforcement . in cases where there is a risk of serious and irreparable harm to consumers , the competent authorities should to be able to adopt interim measures to prevent such harm or reduce it , including , where necessary , requesting hosting service providers to remove content , suspend a website , service or account , or requesting a domain registry or registrar to put a fully qualified domain name on hold for a specific period of time . furthermore , the competent authorities should have the power to request a hosting service provider to remove content , close down a website , service or account or a part of it , or request a registry or registrar to delete a fully qualified domain name . however , measures to remove content can be harmful to freedom of speech and information , but also ineffective as in the fast - moving digital environment content reappears as quickly as it was removed . therefore measures taken to restrict the online distribution , or otherwise making available , of content to the public should always be in line with the charter of fundamental rights of the european union , be limited to what is necessary and proportionate and executed on the basis of a prior judicial authorization ,


### close down a website , domain or similar digital site , service or account or a part of it , including by requesting a third party or other public authority to implement such measures ; ### in the absence of an effective reaction within a reasonable time by the trader to a request in writing by the competent authorities of a cessation of an infringement , order a hosting service provider to close down a website , service or account or a part of it , order a domain registry or registrar to delete a fully qualified domain name and allow the competent authority concerned to register it ; close down a website , domain or similar digital site , service or account or a part of it provided that any measure taken , to restrict the online distribution , or otherwise making available , of content to the public is in line with the charter of fundamental rights , is limited to what is necessary and proportionate and executed on the basis of a prior judicial authorisation ,


### following the notification of the decision to launch the common action pursuant to paragraph 2 , where a competent authority decides not to take part in the common action , it shall without delay inform the commission and the other competent authorities concerned about its decision , state the reasons for it pursuant to paragraph 3 and provide the necessary supporting documents . ### following the notification of the decision to launch the common action pursuant to paragraph 2 , where a competent authority declines to take part in the common action based on the reasons laid down in paragraph 3 , it shall inform the commission and the other competent authorities concerned about its decision without undue delay . in this case , it shall indicate one of the reasons laid down in paragraph 3 and provide the necessary supporting documents .


### a blending facility under cef should aim to enhance the multiplier effect of union spending by attracting additional resources from private investors . in addition , it should ensure that the actions supported become economically and financially viable . ### cef blending facilities should aim to enhance the multiplier effect of union spending by attracting additional resources from private investors , thus ensuring a maximum degree of private investor involvement ; in addition , it should ensure that the actions supported become economically and financially viable and help to avoid a lack of investment leverage .


### only grants and procurement may currently be used to support actions in the area of digital service infrastructures . in order to ensure as efficient as possible , financial instruments should also be made available to support these actions . ### only grants and procurement may currently be used to support actions in the area of digital service infrastructures . in order to ensure that the digital service infrastructures function as efficiently as possible , other financial instruments which are currently used under cef , including innovative financial instruments , should also be made available to support these actions .


### “8 . final recipients supported by an esi fund financial instrument may also receive assistance from another esi funds priority or programme or from another instrument supported by the budget of the union in accordance with applicable union state aid rules . in that case , separate records shall be maintained for each source of assistance and the esi funds financial instrument support shall be part of an operation with eligible expenditure distinct from the other sources of assistance . ” ### paragraph 8 is replaced by the following : “8 . final recipients supported by an esi fund financial instrument may also receive assistance from another esi funds priority or programme or from another instrument supported by the budget of the union or from the european fund for strategic investments , in accordance with applicable union state aid rules , as appropriate . in that case , separate records shall be maintained for each source of assistance and the esi funds financial instrument support shall give rise to eligible expenditure distinct from the other sources of assistance . ”


### a publicly - owned bank or financial institution , established as a legal entity carrying out financial activities on a professional basis , which fulfils all the following conditions : ### a publicly - owned bank or institution , established as a legal entity carrying out financial activities on a professional basis , which fulfils all the following conditions :


### –is subject to the supervision of an independent authority in accordance with national law . ### –is subject to the supervision of an independent authority in accordance with applicable law .


### “when implementing the financial instrument , the bodies referred to in points to of the first subparagraph shall ensure compliance with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria , as set out in eu legislation including commission recommendations and communications or or any formal notice by the latter . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ” ### “when implementing the financial instrument , the bodies referred to in points to of the first subparagraph shall comply with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria , as set out in eu legislation . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ”


### when implementing financial instruments under point of article 38 , the bodies referred to in paragraph 2 of this article shall ensure compliance with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in eu legislation including commission recommendations and communications or any formal notice by the latter . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ### when implementing financial instruments under point of article 38 , the bodies referred to in paragraph 5 of this article shall comply with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in eu legislation . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements .


### the contribution referred to in paragraph 1 shall not exceed 25 % of the total support provided to final recipients . in the less developed regions referred to in point of article 120 , the financial contribution may exceed 25% where duly justified by the ex - ante assessment , but shall not exceed 50% . the total support referred to in this paragraph shall comprise the total amount of new loans and guaranteed loans as well as equity and quasi - equity investments provided to final recipients . the guaranteed loans referred to in this paragraph shall only be taken into account to the extent that esi funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment covering a multiple amount of new loans . ### the contribution referred to in paragraph 1 shall not exceed 15 % of the total support provided to final recipients . in the less developed and transition regions referred to in point of article 120 , the financial contribution may exceed 15% where duly justified by the ex - ante assessment or preparatory assessment undertaken by the eib under paragraph 3 of this article , but shall not exceed 30% . the total support referred to in this paragraph shall comprise the total amount of new loans and guaranteed loans as well as equity and quasi - equity investments provided to final recipients . the guaranteed loans referred to in this paragraph shall only be taken into account to the extent that esi funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment covering a multiple amount of new loans .


### reporting by managing authorities under article 46 on operations comprising financial instruments under this article shall be based on the information kept by the eib for the purposes of its reporting pursuant to article 16 and of the efsi regulation , supplemented by the additional information required under article 46 . ### reporting by managing authorities under article 46 on operations comprising financial instruments under this article shall be based on the information kept by the eib for the purposes of its reporting pursuant to article 16 and of the efsi regulation , supplemented by the additional information required under article 46 . requirements under this paragraph shall allow for uniform reporting conditions in accordance with article 46 of this regulation .


### entrust implementation tasks to a financial institution , which shall either open a fiduciary account in its name and on behalf of the managing authority or set up a separate block of finance within the financial institution for programme contribution . in the case of a separate block of finance , an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the financial institution . the assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity . ### entrust implementation tasks to a body , which shall either open a fiduciary account in its name and on behalf of the managing authority or set up a separate block of finance within the financial institution for programme contribution . in the case of a separate block of finance , an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the financial institution . the assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity .


### where managing authorities contribute esi funds programme resources to an existing instrument under point of article 38 , the fund manager of which has already been selected by the eib , international financial institutions in which a member state is a shareholder , or a publicly - owned bank or financial institution , established as a legal entity carrying out financial activities on a professional basis and fulfilling the conditions set out under article 38 , they shall entrust implementation tasks to this fund manager through the award of a direct contract . ### where managing authorities contribute esi funds programme resources to an existing instrument under point of article 38 , the fund manager or financial intermediary of which has already been selected by the eib , international financial institutions in which a member state is a shareholder , or a publicly - owned bank or financial institution , established as a legal entity carrying out financial activities on a professional basis and fulfilling the conditions set out under article 38 , they shall entrust implementation tasks to this fund manager or financial intermediary through the award of a direct contract .


### the commission shall be empowered to adopt an implementing act concerning the models for the control reports and the annual audit reports of the first sub - paragraph of this paragraph . ### the commission shall be empowered to adopt an implementing act concerning the models for the control reports and the annual audit reports of the third sub - paragraph of this paragraph .


### subsequent applications for interim payment submitted during the eligibility period shall only be made : for the second application for interim payment , when at least 60 % of the amount included in the first application for interim payments has been spent as eligible expenditure within the meaning of points , and of article 42 ; for the third and subsequent applications for interim payment , when at least 85 % of the amounts included in the previous applications for interim payments have been spent as eligible expenditure within the meaning of points , and of article 42 ; ### in article 41 , point of paragraph 1 is replaced by the following : “second and subsequent applications for interim payments submitted during the eligibility period shall only be made , when at least 60% of the amount included in the previous application for interim payments has been spent as eligible expenditure within the meaning of points , and of article 42 . ”


### in the case of equity - based instruments targeting enterprises referred to in article 37 for which the funding agreement referred to in point of article 38 was signed before 31 december 2017 , which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement , a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of eligibility period may be considered as eligible expenditure , when paid into an escrow account specifically set up for that purpose , provided that state aid rules are complied with and that all of the conditions set out below are fulfilled . ### in article 42 , the first subparagraph of paragraph 3 is replaced by the following : “ in the case of equity - based instruments targeting enterprises referred to in article 37 for which the funding agreement referred to in point of article 38 was signed before 31 december 2018 , which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement , a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of eligibility period may be considered as eligible expenditure , when paid into an escrow account specifically set up for that purpose , provided that state aid rules are complied with and that all of the conditions set out below are fulfilled .