### whereas the level of overall investment in the union is increasing , investment in higher - risk activities such as research and innovation is still inadequate . the resulting underinvestment in research and innovation is damaging to the industrial and economic competitiveness of the union and the quality of life of its citizens . the investeu fund should provide the appropriate financial products to cover different stages in the innovation cycle and a wide range of stakeholders , in particular to allow the upscaling of and deployment of solutions at a commercial scale in the union , in order to make such solutions competitive on world markets . ### whereas the level of overall investment in the union is increasing , investment in higher - risk activities such as research and innovation is still inadequate . given the public funding of research and innovation activities drives productivity growth and is crucial to boost private research and innovation activities , the resulting underinvestment in research and innovation is damaging to the industrial and economic competitiveness of the union and the quality of life of its citizens . the investeu fund should provide the appropriate financial products to cover different stages in the innovation cycle and a wide range of stakeholders , in particular to allow the upscaling of and deployment of solutions at a commercial scale in the union , in order to make such solutions competitive on world markets , and to promote eu excellence in sustainable technologies at a global level . in order to address the need to support investment in higher - risk activities such as research and innovation , it is essential that horizon europe , in particular the eic , works in synergy with the financial products to be deployed under investeu . additionally , innovative smes and start - ups face difficulties in access to finance , especially those focusing on intangible assets , hence the need for the eic to work in close complementarity with the dedicated financial products under investeu to ensure a continuity of support for such smes . in that regard , the experience gained from the financial instruments deployed under horizon 2020 such as innovfin and the loan guarantee for smes under cosme should serve as a strong basis to deliver this targeted support .


### the contribution of the investeu fund to the achievement of the climate target will be tracked through an eu climate tracking system developed by the commission in cooperation with implementing partners and using in an appropriate way the criteria established by [ regulation on the establishment of a framework to facilitate sustainable investment14 ] for determining whether an economic activity is environmentally sustainable . __________________ 14 com353 . ### the contribution of the investeu fund to the achievement of the climate target will be tracked through a tracking system developed by the commission by means of delegated acts in cooperation with implementing partners and using in an appropriate way the criteria established by [ regulation on the establishment of a framework to facilitate sustainable investment14 ] for determining whether an economic activity is exhibiting special mitigation impacts or contributing to building climate resilience . __________________ 14 com353 .


### the investeu advisory hub shall have local presence , where necessary . it shall be established in particular in member states or regions that face difficulties in developing projects under the investeu fund . the investeu advisory hub shall assist in the transfer of knowledge to the regional and local level with a view to building up regional and local capacity and expertise for support referred to in paragraph 1 . ### the investeu advisory hub shall have a presence , in each member state , with a particular focus on ensuring a presence in regions that face difficulties in developing projects under the investeu fund in order to support the exchange of good practices and information and to increase knowledge of investment opportunities in the regions as well . the hub shall establish a direct dialogue between businesses , intermediaries and community institutions . the investeu advisory hub shall assist in the transfer of knowledge to the regional and local level with a view to building up regional and local capacity and expertise for support referred to in paragraph 1 .


### twice a year , the conclusions of the investment committee rejecting the use of the eu guarantee shall be transmitted to the european parliament and to the council , subject to strict confidentiality requirements . ### twice a year , the investment committee shall submit to the european parliament and to the council a list of all the conclusions as well as the scoreboards relating to all those decisions . that submission shall be subject to strict confidentiality requirements .


### the competitiveness of the union , including innovation and digitisation ; ### the competitiveness of the union , including research , innovation and digitisation ;


### in addition , each implementing partner shall submit every six months a report to the commission on the financing and investment operations covered by this regulation , broken down by the eu compartment and the member state compartment by member state , as appropriate . the report shall include an assessment of compliance with the requirements on the use of the eu guarantee and with the key performance indicators laid down in annex iii to this regulation . the report shall also include operational , statistical , financial and accounting data on each financing and investment operation and at the compartment , policy window and the investeu fund level . one of those reports shall contain the information the implementing partners shall provide in accordance with [ article 155 ] of the [ financial regulation ] . ### in addition , each implementing partner shall submit every six months a report to the commission on the financing and investment operations covered by this regulation , broken down by the eu compartment and the member state compartment by member state , as appropriate . the report shall include an assessment of compliance with the requirements on the use of the eu guarantee and with the key performance indicators laid down in annex iii to this regulation . the report shall also , where appropriate and proportional , include operational , statistical , financial and accounting data on each financing and investment operation and at the compartment , policy window and the investeu fund level . one of those reports shall contain the information the implementing partners shall provide in accordance with [ article 155 ] of the [ financial regulation ] . wherever possible , those reports should be identical to reports already required at national or regional level . the commission shall compile and assess implementing partners’ reports and submit a summary in the form of public annual reports , providing information on the level of implementation of the programme against its objectives and performance indicators , indicating risks and opportunities for the financing and investment operations supported by the investeu programme .


### in order to ensure a wide geographic outreach of the advisory services across the union and to successfully leverage local knowledge about the investeu fund , a local presence of the investeu advisory hub should be ensured , where needed , taking into account existing support schemes , with a view to provide tangible , proactive , tailor - made assistance on the ground . ### in order to ensure a wide geographic outreach of the advisory services across the union and to successfully leverage local knowledge about the investeu fund , a local presence of the investeu advisory hub should be ensured , where needed , complementing existing support schemes and the presence of local partners , with a view to provide tangible , proactive , tailor - made assistance on the ground . in order to facilitate the provision of advisory support at local level , the investeu advisory hub should cooperate with national , regional or local promotional banks or institutions , and the managing authorities of the european structural and investment funds , as well as benefit from and make use of their expertise . in member states where national , regional or local promotional banks or institutions do not exist , the investeu advisory hub should provide , where appropriate , and at the request of the member state concerned , proactive advisory support on the establishment of such bank or institution .


### twice a year , the conclusions of the investment committee rejecting the use of the eu guarantee shall be transmitted to the european parliament and to the council , subject to strict confidentiality requirements . ### twice a year , the conclusions , the criteria applied and the scoreboard indicators related to of the investment committee rejecting the use of the eu guarantee shall be transmitted to the european parliament and to the council , subject to strict confidentiality requirements .


### comply with the conditions set out in [ points to of article 209 ] of [ the financial regulation ] , in particular with the additionality requirement set out in [ point of article 209 ] of [ the financial regulation ] and , where appropriate , maximising private investment in accordance with [ point of article 209 ] of the [ financial regulation ] ; ### comply with the conditions set out in [ points to of article 209 ] of [ the financial regulation ] , in particular by realising additionality as set out in article [ 8a ] , achieving a leverage and multiplier effect by mobilising a global investment exceeding the size of the union guarantee , and where appropriate , maximising private investment in accordance with [ point of article 209 ] of the [ financial regulation ] ;


### to support financing and investment operations in research , innovation and digitisation ; ### to support financing and investment operations in education , research , innovation and digitisation ;


### in order to ensure a wide geographic outreach of the advisory services across the union and to successfully leverage local knowledge about the investeu fund , a local presence of the investeu advisory hub should be ensured , where needed , taking into account existing support schemes , with a view to provide tangible , proactive , tailor - made assistance on the ground . ### in order to ensure a wide geographic outreach of the advisory services across the union and to successfully leverage local knowledge about the investeu fund , a presence of the investeu advisory hub should be ensured in every member state , with a particular focus on ensuring a presence in regions that face difficulties in developing projects under the investeu fund , taking into account existing support schemes , with a view to provide tangible , proactive , tailormade assistance on the ground . the expertise of national promotional banks in generating , bundling and financing projects should be pooled into advisory hubs and their role as implementing partners should continue to be valued .


### artificial intelligence ; ### artificial intelligence in line with the digital europe programme , particularly with regards to ethics ;


### sustainable infrastructure policy window : comprises sustainable investment in the areas of transport , energy , digital connectivity , supply and processing of raw materials , space , oceans and water , waste , nature and other environment infrastructure , equipment , mobile assets and deployment of innovative technologies that contribute to the environmental or social sustainability objectives of the union , or to both , or meet the environmental or social sustainability standards of the union ; ### sustainable infrastructure policy window : comprises sustainable investment in the areas of transport , including multimodal transport , road safety , tourism , energy , in particular the increased deployment of renewable energy , energy efficiency in line with the 2030 and 2050 energy frameworks , improving interconnection levels , digital connectivity and access including in rural areas , supply and processing of raw materials , space , oceans , inland water , waste avoidance and the circular economy , nature and other environment infrastructure , equipment , mobile assets and deployment of innovative technologies that contribute to the environmental or social sustainability objectives of the union , or to both , and meet the environmental or social sustainability standards of the union ;


### conclusions of the investment committee approving the support of the eu guarantee to a financing or investment operation shall be publicly accessible and shall include the rationale for the approval . the publication shall not contain commercially sensitive information . ### conclusions of the investment committee approving the support of the eu guarantee to a financing or investment operation shall be publicly accessible and shall include the rationale for the approval , the criteria applied and the scoreboard of indicators . particular focus should be given to compliance with the additionality criterion . the publication shall not contain commercially sensitive information .


### low infrastructure investment rates in the union during the financial crisis undermined the union ' s ability to boost sustainable growth , competitiveness and convergence . sizeable investments in the european infrastructure are fundamental to meet the union ' s sustainability targets , including the 2030 energy and climate targets . accordingly , support from the investeu fund should target investments into transport , energy , including energy efficiency and renewable energy , environmental , climate action , maritime and digital infrastructure . to maximise the impact and the value added of union financing support , it is appropriate to promote a streamlined investment process enabling visibility of the project pipeline and consistency across relevant union programmes . bearing in mind security threats , investment projects receiving union support should take into account principles for the protection of citizens in public spaces . this should be complementary to the efforts made by other union funds such as the european regional development fund providing support for security components of investments in public spaces , transport , energy and other critical infrastructure . ### low infrastructure investment rates in the union during the financial crisis undermined the union ' s ability to boost sustainable growth , competitiveness and convergence . sizeable investments in the european infrastructure are fundamental to meet the sustainability targets of the union and its member states , including the 2030 energy and climate targets as well as the objectives adopted in the paris agreement . accordingly , support from the investeu fund should target investments into clean transport , energy , especially energy efficiency and renewable energy , environmental , climate action , maritime and digital infrastructure , with particular attention for vital infrastructural and social investments related to the transformation of regions in transition . in this context , synergy should also be sought , in so far as possible , with regional and national policy objectives , such as the removal of asbestos from roofs , homes and soil . to maximise the impact and the value added of union financing support , it is appropriate to promote a streamlined investment process enabling visibility of the project pipeline and consistency across relevant union programmes . bearing in mind security threats , investment projects receiving union support should take into account principles for the protection of citizens in public spaces . this should be complementary to the efforts made by other union funds such as the european regional development fund providing support for security components of investments in public spaces , transport , energy and other critical infrastructure .


### conclusions of the investment committee approving the support of the eu guarantee to a financing or investment operation shall be publicly accessible and shall include the rationale for the approval . the publication shall not contain commercially sensitive information . ### conclusions of the investment committee approving the support of the eu guarantee to a financing or investment operation shall be publicly accessible and shall include the rationale for the approval . they shall also refer to the global assessment stemming from the scoreboard of indicators referred to in article 18 . where applicable , the investment committee shall include in the list of conclusions approving the support of the eu guarantee information on the operations , in particular their description , the identity of the promoters or financial intermediaries , and the objectives of the project . the publication shall not contain commercially sensitive information . in the case of commercially sensitive decisions , the investment committee shall make public such decisions and information concerning promoters or financial intermediaries at the date of closing of the relevant financing or any earlier date when commercial sensitivity ends .


### where the customs infringement relates to specific goods , a pecuniary fine up to 30 % of the value of the goods ; ### where the customs infringement relates to specific goods , a pecuniary fine of between 10% and 30 % of the value of the goods or of the duties evaded ;


### where the customs infringement is not related to specific goods , a pecuniary fine up to eur 22 500 . ### where the customs infringement is not related to specific goods , a pecuniary fine from eur 7 500 to eur 22 500 .


### where the customs infringement relates to specific goods , a pecuniary fine up to 15 % of the value of the goods ; ### where the customs infringement relates to specific goods , a pecuniary fine of between 5% and 15 % of the value of the goods or of the duties evaded ;


### contribute to economic and social development , with particular focus on sustainability and job creation , thus addressing root causes of migration and contributing to sustainable reintegration of returned migrants in their countries of origin ; ### contribute to economic and social development , with particular focus on poverty eradication , sustainability and fostering decent employment , economic opportunities and entrepreneurship , promoting , in particular , gender equality and the empowerment of women and young people , thus addressing specific root causes of migration , enhancing resilience and contributing to the sustainable reintegration of migrants returned to their countries of origin , with due regard to the strengthening of the rule of law , good governance and human rights ;


### the purpose of the efsd as an integrated financial package shall be to support through the supply of financing capacity in the form of grants , guarantees and other financial instruments to eligible counterparts investments and increased access to financing starting in african and neighbourhood partner countries . ### the purpose of the efsd as an integrated financial package shall be to foster sustainable and inclusive economic and social development and promote socio - economic resilience of partner countries by supporting investments and increased access to financing through the supply of financing capacity in the form of grants , guarantees and other financial instruments to eligible counterparts investments and increased access to financing starting in african and neighbourhood partner countries , while maximising additionality , delivering innovative products and crowding in private sector funds .


### the eip should provide an integrated financial package to finance investments starting in regions of africa for countries that are signatories to the partnership agreement between the members of the african , caribbean and pacific group of states of the one part , and the european community and its member states , of the other part , signed in cotonou on 23 june 200022 and the neighbourhood countries , thereby creating growth and employment opportunities , maximising additionality , delivering innovative products , and crowding - in private sector funds . __________________ 22 oj l 317 , 15 . 12 . 2000 as last amended by oj l 287 , 4 . 11 . 2010 ### the european fund for sustainable development , as part of the eip , should provide an integrated financial package to finance and attract investments fostering sustainable and inclusive economic and social development and promoting the socio - economic resilience of partner countries , while maximising additionality , addressing market failures and sub - optimal investment situations , and crowding - in private sector funds . the efsd’s operations should be clearly distinct from , and complementary to , other support , in particular the external lending mandate operations managed by the european investment bank .


### moreover , the strategic board should support the commission in setting strategic guidance and overall investment goals . the strategic board should also support coordination and coherence between the regional platforms . this should ensure complementarity of the various instruments in external action . the strategic board should be co - chaired by the commission and the high representative of the union for foreign affairs and security policy to ensure consistency and coherence with union external policy objectives and partnership frameworks with third countries . ### the strategic board should be co - chaired by the commission and the high representative in order to ensure consistency and coherence with union external policy objectives , partnership frameworks with third countries and with the union ' s other efforts addressing the root causes of migration , as well as policy coherence for development .


### an assessment of the added value , the mobilisation of private sector resources , the estimated and actual outputs and the outcomes and impact of the financing and investment operations covered by the efsd guarantee on an aggregated basis , including the impact on employment creation ; ### an assessment of the additionality , the mobilisation of private sector resources , the estimated and actual outputs and the outcomes and impact of the financing and investment operations covered by the efsd guarantee on an aggregated basis , including the impact on decent job creation , climate change , the eradication of poverty and on the way in which the root causes of migration are addressed ;


### an assessment of the added value of financing and investment operations of the eligible counterparts , and of the aggregate risk associated with those operations ; ### an assessment of the additionality and added value of financing and investment operations of the eligible counterparts , and of the aggregate risk associated with those operations ;


### in order to increase the impact of the efsd guarantee in view of the needs in the regions concerned , member states should have the possibility of providing contributions in the form of a guarantee or cash . those contributions could be earmarked by region , sector or investment window . ### in order to increase the impact of the efsd guarantee in view of the needs in the regions concerned , member states and efta countries should have the possibility of providing contributions in the form of a guarantee or cash . those contributions could be earmarked by countries , region , sector or investment window .


### the strategic board shall be composed of representatives of the commission and of the high representative of the union for foreign affairs and security policy , of the member states and of the eib . the commission may invite other contributors to become members of the strategic board having regard where appropriate to the view of the board . partner countries and relevant regional organisations , the eligible counterparts and the european parliament may be given observer status , where appropriate . the strategic board shall be co - chaired by the commission and the high representative . ### the strategic board shall be composed of representatives of the commission and of the high representative of the union for foreign affairs and security policy , of the contributing member states and of the eib . the commission may invite other contributors to become members of the strategic board having regard where appropriate to the view of the board . the european parliament shall have observer status . observers designated by parliament shall have the right to contribute to the deliberations without the right to vote . partner countries and relevant regional organisations and the eligible counterparts may be given observer status , where appropriate . the strategic board shall be co - chaired by the commission and the high representative .


### target socio - economic sectors , in particular infrastructure including sustainable energy , water , transport , information and communications technologies , environment , sustainable use of natural resources and blue growth , social infrastructure , human capital , in order to improve the socio - economic environment ; ### strengthen socio - economic sectors , in particular infrastructure including sustainable energy , water , transport , information and communications technologies , environment , sustainable use of natural resources and blue growth , social infrastructure , human capital , in order to improve the socio - economic environment ;


### the commission may define investment windows for specific regions or partner countries or for both , for specific sectors , for specific projects or for specific categories of final beneficiaries or for both to be funded by instruments referred to in article 9 to be covered by the efsd guarantee up to a fixed amount . all requests for financial support within investment windows shall be made to the commission . ### the commission shall define investment windows for specific regions or partner countries or for both , for specific sectors , for specific projects or for specific categories of final beneficiaries or for both to be funded by instruments referred to in article 9 to be covered by the efsd guarantee up to a fixed amount . the choice of investment windows shall be duly justified by an analysis of the market failure or sub - optimal investment situations . such analysis shall be carried out by the commission in cooperation with potentially eligible counterparts and stakeholders . investment windows shall be defined with a view to allocating a significant share of the efsd guarantee to fragile and conflict - affected countries , landlocked countries and least - developed countries .


### on a case by case basis the commission may allow combined financing from different union instruments . ### on a case by case basis the commission may allow combined financing from different union instruments to the extent that it is needed for the success of the investment project backed by the efsd .


### the union ' s ambitious external investment plan is needed to support investments starting in africa and the union ' s neighbourhood as a means to promote the sustainable development goals of the united nations 2030 agenda for sustainable development as well as the commitments under the recently revised european neighbourhood policy thus addressing root causes of migration . it should also contribute to the implementation of the paris agreement on climate change . ### the union ' s ambitious external investment plan is needed to support investments starting in africa and the union ' s neighbourhood as a means to promote the sustainable development goals of the united nations 2030 agenda for sustainable development , in particular poverty eradication , as well as the commitments under the recently revised european neighbourhood policy and the new partnership framework with third countries under the european agenda on migration thus addressing migratory pressures stemming from poverty , underdevelopment , inequality , demographic growth , lack of employment and economic opportunities as well as from climate change . it should also contribute to the implementation of the paris agreement on climate change .


### the strategic board shall be composed of representatives of the commission and of the high representative of the union for foreign affairs and security policy , of the member states and of the eib . the commission may invite other contributors to become members of the strategic board having regard where appropriate to the view of the board . partner countries and relevant regional organisations , the eligible counterparts and the european parliament may be given observer status , where appropriate . the strategic board shall be co - chaired by the commission and the high representative . ### the strategic board shall be composed of representatives of the commission and of the high representative , of the member states and of the eib . the commission may invite other contributors to become members of the strategic board having regard where appropriate to the view of the board . the european parliament shall have observer status . observers designated by the european parliament shall have the right to contribute to the deliberations without the right to vote . partner countries and relevant regional organisations and the eligible counterparts may be given observer status , where appropriate . the strategic board shall be co - chaired by the commission and the high representative .


### provide finance in favour of micro - , small - and medium - sized enterprises with a particular focus on private sector development ; ### support private sector development , with a particular focus on local companies and micro , small and medium - sized enterprises ;


### in their financing and investment operations , the eligible counterparts shall not support any activities carried out for illegal purposes , including money laundering , terrorist financing , organised crime , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the union . the eligible counterparts shall not participate in any financing or investment operation through a vehicle located in a non - cooperative jurisdiction , in accordance with its policy towards weakly regulated or non - cooperative jurisdictions based on policies of the union , the organisation for economic co - operation and development or the financial action task force . ### in their financing and investment operations , the eligible counterparts shall not support any activities carried out for illegal purposes , including money laundering , terrorist financing , organised crime , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the union . in particular , the eligible counterparts shall neither participate in any financing or investment operation through a vehicle located in a jurisdiction that does not cooperate with the union in relation to the application of the internationally agreed tax standards on transparency and the exchange of information nor maintain business relations with entities established in such a jurisdiction . in their financing and investment operations covered by this regulation , the eligible counterparts shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes , or practices that do not comply with union tax good governance principles , as set out in union law , including commission recommendations and communications . when concluding agreements with financial intermediaries , the eligible counterparts shall transpose the requirements referred to in this paragraph in the relevant contracts and shall request country - by - country reporting concerning their observance .


### maximise private sector leverage by addressing bottlenecks to investment . ### maximise private sector leverage , with a particular focus on micro - , small and medium - sized enterprises by addressing bottlenecks to investment .


### by 31 december 2020 , the commission shall evaluate the functioning of the efsd . the commission shall submit its evaluation report to the european parliament and the council , containing an independent evaluation of the application of this regulation . this report shall be submitted without delay by the commission in the event that the approved financing and investment operations absorb in full the amount of the efsd guarantee available before 30 june 2020 . ### by 31 december 2019 , the commission shall evaluate the functioning of the efsd and its effective contribution to the purpose and objectives of this regulation . the commission shall submit its evaluation report to the european parliament and the council , containing an independent evaluation of the application of this regulation , accompanied by a reasoned proposal with a view to reviewing or amending this regulation , as appropriate , in particular with a view to extending the initial investment period referred to in article 7 .


### maximise the mobilisation of private sector capital . ### maximise , wherever relevant , the mobilisation of private sector capital ;


### provide finance in favour of micro - , small - and medium - sized enterprises with a particular focus on private sector development ; ### provide financial support to private sector development with a particular focus on micro - , small - and medium - sized enterprises , while addressing market failures and limiting market distortions ;


### ' additionality ' means the principle ensuring that the efsd guarantee support may not be aimed at replacing the support of a member state , private funding or another union financial intervention , as well as that it is aimed at addressing market failures and avoiding crowding out other public or private investments . ### ' additionality ' means the principle ensuring that the efsd contributes to sustainable development by operations which address market failures or sub - optimal investment situations and which could not have been carried out or could not have been carried out to the same extent without efsd support . efsd operations may not be aimed at replacing the support of a member state , private funding or another union financial intervention and shall avoid crowding out other public or private investments . projects supported by the efsd shall typically have a higher risk profile than the portfolio of investments supported by the eligible counterparts under their normal investment policies before the entry into force of this regulation .


### the purpose of the efsd as an integrated financial package shall be to support through the supply of financing capacity in the form of grants , guarantees and other financial instruments to eligible counterparts investments and increased access to financing starting in african and neighbourhood partner countries . ### the purpose of the efsd as an integrated financial package shall be to foster sustainable and inclusive economic and social development and promote socio - economic resilience of partner countries by supporting investments and increased access to financing through the supply of financing capacity in the form of grants , guarantees and other financial instruments to eligible counterparts investments and increased access to financing starting in african and neighbourhood partner countries , while maximising additionality , delivering innovative products and crowding in private sector funds .


### the financing and investment operations eligible for support through the efsd guarantee shall be consistent and aligned with union policies , in particular development and neighbourhood policies of the union , the partner countries ' strategies and policies and aim at supporting the following general objectives : ### the financing and investment operations eligible for support through the efsd guarantee shall be in line with the purpose of the efsd as described in article 3 . they shall be consistent and aligned with union policies , in particular development and neighbourhood policies of the union , as well as the partner countries ' strategies and policies . operations shall take into account other eu and international support to ensure complementarity with other initiatives and aim at supporting the following general objectives :


### an assessment of the added value , the mobilisation of private sector resources , the estimated and actual outputs and the outcomes and impact of the financing and investment operations covered by the efsd guarantee on an aggregated basis , including the impact on employment creation ; ### an assessment of the additionality and added value , the mobilisation of private sector resources , the estimated and actual outputs and the outcomes and impact of the financing and investment operations covered by the efsd guarantee on an aggregated basis , including the impact on decent job creation , climate change , the eradication of poverty and on the way in which the root causes of migration are addressed ;


### the efsd shall contribute to the achievement of the sustainable development goals of the 2030 agenda with a particular focus on sustainable growth , job creation , socio - economic sectors and on the support to micro , small and medium sized enterprises , thus addressing root causes of migration and contributing to sustainable reintegration of returned migrants in their countries of origin while maximising additionality , delivering innovative products and crowding in private sector funds . ### the efsd shall contribute to the achievement of the sustainable development goals of the 2030 agenda and be guided by the objectives set out in article 21 of the treaty on european union and article 208 tfeu and the internationally agreed development effectiveness principles , thus contributing to the union ' s development and neighbourhood policies and the new partnership framework with third countries under the european agenda on migration , with a particular focus on poverty eradication , long - term sustainable and inclusive growth , job creation , socio - economic sectors and on the support to micro , small and medium sized enterprises . in so doing , the efsd shall , inter alia , contribute to addressing the specific socio - economic root causes of migration and foster sustainable reintegration of migrants returning to their countries of origin or transit , as well as strengthen resilience of host communities .


### provide financial instruments aimed at addressing the bottlenecks to private investments , including first loss guarantees to portfolios guarantees to private sector projects such as loan guarantees for small and medium - sized enterprises and guarantees for specific risks for infrastructure projects and other risk capital ; ### address bottlenecks to private investments by providing financial instruments , including first loss guarantees to portfolios guarantees to private sector projects such as loan guarantees for small and medium - sized enterprises and guarantees for specific risks for infrastructure projects and other risk capital ;


### it shall provide strategic guidance and support the commission in setting overall investment goals as regards the use of the efsd guarantee . the strategic board shall also support overall coordination and coherence between the regional investment platforms and with the external lending mandate operations managed by the eib , including the eib resilience initiative . ### 1 a . the strategic board shall provide strategic guidance and support the commission in setting overall investment goals as regards the use of the efsd guarantee , as well as in monitoring an appropriate and diversified geographical and thematic coverage for investment windows , while giving special attention to least developed countries . it shall make sure that the efsd operations support the strategic priorities of union external action and development policy and , in particular , its guiding principles and objectives as provided for in article 21 teu and article 208 tfeu respectively . 1 b . the strategic board shall also support overall coordination , complementarity and coherence between the regional investment platforms , between the three pillars of the eip , between the eip and the union ' s other long - term and short - term efforts on migration , as well as with union external financing instruments and trust funds , with the external lending mandate operations managed by the eib , including the eib resilience initiative and the acp investment facility .


### moreover , the strategic board should support the commission in setting strategic guidance and overall investment goals . the strategic board should also support coordination and coherence between the regional platforms . this should ensure complementarity of the various instruments in external action . the strategic board should be co - chaired by the commission and the high representative of the union for foreign affairs and security policy to ensure consistency and coherence with union external policy objectives and partnership frameworks with third countries . ### the strategic board should be co - chaired by the commission and the high representative in order to ensure consistency and coherence with union external policy objectives , partnership frameworks with third countries and with the union ' s other efforts addressing the root causes of migration , as well as policy coherence for development .


### in accordance with its transparency policies and general union principles on access to documents and information , the eligible counterparts shall make publicly available on their websites information relating to all financing and investment operations covered by the efsd guarantee under this regulation , relating in particular to the manner in which those operations contribute to the requirements of this regulation . ### in accordance with its transparency policies and union rules on access to documents and information and data protection , the eligible counterparts shall proactively and systematically make publicly available on their websites information relating to all financing and investment operations covered by the efsd guarantee under this regulation , relating in particular to the manner in which those operations contribute to the objectives and requirements of this regulation .


### in accordance with its transparency policies and general union principles on access to documents and information , the eligible counterparts shall make publicly available on their websites information relating to all financing and investment operations covered by the efsd guarantee under this regulation , relating in particular to the manner in which those operations contribute to the requirements of this regulation . ### in accordance with its transparency policies and union rules on access to documents and information , the eligible counterparts shall proactively and systematically make publicly available on their websites information relating to all financing and investment operations covered by the efsd guarantee under this regulation , relating in particular to the manner in which those operations contribute to the requirements of this regulation .


### the financing and investment operations eligible for support through the efsd guarantee shall be consistent and aligned with union policies , in particular development and neighbourhood policies of the union , the partner countries ' strategies and policies and aim at supporting the following general objectives : ### the financing and investment operations eligible for support through the efsd guarantee shall be in line with the purpose of the efsd as provided for in article 3 . those financing and investment operations shall be consistent and aligned with union policies , in particular development and neighbourhood policies of the union , as well as the partner countries ' strategies and policies and support the following objectives :


### provide finance in favour of micro - , small - and medium - sized enterprises with a particular focus on private sector development ; ### support private sector development , with a particular focus on local and european companies as well as micro , small and medium - sized enterprises ;


### provide finance in favour of micro - , small - and medium - sized enterprises with a particular focus on private sector development ; ### support private sector development , with a particular focus on local companies and micro , small and medium - sized enterprises ;


### the amount of own resources that the counterpart is ready to mobilise for the investment window . ### the amount of own resources as well as private sector co - financing that the counterpart is ready to mobilise for the investment window .


### contribute to economic and social development , with particular focus on sustainability and job creation , thus addressing root causes of migration and contributing to sustainable reintegration of returned migrants in their countries of origin ; ### contribute to economic and social development , with particular focus on poverty eradication , sustainability and fostering decent employment , economic opportunities and entrepreneurship , promoting , in particular , gender equality and the empowerment of women and young people , thus addressing specific root causes of migration , enhancing resilience and contributing to the sustainable reintegration of migrants returned to their countries of origin , with due regard to the strengthening of the rule of law , good governance and human rights ;


### the commission shall inform the european parliament and the council about the contributions confirmed . ### the commission shall inform the european parliament and the council without delay about the contributions confirmed .


### the eip should incorporate the union commitment under the addis ababa action agenda on financing for development . it should also allow european investors and private companies , including small and medium - sized enterprises , to participate more effectively to sustainable development in partner countries . ### the eip should incorporate the union commitment under the addis ababa action agenda on financing for development , the principles of development effectiveness as well as policy coherence for development as stipulated by article 208 of the treaty on the functioning of the european union . it should also allow investors and private companies , including small and medium - sized enterprises , to contribute more effectively to sustainable development in partner countries .


### the strategic board shall be composed of representatives of the commission and of the high representative of the union for foreign affairs and security policy , of the member states and of the eib . the commission may invite other contributors to become members of the strategic board having regard where appropriate to the view of the board . partner countries and relevant regional organisations , the eligible counterparts and the european parliament may be given observer status , where appropriate . the strategic board shall be co - chaired by the commission and the high representative . ### the strategic board shall be composed of representatives of the commission and of the high representative , of the member states and of the eib . the commission may invite other contributors to become members of the strategic board having regard where appropriate to the view of the board . the european parliament shall have observer status . observers designated by the european parliament shall have the right to contribute to the deliberations without the right to vote . partner countries and relevant regional organisations and the eligible counterparts may be given observer status , where appropriate . the strategic board shall be co - chaired by the commission and the high representative .


### the commission may define investment windows for specific regions or partner countries or for both , for specific sectors , for specific projects or for specific categories of final beneficiaries or for both to be funded by instruments referred to in article 9 to be covered by the efsd guarantee up to a fixed amount . all requests for financial support within investment windows shall be made to the commission . ### the commission shall define investment windows for specific regions or partner countries or for both , for specific sectors , for specific projects or for specific categories of final beneficiaries or for both to be funded by instruments referred to in article 9 to be covered by the efsd guarantee up to a fixed amount . the choice of investment windows shall be duly justified by an analysis of the market failure or sub - optimal investment situations . such analysis shall be carried out by the commission in cooperation with potentially eligible counterparts and stakeholders . investment windows shall be defined with a view to allocating a significant share of the efsd guarantee to fragile and conflict - affected countries , landlocked countries and least - developed countries .


### by 31 december 2020 , the commission shall evaluate the functioning of the efsd . the commission shall submit its evaluation report to the european parliament and the council , containing an independent evaluation of the application of this regulation . this report shall be submitted without delay by the commission in the event that the approved financing and investment operations absorb in full the amount of the efsd guarantee available before 30 june 2020 . ### by 31 december 2019 , the commission shall evaluate the functioning of the efsd and its effective contribution to the purpose and objectives of this regulation . the commission shall submit its evaluation report to the european parliament and the council , containing an independent evaluation of the application of this regulation , accompanied by a reasoned proposal with a view to reviewing or amending this regulation , as appropriate , in particular with a view to extending the initial investment period referred to in article 7 .


### ' additionality ' means the principle ensuring that the efsd guarantee support may not be aimed at replacing the support of a member state , private funding or another union financial intervention , as well as that it is aimed at addressing market failures and avoiding crowding out other public or private investments . ### ' additionality ' means the principle ensuring that the efsd contributes to sustainable development by operations which address market failures or sub - optimal investment situations and which could not have been carried out or could not have been carried out to the same extent without efsd support . efsd operations may not be aimed at replacing the support of a member state , private funding or another union financial intervention and shall avoid crowding out other public or private investments . projects supported by the efsd shall typically have a higher risk profile than the portfolio of investments supported by the eligible counterparts under their normal investment policies before the entry into force of this regulation .


### in their financing and investment operations , the eligible counterparts shall not support any activities carried out for illegal purposes , including money laundering , terrorist financing , organised crime , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the union . the eligible counterparts shall not participate in any financing or investment operation through a vehicle located in a non - cooperative jurisdiction , in accordance with its policy towards weakly regulated or non - cooperative jurisdictions based on policies of the union , the organisation for economic co - operation and development or the financial action task force . ### in their financing and investment operations , the eligible counterparts shall not support any activities carried out for illegal purposes , including money laundering , terrorist financing , organised crime , tax fraud and tax evasion , corruption , and fraud affecting the financial interests of the union . in particular , the eligible counterparts shall neither participate in any financing or investment operation through a vehicle located in a jurisdiction that does not cooperate with the union in relation to the application of the internationally agreed tax standards on transparency and the exchange of information nor maintain business relations with entities established in such a jurisdiction . in their financing and investment operations covered by this regulation , the eligible counterparts shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes , or practices that do not comply with union tax good governance principles , as set out in union law , including commission recommendations and communications . when concluding agreements with financial intermediaries , the eligible counterparts shall transpose the requirements referred to in this paragraph in the relevant contracts and shall request country - by - country reporting concerning their observance .


### emissions and removals from forests and harvested wood products as shown in greenhouse gas inventories and relevant historical data , ### emissions and removals from forests as shown in greenhouse gas inventories and relevant historical data ,


### the national forestry accounting plan shall contain all the elements listed in annex iv , section b and include a proposed new forest reference level based on the continuation of current forest management practice and intensity , as documented between 1990 - 2009 per forest type and per age class in national forests , expressed in tonnes of co2 equivalent per year . ### the national forestry accounting report shall contain all the elements listed in annex iv , section b and include a proposed new forest reference period based on the continuation of current forest management practice and intensity , as documented between 1990 - 2009 per forest type and per age class in national forests , expressed in tonnes of co2 equivalent per year , as well as maintain the same ratio of biomass used for energetic purposes and solid biomass purposes , except in the case of croatia , whose reference level shall be defined separately using a correction factor in view of the occupation of part of its territory from 1991 to 1998 and the effects of the war and its aftermath .


### elements of the national forestry accounting plan ### elements of the national forestry accounting report


### member states shall determine the new forest reference level based on the criteria set out in annex iv , section a . they shall submit to the commission a national forestry accounting plan including a new forest reference level , by 31 december 2018 for the period from 2021 to 2025 and by 30 june 2023 for the period 2026 - 2030 . ### member states shall determine the new forest reference level based on the criteria set out in annex iv , section a . they shall submit to the commission a national forestry accounting report including a new forest reference level , by 31 december 2019 for the period from 2021 to 2025 and by 31 december 2024 for the period 2026 - 2030 .


### member states shall determine the new forest reference level based on the criteria set out in annex iv , section a . they shall submit to the commission a national forestry accounting plan including a new forest reference level , by 31 december 2018 for the period from 2021 to 2025 and by 30 june 2023 for the period 2026 - 2030 . ### member states shall determine the new forest reference level based on the criteria set out in annex iv , section a . they shall submit to the commission a national forestry accounting report including a new forest reference level , by 31 december 2018 for the period from 2021 to 2025 and by 30 june 2023 for the period 2026 - 2030 .


### this regulation applies to emissions and removals of the greenhouse gases listed in annex i , section a , as reported pursuant to article 7 of regulation no 525 / 2013 occurring in any of the following land accounting categories on the territories of member states during the period from 2021 to 2030 : ### this regulation applies to emissions and removals of the greenhouse gases listed in annex i , section a , as reported pursuant to article 7 of regulation no 525 / 2013 occurring in any of the following land accounting categories on the territories of member states and other accounting categories during the period from 2021 to 2030 :


### when the commission chooses to be assisted by an expert review team in accordance with commission decision 3301 ) in the review of national forestry accounting plans , it should build on the good practice and experience of the expert reviews under the unfccc , including as regards participation of national experts and recommendations , and select a sufficient number of experts from the member states . ### for the review of the national forestry accounting plans , an expert review team should be set up in accordance with commission decision 3301 ) . the expert review team should build on the good practice and experience of the expert reviews under the unfccc , including as regards participation of national , regional and local forest managers and other experts and recommendations , and a sufficient number of experts from the member states should be selected .


### depending on national preferences , member states should be able to choose adequate national policies for achieving their commitments in lulucf , including the possibility of compensating emissions from one land category by removals from another land category . they should also be able to cumulate net removals over the period 2021 - 2030 . trading among member states should continue as an additional option to help compliance . following the practice in the second commitment period of the kyoto protocol , there should also be a possibility for a member state to use its overachievement under regulation [ ] on binding annual greenhouse gas emission reductions by member states from 2021 to 2030 for a resilient energy union and to meet commitments under the paris agreement and amending regulation no 525 / 2013 of the european parliament and the council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change in order to ensure its compliance with its commitment under this regulation . ### depending on national preferences , member states should be able to choose adequate national policies for achieving their commitments in lulucf , including the possibility of compensating emissions from one land category by removals from another land category . they should also be able to cumulate net removals over the period 2021 - 2030 . trading among member states should continue as an additional option to help compliance . following the practice in the second commitment period of the kyoto protocol , there should also be a possibility for a member state to use its overachievement under regulation [ ] on binding annual greenhouse gas emission reductions by member states from 2021 to 2030 for a resilient energy union and to meet commitments under the paris agreement and amending regulation no 525 / 2013 of the european parliament and the council on a mechanism for monitoring and reporting greenhouse gas emissions and other information relevant to climate change in order to ensure its compliance with its commitment under this regulation . member states should be able to use up to 425 million tonnes of any net removals resulting from the provisions of this regulation , with a view to fulfilling their obligations under the effort sharing regulation . given its limited mitigation potential , the farming sector should be the first to benefit from these net removals .


### the commission shall review the national forestry accounting plans and technical corrections and assess the extent to which the proposed new or corrected forest reference levels have been determined in accordance with the principles and requirements set out in paragraphs and as well as article 5 . to the extent that this is required in order to ensure compliance with the principles and requirements set out in paragraphs and as well as article 5 , the commission may recalculate the proposed new or corrected forest reference levels . ### a group of experts from the commission and the member states shall review the national forestry accounting plans and technical corrections and assess the extent to which the proposed new or corrected forest reference levels have been determined in accordance with the principles and requirements set out in paragraphs and as well as article 5 . to the extent that this is required in order to ensure compliance with the principles and requirements set out in paragraphs and as well as article 5 , and only in cases where those principles and requirements have not been observed , the commission may recalculate the proposed new or corrected forest reference levels .


### for the period from 2021 to 2025 and from 2026 to 2030 , taking into account the flexibilities provided for in article 11 , each member state shall ensure that emissions do not exceed removals , calculated as the sum of total emissions and removals on their territory in the land accounting categories referred to in article 2 combined , as accounted in accordance with this regulation . ### for the period from 2021 to 2025 and from 2026 to 2030 , taking into account the flexibilities provided for in article 11 , each member state shall ensure that emissions do not exceed removals , calculated as the sum of total emissions and removals on their territory in the land accounting categories and other categories referred to in article 2 combined , as accounted in accordance with this regulation . during the first review , as stipulated in article 15 , the commission shall review the above rule in accordance with relevant decisions adopted by bodies of the unfccc or of the paris agreement .


### reference levels should take into account the objective of contributing to the conservation of biodiversity and the sustainable use of natural resources , as set out in the eu forest strategy , member states ' national forest policies , and the eu biodiversity strategy ; ### reference levels should take into account the objective of contributing to the conservation of biodiversity and the sustainable use of natural resources , as set out in the eu forest strategy , member states ' national forest programmes and policies , and the eu biodiversity strategy ;


### member states shall account for emissions and removals resulting from managed forest land , calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five its forest reference level . a forest reference level is an estimate of the average annual net emissions or removals resulting from managed forest land within the territory of the member state in the periods from 2021 to 2025 and from 2026 to 2030 . ### member states shall account for emissions and removals resulting from managed forest land , calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five its forest reference level .


### the national forestry accounting plan shall contain all the elements listed in annex iv , section b and include a proposed new forest reference level based on the continuation of current forest management practice and intensity , as documented between 1990 - 2009 per forest type and per age class in national forests , expressed in tonnes of co2 equivalent per year . ### the national forestry accounting report shall contain all the elements listed in annex iv , section b and include a proposed new forest reference level based on the continuation of sustainable forest management practice and adopted national forest programmes or similar policies and programmes , as documented up to 2017 for the period 2021 - 2025 and up to 2022 for the period 2026 - 2030 per forest type in national forests , expressed in tonnes of co2 equivalent per year .


### member states shall account for emissions and removals resulting from managed cropland calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five the member state ' s average annual emissions and removals resulting from managed cropland in its base period 2005 - 2007 . ### member states shall account for emissions and removals resulting from managed cropland calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five the member state ' s average annual emissions and removals resulting from managed cropland in its base period 2003 - 2007 .


### the commission shall review the national forestry accounting plans and technical corrections and assess the extent to which the proposed new or corrected forest reference levels have been determined in accordance with the principles and requirements set out in paragraphs and as well as article 5 . to the extent that this is required in order to ensure compliance with the principles and requirements set out in paragraphs and as well as article 5 , the commission may recalculate the proposed new or corrected forest reference levels . ### the commission shall facilitate the technical assessment of the national forestry accounting report submitted by a member state and assess the extent to which the proposed new or corrected forest reference levels have been determined in accordance with the principles and requirements set out in paragraphs 3 and 4 as well as article 5 . the commission shall compile a synthesis report and shall make it publicly available .


### member states shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting plan and those used in the reporting for managed forest land . at the latest at the end of the period from 2021 to 2025 or from 2026 to 2030 , a member state shall submit to the commission a technical correction of its reference level if necessary to ensure consistency . ### member states shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting report and those used in the reporting for managed forest land . at the latest at the end of the period from 2021 to 2025 or from 2026 to 2030 , a member state shall submit to the commission a technical correction of its reference level if necessary to ensure consistency .


### each member state shall prepare and maintain accounts that accurately reflect the emissions and removals resulting from the land accounting categories referred to in article 2 . member states shall ensure the accuracy , completeness , consistency , comparability and transparency of their accounts and of other data provided under this regulation . member states shall denote emissions by a positive sign and removals by a negative sign . ### each member state shall prepare and maintain accounts that accurately reflect the emissions and removals resulting from the land accounting categories and other categories referred to in article 2 using the reporting guidance adopted by the cop for the period 2021 - 2030 . member states shall ensure the accuracy , completeness , consistency , comparability and transparency of their accounts and of other data provided under this regulation . member states shall denote emissions by a positive sign and removals by a negative sign .


### member states shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting plan and those used in the reporting for managed forest land . at the latest at the end of the period from 2021 to 2025 or from 2026 to 2030 , a member state shall submit to the commission a technical correction of its reference level if necessary to ensure consistency . ### member states shall demonstrate consistency between the methods and data used to establish the forest reference level in the national forestry accounting plan and those used in the reporting for managed forest land . at the latest at the end of the period from 2021 to 2025 or from 2026 to 2030 , a member state shall submit to the commission a technical correction of its reference level if necessary to ensure consistency , in particular where that level is based on a sustainable forestry management policy that was in force when it was set . if the actual level of forestry activity is higher or lower than the objectives set under the policy , the reference level for the period concerned shall be adjusted .


### the national forestry accounting plan shall contain all the elements listed in annex iv , section b and include a proposed new forest reference level based on the continuation of current forest management practice and intensity , as documented between 19902009 per forest type and per age class in national forests , expressed in tonnes of co2 equivalent per year . ### the national forestry accounting plan shall contain all the elements listed in annex iv , section b and include a proposed new forest reference level based , on the one hand , on the continuation of current forest management practice and intensity , as documented between 2005 - [ publications office to insert the date of entry into force of this regulation ] per forest type and per age class in national forests , expressed in tonnes of co2 equivalent per year and , on the other , on the state’s current sustainable forest management policies and measures .


### the commission shall adopt delegated acts in accordance with article 14 to amend annex ii in the light of the review carried out pursuant to paragraph to update member state forest reference levels based on the national forestry accounting plans or the technical corrections submitted , and any recalculations made in the context of the review . until the entry into force of the delegated act , member state forest reference levels as specified in annex ii shall continue to apply for the period 2021 - 2025 and / or 2026 - 2030 . ### the commission shall adopt delegated acts in accordance with article 14 to amend annex ii in the light of the review carried out pursuant to paragraph to update member state forest reference levels based on the national forestry accounting reports or the technical corrections submitted , and any recalculations made in the context of the review . until the entry into force of the delegated act , member state forest reference levels as specified in annex ii shall continue to apply for the period 2021 - 2025 and / or 2026 - 2030 .


### the national forestry accounting plan shall be made public and shall be subject to public consultation . ### the national forestry accounting report shall be made public and shall be subject to public consultation .


### member states shall account for emissions and removals resulting from managed grassland calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five the member state’s average annual emissions and removals resulting from managed grassland in its base period 2005 - 2007 . ### member states shall account for emissions and removals resulting from managed grassland calculated as emissions and removals in the periods from 2021 to 2025 and from 2026 to 2030 minus the value obtained by multiplying by five the member state’s average annual emissions and removals resulting from managed grassland in its base period 2003 - 2007 .


### improving access to inclusive and quality services in education , training and life long learning through developing infrastructure ; ### improving access to inclusive and quality services in culture , education , training , life long learning and sport through developing infrastructure ;


### improving access to inclusive and quality services in education , training and life long learning through developing infrastructure ; ### improving access to inclusive and quality services in education , training , life long learning and culture through developing infrastructure ;


### fostering the integrated social , economic and environmental local development , cultural heritage and security , including for rural and coastal areas also through community - led local development . ### fostering the integrated social , economic and environmental local development , cultural heritage , sport and security , including for rural and coastal areas also through community - led local development .


### increasing the socioeconomic integration of marginalised communities , migrants and disadvantaged groups , through integrated measures including housing and social services ; ### increasing the socioeconomic integration of marginalised communities , migrants and disadvantaged groups , through integrated measures including housing , social services , cultural activities and sports ;


### national on - line registration web - sites shall include links to the registration web - sites in other member states . member states shall ensure that the following templates are used for on - line registration : ### national on - line registration web - sites shall include links to the registration web - sites in other member states . member states shall ensure online registration with the following templates :


### single - member private limited liability companies formed and operating in compliance with this directive should add to their names a common , easily identifiable abbreviation – sup . ### single - member private limited liability companies formed and operating in compliance with part 2 of this directive should add to their names a common , easily identifiable abbreviation – sup .


### member states shall ensure that an sup may be formed by the conversion of the types of companies listed in annex i . ### member states shall ensure that an sup may be formed by the conversion of the types of companies listed in annex i subject to compliance with the applicable national law .


### member states may lay down rules for verifying the identity of the founding member , and any other person making the registration on the member ' s behalf , and the acceptability of the documents and other information submitted to the registration body . any identification issued in another member state by the authorities of that state or on their behalf , including identification issued electronically , shall be recognised and accepted for the purposes of the verification by the member state of registration . ### the registration procedure and the possible verification of the identity of the founding member and of a representative founding an sup on his behalf shall be governed by the applicable national law . member states shall ensure that procedural rules are laid down , including rules concerning verification of the identity of the founding member and of the representative , as well as the admissibility of documents and other information submitted to the registration body .


### member states shall not make the registration of an sup conditional on obtaining any licence or authorisation . the registration of the sup , all documents provided during the process of registration and subsequent changes to them , shall be disclosed in the relevant register of companies immediately after registration . ### member states shall not make the registration of an sup conditional on obtaining any licence or authorisation . this is without prejudice to provisions of national law that make carrying out certain activities after registration conditional on obtaining a licence or authorisation . these activities shall be listed in national on - line registration websites .


### member states shall ensure that the registration procedure for newly incorporated sups may be completed electronically in its entirety without it being necessary for the founding member to appear before any authority in the member state of registration . ### member states shall ensure that the registration procedure for newly incorporated sups may be completed electronically . member states may , however , retain existing national requirements for the checks on the identity of the founding member before registration and on the legality of the documents submitted and the process of on - line registration .


### in order to make it easier and less costly to establish subsidiaries in other member states , the founders of sups should not be obliged to be physically present before any member state ' s registration body . the register should be accessible from any member state and a company founder should be able to make use of existing points of single contact created under directive 2006 / 123 / ec of the european parliament and of the council19 as a gateway to national on - line registration points . it should , therefore , be possible to establish sups from distance and fully by electronic means . __________________ 19 directive 2006 / 123 / ec of the european parliament and of the council of 12 december 2006 on services in the internal market . ### in order to make it easier and less costly to establish subsidiaries in other member states , the online registration of sups should be ensured . in such case , the payment of the consideration in cash should be required . the founders of sups should not be obliged to be physically present before any member state ' s registration body . the register should be accessible from any member state and a company founder should be able to make use of existing points of single contact created under directive 2006 / 123 / ec of the european parliament and of the council19 as a gateway to national on - line registration points . it should , therefore , be possible to establish sups from distance and fully by electronic means . __________________ 19 directive 2006 / 123 / ec of the european parliament and of the council of 12 december 2006 on services in the internal market .


### the commission shall adopt the uniform template of articles of association by an implementing act . that implementing act shall be adopted in accordance with the examination procedure referred to in article 27 . ### member states shall ensure that in each case a uniform template of articles of association as referred to in paragraph 2 is made available .


### member states may lay down rules for verifying the identity of the founding member , and any other person making the registration on the member ' s behalf , and the acceptability of the documents and other information submitted to the registration body . any identification issued in another member state by the authorities of that state or on their behalf , including identification issued electronically , shall be recognised and accepted for the purposes of the verification by the member state of registration . ### member states shall lay down rules for verifying the identity of the founding member , and any other person making the registration on the member ' s behalf , and the acceptability of the documents and other information submitted to the registration body . without prejudice to paragraph 3 , the process of registration and verification of identification of the founding member and / or a representative that registers the sup on the member ' s behalf shall be governed by the applicable national law . where , for the purposes of the first subparagraph , it is necessary for member states to have recourse to administrative cooperation between them , they shall apply regulation no 1024 / 2012 .


### member states may lay down rules for verifying the identity of the founding member , and any other person making the registration on the member ' s behalf , and the acceptability of the documents and other information submitted to the registration body . any identification issued in another member state by the authorities of that state or on their behalf , including identification issued electronically , shall be recognised and accepted for the purposes of the verification by the member state of registration . ### without prejudice to paragraph 3 , the process of registration and possible verification of identification of the founding member , or a representative that registers the sup on the member ' s behalf shall be governed by the applicable national law . member states shall lay down the procedural rules , including the rules on the acceptability of the documents and other information submitted to the registration body .


### member states shall ensure that the registration procedure for newly incorporated sups may be completed electronically in its entirety without it being necessary for the founding member to appear before any authority in the member state of registration . ### member states shall ensure that the on - line registration procedure for newly incorporated sups may be completed electronically by means of an electronic signature or the involvement of a public official .


### in order to facilitate the cross - border activities of smes and the establishment of single - member companies as subsidiaries in other member states , the costs and administrative burdens involved in setting - up these companies should be reduced . ### in order to foster more entrepreneurship in europe and to facilitate the cross - border activities of micro and small undertakings , in particular the establishment of single - member private limited liability companies by those undertakings in other member states , the costs and administrative burdens involved in setting - up these companies should be reduced . to this end , this directive should provide harmonised rules lowering entry barriers for micro and small undertakings when setting up companies abroad .


### member states shall ensure that the sup is not subject to rules requiring the company to build up legal reserves . member states shall allow companies to build reserves in accordance with their articles of association . ### without prejudice to paragraph 1 , member states may require the sup to build up legal reserves in accordance with the national law applicable to private limited liability companies listed in annex i . member states shall ensure that information on such requirements is provided on the national registration web - sites . member states shall allow companies to build reserves in accordance with their articles of association .


### the sup , and its articles of association , shall be governed by the national law of the member state where the sup is registered . ### the sup shall be governed by the national law of the member state where the sup is registered in order to comply with this directive .


### member states shall ensure that the sup is not subject to rules requiring the company to build up legal reserves . member states shall allow companies to build reserves in accordance with their articles of association . ### member states shall ensure that the sup is required to build up legal reserves in accordance with the applicable national rules .


### member states shall require that the articles of association of the sup shall cover at least the subject matters provided for in paragraph 2 . ### in connection with the on - line registration of an sup , member states shall make available the uniform template of articles of association , which shall cover at least the subject matters provided for in paragraph 2 .


### the availability of a harmonised legal framework governing the formation of single - member companies , including the establishment of a uniform template for the articles of association should contribute to the progressive abolition of restrictions on freedom of establishment as regards the conditions for setting up subsidiaries in the territories of member states and lead to a reduction in costs . ### the availability of a minimum harmonised legal framework governing the online formation of single - member private limited liability companies , including the establishment of a uniform online template for the articles of association should contribute to the progressive abolition of restrictions on freedom of establishment as regards the conditions for setting up subsidiaries in the territories of member states and lead to a reduction in costs .


### member states shall ensure that the registration procedure for newly incorporated sups may be completed electronically in its entirety without it being necessary for the founding member to appear before any authority in the member state of registration . ### member states shall ensure that the registration procedure for newly incorporated sups may be completed electronically pursuant to article 3 of directive 2009 / 101 / ec without it being necessary for the founding member to appear in person before any authority in the member state of registration .


### national on - line registration web - sites shall include links to the registration web - sites in other member states . member states shall ensure that the following templates are used for on - line registration : ### national on - line registration web - sites shall include links to the registration web - sites in other member states . member states shall ensure online registration with the following templates :


### the multiannual financial framework set out in regulation xx / xx6 provides that the union budget must continue to support fisheries and maritime policies . the emff budget should amount , in current prices , to eur 6 140 000 000 . emff resources should be split between shared , direct and indirect management . eur 5 311 000 000 should be allocated to support under shared management and eur 829 000 000 to support under direct and indirect management . in order to ensure stability in particular with regard to the achievement of the objectives of the cfp , the definition of national allocations under shared management for the 2021 - 2027 programming period should be based on the emff 2014 - 2020 shares . specific amounts should be reserved for the outermost regions , control and enforcement and collection and processing of data for fisheries management and scientific purposes , while amounts for permanent cessation and extraordinary cessation of fishing activities should be capped . _________________ 6 oj c [ … ] , [ … ] , p . [ … ] . ### the multiannual financial framework set out in regulation xx / xx6 provides that the union budget must continue to support fisheries and maritime policies . the emff budget should amount , in current prices , to eur 6 140 000 000 . emff resources should be split between shared , direct and indirect management . eur 5 219 000 000 should be allocated to support under shared management and eur 921 000 000 to support under direct and indirect management . in order to ensure stability in particular with regard to the achievement of the objectives of the cfp , the definition of national allocations under shared management for the 2021 - 2027 programming period should be based on the emff 2014 - 2020 shares . specific amounts should be reserved for the outermost regions , control and enforcement and collection and processing of data for fisheries management and scientific purposes , while amounts for permanent cessation and extraordinary cessation of fishing activities should be capped . _________________ 6 oj c [ … ] , [ … ] , p . [ … ] .


### provided that road safety is not thereby jeopardised , the driver may depart from article 8 and the second subparagraph of article 8 to be able to reach a suitable accommodation as referred to in article 8 to take a daily or weekly rest there . such a departure shall not result in exceeding daily or weekly driving times or shortening daily or weekly rest periods . the driver shall indicate the reason for such departure manually on the record sheet of the recording equipment or on a printout from the recording equipment or in the duty roster , at the latest on arrival at the suitable accommodation . ### provided that road safety is not in any way thereby jeopardized , the driver may depart from article 8 and the second subparagraph of article 8 , to be able to reach within two hours the employer ' s operational centre where the driver is based or a parking area with a dpc , after a rest of no less than 30 minutes . the driver shall indicate the reason for such departure manually on the record sheet of the recording equipment , or on a printout from the recording equipment or in the duty roster , at the latest upon arrival at the suitable accommodation . up to two hours shall be compensated by an equivalent period of rest , taken in one session , before the end of the third week following the week in question .


### the regular weekly rest periods and any weekly rest of more than 45 hours taken in compensation for previous reduced weekly rest shall not be taken in a vehicle . they shall be taken in a suitable accommodation , with adequate sleeping and sanitary facilities ; ### the driver shall not take any regular weekly rest periods or rest periods of more than 45 hours taken in compensation for previous reduced weekly rest in a vehicle . any accommodation shall be provided or paid for by the employer , unless the driver decides to spend the rest period in a private location


### to enhance cost - effectiveness of enforcement of the social rules the potential of the current and future tachograph systems should be fully exploited . therefore the functionalities of the tachograph should be improved to allow for more precise positioning , in particular during international transport operations . ### to enhance cost - effectiveness of enforcement of the social rules , the current and smart tachograph systems should be mandatory in international transport . therefore the functionalities of the tachograph should be improved to allow for more precise positioning .


### member states shall lay down rules on penalties applicable to infringements of this regulation and regulation no 165 / 2014 and shall take all measures necessary to ensure that they are implemented . those penalties shall be effective , proportionate to their gravity as determined in accordance with annex iii to directive 2006 / 22 / ec of the european parliament and of the council12 , dissuasive and non - discriminatory . no infringement of this regulation and regulation no 165 / 2014 shall be subjected to more than one penalty or procedure . the member states shall notify the commission of those measures and the rules on penalties by the date specified in the second subparagraph of article 29 . they shall notify without delay any subsequent amendments thereto . the commission shall inform member states accordingly . ; _________________ 12 directive 2006 / 22 / ec of the european parliament and of the council of 15 march 2006 on minimum conditions for the implementation of council regulations no 3820 / 85 and no 3821 / 85 concerning social legislation relating to road transport activities and repealing council directive 88 / 599 / eec . ### member states shall lay down rules on penalties applicable to infringements of this regulation and regulation no 165 / 2014 and shall take all measures necessary to ensure that they are implemented . those penalties shall be effective , proportionate to their gravity as determined in accordance with annex iii to directive 2006 / 22 / ec of the european parliament and of the council12 , dissuasive and non - discriminatory . no infringement of this regulation and regulation no 165 / 2014 shall be subjected to more than one penalty or procedure . the member states shall notify the commission of those measures and the rules on penalties by the date specified in the second subparagraph of article 29 . they shall notify without delay any subsequent amendments thereto . the commission shall inform member states accordingly . this information shall be published on a dedicated public website maintained by the european commission in all eu languages , containing detailed information on such penalties applicable in eu member states . ; _________________ 12 directive 2006 / 22 / ec of the european parliament and of the council of 15 march 2006 on minimum conditions for the implementation of council regulations no 3820 / 85 and no 3821 / 85 concerning social legislation relating to road transport activities and repealing council directive 88 / 599 / eec .


### any rest period taken as compensation for a reduced weekly rest period shall immediately precede or follow a regular weekly rest period of at least 45 hours . ; ### any rest period taken as compensation for a reduced weekly rest period shall be attached to a regular weekly rest period of at least 45 hours ;


### drivers engaged in long - distance international transport operations spend long periods away from their home . the current requirements on the regular weekly rest unnecessarily prolong those periods . it is thus desirable to adapt the provision on the regular weekly rest in such a way that it is easier for drivers to carry out transport operations in compliance with the rules and to reach their home for a regular weekly rest , and be fully compensated for all reduced weekly rest periods . it is also necessary to provide that operators organise the work of drivers in such a way that these periods away from home are not excessively long . ### drivers engaged in long - distance international transport operations spend long periods away from their home . it is thus desirable to enforce the application of the provision on the regular weekly rest in such a way that it is easier for drivers to carry out transport operations in compliance with the rules and to reach their home for a regular weekly rest , and be fully compensated for all reduced weekly rest periods . to ensure secure and decent working conditions , it is necessary to provide for operators to organise the work of drivers in such a way that the periods away from their home are not excessively long and that drivers have the possibility to return home on a regular basis and are able to benefit from decent rest conditions in quality accommodation . where a driver chooses to spend that rest period at home , the transport undertaking should provide the driver with the financial or practical means to return there . moreover , the duration of the return journey should not be taken into account for the purposes of calculating the length of the rest period . where a driver chooses to spend the rest period in a place other than their home , this should not be taken into account for the purposes of calculating the driver’s entitlement to travel allowances .


### at home or at another private location chosen by the driver . ### at another location chosen by the driver .


### having evaluated the effectiveness and efficiency of the implementation of the existing set of union social rules in road transport , and in particular regulation no 561 / 2006 of the european parliament and of the council9 , certain deficiencies were identified in the existing legal framework . unclear and unsuitable rules on weekly rest , resting facilities , breaks in multi - manning and the absence of rules on the return of drivers to their home , lead to diverging interpretations and enforcement practices in the member states . several member states recently adopted unilateral measures further increasing legal uncertainty and unequal treatment of drivers and operators . ______________ 9 regulation no 561 / 2006 of the european parliament and of the council of 15 march 2006 on the harmonisation of certain social legislation relating to road transport and amending council regulations no 3821 / 85 and no 2135 / 98 and repealing council regulation no 3820 / 85 . ### having evaluated the effectiveness and efficiency of the implementation of the existing set of union social rules in road transport , and in particular regulation no 561 / 2006 of the european parliament and of the council9 , certain deficiencies were identified in the implementation of the legal framework . unclear rules on weekly rest , resting facilities , breaks in multi - manning and the absence of rules on the return of drivers to their home or to another location of their choice , lead to diverging interpretations and enforcement practices in the member states . several member states recently adopted unilateral measures further increasing legal uncertainty and unequal treatment of drivers and operators . ____________________ 9 regulation no 561 / 2006 of the european parliament and of the council of 15 march 2006 on the harmonisation of certain social legislation relating to road transport and amending council regulations no 3821 / 85 and no 2135 / 98 and repealing council regulation no 3820 / 85 .


### provided that road safety is not thereby jeopardised , the driver may depart from article 8 and the second subparagraph of article 8 to be able to reach a suitable accommodation as referred to in article 8 to take a daily or weekly rest there . such a departure shall not result in exceeding daily or weekly driving times or shortening daily or weekly rest periods . the driver shall indicate the reason for such departure manually on the record sheet of the recording equipment or on a printout from the recording equipment or in the duty roster , at the latest on arrival at the suitable accommodation . ### provided that road safety is not thereby jeopardised , the driver may depart exceptionally from article 6 after a rest of 30 minutes , so as to be able to reach within two hours the employer ' s operational centre where the driver is normally based . the driver shall indicate the reason for such departure manually on the printout from the recording equipment . this period of up to two hours shall be compensated by an equivalent period of rest taken in one go , by the end of the third week following the week in question .


### 15 years after newly registered vehicles are required to have a tachograph as provided in articles 8 , 9 and 10 , vehicles operating in a member state other than their member state of registration shall be fitted with such a tachograph . ### - 1in article 3 of the present regulation no 165 / 2014 , paragraph 4 is replaced by the following : ' 4 . vehicles performing international road transport operations in a member state other than their member state of registration should be fitted with a smart tachograph within four years of the introduction of the requirement . '