### furthermore , the commission should have the possibility to screen foreign direct investments likely to affect projects and programmes of union interest on grounds of security or public order . this would give the commission a tool to protect projects and programmes which serve the union as whole and represent an important contribution to its economic growth , jobs and competitiveness . this should include in particular projects and programmes involving a substantial eu funding or established by union legislation regarding critical infrastructure , critical technologies or critical inputs . for greater clarity , an indicative list of projects or programmes of union interest in relation to which foreign direct investment can be subject to a screening by the commission should be listed in an annex . ### furthermore , the commission should have the possibility to screen foreign direct investments likely to affect the security and public order of the member states or the union as a whole , projects and programmes of union interest on grounds of security or public order , or investment which is likely to be directly or indirectly undertaken with the aim of acquiring key enabling technologies or knowledge and to be part of a state - led industrial policy strategy in support of strategic national interests . this would give the commission a tool to protect projects and programmes which serve the union as whole and represent an important contribution to its economic growth , jobs and competitiveness as well as taking into account union wide patterns and investments that affect more than one member state or the union as a whole due to the integrated nature of the european internal market . this should include in particular projects and programmes involving a substantial eu funding or established by union legislation regarding critical infrastructure , critical technologies or critical inputs . for greater clarity , an indicative list of projects or programmes of union interest in relation to which foreign direct investment can be subject to a screening by the commission should be listed in an annex i . an indicative list of key enabling technologies or knowledge in which investment is likely to be directly or indirectly undertaken with the aim of acquiring key enabling technologies or knowledge and to be part of a state - led industrial policy strategy in support of strategic national interests shall be included in annex ii .


### in screening a foreign direct investment on the grounds of security or public order , member states and the commission may consider the potential effects on , inter alia : ### in screening a foreign direct investment on the grounds of security or public order , member states and the commission shall consider the potential effects , direct and indirect , on , inter alia :


### the commission may screen foreign direct investments that are likely to affect projects or programmes of union interest on the grounds of security or public order . ### the commission may screen foreign direct investments that it can justify are likely to affect projects or programmes of union interest if necessary to protect security or to maintain public order .


### to that end , it is also important to ensure a minimum level of information and coordination with regard to foreign direct investments falling under the scope of this regulation in all member states . this information should be made available by the member states in which the foreign direct investment is planned or has been completed upon request of the member states or of the commission . relevant information includes aspects such as the ownership structure of the foreign investor and the financing of the planned or completed investment , including , when available , information about subsides granted by third countries . ### to that end , it is also important , with the effectiveness of the mechanism in mind , to ensure a sufficient level of information and coordination with regard to foreign direct investments falling under the scope of this regulation in all member states . all this information should be made available by the member states in which the foreign direct investment is planned or has been completed upon request of the member states or of the commission . relevant information includes aspects such as the ownership structure of the foreign end - investor , its origin and the financing of the planned or completed investment , including , on the basis of the best available information , information about subsidies granted by third countries . to that end , the commission may provide further information on the foreign investor and the foreign end - investor on the basis of its activities and experience , in particular as regards its past relations with the foreign investor .


### it is important to provide legal certainty and to ensure eu wide coordination and cooperation by establishing a framework for the screening of foreign direct investment in the union on grounds of security or public order . this is without prejudice to the sole responsibility of the member states for the maintenance of national security . ### it is important to provide legal certainty and to ensure eu wide coordination and cooperation by establishing a framework for the screening of foreign direct investment in the union on grounds of security or public order . this legal certainty should not interfere with the sole responsibility of member states to mandate and control the national security of their respective countries and should have due account for the provisions of article 346 tfeu .


### - critical technologies , including artificial intelligence , robotics , semiconductors , technologies with potential dual use applications , cybersecurity , space or nuclear technology ; ### - critical technologies , nano - and bio - technologies , including artificial intelligence , robotics , semiconductors , cybertechnologies , technologies with potential dual use applications , cybersecurity , space or nuclear technology ;


### member states should be able to take the necessary measures , in compliance with union law , to prevent circumvention of their screening mechanisms and decisions to protect security or public order . this should cover investments within the union by means of artificial arrangements that do not reflect economic reality and circumvent the screening mechanisms and screening decisions , where the investor is ultimately owned or controlled by a natural person or an undertaking of a third country . this is without prejudice to the freedom of establishment and free movement of capital enshrined in the tfeu . ### member states must take the necessary measures , in compliance with union law , to prevent circumvention of their screening mechanisms and decisions to protect security or public order . this should cover investments within the union by means of artificial arrangements and complex investment structures that do not reveal the end - investor and do not reflect economic reality and circumvent the screening mechanisms and screening decisions , where the investor is ultimately owned or controlled by a natural person , an undertaking , government or military of a third country . this is without prejudice to the freedom of establishment and free movement of capital enshrined in the tfeu .


### in determining whether a foreign direct investment may affect security or public order , member states and the commission should be able to consider all relevant factors , including the effects on critical infrastructure , technologies , including key enabling technologies , and inputs which are essential for security or the maintenance of public order , and the disruption , loss or destruction of which would have a significant impact in a member state or in the union . in that regard , member states and the commission should also be able to take into account whether a foreign investor is controlled directly or indirectly by the government of a third country . ### in determining whether a foreign direct investment may affect security or public order , member states and the commission should be able to consider all relevant factors , including the effects on critical infrastructure , technologies , including key enabling technologies , and inputs which are essential for security or the maintenance of public order , and the disruption , loss or destruction of which would have a significant impact in a member state or in the union . in that regard , member states and the commission should also be able to take into account whether a foreign investor or end - investor is controlled directly or indirectly by the government or military of a third country , including participation in an economic or political project or strategy guided by a foreign power .


### projects or programmes of union interest shall include in particular those projects and programmes which involve a substantial amount or a significant share of eu funding , or which are covered by union legislation regarding critical infrastructure , critical technologies or critical inputs . an indicative list of projects or programmes of union interest is included in annex 1 . ### projects or programmes of union interest shall include in particular those projects and programmes which involve eu funding , or which are covered by union legislation regarding critical infrastructure , key technologies or critical inputs that are essential to maintaining security and public order . an indicative list of projects or programmes of union interest is included in annex 1 and can be updated by delegated acts .


### where a member state considers that a foreign direct investment planned or completed in another member state is likely to affect its security or public order , it may provide comments to the member state where the foreign direct investment is planned or has been completed . the comments shall be forwarded to the commission in parallel . ### where a member state considers that a foreign direct investment planned or completed in another member state is likely to affect its national or the union’s security or public order or that it is likely to be directly or indirectly undertaken with the aim of acquiring key enabling technologies or knowledge and be part of a state - led industrial policy strategy in support of strategic national interests , it shall indicate this to the commission and to the member state where the foreign direct investment is planned or has been completed . the commission shall take adequate action as outlined in article 9 .


### as union legislation already transposes many of the obligations of the convention , this regulation should only lay down provisions that complement the union acquis and that are needed to ensure its full alignment with the convention and , accordingly , to enable the union and its member states to ratify and implement it . ### as union legislation already transposes many of the obligations of the convention , this regulation should lay down provisions that complement the union acquis and that are needed to ensure its full alignment with the convention and , accordingly , to enable the union and its member states to ratify and implement it . this regulation should also lay down new provisions that go beyond the convention , in keeping with the strategy and union legislation on the environment and protection of human health , particularly in the field of waste .


### as union legislation already transposes many of the obligations of the convention , this regulation should only lay down provisions that complement the union acquis and that are needed to ensure its full alignment with the convention and , accordingly , to enable the union and its member states to ratify and implement it . ### as union legislation already transposes many of the obligations of the convention , this regulation should as a priority lay down provisions that complement the union acquis and that are needed to ensure its full alignment with the convention and , accordingly , to enable the union and its member states to ratify and implement it .


### from 1 january 2019 : vinyl chloride monomer production ### from 1 january 2025 : vinyl chloride monomer production


### mercury is a highly toxic substance which represents a global and major threat to human health , including by methylmercury in fish and seafood resources , the ecosystems and wildlife . due to the transboundary nature of mercury pollution , between 40% and 80% of total mercury deposition in the union originates from outside of the union and therefore warrants action at local , regional , national and international levels . ### mercury is a highly toxic substance which represents a global and major threat to human health , including by methylmercury in fish and seafood resources , the ecosystems and wildlife . in high doses , mercury is particularly harmful to young children and foetuses , and it affects the intellectual faculties among others . restrictions on its use should therefore be adopted .


### by way of derogation from point of article 5 of directive 1999 / 31 / ec , mercury waste may be stored in one of the following ways : ### by way of derogation from point of article 5 of directive 1999 / 31 / ec , mercury waste may be stored temporarily for up to five years in above - ground facilities dedicated to and equipped for the temporary storage of mercury .


### temporarily stored in above - ground facilities dedicated to and equipped for the temporary storage of mercury . ### in above - ground facilities dedicated to and equipped for the temporary storage of mercury .


### from 1 january 2019 onwards dental amalgam shall only be used in an encapsulated form . ### from 1 january 2019 onwards dental amalgam shall only be used in a pre - dosed encapsulated form .


### the production of sodium or potassium methylate or ethylate shall be carried out in accordance with the following requirements : ### the production of sodium or potassium methylate or ethylate shall be carried out in accordance with point of part i and the following requirements :


### in the absence of relevant available mercury - free production processes , operating conditions for the production of sodium or potassium methylate or ethylate involving the use of mercury should be set . ### given that alternative mercury - free production processes are available , temporary operating conditions for the production of sodium or potassium methylate or ethylate involving the use of mercury should be set . moreover , in order to enable industry to make investments sufficiently in advance , a date needs to be set as soon as possible for the introduction of a ban on mercury in the production of sodium or potassium methylate or ethylate .


### from 1 january 2019 onwards dental facilities shall be equipped with amalgam separators aimed at retaining and collecting amalgam particles . those separators shall be maintained as required to ensure a high level of retention . ### from 1 january 2021 onwards dental facilities shall be equipped with amalgam separators aimed at retaining and collecting all amalgam particles , including those contained in liquid waste . practitioners shall take steps to ensure that separators are maintained as required to ensure a high and ongoing level of retention of at least 95% of amalgam particles .


### from 1 january 2019 : acetaldehyde production ### from 1 january 2018 : where mercury is used as a catalyst


### in the absence of relevant available mercury - free production processes , operating conditions for the production of sodium or potassium methylate or ethylate involving the use of mercury should be set . ### the production of sodium or potassium methylate or ethylate by means of a process using mercury ought ultimately to be prohibited . in the absence of a relevant available mercury - free process for the production of potassium methylate or ethylate , the derogation period should be extended for a maximum specified period and / or until a mercury - free process has been deemed technically and economically feasible .


### - an assessment of its environmental and health risks , ### - an assessment of its environmental and health risks and benefits ,


### the use of dental amalgam in an encapsulated form and the implementation of amalgam separators should be made mandatory to protect dental practitioners and patients from mercury exposure and to ensure that resulting mercury waste are not released into the environment , but are collected and subjected to sound waste management . given the size of the undertakings from the dentristy sector concerned by this change , it is appropriate to provide sufficient time to adapt to the new provision . ### the use of dental amalgam in an encapsulated pre - dosed form and the implementation of amalgam separators should be made mandatory to protect dental practitioners and patients from mercury exposure and to ensure that resulting mercury waste are not released into the environment , but are collected and subjected to sound waste management . to ensure that amalgam separators are effective , minimum requirements for performance of equipment and amalgam waste management by practitioners ought to be guaranteed at union level . given the size of the undertakings from the dentistry sector concerned by this change , it is appropriate to provide sufficient time to adapt to the new provision .


### from 1 january 2019 onwards dental facilities shall be equipped with amalgam separators aimed at retaining and collecting amalgam particles . those separators shall be maintained as required to ensure a high level of retention . ### from 1 january 2021 onwards dental facilities using dental amalgam or removing dental amalgam fillings shall ensure that their facilities are equipped with amalgam separators aimed at retaining and collecting amalgam particles . those separators shall be maintained as required to ensure a high level of retention .


### tasks ### tasks of berec


### the management board shall inform the european parliament if it intends to extend the executive director’s term of office . within one month before any such extension , the executive director may be invited to make a statement before the competent committee of the parliament and to answer questions put by its members . ### the management board shall inform the european parliament if it intends to extend the director’s term of office . within one month before any such extension , the director may be invited to make a statement before the competent committee of the parliament and to answer questions put by its members .


### the management board shall be composed of one representative from each member state and two representatives of the commission , all with voting rights . each nra shall be responsible for nominating its respective representative amongst the head or members of the collegiate body of the nra . ### the board of regulators shall be composed of one member per member state . those members shall be the head or other high - level representative of the nra established in each member state with primary responsibility for overseeing the day - to - day operation of the markets for electronic communications networks and services .


### the term of office of the executive director shall be five years . by the end of that period , the commission shall undertake an assessment that takes into account an evaluation of the executive director’s performance and berec’s future tasks and challenges . ### the term of office of the director shall be five years . by the end of that period , the management board , represented by its chairperson shall undertake an assessment that takes into account an evaluation of the director’s performance and the berec office’s future tasks and challenges .


### in order to further extend the consistent implementation of the provisions of the regulatory framework for electronic communications within the scope of berec , the new agency should be open to the participation of regulatory authorities of third countries competent in the field of electronic communications that have entered into agreements with the union to that effect , in particular those of eea efta states and candidate countries . ### in order to further extend the consistent implementation of the provisions of the regulatory framework for electronic communications within the scope of berec and the berec office should be open to the participation of regulatory authorities of third countries competent in the field of electronic communications that have entered into agreements with the union to that effect , in particular those of efta states and candidate countries .


### berec and the berec office have made a positive contribution towards a consistent implementation of the regulatory framework for electronic communications . notwithstanding , there are still significant disparities between member states as regards regulatory practice . moreover , the governance structure of berec and the berec office is cumbersome and gives rise to unnecessary administrative burden . in order to ensure efficiency gains and synergies and to further contribute to the development of the internal market for electronic communications throughout the union as well as to the promotion of access to , and take - up of , very high capacity data connectivity , competition in the provision of electronic communications networks , services and associated facilities and the interests of the citizens of the union , this regulation aims to strengthen the role of berec and enhance its governance structure by establishing berec as a union decentralised agency . this also corresponds to the need to reflect the significantly enhanced role played by berec following regulation no 531 / 2012 which establishes tasks for berec in relation to union - wide roaming , regulation no 2015 / 2120 which establishes tasks for berec in relation to open internet access and union - wide roaming , and the directive which establishes a significant number of new tasks for berec such as issuing decisions and guidelines on several topics , reporting on technical matters , keeping registers and delivering opinions on internal market procedures for draft national measures on market regulation as well as on assignments of rights of use for radio spectrum . ### berec and the berec office have made a positive contribution towards a consistent implementation of the regulatory framework for electronic communications . notwithstanding , there are still significant disparities between member states as regards regulatory practice . in order to ensure efficiency gains and synergies and to further contribute to the development of the internal market for electronic communications throughout the union as well as to the promotion of access to , and take - up of , very high capacity data connectivity , competition in the provision of electronic communications networks , services and associated facilities and the interests of the citizens of the union , this regulation aims to strengthen the roles of berec and the berec office and enhance their governance structure . this also corresponds to the need to reflect the significantly enhanced role played by berec following regulation no 531 / 2012 which establishes tasks for berec in relation to union - wide roaming , regulation no 2015 / 2120 which establishes tasks for berec in relation to open internet access and union - wide roaming , and the directive which establishes a significant number of new tasks for berec such as issuing decisions and guidelines on several topics , reporting on technical matters , keeping registers and delivering opinions on internal market procedures for draft national measures on market regulation as well as on assignments of rights of use for radio spectrum .


### the management board , acting on a proposal from the commission that takes into account the assessment referred to in paragraph 3 , may extend the term of office of the executive director once , for no more than five years . ### the management board , acting on a proposal from the commission that takes into account the assessment referred to in paragraph 3 , may extend the term of office of the director once , for no more than five years .


### the role of the executive director , who would be the legal representative of berec , is crucial for the adequate functioning of the new agency and the implementation of the tasks assigned to it . the management board should appoint him / her on the basis of a list drawn up by the commission following an open and transparent selection procedure in order to guarantee a rigourous evaluation of the candidates and a high level of independence . moreover , in the past the term of office of the administrative manager of the berec office was three years . it is necessary that the executive director has a sufficiently long mandate in order to ensure stability and delivery of a long - term strategy for the agency . ### the role of the director , who would be the legal representative of the berec office , is crucial for the adequate functioning of the new agency and the implementation of the tasks assigned to it . the management board should appoint him / her following an open and transparent selection procedure in order to guarantee a rigourous evaluation of the candidates and a high level of independence . moreover , in the past the term of office of the administrative manager of the berec office was three years . it is necessary that the director has a sufficiently long mandate in order to ensure stability and delivery of a long - term strategy for the agency .


### berec should be independent as regards operational and technical matters and should enjoy legal , administrative and financial autonomy . to that end , it is necessary and appropriate that berec should be a body of the union having legal personality and exercising the powers conferred upon it . ### the berec office should be independent as regards operational and technical matters and should enjoy legal , administrative and financial autonomy .


### berec shall pursue the same objectives as those of national regulatory authorities referred to in article 3 of the directive . in particular , berec shall ensure a consistent implementation of the regulatory framework for electronic communications within the scope referred to in paragraph 2 and thereby contribute to the development of the internal market . it shall also promote access to , and take - up of , very high capacity data connectivity ; competition in the provision of electronic communications networks , services and associated facilities ; and the interests of the citizens of the union . ### berec shall pursue the same objectives as those of national regulatory authorities referred to in article 3 of the directive . in particular , berec shall contribute to the development and better functioning of the internal market for electronic communications networks and services by ensuring a consistent implementation of the union regulatory framework for electronic communications within the scope referred to in paragraph 2 . it shall also promote access to , and take - up of , very high capacity data connectivity ; competition in the provision of electronic communications networks , services and associated facilities ; and the interests of the citizens of the union .


### the management board shall reach decisions on appointment , extension of the term of office or removal from office of the executive director on the basis of a two - thirds majority of its members with voting rights . ### the management board shall reach decisions on appointment , extension of the term of office or removal from office of the director on the basis of a two - thirds majority of its members with voting rights .


### an executive director whose term of office has been extended may not participate in another selection procedure for the same post at the end of the overall period . ### a director whose term of office has been extended may not participate in another selection procedure for the same post at the end of the overall period .


### the executive director may be removed from office only upon a decision of the management board acting on a proposal from the commission . ### the director may be removed from office only upon a decision of the management board acting on a proposal from the commission .


### the executive director shall be appointed by the management board , from a list of candidates proposed by the commission , following an open and transparent selection procedure . ### the director shall be appointed by the management board following an open and transparent selection procedure .


### for the purpose of concluding the contract with the executive director , berec shall be represented by the chairperson of the management board . ### for the purpose of concluding the contract with the director , the berec office shall be represented by the chairperson of the management board .


### the commission shall conclude an agreement with the european investment bank on the establishment of a european fund for strategic investments . 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 . 2 . 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 . ### this regulation establishes a european fund for strategic investments , an eu guarantee and an eu guarantee fund . 2 . to that effect , this regulation provides for the commission to negotiate a draft agreement with the european investment bank for the management of the european fund for strategic investments . this agreement shall solely contain technical and administrative elements , and shall be in full compliance with the requirements set - out in this regulation . 3 . the commission shall be empowered to enter into the efsi agreement on behalf of the union , and to accept later amendments to it , by means of a delegated act in accordance with article 17 , provided that the efsi agreement meets the requirements of this regulation . 4 . the purpose of the efsi shall be to support investments in the union conducive to competitive and sustainable growth with a view to overcome the investment gap among its member states . through the supply of risk bearing capacity to the eib the efsi shall : - support long term , productive and strategic investments ; - ensure increased access to financing for companies having up to 3000 employees , with a particular focus on start - ups , micro - enterprises , small , and medium - sized enterprises , small mid - caps . 5 . 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 . 6 . guarantees under this regulation shall only be committed by the investment committee to operations and projects that shall be contractually agreed and signed within three years after the commitment . if the operations and projects are not singed within three years after the commitment , the commitment has to expire .


### 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 financing , especially as regards investments that carry a greater degree of risk . this is particularly true of businesses in rural areas , where economic growth and measures to safeguard jobs are urgently needed . 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 .


### 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 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 . a single point of entry for questions related to technical assistance for investments within the union should be established and technical assistance free of charge should be provided to project promoters at national and local level to ensure equal access to efsi financing .


### the efsi should support strategic investments with high economic value added contributing to achieving union policy objectives . ### the efsi should support strategic investments with high social and economic value added , promoting research , education and training , and contributing to achieving union policy objectives .


### any surplus shall be paid in one transaction to a special heading in the statement of revenue in the general budget of the european union of the year n + 1 , ### any surplus in the guarantee fund shall constitute internal assigned revenue in accordance with article 21 of regulation no 966 / 2012 for any lines which may have been used as a source of redeployment to the efsi guarantee fund ,


### an assessment of eib financing and investment operations at operation , sector , country and regional levels and their compliance with this regulation , together with an assessment of the allocation of eib financing and investment operations between the objectives in article 5 ; ### an assessment of eib financing and investment operations at operation , sector , country and regional levels and their compliance with this regulation and regulation 966 / 2012 , together with an assessment of the allocation of eib financing and investment operations between the objectives :


### 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 social , environmental and economic added value . the efsi should support projects that comply to the criteria and objectives set out in this regulation , that promote sustainable high quality job creation , long - term sustainable growth and competitiveness and which help to achieve the eu’s research and development , innovation , climate and energy and digital goals . the efsi should support a wide range of financial products , including equity , quasi - 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 , or crowd - out , private market finance or products provided by regional and national promotional banks , 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 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 ;


### article 1 european fund for strategic investments the commission shall conclude an agreement with the european investment bank on the establishment of a european fund for strategic investments . 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 . 2 . 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 . ### article 1 european fund for strategic investments the commission shall conclude an agreement with the european investment bank on the establishment of a european fund for strategic investments , which shall be transmitted to the european parliament and the council . the purpose of the efsi shall be to support competitive and efficient investments in the union and to ensure increased and accessible financing for companies , including start - ups , having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib 1a . the commission and the eib shall ensure that the support from efsi is consistent with , and complementary to , other policies and instruments of the union , contributing also to the objective of economic , social and territorial cohesion . 2 . 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 , regional and local authorities and private sector entities .


### article 12 evaluation and review at the latest [ po insert date : 18 months after the entry into force of this regulation ] the eib shall evaluate the functioning of the efsi . the eib shall submit its evaluation to the european parliament , the council and the commission ; at the latest [ po insert date : 18 months after the entry into force of this regulation ] the commission shall evaluate the use of the eu guarantee and the functioning of the guarantee fund , including the use of endowments according to article 8 . the commission shall submit its evaluation to the european parliament and the council . 2 . by 30 june 2018 and every three years thereafter : the eib shall publish a comprehensive report on the functioning of the efsi ; the commission shall publish a comprehensive report on the use of the eu guarantee and the functioning of the guarantee fund . 3 . the eib , in cooperation with the eif as appropriate , shall contribute to and provide the necessary information for the commission evaluation and report under paragraph 1 and 2 respectively . 4 . the eib and eif shall on a regular basis provide the european parliament , the council and the commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the eib and eif under this regulation . 5 . at the latest [ po insert date three years after the entry into force of this regulation ] , the commission shall submit a report to the european parliament and the council on the application of this regulation accompanied by any relevant proposal . ### article 12 evaluation at the latest [ po insert date : 12 months after the entry into force of this regulation ] the eib shall submit an evaluation on the functioning of the efsi to the european parliament , the council and the commission ; at the latest [ po insert date : 12 months after the entry into force of this regulation ] the commission shall evaluate the use of the eu guarantee and the functioning of the guarantee fund , including the use of endowments according to article 8 . the commission shall annually submit its evaluation to the european parliament and the council . 2 . annually , and 6 months after the date of termination of the agreement of efsi : the eib shall publish a comprehensive report on the functioning of the efsi ; the commission shall publish a comprehensive report on the use of the eu guarantee and the functioning of the guarantee fund . 3 . the eib , in cooperation with the eif as appropriate , shall contribute to and provide the necessary information for the commission evaluation and report under paragraph 1 and 2 respectively . 4 . the eib and eif shall on a regular basis provide the european parliament , the council and the commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the eib and eif under this regulation . 5 . at the latest [ po insert date three years after the entry into force of this regulation ] , the commission shall submit a report to the european parliament and the council on the application of this regulation and the evaluation of the eligibility criteria applied by the investment committee and defined in article 5 , accompanied by any relevant proposal .


### 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 . ### the contribution from the union budget will be progressively authorised by the european parliament and the council in the framework of the annual budgetary procedures up to 2020 . for this purpose , the budgetary authority should make use , where appropriate , of all available flexibility mechanisms and other relevant provisions under council regulation no 1311 / 2013 .


### the commission shall be empowered to adopt delegated acts in accordance with article 17 adjusting the target amount provided for in paragraph 5 by a maximum of 10% to better reflect the potential risk of the eu guarantee being called . ### the commission shall be empowered to adopt delegated acts in accordance with article 17 adjusting the target level provided for in paragraph 5 by a maximum of 10% to better reflect the potential risk of the eu guarantee being called .


### in order to enable the efsi to support investments , the union should grant a guarantee of an amount equal to eur 16 000 000 000 . when provided on a portfolio basis , the guarantee coverage should be capped depending upon the type of instrument , such as debt , equity or guarantees , as a percentage of the volume of the portfolio of outstanding commitments . it is expected that when the guarantee is combined with eur 5 000 000 000 to be provided by the eib , that the efsi support should generate eur 60 800 000 000 additional investment by the eib and eif . this eur 60 800 000 000 supported by the efsi is expected to generate a total of eur 315 000 000 000 in investment in the union within the period 2015 to 2017 . guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations . ### in order to enable the efsi to support investments , the union should grant a guarantee of an amount equal to eur 16 000 000 000 . when provided on a portfolio basis , the guarantee coverage should be capped depending upon the type of instrument , such as debt , equity or guarantees , as a percentage of the volume of the portfolio of outstanding commitments . it is expected that when the guarantee is combined with eur 5 000 000 000 to be provided by the eib , that the efsi support should generate eur 60 800 000 000 additional investment by the eib and eif . this eur 60 800 000 000 supported by the efsi is expected to generate a total of at least eur 315 000 000 000 in investment in the union within a period of three years starting from the entry into force of this regulation . guarantees that are attached to projects which are completed without a call on a guarantee are available for supporting new operations within the availability period of the guarantee .


### 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 small mid - cap companies , including start - ups and spin - offs , across the entire 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 and market failures by allowing the eib and the eif , where relevant , 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 economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments and knowledge valorisation within the union . investment has fallen by approximately 15% since its peak in 2007 , impacting all european regions and especially the less developed ones . all of them and in particular those more affected by the crisis suffer from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . it therefore prevents a speedier realisation of the objectives of the union strategy for smart , sustainable and inclusive growth as well as of the process of reducing disparities between regions .


### the efsi should target projects with a higher risk - return profile than existing eib and union instruments to ensure additionality over existing operations . the efsi should finance projects across the union , including in the countries most affected by the financial crisis . the efsi should only be used where financing is not available from other sources on reasonable terms . ### the efsi should finance projects across the union , including in the countries most affected by the financial crisis , to ensure additionality over existing operations . the efsi should only be used where financing is not available from other sources on reasonable terms .


### the commission and the eib shall develop , update and disseminate , on a regular and structured basis , information on current and future investments which significantly contribute to achieving eu policy objectives . ### the commission and the eib shall develop , update and disseminate , on a regular and structured basis , information on all current and future investments in a publically accessible project database that also provides aggregate statistics and time series on a variety of project data , e . g . the costs , structure of the funding , the financing leverage of the efsi contribution , performance - and impact indicators of the projects .


### the eib should regularly evaluate activities supported by the efsi with a view to assessing their relevance , performance and impact and to identifying aspects that could improve future activities . such evaluations should contribute to accountability and analysis of sustainability . ### the eib and the commission should regularly evaluate activities supported by the efsi with a view to assessing their relevance , performance , impact as well as their coordination and consistency with other union policies and instruments , and to identifying aspects that could improve future activities . such evaluations should contribute to accountability and analysis of sustainability .


### the efsi agreement shall provide that the efsi shall be governed by a steering board , which shall determine the strategic orientation , the strategic asset allocation and operating policies and procedures , including the investment policy of projects that efsi can support and the risk profile of the efsi , in conformity with the objectives under article 5 . the steering board shall elect one of its members to be chairperson . ### the efsi agreement shall provide that the efsi shall be governed by an independent&#160 ; steering board , which shall set detailed investment guidelines , determine the strategic orientation , the strategic asset allocation and operating policies and procedures , including the investment policy of projects that efsi can support and the risk profile of the efsi , in conformity with the objectives under article 5 . the steering board shall elect one of its members to be chairperson .


### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of policies which have depressed aggregate demand and market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment , in particular in those regions more effected by the crisis , slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness , potentially preventing a realization of the europe 2020 targets and objectives for smart , sustainable and inclusive growth .


### at the latest [ po insert date : 18 months after the entry into force of this regulation ] the eib shall evaluate the functioning of the efsi . the eib shall submit its evaluation to the european parliament , the council and the commission ; ### at the latest [ po insert date : 12 months after the entry into force of this regulation ] the eib shall evaluate the functioning of the efsi , also with regard to the efsi projects based on the sub - programmes , and evaluate the lifecycle of the targeted investments . the eib shall submit its evaluation to the european parliament , the council and the commission . this evaluation shall be accompanied by an opinion of the court of auditors .


### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers from a lack of private&#160 ; investment contributing to competitiveness and new jobs . the fall of investment is due to market uncertainty regarding the economic future as a result of&#160 ; weak public finances , high public debt and structural imbalances . where&#160 ; public finances have been stabilized&#160 ; and where&#160 ; structural reforms have been carried out , &#160 ; economic growth has picked up and investment levels have&#160 ; risen , although not sufficiently . &#160 ; there is a need to&#160 ; strengthen the attractiveness to invest in&#160 ; europe and in the infrastructure of a modern knowledge economy . investments in science , research&#160 ; and development are essential in order to improve european competitiveness .


### 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 be granted as a guarantee on demand in respect of instruments referred to in article 6 . the objectives of the horizon 2020 programme and the cef shall not , under any circumstances , be affected by the establishment of the guarantee for the efsi .


### the commission shall conclude an agreement with the european investment bank on the establishment of a european fund for strategic investments . ### the commission shall conclude an agreement , based on the terms provided by this regulation , with the european investment bank on the establishment of a european fund for strategic investments and the establishment of a european investment advisory hub . the efsi agreement shall be communicated to the european parliament and the council . for any provisions of the efsi agreement that are not in line with the provisions of this regulation , the commission shall be empowered to adopt delegated acts . for any future changes to the efsi agreement , which are not line with the provisions of this regulation , the commission shall be empowered to adopt delegated acts .


### provided that all relevant eligibility criteria are fulfilled , member states may use european structural investment funds to contribute to the financing of eligible projects that are supported by the eu guarantee . the flexibility of this approach should maximise the potential to attract investors to the areas of investment targeted by the efsi . ### at the level of projects , third parties may co - finance together with efsi on a project - by - project basis or in investment platforms related to specific geographic or thematic sectors . the support of the european structural and investment funds to regional , national and sectorial investment platforms should be possible under certain conditions , which should be provided for by means of delegated acts of the commission .


### 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 for financing or investment operations carried out within the union , or operations between a member state and a country falling within the scope of the european neighbourhood policy including strategic partnership , the enlargement policy , and the european economic area or the european free trade association , or between a member state and an overseas country or territory , as set out in annex ii of the treaty on the functioning of the european union , covered by this regulation and the efsi agreement . the eu guarantee shall be granted as a guarantee on demand in respect of instruments referred to in article 6 .


### the managing director and the deputy managing director shall be appointed by the steering board on a joint proposal of the commission and the eib for a renewable fixed term of three years . ### the managing director and the deputy managing director shall be appointed by the steering board , on a joint proposal of the commission and the eib , following a transparent procedure , for a renewable fixed term of three years .


### the managing director and the deputy managing director shall be appointed by the steering board on a joint proposal of the commission and the eib for a renewable fixed term of three years . ### the managing director and the deputy managing director shall be appointed on the basis of an open and transparent selection procedure . on the basis of such a procedure , conducted in line with eib procedures , the commission shall , after hearing the steering board and upon receiving the consent of the eib , provide a shortlist of candidates to the european parliament for the positions of managing director and deputy managing director . the commission shall , upon receiving the consent of the eib , submit to the european parliament for approval a proposal for the appointment of the managing director and the deputy managing director . following the approval of that proposal , the steering board shall appoint the managing director and the deputy managing director for a once renewable fixed term of three years .


### the eib shall notify olaf promptly and provide it with the necessary information when , at any stage of the preparation , implementation or closure of operations subject to the eu guarantee , it has grounds to suspect that there is a potential case of fraud , corruption , money laundering or other illegal activity that may affect the financial interests of the union . ### the eib shall notify olaf promptly and provide it with the necessary information when , at any stage of the preparation , implementation or closure of operations subject to the eu guarantee , it has grounds to suspect that there is a potential case of conflict of interests , fraud , corruption , money laundering or other illegal activity that may affect the financial interests of the union .


### in accordance with the treaty on the functioning of the european union , infrastructure and project investments supported under efsi should be consistent with state aid rules . to that end , the commission has announced that it will formulate a set of core principles , for the purpose of state aid assessments , which a project will have to meet to be eligible for support under the efsi . if a project meets these criteria and receives support from the efsi , the commission has announced that any national complementary support , will be assessed under a simplified and accelerated state aid assessment whereby the only additional issue to be verified by the commission will be the proportionality of public support . the commission has also announced that it will provide further guidance on the set of core principles with a view to ensuring an efficient use of public funds . ### in accordance with the treaty on the functioning of the european union , infrastructure and project investments supported under efsi should be consistent with state aid rules . to that end , the commission has announced that it will formulate a set of core principles , for the purpose of state aid assessments , which a project will have to meet to be eligible for support under the efsi . if a project meets these criteria and receives support from the efsi , the commission has announced that any national complementary support , will be assessed under a simplified and accelerated state aid assessment whereby the only additional issue to be verified by the commission will be the proportionality of public support . with a view to ensuring an efficient use of public funds , the commission should provide further guidelines to guarantee full consistency with sector specific state aid rules . the requirement for consistency with state aid principles should contribute to the effective use of efsi resources .


### the managing director and the deputy managing director shall be appointed by the steering board on a joint proposal of the commission and the eib for a renewable fixed term of three years . ### on the basis of an open selection process conducted in line with eib procedures , the commission shall provide - with the consent of the eib - to the european parliament a shortlist of three candidates for the appointment of the managing director and a separate shortlist of three candidates for the appointment of the deputy managing director . the european parliament shall select from each list one candidate for each position within a period of one month . the two selected candidates will be appointed for a renewable fixed term of three years .


### payments from the general budget of the union , ### contributions from the general budget of the union ,


### the eib , in cooperation with the eif as appropriate , shall report annually to the european parliament and to the council on eib financing and investment operations . the report shall be made public and include : ### the eib , in cooperation with the eif as appropriate , shall report annually to the european parliament , to the council and to the court of auditors on eib financing and investment operations under this regulation . the annual report shall be made public and include :


### to meet that objective , the eiah shall use the expertise of the eib , the commission , national promotional banks and the managing authorities of the european structural and investment funds . ### to meet that objective , the eiah shall use the expertise of the eib , the commission , national and regional promotional banks and the managing authorities of the european structural , agricultural and investment funds .


### the efsi should target projects with a higher risk - return profile than existing eib and union instruments to ensure additionality over existing operations . the efsi should finance projects across the union , including in the countries most affected by the financial crisis . the efsi should only be used where financing is not available from other sources on reasonable terms . ### the efsi should target projects with a higher risk - return profile than existing eib and union instruments to ensure additionality over existing operations . the efsi should aim at financing projects across the whole of the union by taking into account the criteria of additionality and high risk - profile in its investment policies . the efsi should only be used where financing is not available from other sources .


### 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 and amounts recovered from defaulting debtors where the guarantee fund has already honoured the guarantee to the eib . any remuneration that arises from efsi operations which surmounts the target amount / needs of the guarantee fund shall be transferred to the respective eu budget lines which were reduced in order to establish the efsi guarantee fund .


### member states shall develop , update and disseminate , on a regular and structured basis , information on current and future investment projects in their territory . ### member states , regional and / or local authorities shall develop , update and disseminate , on a regular , transparent and structured basis , information on current and future investment projects in their territory .


### 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 environmentally sound and socially acceptable 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 investments supported by the efsi shall be targeted , as a matter of priority , at sources of new and innovative growth and enable the eu economy to make the transition towards a real sustainable economy .


### throughout the economic and financial crisis , the union has made efforts to promote growth , in particular through initiatives set out in the europe 2020 strategy that put in place an approach for smart , sustainable and inclusive growth . the european investment bank has also strengthened its role in instigating and promoting investment within the union , partly by way of an increase in capital in january 2013 . further action is required to ensure that the investment needs of the union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable investment projects . ### throughout the economic and financial crisis , the union has made efforts to promote growth , in particular through initiatives set out in the europe 2020 strategy , that put in place an approach for smart , sustainable and inclusive growth , and through the european semester for economic policy coordination . the european investment bank has also strengthened its role in instigating and promoting investment within the union , partly by way of an increase in capital in january 2013 . further action is required to ensure that the investment needs of the union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable investment projects .


### the eib should regularly evaluate activities supported by the efsi with a view to assessing their relevance , performance and impact and to identifying aspects that could improve future activities . such evaluations should contribute to accountability and analysis of sustainability . ### the eib and the commission should regularly evaluate activities supported by the efsi with a view to assessing their relevance , performance , impact as well as their coordination and consistency with other union policies and instruments , and to identifying aspects that could improve future activities . such evaluations should contribute to accountability and analysis of sustainability .


### for as long as the only contributors to the efsi are the union and the eib , the number of members and votes within the steering board shall be allocated based on the respective size of contributions in the form of cash or guarantees . ### the steering board shall comprise five members : two appointed by the commission , two by the parliament and one by the eib . the steering board shall elect a chairperson from among its members for a renewable fixed term of three years .


### 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 in the union and to ensure an increased and more easily - accessible and geographical - balanced 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 , with particular priority being assigned to businesses and cooperatives in rural areas and in structurally weak and disadvantaged areas , as well as areas in extremely peripheral locations , as well as to driving forward projects promoting territorial cohesion and interconnection in rural areas .


### 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 and have thorough knowledge of sectors concerned , their specificities as well as local markets . the investment committee should be accountable to a steering board of the efsi , which should supervise the fulfilment of the efsi ' s objectives . the independence of the investment committee is a key factor in ensuring the trust and participation of the private sector in the investment plan . 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 .


### 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 , 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 within the european union .


### in addition , the eu guarantee shall be granted for support of dedicated investment platforms and national promotional banks , via the eib , that invest in operations meeting the requirements of this regulation . in that case , the steering board shall specify policies regarding eligible investment platforms . ### in addition , the eu guarantee shall be granted for support of dedicated investment platforms and national promotional banks and other similar structures , that invest in operations meeting the requirements of this regulation after approval by the investment committee referred to in article 3 . in that case , the steering board shall specify policies , in accordance with article 3 , regarding eligible investment platforms .


### to meet that objective , the eiah shall use the expertise of the eib , the commission , national promotional banks and the managing authorities of the european structural and investment funds . ### to meet that objective , the eiah shall use the expertise of the eib and its existing technical assistance facilities , the commission , national promotional banks and the managing authorities of the european structural and investment funds .


### at the level of projects , third parties may co - finance together with efsi on a project - by - project basis or in investment platforms related to specific geographic or thematic sectors . ### at the level of projects , third parties may co - finance together with efsi on a project - by - project basis or in investment platforms .


### 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 micro , 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 . it is important that the efsi takes into account the specific investment conditions in countries with less developed financial markets .


### 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 for project development , preparation and aggregation across the union , by building on the expertise of the commission , the eib , national promotional banks , the managing authorities of the european structural and investment funds and best practices from projects such as elena , innovfin and the eeif . this should establish a single point of entry for questions related to technical assistance for investments within the union where possible providing technical assistance on a decentralised basis . the setting up of the eiah as a single entry point and the new services provided by it shall in no way alter the objective of existing technical assistance programmes or affect the quality or capacity of these in carrying out their dedicated tasks .


### at the request of the european parliament , the managing director shall participate in a hearing of the european parliament on the performance of the efsi . ### at the request of the european parliament , and at least twice a year , the managing director , the chairperson of the steering board , the commissioner responsible for the union budget and the chair of the eib board of directors shall participate in annual discharge hearings of the european parliament on the performance and financial management of the efsi .


### 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 . subject to the consent of the eib , 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 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 initially be met by the gradual transfer 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 .


### article 12 evaluation and review at the latest [ po insert date : 18 months after the entry into force of this regulation ] the eib shall evaluate the functioning of the efsi . the eib shall submit its evaluation to the european parliament , the council and the commission ; at the latest [ po insert date : 18 months after the entry into force of this regulation ] the commission shall evaluate the use of the eu guarantee and the functioning of the guarantee fund , including the use of endowments according to article 8 . the commission shall submit its evaluation to the european parliament and the council . 2 . by 30 june 2018 and every three years thereafter : the eib shall publish a comprehensive report on the functioning of the efsi ; the commission shall publish a comprehensive report on the use of the eu guarantee and the functioning of the guarantee fund . 3 . the eib , in cooperation with the eif as appropriate , shall contribute to and provide the necessary information for the commission evaluation and report under paragraph 1 and 2 respectively . 4 . the eib and eif shall on a regular basis provide the european parliament , the council and the commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the eib and eif under this regulation . 5 . at the latest [ po insert date three years after the entry into force of this regulation ] , the commission shall submit a report to the european parliament and the council on the application of this regulation accompanied by any relevant proposal . ### article 12 evaluation at the latest [ po insert date : 12 months after the entry into force of this regulation ] the eib shall submit an evaluation on the functioning of the efsi to the european parliament , the council and the commission ; at the latest [ po insert date : 12 months after the entry into force of this regulation ] the commission shall evaluate the use of the eu guarantee and the functioning of the guarantee fund , including the use of endowments according to article 8 . the commission shall annually submit its evaluation to the european parliament and the council . 2 . annually , and 6 months after the date of termination of the agreement of efsi : the eib shall publish a comprehensive report on the functioning of the efsi ; the commission shall publish a comprehensive report on the use of the eu guarantee and the functioning of the guarantee fund . 3 . the eib , in cooperation with the eif as appropriate , shall contribute to and provide the necessary information for the commission evaluation and report under paragraph 1 and 2 respectively . 4 . the eib and eif shall on a regular basis provide the european parliament , the council and the commission with all their independent evaluation reports which assess the practical results achieved by the specific activities of the eib and eif under this regulation . 5 . at the latest [ po insert date three years after the entry into force of this regulation ] , the commission shall submit a report to the european parliament and the council on the application of this regulation and the evaluation of the eligibility criteria applied by the investment committee and defined in article 5 , accompanied by any relevant proposal .


### investment in education and training , health , research and development , information and communications technology and innovation ; ### research and development and innovation ;


### the eib should regularly evaluate activities supported by the efsi with a view to assessing their relevance , performance and impact and to identifying aspects that could improve future activities . such evaluations should contribute to accountability and analysis of sustainability . ### the eib and the investment committee should regularly evaluate and report on activities supported by the efsi with a view to assessing their relevance , performance and impact and to identifying aspects that could improve future activities . such evaluations and reporting should be made public and contribute to accountability and analysis of sustainability .


### 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 investment committee shall be composed of eight independent experts and the managing director . independent experts shall have a high level of relevant market experience in project finance , knowledge of sectors concerned and their specificities and / or macroeconomics . at least one expert shall possess relevant expertise to assess the employment and social effects of the projects . all experts shall be appointed by the steering board for a renewable fixed term of three years on the basis of their competencies following a transparent and independent procedure . all experts shall declare in a written form that they have no conflict of interest regarding investment operation .


### the efsi should be established within the eib in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible . the work of the efsi on providing finance to small and medium enterprises and small mid - cap companies should be channelled through the european investment fund to benefit from its experience in these activities . ### the efsi should be established within the eib in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact and benefit as quickly as possible . the work of the efsi on providing finance to small and medium enterprises , particularly to enterprises operating in rural areas , and small mid - cap companies should be channelled through the european investment fund to benefit from its experience in these activities .


### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments and knowledge valorisation within the union . investment has fallen by approximately 15% since its peak in 2007 , impacting all european regions and especially the less developed ones . all of them and in particular those more affected by the crisis suffer from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . it therefore prevents a speedier realisation of the objectives of the union strategy for smart , sustainable and inclusive growth as well as of the process of reducing disparities between regions .


### the commission shall , by 30 june of each year , send to the european parliament , the council and the court of auditors an annual report on the situation of the guarantee fund and the management thereof in the previous calendar year . ### the commission shall , by 31 march of each year , send to the european parliament , the council and the court of auditors the annual accounts , the financial statement and an annual report in accordance with regulation no 996 / 2012 on the situation of the efsi and the management thereof in the previous calendar year . this report shall also give information on the adequacy of the level of the eu guarantee and , if necessary , recommendations on adjusting its level .


### the efsi agreement shall provide for the creation of a european investment advisory hub within the eib . the eiah shall have as its objective to build upon existing eib and commission advisory services in order to provide advisory support for investment project identification , preparation and development and act as a single technical advisory hub for project financing within the union . this shall include support on the use of technical assistance for project structuring , use of innovative financial instruments , use of public - private partnerships and advice , as appropriate , on relevant issues of eu legislation . ### the efsi agreement shall provide for the creation of a european investment advisory hub within the eib . the eiah shall be transparent and independent . the eiah shall have as its objective to build upon existing eib and commission advisory services in order to provide advisory support for investment project identification , preparation and development and act as a single technical advisory hub for project financing within the union . this shall include support on the use of technical assistance for project structuring , use of innovative financial instruments , use of public - private partnerships , and advice , as appropriate , on relevant issues of eu legislation . the eiah , in cooperation with the commission , shall introduce a communication strategy to inform the public of its activities .


### the efsi should be established within the eib in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible . the work of the efsi on providing finance to small and medium enterprises and small mid - cap companies should be channelled through the european investment fund to benefit from its experience in these activities . ### the efsi should be established within the eib in order to benefit from its experience and proven track record and in order for its operations to start to have a positive impact as quickly as possible . the work of the efsi on providing finance to small and medium - sized enterprises and mid - cap companies should be channelled through the european investment fund to benefit from its experience in these activities .


### the efsi should target projects with a higher risk - return profile than existing eib and union instruments to ensure additionality over existing operations . the efsi should finance projects across the union , including in the countries most affected by the financial crisis . the efsi should only be used where financing is not available from other sources on reasonable terms . ### the efsi should target projects with a higher risk - return profile than those targeted by existing eib and union instruments to ensure additionality over existing operations . the efsi should finance projects across the union , especially in the countries most affected by the economic and financial crisis . the efsi should only be used where financing is not available from other sources on reasonable terms .


### from 1 january 2019 , if as a result of calls on the guarantee , the level of the guarantee fund falls below 50% of the target amount , the commission shall submit a report on exceptional measures that may be required to replenish it . ### from 1 january 2019 , if as a result of calls on the guarantee , the resources of the guarantee fund fall below 50% of the target amount , the commission shall submit a report on exceptional measures that may be required to replenish it .


### the eu guarantee shall be granted for eib financing and investment operations approved by the investment committee referred to in article 3 or funding to the eif in order to conduct eib financing and investment operations in accordance with article 7 . the operations concerned shall be consistent with union policies and support any of the following general objectives : ### the eu guarantee shall only be granted for eib financing and investment operations approved by the investment committee or funding to the eif in order to conduct eib financing and investment operations in accordance with article 7 and approved by the investment committee . the operations referred to in the first subparagraph shall be consistent with union policies , economically and technically viable , and shall provide additionality , maximise where possible the mobilisation of private sector capital , be complementary to existing union funds or aid schemes , provide european added value , contribute to achieving the europe 2020 targets and support any of the following general objectives :


### in addition , the eu guarantee shall be granted for support of dedicated investment platforms and national promotional banks , via the eib , that invest in operations meeting the requirements of this regulation . in that case , the steering board shall specify policies regarding eligible investment platforms . ### in addition , the eu guarantee shall be granted for support of dedicated investment platforms and national and regional promotional banks , via the eib , that invest in operations meeting the requirements of this regulation . furthermore , in order to treat energy efficiency as an energy source in its own right , the eu guarantee shall only be granted for eib financing and investment operations if a comparison , on the basis of a level playing - field where energy efficiency and demand - side response are competing on equal terms with generation capacity , is carried out whenever it is technically feasible and in accordance with the principles and criteria set out in annex 1a , while having in mind justifiable urgent and exceptional energy security considerations .


### the eu guarantee shall be granted for eib financing and investment operations approved by the investment committee referred to in article 3 or funding to the eif in order to conduct eib financing and investment operations in accordance with article 7 . the operations concerned shall be consistent with union policies and support any of the following general objectives : development of infrastructure , including in the areas of transport , particularly in industrial centres ; energy , in particular energy interconnections ; and digital infrastructure ; investment in education and training , health , research and development , information and communications technology and innovation ; expansion of renewable energy and energy and resource efficiency ; infrastructure projects in the environmental , natural resources , urban development and social fields ; providing financial support for the companies referred to in article 1 , including working capital risk financing . in addition , the eu guarantee shall be granted for support of dedicated investment platforms and national promotional banks , via the eib , that invest in operations meeting the requirements of this regulation . in that case , the steering board shall specify policies regarding eligible investment platforms . ### the eu guarantee shall be granted for eib financing and investment operations approved by the investment committee referred to in article 3 or for funding to the eif in accordance with article 7 in order to conduct eib financing and investment operations approved by that investment committee . the operations concerned shall be consistent with union policies and shall support one or more of the following general objectives : development of transport infrastructure , particularly in industrial centres ; development and modernisation of energy infrastructure in accordance with the energy union priorities and the 2020 , 2030 and 2050 climate and energy frameworks , in particular interconnections , smart grids at distribution level , energy storage and the synchronisation of markets ; expansion of renewable energy , resource efficiency , energy efficiency and energy savings , with a particular focus on reducing demand through demand - side management and the refurbishment of buildings ; development of information and communication technologies , of digital and telecom infrastructures and of broadband networks across the entire union ; investment in innovation , research and development , including research infrastructure , pilot and demonstration projects , collaborations between the academia and industry , and knowledge and technology transfer ; investment in education , training , entrepreneurial skills ; investment in innovative health solutions , such as ehealth and new effective medicines , and in the social sector ; investment in the cultural and creative industries ; investment in projects and infrastructure in the field of environmental protection and management ; strengthening of eco - system services and sustainable urban development ; financial support , including the provision of working capital risk financing , for smes , start - ups , spin - offs and small mid - cap companies through the eif , and for mid - cap companies , in order to ensure technology leadership in innovative and sustainable sectors ; financing of projects which are in line with the objectives of horizon 2020 and the connecting europe facility ; the efsi shall support only projects and operations that : are consistent with union policies and create smart , sustainable and inclusive growth ; that comply with the objectives of article 9 and that are in line with article 10 and annex i of regulation no 1303 / 2013 ; are economically and technically viable ; ensure additionality ; maximise the mobilisation of private sector capital ; have a net societal benefit , including the creation of sustainable jobs , taking into account the costs and benefits of the project throughout its expected lifetime ; in addition , the eu guarantee shall be granted , through the eib , for financing and investment operations conducted by dedicated investment platforms and national promotional banks , after approval by the investment committee referred to in article 3 . the operations concerned shall be consistent with union policies and shall comply with the eligibility criteria laid down in article 5 . the steering board shall specify policies regarding eligible investment platforms .


### 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 investment committee shall be composed of eight independent experts and the managing director . independent experts shall have a high level of relevant market experience in project structuring and project financing , as well as macroeconomic expertise . the investment committee shall have a pluridisciplinary composition encompassing a broad range of expertise in various sectors , such as research and development , transport and smes . it shall be appointed by the steering board for a renewable fixed term of three years .